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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1153
Introduced by Conrad, 46.
Read first time January 20, 2026
Committee: Judiciary
A BILL FOR AN ACT relating to the Consumer Protection Act; to amend1
sections 59-1608.03 and 59-1608.05, Reissue Revised Statutes of2
Nebraska, and section 59-1608.04, Revised Statutes Cumulative3
Supplement, 2024; to change provisions relating to recovery under4
the act; to provide a termination date for the State Settlement Cash5
Fund and provide powers and duties to the State Treasurer regarding6
any money in such fund; to change provisions relating to the State7
Settlement Trust Fund; to harmonize provisions; to repeal the8
original sections; and to declare an emergency.9
Be it enacted by the people of the State of Nebraska,10
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Section 1. Section 59-1608.03, Reissue Revised Statutes of Nebraska,1
is amended to read: 2
59-1608.03 When the Attorney General, on behalf of a state agency or3
political subdivision, is authorized to investigate, file suit, or4
otherwise take action in connection with violations under the Consumer5
Protection Act, any recovery of damages or costs by judgment, court6
decree, settlement in or out of court, or other final result shall be7
subject to the following: 8
(1) Upon recovery of damages or any monetary payment, except9
criminal penalties, the costs, expenses, or billings incurred by any10
state agency or political subdivision in any investigation or other11
action arising out of a violation under the act shall be sought out in12
any judgment, court decree, settlement in or out of court, or other final13
result. Any recovered costs shall be deposited by the Attorney General in14
the fund from which such costs were expended; 15
(2) When the Attorney General makes recovery pursuant to the act on16
behalf of a state agency or political subdivision of any money, funds,17
securities, or other things of value in the nature of civil damages or18
other payment, except criminal penalties, whether such recovery is by way19
of verdict, judgment, compromise, or settlement in or out of court, or20
other final disposition of any case or controversy, such money, funds,21
securities, or other things of value shall be deposited by the Attorney22
General in the fund from which the funds which are being recovered were23
expended; 24
(3)(a) Until July 1, 2026, and except (3) Except as otherwise25
provided by law, the State Settlement Cash Fund shall consist of all26
recoveries received pursuant to the act, including any money, funds,27
securities, or other things of value in the nature of civil damages or28
other payment, except criminal penalties, whether such recovery is by way29
of verdict, judgment, compromise, or settlement in or out of court, or30
other final disposition of any case or controversy, or any other payments31
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received on behalf of the state by the Department of Justice and1
administered by the Attorney General for the benefit of the state or the2
general welfare of its citizens, but excluding all funds held in a trust3
capacity where specific benefits accrue to specific individuals,4
organizations, or governments. ; and 5
(b)(i) Beginning July 1, 2026, and except as otherwise provided by6
law and subject to subdivision (b)(ii) of this subsection, all recoveries7
received pursuant to the act, including any money, funds, securities, or8
other things of value in the nature of civil damages or other payment,9
except criminal penalties, whether such recovery is by way of verdict,10
judgment, compromise, or settlement in or out of court, or other final11
disposition of any case or controversy, or any other payments received on12
behalf of the state by the Department of Justice and administered by the13
Attorney General for the benefit of the state or the general welfare of14
its citizens, shall be remitted to the State Treasurer to be distributed15
as follows: 16
(A) One percent to the Legal Education for Public Service and Rural17
Practice Loan Repayment Assistance Fund; 18
(B) One percent to the Financial Literacy Cash Fund;19
(C) One percent to the Board of Regents of the University of20
Nebraska for the tenant assistance project; 21
(D) One percent to the University of Nebraska Medical Center for22
pediatric cancer research; and 23
(E) Ninety-six percent for the use and support of common schools in24
the same manner as all fines, penalties, and license money are25
distributed under Article VII, section 5, of the Constitution of26
Nebraska. 27
(ii) Subdivision (b)(i) of this subsection shall not apply to any28
funds held in a trust capacity where specific benefits accrue to specific29
individuals, organizations, or governments; and 30
(4) Except as otherwise provided by law, the State Settlement Trust31
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Fund shall consist of all recoveries received pursuant to the act,1
including any money, funds, securities, or other things of value in the2
nature of civil damages or other payment, except criminal penalties,3
whether such recovery is by way of verdict, judgment, compromise, or4
settlement in or out of court, or other final disposition of any case or5
controversy, or any other payments received on behalf of the state by the6
Department of Justice and administered by the Attorney General, but to7
include only those funds held in a trust capacity where specific benefits8
accrue to specific individuals, organizations, or governments.9
Sec. 2. Section 59-1608.04, Revised Statutes Cumulative Supplement,10
2024, is amended to read: 11
59-1608.04 (1) The State Settlement Cash Fund is created. The fund12
shall be maintained by the Department of Justice and administered by the13
Attorney General. Except as otherwise provided by law, the fund shall14
consist of all recoveries received pursuant to the Consumer Protection15
Act, including any money, funds, securities, or other things of value in16
the nature of civil damages or other payment, except criminal penalties,17
whether such recovery is by way of verdict, judgment, compromise, or18
settlement in or out of court, or other final disposition of any case or19
controversy, or any other payments received on behalf of the state by the20
Department of Justice and administered by the Attorney General for the21
benefit of the state or the general welfare of its citizens, but22
excluding all funds held in a trust capacity where specific benefits23
accrue to specific individuals, organizations, or governments. The fund24
may be expended for any allowable legal purposes as determined by the25
Attorney General. Transfers from the State Settlement Cash Fund may be26
made at the direction of the Legislature to the Nebraska Capital27
Construction Fund, the Legal Education for Public Service and Rural28
Practice Loan Repayment Assistance Fund, the Nebraska State Patrol Cash29
Fund, the Financial Literacy Cash Fund, and the General Fund. To provide30
necessary financial accountability and management oversight, revenue from31
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individual settlement agreements or other separate sources credited to1
the State Settlement Cash Fund may be tracked and accounted for within2
the state accounting system through the use of separate and distinct3
funds, subfunds, or any other available accounting mechanism specifically4
approved by the Accounting Administrator for use by the Department of5
Justice. Any money in the fund available for investment shall be invested6
by the state investment officer pursuant to the Nebraska Capital7
Expansion Act and the Nebraska State Funds Investment Act. Beginning8
October 1, 2024, any investment earnings from investment of money in the9
fund shall be credited to the General Fund. 10
(2) The State Settlement Cash Fund terminates on July 1, 2026. The11
State Treasurer shall distribute any money remaining in the fund on such12
date as provided in subdivision (3)(b)(i) of section 59-1608.03.13
(2) The State Treasurer shall transfer two million five hundred14
thousand dollars from the State Settlement Cash Fund to the Nebraska15
Capital Construction Fund on July 1, 2013, or as soon thereafter as16
administratively possible. 17
(3) The State Treasurer shall transfer eight hundred seventy-six18
thousand nine hundred ninety-eight dollars from the State Settlement Cash19
Fund to the General Fund on or before June 30, 2018, on such dates and in20
such amounts as directed by the budget administrator of the budget21
division of the Department of Administrative Services.22
(4) The State Treasurer shall transfer one million seven hundred23
fifty-six thousand six hundred thirty-nine dollars from the State24
Settlement Cash Fund to the General Fund on or before June 30, 2019, on25
such dates and in such amounts as directed by the budget administrator of26
the budget division of the Department of Administrative Services.27
(5) The State Treasurer shall transfer one hundred twenty-five28
thousand dollars from the State Settlement Cash Fund to the Legal29
Education for Public Service and Rural Practice Loan Repayment Assistance30
Fund on or before April 30, 2018, on such dates and in such amounts as31
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directed by the budget administrator of the budget division of the1
Department of Administrative Services. 2
(6) The State Treasurer shall transfer one hundred fifty thousand3
dollars from the State Settlement Cash Fund to the Legal Education for4
Public Service and Rural Practice Loan Repayment Assistance Fund on or5
before July 9, 2018, on such dates and in such amounts as directed by the6
budget administrator of the budget division of the Department of7
Administrative Services. 8
Sec. 3. Section 59-1608.05, Reissue Revised Statutes of Nebraska, is9
amended to read: 10
59-1608.05 (1)(a) The State Settlement Trust Fund is created. The11
fund shall be maintained by the Department of Justice and administered by12
the Attorney General. Except as otherwise provided by law and subject to13
subdivision (1)(b) of this section, the fund shall consist of:14
(i) All all recoveries received pursuant to the Consumer Protection15
Act, including any money, funds, securities, or other things of value in16
the nature of civil damages or other payment, except criminal penalties,17
whether such recovery shall be by way of verdict, judgment, compromise,18
or settlement in or out of court, or other final disposition of any case19
or controversy; and , or 20
(ii) Any any other payments received on behalf of the state by the21
Department of Justice and administered by the Attorney General. ,22
(b) The State Settlement Trust Fund shall but to include only those23
funds held in a trust capacity where specific benefits accrue to specific24
individuals, organizations, or governments. 25
(2) All money in the State Settlement Trust Fund shall be subject to26
legislative review, but shall not be subject to legislative27
appropriation. The fund shall be expended consistent with any legal28
restrictions placed on the funds. The fund shall be paid from the same29
budget program used to record revenue and expenditures of the State30
Settlement Cash Fund, except that the fund shall only be expended from a31
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separate and distinct budget subprogram and shall not be commingled with1
any other revenue or expenditure. 2
(3) To provide necessary financial accountability and management3
oversight, revenue from individual settlement agreements or other4
separate sources credited to the fund may be tracked and accounted for5
within the state accounting system through the use of separate and6
distinct funds, subfunds, or any other available accounting mechanism7
specifically approved by the Accounting Administrator for use by the8
Department of Justice. 9
(4) Any money in the fund available for investment shall be invested10
by the state investment officer pursuant to the Nebraska Capital11
Expansion Act and the Nebraska State Funds Investment Act.12
Sec. 4. Original sections 59-1608.03 and 59-1608.05, Reissue13
Revised Statutes of Nebraska, and section 59-1608.04, Revised Statutes14
Cumulative Supplement, 2024, are repealed. 15
Sec. 5. Since an emergency exists, this act takes effect when16
passed and approved according to law. 17
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