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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1199
Introduced by Ibach, 44.
Read first time January 21, 2026
Committee: Judiciary
A BILL FOR AN ACT relating to the practice of law; to amend section1
7-203, Reissue Revised Statutes of Nebraska, and section 59-1608.04,2
Revised Statutes Cumulative Supplement, 2024; to change the3
definition of designated legal profession shortage area under the4
Legal Education for Public Service and Rural Practice Loan Repayment5
Assistance Act; to provide for a funds transfer from the State6
Settlement Cash Fund; and to repeal the original sections.7
Be it enacted by the people of the State of Nebraska,8
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Section 1. Section 7-203, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
7-203 For purposes of the Legal Education for Public Service and3
Rural Practice Loan Repayment Assistance Act: 4
(1) Board means the Legal Education for Public Service and Rural5
Practice Loan Repayment Assistance Board; 6
(2) Designated legal profession shortage area means a rural area7
located within any county in Nebraska having a population of less than8
seventy-five fifteen thousand inhabitants and not included within a9
metropolitan statistical area as defined by the United States Department10
of Commerce, Bureau of the Census, and determined by the board to be11
underserved by available legal representation; 12
(3) Educational loans means loans received as an educational13
benefit, scholarship, or stipend toward a juris doctorate degree and14
either (a) made, insured, or guaranteed by a governmental unit or (b)15
made under a program funded in whole or in part by a governmental unit or16
nonprofit institution; and 17
(4) Public legal service means providing legal service to indigent18
persons while employed by a tax-exempt charitable organization.19
Sec. 2. Section 59-1608.04, Revised Statutes Cumulative Supplement,20
2024, is amended to read: 21
59-1608.04 (1) The State Settlement Cash Fund is created. The fund22
shall be maintained by the Department of Justice and administered by the23
Attorney General. Except as otherwise provided by law, the fund shall24
consist of all recoveries received pursuant to the Consumer Protection25
Act, including any money, funds, securities, or other things of value in26
the nature of civil damages or other payment, except criminal penalties,27
whether such recovery is by way of verdict, judgment, compromise, or28
settlement in or out of court, or other final disposition of any case or29
controversy, or any other payments received on behalf of the state by the30
Department of Justice and administered by the Attorney General for the31
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benefit of the state or the general welfare of its citizens, but1
excluding all funds held in a trust capacity where specific benefits2
accrue to specific individuals, organizations, or governments. The fund3
may be expended for any allowable legal purposes as determined by the4
Attorney General. Transfers from the State Settlement Cash Fund may be5
made at the direction of the Legislature to the Nebraska Capital6
Construction Fund, the Legal Education for Public Service and Rural7
Practice Loan Repayment Assistance Fund, the Nebraska State Patrol Cash8
Fund, the Financial Literacy Cash Fund, and the General Fund. To provide9
necessary financial accountability and management oversight, revenue from10
individual settlement agreements or other separate sources credited to11
the State Settlement Cash Fund may be tracked and accounted for within12
the state accounting system through the use of separate and distinct13
funds, subfunds, or any other available accounting mechanism specifically14
approved by the Accounting Administrator for use by the Department of15
Justice. Any money in the fund available for investment shall be invested16
by the state investment officer pursuant to the Nebraska Capital17
Expansion Act and the Nebraska State Funds Investment Act. Beginning18
October 1, 2024, any investment earnings from investment of money in the19
fund shall be credited to the General Fund. 20
(2) The State Treasurer shall transfer two million five hundred21
thousand dollars from the State Settlement Cash Fund to the Nebraska22
Capital Construction Fund on July 1, 2013, or as soon thereafter as23
administratively possible. 24
(3) The State Treasurer shall transfer eight hundred seventy-six25
thousand nine hundred ninety-eight dollars from the State Settlement Cash26
Fund to the General Fund on or before June 30, 2018, on such dates and in27
such amounts as directed by the budget administrator of the budget28
division of the Department of Administrative Services.29
(4) The State Treasurer shall transfer one million seven hundred30
fifty-six thousand six hundred thirty-nine dollars from the State31
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Settlement Cash Fund to the General Fund on or before June 30, 2019, on1
such dates and in such amounts as directed by the budget administrator of2
the budget division of the Department of Administrative Services.3
(5) The State Treasurer shall transfer one hundred twenty-five4
thousand dollars from the State Settlement Cash Fund to the Legal5
Education for Public Service and Rural Practice Loan Repayment Assistance6
Fund on or before April 30, 2018, on such dates and in such amounts as7
directed by the budget administrator of the budget division of the8
Department of Administrative Services. 9
(6) The State Treasurer shall transfer one hundred fifty thousand10
dollars from the State Settlement Cash Fund to the Legal Education for11
Public Service and Rural Practice Loan Repayment Assistance Fund on or12
before July 9, 2018, on such dates and in such amounts as directed by the13
budget administrator of the budget division of the Department of14
Administrative Services. 15
(7) The State Treasurer shall transfer XXX dollars from the State16
Settlement Cash Fund to the Legal Education for Public Service and Rural17
Practice Loan Repayment Assistance Fund on the effective date of this18
act, or as soon thereafter as administratively possible.19
Sec. 3. Original section 7-203, Reissue Revised Statutes of20
Nebraska, and section 59-1608.04, Revised Statutes Cumulative Supplement,21
2024, are repealed. 22
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