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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 733
Introduced by Riepe, 12.
Read first time January 07, 2026
Committee: Health and Human Services
A BILL FOR AN ACT relating to the Department of Health and Human1
Services; to amend sections 81-3113, 81-3116, 83-1201, 83-1204, and2
83-1206, Reissue Revised Statutes of Nebraska, section 43-4413,3
Revised Statutes Cumulative Supplement, 2024, and sections 68-15304
and 81-1316, Revised Statutes Supplement, 2025; to change the name5
of the Division of Developmental Disabilities of the Department of6
Health and Human Services to the Division of Disability and Aging of7
the Department of Health and Human Services; to eliminate obsolete8
provisions; to repeal the original sections; and to outright repeal9
sections 81-3133.02, 81-3134, 83-1216.02, 83-1227, and 83-1228,10
Reissue Revised Statutes of Nebraska. 11
Be it enacted by the people of the State of Nebraska,12
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Section 1. Section 43-4413, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
43-4413 (1) There is hereby established a child welfare practice3
model work group. The work group may include, but is not limited to:4
(a) The Director of Behavioral Health of the Division of Behavioral5
Health or the director's designee; 6
(b) The Director of Children and Family Services of the Division of7
Children and Family Services or the director's designee;8
(c) The Director of Disability and Aging Developmental Disabilities9
of the Division of Disability and Aging Developmental Disabilities or the10
director's designee; 11
(d) The Director of Medicaid and Long-Term Care of the Division of12
Medicaid and Long-Term Care or the director's designee;13
(e) The Director of Public Health of the Division of Public Health14
or the director's designee; 15
(f) The Commissioner of Education or the commissioner's designee;16
(g) The State Court Administrator; 17
(h) A representative of the state judicial branch to be appointed by18
the Chief Justice; and 19
(i) Representatives from each federally recognized Indian tribe20
within the State of Nebraska, appointed by each tribe's Tribal Council or21
Executive Committee. 22
(2) The work group shall develop a practice and finance model for23
child welfare system transformation in Nebraska, with consultation from24
key stakeholders, judges from separate juvenile courts and judges of25
county courts sitting as juvenile courts, private child welfare26
providers, individuals with lived experience in the child welfare system,27
the Nebraska Children's Commission, the Inspector General of Nebraska28
Child Welfare, the Foster Care Review Office, child advocacy centers, law29
enforcement, and county attorneys. The practice and finance model shall30
include, but not be limited to: 31
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(a) Development of a statewide mission and vision for the child1
welfare system in Nebraska; 2
(b) Development of values and practice priorities for the child3
welfare system in Nebraska; 4
(c) Development of statewide program goals and a practice and5
finance model for child welfare system case management and service6
delivery; 7
(d) Development of engagement strategies to support community8
involvement in child welfare system transformation;9
(e) Development of strategies that strengthen relationships across10
the court system, probation, executive branch agencies, the State11
Department of Education, and community partners; 12
(f) Development of strategies that support integration across13
agencies; 14
(g) Development of accountabilities across the entire child welfare15
system; 16
(h) Evaluation of the state's Title IV-E claiming practices and17
identification of appropriate steps to optimize federal reimbursement for18
child welfare system expenditures; 19
(i) Opportunities and financial mechanisms for providers to pilot20
innovative solutions to meet program goals; and 21
(j) Development of a strategy for data collection and outcome22
monitoring. 23
(3) The work group shall provide monthly updates to the strategic24
leadership group. 25
Sec. 2. Section 68-1530, Revised Statutes Supplement, 2025, is26
amended to read: 27
68-1530 (1) The Department of Health and Human Services shall apply28
for a three-year medicaid waiver under section 1915(c) of the federal29
Social Security Act to administer a family support program which is a30
home and community-based services program as provided in this section.31
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(2)(a) The Advisory Committee on Developmental Disabilities created1
in section 83-1212.01 shall assist in the development and guide the2
implementation of the family support program. The family support program3
shall be administered by the Division of Disability and Aging4
Developmental Disabilities of the Department of Health and Human5
Services. 6
(b) It is the intent of the Legislature that any funds distributed7
to Nebraska pursuant to section 9817 of the federal American Rescue Plan8
Act of 2021, Public Law 117-2, be used to eliminate unmet needs relating9
to home and community-based services for persons with developmental10
disabilities as much as is possible. 11
(c) If funds are distributed to Nebraska pursuant to section 9817 of12
the federal American Rescue Plan Act of 2021, it is the intent of the13
Legislature that such funds distributed to Nebraska should at least14
partially fund the family support program if doing so is in accordance15
with federal law, rules, regulations, or guidance.16
(3) The family support program shall: 17
(a) Offer an annual capped budget for long-term services and18
supports of ten thousand dollars for each eligible applicant;19
(b) Offer a pathway for medicaid eligibility for disabled children20
by disregarding parental income and establishing eligibility based on a21
child's income and assets; 22
(c) Allow a family to self-direct services, including contracting23
for services and supports approved by the division; and24
(d) Not exceed eight hundred fifty participants.25
(4) The department, in consultation with the advisory committee,26
shall adopt and promulgate rules and regulations for the implementation27
of the family support program to be set at an intermediate care facility28
institutional level of care to support children with intellectual and29
developmental disabilities and their families. Such rules and regulations30
shall include, but not be limited to: 31
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(a) Criteria for and types of long-term services and supports to be1
provided by the family support program; 2
(b) The method, as provided in section 68-1532, for allocating3
resources to family units participating in the family support program;4
(c) Eligibility determination, including, but not limited to, a5
child's maximum income and assets; 6
(d) The enrollment process; 7
(e) Limits on benefits; and 8
(f) Processes to establish quality assurance, including, but not9
limited to, measures of family satisfaction. 10
(5) The division shall administer the family support program within11
the limits of the appropriations by the Legislature for such program.12
(6) Until December 31, 2027, the division shall submit an annual13
report electronically to the Legislature on the family support program.14
The report shall include: 15
(a) The distribution of available funds, the total number of16
children and families served, and the status of the waiting list for the17
comprehensive waiver and other applicable waivers;18
(b) A summary of any grievances filed by family units pertaining to19
the family support program, including any appeals and a description of20
how such grievances were resolved; 21
(c) The number and demographics of children with disabilities and22
their families who applied under the family support program but who were23
not found eligible and the reason such children and their families were24
not found eligible; 25
(d) Quality assurance activities and the results of annual measures26
of family satisfaction; and 27
(e) Recommendations to innovate the family support program, improve28
current programming, and maximize limited funding, including, but not29
limited to, the potential utilization of other medicaid pathways or30
medicaid waivers that could help increase access to medicaid and long-31
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term services and supports for children with disabilities or special1
health care needs. 2
Sec. 3. Section 81-1316, Revised Statutes Supplement, 2025, is3
amended to read: 4
81-1316 (1) All agencies and personnel of state government shall be5
covered by sections 81-1301 to 81-1319 and shall be considered subject to6
the State Personnel System, except the following: 7
(a) All personnel of the office of the Governor;8
(b) All personnel of the office of the Lieutenant Governor;9
(c) All personnel of the office of the Secretary of State;10
(d) All personnel of the office of the State Treasurer;11
(e) All personnel of the office of the Attorney General;12
(f) All personnel of the office of the Auditor of Public Accounts;13
(g) All personnel of the Legislature; 14
(h) All personnel of the court systems; 15
(i) All personnel of the Board of Educational Lands and Funds;16
(j) All personnel of the Public Service Commission;17
(k) All personnel of the Nebraska Brand Committee;18
(l) All personnel of the Commission of Industrial Relations;19
(m) All personnel of the State Department of Education;20
(n) All personnel of the Nebraska state colleges and the Board of21
Trustees of the Nebraska State Colleges; 22
(o) All personnel of the University of Nebraska;23
(p) All personnel of the Coordinating Commission for Postsecondary24
Education; 25
(q) All personnel of the Governor's Policy Research Office;26
(r) All personnel of the Commission on Public Advocacy;27
(s) All agency heads; 28
(t)(i) The Director of Behavioral Health of the Division of29
Behavioral Health; (ii) the Director of Children and Family Services of30
the Division of Children and Family Services; (iii) the Director of31
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Disability and Aging Developmental Disabilities of the Division of1
Disability and Aging Developmental Disabilities; (iv) the Director of2
Medicaid and Long-Term Care of the Division of Medicaid and Long-Term3
Care; and (v) the Director of Public Health of the Division of Public4
Health; 5
(u) The chief medical officer established under section 81-3115, the6
Administrator of the Office of Juvenile Services, and the chief executive7
officers of the Beatrice State Developmental Center, Lincoln Regional8
Center, Norfolk Regional Center, Hastings Regional Center, Central9
Nebraska Veterans' Home, Norfolk Veterans' Home, Eastern Nebraska10
Veterans' Home, Western Nebraska Veterans' Home, and each youth11
rehabilitation and treatment center; 12
(v) The chief executive officers of all facilities operated by the13
Department of Correctional Services and the medical director for the14
department appointed pursuant to section 83-4,156;15
(w) All personnel employed as pharmacists, physicians,16
psychiatrists, or psychologists by the Department of Correctional17
Services; 18
(x) All personnel employed as pharmacists, physicians,19
psychiatrists, psychologists, service area administrators, or facility20
operating officers of the Department of Health and Human Services or the21
Department of Veterans' Affairs; 22
(y) Deputies and examiners of the Department of Banking and Finance23
and the Department of Insurance as set forth in sections 8-105 and24
44-119, except for those deputies and examiners who remain in the State25
Personnel System; 26
(z) All personnel of the Tax Equalization and Review Commission;27
(aa) The associate director of the Conservation Division of the28
Nebraska State Historical Society and all personnel employed as a29
Conservator I or Conservator II of the Conservation Division of the30
Nebraska State Historical Society; 31
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(bb) Assistant directors and deputies of the Nebraska Public1
Employees Retirement Systems; and 2
(cc) The Chief Water Officer, assistant directors, and deputies of3
the Department of Water, Energy, and Environment. 4
(2) At each agency head's discretion, up to the following number of5
additional positions may be exempted from the State Personnel System,6
based on the following agency size categories: 7
Number of Agency 8 Number of Noncovered
Employees 9 Positions
less than 25 10 0
25 to 100 11 1
101 to 250 12 2
251 to 500 13 3
501 to 1000 14 4
1001 to 2000 15 5
2001 to 3000 16 8
3001 to 4000 17 11
4001 to 5000 18 40
over 5000 19 50
The purpose of having such noncovered positions shall be to allow20
agency heads the opportunity to recruit, hire, and supervise critical,21
confidential, or policymaking personnel without restrictions from22
selection procedures, compensation rules, career protections, and23
grievance privileges. Persons holding the noncovered positions shall24
serve at the pleasure of the agency head and shall be paid salaries set25
by the agency head. An agency with over five thousand employees shall26
provide notice in writing to the Health and Human Services Committee of27
the Legislature when forty noncovered positions have been filled by the28
agency head pursuant to this subsection. 29
(3) No changes to this section or to the number of noncovered30
positions within an agency shall affect the status of personnel employed31
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on the date the changes become operative without their prior written1
agreement. A state employee's career protections or coverage by personnel2
rules and regulations shall not be revoked by redesignation of the3
employee's position as a noncovered position without the prior written4
agreement of such employee. 5
Sec. 4. Section 81-3113, Reissue Revised Statutes of Nebraska, is6
amended to read: 7
81-3113 The Department of Health and Human Services is created. The8
department shall have five divisions to be known as (1) the Division of9
Behavioral Health, (2) the Division of Children and Family Services, (3)10
the Division of Disability and Aging Developmental Disabilities, (4) the11
Division of Medicaid and Long-Term Care, and (5) the Division of Public12
Health. 13
Sec. 5. Section 81-3116, Reissue Revised Statutes of Nebraska, is14
amended to read: 15
81-3116 The responsibilities of the divisions created in section16
81-3113 include, but are not limited to, the following:17
(1) The Division of Behavioral Health shall administer (a) the state18
hospitals for the mentally ill designated in section 83-305 and (b)19
publicly funded community-based behavioral health services;20
(2) The Division of Children and Family Services shall administer21
(a) protection and safety programs and services, including child welfare22
programs and services and the Office of Juvenile Services, (b) economic23
and family support programs and services, and (c) service areas as may be24
designated by the chief executive officer or by the Director of Children25
and Family Services under authority of the chief executive officer,26
except that on and after September 1, 2012, the western, central, and27
northern service areas shall be aligned to be coterminous with the28
district court judicial districts described in section 24-301.02;29
(3) The Division of Disability and Aging Developmental Disabilities30
shall administer (a) the Beatrice State Developmental Center and (b)31
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publicly funded community-based developmental disabilities services;1
(4) The Division of Medicaid and Long-Term Care shall administer (a)2
the medical assistance program also known as medicaid, (b) aging3
services, and (c) other related programs and services; and4
(5) The Division of Public Health shall administer (a) preventive5
and community health programs and services, (b) the regulation and6
licensure of health-related professions and occupations, and (c) the7
regulation and licensure of health care facilities and health care8
services. 9
Sec. 6. Section 83-1201, Reissue Revised Statutes of Nebraska, is10
amended to read: 11
83-1201 Sections 83-1201 to 83-1226 83-1228 shall be known and may12
be cited as the Developmental Disabilities Services Act.13
Sec. 7. Section 83-1204, Reissue Revised Statutes of Nebraska, is14
amended to read: 15
83-1204 Department shall mean the Division of Disability and Aging16
Developmental Disabilities of the Department of Health and Human17
Services. 18
Sec. 8. Section 83-1206, Reissue Revised Statutes of Nebraska, is19
amended to read: 20
83-1206 Director shall mean the Director of Disability and Aging21
Developmental Disabilities of the Division of Disability and Aging22
Developmental Disabilities. 23
Sec. 9. Original sections 81-3113, 81-3116, 83-1201, 83-1204, and24
83-1206, Reissue Revised Statutes of Nebraska, section 43-4413, Revised25
Statutes Cumulative Supplement, 2024, and sections 68-1530 and 81-1316,26
Revised Statutes Supplement, 2025, are repealed. 27
Sec. 10. The following sections are outright repealed: Sections28
81-3133.02, 81-3134, 83-1216.02, 83-1227, and 83-1228, Reissue Revised29
Statutes of Nebraska. 30
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