State Codes and Statutes

Statutes > Nebraska > Chapter85 > 85-1807

85-1807. Deposit of funds; College Savings Plan Administrative Fund;College Savings Plan Expense Fund; created; use; investment.(1) The State Treasurer shall deposit money received by theNebraska educational savings plan trust into three funds: The CollegeSavings Plan Program Fund, the College Savings Plan Expense Fund, and theCollege Savings Plan Administrative Fund. The State Treasurershall deposit money received by the trust into the appropriate fund. The StateTreasurer and Accounting Administrator of the Department of AdministrativeServices shall determine the state fund types necessary to comply with section529 of the Internal Revenue Code and state policy. The money in the fundsshall be invested by the state investment officer pursuant to policies establishedby the Nebraska Investment Council. Theprogram fund, the expense fund, and the administrative fund shall be separatelyadministered. The Nebraska educational savings plan trust shall be operatedwith no General Fund appropriations.(2) All money paid by participantsin connection with participation agreements and all investment income earnedon such money shall be deposited as received into separate accounts withinthe program fund. Contributions to thetrust made by participants may only bemade in the form of cash. All funds generated in connection with participationagreements shall be deposited into the appropriate accounts within the programfund. A participant or beneficiary shall not provide investment directionregarding program contributions or earnings held by the trust. Money accrued by participants in the program fund may beused for payments to any institution of higher education.(3) The CollegeSavings Plan Administrative Fund is created. Money from the trust transferredfrom the expense fund to the administrative fund in an amount authorized byan appropriation from the Legislature shall be utilized to pay for the costsof administering, operating, and maintaining the trust, to the extent permittedby section 529 of the Internal Revenue Code. The administrative fund shallnot be credited with any money other than money transferred from the expensefund in an amount authorized by an appropriation by the Legislature or anyinterest income earned on the balances held in the administrative fund. TheState Treasurer shall transfer any money in the administrative fund on July1, 2010, to the expense fund on July 1, 2010, or as soon as administrativelypossible. Any money in the administrative fund available for investment shallbe invested by the state investment officer pursuant to the Nebraska CapitalExpansion Act and the Nebraska State Funds Investment Act.(4) The CollegeSavings Plan Expense Fund is created. The expense fund shall be used to paycosts associated with the Nebraska educational savings plan trust and shallbe funded with fees assessed to the program fund. The State Treasurer shalltransfer from the expense fund to the State Investment Officer's Cash Fundan amount equal to the pro rata share of the budget appropriated to the NebraskaInvestment Council as permitted in section 72-1249.02, to cover reasonableexpenses incurred for investment management of the Nebraska educational savingsplan trust. Annually and prior to such transfer to the State Investment Officer'sCash Fund, the State Treasurer shall report to the budget division of theDepartment of Administrative Services and to the Legislative Fiscal Analystthe amounts transferred during the previous fiscal year. The State Treasurershall transfer any money in the endowment fund on July 1, 2010, to the expensefund on such date. Transfers may be made from the expense fund to the GeneralFund at the direction of the Legislature. Any money in the expense fund availablefor investment shall be invested by the state investment officer pursuantto the Nebraska Capital Expansion Act and the Nebraska State Funds InvestmentAct. SourceLaws 2000, LB 1003, § 7; Laws 2003, LB 574, § 29; Laws 2010, LB197, § 5.Operative Date: July 1, 2010 Cross ReferencesNebraska Capital Expansion Act, see section 72-1269.Nebraska State Funds Investment Act, see section 72-1260.