State Codes and Statutes

Statutes > Nebraska > Chapter79 > 79-1104_01

79-1104.01. Nebraska EarlyChildhood Education Endowment; endowment provider; requirements; endowmentagreement; Early Childhood Education Endowment Fund; Early Childhood EducationEndowment Cash Fund; created; investment.(1) Within ninetydays after July 14, 2006, the State Department of Education shall requestproposals from private endowments with experience in managing public and privatefunds for the benefit of children and families in multiple locations in Nebraskato be the endowment provider for the Nebraska Early Childhood Education Endowmentupon the terms set forth in this section.(2) An endowment seeking to become the endowment provider for the NebraskaEarly Childhood Education Endowment shall agree to:(a) Irrevocably commit, subject to subdivision (4)(a) of this section,no less than twenty million dollars in a private endowment to be used solelyas part of the Nebraska Early Childhood Education Endowment within five yearsafter the effective date of the endowment agreement, of which no less thanfive million dollars shall be pledged on the effective date of the endowmentagreement. A minimum of one million dollars shall be placed in the privateendowment prior to December 31, 2006, and a minimum of five million dollarsshall be placed in the private endowment prior to June 30, 2007;(b) Commit all earnings deposited from such private endowment for depositinto the Early Childhood Education Endowment Cash Fund;(c) Permit the board of trustees to determine the allocation of fundsfrom the Early Childhood Education Endowment Cash Fund pursuant to section 79-1104.02; and(d) Submit to the State Department of Education an annual financialstatement of the private endowment, audited by an independent auditor andcomplying with all applicable Internal Revenue Service requirements. The financialstatement shall report details on the private endowment, including the currentvalue of the corpus and the annual receipts to the private endowment categorizedby donations and interests, together with a report listing the amount andpurpose of expenditures from the private endowment.(3) Upon selection of an endowment provider, the State Department ofEducation and such endowment provider shall enter into an endowment agreementpursuant to which the state and the endowment provider will agree to depositfunds as provided in subsection (4) of this section.(4)(a) Upon the effective date of an endowment agreement, the stateshall provide for the Early Childhood Education Endowment Fund, which is herebycreated, in accordance with section 79-1104.05. Any money in the fund availablefor investment shall be invested by the state investment officer pursuantto the Nebraska Capital Expansion Act and the Nebraska State Funds InvestmentAct.(b) All interest, earnings, and proceeds from the Early Childhood EducationEndowment Fund shall be deposited in the Early Childhood Education EndowmentCash Fund, which is hereby created. Any money in the fund available for investmentshall be invested by the state investment officer pursuant to the NebraskaCapital Expansion Act and the Nebraska State Funds Investment Act. All interest,earnings, and proceeds from the Early Childhood Education Endowment Cash Fundshall be retained in such fund.(c) Upon the effective date of an endowment agreement, the endowmentprovider shall deposit the amounts set forth in the endowment agreement intoa private endowment for the sole benefit of the Early Childhood EducationEndowment Fund. Money in the private endowment shall be managed by the endowmentprovider in accordance with sound, professional, fiduciary practices and inaccordance with the endowment agreement.(d) Earnings deposited from the private endowment shall be depositedinto the Early Childhood Education Endowment Cash Fund at least annually oras the endowment agreement provides. SourceLaws 2006, LB 1256, § 4; Laws 2008, LB1153, § 4; Laws 2009, LB456, § 1. Cross ReferencesNebraska Capital Expansion Act, see section 72-1269.Nebraska State Funds Investment Act, see section 72-1260.