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LB 592

Change provisions relating to the achieving a better life experience program

109th Legislature (2025-2026) Introduced by Beau Ballard

Nebraska LB 592 adds §77-1407 exemption shielding ABLE account funds from levy, judgment, or garnishment, protecting owners and designated beneficiaries from debt collection.

Approved by Governor on April 7, 2025
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Bill Summary · LB 592

Summary — LB 592 (2025)

Title: Change provisions relating to the Achieving a Better Life Experience (ABLE) program
Introduced: Jan 22, 2025 (Sen. Beau Ballard) — Approved by Governor Apr 7, 2025

Main purpose

LB 592 amends Neb. Rev. Stat. § 77-1407 to add an express state-law protection shielding funds in Nebraska ABLE accounts from seizure or judicial enforcement to satisfy the debts or liabilities of the account owner or the designated beneficiary.

Key provisions

  • Amends section 77-1407 (Reissue Revised Statutes of Nebraska).
  • Adds a new explicit exemption stating that “any amount in an account is not susceptible to any levy, execution, judgment, or other operation of law, garnishment, or other judicial enforcement, and shall not be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of the designated beneficiary or owner of the account.”
  • Retains existing statutory structure for the ABLE program:
    • Funds held in trust by the State Treasurer and credited into three funds: ABLE Program Fund, ABLE Expense Fund, and the Treasury Management Cash Fund.
    • Contributions deposited into separate accounts; contributions must be cash; funds invested by the state investment officer under applicable state investment acts.
    • Expense fund used to pay program costs and can transfer pro rata share for investment management; intent to reimburse start‑up costs when self‑sustaining.
  • Repeals the original version of § 77-1407 and replaces it with the amended text.

Who is affected

  • Primary beneficiaries: ABLE account owners and designated beneficiaries (individuals with disabilities who use ABLE accounts to save for qualified disability expenses). They gain stronger statutory protection against creditor actions and court-ordered collections.
  • Secondary impacts: creditors, debt collectors, and parties seeking to enforce judgments against account owners/beneficiaries will be limited in attaching ABLE account assets under Nebraska law.
  • State agencies and program administrators: clarifies how program assets are held and protected under state statute.

Procedural/timeline notes

  • Referred to Revenue Committee Jan 24, 2025; hearing Feb 5, 2025; advanced to General File (committee roll call supporters listed).
  • Advanced through legislative stages (Select File, Final Reading placed March 19); Passed Final Reading 47–0–2 on Apr 3, 2025.
  • Presented to Governor Apr 3, 2025; approved by Governor Apr 7, 2025.
  • Effect: statutory amendment to § 77-1407 (original section repealed). (No separate effective date specified in bill text excerpt.)

Compiled from official sources — confirm details with the bill’s official record.

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