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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1107
Introduced by Meyer, G., 17.
Read first time January 16, 2026
Committee: Transportation and Telecommunications
A BILL FOR AN ACT relating to the Rural Road Improvement District Act; to1
amend sections 39-1638, 39-1639, 39-1640, 39-1641, 39-1642, 39-1643,2
39-1644, 39-1645, 39-1646, 39-1647, 39-1648, 39-1649, 39-1650,3
39-1651, 39-1652, 39-1653, and 39-1655, Reissue Revised Statutes of4
Nebraska; to define and redefine terms; to change provisions5
relating to creation, enlargement, withdrawal, consolidation,6
dissolution, petitions, hearings, improvements, funds, bonds,7
special assessments, certain taxes, and levies for rural road8
improvement districts; to eliminate provisions relating to9
construction of the act; to harmonize provisions; to repeal the10
original sections; and to outright repeal section 39-1654, Reissue11
Revised Statutes of Nebraska. 12
Be it enacted by the people of the State of Nebraska,13
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Section 1. Section 39-1638, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
39-1638 For purposes of the Rural Road Improvement District Act,3
unless the context otherwise requires: 4
(1) Persons shall include individuals, corporations, partnerships,5
and limited liability companies; 6
(1) (2) Board, board of county commissioners, or board of county7
supervisors means shall mean the governing body of the county; and8
(2) District means a rural road improvement district created under9
the Rural Road Improvement District Act; 10
(3) Improvement means shall mean the completed road , or roads, and11
all work incidental thereto; and . 12
(4) Person includes an individual, corporation, partnership, and13
limited liability company. 14
Sec. 2. Section 39-1639, Reissue Revised Statutes of Nebraska, is15
amended to read: 16
39-1639 Any county may establish and construct new roads, change or17
extend existing roads, and improve such roads by grading, surfacing,18
draining, and incidental work by the board on its own initiative19
declaring the advisability or necessity for such establishment,20
construction, change, extension, or improvement therefor in a proposed21
resolution at a meeting of the board. Such , which resolution shall22
state: 23
(1) The the road or roads to be improved; , 24
(2) If if a new road is contemplated, the general location of the25
new road or changes in location of an existing road; ,26
(3) The the general description of the proposed improvement, and if27
the road is to be surfaced, the materials to be used for such28
improvement; therefor, 29
(4) A a rough estimate of the total cost of the improvement, which30
may be made by the county surveyor or any engineer or competent person31
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and need not be based on detailed plans and specifications; ,1
(5) Proposed proposed method of financing; , and2
(6) The the outer boundaries of the district ; and in which it is3
proposed to levy special assessments. 4
(7) Whether special assessments will be levied within such district5
or the cost of the improvement will be a general charge to the county.6
Sec. 3. Section 39-1640, Reissue Revised Statutes of Nebraska, is7
amended to read: 8
39-1640 (1) When a petition is filed with the county clerk signed by9
persons owning not less than twenty-five percent of the area in the10
proposed district requesting the formation of a district, the board11
governing body of the county in which the proposed district is located12
shall prepare and propose the resolution as provided in section 39-1639.13
(2) Any such The petition shall state the improvements desired and14
the property to be included in the district. 15
Sec. 4. Section 39-1641, Reissue Revised Statutes of Nebraska, is16
amended to read: 17
39-1641 (1) A resolution described in section 39-1639 shall not be18
adopted by the board during the same meeting at which such resolution was19
proposed. 20
(2) If special assessments are proposed to be levied in a district,21
the The board shall set a time and place for a hearing on the proposed22
resolution and give notice of such hearing thereof by publication in a23
newspaper of general circulation in the county on the same day each week24
during two successive weeks immediately prior to such hearing meeting and25
posting such notice in three conspicuous places in the proposed district.26
Sec. 5. Section 39-1642, Reissue Revised Statutes of Nebraska, is27
amended to read: 28
39-1642 (1) If special assessments are proposed to be levied in the29
proposed district, any person that owns If persons owning more than fifty30
percent in area of the real property in the proposed district may file a31
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written objection to the formation of the district. Such written1
objection shall: 2
(a) Include any reason why such person objects to the formation of3
such district; and 4
(b) Be filed with the county clerk prior to the time set for the5
hearing pursuant to section 39-1641, if any. 6
(2) If written objections are filed by one or more persons that own7
more than a combined fifty percent in area of the real property in the8
proposed district, with the county clerk prior to the time set for9
hearing written objections to the formation of the district stating the10
reasons for their objections, the resolution proposed under section11
39-1639 shall not be passed and no hearing shall be held.12
(3) At the hearing, all persons interested in the proposed13
improvement shall be given an opportunity to be heard on any matters14
affecting the formation of the district or the improvements to be made in15
such district therein. 16
(4) The hearing may be continued from time to time to give17
opportunity to ascertain all pertinent information.18
(5) At or following such said hearing, or at any subsequent meeting19
of the board if no hearing was required, the board may pass the20
resolution as proposed, amend the resolution and pass the amended21
resolution, or deny passage of the resolution. The amendments may, among22
other things, exclude any tracts included in the proposed resolution,23
include additional property in the district, or change the boundaries of24
the proposed district. 25
Sec. 6. Section 39-1643, Reissue Revised Statutes of Nebraska, is26
amended to read: 27
39-1643 (1) Upon The board on passing the resolution described in28
section 39-1639 that creates a creating the district in which special29
assessments will be levied, the board shall appoint an advisory committee30
of not less than three persons residing in the district to advise with31
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the board on all matters affecting the road improvement in the district,1
financing the cost of the road improvement thereof, and the levy of2
special assessments. 3
(2) The board may from time to time replace any person who resigns4
or refuses to act or appoint additional members to the advisory5
committee. 6
(3) The members of the committees shall receive no compensation for7
their services, but may be reimbursed for expenses incurred by them in8
performing their duties, with reimbursement for mileage to be computed at9
the rate provided in section 81-1176, and the amount of such10
reimbursement thereof shall be included in the cost of the improvement.11
Sec. 7. Section 39-1644, Reissue Revised Statutes of Nebraska, is12
amended to read: 13
39-1644 (1) The district when formed shall be known as Rural Road14
Improvement District No. ........ of .................... County.15
(2) The district , when established, shall not include any lands16
located within a village or city. 17
(3) The board shall proceed as expeditiously as possible to make18
detailed plans for the improvement and improve the roads as generally19
outlined in the resolution, but may make such changes in the general plan20
of improvement found necessary to make the improvement more adequate. The21
improvement may include culverts, bridges, and other drainage work in the22
county related to the roads, and the county may construct fences along23
the right-of-way or contract with the adjoining owners to move any24
existing fences or construct new fences. 25
(4) The county may: 26
(a) Obtain obtain any property necessary for the improvement by27
gift, purchase, or by eminent domain; . 28
(b) Accept The county may accept gifts or contributions to assist in29
the costs of the improvement; 30
(c) Contract and may contract with the state or federal government31
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for assistance in making such said improvement and defraying the cost of1
such improvement; thereof. 2
(d) Contract The county may contract for the entire improvement or3
any part of such improvement; and thereof or 4
(e) Purchase may purchase the materials and do part of the work with5
its own equipment and employees. 6
(5) If the work is done by contract, bids shall be taken and the7
contract let in the same manner as letting other contracts for county8
work. 9
(6) The county may employ special engineers and special counsel to10
assist in the improvement , and their compensation shall be considered as11
a part of the cost of the improvement. 12
Sec. 8. Section 39-1645, Reissue Revised Statutes of Nebraska, is13
amended to read: 14
39-1645 (1) To pay the cost of the improvement as the work15
progresses, the county may: 16
(a) Issue bonds as provided in section 39-1648 and provide for such17
payment of costs from bond proceeds; or 18
(b) Issue issue progress warrants drawn against the rural road19
improvement fund for the total cost of materials purchased on receipt of20
the materials, for the right-of-way acquired, for engineering and legal21
expense, and for other incidental expenses, and for ninety-five percent22
of the cost of the work completed and materials necessarily purchased and23
delivered for the orderly and proper continuation of the project by the24
contractor as certified by the engineer in charge.25
(2) On completion of the contract and the acceptance of the26
improvement by the county, a warrant may be drawn for the balance due the27
contractor. The warrants shall draw interest at the rate set by the28
county board. 29
(3) The county shall pay to the contractor interest, at the rate of30
eight percent per annum on the amounts due on partial and final payments,31
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beginning forty-five days after the certification of the amounts due by1
the engineer in charge and approval by the board governing body and2
running until the date that the warrant is tendered to the contractor.3
Sec. 9. Section 39-1646, Reissue Revised Statutes of Nebraska, is4
amended to read: 5
39-1646 (1) A The county that creates a district shall establish:6
(a) A a special fund for each district to be known as rural road7
improvement district No. ........... fund; or , 8
(b) A single rural road improvement fund for all districts in the9
county and from which any cost related to a road improvement for any such10
district shall be paid. 11
(2) Such county shall credit to the rural road improvement fund:12
(a) Money and credit to said fund all contributions including money13
transferred from the county's general fund; , 14
(b) All all money collected as special assessments; ,15
(c) Special or special levies against the property in the16
district; , and 17
(d) All all money received from the sale of the bonds issued under18
the provisions of section 39-1648. 19
(3) All expenses incurred in connection with the improvement and20
that are not paid out of the general fund funds of the county shall be21
paid from the by warrants drawn on said rural road improvement fund for22
the district. 23
Sec. 10. Section 39-1647, Reissue Revised Statutes of Nebraska, is24
amended to read: 25
39-1647 (1) On completion and acceptance of the improvement in a26
district where special assessments may be levied, the engineer in charge27
of the improvement project shall make and file a statement with the28
county clerk . Such a statement shall include a description of the29
complete cost of the improvements, including interest accruing on the30
progress warrants. 31
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(2) The board , with the assistance of the advisory committee and1
special counsel and engineer in charge of the improvement project, shall:2
(a) Determine determine what part of the costs shall be specially3
assessed to the property in the district; and 4
(b) Prepare shall prepare a proposed schedule of assessments against5
all properties in the district deemed specially benefited by the6
improvements. 7
(3) Any land in the district may be specially assessed for the8
amount it is specially benefited even though the property does not adjoin9
the road improved. 10
(4)(a) The board shall fix a time and place for a meeting when it11
will sit as a board of adjustment and equalization and give notice of12
such meeting thereof by publication on the same day of each week for two13
consecutive weeks immediately prior to the meeting in a newspaper of14
general circulation in the county and by mailing a copy of the notice to15
each record owner of property proposed to be specially assessed.16
(b) At the meeting the board shall equalize and levy the special17
assessments. 18
(5)(a) All special assessments provided for in this section shall be19
a lien on the property from date of levy and shall become due fifty days20
after date of levy and may be paid within that time without interest. Any21
special assessment that is not paid on or before its due date shall be22
charged interest on the amount of such special assessment that remains23
unpaid. No interest shall accrue prior to the due date for such special24
assessment. The rate of interest shall be but if not so paid they shall25
bear interest thereafter at a rate established by the board , but shall26
not to exceed the rate of interest specified in section 45-104.01, as27
such rate may from time to time be adjusted by the Legislature , until28
delinquent. 29
(b) Such assessments shall become delinquent in equal annual30
installments over a period of not to exceed ten years as the board may31
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determine at the time of making the levy. Delinquent installments shall1
bear interest at the rate specified in section 45-104.01, as such rate2
may from time to time be adjusted by the Legislature, until paid and3
shall be collected in the usual manner for the collection of taxes.4
Sec. 11. Section 39-1648, Reissue Revised Statutes of Nebraska, is5
amended to read: 6
39-1648 (1) The On completion and acceptance of the improvement, the7
county may shall issue and sell at not less than par bonds of the county8
in an amount sufficient to pay the balance of the costs of the9
improvements. Prior to the issuance and sale of such bonds, the county10
shall take , taking into account the amounts collected or expected to be11
collected on special assessments and any money funds contributed to the12
district or otherwise available for the improvement.13
(2) Bonds issued under this section The bonds shall:14
(a) Mature mature in not to exceed twenty ten years from their date15
of issuance and bear interest payable annually or semiannually; and .16
(b) Constitute The bonds shall constitute a general obligation of17
the county. , 18
(3) All but all special assessments levied in the district and all ,19
special taxes, or contributions made to the district shall constitute a20
sinking fund for the payment of the bonds issued for such district.21
(4) The county shall collect all special assessments and special22
taxes and levy and collect annually a tax on all taxable property in the23
county sufficient in rate and amount to pay any deficiency on the amount24
required to pay both principal and interest on the bonds as such bonds25
become due. Prior to the levying of any such tax, the county shall take26
into account the amounts available for the payment of such bonds in the27
sinking fund for the district the same fall due. 28
(5) The bonds and tax authorized under in this section shall be in29
addition to all other bonds and taxes authorized by law and shall not be30
included in computing any statutory limitation on the amount of bonds or31
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tax that which may be issued or levied by the county.1
Sec. 12. Section 39-1649, Reissue Revised Statutes of Nebraska, is2
amended to read: 3
39-1649 (1) When the road improvements have been completed and4
accepted, the roads shall constitute a part of the county road system and5
shall be maintained by the county. 6
(2) The If the owners of more than fifty percent of the area in the7
district may petition the board for maintenance in excess of that given8
to other similar county roads . If such petition is made, the board may9
levy and collect annually a special levy of not to exceed three and five-10
tenths cents on each one hundred dollars on all taxable property in the11
district subject to section 77-3443. 12
(3) Money that is collected pursuant to a special levy under this13
section The money as collected shall be credited to the rural road14
improvement district fund for such district and used only for the repair15
and maintenance of the roads in the district where such special levy was16
imposed. 17
Sec. 13. Section 39-1650, Reissue Revised Statutes of Nebraska, is18
amended to read: 19
39-1650 (1) Subsection (2) of this section applies:20
(a) When it is When it shall be deemed advisable to enlarge the21
boundaries of a district by the advisory committee for a of the district22
where special assessments have been or will be imposed; to enlarge the23
boundaries thereof, and 24
(b) If the conditions mentioned in section 39-1639 apply to such25
enlarged territory. , 26
(2)(a) A a petition for the enlargement of such the district that27
is , signed by persons that own owning not less than twenty-five percent28
of the territory proposed to be added to the district , may be filed with29
the county clerk. 30
(b) If a petition is filed pursuant to subdivision (a) of this31
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subsection, and thereupon the board shall proceed in all respects as1
provided in sections 39-1640 to 39-1643, so far as applicable.2
Sec. 14. Section 39-1651, Reissue Revised Statutes of Nebraska, is3
amended to read: 4
39-1651 (1) A petition to withdraw seeking the withdrawal of real5
property from a such district may be filed: , 6
(a) By signed by persons that own owning not less than twenty-five7
percent of the territory in an area that is proposed to be withdrawn; and8
(b) If special assessments have been or will be imposed in such9
district. 10
(2) A petition described in subsection (1) of this section shall may11
be filed with the county clerk. 12
(3) If a petition is filed pursuant to this section, the The board13
shall set a time and place for a hearing pursuant to as set forth in14
sections 39-1641 and 39-1642. At the hearing the board may pass a15
resolution permitting the withdrawal of the proposed territory.16
(4) Any area withdrawn from the district shall be subject to17
assessment and be otherwise chargeable for the payment and discharge of18
all the obligations outstanding at the time of filing the petition for19
withdrawal. 20
(5) An area withdrawn from a district shall not be subject to21
assessment or otherwise chargeable for any obligations of any nature or22
kind incurred after the time of filing the petition for withdrawal of the23
area from the district. 24
Sec. 15. Section 39-1652, Reissue Revised Statutes of Nebraska, is25
amended to read: 26
39-1652 (1) A petition to consolidate two or more districts in a27
county may be filed: 28
(a) By persons that own Upon the filing of a petition with the29
county clerk by persons owning not less than twenty-five percent of the30
territory of each district in the proposed consolidation; and31
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(b) If special assessments have been or will be imposed in each1
district in the proposed consolidation. 2
(2) A petition described in subsection (1) of this section shall be3
filed with the county clerk. 4
(3) If a petition is filed pursuant to this section, of the county5
proposing a consolidation of the districts, the board shall set a time6
and place for a hearing pursuant to as set forth in sections 39-1641 and7
39-1642. At the hearing the board may pass a resolution consolidating the8
districts that are described in the petition petitioning to be9
consolidated. 10
Sec. 16. Section 39-1653, Reissue Revised Statutes of Nebraska, is11
amended to read: 12
39-1653 (1) A petition for dissolution of a district may be filed:13
(a) By persons that own Upon the filing of a petition for14
dissolution with the county clerk by persons owning not less than twenty-15
five percent of the territory of the district; and ,16
(b) If special assessments have been or will be imposed in such17
district. 18
(2) A petition described in subsection (1) of this section shall be19
filed with the county clerk. 20
(3) If a petition is filed pursuant to this section, the board shall21
set a time and place for a hearing pursuant to as set forth in sections22
39-1641 and 39-1642. At the hearing the board may pass a resolution23
dissolving the district. 24
(4) If a district is dissolved pursuant to this section, the The25
board shall perform all acts necessary to wind up the affairs of the26
district. All funds remaining after discharge of the district's27
indebtedness shall be deposited in the general fund of the county.28
Sec. 17. Section 39-1655, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
39-1655 Sections 39-1638 to 39-1655 shall be known and may be cited31
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as the Rural Road Improvement District Act. 1
Sec. 18. Original sections 39-1638, 39-1639, 39-1640, 39-1641,2
39-1642, 39-1643, 39-1644, 39-1645, 39-1646, 39-1647, 39-1648, 39-1649,3
39-1650, 39-1651, 39-1652, 39-1653, and 39-1655, Reissue Revised Statutes4
of Nebraska, are repealed. 5
Sec. 19. The following section is outright repealed: Section6
39-1654, Reissue Revised Statutes of Nebraska. 7
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