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LEGISLATIVE BILL 1108
Approved by the Governor April 14, 2026
Introduced by Clouse, 37.
A BILL FOR AN ACT relating to the public entities; to amend sections 13-824.01
and 13-824.02, Reissue Revised Statutes of Nebraska, and section 70-637,
Revised Statutes Cumulative Supplement, 2024; to change provisions related
to contracts entered into by and bidding requirements and exceptions for
certain entities; and to repeal the original sections.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 13-824.01, Reissue Revised Statutes of Nebraska, is
amended to read:
13-824.01 (1) A joint entity shall cause estimates of the costs to be made
by some competent engineer or engineers before the joint entity enters into any
contract for the construction, management, ownership, maintenance, servicing,
or purchase of an electric generating facility and related facilities.
(2) If the estimated cost exceeds the sum of seven one hundred fifty
thousand dollars, for those joint entities with a gross revenue of less than
five hundred million dollars, or one million five hundred thousand dollars, for
those joint entities with a gross revenue of five hundred million dollars or
more, no such contract shall be entered into without advertising for sealed
bids.
(3)(a) The provisions of subsection (2) of this section and sections
13-824.02 and 13-824.03 relating to sealed bids shall not apply to contracts
entered into by a joint entity in the exercise of its rights and powers
relating to radioactive material or the energy therefrom, any technologically
complex or unique equipment, equipment or supplemental labor procurement from
an electric utility or from or through an electric utility alliance, or any
maintenance or repair if:
(i) The engineer or engineers certify that, by reason of the nature of the
subject matter of the contract, compliance with subsection (2) of this section
would be impractical or not in the public interest;
(ii) The engineer's certification is approved by a two-thirds vote of the
governing body of the joint entity; and
(iii) The joint entity advertises notice of its intention to enter into
such contract, the general nature of the proposed work, and the name of the
person to be contacted for additional information by anyone interested in
contracting for such work.
(b) Any contract for which the governing body has approved an engineer's
certificate described in subdivision (a) of this subsection shall be advertised
once in three issues, not less than seven days between issues, in one or more
newspapers of general circulation in the municipality or county where the
principal office or place of business of the joint entity is located, or if no
newspaper is so published then in a newspaper qualified to carry legal notices
having general circulation therein, and in such additional newspapers or trade
or technical periodicals as may be selected by the governing body in order to
give proper notice of its intention to enter into such contract, and any such
contract shall not be entered into prior to twenty days after the last
advertisement.
(4) The provisions of subsection (2) of this section and sections
13-824.02 and 13-824.03 shall not apply to contracts in excess of seven one
hundred fifty thousand dollars , for those joint entities with a gross revenue
of less than five hundred million dollars, or one million five hundred thousand
dollars, for those joint entities with a gross revenue of five hundred million
dollars or more, entered into for the purchase of any materials, machinery, or
apparatus to be used in facilities described in subsection (1) of this section
if, after advertising for sealed bids:
(a) No responsive bids are received; or
(b) The governing body of the joint entity determines that all bids
received are in excess of the fair market value of the subject matter of such
bids.
(5) Notwithstanding any other provision of subsection (2) of this section
or sections 13-824.02 and 13-824.03, a joint entity may, without advertising or
sealed bidding, purchase replacement parts or services relating to such
replacement parts for any generating unit, transformer, or other transmission
and distribution equipment from the original manufacturer of such equipment
upon certification by an engineer or engineers that such manufacturer is the
only available source of supply for such replacement parts or services and that
such purchase is in compliance with standards established by the governing body
of the joint entity. A written statement containing such certification and a
description of the resulting purchase of replacement parts or services from the
original manufacturer shall be submitted to the joint entity by the engineer or
engineers certifying the purchase for the governing body's approval. After such
certification, but not necessarily before the governing body's review, notice
of any such purchase shall be published once a week for at least three
consecutive weeks in one or more newspapers of general circulation in the
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municipality or county where the principal office or place of business of the
joint entity is located and published in such additional newspapers or trade or
technical periodicals as may be selected by the governing body in order to give
proper notice of such purchase.
(6) Notwithstanding any other provision of subsection (2) of this section
or sections 13-824.02 and 13-824.03, a joint entity may, without advertising or
sealed bidding, purchase used equipment and materials on a negotiated basis
upon certification by an engineer that such equipment is or such materials are
in compliance with standards established by the governing body. A written
statement containing such certification shall be submitted to the joint entity
by the engineer for the governing body's approval.
(7) In the event of sudden, unanticipated, or unexpected damage, injury,
or impairment to any electric generating facility or related facilities, or an
order of a regulatory body which would prevent compliance with sections
13-824.01 to 13-824.03, the governing body of the joint entity may, in its
discretion, declare an emergency and proceed with any necessary construction,
reconstruction, remodeling, building, alteration, maintenance, repair,
extension, or improvement of such electric generating facility or related
facilities without first complying with the provisions of sections 13-824.01 to
13-824.03.
Sec. 2. Section 13-824.02, Reissue Revised Statutes of Nebraska, is
amended to read:
13-824.02 Prior to advertisement for sealed bids, plans and specifications
for the proposed work or materials shall be prepared and filed at the principal
office or place of business of the joint entity. Such advertisement shall be
made once in three issues, not less than seven days between issues, in one or
more newspapers of general circulation in the municipality or county where the
principal office or place of business of the joint entity is located, or if no
newspaper is so published then in a newspaper qualified to carry legal notices
having general circulation therein, and in such additional newspapers or trade
or technical periodicals as may be selected by the governing body of the joint
entity in order to give proper notice of the receiving of bids. Such
advertisement shall designate the nature of the work proposed to be done or
materials proposed to be purchased, that the plans and specifications therefor
may be inspected at the office of the joint entity, giving the location
thereof, the time within which bids shall be filed, and the date, hour, and
place the same shall be opened.
Sec. 3. Section 70-637, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
70-637 (1) A district shall cause estimates of the costs to be made by
some competent engineer or engineers before the district enters into any
contract for:
(a) The construction, reconstruction, remodeling, building, alteration,
maintenance, repair, extension, or improvement, for the use of the district, of
any:
(i) Power plant or system;
(ii) Hydrogen production, storage, or distribution system;
(iii) Ethanol production or distribution system;
(iv) Irrigation works; or
(v) Part or section of a system or works described in subdivisions (i)
through (iv) of this subdivision; or
(b) The purchase of any materials, machinery, or apparatus to be used in
the projects described in subdivision (1)(a) of this section.
(2) If the estimated cost exceeds the sum of seven hundred fifty thousand
dollars, for those districts with a gross revenue of less than five hundred
million dollars, or one million five hundred thousand dollars, for those
districts with a gross revenue of five hundred million dollars or more, no such
contract shall be entered into without advertising for sealed bids.
(3) Notwithstanding the provisions of subsection (2) of this section and
sections 70-638 and 70-639, the board of directors of the district may
negotiate directly with sheltered workshops pursuant to section 48-1503.
(4)(a) The provisions of subsection (2) of this section and sections
70-638 and 70-639 relating to sealed bids shall not apply to contracts entered
into by a district in the exercise of its rights and powers relating to (i)
radioactive material or the energy therefrom, (ii) any technologically complex
or unique equipment, (iii) equipment or supplemental labor procurement from an
electric utility or from or through an electric utility alliance, or (iv) any
maintenance or repair, if the requirements of subdivisions (b) and (c) of this
subsection are met.
(b) A contract described in subdivision (a) of this subsection need not
comply with subsection (2) of this section or section 70-638 or 70-639 if:
(i) The engineer or engineers certify that, by reason of the nature of the
subject matter of the contract, compliance with subsection (2) of this section
would be impractical or not in the public interest;
(ii) The engineer's certification is approved by a two-thirds vote of the
board; and
(iii) The district advertises notice of its intention to enter into such
contract, the general nature of the proposed work, and the name of the person
to be contacted for additional information by anyone interested in contracting
for such work.
(c) Any contract for which the board has approved an engineer's
certificate described in subdivision (b) of this subsection shall be advertised
once in three issues not less than seven days between issues in one or more
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newspapers of general circulation in the district and in such additional
newspapers or trade or technical periodicals as may be selected by the board in
order to give proper notice of its intention to enter into such contract, and
any such contract shall not be entered into prior to twenty days after the last
advertisement.
(5) The provisions of subsection (2) of this section and sections 70-638
and 70-639 shall not apply to contracts in excess of seven hundred fifty
thousand dollars, for those districts with a gross revenue of less than five
hundred million dollars, or one million five hundred thousand dollars, for
those districts with a gross revenue of five hundred million dollars or more,
entered into for the purchase of any materials, machinery, or apparatus to be
used in projects described in subdivision (1)(a) of this section if, after
advertising for sealed bids:
(a) No responsive bids are received; or
(b) The board of directors of such district determines that all bids
received are in excess of the fair market value of the subject matter of such
bids.
(6) Notwithstanding any other provision of subsection (2) of this section
or sections 70-638 and 70-639, a district may, without advertising or sealed
bidding, purchase replacement parts or services relating to such replacement
parts for any generating unit, transformer, or other transmission and
distribution equipment from the original manufacturer of such equipment upon
certification by an engineer or engineers that such manufacturer is the only
available source of supply for such replacement parts or services and that such
purchase is in compliance with standards established by the board. A written
statement containing such certification and a description of the resulting
purchase of replacement parts or services from the original manufacturer shall
be submitted to the board by the engineer or engineers certifying the purchase
for the board's approval. After such certification, but not necessarily before
the board review, notice of any such purchase shall be published once a week
for at least three consecutive weeks in one or more newspapers of general
circulation in the district and published in such additional newspapers or
trade or technical periodicals as may be selected by the board in order to give
proper notice of such purchase.
(7) Notwithstanding any other provision of subsection (2) of this section
or sections 70-638 and 70-639, a district may, without advertising or sealed
bidding, purchase used equipment and materials on a negotiated basis upon
certification by an engineer that such equipment is or such materials are in
compliance with standards established by the board. A written statement
containing such certification shall be submitted to the board by the engineer
for the board's approval.
Sec. 4. Original sections 13-824.01 and 13-824.02, Reissue Revised
Statutes of Nebraska, and section 70-637, Revised Statutes Cumulative
Supplement, 2024, are repealed.
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