The official site of the Nebraska Unicameral Legislature

LEGISLATIVE BILL 1114
Approved by the Governor April 16, 2026

Introduced by Urban Affairs Committee: McKinney, 11, Chairperson; Cavanaugh,
J., 9; Quick, 35; Rountree, 3.

A BILL FOR AN ACT relating to the property; to amend sections 10-127, 10-131,
10-133, 10-134, 10-615, 10-1103, 10-1203, 13-402, 13-503, 13-803, 13-2503,
13-3309, 18-2108, 18-2123, 18-2123.01, 18-2705, 31-741, 32-1302, 77-1842,
77-1858, 77-1901, 77-1914, 77-1915, 77-1916, and 77-1917.01, Reissue
Revised Statutes of Nebraska, sections 13-2202, 13-3304, 14-102, 18-2155,
31-735, 32-112.02, 32-404, 32-608, 32-1203, 71-1572, 77-15,169, and
77-3443, Revised Statutes Cumulative Supplement, 2024, and sections
13-518, 18-2102, 18-2103, 18-2147, 18-2709, 77-202, 77-1701, 77-1838,
77-1902, 77-1909, and 77-3442, Revised Statutes Supplement, 2025; to adopt
the Community Improvement District Act and the New Taxpayer Recruitment
Grant Act; to provide powers and duties relating to community improvement
districts and trustees of community improvement districts; to define and
redefine terms; to change provisions relating to the eligibility to create
inland port districts, increase the number of inland port districts that
may be created, and provide exemptions from taxation under the Municipal
Inland Port Authority Act; to provide powers to cities of the metropolitan
class to regulate housing authorities by ordinance; to change and
eliminate provisions relating to legislative findings, the acquisition of
real property, land outside the corporate limits of cities, the effective
date for the division of taxes, and certain redevelopment plans receiving
an expedited review under the Community Development Law; to authorize the
use of economic development programs for certain construction or
rehabilitation of housing under the Local Option Municipal Economic
Development Act; to change provisions relating to the election of the
board of trustees and contract bidding requirements for sanitary
improvement districts; to change provisions and provide duties for certain
housing agencies relating to pest control under the Nebraska Housing
Agency Act; to authorize community improvement districts to levy a
property tax as prescribed; to harmonize provisions; to provide operative
dates; to repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Sections 1 to 59 of this act shall be known and may be cited
as the Community Improvement District Act.
Sec. 2. For purposes of the Community Improvement District Act:
(1) Administrator means the person appointed by the city council of the
city or board of trustees of the village in which the community improvement
district is located pursuant to section 42 of this act to manage the affairs of
a community improvement district and to exercise the powers of the board of
trustees during the period of the appointment to the extent prescribed in the
Community Improvement District Act;
(2) Bond means an investment security under article 8, Uniform Commercial
Code, in the form of a long-term, written promise to pay a specified sum of
money, referred to as the face value or principal amount, at a specified
maturity date or dates in the future, plus periodic interest at a specified
rate;
(3) Capital outlay means expenditures for construction or reconstruction
of major permanent facilities having an expected long life, including, but not
limited to, public infrastructure improvements;
(4) Development means the original installation of any public improvements
to the standards of the city or village zoning standards;
(5) Operation and maintenance expenses means and includes, but is not
limited to, salaries, cost of materials and supplies for operation and
maintenance of the community improvement district's facilities, cost of
ordinary repairs, replacements, and alterations, cost of surety bonds and
insurance, cost of audits and other fees, and taxes;
(6) Public infrastructure means any publicly owned electric service lines
and conduits, gas service lines and conduits, sanitary sewer lines, sanitary
sewer system improvements, storm sewer lines, storm sewer system improvements,
flood control improvements, water lines, water system improvements, emergency
management warning system improvements, sidewalks, roads, streets, highways,
pedestrian walkways, skywalks, public spaces, public facilities, parks,
playgrounds, recreational facilities, offstreet motor vehicle parking
facilities, public waterways, docks, wharfs, rail lines, flood control systems,
flood control improvements, and related appurtenances, whether owned or to be
owned by the community improvement district or another political subdivision;
(7) Public waterways means artificially created boat channels dedicated to
public use and providing access to navigable rivers or streams;
(8) Redevelopment means the reconstruction, rehabilitation, or original
installation of public infrastructure as long as prior public infrastructure
has been installed in the community improvement district even if such
installation occurred prior to the formation of the community improvement
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district; and
(9) Warrant means an investment security under article 8, Uniform
Commercial Code, in the form of a short-term, interest-bearing order payable on
a specified date issued by the board of trustees or administrator of a
community improvement district to be paid from funds available or expected to
be received in the future, and includes, but is not limited to, property tax
collections, special assessment collections, and proceeds of sale of bonds.
Sec. 3. (1)(a) A majority of the owners, as determined in subsection (5)
of this section, having an interest in the real property within the limits of a
proposed community improvement district, situated wholly within a village or
city in this state at the time of approval pursuant to section 6 of this act,
may propose formation of a community improvement district for the purpose of
construction, installation, improvement, equipping, maintenance, and repair of
public infrastructure in or related to such community improvement district, and
contracting with the city or village in which the community improvement
district is located or other political subdivisions of this state for any
public purpose. The real property included within a community improvement
district may be contiguous or noncontiguous.
(b) Nothing in this section shall authorize community improvement
districts to purchase electric service and resell the same.
(c) For the purposes listed in this section, such majority of the owners
may make and sign articles of association in which shall be stated (i) the name
of the community improvement district, (ii) that the community improvement
district will have perpetual existence, (iii) the limits of the community
improvement district, (iv) the name and place of residence of each owner of the
land in the proposed community improvement district, (v) the description of the
several tracts of land situated in the community improvement district owned by
those who may organize the community improvement district, and (vi) the name
and the description of the real estate owned by any such owner who does not
join in the organization of the community improvement district but who will be
benefited thereby. Such owners of real estate as are unknown may also be set
out in the articles as such.
(d) No community improvement district may own or hold land in excess of
ten acres, unless such land so owned and held by such community improvement
district is actually used for a public purpose, as provided in this section,
within three years after its acquisition. Any community improvement district
which has acquired land in excess of ten acres in area and has not devoted the
same to a public purpose, as set forth in this section, within three years
after the date of its acquisition, shall devote the same to a use set forth in
this section or shall divest itself of such land. When a community improvement
district divests itself of land pursuant to this section, it shall do so by
sale at public auction to the highest bidder after notice of such sale has been
given by publication at least three times for three consecutive weeks prior to
the date of sale in a legal newspaper of general circulation within the area of
the community improvement district.
(2) The articles of association shall state:
(a) The proposed community improvement district proposes an aggregate
maximum permitted levy rate for all purposes in an amount not to
exceed ......... per $100 of taxable valuation in such community improvement
district, to be deposited and held in the funds of the community improvement
district and used for general corporate purposes, including payment of
principal of and interest on any outstanding bonds, warrants, and other
obligations of the community improvement district; and
(b) The owners of real estate so forming the community improvement
district for such purposes are willing and obligate themselves to pay the tax
or taxes which may be levied against all the property in the community
improvement district and special assessments against the real property
benefited which may be assessed against them to pay the expenses that may be
necessary for the purposes of the community improvement district as authorized
in subsection (1) of this section.
(3) The articles shall propose the names of five or more trustees who (a)
live in the purposed community improvement district, (b) are owners of real
estate located in the proposed community improvement district, or (c) are
designees of the owners if the real estate is owned by a limited partnership, a
general partnership, a limited liability company, a public, private, or
municipal corporation, an estate, or a trust. The five trustees approved
pursuant to section 6 of this act shall serve as a board of trustees until
their successors are elected and qualified if such community improvement
district is organized.
(4) After the articles are signed, the same shall be filed in the office
of the clerk of the city or village in which such community improvement
district shall be located together with a request that the city council of the
city or board of trustees of the village in which such articles of association
have been filed pass and approve an ordinance approving formation of such
community improvement district pursuant to the Community Improvement District
Act.
(5) For purposes of subsection (1) of this section, a majority of the
owners having an interest in the real property in a proposed community
improvement district is determined as follows:
(a) If the real property in a proposed community improvement district is
currently zoned commercial or industrial, a majority of the owners is
determined based on the number of acres owned in the proposed boundary of the
community improvement district;
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(b) If the real property in a proposed community improvement district is
currently zoned residential, a majority of the owners is determined based on
the majority of the number of residential lots or condominium units in the
proposed boundary of the community improvement district, regardless of lot
size;
(c) If the real property in a proposed community improvement district is
currently zoned agricultural, majority means all real property owners; and
(d) If the real property in a proposed community improvement district is a
combination of subdivisions (a) through (c) of this subsection, a majority of
the owners is determined giving equal weight to each acre and each residential
lot and must include all owners of agricultural land in the proposed boundary
of the community improvement district.
Sec. 4. (1) Immediately after the articles of association and request for
approval have been filed, as provided for by subsection (4) of section 3 of
this act, the clerk of the city or village where the articles are filed shall
schedule a hearing to be held within ninety days after the date of such filing
by the city council or village board of trustees regarding formation of the
proposed community improvement district and any objections to such formation.
(2) The city or village clerk shall publish a notice of association in a
newspaper of general circulation in the city or village and in the proposed
community improvement district in one publication at least sixty days prior to
the date of such hearing and in the four weekly publications of such newspaper
immediately preceding the date set for such hearing, which notice shall set
forth the following:
(a) That the articles of association have been filed in the office of the
city or village clerk and are available for inspection and the purpose thereof;
(b) The date and time of the hearing scheduled regarding formation of the
proposed community improvement district and any objections thereto and that any
written objections regarding such community improvement district shall be filed
with the city or village clerk at least seven calendar days prior to the date
of such hearing;
(c) A description of the real estate proposed to be included in the
community improvement district and that the owner or owners of such real estate
will be affected by formation of such community improvement district and
rendered liable to taxation and special assessment in accordance with law and
in addition to any other taxes or assessments of the city or village and other
existing taxing entities, for the purpose of construction, installation,
improvement, equipping, maintenance, and repair of public infrastructure in or
related to such community improvement district, and contracting with the city
or village in which the community improvement district is located or other
political subdivisions of this state for any public purpose;
(d) The names of the proposed trustees;
(e) The proposed aggregate maximum permitted levy rate for all purposes,
stated as an amount not to exceed ......... per $100 of taxable valuation in
such community improvement district, to be deposited and held in the funds of
the community improvement district and used for general corporate purposes,
including payment of principal of and interest on any outstanding bonds,
warrants, and other obligations of the community improvement district; and
(f) That application has been made to the city or village to declare to
the district a community improvement district pursuant to the Community
Improvement District Act.
(3) The city or village clerk shall mail a copy of such notice of
association to the several owners of real estate in the proposed community
improvement district who have not signed the articles of association. The
notice shall be sent via certified mail service to the last-known address of
each such owner no later than ten days after publishing the first notice of
association, with a return receipt requested showing to whom and where the
notice was delivered and the date of delivery.
Sec. 5. Any owner of real estate situated in the proposed community
improvement district who has not signed the articles of association and who may
object to the organization of the community improvement district or to any one
or more of the proposed trustees shall, at least seven calendar days prior to
the date of the hearing scheduled pursuant to subsection (1) of section 4 of
this act, file any such objection in writing with the city or village clerk
where the articles were filed, stating (1) why such community improvement
district should not be organized and declared a public corporation in this
state, (2) why the owner's real estate should not be embraced in the limits of
such community improvement district, and (3) any objections to the proposed
trustees.
Sec. 6. (1) The hearing with respect to such application and any
objections scheduled pursuant to subsection (1) of section 4 of this act shall
be held by the city council or village board of trustees on the date and time
provided in the notice of association. At the conclusion of such hearing,
subject to subsections (2) and (3) of this section, the city council or village
board of trustees may pass an ordinance which (a) specifies the property
included in the community improvement district, (b) names five trustees as the
board of trustees of such community improvement district to serve until their
successors are elected and qualified pursuant to the Community Improvement
District Act, (c) specifies the maximum levy rate for all purposes stated as an
amount not to exceed ......... per $100 of taxable valuation in such community
improvement district, to be deposited and held in the funds of the community
improvement district and used for general corporate purposes, including payment
of principal of and interest on any outstanding bonds, warrants, and other
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obligations of the community improvement district, and (d) declares the
community improvement district a duly formed political subdivision and
community improvement district pursuant to the Community Improvement District
Act. Such ordinance shall not be passed unless and until all property included
in such proposed community improvement district is within the corporate limits
of the city or village.
(2) If any objection to the formation of such community improvement
district is filed by a property owner within the community improvement district
who did not sign the articles of association, the application shall not be
approved by the city council or village board of trustees unless (a) the
boundaries are amended to remove the property owned by such objecting property
owner or (b) the city council or village board of trustees determines that
inclusion of such property within the community improvement district (i) is
necessary to the public health or welfare of the community improvement district
and the city or village, or (ii) is appropriate because such property will be
specially benefited by public infrastructure improvements expected to be made
by the community improvement district.
(3) In case of objection to any of the nominated trustees, the city
council or village board of trustees may identify and name other suitable
trustees to serve on the board of trustees of such community improvement
district who shall be (a) owners of real estate located in the community
improvement district or (b) designated to serve as representatives on the board
of trustees if the real estate is owned by a limited partnership, a general
partnership, a limited liability company, a public, private, or municipal
corporation, an estate, or a trust.
Sec. 7. A community improvement district shall be a body corporate and
politic by the name of Community Improvement District Number ........... of the
(city or village) of ........... and shall have the power and authority to take
and hold real and personal property necessary for its use, to levy property
taxes, to make contracts, to sue and be sued, and to exercise any and all other
powers, as a corporation, necessary to carry out the purposes of the Community
Improvement District Act.
Sec. 8. Within forty-five days after a community improvement district has
been declared a public corporation by the city council or village board of
trustees, the clerk of the community improvement district shall transmit to the
Secretary of State a certified copy of the record relating thereto, including a
copy of the articles of association, and the same shall be filed in the office
of the Secretary of State in the same manner as articles of incorporation are
required to be filed under the general law concerning corporations. A copy of
such record, including a copy of the articles of association and a plat of the
community improvement district, shall also be filed in the office of the county
clerk of the county in which the community improvement district, or any part
thereof, is situated.
Sec. 9. (1) Within thirty days after the city council or village board of
trustees has declared a community improvement district to be a public
corporation, the trustees appointed upon formation shall meet and elect one of
their number chairperson and one of their number clerk of the community
improvement district.
(2) Except as otherwise provided, the board of trustees shall:
(a) Keep a record of all of its proceedings which shall be open to
inspection by all owners of real estate in the community improvement district;
(b) Have the power to pass all necessary resolutions, orders, rules, and
regulations for the necessary conduct of its business and to carry into effect
the objects for which the community improvement district was formed; and
(c) Have the authority to appoint, employ, and pay accountants, attorneys,
engineers, municipal advisors, underwriters, and such other professional or
clerical help as may be needed, who shall each be removable at the pleasure of
the board or administrator.
(3) Upon the appointment of an administrator for the community improvement
district pursuant to sections 42 to 51 of this act, the authority of the
trustees to exercise the powers granted in this section shall be suspended,
except that the board shall continue in existence and the administrator shall
periodically, but not less frequently than monthly, report to the board in
writing on all decisions and actions taken by the administrator in managing the
affairs of the community improvement district. The administrator shall, during
the period of his or her appointment, possess exclusive authority to exercise
the powers and duties conferred in the Community Improvement District Act.
Sec. 10. Within thirty days after the creation of a community improvement
district, the clerk of the community improvement district shall file with the
register of deeds, county clerk, and election commissioner, of each county or
counties in which the community improvement district is located, a statement
containing the following information: (1) The community improvement district
number; (2) the outer boundaries of the community improvement district; (3)
that the community improvement district has the power to levy a property tax
and indicate the rate approved pursuant to section 6 of this act to pay its
debt and its expenses of operation and maintenance; (4) that the community
improvement district may levy special assessments on property in the community
improvement district to the full extent of special benefits arising by reason
of development improvements installed by the community improvement district;
(5) that the annual budget of the community improvement district is filed with
the Auditor of Public Accounts, which budget shows the anticipated revenue and
expenses, tax levy, and indebtedness of the community improvement district; (6)
that the actual current tax levy amount of the community improvement district
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may be obtained from each county in which the community improvement district is
located; and (7) that a copy of the annual financial audit of the community
improvement district is on file with the clerk of the community improvement
district and the Auditor of Public Accounts. Such statement shall be
supplemented and refiled to indicate any land added to or removed from the
community improvement district after the original filing.
Sec. 11. The chairperson and clerk or administrator of any community
improvement district shall, upon assuming his or her respective office, execute
and file with the city or village clerk of the city or village in which such
community improvement district is located, a bond, with one or more sureties,
to be approved by the city or village clerk, running to the State of Nebraska
in the penal sum of five thousand dollars for the chairperson, twenty thousand
dollars for the clerk, and twenty thousand dollars for the administrator,
conditioned for the faithful performance of their official duties and the
faithful accounting by them for all funds and property of the community
improvement district that shall come into their possession or control during
their term of office. The premium, if any, on any such bond shall be paid out
of the funds of the community improvement district. Suit may be brought on such
bonds by any person, firm, or corporation that has sustained loss or damage in
consequence of the breach thereof.
Sec. 12. (1) Except as provided in subsection (5) of section 84-1411, the
clerk or administrator of each community improvement district shall notify the
city or village where such district is located of all meetings of the community
improvement district board of trustees or called by the administrator by
sending a notice of such meeting to the clerk of the city or village not less
than seven days prior to the date set for any meeting. In the case of meetings
called by the administrator, notice shall be provided to the clerk of the
community improvement district not less than seven days prior to the date set
for any meeting.
(2) Except as provided in subsection (5) of section 84-1411, within the
timeframe required by subsection (3) of section 84-1413, after any meeting of a
community improvement district board of trustees or called by the
administrator, the clerk or administrator of the community improvement district
shall transmit to the city or village where the community improvement district
is located a copy of the minutes of such meeting.
Sec. 13. (1)(a) On or before December 31 of each year, the clerk of each
community improvement district shall file with the register of deeds or the
clerk of the city or village in which the community improvement district is
located a statement updated each December 31 containing the following
information:
(i) The names of the members of the current board of trustees of the
community improvement district;
(ii) The names of the following if applicable: Current attorney,
accountant, engineer, underwriter, and municipal advisor of the community
improvement district;
(iii) The warrant and the bond principal indebtedness of the community
improvement district as of the preceding June 30. Such statement shall contain
an acknowledgment that the warrant and indebtedness are reflective of such
date; and
(iv) The current tax levy of the community improvement district, as
described in section 21 of this act, as of December 31.
(b) For any late filing of the statement, the community improvement
district shall be assessed a late fee of ten dollars per day by the register of
deeds or the clerk of the city or village, not to exceed a total of three
hundred dollars for each late filing.
(2) The real estate broker or salesperson or, if none, the owner of the
real estate shall distribute the most recent statement filed in accordance with
this section to any prospective purchaser of any real estate located within a
community improvement district.
(3) The real estate broker or salesperson or, if none, the owner shall
obtain an acknowledgment from any purchaser of any real estate located within a
community improvement district that the purchaser understands the property is
located within a community improvement district. Such acknowledgment may be
obtained separately from the disclosure required under section 76-2,120.
(4) The statement shall be distributed and the acknowledgment obtained on
or before the date on which the purchaser becomes obligated to purchase such
real estate. The exclusive remedy for failure to provide such statements and
obtain such acknowledgments shall be an action for damages, and any such
failure shall not affect title to the real estate or the validity of the
conveyance.
Sec. 14. (1)(a) On the first Tuesday after the second Monday in September
which is at least fifteen months after the city council or village board of
trustees passes the ordinance creating a community improvement district and on
the first Tuesday after the second Monday in September each two years
thereafter, the board of trustees shall cause a special election to be held, at
which election a board of trustees shall be elected. The board of trustees
shall have five members except as provided in subsection (2) of this section.
Each member elected to the board of trustees shall be elected to a term of two
years and shall hold office until such member's successor is elected and
qualified. Any person desiring to file for the office of trustee may file for
such office with the election commissioner or county clerk of the county in
which the greater proportion in area of the community improvement district is
located not later than fifty days before the election. If such person will
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serve on the board of trustees as a designated representative of a limited
partnership, general partnership, limited liability company, public, private,
or municipal corporation, estate, or trust which owns real estate in the
community improvement district, the filing shall indicate that fact and shall
include appropriate documentation evidencing such fact. No filing fee shall be
required. A person filing for the office of trustee to be elected at the
election held six years after the first election of trustees and each election
thereafter shall designate whether such person is a candidate for election by
the resident owners of such community improvement district or a candidate for
election by all of the owners of real estate located in the community
improvement district. If a person filing for the office of trustee is a
designated representative of a limited partnership, a general partnership, a
limited liability company, a public, private, or municipal corporation, an
estate, or a trust which owns real estate in the community improvement
district, the name of such entity shall accompany the name of the candidate on
the ballot in the following form: (Name of candidate) to represent (name of
entity) as a member of the board. The name of each candidate shall appear on
only one ballot.
(b) The name of a person may be written in and voted for as a candidate
for the office of trustee, and such write-in candidate may be elected to the
office of trustee. A write-in candidate for the office of trustee who will
serve as a designated representative of a limited partnership, a general
partnership, a limited liability company, a public, private, or municipal
corporation, an estate, or a trust which owns real estate in the community
improvement district shall not be elected to the office of trustee unless (i)
each vote is accompanied by the name of the entity which the candidate will
represent and (ii) within ten days after the date of the election the candidate
provides the election commissioner or county clerk with appropriate
documentation evidencing the candidate's representation of the entity. Votes
cast which do not carry such accompanying designation shall not be counted.
(c) A trustee shall be an owner of real estate located in the community
improvement district or shall be a person designated to serve as a
representative on the board of trustees if the real estate is owned by a
limited partnership, a general partnership, a limited liability company, a
public, private, or municipal corporation, an estate, or a trust. Notice of the
date of the election shall be mailed by the clerk of the community improvement
district not later than sixty-five days prior to the election to each person
who is entitled to vote at the election for trustees whose property ownership
or lease giving a right to vote is of record on the records of the register of
deeds as of a date designated by the election commissioner or county clerk,
which date shall be not more than eighty days prior to the election.
(2)(a) For any community improvement district, a person whose ownership or
right to vote becomes of record or is received after the date specified
pursuant to subsection (1) of this section may vote when such person
establishes the right to vote to the satisfaction of the election board
appointed pursuant to section 15 of this act. At the first election and at the
election held two years after the first election, any person may cast one vote
for each trustee for each acre of unplatted land or fraction thereof and one
vote for each platted lot which such person may own in the community
improvement district.
(b) This subdivision applies to a community improvement district until the
board of trustees amends its articles of association pursuant to subdivision
(2)(d) of this section. At the election held six years after the first election
of trustees, two members of the board of trustees shall be elected by the legal
property owners resident within such community improvement district and three
members shall be elected by all of the owners of real estate located in the
community improvement district pursuant to this section. Every resident
property owner may cast one vote for a candidate for each office of trustee to
be filled by election of resident property owners only. Such resident property
owners may also each cast one vote for each acre of unplatted land or fraction
thereof and for each platted lot owned within the community improvement
district for a candidate for each office of trustee to be filled by election of
all property owners. For each office of trustee to be filled by election of all
property owners of the community improvement district, every legal property
owner not resident within such community improvement district may cast one vote
for each acre of unplatted land or fraction thereof and one vote for each
platted lot which such legal property owner owns in the community improvement
district. At the election held eight years after the first election of trustees
and at each election thereafter, three members of the board of trustees shall
be elected by the legal property owners resident within such community
improvement district and two members shall be elected by all of the owners of
real estate located in the community improvement district pursuant to this
section. If there are not any legal property owners resident within such
community improvement district or if not less than ninety percent of the area
of the community improvement district is owned for other than residential uses,
the five members shall be elected by the legal property owners of all property
within such community improvement district as provided in this section.
(c) Any public, private, or municipal corporation owning any land or lot
in the community improvement district may vote at an election the same as an
individual. If more than fifty percent of the homes in any community
improvement district are used as a second, seasonal, or recreational residence,
the owners of such property shall be considered legal property owners resident
within such community improvement district for purposes of electing trustees.
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For purposes of voting for trustees, each condominium apartment under a
condominium property regime established under the Nebraska Condominium Act
shall be deemed to be a platted lot and the lessee or the owner of the lessee's
interest, under any lease for an initial term of not less than twenty years
which requires the lessee to pay taxes and special assessments levied on the
leased property, shall be deemed to be the owner of the property so leased and
entitled to cast the vote of such property. When ownership of a platted lot or
unplatted land is held jointly by two or more persons, whether as joint
tenants, tenants in common, limited partners, members of a limited liability
company, or any other form of joint ownership, only one person shall be
entitled to cast the vote of such property. The executor, administrator,
guardian, or trustee of any person or estate interested shall have the right to
vote. No corporation, estate, or irrevocable trust shall be deemed to be a
resident owner for purposes of voting for trustees. Should two or more persons
or officials claim the right to vote on the same tract, the election board
appointed pursuant to section 15 of this act shall determine the party entitled
to vote.
(d) For any community improvement district which has been in existence for
at least ten years, which has less than seventy property owners entitled to
vote for trustees, which has at least two resident property owners, and in
which less than ten percent of the area of the community improvement district
is owned for other than residential uses, the board of trustees may amend its
articles of association as provided in section 23 of this act to provide for a
reduction in the number of trustees on the board from five members to three
members to be effective at the beginning of the term of office for the board of
trustees elected at the next election. At the next election and at each
election thereafter, two members of the board of trustees shall be elected by
the legal property owners resident within such community improvement district
and one member shall be elected by all of the owners of real estate located in
the community improvement district pursuant to this section. Every resident
property owner may cast one vote for a candidate for each office of trustee to
be filled by election of resident property owners only. Such resident property
owners may also each cast one vote for each acre of unplatted land or fraction
thereof and for each platted lot owned within the community improvement
district for a candidate for the office of trustee to be filled by election of
all property owners. For the office of trustee to be filled by election of all
property owners of the community improvement district, every legal property
owner not resident within such community improvement district may cast one vote
for each acre of unplatted land or fraction thereof and one vote for each
platted lot which such legal property owner owns in the community improvement
district.
(3) The election commissioner or county clerk shall hold any election
required by subsection (1) of this section by sealed mail ballot by notifying
the board of trustees on or before July 1 of a given year. The election
commissioner or county clerk shall, at least twenty days prior to the election,
mail a ballot and return envelope to each person who is entitled to vote at the
election and whose property ownership or lease giving a right to vote is of
record with the register of deeds as of the date designated by the election
commissioner or county clerk, which date shall not be more than eighty days
prior to the election. The ballot and return envelope shall include: (a) The
names and addresses of the candidates; (b) room for write-in candidates; and
(c) instructions on how to vote and return the ballot. Such ballots shall be
returned in the return envelope to the election commissioner or county clerk no
later than 5 p.m. on the date set for the election. If the ballot is not
returned in the return envelope, such ballot shall not be counted. If more than
one ballot is included in the same return envelope, such ballots shall not be
counted and shall be reinserted into the return envelope which shall be
resealed and marked rejected.
Sec. 15. (1)(a) At any election held to elect trustees of a community
improvement district, the ballots shall be received, counted, and canvassed by
an election board of two or more persons appointed by the election commissioner
or county clerk.
(b) Such board shall select one of their number as chairperson and one of
their number as clerk. In case of a vacancy on such board, a new member shall
be appointed pursuant to subdivision (a) of this subsection.
(2) For any community improvement district, the election commissioner or
county clerk shall certify the results of the election to the community
improvement district.
(3) If an election is contested involving a community improvement district
board of trustees, the Election Act shall apply.
Sec. 16. Not later than June first of each year, the election
commissioner or county clerk shall determine which community improvement
districts in the county are required to hold elections in such year and shall
so notify the clerk of each such community improvement district on or before
July first of such year. The entire costs of conducting the election shall be
borne by the community improvement district holding the election, and such
costs shall include all expenses such as procuring a list of the property
owners of record in each such community improvement district, printing and
mailing notices of the elections to such property owners, printing, preparing,
and mailing ballots, paying compensation and mileage for the election boards
conducting such elections, and also indirect expenses, such as the pro rata
amount of any additional clerical expense or other miscellaneous expenses to be
incurred by the election commissioner or county clerk in conducting all of such
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elections to be held in such calendar year. Within sixty days after the
elections have been held, each community improvement district shall be charged
and billed for all of the actual expenses incurred by the election commissioner
or county clerk attributable to such community improvement district. Payment of
the total amount billed to the community improvement district shall be in
currency and made by the attorney for the community improvement district to the
election commissioner or county clerk within sixty days after receipt of such
billing.
Sec. 17. Notwithstanding the appointment of an administrator for any
community improvement district pursuant to sections 42 to 51 of this act,
special elections shall be held for the election of members of the board of
trustees for such community improvement district in the same manner and at the
same time as such elections would be held under sections 14 and 15 of this act.
In a community improvement district for which such an administrator has been
appointed when the board of trustees of such community improvement district is
not functioning, the administrator shall cause a special election of trustees
to be held within sixty days after the issuance of a certificate of appointment
of such administrator, at which election a board of trustees shall be elected
to a term of office which shall expire on the first Tuesday of the second
September following the appointment of such administrator. The board of
trustees shall have five members unless the board has amended its articles of
association to decrease the number of trustees on the board to three members
pursuant to subdivision (2)(d) of section 14 of this act.
Sec. 18. A community improvement district may acquire by purchase,
condemnation, or otherwise, real or personal property, right-of-way, and
privilege, within or without its corporate limits, necessary for its corporate
purposes. Such acquisition by the community improvement district may be
effected only after approval by the city or village having zoning jurisdiction
over such property. The approval of plans and specifications for the public
improvement or project, or the approval of plans and exact costs for public
parks, playgrounds, and recreational facilities, as required by section 22 of
this act, shall be deemed to be approval for the acquisition by the community
improvement district of such fee title, easements, or other interests in such
property as may be required for the public improvement or project.
Sec. 19. Subject to the limitations related to state property set out in
subsection (2) of section 20 of this act, whenever the board of trustees or
administrator of any community improvement district shall by order determine to
make any public improvement under the provisions of the Community Improvement
District Act which shall require that private property be taken or damaged, the
community improvement district may exercise the power of eminent domain. The
procedure to condemn property shall be exercised in the manner set forth in
sections 76-704 to 76-724. Such taking by the community improvement district
may be effected only after approval by the city or village having any zoning
jurisdiction over such property.
Sec. 20. (1) Whenever it shall be necessary, in making any improvement
under the provisions of the Community Improvement District Act, to enter upon
or cross any state or public lands, the community improvement district shall
have the right to acquire a right-of-way across the same by the exercise of the
power of eminent domain.
(2) The power of eminent domain provided under the Community Improvement
District Act does not extend to the following:
(a) The facilities, assets, or services of a jurisdictional utility as
defined in section 66-1802; and
(b) The condemnation of property rights of a state highway or state-owned
property or facility. Any proposed changes in a community improvement district
to a state highway or state-owned property shall not be the responsibility of
the state and shall be paid for by the developer or the city or village. The
board of trustees or administrator of the community improvement district shall
coordinate with the Department of Transportation for highways, or the
applicable state agency for other state-owned property, concerning the proposed
revisions to these properties in the community improvement district, and all
concerns raised by the state shall be resolved or addressed by the board of
trustees or administrator of the community improvement district in a manner
acceptable to the state.
Sec. 21. (1) The community improvement district shall have the power to
annually levy a tax on the taxable value of the taxable property in the
community improvement district at an aggregate rate not to exceed the levy rate
specified in the articles of organization and approved by ordinance of the city
or village pursuant to section 6 of this act, the proceeds of which shall be
deposited to and held in the general fund, bond fund, or other fund or account
established as determined by the board of trustees of such community
improvement district, and used for payment of bonds and warrants, and other
general corporate purposes of the community improvement district as permitted
by the Community Improvement District Act.
(2) The county treasurer of the county in which the greater portion of the
area of the community improvement district is located shall be ex officio
treasurer of the community improvement district and shall be responsible for
all funds of the community improvement district coming into his or her hands.
As treasurer of the community improvement district he or she shall (a)
establish such funds and accounts on behalf of the community improvement
district as he or she determines necessary or appropriate at the direction of
the board of trustees of the community improvement district and (b) collect all
taxes and special assessments levied by the community improvement district and
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deposit the same in the appropriate funds and accounts of the community
improvement district for the payment of principal and interest on any bonds,
warrants, and other obligations outstanding and for general corporate purposes
of the community improvement district, all in accordance with action of the
board of trustees of the community improvement district.
(3) The treasurer of the community improvement district shall not be
responsible for funds of the community improvement district until they are
received by him or her. The treasurer of the community improvement district
shall disburse the funds of the community improvement district upon the
direction of the trustees or the administrator and signed by the chairperson
and clerk of the community improvement district or the administrator, including
issuance of warrants and other action of the board of trustees.
Sec. 22. (1) The board of trustees or the administrator of any community
improvement district organized under the Community Improvement District Act
shall have power to:
(a) Construct, install, improve, equip, maintain, and repair public
infrastructure in or related to such community improvement district; and
(b) Contract with the city or village or other political subdivision in
which such community improvement district is located for any public purpose of
such community improvement district, city or village, or other political
subdivision.
(2) Prior to the installation of any of the public infrastructure or
entering into a contract for any capital improvement with another political
subdivision, the plans or contracts for such improvements or services and
estimated costs shall be approved by the city or village in which the community
improvement district is located. The community improvement district shall
obtain approval of such plans for such improvements, and any changes thereto,
from the city or village in which the community improvement district is
located, and such city or village shall enforce compliance with such plans by
action in equity.
(3)(a) Each community improvement district shall have the books of account
kept by the board of trustees of the community improvement district examined
and audited by a certified public accountant or a public accountant for the
year ending June 30 and shall file a copy of the audit with the office of the
Auditor of Public Accounts by December 31 of the same year. Such audits may be
waived by the Auditor of Public Accounts upon proper showing by the community
improvement district that the audit is unnecessary. Such examination and audit
shall show the following:
(i) The gross income of the community improvement district from all
sources for the previous year;
(ii) The amount expended each year for (A) maintenance and repairs, (B)
new equipment, (C) new construction work, and (D) property purchased;
(iii) A detailed statement of all items of expense;
(iv) The total amount of taxes levied upon the property within the
community improvement district; and
(v) All other facts necessary to give an accurate and comprehensive view
of the cost of carrying on the activities and work of such community
improvement district.
(b) The reports of all audits provided for in this subsection shall be and
remain a part of the public records in the office of the Auditor of Public
Accounts. The expense of such audits shall be paid out of the funds of the
community improvement district. The Auditor of Public Accounts shall be given
access to all books and papers, contracts, minutes, bonds, and other documents
and memoranda of every kind and character of such community improvement
district and be furnished all additional information possessed by any present
or past officer or employee of any such community improvement district, or by
any other person, that is essential to the making of a comprehensive and
correct audit.
(4) If any community improvement district fails or refuses to cause such
annual audit to be made of all of its functions, activities, and transactions
for the fiscal year within a period of six months following the close of such
fiscal year, unless such audit has been waived, the Auditor of Public Accounts
may, after due notice and a hearing to show cause by such community improvement
district, conduct an audit of the community improvement district pursuant to
section 84-304 or assess the community improvement district a fee pursuant to
subsection (2) of section 84-304.01.
(5) Whenever the sanitary sewer system or any part thereof of a community
improvement district is directly or indirectly connected to the sewerage system
of any city or village, such city or village, without enacting an ordinance or
adopting any resolution for such purpose, may collect such city's or village's
applicable rental or use charge from the users in the community improvement
district and from the owners of the property served within the community
improvement district. The charges of such city or village shall be charged to
each property served by the city or village sewerage system, shall be a lien
upon the property served, and may be collected from the owner or the person,
firm, or corporation using the service. If the city's or village's applicable
rental or service charge is not paid when due, such sum may be recovered by the
city or village in a civil action or it may be assessed against the premises
served as a special assessment and may be assessed by such city or village and
collected and returned in the same manner as other municipal special
assessments are enforced and collected. When any such assessment is levied, it
shall be the duty of the city or village clerk to deliver a certified copy of
the ordinance to the county treasurer of the county in which the premises
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assessed are located and such county treasurer shall collect the assessment as
provided by law and return the assessment to the city or village treasurer.
Funds of such city or village raised from such charges shall be used by it in
accordance with laws applicable to its sewer service rental or charges. The
governing body of any city or village may make all necessary rules and
regulations governing the direct or indirect use of its sewerage system by any
user and premises within any community improvement district and may establish
just and equitable rates or charges to be paid to such city or village for use
of any of its disposal plants and sewerage system. The board of trustees may,
in connection with the issuance of any warrants or bonds of the community
improvement district, agree to make a specified minimum levy on taxable
property in the community improvement district to pay, or to provide a sinking
fund to pay, principal and interest on warrants and bonds of the community
improvement district for such number of years as the board may establish at the
time of making such agreement and may agree to enforce, by foreclosure or
otherwise as permitted by applicable laws, the collection of special
assessments levied by the community improvement district. Such agreements may
contain provisions granting to creditors and others the right to enforce and
carry out the agreements on behalf of the community improvement district and
its creditors.
(6) The board of trustees or administrator shall have power to sell and
convey real and personal property of the community improvement district on such
terms as it or he or she shall determine, except that real estate shall be sold
to the highest bidder at public auction after notice of the time and place of
the sale has been published for three consecutive weeks prior to the sale in a
newspaper of general circulation in the city or village. The board of trustees
or administrator may reject such bids and negotiate a sale at a price higher
than the highest bid at the public auction at such terms as may be agreed.
(7) A community improvement district shall be subject to all regulatory
authority, zoning jurisdiction, and other jurisdictional provision of the city
or village in which such community improvement district is located. Each
community improvement district shall have and the board of trustees may
exercise, subject to the regulatory jurisdiction and permitting authority of
such city or village and all other applicable governing bodies and agencies
having authority with respect to any area included in the community improvement
district, the powers relating to public infrastructure and other improvements
provided in this section and authorized by the Community Improvement District
Act.
Sec. 23. Whenever a majority of the board of trustees shall deem it
advisable to amend the articles of association of the community improvement
district to change the maximum permitted levy rate, and after a proposed
amendment to the articles of association has been signed by a majority of the
owners having an interest in the real property within the limits of the
community improvement district, the community improvement district clerk shall
file an application for such amendment with the city or village clerk with a
request that the maximum permitted levy rate be changed, all in the same manner
as approval of the initial articles of association pursuant to the Community
Improvement District Act. The city or village clerk shall process any such
request in the same manner as an initial application for approval of articles
of association, shall schedule a hearing, publish notices, and mail notices to
any owner of property in the community improvement district who did not sign
the proposed amendment, and such city council or village board of trustees may
approve the proposed amendment by ordinance in a similar manner to the initial
articles of association as provided in section 6 of this act.
Sec. 24. All contracts for construction work to be done or materials or
equipment purchased, the expense of which is more than fifty thousand dollars,
shall be let to the lowest responsible bidder, upon notice of not less than
twenty days, of the terms and conditions of the contract to be let. The board
of trustees or the administrator shall have the power to reject any and all
bids and readvertise for the letting of such work or to negotiate any contract
after an unsuccessful public letting.
Sec. 25. (1) Whenever the board of trustees or the administrator deems it
advisable or necessary to build, reconstruct, purchase, or otherwise acquire
public infrastructure improvements or to incur other costs permitted by the
Community Improvement District Act, the board of trustees shall declare the
advisability and necessity therefor in a proposed resolution.
(2) Such proposed resolution of necessity shall refer to the plans and
specifications for the proposed improvements, proposed agreements or contracts,
together with the estimated cost thereof which have been made and filed with
the community improvement district clerk before the publication of such
resolution. The proposed resolution shall state the amount of such estimated
cost.
(3) Except as provided in subsection (4) of this section, the board of
trustees or the administrator may assess, to the extent of special benefits,
the cost of such improvements upon properties specially benefited thereby. The
resolution shall state the outer boundaries of the area within the community
improvement district in which it is proposed to make special assessments.
(4) Notwithstanding anything to the contrary in the Community Improvement
District Act, a community improvement district shall not specially assess the
cost of public infrastructure for redevelopment unless and until such community
improvement district has obtained prior approval by resolution of the city
council or village board of trustees.
Sec. 26. (1) Notice of the time and place, which place shall be in the
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city or village where the community improvement district is organized, when any
resolution proposed under section 25 of this act shall be set for consideration
before the board of trustees or the administrator, shall be given the same day
each week two consecutive weeks in a newspaper of general circulation published
in the city or village where the community improvement district was organized,
which publication shall contain the entire wording of the proposed resolution.
The last publication shall not be less than five days nor more than two weeks
prior to the time set for hearing on objections to the adoption of any such
proposed resolution, at which hearing the owners of the property which might
become subject to assessment for the contemplated improvement may appear and
make objections to the proposed improvement. Thereupon the resolution may be
amended and adopted or adopted as proposed.
(2) If a petition opposing the proposed resolution, signed by property
owners representing a majority of the front footage which may become subject to
assessment for the cost of any improvements as set forth by the proposed
resolution, is filed with the clerk of the community improvement district
within three days before the date of the meeting for the hearing on such
proposed resolution, such proposed resolution shall not be adopted.
Sec. 27. Upon compliance with sections 25 and 26 of this act, the board
of trustees or the administrator may by resolution order the contracting,
making, reconstruction, purchase, or otherwise acquiring of any of the
improvements provided for in the Community Improvement District Act.
Sec. 28. After ordering any such improvements, other than payment of
contracts to other political subdivisions, as provided in the Community
Improvement District Act, the board of trustees or the administrator may enter
into a contract for the construction of such improvement in one or more
contracts, but no work shall be done or contract let until notice to
contractors has been published in a legal newspaper of general circulation in
the city or village where the community improvement district is organized. The
notice shall be published the same day each week two consecutive weeks in such
newspaper and shall generally state (1) the extent of the work, (2) the kinds
of material to be bid upon, including in such notice all kinds of material
mentioned in the resolution as provided in section 25 of this act, (3) the
amount of the engineer's estimate of the cost of such improvements, (4) the
time when bids will be received, and (5) the amount of the certified check or
bid bond required to accompany the bids. Each bid shall be accompanied in a
separate sealed envelope by a certified check or bid bond in an amount to be
named in the notice, which amount shall be not less than five percent of the
engineer's total estimate of the cost, and shall be made payable to the
treasurer of the community improvement district as security that the bidder to
whom the contract may be awarded will enter into a contract to build the
improvements in accordance with the notice to contractors and give bond in the
sum named in such notice for the construction of such improvements as the
notice required. Checks or bonds accompanying bids not accepted shall be
returned to the bidders. The work provided for in this section shall be done
under written contract with the lowest responsible bidder on the material
selected after the bids are opened and in accordance with the requirements of
the plans and specifications. The board of trustees or the administrator may
reject any or all bids received and advertise for new bids in accordance with
this section.
Sec. 29. If the contractor has furnished the community improvement
district all required records and reports, the community improvement district
shall pay the contractor interest at the rate specified in section 39-1349, as
such rate may from time to time be adjusted by the Legislature, on any contract
amount retained and the final payment due the contractor beginning twenty days
after completion of the work covered by the contract under section 28 of this
act. The contractor shall notify the community improvement district in writing
that the work has been completed and the community improvement district, within
twenty days after receipt of such notice, shall give written notice to the
contractor of any objections by the community improvement district to
acceptance of the work.
Sec. 30. (1) After the completion of any work or purchase, the engineer
shall file with the clerk of the community improvement district, and the clerk
of the city or village, a certificate of acceptance. Such work or purchase
shall be considered accepted only after approval by the city or village, and
then by the board of trustees or the administrator by resolution.
(2) Upon approval of the certificate of acceptance, if the board of
trustees determines special assessments are to be levied, the board of trustees
or administrator shall require the engineer to make a complete statement of all
the costs of any such improvements, a plat of the property in the community
improvement district, and a schedule of the amount proposed to be assessed
against each separate piece of property in such community improvement district.
The statement, plat, and schedule shall be filed with the clerk of the
community improvement district within sixty days after the date of acceptance.
(3) The board of trustees or administrator shall set a time and place for
a hearing on the proposed assessments as provided in subsection (6) of this
section, then order the clerk of the community improvement district to give
notice of such hearing and that such statement, plat, and schedules are on file
in his or her office and that all objections thereto or to prior proceedings on
account of errors, irregularities, or inequalities not made in writing and
filed with the clerk of the community improvement district within twenty days
after the first publication of such notice shall be deemed to have been waived.
Such notice shall be given by publication the same day each week two
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consecutive weeks in a newspaper of general circulation published in the city
or village where the community improvement district was organized. Such notice
shall state the time and place where any objections, filed as provided in this
section, shall be considered by the board of trustees or administrator.
(4) The cost of such improvements in the community improvement district
shall be levied as special assessments to the extent of special benefits to the
property. The complete statement of costs and the schedule of proposed special
assessments for such improvements shall be given to the city or village where
such community improvement district is located within seven days after the
first publication of notice of statement, plat, and schedules. The city or
village shall have the right to be heard, and shall have the right of appeal
from a final determination by the board of trustees or administrator against
objections which such city or village has filed.
(5) Notice of the proposed special assessments for such improvements
against each separate piece of property shall be given to each owner of record
thereof within five days after the first publication of notice of statement,
plat, and schedules and, within five days after the first publication of such
notice, a copy thereof, along with statements of costs and schedules of
proposed special assessments, shall be given to each person or company who,
pursuant to written contract with the community improvement district, has acted
as underwriter or municipal advisor for the community improvement district in
connection with the sale or placement of warrants or bonds issued by the
community improvement district. Each owner shall have the right to be heard and
shall have the right of appeal from the final determination made by the board
of trustees or administrator.
(6) The hearing on the proposed assessment shall be held by the board of
trustees or the administrator sitting as a board of adjustment and equalization
at the time and place specified in such notice and not less than twenty days
nor more than thirty days after the date of the first publication, unless such
session be adjourned, with provisions for proper notice of such adjournment. At
such meeting, the proposed assessments shall be adjusted and equalized with
reference to benefits resulting from the improvement and shall not exceed such
benefits.
Sec. 31. Any person or any city or village aggrieved may appeal to the
district court by filing a petition within twenty days after the final
determination under section 30 of this act. The court shall hear and determine
the appeal in a summary manner as in equity, without a jury, and shall increase
or reduce the special assessments as necessary to ensure that the special
assessments are in the full amount of the special benefits and that the
apportionment of benefits is equitable.
Sec. 32. (1) After the equalization of such special assessments as
required by the Community Improvement District Act, such special assessments
shall be levied by the board of trustees or the administrator upon all lots or
parcels of ground within the community improvement district which are benefited
by reason of such improvement, such levy to be made within six months after
acceptance of the improvement by the board of trustees or the administrator.
Failure to levy assessments within such six-month period shall not invalidate
assessments made after the six-month period. Such special assessments may be
relevied, if for any reason the levy thereof is void or not enforceable. Such
levy shall be enforced as other special assessments and any payments thereof
under previous levies shall be credited to the person or property making the
same. Not less than eleven and not more than twenty days after the levying of
any special assessment, the clerk of the community improvement district shall
certify such levy to the county treasurer and county clerk of the county.
(2) If a notice of appeal from such levy has been filed with the clerk of
the community improvement district, he or she shall note on the certificate of
levy that an appeal has been commenced and that the amounts of the assessments
are subject to redetermination pursuant to the appeal. All receipts given by
the county treasurer for special assessments as to which an appeal is pending
shall show thereon that the special assessment amount is subject to
redetermination by the appeal. Upon termination of any appeal, the clerk of the
community improvement district shall so certify to the county clerk and county
treasurer. All assessments made for such purposes shall be collected in the
same manner as general taxes and shall be subject to the same penalties or may
be collected pursuant to section 77-1917.01.
Sec. 33. (1) The board of trustees or the administrator shall not cause
the following property to be assessed for any of the improvements provided for
in the Community Improvement District Act: (a) Property by law not assessable,
(b) property not included within the area defined in the preliminary
resolution, and (c) property not benefited.
(2) The exemption in subsection (1) of this section does not apply if the
exempt property has been specially benefited by the improvements. In such
cases, the owner of such property shall pay the community improvement district
a sum equivalent to the amount the property has been specially benefited, which
amount may be recovered by the community improvement district in an action
against the property owner. If the parties do not agree as to the amount of the
special benefits, the amount may be determined by the district court in an
action brought by the community improvement district for such purpose.
(3) The board of trustees or the administrator may find that any part or
all of such improvements made are of general benefit to the community
improvement district, and the board or administrator may levy special
assessments on all lots, parcels, or pieces of real estate specially benefited
to the extent of the special benefits to such property. The cost of such
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improvements shall be paid from the assessments levied against all the property
in the community improvement district, in the manner provided by section 36 of
this act, or may be paid from unappropriated money in its general fund. The
cost of the improvements shall draw interest at the rate of six percent per
annum from the date of acceptance thereof by the board or administrator until
warrants are issued for, or payment is otherwise provided, in payment of the
contract price.
Sec. 34. All special assessments provided for in section 32 of this act
shall become due in fifty days after the date of the levy and may be paid
within that time without interest, but if not so paid they shall bear interest
thereafter on a per annum basis until delinquent at the greater of (1) the rate
of interest accruing on warrants registered against such community improvement
district sixty days prior to the actual levy of the special assessments or (2)
the average rate of interest accruing on the warrants issued to pay for the
improvements for which the special assessments are to be levied adjusted to the
next greater one-half percent. Such assessments shall become delinquent in
equal annual installments over such periods of years, not exceeding twenty, as
the board of trustees or the administrator may determine at the time of making
the levy. Delinquent installments shall bear interest at the rate of two
percent per annum above the rate set by the community improvement district on
such installments before delinquency, except that no such rate shall exceed the
rate specified in section 45-104.01, as such rate may from time to time be
adjusted by the Legislature. If three or more installments shall be delinquent,
the board of trustees or the administrator may declare all of the remaining
installments to be at once delinquent and such installments declared delinquent
shall bear interest at the rate specified in section 45-104.01, as such rate
may from time to time be adjusted by the Legislature, until paid and may be
collected the same as other delinquent installments may be collected.
Sec. 35. All special assessments provided by the Community Improvement
District Act and all connection charges collected shall, when levied,
constitute a sinking fund for the purpose of paying the cost of the
improvements provided for in the Community Improvement District Act with
allowable interest thereon and shall be solely and strictly applied to such
purpose to the extent required. Any excess thereof may be by the board or the
administrator, after fully discharging the purposes for which levied,
transferred to such other fund or funds as the board of trustees or the
administrator may deem advisable.
Sec. 36. (1) For the purpose of paying the cost of public infrastructure
improvements and other corporate purposes as provided for in the Community
Improvement District Act, the board of trustees or the administrator shall have
the power to issue negotiable bonds of any such community improvement district,
to be called community improvement district bonds, payable in not to exceed
thirty years, and payable from the maximum levy approved in the articles of
association of the community improvement district and other available funds.
Each issue of bonds shall mature or be subject to mandatory redemption so that
the first principal repayment is made not more than five years after the date
of issuance and so that at least twenty percent of the community improvement
district's bonds then outstanding shall be repaid within ten years after the
date of issuance. Such bonds shall bear interest payable annually or
semiannually. Such bonds may either be sold by the community improvement
district or delivered to the contractor in payment for the work but in either
case for not less than their par value. For the purpose of making partial
payments as the work progresses, warrants may be issued by the board of
trustees or the administrator upon certificates of the engineer in charge
showing the amount of work completed and materials necessarily purchased and
delivered for the orderly and proper continuation of the project, in a sum not
to exceed ninety-five percent of the cost thereof.
(2)(a) Warrants issued for capital outlays of the community improvement
district shall become due and payable not later than five years from the date
of issuance.
(b) A default on the bonds or warrants of a community improvement district
shall not constitute a debt or obligation of the city or village where such
community improvement district is located, the county, or the state.
(3) Warrants issued for operation and maintenance expenses of the
community improvement district shall be issued not later than sixty days
following the date upon which the community improvement district is in receipt
of a bill for the amount of operation or maintenance expenses owed, and such
warrants shall become due and payable not later than three years from the date
of issuance. If a warrant for operation or maintenance expenses is not issued
within such sixty-day period, the amount owed by the community improvement
district shall bear interest from the sixty-first day until the date upon which
the warrant is issued at a rate equivalent to one and one-half times the rate
specified in subsection (2) of section 45-104.02. The community improvement
district shall agree to pay annual or semiannual interest on all capital outlay
warrants issued by the community improvement district and shall issue warrants
to pay such interest or shall issue its warrants in return for cash to pay such
interest. Warrant interest not paid when due for lack of funds shall be
registered, bear interest, and be paid the same as is provided in section
10-209 for bond coupons.
(4) The community improvement district may, if determined appropriate by
the board of trustees or the administrator, pay fees to attorneys, municipal
advisors, underwriters, and other professionals in connection with the
placement and registration of ownership of warrants issued by the community
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improvement district.
(5) The board of trustees or the administrator may levy special
assessments on all lots, parcels, or pieces of real estate benefited by the
improvement to the extent of the benefits to such property. The special
assessments when collected shall be set aside and constitute a sinking fund for
the payment of the interest and principal of such bonds, warrants, and other
obligations of the community improvement district.
(6) In addition to the special assessments provided for in this section,
there shall be levied annually a tax upon the taxable value of all the taxable
property in such community improvement district which, together with such
sinking fund derived from special assessments, shall be sufficient to meet
payments of interest and principal on all bonds as such become due, subject to
the overall limit on the tax levy rate of such community improvement district
established upon formation of such community improvement district. Such tax
levy shall be known as the community improvement district bond tax levy and
shall be paid annually.
(7)(a) The board of trustees of any community improvement district may
provide for the publication of any resolution or other proceeding adopted by it
pursuant to the Community Improvement District Act in a newspaper of general
circulation published in the city or village where the community improvement
district is located. In the case of a resolution or other proceeding providing
for the issuance of bonds, warrants, or other obligations, pursuant to the
Community Improvement District Act, the board of trustees or clerk of such
community improvement district may, either before or after the adoption of such
resolution or resolutions or other proceeding, in lieu of publishing the entire
resolution or resolutions or other proceeding, publish a notice of intention to
issue bonds, warrants, or other obligations under the Community Improvement
District Act, titled to indicate such intention, containing:
(i) The name of the community improvement district;
(ii) The estimated principal amount of bonds, warrants, or other
obligations proposed to be issued and the timeframe when such issuance or
issuances are expected to occur;
(iii) The proposed or estimated principal maturity schedule or term for
such bonds, warrants, or other obligations;
(iv) The maximum rate of interest payable on any maturity of such bonds,
warrants, or other obligations; and
(v) The times and place where a copy of the form of resolution or other
proceeding providing for the issuance of the bonds, warrants, or other
obligations may be examined, which shall be located in the city or village
where the community improvement district is located or in the office of the
county clerk in the county where such community improvement district is
located, for a period of at least thirty days after the publication of such
notice. In the case of a notice regarding issuance of warrants, the notice may
include warrants expected to be approved by multiple future resolutions or
other proceedings and the form of resolution or other proceedings may be
general forms for such issuance.
(b) For a period of thirty days after such publication, any interested
person shall have the right to contest (i) the legality and validity of each
and all of the proceedings for the organization of such community improvement
district under the Community Improvement District Act, from and including the
petition for the organization of the community improvement district, and all
other proceedings which may affect the legality or validity of the bonds,
warrants, or other obligations and the order of the sale and the sale thereof,
(ii) any provisions made for the security and payment of such bonds, warrants,
or other obligations, or (iii) any contract of purchase, sale, or lease
relating to the issuance of such bonds, warrants, or other obligations. After
such time no one shall have any cause of action to contest the regularity,
formality, or legality thereof for any cause whatsoever.
Sec. 37. (1) The community improvement district may be enlarged and
additional territory annexed to the community improvement district. Initiation
of any such enlargement shall be by petition filed with the clerk of the
community improvement district, signed by persons owning not less than fifty
percent of the area to be annexed. Upon approval by the board of trustees of
such community improvement district, the clerk of the community improvement
district shall file (a) an application for such annexation with the city or
village clerk with a request that the annexation be approved, all in the same
manner as approval of the initial articles of association of such community
improvement district pursuant to the Community Improvement District Act and (b)
notify the county clerk, election commissioner, and register of deeds of each
county or counties in which the community improvement district is located of
the proposed annexation. The city or village clerk shall process any such
application in the same manner as an initial application for approval of the
articles of association for such community improvement district and shall
schedule a hearing, publish notices, and mail notices to any owner of property
in the area proposed to be annexed who did not sign the petition for
annexation. The city council or village board of trustees may approve the
proposed amendment by ordinance in a similar manner to the initial articles of
association as provided in the Community Improvement District Act.
(2) All property, from and after annexation to the community improvement
district as provided in subsection (1) of this section, shall be subject to all
taxes and other burdens thereafter levied by the community improvement
district, regardless of when the obligation for which the taxes or assessments
are levied was incurred.
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Sec. 38. (1) Whenever a majority of the board of trustees or the
administrator of any community improvement district organized under the
Community Improvement District Act desires that the community improvement
district shall be wholly dissolved, the trustees or administrator shall first
propose a resolution declaring the advisability of such dissolution and setting
out verbatim the terms and conditions thereof, and also setting out the time
and place when the board of trustees or administrator shall meet to consider
the adoption of such resolution. Notice of the time and place when the
resolution shall be set for consideration shall be delivered to the city or
village clerk and the county clerk, election commissioner, and register of
deeds of each county or counties in which the community improvement district is
located at least forty-five days prior to such date. Notice of the time and
place when the resolution shall be set for consideration shall be published the
same day each week for two consecutive weeks in a newspaper of general
circulation published in the city or village where the community improvement
district was organized, which publication shall contain the entire wording of
the proposed resolution. The trustees or administrator shall mail a copy of
such proposed resolution to any city or village in which any part of the
community improvement district is located within five days after the date of
first publication of the resolution. The last publication shall be not less
than five days nor more than two weeks prior to the time set for hearing on
objections to the passage of the resolution, at which hearing the owners of
property within the community improvement district, or any city or village in
which any part of the community improvement district is located, may appear and
make objections to the proposed resolution.
(2) If (a) a petition opposing the proposed resolution of dissolution is
signed by property owners representing a majority of the area of real estate
within the community improvement district or (b) a resolution is adopted by the
city council or village board of trustees opposing such dissolution and either
is presented to the board of trustees or the administrator on or prior to the
hearing date, then the board of trustees or the administrator shall not adopt
such resolution.
(3) If the owners representing a majority of the area of real estate
within the community improvement district fail to sign and present to the board
or to the administrator, on or prior to the hearing date, a written petition
opposing the proposed resolution of dissolution, or if a resolution opposing
such dissolution is not adopted by the village board of trustees or city
council, then a majority of the board of trustees or the administrator may pass
the resolution and thereby adopt the proposed dissolution. After the board of
trustees or the administrator has adopted such resolution of dissolution, the
clerk of the community improvement district shall prepare and file a certified
copy of the resolution of dissolution in the office of the city or village
clerk where the original articles of association were filed and in the office
of the Secretary of State.
(4) A proposed resolution of dissolution shall not be adopted if the
community improvement district is obligated on any outstanding bonds, warrants,
or other debts or obligations unless the holders of such bonds, warrants, or
other debts or obligations shall all sign written consents to the dissolution
prior to the adoption of the resolution of dissolution.
Sec. 39. (1) Whenever a majority of the respective boards of trustees or
the administrators of two community improvement districts organized under the
Community Improvement District Act, organized within the same city or village
shall desire that one of the community improvement districts shall wholly merge
into the other community improvement district, the trustees or administrators
shall first propose a joint resolution declaring the advisability of such
merger and setting out verbatim the terms and conditions thereof and specifying
which community improvement district shall be the surviving community
improvement district, and also setting out the time and place when the boards
of trustees or administrators of the two community improvement districts shall
meet to consider the adoption of such resolution. Notice of the time and place
when the two community improvement districts shall meet shall be delivered to
the city or village clerk and the county clerk, election commissioner, and
register of deeds of each county or counties in which the community improvement
district is located at least forty-five days prior to such date.
(2) The trustees or the administrators shall mail a copy of such proposed
joint resolution to the city or village clerk within five days after the date
of first publication of the published notice described in this section. Notice
of the time and place when such resolution shall be set for consideration shall
be published the same day each week for two consecutive weeks in a newspaper of
general circulation published in the city or village where the community
improvement districts were organized, which publication shall contain the
entire wording of the proposed resolution. The last publication shall be not
less than five days nor more than two weeks prior to the time set for hearing
on objections to the passage of the resolution, at which hearing the owners of
property within either of the community improvement districts or the holders of
any unpaid bonds, warrants, or other obligations of either community
improvement district, or any city or village if any part of such community
improvement district or community improvement districts lies within the area of
its zoning jurisdiction, may appear and make objections to the proposed
resolution.
(3) If (a) a petition opposing the proposed resolution of merger is signed
by (i) property owners representing a majority of the area of real estate
within either community improvement district or (ii) any holder of any unpaid
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bonds, warrants, or other obligations of either community improvement district
or (b) a resolution is adopted by the city council or village board of trustees
opposing such resolution of merger and if any such petition or resolution is
presented to the boards of trustees or administrators on or prior to the
hearing date, then the boards of trustees or administrators shall not adopt
such resolution.
(4) If a written petition or resolution opposing the proposed resolution
of merger is not filed, then a majority of the boards of trustees or
administrators of both community improvement districts may pass the resolution
and thereby adopt the proposed merger. Upon adoption of the proposed resolution
by the boards of trustees or administrators of both community improvement
districts, the clerk of the community improvement district or the administrator
from both community improvement districts shall prepare and file a certified
copy of such resolution of merger in the office of the city or village clerk
where the original articles of association of the community improvement
districts were filed and in the office of the Secretary of State, and thereupon
the surviving community improvement district shall succeed to and become vested
with full title to all the property and property rights of every kind,
contracts, obligations, and choses in action of every kind held by or belonging
to the nonsurviving community improvement district, and the surviving community
improvement district shall also be liable for and recognize, assume, and carry
out all valid contracts and obligations of the nonsurviving community
improvement district including all outstanding warrants, bonds, or other
indebtedness. All taxes, assessments, and demands of every kind due or owing to
the nonsurviving community improvement district shall be paid to and collected
by the surviving community improvement district.
(5) Upon the filing of the certified copies of the resolution of merger as
provided in this section, the corporate existence of the nonsurviving community
improvement district shall thereupon terminate and the boundaries of the
surviving community improvement district shall be extended to include all the
territory within the boundaries of the nonsurviving community improvement
district. A majority of the board of trustees or the administrator of the
surviving community improvement district shall have power, from time to time,
to give binding directions in writing to the county treasurer of the county in
which the surviving community improvement district is located, directing that
the treasurer segregate the special assessment funds of the two community
improvement districts or directing the segregation of the other assets of the
two community improvement districts or directing the method and priority of
payment of registered warrants of the two community improvement districts, or
giving directions to the county treasurer as to other problems of fiscal
management of the affairs of the two community improvement districts involved
in the merger.
Sec. 40. (1) Whenever a majority of the board of trustees or the
administrator of any community improvement district organized under the
Community Improvement District Act, desires that any property within the
community improvement district be detached from the community improvement
district, the trustees or the administrator shall first propose a resolution
declaring the advisability of such detachment and setting out verbatim the
terms and conditions thereof and also setting out the time and place when the
board of trustees or the administrator will meet to consider the adoption of
such resolution. Notice of the time and place when the resolution shall be set
for consideration shall be delivered to the city or village clerk and the
county clerk, election commissioner, and register of deeds of each county or
counties in which the community improvement district is located at least forty-
five days prior to such date. Notice of the time and place when the resolution
shall be set for consideration shall be published the same day each week for
two consecutive weeks in a newspaper of general circulation published in the
city or village where the community improvement district was organized, which
publication shall contain the entire wording of the proposed resolution. The
trustees or administrator shall mail a copy of such proposed resolution to the
city or village clerk of the city or village in which any part of the community
improvement district is located within five days after the date of first
publication of the resolution. The last publication shall be not less than five
days nor more than two weeks prior to the time set for hearing on objections to
the passage of the resolution, at which hearing the owners of property within
the community improvement district, or any city or village in which any part of
the community improvement district is located, may appear and make objections
to the proposed resolution.
(2) If (a) a petition opposing the proposed resolution of detachment is
signed by property owners representing a majority of the area of real estate
within the community improvement district or (b) a resolution is adopted by the
city council or village board of trustees opposing the proposed resolution of
detachment and such petition or resolution is presented to the board of
trustees or to the administrator on or prior to the hearing date, then the
board of trustees or the administrator shall not adopt such resolution.
(3) If the owners representing a majority of the area of real estate
within the community improvement district fail to sign and present to the board
of trustees or the administrator, on or prior to the hearing date, a written
petition opposing the proposed resolution of detachment, or if the city council
or village board of trustees fail to adopt a resolution opposing such
resolution of detachment, then a majority of the board of trustees or the
administrator may pass the resolution and thereby adopt the proposed
detachment. After the board of trustees or the administrator has adopted such
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resolution of detachment, the clerk of the community improvement district shall
prepare and file a certified copy of the resolution of detachment in the office
of the city clerk where the original articles of association were filed and in
the office of the Secretary of State, and thereupon the area detached shall
become excluded and detached from the boundaries of the community improvement
district.
(4) A resolution of detachment proposed under this section shall not be
adopted if the community improvement district is indebted on any outstanding
bonds or warrants of the community improvement district unless the holders of
such bonds and warrants all sign written consents to the detachment prior to
the adoption of the resolution of detachment.
Sec. 41. When any land is a part of two community improvement districts
and the owners of such land desire that it be a part of only one community
improvement district, such owners shall file their request with the trustees or
the administrator of each community improvement district. The trustees or the
administrator of the community improvement districts shall meet jointly and
develop an agreement for the detachment of the land from one of the community
improvement districts and the adjustment of indebtedness. If the trustees or
administrators are unable to reach an agreement, they shall file a petition in
the district court of the county in which such land is located and the court
shall have jurisdiction to detach the land and adjust the indebtedness. The
clerk of the community improvement district shall notify the clerk of each city
or village in which the community improvement districts are located and the
county clerk, election commissioner, and register of deeds of each county or
counties in which the community improvement districts are located of the
agreement for detachment or the filing of the petition in district court.
Sec. 42. A petition may be filed with the district court of the county in
which a majority of the real property of a community improvement district is
located for referral of the community improvement district to the city council
of the city or board of trustees of the village in which the community
improvement district is located for the appointment of an administrator of the
community improvement district and suspension of the authority of the board of
trustees of the community improvement district or other relief as provided by
sections 43 to 51 of this act. Such petition may be filed by: (1) A majority of
the board of trustees of the community improvement district; (2) the holders of
more than fifty percent in principal amount of the outstanding bonds of the
community improvement district; (3) the holders of more than fifty percent in
principal amount of outstanding construction fund warrants of the community
improvement district; (4) a majority of the lessees permitted to vote pursuant
to section 14 of this act who are residents of the community improvement
district and resident property owners of the community improvement district;
(5) the owners of more than one-half of the real property within the community
improvement district; or (6) a city or village in which the community
improvement district is located and which exercises zoning jurisdiction over
the community improvement district. A petition filed by a city or village
pursuant to subdivision (6) of this section may be filed only on grounds that
the community improvement district has issued outstanding bonds or construction
fund warrants which have been in default for more than ninety days or the
community improvement district lacks a functioning board of trustees.
Sec. 43. The court shall fix the time for the hearing of the petition
pursuant to section 42 of this act and shall order the clerk of the court to
give and publish a notice of the filing of the petition. The notice shall be
given by publication the same day of the week each week for three consecutive
weeks. Within five days after the first publication of such notice, the
petitioner shall cause to be mailed by United States mail a copy of such notice
to each holder of outstanding warrants and bonds, to each member of the board
of trustees if the board has not petitioned for the appointment, to the city or
village in which the community improvement district is located, and to each
person whose property ownership is of record on the records of the register of
deeds at least thirty days and not more than forty days prior to the mailing of
a notice. Notice shall be sent to each bond and warrant holder, trustee, and
property owner whose name and post office address are known after diligent
investigation and inquiry. The notice shall state the time and place fixed for
the hearing of the petition and the prayer of the petition, and that any person
with an interest in the community improvement district may, on or before the
day fixed for the hearing of the petition, move to join in, dismiss, or answer
the petition. The petition may be referred to and described in the notice as
the petition of ................. (giving name of petitioner) praying for the
referral of the community improvement district to the ........... (name of the
city council of the city or board of trustees of the village in which the
community improvement district is located) for the appointment of an
administrator of the community improvement district and the suspension of the
authority of the board of trustees of such community improvement district to
exercise the powers granted the board of trustees under the Community
Improvement District Act during the period of such administrator's appointment.
Sec. 44. The petition shall state that the community improvement district
(1) has been in default for more than ninety days on its issued and outstanding
bonds or construction fund warrants of the community improvement district, (2)
has levied a tax upon the taxable value of the taxable property in the
community improvement district which, along with the sinking fund derived from
special assessments, has not been sufficient to meet payments of interest and
principal on the issued and outstanding bonds of the community improvement
district, (3) has failed to levy special assessments on all lots, parcels, or
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pieces of real property within the terms provided in section 32 of this act, or
(4) lacks a functioning board of trustees. The petition shall pray for referral
of the community improvement district to the city council of the city or board
of trustees of the village in which the community improvement district is
located for the appointment of an administrator for the community improvement
district and for an order suspending the authority of the board of trustees of
the community improvement district to exercise the powers granted to such board
pursuant to the Community Improvement District Act during the period of such
administrator's appointment or for such other relief as the court may determine
appropriate.
Sec. 45. Any person with an interest in the community improvement
district may join in the petition, move to dismiss the petition, or file an
answer to such petition. The rules of civil procedure relating to motions and
answers to a petition shall be applicable to motions and answers to the
petition in such special proceedings. The persons filing motions to dismiss and
answering the petition shall be the defendants to the special proceedings, and
the persons filing the petition or joining in the petition shall be the
plaintiffs. Every material statement of the petition not specially controverted
by the answer shall, for the purpose of the special proceedings, be taken as
true. Each person or party in interest failing to answer the petition shall be
deemed to admit as true all the material statements of the petition. The rules
of civil procedure relating to pleading and practice which are not inconsistent
with the provisions of the Community Improvement District Act are applicable to
the special proceedings in sections 42 to 47 of this act.
Sec. 46. Upon the hearing of the special proceedings pursuant to sections
42 to 47 of this act, the court shall, upon a finding that any of the
statements in subdivisions (1) through (4) of section 44 of this act are true,
that the petition has been properly filed and notice of the petition has been
duly given and published for the time and in the manner prescribed in sections
42 to 47 of this act, and that it is in the best interest of the community
improvement district, have the power and jurisdiction to issue an order which
refers the community improvement district to the city council of the city or
board of trustees of the village in which the community improvement district is
located for appointment by the city council or village board of trustees of an
administrator from a list of not less than two names of persons possessing real
estate and financial expertise compiled by the court in the proceedings, and
which provides for the suspension of the authority of the board of trustees of
the community improvement district to exercise the powers granted such board
under the Community Improvement District Act during the period of such
administrator's appointment. In the alternative or as additional relief, the
court may order such other relief as may be appropriate to cure the defects of
the community improvement district, including, but not limited to, (1)
appointment of trustees to serve until the next regular election, (2) calling a
special election to elect trustees which shall be conducted in the same manner
as other elections for trustees, and (3) directing the board of trustees to
levy taxes or special assessments as required by the Community Improvement
District Act. The cost of the special proceedings may be allowed and
apportioned between the parties in the discretion of the court.
Sec. 47. Upon receipt of the order of the district court referring the
community improvement district to the city council of the city or board of
trustees of the village in which the community improvement district is located
for the appointment of an administrator, the city council or village board of
trustees shall appoint an administrator with authority, including all authority
of the board of trustees, chairperson, and clerk of the community improvement
district, to direct the affairs of the community improvement district pursuant
to the Community Improvement District Act unless the city council or village
board of trustees shall determine upon good cause that the appointment of an
administrator would not be in the best interests of the community improvement
district. Within sixty days after receipt of such order of the district court,
the city council or village board of trustees shall file with the court a
certificate evidencing compliance with this section and if the city council or
village board of trustees determines not to appoint an administrator, such
certificate shall specify the grounds for the city council's or village board
of trustees' determination that the appointment would not be in the best
interest of the community improvement district.
Sec. 48. Upon the issuance of a certificate of appointment by the city
council of the city or board of trustees of the village in which the community
improvement district is located to a designated community improvement district
administrator, the authority of the board of trustees of the community
improvement district to exercise the powers of the community improvement
district conferred by the Community Improvement District Act shall be
suspended. The administrator shall during the period of his or her appointment
possess all of the powers of the board of trustees and shall possess exclusive
authority to exercise the powers conferred in the Community Improvement
District Act.
Sec. 49. The board of trustees or the administrator shall have the power
to negotiate a scaling, a discounting, a reduction in interest rate, or any
other compromise of any or all of the bonds, warrants, or other indebtedness of
the community improvement district with the owners or holders of such
indebtedness. In order to carry out any compromise agreements made, the board
of trustees or the administrator shall have the power to issue new bonds or
warrants which may be delivered to the holders or owners of the indebtedness
being compromised or may be sold on such terms as the board of trustees or
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administrator shall determine to provide cash to carry out the compromise
settlement. Before any new bonds or warrants are issued, the terms of the
compromise settlement shall be approved by the district court for the county in
which the community improvement district or the greater portion of the
community improvement district is situated. Such review by the district court
shall be limited to the legality and validity of the new bonds or warrants to
be issued, and the decree of the district court determining the issuance of the
new bonds or warrants to be legal and valid shall be conclusive against the
community improvement district and all other persons having or claiming any
interest in the community improvement district. Notwithstanding any other
provision of law, the treasurer of the community improvement district shall
disburse funds of the community improvement district in accordance with the
compromise settlement approved by the district court.
Sec. 50. (1) The administrator may levy a separate tax upon the taxable
value of the taxable property in the community improvement district which shall
be known as the administration tax and which shall be separately accounted for
by the treasurer of the community improvement district. Such tax shall be paid
annually. Such tax may be used to pay the fees and expenses of the
administrator and his or her administration, including the cost of audit
services, legal services, and financial advisory services ordered by the
administrator.
(2) The administrator shall receive a minimum fee of five hundred dollars
per month during the term of his or her appointment. The administrator shall
also be entitled to reimbursement for his or her actual and necessary expenses
upon presentation of an accounting of his or her expenses to the city council
of the city or board of trustees of the village in which the community
improvement district is located. The monthly administrator's fee provided for
in this subsection shall be subject to adjustment at any time during the term
of the administrator's appointment by the city council or village board of
trustees. The factors to be considered by the city council or village board of
trustees in its determination to increase the administrator's fee shall include
the nature and extent of the administrator's services, the complexity of the
problems confronting the community improvement district, and the value of the
services of the administrator to the community improvement district. The city
council or village board of trustees shall also consider the cost of obtaining
comparable services of the administrator in the private sector.
Sec. 51. The administrator shall serve at the pleasure of the city
council of the city or board of trustees of the village in which the community
improvement district is located or until the district court shall terminate the
authority of the city council or village board of trustees and the
administrator. A petition for review by the court of the original order may be
filed by any person with an interest in the community improvement district. The
court shall have the power to terminate the authority of the city council or
village board of trustees and the administrator upon its determination that
none of the conditions set forth in section 44 of this act exist or it is in
the best interest of the community improvement district that the authority of
the administrator be terminated. A termination of the authority of the city
council or village board of trustees and the administrator shall reinstate the
authority of the board of trustees pursuant to the Community Improvement
District Act.
Sec. 52. For purposes of sections 52 to 59 of this act:
(1) Filing clerk means the election commissioner or county clerk of the
county in which all or the largest portion of the land area comprising a
community improvement district is located;
(2) Qualified property owning voter means a person entitled to vote as
provided in section 14 of this act for all trustees of a community improvement
district other than those which may be elected only by qualified resident
voters; and
(3) Qualified resident voter means a person entitled to vote as provided
in section 14 of this act for all trustees of a community improvement district.
Sec. 53. (1) A trustee of a community improvement district may be removed
from office by recall pursuant to sections 52 to 59 of this act. A petition for
an election to recall a trustee shall be sufficient if it complies with the
requirements of this section.
(2) The signers of the petition shall be persons who were, on the date the
initial petition papers are issued under subsection (7) of this section,
eligible to vote in a community improvement district election as provided in
section 14 of this act. A person's eligibility to sign a petition shall be the
same as the person's eligibility to cast one or more votes at a community
improvement district election under section 14 of this act. Only one person
shall be allowed to sign on behalf of joint owners of property in the community
improvement district or on behalf of a public, private, or municipal
corporation that owns property in the community improvement district. If the
trustee whose recall is sought was elected by vote of resident owners only,
then only resident owners shall be allowed to sign the petition. If the trustee
whose recall is sought was elected by vote of all owners of property, then all
owners shall be allowed to sign the petition. For purposes of this section,
resident owner means qualified resident voter and all owners means all
qualified resident voters and all qualified property owning voters.
(3) The filing clerk shall assign to each signature a count equal to the
number of votes that the signer was eligible to cast on the date he or she
signed. The number of votes that a signer was eligible to cast shall be based
on section 14 of this act. If the signature was made by or for an owner of more
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than one parcel of property, the signature made by or on behalf of such owner
shall be assigned a count equal to the total number of votes which the owner
was eligible to cast.
(4) The filing clerk shall total the count assigned to the signatures on
the petition. The petition shall be sufficient if the total is at least equal
to thirty-five percent of the highest number of votes that were cast for a
candidate at the previous community improvement district election for the
trustee positions in the same category as the trustee whose recall is sought by
the petition. The categories of trustees shall be the same as provided in
section 14 of this act.
(5) The signatures shall be affixed to petition papers and shall be
considered part of the petition.
(6) The petition papers shall be procured from the filing clerk. Prior to
the issuance of such petition papers, a recall petition filing form shall be
signed and filed with the filing clerk by (a) at least one qualified resident
voter of the district if the trustee whose recall is being sought was elected
solely by qualified resident voters or (b) at least one qualified resident
voter or qualified property owning voter if the trustee whose recall is being
sought was elected by qualified resident voters and qualified property owning
voters. Such voter or voters shall be deemed to be the principal circulator or
circulators of the recall petition. The filing form shall state the name of the
trustee sought to be removed and whether qualified property owning voters
participated in the election of the trustee and shall request that the filing
clerk issue initial petition papers to the principal circulator for
circulation. The filing clerk shall notify the principal circulator or
circulators that the necessary signatures must be gathered within thirty days
after the date of issuing the petitions.
(7) The filing clerk, upon issuing the initial petition papers or any
subsequent petition papers, shall enter in a record, to be kept in his or her
office, the name of the principal circulator or circulators to whom the papers
were issued, the date of issuance, the number of papers issued, and whether
qualified property owning voters may participate in signing the petitions. The
filing clerk shall certify on the papers the name of the principal circulator
or circulators to whom the papers were issued, the date they were issued, and
whether qualified property owning voters may participate in signing the
petitions. No petition paper shall be accepted as part of the petition unless
it bears such certificate. The principal circulator or circulators who check
out petitions from the filing clerk may distribute such petitions to persons
who may act as circulators of such petitions.
Sec. 54. (1) The Secretary of State shall design the uniform petition
papers to be distributed by all filing clerks for use in the recall of trustees
of community improvement districts and shall keep a sufficient number of such
blank petition papers on file for distribution to any filing clerk requesting
recall petitions.
(2) Each petition paper presented to a qualified voter for his or her
signature shall clearly indicate at the top (a) whether the trustee whose
recall is being sought was elected solely by qualified resident voters, (b)
whether the signatories must be qualified resident voters or may include
qualified property owning voters, (c) that the signatories must support the
holding of a recall election for the trustee, (d) the name of the individual
sought to be recalled, and (e) a general statement of the reason or reasons for
which recall is sought.
(3) Each petition paper shall contain a statement, entitled Instructions
to Petition Circulators, prepared by the Secretary of State to assist
circulators in understanding the provisions governing the petition process
established by sections 52 to 59 of this act. The instructions shall include
the following statement: No one circulating this petition paper in an attempt
to gather signatures shall sign the circulator's affidavit unless each person
who signed the petition paper did so in the presence of the circulator.
Sec. 55. (1) The principal circulator or circulators shall file, as one
instrument, all petition papers comprising a recall petition for signature
verification with the filing clerk within thirty days after the filing clerk
issues the initial petition papers to the principal circulator or circulators
as provided in section 53 of this act.
(2) Within fifteen days after the filing of the petition, the filing clerk
shall ascertain whether or not the petition is signed by sufficient qualified
resident voters and qualified property owning voters as provided in section 53
of this act. No new signatures may be added after the initial filing of the
petition papers. No signatures may be removed unless the filing clerk receives
an affidavit signed by the person requesting that his or her signature be
removed before the petitions are filed with the filing clerk for signature
verification.
(3) If the petition is found to be sufficient, the filing clerk shall
attach to the petition a certificate showing the result of such examination. If
the petition is found not to be sufficient, the filing clerk shall file the
petition in his or her office without prejudice to the filing of a new petition
for the same purpose.
Sec. 56. (1) If the recall petition is found to be sufficient, the filing
clerk shall notify the trustee whose removal is sought and the board of
trustees of the community improvement district that sufficient signatures have
been gathered.
(2) If the trustee does not resign within five days after receiving the
notice, the filing clerk shall order an election to be held not less than
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forty-five days nor more than sixty days after the expiration of the five-day
period, except that if an election for the board of trustees of the community
improvement district is to be held within one hundred twenty days after the
expiration of the five-day period, the filing clerk shall provide for the
holding of the removal election at the time of such regular election. The
recall election shall be conducted in the same manner as an election for
members of the board of trustees as provided in section 14 of this act. After
the filing clerk sets the date for the recall election, the recall election
shall be held regardless of whether the trustee whose removal is sought resigns
before the recall election is held.
Sec. 57. The form of the official ballot at a recall election conducted
pursuant to section 56 of this act shall conform to the requirements of this
section. With respect to each trustee whose removal is sought, the question
shall be submitted: Shall (name of trustee) be removed from the office of
trustee? Immediately following each such question there shall be printed on the
ballot the two responses: Yes and No. Immediately to the left of each response
shall be placed a square or oval in which the voters qualified to vote for the
trustee in a regular election may vote for one of the responses by making a
cross or other clear, identifiable mark. The name of the trustee which shall
appear on the ballot shall be the name of the trustee that appeared on the
ballot of the previous election that included his or her name.
Sec. 58. (1) If a majority of the votes cast at a recall election are
against the removal of the trustee named on the ballot or the election results
in a tie, the trustee shall continue in office for the remainder of his or her
term.
(2) If a majority of the votes cast at a recall election are for the
removal of the trustee named on the ballot, he or she shall, regardless of any
technical defects in the recall petition, be deemed removed from office unless
a recount is ordered. If the trustee is deemed removed, the removal shall
result in an immediate vacancy in the office from the date of the election. The
vacancy shall be filled as provided in subsection (2) of section 14 of this
act.
(3) If there are vacancies in the offices of a majority or more of the
members of the board of trustees at one time due to the recall of such members,
a special election to fill such vacancies shall be conducted as expeditiously
as possible by the filing clerk in the manner specified in section 14 of this
act.
(4) No trustee who is removed at a recall election or who resigns after
the initiation of the recall process shall be appointed to fill the vacancy
resulting from his or her removal or the removal of any other member of the
same board of trustees during the remainder of his or her term of office.
Sec. 59. No recall petition filing form shall be filed against a trustee
under section 53 of this act within twelve months after a recall election has
failed to remove him or her from office, within six months after the beginning
of his or her term of office, or within six months prior to the incumbent
filing deadline for the office.
Sec. 60. Section 10-127, Reissue Revised Statutes of Nebraska, is amended
to read:
10-127 The State Highway Commission, any county, city, village, municipal
county, school district, drainage district, irrigation district, public power
district, public power and irrigation district, metropolitan utilities
district, the Board of Regents of the University of Nebraska, the Board of
Trustees of the Nebraska State Colleges, community colleges, community
improvement districts, sanitary and improvement districts, rural water
districts, airport authorities, hospital authorities, or any other municipal
corporation or governmental subdivision of the state which has the power to
issue bonds or other evidences of indebtedness may issue bonds or other
evidences of indebtedness of like date, tenor, amount, and maturity to replace
mutilated, destroyed, stolen, or lost bonds or other evidences of indebtedness
previously issued and having attached thereto the same corresponding unmatured
coupons, if any, as were attached to the mutilated, destroyed, stolen, or lost
bonds or other evidences of indebtedness. Issuance of replacement bonds or
other evidences of indebtedness of like date, tenor, amount, and maturity may
be made (1) in exchange and in substitution for such mutilated bond or other
evidence of indebtedness and attached unmatured coupons, if any, upon surrender
of such mutilated bond or other evidence of indebtedness and attached unmatured
coupons, if any, or (2) in lieu of and in substitution for the destroyed,
stolen, or lost bond or other evidence of indebtedness and attached unmatured
coupons. In the event such bond or other evidence of indebtedness and attached
unmatured coupons, if any, have been destroyed, stolen, or lost, the holder
thereof shall first file with the issuer evidence satisfactory to it that such
bond or other evidence of indebtedness and attached unmatured coupons have been
destroyed, stolen, or lost and of such holder's ownership thereof and shall in
any event furnish the issuer with indemnity satisfactory to it and shall comply
with any statutory requirements and with such other requirements as the issuer
may require. A charge, not exceeding the actual cost thereof, shall be imposed
upon such owner to reimburse the issuer for the expenses for issuing each such
new bond or evidence of indebtedness, which cost shall be paid before the
delivery of the new bond or evidence of indebtedness. Instead of issuing a
substituted bond or evidence of indebtedness or instead of delivery of any
coupon for a bond or evidence of indebtedness, as the case may be, which has
matured or which is about to mature and instead of issuing a substituted bond
or other evidence of indebtedness for a bond or other evidence of indebtedness
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which has been called for redemption, the issuer, upon receiving evidence and
being indemnified as provided in this section, at its option may pay the bond
or other evidence of indebtedness or such coupon from any source lawfully
available therefor without the surrender thereof.
Sec. 61. Section 10-131, Reissue Revised Statutes of Nebraska, is amended
to read:
10-131 Notwithstanding any other provisions of the statutes of the State
of Nebraska with respect to the issuance of bonds, interest coupons, and other
evidence of indebtedness by any county, city, village, municipal county, school
district, public power district, public power and irrigation district, airport
authority, community improvement district, sanitary and improvement district,
or any other municipal corporation or political subdivision, if any bond or
other evidence of indebtedness is signed by more than one officer of such
issuer, one of the signatures shall be manually affixed thereto and the other
signatures may be facsimile signatures of such officers, and with respect to
any interest coupons appertaining to any bond or evidence of indebtedness, the
signatures on such interest coupon may be facsimile signatures.
Sec. 62. Section 10-133, Reissue Revised Statutes of Nebraska, is amended
to read:
10-133 Any county, city, village, municipal county, school district,
public power district, public power and irrigation district, airport authority,
community improvement district, sanitary and improvement district, or any other
municipal corporation or political subdivision is hereby authorized to pay
fiscal and consultant fees incurred with respect to issuance and sale of any
bonds, notes, or other evidence of indebtedness out of the proceeds from the
sale of such bonds or any other funds available to the issuer, and such payment
shall not constitute or be considered as a discount with respect to the sale
price of the bonds, notes, or other evidence of indebtedness.
Sec. 63. Section 10-134, Reissue Revised Statutes of Nebraska, is amended
to read:
10-134 As used in sections 10-134 to 10-141, unless the context otherwise
requires:
(1) Bond shall mean any bonds, notes, interim certificates, evidences of
bond ownership, bond anticipation notes, warrants, or other evidence of
indebtedness;
(2) Bond ordinance shall mean the ordinance or resolution adopted by the
governing body of an issuer authorizing an issue of bonds and shall include any
indenture or similar instrument executed by the issuer in connection with a
bond issue;
(3) Fully registered bond shall mean a bond, without interest coupons, as
to which the principal and interest are payable to the person shown on the
records of the registrar as the owner of the bond as of each interest or
principal record payment date designated by the issue in the bond ordinance;
(4) Governing body shall mean the council, board, or other legislative
body having charge of the governance of the issuer;
(5) Issuer shall mean any county, city, village, school district,
community improvement district, sanitary and improvement district, fire
protection district, public corporation, or any other governmental body or
political subdivision of the State of Nebraska; and
(6) Paying agent or registrar shall mean: (a) The treasurer or finance
officer of the issuer; (b) any national or state bank having trust powers or
any trust company; (c) any municipal securities dealer registered under Section
15B of the Securities Exchange Act of 1934, except that such a dealer may act
as a paying agent or registrar only with respect to warrants or an issue of
bonds maturing within five years from the date of issuance; or (d) the county
treasurer of the county in which the issuer is located if such treasurer shall
agree to perform such duty. The paying agent and registrar for a bond issue may
be, but are not required to be, the same person or entity.
Sec. 64. Section 10-615, Reissue Revised Statutes of Nebraska, is amended
to read:
10-615 Any community improvement district, any sanitary and improvement
district, any road improvement district, and any fire protection district in
the State of Nebraska which has issued or which will issue bonds for any
purpose, and such bonds or any part of such bonds are unpaid, are a legal
liability against such district, and are bearing interest, may issue refunding
bonds with which to call and redeem all or any part of such outstanding bonds
at or before the maturity or the redemption date of such bonds, may include
various series and issues of the outstanding bonds in a single issue of
refunding bonds, and may issue refunding bonds to pay any redemption premium
and interest to accrue and become payable on the outstanding bonds being
refunded or refunding bonds issued. The refunding bonds may be issued and
delivered at any time prior to the date of maturity or the redemption date of
the bonds to be refunded that the governing body or the administrator
determines to be in the best interest of any such district. The proceeds
derived from the sale of the refunding bonds issued pursuant to this section
may be invested in obligations of or guaranteed by the United States Government
pending the time the proceeds are required for the purpose for which such
refunding bonds were issued. To further secure the refunding bonds, any such
district may enter into a contract with any bank or trust company, within or
without the state, with respect to the safekeeping and application of the
proceeds of the refunding bonds and the safekeeping and application of the
earnings on the investment of such proceeds. Any outstanding bonds, which shall
have been called for redemption and which have sufficient funds or obligations
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of or guaranteed by the United States Government set aside in safekeeping to be
applied for the complete payment of such bonds, interest on such bonds, and
redemption premium, if any, on the redemption date, shall not be considered as
outstanding and unpaid, and such bonds shall be fully secured by and be payable
from such funds or obligations so deposited. Each new refunding bond so issued
shall state on the bond (1) the object of its issue, (2) this section of the
law under which such issue was made, including a statement that the issue is
made pursuant to such section, and (3) the date and principal amount of the
bond or bonds for which the refunding bonds are being issued.
Sec. 65. Section 10-1103, Reissue Revised Statutes of Nebraska, is amended
to read:
10-1103 For purposes of the Nebraska Governmental Unit Security Interest
Act:
(1) Authorizing statute means any statute which authorizes the issuance of
bonds;
(2) Bond means any bond, note, warrant, loan agreement, lease, lease-
purchase agreement, pledge agreement, agreement authorized by the governing
body of a generating power agency pursuant to section 70-682, or other evidence
of indebtedness for which a security interest is granted or a pledge made upon
revenue or other property, including any limited tax revenue, to provide for
payment or security;
(3) Governmental unit means the State of Nebraska, any county, school
district, city, village, public power district, community improvement district,
sanitary and improvement district, educational service unit, community college
area, natural resources district, airport authority, fire protection district,
hospital authority, joint entity created under the Interlocal Cooperation Act,
joint public agency, instrumentality, or any other district, authority, or
political subdivision of the State of Nebraska and governmental units as
defined in subdivision (a)(45) of section 9-102, Uniform Commercial Code;
(4) Measure means any ordinance, resolution, or other enactment
authorizing the issuance of bonds or authorizing an indenture with respect to
bonds pursuant to an authorizing statute; and
(5) Owner means any holder, registered owner, or beneficial owner of a
bond.
Sec. 66. Section 10-1203, Reissue Revised Statutes of Nebraska, is amended
to read:
10-1203 For purposes of the Nebraska Governmental Unit Credit Facility
Act:
(1) Authorizing statute means any statute which authorizes the issuance of
bonds by a governmental unit;
(2) Bank means any federally chartered or state-chartered bank, savings
and loan association, building and loan association, insurance company, or any
other public or private agency which insures or guarantees the indebtedness of
other persons or governmental units;
(3) Bond means any bond, note, interim certificate, evidence of bond
ownership, bond anticipation note, warrant, or other evidence of indebtedness
issued under any authorizing statute;
(4) Credit facility means any agreement or other instrument providing for
a guarantee or other contractual arrangement providing direct or indirect
assurance for payment of principal or interest or both principal and interest
on any bond issued by a governmental unit, including, but not limited to, any
letter of credit, contract of guarantee, contract of insurance, standby
purchase contract, or any other contract for purchase or other agreement as to
assurance of payment;
(5) Governmental unit means any county, school district, city, village,
public power district, public power and irrigation district, community
improvement district, sanitary and improvement district, educational service
unit, community college area, natural resources district, airport authority,
fire protection district, hospital district, hospital authority, housing
authority, joint entity created under the Interlocal Cooperation Act, joint
public agency created under the Joint Public Agency Act, instrumentality, or
any other district, authority, or political subdivision of the State of
Nebraska;
(6) Measure means any ordinance, resolution, or other enactment by a
governmental unit, or any amendment or supplement to any such ordinance,
resolution, or other enactment authorizing the issuance of bonds or authorizing
an indenture with respect to bonds pursuant to an authorizing statute;
(7) Terms and conditions means the terms and conditions of a credit
facility, which may include, but are not limited to, (a) representations and
warranties; (b) payment of fees and expenses; (c) reimbursement of amounts
advanced and payment of interest on amounts advanced; (d) holding harmless for
additional taxes or increased costs payable by the credit facility provider;
(e) remarketing or resale of purchased bonds; (f) indemnification for
liabilities incurred by a credit facility provider; (g) affirmative and
negative covenants relating to bonds for which assurance is provided; (h)
provisions relating to defaults and remedies upon default; and (i) such other
provisions as may be determined by the governing body of a governmental unit to
be either customary or appropriate in obtaining a credit facility; and
(8) United States governmental enterprise means any agency or
instrumentality of the United States Government. For all purposes of the
Nebraska Governmental Unit Credit Facility Act, the term United States
governmental enterprise shall be conclusively construed as including, but not
limited to, any of the Federal Home Loan Banks, the Federal National Mortgage
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Association, and the Federal Home Loan Mortgage Corporation.
Sec. 67. Section 13-402, Reissue Revised Statutes of Nebraska, is amended
to read:
13-402 (1) Any county, city, village, school district, agency of the state
government, drainage district, community improvement district, sanitary and
improvement district, or other political subdivision of the State of Nebraska
is hereby permitted, authorized, and given the power to file a petition in the
United States Bankruptcy Court under 11 U.S.C. chapter 9 and any acts
amendatory thereto and supplementary thereof and to incur and pay the expenses
incident to the consummation of a plan of adjustment of debts as contemplated
by such petition.
(2)(a) The authority and power to file a petition provided for in
subsection (1) of this section shall not apply to any city or village that, at
the time of its governing body authorizing the filing of such petition, has its
defined benefit retirement plan, if any, with a funded ratio of the actuarial
value of assets less than fifty-one and sixty-five hundredths percent for any
such petition to be filed during the period between January 1, 2020, and
January 1, 2023; fifty-four and forty-one hundredths percent for any such
petition to be filed during the period between January 1, 2023, and January 1,
2026; fifty-eight and twenty-one hundredths percent for any such petition to be
filed during the period between January 1, 2026, and January 1, 2029; sixty-
three and forty-one hundredths percent for any such petition to be filed during
the period between January 1, 2029, and January 1, 2032; seventy and seventy-
one hundredths percent for any such petition to be filed during the period
between January 1, 2032, and January 1, 2035; eighty and sixty-one hundredths
percent for any such petition to be filed during the period between January 1,
2035, and January 1, 2038; and ninety percent thereafter.
(b) Within ninety days prior to taking action authorizing the filing of
such petition, the governing body of any city or village that has a defined
benefit retirement plan shall conduct an actuarial valuation to determine the
funded ratio of such defined benefit retirement plan. Such determination shall
be prima facie evidence in establishing the authority of the city or village to
exercise authority under this section.
(c)(i) A city or village that does not have a defined benefit retirement
plan may by ordinance declare and affirm that its general obligation bonds,
whether existing before, after, or at the time of such ordinance, shall, unless
otherwise provided in the related authorizing measure, be equally and ratably
secured by a statutory lien on all ad valorem taxes levied and to be levied
from year to year by such city or village and on all proceeds derived
therefrom. The statutory lien authorized hereunder shall be deemed to attach
and be continuously perfected from the time the bonds are issued without
further action or authorization by the city or village. The statutory lien is
valid and binding from the time the bonds are issued without any physical
delivery thereof or further act required. No filing need be made under the
Uniform Commercial Code or otherwise to perfect the statutory lien on any ad
valorem taxes or proceeds derived therefrom in favor of any general obligation
bonds. Bonds so secured shall have a first priority lien on such ad valorem
taxes so levied and on all proceeds derived therefrom and shall have priority
against all parties having claims of contract or tort or otherwise against the
city or village, whether or not the parties have notice thereof. The absence of
such declaration or affirmation shall not reduce or degrade the priority or
secured status of such bonds otherwise existing under law.
(ii) For purposes of this subdivision, statutory lien shall have the
meaning given to that term under 11 U.S.C. 101(53) of the federal Bankruptcy
Reform Act of 1994, as it existed on August 24, 2017.
(d) An actuary performing actuarial valuations pursuant to this subsection
shall be a member of the American Academy of Actuaries and shall meet the
academy's qualification standards to render a statement of actuarial opinion.
Sec. 68. Section 13-503, Reissue Revised Statutes of Nebraska, is amended
to read:
13-503 For purposes of the Nebraska Budget Act, unless the context
otherwise requires:
(1) Governing body means the governing body of any county agricultural
society, elected county fair board, joint airport authority formed under the
Joint Airport Authorities Act, city or county airport authority, bridge
commission created pursuant to section 39-868, cemetery district, city,
village, municipal county, community college, community redevelopment
authority, county, drainage or levee district, educational service unit, rural
or suburban fire protection district, historical society, hospital district,
irrigation district, learning community, natural resources district, nonprofit
county historical association or society for which a tax is levied under
subsection (1) of section 23-355.01, public building commission, railroad
transportation safety district, reclamation district, road improvement
district, rural water district, school district, community improvement
district, sanitary and improvement district, township, offstreet parking
district, transit authority, regional metropolitan transit authority,
metropolitan utilities district, Educational Service Unit Coordinating Council,
political subdivision with the authority to have a property tax request, with
the authority to levy a toll, or that receives state aid, and joint entity
created pursuant to the Interlocal Cooperation Act that receives tax funds
generated under section 2-3226.05;
(2) Levying board means any governing body which has the power or duty to
levy a tax;
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(3) Fiscal year means the twelve-month period used by each governing body
in determining and carrying on its financial and taxing affairs;
(4) Tax means any general or special tax levied against persons, property,
or business for public purposes as provided by law but shall not include any
special assessment;
(5) Auditor means the Auditor of Public Accounts;
(6) Cash reserve means funds required for the period before revenue would
become available for expenditure but shall not include funds held in any
special reserve fund;
(7) Public funds means all money, including nontax money, used in the
operation and functions of governing bodies. For purposes of a county, city, or
village which has a lottery established under the Nebraska County and City
Lottery Act, only those net proceeds which are actually received by the county,
city, or village from a licensed lottery operator shall be considered public
funds, and public funds shall not include amounts awarded as prizes;
(8) Adopted budget statement means a proposed budget statement which has
been adopted or amended and adopted as provided in section 13-506. Such term
shall include additions, if any, to an adopted budget statement made by a
revised budget which has been adopted as provided in section 13-511;
(9) Special reserve fund means any special fund set aside by the governing
body for a particular purpose and not available for expenditure for any other
purpose. Funds created for (a) the retirement of bonded indebtedness, (b) the
funding of employee pension plans, (c) the purposes of the Political
Subdivisions Self-Funding Benefits Act, (d) the purposes of the Local Option
Municipal Economic Development Act, (e) voter-approved sinking funds, or (f)
statutorily authorized sinking funds shall be considered special reserve funds;
(10) Biennial period means the two fiscal years comprising a biennium
commencing in odd-numbered or even-numbered years used by a city, village, or
natural resources district in determining and carrying on its financial and
taxing affairs; and
(11) Biennial budget means (a) a budget by a city of the primary or
metropolitan class that adopts a charter provision providing for a biennial
period to determine and carry on the city's financial and taxing affairs, (b) a
budget by a city of the first or second class or village that provides for a
biennial period to determine and carry on the city's or village's financial and
taxing affairs, or (c) a budget by a natural resources district that provides
for a biennial period to determine and carry on the natural resources
district's financial and taxing affairs.
Sec. 69. Section 13-518, Revised Statutes Supplement, 2025, is amended to
read:
13-518 For purposes of sections 13-518 to 13-522:
(1) Allowable growth means (a) for governmental units other than community
colleges, the percentage increase in taxable valuation in excess of the base
limitation established under section 77-3446, if any, due to (i) improvements
to real property as a result of new construction and additions to existing
buildings, (ii) any other improvements to real property which increase the
value of such property, (iii) any increase in valuation due to annexation of
real property by the governmental unit, (iv) a change in the use of real
property, (v) any increase in personal property valuation over the prior year,
and (vi) the accumulated excess valuation over the redevelopment project
valuation described in section 18-2147 of the Community Development Law for
redevelopment projects within the governmental unit in the year immediately
after the division of taxes for such redevelopment project has ended and (b)
for community colleges, the percentage increase in excess of the base
limitation, if any, in full-time equivalent students from the second year to
the first year preceding the year for which the budget is being determined;
(2) Capital improvements means (a) acquisition of real property or (b)
acquisition, construction, or extension of any improvements on real property;
(3) Governing body has the same meaning as in section 13-503, except that
for fiscal years beginning on or after July 1, 2025, such term shall not
include the governing body of any county, city, or village;
(4) Governmental unit means every political subdivision which has
authority to levy a property tax or authority to request levy authority under
section 77-3443, except that such term shall not include (a) community
improvement districts and sanitary and improvement districts which have been in
existence for five years or less, (b) school districts, or (c) for fiscal years
beginning on or after July 1, 2025, counties, cities, or villages;
(5) Qualified sinking fund means a fund or funds maintained separately
from the general fund to pay for acquisition or replacement of tangible
personal property with a useful life of five years or more which is to be
undertaken in the future but is to be paid for in part or in total in advance
using periodic payments into the fund. The term includes sinking funds under
subdivision (13) of section 35-508 for firefighting and rescue equipment or
apparatus;
(6) Restricted funds means (a) property tax, excluding any amounts
refunded to taxpayers, (b) payments in lieu of property taxes, (c) local option
sales taxes, (d) motor vehicle taxes, (e) state aid, (f) transfers of surpluses
from any user fee, permit fee, or regulatory fee if the fee surplus is
transferred to fund a service or function not directly related to the fee and
the costs of the activity funded from the fee, (g) any funds excluded from
restricted funds for the prior year because they were budgeted for capital
improvements but which were not spent and are not expected to be spent for
capital improvements, (h) the tax provided in sections 77-27,223 to 77-27,227
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beginning in the second fiscal year in which the county will receive a full
year of receipts, and (i) any excess tax collections returned to the county
under section 77-1776. Funds received pursuant to the nameplate capacity tax
levied under section 77-6203 for the first five years after a renewable energy
generation facility has been commissioned are nonrestricted funds; and
(7) State aid means:
(a) For all governmental units, state aid paid pursuant to sections
60-3,202 and 77-3523 and reimbursement provided pursuant to section 77-1239;
(b) For municipalities, state aid to municipalities paid pursuant to
sections 39-2501 to 39-2520, 60-3,190, and 77-27,139.04 and insurance premium
tax paid to municipalities;
(c) For counties, state aid to counties paid pursuant to sections 60-3,184
to 60-3,190, insurance premium tax paid to counties, and reimbursements to
counties from funds appropriated pursuant to section 29-3933;
(d) For community colleges, state aid to community colleges paid pursuant
to the Community College Aid Act;
(e) For educational service units, state aid appropriated under sections
79-1241.01 and 79-1241.03; and
(f) For local public health departments as defined in section 71-1626,
state aid as distributed under section 71-1628.08.
Sec. 70. Section 13-803, Reissue Revised Statutes of Nebraska, is amended
to read:
13-803 For purposes of the Interlocal Cooperation Act:
(1) Joint entity shall mean an entity created by agreement pursuant to
section 13-804;
(2) Public agency shall mean any county, city, village, school district,
or agency of the state government or of the United States, any drainage
district, community improvement district, sanitary and improvement district, or
other municipal corporation or political subdivision of this state, and any
political subdivision of another state;
(3) Public safety services shall mean public services for the protection
of persons or property. Public safety services shall include law enforcement,
fire protection, and emergency response services; and
(4) State shall mean a state of the United States and the District of
Columbia.
Sec. 71. Section 13-2202, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
13-2202 For purposes of the Local Government Miscellaneous Expenditure
Act:
(1) Elected and appointed officials and employees shall mean the elected
and appointed officials and employees of any local government;
(2) Governing body shall mean, in the case of a city of any class, the
city council; in the case of a village, cemetery district, community hospital
for two or more adjoining counties, county hospital, road improvement district,
sanitary drainage district, community improvement district, or sanitary and
improvement district, the board of trustees; in the case of a county, the
county board; in the case of a municipal county, the council; in the case of a
township, the town board; in the case of a school district, the school board;
in the case of a rural or suburban fire protection district, reclamation
district, natural resources district, regional metropolitan transit authority,
or hospital district, the board of directors; in the case of a county,
district, or city-county health department, the board of health; in the case of
an educational service unit, the board; in the case of a community college, the
Community College Board of Governors for the area the board serves; in the case
of an airport authority, the airport authority board; in the case of a weed
control authority, the board; in the case of a county agricultural society, the
board of governors; and in the case of a learning community, the learning
community coordinating council;
(3) Local government shall mean cities of any class, villages, cemetery
districts, community hospitals for two or more adjoining counties, county
hospitals, road improvement districts, counties, townships, sanitary drainage
districts, community improvement districts, sanitary and improvement districts,
school districts, rural or suburban fire protection districts, reclamation
districts, natural resources districts, regional metropolitan transit
authorities, hospital districts, county health departments, district health
departments, city-county health departments, educational service units,
community colleges, airport authorities, weed control authorities, county
agricultural societies, and learning communities;
(4) Public funds shall mean such public funds as defined in section 13-503
as are under the direct control of governing bodies of local governments;
(5) Public meeting shall mean all regular, special, or called meetings,
formal or informal, of any governing body for the purposes of briefing,
discussion of public business, formation of tentative policy, or the taking of
any action of the governing body; and
(6) Volunteer shall mean a person who is not an elected or appointed
official or an employee of a local government and who, at the request or with
the permission of the local government, engages in activities related to the
purposes or functions of the local government or for its general benefit.
Sec. 72. Section 13-2503, Reissue Revised Statutes of Nebraska, is amended
to read:
13-2503 For purposes of the Joint Public Agency Act:
(1) Board means the board of representatives of a joint public agency;
(2) Governing body has the same meaning as in section 13-503 and, when
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referring to state agencies, includes the governing board of a state agency or
the Governor and, when referring to federal agencies, includes the governing
board of a federal agency or the President of the United States;
(3) Joint public agency means an entity created by agreement pursuant to
the act;
(4) Person means a natural person, public authority, private corporation,
association, firm, partnership, limited liability company, or business trust of
any nature whatsoever organized and existing under the laws of this state or of
the United States or any other state thereof. The term does not include a joint
public agency;
(5) Public agency means any county, city, village, school district, or
agency of the state government or of the United States, any drainage district,
community improvement district, sanitary and improvement district, or other
municipal corporation or political subdivision of this state, and any political
subdivision of another state;
(6) Representative means a member of the board and includes an alternate
representative; and
(7) State means a state of the United States and the District of Columbia.
Sec. 73. Section 13-3304, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
13-3304 (1) Any city which encompasses an area greater than three hundred
acres eligible to be designated as an inland port district may propose to
create an inland port authority by ordinance, subject to the cap on the total
number of inland port districts provided in subsection (4) of this section. In
determining whether to propose the creation of an inland port authority, the
city shall consider the following criteria:
(a) The desirability and economic feasibility of locating an inland port
district within the corporate boundaries, extraterritorial zoning jurisdiction,
or both of the city;
(b) The technical and economic capability of the city and any other public
and private entities to plan and carry out development within the proposed
inland port district;
(c) The strategic location of the proposed inland port district in
proximity to existing and potential transportation infrastructure that is
conducive to facilitating regional, national, and international trade and the
businesses and facilities that promote and complement such trade;
(d) The potential impact that development of the proposed inland port
district will have on the immediate area; and
(e) The regional and statewide economic impact of development of the
proposed inland port district.
(2) Any city and one or more counties in which a city of the metropolitan
class, city of the primary class, or city of the first class is located, or in
which the extraterritorial zoning jurisdiction of such city is located, which
encompass an area greater than three hundred acres eligible to be designated as
an inland port district may enter into an agreement pursuant to the Interlocal
Cooperation Act to propose joint creation of an inland port authority, subject
to the cap on the total number of inland port districts provided in subsection
(4) of this section. In determining whether to propose the creation of an
inland port authority, the city and counties shall consider the following
criteria:
(a) The desirability and economic feasibility of locating an inland port
district within the corporate boundaries or extraterritorial zoning
jurisdiction or both of the city, or within both the corporate boundaries or
extraterritorial zoning jurisdiction or both of a city and the boundaries of
one or more counties;
(b) The technical and economic capability of the city and county or
counties and any other public and private entities to plan and carry out
development within the proposed inland port district;
(c) The strategic location of the proposed inland port district in
proximity to existing and potential transportation infrastructure that is
conducive to facilitating regional, national, and international trade and the
businesses and facilities that promote and complement such trade;
(d) The potential impact that development of the proposed inland port
district will have on the immediate area; and
(e) The regional and statewide economic impact of development of the
proposed inland port district.
(3) Any county with a population greater than fifteen twenty thousand
inhabitants according to the most recent federal census or the most recent
revised certified count by the United States Bureau of the Census which
encompasses an area greater than three hundred acres eligible to be designated
as an inland port district may propose to create an inland port authority by
resolution, subject to the cap on the total number of inland port districts
provided in subsection (4) of this section. In determining whether to propose
the creation of an inland port authority, the county shall consider the
following criteria:
(a) The desirability and economic feasibility of locating an inland port
district within the county;
(b) The technical and economic capability of the county and any other
public or private entities to plan and carry out development within the
proposed inland port district;
(c) The strategic location of the proposed inland port district in
proximity to existing and potential transportation infrastructure that is
conducive to facilitating regional, national, and international trade and the
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businesses and facilities that promote and complement such trade;
(d) The potential impact that development of the proposed inland port
district will have on the immediate area; and
(e) The regional and statewide economic impact of development of the
proposed inland port district.
(4) No more than eight five inland port districts may be designated
statewide. No more than one inland port district may be designated within the
boundaries of a city of the metropolitan class. No inland port authority shall
designate more than one inland port district, and no inland port authority may
be created without also designating an inland port district.
(5) Following the adoption of an ordinance, resolution, or execution of an
agreement pursuant to the Interlocal Cooperation Act proposing creation of an
inland port authority, the city clerk or county clerk shall transmit a copy of
such ordinance, resolution, or agreement to the Department of Economic
Development along with an application for approval of the proposal. Upon
receipt of such ordinance, resolution, or agreement and application, the
department shall evaluate the proposed inland port authority to determine
whether the proposal meets the criteria in subsection (1), (2), or (3) of this
section, whichever is applicable, as well as any prioritization criteria
developed by the department. Upon a determination that the proposed inland port
authority sufficiently meets such criteria, the Director of Economic
Development shall certify to the city clerk or county clerk whether the
proposed creation of such inland port authority exceeds the cap on the total
number of inland port districts pursuant to subsection (4) of this section. If
the department determines that the proposed inland port authority sufficiently
meets such criteria and does not exceed such cap, the inland port authority
shall be deemed created. If the proposed inland port authority does not
sufficiently meet such criteria or exceeds such cap, the city shall repeal such
ordinance, the county shall repeal such resolution, or the city and county or
counties shall rescind such agreement and the proposed inland port authority
shall not be created.
Sec. 74. Section 13-3309, Reissue Revised Statutes of Nebraska, is amended
to read:
13-3309 No inland port authority shall be required to pay any taxes or any
assessments whatsoever to the State of Nebraska or to any political subdivision
of the state, except for assessments under the Nebraska Workers' Compensation
Act and any combined tax due or payments in lieu of contributions as required
under the Employment Security Law. The bonds issued under the Municipal Inland
Port Authority Act, the interest thereon, the proceeds received by a holder
from the sale of such bonds to the extent of the holder's cost of acquisition,
or proceeds received upon redemption prior to maturity, proceeds received at
maturity, and the receipt of such interest and proceeds of every inland port
authority and the income therefrom shall, at all times, be exempt from any
taxes and any assessments, except for inheritance and gift taxes and taxes on
transfers. Any real or personal property subject to a lease agreement of an
inland port authority, whether the authority is lessee or lessor, shall be
exempt from property taxation pursuant to section 77-202.
Sec. 75. Section 14-102, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
14-102 In addition to the powers granted in section 14-101, cities of the
metropolitan class shall have power by ordinance:
(1) To levy any tax or special assessment authorized by law;
(2) To provide a corporate seal for the use of the city, and also any
official seal for the use of any officer, board, or agent of the city, whose
duties require an official seal to be used. Such corporate seal shall be used
in the execution of municipal bonds, warrants, conveyances, and other
instruments and proceedings as required by law;
(3) To provide all needful rules and regulations for the protection and
preservation of health within the city, including providing for the enforcement
of the use of water from public water supplies when the use of water from other
sources shall be deemed unsafe;
(4) To appropriate money and provide for the payment of debts and expenses
of the city;
(5) To adopt all such measures as may be deemed necessary for the
accommodation and protection of strangers and the traveling public in person
and property;
(6) To punish and prevent the discharge of firearms, fireworks, or
explosives of any description within the city, other than the discharge of
firearms at a shooting range pursuant to the Nebraska Shooting Range Protection
Act;
(7) To regulate the inspection and sale of meats, flour, poultry, fish,
milk, vegetables, and all other provisions or articles of food exposed or
offered for sale in the city;
(8) To require all elected or appointed officers to give bond and security
for the faithful performance of their duties, except that no officer shall
become bonded and secured upon the official bond of another or upon any bond
executed to the city;
(9) To require from any officer of the city at any time a report, in
detail, of the transactions of his or her office or any matter connected with
such office;
(10) To provide for the prevention of cruelty to children and animals;
(11) To regulate, license, or prohibit the running at large of dogs and
other animals within the city as well as in areas within the extraterritorial
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zoning jurisdiction of the city; to guard against injuries or annoyance from
such dogs and other animals; and to authorize the destruction of such dogs and
other animals when running at large contrary to the provisions of any
ordinance. Any licensing provision shall comply with subsection (2) of section
54-603 for service animals;
(12) To provide for keeping sidewalks clean and free from obstructions and
accumulations; to provide for the assessment and collection of taxes on real
estate and for the sale and conveyance thereof; and to pay the expenses of
keeping the sidewalk adjacent to such real estate clean and free from
obstructions and accumulations as provided by law;
(13) To provide for the planting and protection of shade or ornamental and
useful trees upon streets or boulevards; to assess the cost of such trees to
the extent of benefits upon the abutting property as a special assessment; to
provide for the protection of birds and animals and their nests; to provide for
the trimming of trees located upon streets and boulevards or when the branches
of trees overhang streets and boulevards when in the judgment of the mayor and
city council such trimming is made necessary to properly light such street or
boulevard or to furnish proper police protection; and to assess the cost of
such trimming upon the abutting property as a special assessment;
(14) To provide for, regulate, and require the numbering or renumbering of
houses along public streets or avenues; and to care for and control and to name
and rename streets, avenues, parks, and squares within the city;
(15) To require weeds and worthless vegetation growing upon any lot or
piece of ground within the city or its extraterritorial zoning jurisdiction to
be cut and destroyed so as to abate any nuisance occasioned by such vegetation;
to prohibit and control the throwing, depositing, or accumulation of litter on
any lot or piece of ground within the city or its extraterritorial zoning
jurisdiction; to require the removal of such litter so as to abate any nuisance
occasioned thereby. If the owner fails to cut and destroy weeds and worthless
vegetation or remove litter, or both, after notice as required by ordinance,
the city may assess the cost of such destruction or removal upon the lots or
lands as a special assessment. The required notice may be by publication in the
official newspaper of the city and may be directed in general terms to the
owners of lots and lands affected without naming such owners;
(16) To prohibit and regulate the running at large or the herding or
driving of domestic animals, such as hogs, cattle, horses, sheep, goats, fowls,
or animals of any kind or description within the corporate limits; to provide
for the impounding of all animals running at large, herded, or driven contrary
to such prohibition and regulations; and to provide for the forfeiture and sale
of animals impounded to pay the expense of taking up, caring for, and selling
such impounded animals, including the cost of advertising and fees of officers;
(17) To regulate the transportation of articles through the streets and to
prevent injuries to the streets from overloaded vehicles;
(18) To prevent or regulate any amusement or practice having a tendency to
annoy persons passing in the streets or on the sidewalks; and to regulate the
use of vehicles propelled by steam, gas, electricity, or other motive power,
operated on the streets of the city;
(19) To regulate or prohibit the transportation and keeping of gunpowder,
oils, and other combustible and explosive articles;
(20) To regulate, license, or prohibit the sale of domestic animals or of
goods, wares, and merchandise at public auction on the streets, alleys,
highways, or any public ground within the city;
(21) To regulate and prevent the use of streets, sidewalks, and public
grounds for signs, posts, awnings, awning posts, scales, or other like
purposes; and to regulate and prohibit the exhibition or carrying or conveying
of banners, placards, advertisements, or the distribution or posting of
advertisements or handbills in the streets or public grounds or upon the
sidewalks;
(22) To provide for the punishment of persons disturbing the peace by
noise, intoxication, drunkenness, or fighting, or otherwise violating the
public peace by indecent or disorderly conduct or by lewd and lascivious
behavior;
(23) To provide for the punishment of vagrants, tramps, street beggars,
prostitutes, disturbers of the peace, pickpockets, gamblers, burglars, thieves,
persons who practice any game, trick, or device with intent to swindle, and
trespassers upon private property;
(24) To prohibit, restrain, and suppress houses of prostitution, opium
joints, gambling houses, prize fighting, dog fighting, cock fighting, and other
disorderly houses and practices, all games and gambling, and all kinds of
indecencies; to regulate and license or prohibit the keeping and use of
billiard tables, bowling alleys, shooting galleries except as provided in the
Nebraska Shooting Range Protection Act, and other similar places of amusement;
and to prohibit and suppress all lotteries and gift enterprises of all kinds
under whatsoever name carried on, except that nothing in this subdivision shall
be construed to apply to bingo, lotteries, lotteries by the sale of pickle
cards, or raffles conducted in accordance with the Nebraska Bingo Act, the
Nebraska Lottery and Raffle Act, the Nebraska Pickle Card Lottery Act, the
Nebraska Small Lottery and Raffle Act, or the State Lottery Act;
(25) To make and enforce all police regulations for the good government,
general welfare, health, safety, and security of the city and the citizens of
the city in addition to the police powers expressly granted by law; in the
exercise of the police power, to pass all needful and proper ordinances and
impose fines, forfeitures, and penalties for the violation of any ordinance; to
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provide for the recovery, collection, and enforcement of such fines; and in
default of payment to provide for confinement in the city or county prison or
other place of confinement as may be provided by ordinance;
(26) To prevent immoderate driving on the street;
(27) To establish and maintain public libraries, art galleries, and
museums and to provide the necessary grounds or buildings for such libraries,
galleries, and museums; to purchase books, papers, maps, manuscripts, works of
art, and objects of natural or of scientific curiosity and instruction for such
libraries, galleries, and museums; to receive donations and bequests of money
or property for such libraries, galleries, and museums in trust or otherwise;
and to pass necessary bylaws and regulations for the protection and government
of such libraries, art galleries, and museums;
(28) To erect, designate, establish, maintain, and regulate hospitals,
houses of correction, jails, station houses, fire engine houses, asphalt repair
plants, and other necessary buildings; to erect, designate, establish,
maintain, and regulate plants for the removal, disposal, or recycling of
garbage and refuse or to make contracts for garbage and refuse removal,
disposal, or recycling, or all of the same; and to charge equitable fees for
such removal, disposal, or recycling, or all of the same, except as provided by
law. The fees collected pursuant to this subdivision shall be credited to a
single fund to be used exclusively by the city for the removal, disposal, or
recycling of garbage and refuse, or all of the same, including any costs
incurred for collecting the fee. Before any contract for such removal,
disposal, or recycling is let, the city council shall make specifications for
such contract, bids shall be advertised for as now provided by law, and the
contract shall be let to the lowest and best bidder, who shall furnish bond to
the city conditioned upon his or her carrying out the terms of the contract,
the bond to be approved by the city council. Nothing in this section, and no
contract or regulation made by the city council, shall be so construed as to
prohibit any person, firm, or corporation engaged in any business in which
garbage or refuse accumulates as a byproduct from selling, recycling, or
otherwise disposing of his, her, or its garbage or refuse or hauling such
garbage or refuse through the streets and alleys under such uniform and
reasonable regulations as the city council may by ordinance prescribe for the
removal and hauling of garbage or refuse;
(29) To erect and establish market houses and market places and to provide
for the erection of all other useful and necessary buildings for the use of the
city and for the protection and safety of all property owned by the city. Such
market houses, market places, and buildings may be located on any street,
alley, or public ground or on land purchased for such purpose;
(30) To prohibit the establishment of additional cemeteries within the
limits of the city; to regulate the registration of births and deaths; to
direct the keeping and returning of bills of mortality; and to impose penalties
on physicians, sextons, and others for any default in the premises;
(31) To provide for the inspection of steam boilers, electric light
appliances, pipefittings, and plumbings; to regulate their erection and
construction; to appoint inspectors; and to declare their powers and duties,
except as otherwise provided by law;
(32) To enact a fire code and regulate the erection of all buildings and
other structures within the corporate limits; to provide for the removal of any
buildings or structures or additions to buildings or structures erected
contrary to such code or regulations and to provide for the removal of
dangerous buildings; but no such code or regulation shall be suspended or
modified by resolution, nor shall exceptions be made by ordinance or resolution
in favor of any person, firm, or corporation or concerning any particular lot
or building; to direct that when any building has been damaged by fire, decay,
or otherwise, to the extent of fifty percent of the value of a similar new
building above the foundation, shall be torn down or removed; to prescribe the
manner of ascertaining such damages and to assess the cost of removal of any
building erected or existing contrary to such code or regulations against the
lot or real estate upon which such building or structure is located or shall be
erected or to collect such costs from the owner of any such building or
structure; and to enforce the collection of such costs by civil action in any
court of competent jurisdiction;
(33) To regulate the construction, use, and maintenance of party walls, to
prescribe and regulate the thickness, strength, and manner of constructing
stone, brick, wood, or other buildings and the size and shape of brick and
other material placed in such buildings; to prescribe and regulate the
construction and arrangement of fire escapes and the placing of iron and
metallic shutters and doors in or on such fire escapes; to provide for the
inspection of elevators; to prescribe, regulate, and provide for the inspection
of all plumbing, pipefitting, or sewer connections in all houses or buildings
now or hereafter erected; to regulate the size, number, and manner of
construction of halls, doors, stairways, seats, aisles, and passageways of
theaters and buildings of a public character, whether now built or hereafter to
be built, so that there may be convenient, safe, and speedy exit in case of
fire; to prevent the dangerous construction and condition of chimneys,
fireplaces, hearths, stoves, stovepipes, ovens, boilers, and heating appliances
used in or about any building and to cause such appliances to be removed or
placed in safe condition when they are considered dangerous; to prevent the
deposit of ashes in unsafe places and to cause such buildings and enclosures as
may be in a dangerous state to be put in a safe condition; to prevent the
disposing of and delivery or use in any building or other structure of
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unsuitable building material within the city limits and provide for the
inspection of building materials; to provide for the abatement of dense volumes
of smoke; to regulate the construction of areaways, stairways, and vaults and
to regulate partition fences; and to enforce proper heating and ventilation of
buildings used for schools or other buildings where large numbers of persons
are liable to congregate;
(34) To regulate levees, depots and depot grounds, and places for storing
freight and goods and to provide for and regulate the laying of tracks and the
passage of railways through the streets, alleys, and public grounds of the
city;
(35) To require the lighting of any railway within the city and to fix and
determine the number, size, and style of all fixtures and apparatus necessary
for such lighting and the points of location for such lampposts. If any company
owning or operating such railways shall fail to comply with such requirements,
the city council may cause such lighting to be done and may assess the expense
of such lighting against such company. Such expense shall constitute a lien
upon any real estate belonging to such company and lying within such city and
may be collected in the same manner as taxes for general purposes;
(36) To provide for necessary publicity and to appropriate money for the
purpose of advertising the resources and advantages of the city;
(37) To erect, establish, and maintain offstreet parking areas on publicly
owned property located beneath any elevated segment of the National System of
Interstate and Defense Highways or portion thereof, or public property title to
which is in the city on May 12, 1971, or property owned by the city and used in
conjunction with and incidental to city-operated facilities; and to regulate
parking on such property by time limitation devices or by lease;
(38) To acquire, by the exercise of the power of eminent domain or
otherwise, lease, purchase, construct, own, maintain, operate, or contract for
the operation of public passenger transportation systems, excluding taxicabs,
transportation network companies and railroad systems, including all property
and facilities required for such public passenger transportation systems,
within and without the limits of the city; to redeem such property from prior
encumbrance in order to protect or preserve the interest of the city in such
property; to exercise all powers granted by the Constitution of Nebraska and
laws of the State of Nebraska or exercised by or pursuant to a home rule
charter adopted pursuant thereto, including, but not limited to, receiving and
accepting from the government of the United States or any agency thereof, from
the State of Nebraska or any subdivision thereof, and from any person or
corporation donations, devises, gifts, bequests, loans, or grants for or in aid
of the acquisition, operation, and maintenance of such public passenger
transportation systems; to administer, hold, use, and apply such donations,
devises, gifts, bequests, loans, or grants for the purposes for which such
donations, devises, gifts, bequests, loans, or grants may have been made; to
negotiate with employees and enter into contracts of employment; to employ by
contract or otherwise individuals singularly or collectively; to enter into
agreements authorized under the Interlocal Cooperation Act or the Joint Public
Agency Act; to contract with an operating and management company for the
purpose of operating, servicing, and maintaining any public passenger
transportation systems the city shall acquire; and to exercise such other and
further powers as may be necessary, incident, or appropriate to the powers of
the city; and
(39) In addition to powers conferred elsewhere in the laws of the state,
to implement and enforce an air pollution control program within the corporate
limits of the city under subdivision (23) of section 81-1504 or subsection (1)
of section 81-1528, which program shall be consistent with the federal Clean
Air Act, as amended, 42 U.S.C. 7401 et seq. Such powers shall include without
limitation those involving injunctive relief, civil penalties, criminal fines,
and burden of proof. Nothing in this section shall preclude the control of air
pollution by resolution, ordinance, or regulation not in actual conflict with
state air pollution control regulations; and .
(40) To regulate any housing agency in a city of the metropolitan class,
with respect to:
(a) Providing for code enforcement for all properties owned and controlled
by such housing agency;
(b) Providing for complaint-based inspections of all properties managed by
such housing agency;
(c) Requiring all properties managed by such housing agency to be
registered pursuant to any rental registration ordinance adopted by such city
of the metropolitan class;
(d) Setting penalties for code violations and failure to properly manage
properties; and
(e) Requiring monthly updates to the city council of such city of the
metropolitan class. Such update shall include complaint information on pest
control issues and any mitigation efforts completed by the housing agency.
Sec. 76. Section 18-2102, Revised Statutes Supplement, 2025, is amended to
read:
18-2102 It is hereby found and declared that there exist in cities of all
classes and villages of this state areas which have deteriorated and become
substandard and blighted because of the unsafe, insanitary, inadequate, or
overcrowded condition of the dwellings therein, or because of inadequate
planning of the area, or excessive land coverage by the buildings thereon, or
the lack of proper light and air and open space, or because of the defective
design and arrangement of the buildings thereon, or faulty street or lot
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layout, or congested traffic conditions, or economically or socially
undesirable land uses, or the lack of affordable housing in the area , or the
existence of underdeveloped parcels that have been within the extraterritorial
zoning jurisdiction of the city for more than twenty-five years . Such
conditions or a combination of some or all of them have resulted and will
continue to result in making such areas economic or social liabilities harmful
to the social and economic well-being of the entire communities in which they
exist, needlessly increasing public expenditures, imposing onerous municipal
burdens, decreasing the tax base, reducing tax revenue, substantially impairing
or arresting the sound growth of municipalities, aggravating traffic problems,
substantially impairing or arresting the elimination of traffic hazards and the
improvement of traffic facilities, and depreciating general community-wide
values. The existence of such areas contributes substantially and increasingly
to the spread of disease and crime, necessitating excessive and
disproportionate expenditures of public funds for the preservation of the
public health and safety, for crime prevention, correction, prosecution,
punishment and the treatment of juvenile delinquency, and for the maintenance
of adequate police, fire, and accident protection and other public services and
facilities. These conditions are beyond remedy and control solely by regulatory
process in the exercise of the police power and cannot be dealt with
effectively by the ordinary operations of private enterprise without the aids
herein provided. The elimination of such conditions and the acquisition and
preparation of land in or necessary to the renewal of substandard and blighted
areas and its sale or lease for development or redevelopment in accordance with
general plans and redevelopment plans of communities and any assistance which
may be given by any state public body in connection therewith are public uses
and purposes for which public money may be expended and private property
acquired. The necessity in the public interest for the provisions of the
Community Development Law is hereby declared to be a matter of legislative
determination.
It is further found and declared that the prevention and elimination of
blight is a matter of state policy, public interest, and statewide concern and
within the powers and authority inhering in and reserved to the state, in order
that the state and its municipalities shall not continue to be endangered by
areas which are focal centers of disease, promote juvenile delinquency, and
consume an excessive proportion of their revenue.
It is further found and declared that certain substandard and blighted
areas, or portions thereof, may require acquisition, clearance, and
disposition, subject to use restrictions, as provided in the Community
Development Law, since the prevailing conditions of decay may make
impracticable the reclamation of the area by conservation or rehabilitation;
that other areas or portions thereof may, through the means provided in the
Community Development Law, be susceptible of conservation or rehabilitation in
such a manner that the conditions and evils, hereinbefore enumerated, may be
eliminated, remedied, or prevented; and that salvageable substandard and
blighted areas can be conserved and rehabilitated through appropriate public
action and the cooperation and voluntary action of the owners and tenants of
property in such areas.
Sec. 77. Section 18-2103, Revised Statutes Supplement, 2025, is amended to
read:
18-2103 For purposes of the Community Development Law, unless the context
otherwise requires:
(1) Affordable housing means (a) workforce housing, (b) housing targeted
for households earning less than one hundred fifty percent of the median income
for the county in which such housing is located, or (c) housing under section
42 of the Internal Revenue Code;
(2) Area of operation means and includes the area within the corporate
limits of the city , the land that lies within the city's extraterritorial
zoning jurisdiction, and such land outside the city and outside the city's
extraterritorial zoning jurisdiction as may come within the purview of section
sections 18-2123 and 18-2123.01;
(3) Authority means any community redevelopment authority created pursuant
to section 18-2102.01 and any community development agency created pursuant to
section 18-2101.01 and does not include a limited community redevelopment
authority;
(4) Blighted area means an area (a) which, by reason of the presence of a
substantial number of deteriorated or deteriorating structures, existence of
defective or inadequate street layout, faulty lot layout in relation to size,
adequacy, accessibility, or usefulness, insanitary or unsafe conditions,
deterioration of site or other improvements, diversity of ownership, tax or
special assessment delinquency exceeding the fair value of the land, defective
or unusual conditions of title, improper subdivision, obsolete or no platting,
or the existence of conditions which endanger life or property by fire and
other causes, or the existence of underdeveloped parcels that have been within
the extraterritorial zoning jurisdiction of the city for more than twenty-five
years, or any combination of such factors, substantially impairs or arrests the
sound growth of the community, retards the provision of housing accommodations,
or constitutes an economic or social liability and is detrimental to the public
health, safety, morals, or welfare in its present condition and use and (b) in
which there is at least one of the following conditions: (i) Unemployment in
the designated area is at least one hundred twenty percent of the state or
national average; (ii) the average age of the residential or commercial units
in the area is at least forty years; (iii) more than half of the plotted and
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subdivided property in an area is unimproved land that has been within the city
for forty years and has remained unimproved during that time; (iv) the per
capita income of the area is lower than the average per capita income of the
city or village in which the area is designated; (v) the area has had either
stable or decreasing population based on the last two decennial censuses; or
(vi) less than twenty percent of the housing in the area is affordable housing.
In no event shall a city of the metropolitan, primary, or first class designate
more than thirty-five percent of the city and the city's extraterritorial
zoning jurisdiction as blighted, a city of the second class shall not designate
an area larger than fifty percent of the city and the city's extraterritorial
zoning jurisdiction as blighted, and a village shall not designate an area
larger than one hundred percent of the village and the village's
extraterritorial zoning jurisdiction as blighted. A redevelopment project
involving a formerly used defense site as authorized under section 18-2123.01,
any area which is located within a good life district established under the
Good Life Transformational Projects Act, and any area declared to be an
extremely blighted area under section 18-2101.02 shall not count towards the
percentage limitations contained in this subdivision;
(5) Bonds means any bonds, including refunding bonds, notes, interim
certificates, debentures, or other obligations issued pursuant to the Community
Development Law except for bonds issued pursuant to section 18-2142.04;
(6) Business means any private business located in an enhanced employment
area;
(7) City means any city or incorporated village in the state;
(8) Clerk means the clerk of the city or village;
(9) Community redevelopment area means a substandard and blighted area
which the community redevelopment authority designates as appropriate for a
redevelopment project;
(10) Employee means a person employed at a business as a result of a
redevelopment project;
(11) Employer-provided health benefit means any item paid for by the
employer in total or in part that aids in the cost of health care services,
including, but not limited to, health insurance, health savings accounts, and
employer reimbursement of health care costs;
(12) Enhanced employment area means an area not exceeding six hundred
acres (a) within a community redevelopment area which is designated by an
authority as eligible for the imposition of an occupation tax or (b) not within
a community redevelopment area as may be designated under section 18-2142.04;
(13) Equivalent employees means the number of employees computed by (a)
dividing the total hours to be paid in a year by (b) the product of forty times
the number of weeks in a year;
(14) Extremely blighted area means: a
(a) A substandard and blighted area in which: (i) (a) The average rate of
unemployment in the area during the period covered by the most recent American
Community Survey 5-Year Estimate is at least one hundred fifty two hundred
percent of the average rate of unemployment in the state during the same
period; and (ii) (b) the average poverty rate in the area exceeds fifteen
twenty percent for the total federal census tract or tracts or federal census
block group or block groups in the area; or
(b) A substandard and blighted area that has a higher-than-average
unemployment rate and a higher-than-average poverty rate when compared to the
rest of the state, as determined by the governing body of the city. In making
such determination, the governing body may use any information available to
such governing body. This subdivision (b) shall only apply if the governing
body determines that the federal data described in subdivision (14)(a) of this
section is unreliable or lacking for the area in question;
(15) Federal government means the United States of America, or any agency
or instrumentality, corporate or otherwise, of the United States of America;
(16) Governing body or local governing body means the city council, board
of trustees, or other legislative body charged with governing the municipality;
(17) Limited community redevelopment authority means a community
redevelopment authority created pursuant to section 18-2102.01 having only one
single specific limited pilot project authorized;
(18) Mayor means the mayor of the city or chairperson of the board of
trustees of the village;
(19) New investment means the value of improvements to real estate made in
an enhanced employment area by a developer or a business;
(20) Number of new employees means the number of equivalent employees that
are employed at a business as a result of the redevelopment project during a
year that are in excess of the number of equivalent employees during the year
immediately prior to the year that a redevelopment plan is adopted;
(21) Obligee means any bondholder, agent, or trustee for any bondholder,
or lessor demising to any authority, established pursuant to section
18-2102.01, property used in connection with a redevelopment project, or any
assignee or assignees of such lessor's interest or any part thereof, and the
federal government when it is a party to any contract with such authority;
(22) Occupation tax means a tax imposed under section 18-2142.02;
(23) Person means any individual, firm, partnership, limited liability
company, corporation, company, association, joint-stock association, or body
politic and includes any trustee, receiver, assignee, or other similar
representative thereof;
(24) Public body means the state or any municipality, county, township,
board, commission, authority, district, or other political subdivision or
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public body of the state;
(25) Real property means all lands, including improvements and fixtures
thereon, and property of any nature appurtenant thereto, or used in connection
therewith, and every estate, interest and right, legal or equitable, therein,
including terms for years and liens by way of judgment, mortgage, or otherwise,
and the indebtedness secured by such liens;
(26) Redeveloper means any person, partnership, or public or private
corporation or agency which enters or proposes to enter into a redevelopment
contract;
(27) Redevelopment contract means a contract entered into between an
authority and a redeveloper for the redevelopment of an area in conformity with
a redevelopment plan;
(28) Redevelopment plan means a plan, as it exists from time to time for
one or more community redevelopment areas, or for a redevelopment project,
which (a) conforms to the general plan for the municipality as a whole and (b)
is sufficiently complete to indicate such land acquisition, demolition and
removal of structures, redevelopment, improvements, and rehabilitation as may
be proposed to be carried out in the community redevelopment area, zoning and
planning changes, if any, land uses, maximum densities, and building
requirements;
(29) Redevelopment project means any work or undertaking in one or more
community redevelopment areas: (a) To acquire substandard and blighted areas or
portions thereof, including lands, structures, or improvements the acquisition
of which is necessary or incidental to the proper clearance, development, or
redevelopment of such substandard and blighted areas; (b) to clear any such
areas by demolition or removal of existing buildings, structures, streets,
utilities, or other improvements thereon and to install, construct, or
reconstruct streets, utilities, parks, playgrounds, public spaces, public
parking facilities, sidewalks or moving sidewalks, convention and civic
centers, bus stop shelters, lighting, benches or other similar furniture, trash
receptacles, shelters, skywalks and pedestrian and vehicular overpasses and
underpasses, enhancements to structures in the redevelopment plan area which
exceed minimum building and design standards in the community and prevent the
recurrence of substandard and blighted conditions, and any other necessary
public improvements essential to the preparation of sites for uses in
accordance with a redevelopment plan; (c) to sell, lease, or otherwise make
available land in such areas for residential, recreational, commercial,
industrial, or other uses, including parking or other facilities functionally
related or subordinate to such uses, or for public use or to retain such land
for public use, in accordance with a redevelopment plan; and may also include
the preparation of the redevelopment plan, the planning, survey, and other work
incident to a redevelopment project and the preparation of all plans and
arrangements for carrying out a redevelopment project; (d) to dispose of all
real and personal property or any interest in such property, or assets, cash,
or other funds held or used in connection with residential, recreational,
commercial, industrial, or other uses, including parking or other facilities
functionally related or subordinate to such uses, or any public use specified
in a redevelopment plan or project, except that such disposition shall be at
its fair value for uses in accordance with the redevelopment plan; (e) to
acquire real property in a community redevelopment area which, under the
redevelopment plan, is to be repaired or rehabilitated for dwelling use or
related facilities, repair or rehabilitate the structures, and resell the
property; (f) to carry out plans for a program of voluntary or compulsory
repair, rehabilitation, or demolition of buildings in accordance with the
redevelopment plan; and (g) to carry out construction of affordable housing ;
and (h) to carry out the development of underdeveloped parcels that have been
within the extraterritorial zoning jurisdiction of the city for more than
twenty-five years;
(30) Redevelopment project valuation means the valuation for assessment of
the taxable real property in a redevelopment project last certified for the
year prior to the effective date of the provision authorized in section
18-2147;
(31) Rural community means any municipality in a county with a population
of fewer than one hundred thousand inhabitants as determined by the most recent
federal decennial census;
(32) Substandard area means (a) an area in which less than twenty percent
of the housing is affordable housing , (b) an area or in which there is a
predominance of buildings or improvements, whether nonresidential or
residential in character, which, by reason of dilapidation, deterioration, age
or obsolescence, inadequate provision for ventilation, light, air, sanitation,
or open spaces, high density of population and overcrowding, or the existence
of conditions which endanger life or property by fire and other causes, or any
combination of such factors, is conducive to ill health, transmission of
disease, infant mortality, juvenile delinquency, and crime, (which cannot be
remedied through construction of prisons), and is detrimental to the public
health, safety, morals, or welfare , or (c) an area within the city's
extraterritorial zoning jurisdiction that contains underdeveloped parcels that
have been underdeveloped for more than twenty-five years; and
(33) Workforce housing means:
(a) Housing that meets the needs of today's working families;
(b) Housing that is attractive to new residents considering relocation to
a rural community;
(c) Owner-occupied housing units that cost not more than two hundred
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seventy-five thousand dollars to construct or rental housing units that cost
not more than two hundred thousand dollars per unit to construct. For purposes
of this subdivision (c), housing unit costs shall be updated annually by the
Department of Economic Development based upon the most recent increase or
decrease in the Producer Price Index for all commodities, published by the
United States Department of Labor, Bureau of Labor Statistics;
(d) Owner-occupied and rental housing units for which the cost to
substantially rehabilitate exceeds fifty percent of a unit's assessed value;
and
(e) Upper-story housing.
Sec. 78. Section 18-2108, Reissue Revised Statutes of Nebraska, is amended
to read:
18-2108 An authority shall not acquire real property for a redevelopment
project within the corporate limits of a city or a city's extraterritorial
zoning jurisdiction unless the governing body of such the city in which the
redevelopment project area is located has approved the redevelopment plan, as
prescribed in section 18-2116 or 18-2155.
Sec. 79. Section 18-2123, Reissue Revised Statutes of Nebraska, is amended
to read:
18-2123 Upon a determination, by resolution, of the governing body of the
city in which such land is located, that the acquisition and development of
undeveloped vacant land, not within a substandard and blighted area, is
essential to the proper clearance or redevelopment of substandard and blighted
areas or a necessary part of the general community redevelopment program of the
city, or that the acquisition and development of land outside the city, but
within a radius of three miles thereof, is necessary or convenient to the
proper clearance or redevelopment of one or more substandard and blighted areas
within the city or is a necessary adjunct to the general community
redevelopment program of the city, the acquisition, planning, and preparation
for development or disposal of such land shall constitute a redevelopment
project which may be undertaken by the authority in the manner provided in the
Community Development Law.
Sec. 80. Section 18-2123.01, Reissue Revised Statutes of Nebraska, is
amended to read:
18-2123.01 (1) Notwithstanding any other provisions of the Community
Development Law to the contrary, a city may undertake a redevelopment project
that includes real property located outside the corporate limits of such city
and outside the city's extraterritorial zoning jurisdiction if the following
requirements have been met:
(a) The real property located outside the corporate limits of the city and
outside the city's extraterritorial zoning jurisdiction is a formerly used
defense site;
(b) The formerly used defense site is located within the same county as
the city approving such redevelopment project;
(c) The formerly used defense site is located within a sanitary and
improvement district;
(d) The governing body of the city approving such redevelopment project
passes an ordinance stating such city's intent to annex the formerly used
defense site in the future; and
(e) The redevelopment project has been consented to by any city exercising
extraterritorial jurisdiction over the formerly used defense site.
(2) For purposes of this section, formerly used defense site means real
property that was formerly owned by, leased to, or otherwise possessed by the
United States and under the jurisdiction of the United States Secretary of
Defense. Formerly used defense site does not include missile silos.
(3) The inclusion of a formerly used defense site in any redevelopment
project under this section shall not result in:
(a) Any change in the service area of any electric utility or natural gas
utility unless such change has been agreed to by the electric utility or
natural gas utility serving the formerly used defense site at the time of
approval of such redevelopment project; or
(b) Any change in the service area of any communications company as
defined in section 77-2734.04 unless (i) such change has been agreed to by the
communications company serving the formerly used defense site at the time of
approval of such redevelopment project or (ii) such change occurs pursuant to
sections 86-135 to 86-138.
(4) A city approving a redevelopment project under this section and the
county in which the formerly used defense site is located may enter into an
agreement pursuant to the Interlocal Cooperation Act in which the county agrees
to reimburse such city for any services the city provides to the formerly used
defense site after approval of the redevelopment project.
Sec. 81. Section 18-2147, Revised Statutes Supplement, 2025, is amended to
read:
18-2147 (1) Any redevelopment plan as originally approved or as later
modified pursuant to section 18-2117 may contain a provision that any ad
valorem tax levied upon real property, or any portion thereof, in a
redevelopment project for the benefit of any public body shall be divided, for
the applicable period described in subsection (4) of this section, as follows:
(a) That portion of the ad valorem tax which is produced by the levy at
the rate fixed each year by or for each such public body upon the redevelopment
project valuation shall be paid into the funds of each such public body in the
same proportion as are all other taxes collected by or for the body. When there
is not a redevelopment project valuation on a parcel or parcels, the county
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assessor shall determine the redevelopment project valuation based upon the
fair market valuation of the parcel or parcels as of January 1 of the year
prior to the year that the ad valorem taxes are to be divided. The county
assessor shall provide written notice of the redevelopment project valuation to
the authority as defined in section 18-2103 and the owner. The authority or
owner may protest the valuation to the county board of equalization within
thirty days after the date of the valuation notice. All provisions of section
77-1502 except dates for filing of a protest, the period for hearing protests,
and the date for mailing notice of the county board of equalization's decision
are applicable to any protest filed pursuant to this section. The county board
of equalization shall decide any protest filed pursuant to this section within
thirty days after the filing of the protest. The county clerk shall mail a copy
of the decision made by the county board of equalization on protests pursuant
to this section to the authority or owner within seven days after the board's
decision. Any decision of the county board of equalization may be appealed to
the Tax Equalization and Review Commission, in accordance with section 77-5013,
within thirty days after the date of the decision;
(b) That portion of the ad valorem tax on real property, as provided in
the redevelopment contract, bond resolution, or redevelopment plan, as
applicable, in the redevelopment project in excess of such amount, if any,
shall be allocated to and, when collected, paid into a special fund of the
authority to be used solely to pay the principal of, the interest on, and any
premiums due in connection with the bonds of, loans, notes, or advances of
money to, or indebtedness incurred by, whether funded, refunded, assumed, or
otherwise, such authority for financing or refinancing, in whole or in part,
the redevelopment project. When such bonds, loans, notes, advances of money, or
indebtedness, including interest and premiums due, have been paid, the
authority shall so notify the county assessor and county treasurer and all ad
valorem taxes upon taxable real property in such a redevelopment project shall
be paid into the funds of the respective public bodies. An authority may use a
single fund for purposes of this subdivision for all redevelopment projects or
may use a separate fund for each redevelopment project; and
(c) Any interest and penalties due for delinquent taxes shall be paid into
the funds of each public body in the same proportion as are all other taxes
collected by or for the public body.
(2) To the extent that a redevelopment plan authorizes the division of ad
valorem taxes levied upon only a portion of the real property included in such
redevelopment plan, any improvements funded by such division of taxes shall be
related to the redevelopment plan that authorized such division of taxes.
(3)(a) For any redevelopment plan located in a city of the metropolitan
class that includes a division of taxes, as provided in this section, that
produces, in whole or in part, funds to be used directly or indirectly for (i)
new construction, rehabilitation, or acquisition of housing for households with
annual incomes below the area median income for households and located within
six hundred yards of a public passenger streetcar or (ii) new construction,
rehabilitation, or acquisition of single-family housing or condominium housing
used as primary residences for individuals with annual incomes below the area
median income for individuals, such housing shall be deemed related to the
redevelopment plan that authorized such division of taxes regardless of whether
such housing is or will be located on real property within such redevelopment
plan, as long as such housing supports activities occurring on or identified in
such redevelopment plan.
(b) During each fiscal year in which the funds described in subdivision
(a) of this subsection are available, the authority and city shall make best
efforts to allocate not less than thirty percent of such funds to single-family
housing deemed related to the redevelopment plan described under such
subdivision.
(c) In selecting projects to receive funding, the authority and city shall
develop a qualified allocation plan and give first priority to financially
viable projects that serve the lowest income occupants for the longest period
of time.
(4)(a) For any redevelopment plan for which more than fifty percent of the
property in the redevelopment project area has been declared an extremely
blighted area in accordance with section 18-2101.02, ad valorem taxes shall be
divided for a period not to exceed twenty years after the effective date as
identified in the project redevelopment contract or in the resolution of the
authority authorizing the issuance of bonds pursuant to section 18-2124.
(b) For all other redevelopment plans, ad valorem taxes shall be divided
for a period not to exceed fifteen years after the effective date as identified
in the project redevelopment contract, in the resolution of the authority
authorizing the issuance of bonds pursuant to section 18-2124, or in the
redevelopment plan, whichever is applicable.
(5) The effective date of a provision dividing ad valorem taxes as
provided in subsection (4) of this section shall not occur until such time as
the real property in the redevelopment project is within the corporate
boundaries of the city or within the city's extraterritorial zoning
jurisdiction. This subsection shall not apply to a redevelopment project
involving a formerly used defense site as authorized in section 18-2123.01.
(6) All notices of the provision for dividing ad valorem taxes shall be
sent by the authority to the county assessor on forms prescribed by the
Property Tax Administrator. The notice shall be sent to the county assessor on
or before July 1 of the year of the effective date of the provision. Failure to
satisfy the notice requirement of this section shall result in the taxes, for
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all taxable years affected by the failure to give notice of the effective date
of the provision, remaining undivided and being paid into the funds for each
public body receiving property taxes generated by the property in the
redevelopment project. However, the redevelopment project valuation for the
remaining division of ad valorem taxes in accordance with subdivisions (1)(a)
and (b) of this section shall be the last certified valuation for the taxable
year prior to the effective date of the provision to divide the taxes for the
remaining portion of the twenty-year or fifteen-year period pursuant to
subsection (4) of this section.
Sec. 82. Section 18-2155, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
18-2155 (1) The governing body of a city may elect by resolution to allow
expedited reviews of redevelopment plans that meet the requirements of
subsection (2) of this section. A redevelopment plan that receives an expedited
review pursuant to this section shall be exempt from the requirements of
sections 18-2111 to 18-2115 and 18-2116.
(2) A redevelopment plan is eligible for expedited review under this
section if:
(a) The redevelopment plan includes only one redevelopment project;
(b) The redevelopment project involves:
(i) The repair, rehabilitation, or replacement of an existing structure
that has been within the corporate limits of the city or the city's
extraterritorial zoning jurisdiction for at least twenty-five sixty years and
is located within a substandard and blighted area; or
(ii) The redevelopment of a vacant platted lot or nonconforming lot of
record that is located within a substandard and blighted area that has been
within the corporate limits of the city or the city's extraterritorial zoning
jurisdiction for at least twenty-five sixty years and has been platted or
recorded for at least twenty-five sixty years;
(c) The redevelopment project is located in a county with a population of
less than one hundred thousand inhabitants; and
(d) The assessed value of the property within the redevelopment project
area when the project is complete is estimated to be no more than:
(i) Three hundred fifty thousand dollars for a redevelopment project
involving a single-family residential structure;
(ii) One million five hundred thousand dollars for a redevelopment project
involving a multi-family residential structure or commercial structure; or
(iii) Ten million dollars for a redevelopment project involving the
revitalization of a structure included in the National Register of Historic
Places.
(3) The governing body of a city that elects to allow expedited reviews of
redevelopment plans under this section may establish by resolution an annual
limit on the number of such redevelopment plans that may be approved by the
governing body.
(4) The expedited review shall consist of the following steps:
(a) A redeveloper shall prepare the redevelopment plan using a standard
form developed by the Department of Economic Development. The form shall
include (i) the existing uses and condition of the property within the
redevelopment project area, (ii) the proposed uses of the property within the
redevelopment project area, (iii) the number of years the existing structure or
vacant platted lot or nonconforming lot of record has been within the corporate
limits of the city or the city's extraterritorial zoning jurisdiction or the
number of years that the vacant lot has been platted within the corporate
limits of the city, whichever is applicable, (iv) the current assessed value of
the property within the redevelopment project area, (v) the increase in the
assessed value of the property within the redevelopment project area that is
estimated to occur as a result of the redevelopment project, (vi) an indication
of whether the redevelopment project will be financed in whole or in part
through the division of taxes as provided in section 18-2147, and (vii) the
agreed-upon costs of the redevelopment project;
(b) The redeveloper shall submit the redevelopment plan directly to the
governing body along with an application fee in an amount set by the governing
body, not to exceed fifty dollars. Such application fee shall be separate from
any fees for building permits or other permits needed for the project; and
(c) The governing body shall determine whether to approve or deny the
redevelopment plan within thirty days after submission of the plan. A
redevelopment plan may be denied if:
(i) The redevelopment plan does not meet the requirements of subsection
(2) of this section;
(ii) Approval of the redevelopment plan would exceed the annual limit
established under subsection (3) of this section; or
(iii) The redevelopment plan is inconsistent with the city's comprehensive
development plan.
(5) Each city may select the appropriate employee or department to conduct
expedited reviews pursuant to this section.
(6) For any approved redevelopment project that is financed in whole or in
part through the division of taxes as provided in section 18-2147:
(a) The authority shall incur indebtedness related to the redevelopment
project which shall not exceed the lesser of the agreed-upon costs of the
redevelopment project or the amount estimated to be generated over a fifteen-
year period from the portion of taxes mentioned in subdivision (1)(b) of
section 18-2147. Such indebtedness shall not create a general obligation on
behalf of the authority or the city in the event that the amount generated over
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a fifteen-year period from the portion of taxes mentioned in subdivision (1)(b)
of section 18-2147 does not equal the costs of the agreed-upon work to repair,
rehabilitate, or replace the structure or to redevelop the vacant platted lot
or nonconforming lot of record as provided in the redevelopment plan;
(b) Upon completion of the agreed-upon work to repair, rehabilitate, or
replace the structure or to redevelop the vacant platted lot or nonconforming
lot of record as provided in the redevelopment plan, the redeveloper shall
notify the county assessor of such completion; and
(c) The county assessor shall then determine:
(i) Whether the redevelopment project is complete. Redevelopment projects
must be completed within two years after the redevelopment plan is approved
under this section; and
(ii) The assessed value of the property within the redevelopment project
area.
(7) After the county assessor makes the determinations required under
subdivision (6)(c) of this section, the county assessor shall use a standard
certification form developed by the Department of Revenue to certify to the
authority:
(a) That improvements have been made and completed;
(b) That a valuation increase has occurred;
(c) The amount of the valuation increase; and
(d) That the valuation increase was due to the improvements made.
(8) Once the county assessor has made the certification required under
subsection (7) of this section, the authority may begin to use the portion of
taxes mentioned in subdivision (1)(b) of section 18-2147 to pay the
indebtedness incurred by the authority under subdivision (6)(a) of this
section.
(9) The payments shall be remitted to the holder of the indebtedness. The
changes made to this subsection by Laws 2023, LB531, shall be retroactive in
application and shall apply to redevelopment plans approved prior to, on, or
after June 7, 2023.
(10) A single fund may be used for all redevelopment projects that receive
an expedited review pursuant to this section. It shall not be necessary to
create a separate fund for any such project, including a project financed in
whole or in part through the division of taxes as provided in section 18-2147.
(11) The governing body of a city that elects to allow expedited reviews
of redevelopment plans under this section may revoke such election by
resolution at any time. The revocation of such election shall not affect the
validity of (a) any redevelopment plan or redevelopment project that was
approved under this section prior to the revocation of such election or (b) any
indebtedness incurred by the authority under subdivision (6)(a) of this section
prior to the revocation of such election.
Sec. 83. Section 18-2705, Reissue Revised Statutes of Nebraska, is amended
to read:
18-2705 (1) Economic development program means any project or program
utilizing funds derived from local sources of revenue for the purpose of
providing direct or indirect financial assistance to a qualifying business or
the payment of related costs and expenses or both, without regard to whether
that business is identified at the time the project or program is initiated or
is to be determined by specified means at some time in the future.
(2) An economic development program may include, but shall not be limited
to: (a) Direct loans or grants to qualifying businesses for fixed assets or
working capital or both, (b) loan guarantees for qualifying businesses, (c)
grants for public works improvements which are essential to the location or
expansion of, or the provision of new services by, a qualifying business, (d)
grants or loans to qualifying businesses for job training, (e) the purchase of
real estate, options for such purchases, and the renewal or extension of such
options, (f) grants or loans to qualifying businesses to provide relocation
incentives for new residents, (g) the issuance of bonds as provided for in the
Local Option Municipal Economic Development Act, and (h) payments for salaries
and support of city staff to implement the economic development program or
develop an affordable housing action plan, including any such plan required
under section 19-5505, or payments for the contracting of such program
implementation or plan development to an outside entity.
(3) An For cities of the first class, cities of the second class, and
villages, an economic development program may also include grants, loans, or
funds for construction or rehabilitation for sale or lease of housing (a) for
persons of low or moderate income, (b) as part of a workforce housing plan, or
(c) as part of an affordable housing action plan, including any such plan
required under section 19-5505. :
(a) Construction or rehabilitation for sale or lease of housing (i) for
persons of low or moderate income, (ii) as part of a workforce housing plan, or
(iii) as part of an affordable housing action plan, including any such plan
required under section 19-5505;
(4) For cities of the first class, cities of the second class, and
villages, an economic development program may also include grants, loans, or
funds for:
(a) (b) Rural infrastructure development as defined in section 66-2102; or
(b) (c) Early childhood infrastructure development.
(5) (4) An economic development program may be conducted jointly by two or
more cities after the approval of the program by the voters of each
participating city.
Sec. 84. Section 18-2709, Revised Statutes Supplement, 2025, is amended to
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read:
18-2709 (1) Qualifying business means any corporation, partnership,
limited liability company, or sole proprietorship which derives its principal
source of income from any of the following: The manufacture of articles of
commerce; the conduct of research and development; the processing, storage,
transport, or sale of goods or commodities which are sold or traded in
interstate commerce; the sale of services in interstate commerce; headquarters
facilities relating to eligible activities as listed in this section;
telecommunications activities, including services providing advanced
telecommunications capability; tourism-related activities; or the production of
films, including feature, independent, and documentary films, commercials, and
television programs.
(2) Qualifying business also means:
(a) A In cities of the first class, cities of the second class, and
villages, a business that derives its principal source of income from the
construction or rehabilitation of housing;
(b) In cities of the first class, cities of the second class, and
villages, a business that derives its principal source of income from early
childhood care and education programs;
(c) A business that derives its principal source of income from retail
trade. For purposes of this subdivision, retail trade means a business which is
principally engaged in the sale of goods or commodities to ultimate consumers
for their own use or consumption and not for resale; and
(d) In cities with a population of five thousand inhabitants or less as
determined by the most recent federal decennial census or the most recent
revised certified count by the United States Bureau of the Census, a business
shall be a qualifying business even though it derives its principal source of
income from activities other than those set out in this section.
(3) If a business which would otherwise be a qualifying business employs
people and carries on activities in more than one city in Nebraska or will do
so at any time during the first year following its application for
participation in an economic development program, it shall be a qualifying
business only if, in each such city, it maintains employment for the first two
years following the date on which such business begins operations in the city
as a participant in its economic development program at a level not less than
its average employment in such city over the twelve-month period preceding
participation.
(4) A qualifying business need not be located within the territorial
boundaries of the city from which it is or will be receiving financial
assistance.
(5) Qualifying business does not include a political subdivision, a state
agency, or any other governmental entity, except as allowed for cities of the
first class, cities of the second class, and villages for rural infrastructure
development as provided for in subdivision (4)(a) (3)(b) of section 18-2705.
Sec. 85. Section 31-735, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
31-735 (1) On the first Tuesday after the second Monday in September which
is at least fifteen months after the judgment of the district court creating a
sanitary and improvement district and on the first Tuesday after the second
Monday in September each two years thereafter, the board of trustees shall
cause a special election to be held, at which election a board of trustees
shall be elected. The board of trustees shall have five members except as
provided in subsection (2) of this section. Each member elected to the board of
trustees shall be elected to a term of two years and shall hold office until
such member's successor is elected and qualified. Any person desiring to file
for the office of trustee may file for such office with the election
commissioner, or county clerk in counties having no election commissioner, of
the county in which the greater proportion in area of the district is located
not later than fifty days before the election. If such person will serve on the
board of trustees as a designated representative of a limited partnership,
general partnership, limited liability company, public, private, or municipal
corporation, estate, or trust which owns real estate in the district, the
filing shall indicate that fact and shall include appropriate documentation
evidencing such fact. No filing fee shall be required. A person filing for the
office of trustee to be elected at the election held four years after the first
election of trustees and each election thereafter shall designate whether such
person is a candidate for election by the resident owners of such district or a
candidate for election by all of the owners of real estate located in the
district. If a person filing for the office of trustee is a designated
representative of a limited partnership, a general partnership, a limited
liability company, a public, private, or municipal corporation, an estate, or a
trust which owns real estate in the district, the name of such entity shall
accompany the name of the candidate on the ballot in the following form: (Name
of candidate) to represent (name of entity) as a member of the board. The name
of each candidate shall appear on only one ballot.
The name of a person may be written in and voted for as a candidate for
the office of trustee, and such write-in candidate may be elected to the office
of trustee. A write-in candidate for the office of trustee who will serve as a
designated representative of a limited partnership, a general partnership, a
limited liability company, a public, private, or municipal corporation, an
estate, or a trust which owns real estate in the district shall not be elected
to the office of trustee unless (a) each vote is accompanied by the name of the
entity which the candidate will represent and (b) within ten days after the
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date of the election the candidate provides the election commissioner or county
clerk with appropriate documentation evidencing the candidate's representation
of the entity. Votes cast which do not carry such accompanying designation
shall not be counted.
A trustee shall be an owner of real estate located in the district or
shall be a person designated to serve as a representative on the board of
trustees if the real estate is owned by a limited partnership, a general
partnership, a limited liability company, a public, private, or municipal
corporation, an estate, or a trust. Notice of the date of the election shall be
mailed by the clerk of the district not later than sixty-five days prior to the
election to each person who is entitled to vote at the election for trustees
whose property ownership or lease giving a right to vote is of record on the
records of the register of deeds as of a date designated by the election
commissioner or county clerk, which date shall be not more than eighty days
prior to the election.
(2)(a) For any sanitary and improvement district, a person whose ownership
or right to vote becomes of record or is received after the date specified
pursuant to subsection (1) of this section may vote when such person
establishes the right to vote to the satisfaction of the election board. At the
first election and at the election held two years after the first election, any
person may cast one vote for each trustee for each acre of unplatted land or
fraction thereof and one vote for each platted lot which such person may own in
the district.
(b) This subdivision applies to a district until the board of trustees
amends its articles of association pursuant to subdivision (2)(d) of this
section. At the elections election held four years and six years after the
first election of trustees, two members of the board of trustees shall be
elected by the legal property owners resident within such sanitary and
improvement district and three members shall be elected by all of the owners of
real estate located in the district pursuant to this section. Every resident
property owner may cast one vote for a candidate for each office of trustee to
be filled by election of resident property owners only. Such resident property
owners may also each cast one vote for each acre of unplatted land or fraction
thereof and for each platted lot owned within the district for a candidate for
each office of trustee to be filled by election of all property owners. For
each office of trustee to be filled by election of all property owners of the
district, every legal property owner not resident within such sanitary and
improvement district may cast one vote for each acre of unplatted land or
fraction thereof and one vote for each platted lot which such legal property
owner owns in the district. At the election held eight six years after the
first election of trustees and at each election thereafter, three members of
the board of trustees shall be elected by the legal property owners resident
within such sanitary and improvement district and two members shall be elected
by all of the owners of real estate located in the district pursuant to this
section. If there are not any legal property owners resident within such
district or if not less than ninety percent of the area of the district is
owned for other than residential uses, the five members shall be elected by the
legal property owners of all property within such district as provided in this
section.
(c) Any public, private, or municipal corporation owning any land or lot
in the district may vote at an election the same as an individual. If more than
fifty percent of the homes in any sanitary and improvement district are used as
a second, seasonal, or recreational residence, the owners of such property
shall be considered legal property owners resident within such district for
purposes of electing trustees. For purposes of voting for trustees, each
condominium apartment under a condominium property regime established prior to
January 1, 1984, under the Condominium Property Act or established after
January 1, 1984, under the Nebraska Condominium Act shall be deemed to be a
platted lot and the lessee or the owner of the lessee's interest, under any
lease for an initial term of not less than twenty years which requires the
lessee to pay taxes and special assessments levied on the leased property,
shall be deemed to be the owner of the property so leased and entitled to cast
the vote of such property. When ownership of a platted lot or unplatted land is
held jointly by two or more persons, whether as joint tenants, tenants in
common, limited partners, members of a limited liability company, or any other
form of joint ownership, only one person shall be entitled to cast the vote of
such property. The executor, administrator, guardian, or trustee of any person
or estate interested shall have the right to vote. No corporation, estate, or
irrevocable trust shall be deemed to be a resident owner for purposes of voting
for trustees. Should two or more persons or officials claim the right to vote
on the same tract, the election board shall determine the party entitled to
vote. Such board shall select one of their number chairperson and one of their
number clerk. In case of a vacancy on such board, the remaining trustees shall
fill the vacancy on such board until the next election.
(d) For any sanitary and improvement district which has been in existence
for at least ten years, which has less than seventy property owners entitled to
vote for trustees, which has at least two resident property owners, and in
which less than ten percent of the area of the district is owned for other than
residential uses, the board of trustees may amend its articles of association
as provided in section 31-740.01 to provide for a reduction in the number of
trustees on the board from five members to three members to be effective at the
beginning of the term of office for the board of trustees elected at the next
election. At the next election and at each election thereafter, two members of
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the board of trustees shall be elected by the legal property owners resident
within such sanitary and improvement district and one member shall be elected
by all of the owners of real estate located in the district pursuant to this
section. Every resident property owner may cast one vote for a candidate for
each office of trustee to be filled by election of resident property owners
only. Such resident property owners may also each cast one vote for each acre
of unplatted land or fraction thereof and for each platted lot owned within the
district for a candidate for the office of trustee to be filled by election of
all property owners. For the office of trustee to be filled by election of all
property owners of the district, every legal property owner not resident within
such sanitary and improvement district may cast one vote for each acre of
unplatted land or fraction thereof and one vote for each platted lot which such
legal property owner owns in the district.
(3) The election commissioner or county clerk shall hold any election
required by subsection (1) of this section by sealed mail ballot by notifying
the board of trustees on or before July 1 of a given year. The election
commissioner or county clerk shall, at least twenty days prior to the election,
mail a ballot and return envelope to each person who is entitled to vote at the
election and whose property ownership or lease giving a right to vote is of
record with the register of deeds as of the date designated by the election
commissioner or county clerk, which date shall not be more than eighty days
prior to the election. The ballot and return envelope shall include: (a) The
names and addresses of the candidates; (b) room for write-in candidates; and
(c) instructions on how to vote and return the ballot. Such ballots shall be
returned in the return envelope to the election commissioner or county clerk no
later than 5 p.m. on the date set for the election. If the ballot is not
returned in the return envelope, such ballot shall not be counted. If more than
one ballot is included in the same return envelope, such ballots shall not be
counted and shall be reinserted into the return envelope which shall be
resealed and marked rejected.
Sec. 86. Section 31-741, Reissue Revised Statutes of Nebraska, is amended
to read:
31-741 All contracts for construction work to be done or materials or
equipment purchased, the expense of which is more than fifty twenty thousand
dollars, shall be let to the lowest responsible bidder, upon notice of not less
than twenty days, of the terms and conditions of the contract to be let. The
board of trustees or the administrator shall have power to reject any and all
bids and readvertise for the letting of such work or to negotiate any contract
after an unsuccessful public letting.
Sec. 87. Section 32-112.02, Revised Statutes Cumulative Supplement, 2024,
is amended to read:
32-112.02 Political subdivision shall include a county, city, village,
township, school district, public power district, community improvement
district, sanitary and improvement district, metropolitan utilities district,
rural or suburban fire protection district, natural resources district,
regional metropolitan transit authority, community college, learning community
coordinating council, educational service unit, hospital district, reclamation
district, library board, airport authority, and any other unit of local
government of the State of Nebraska.
Sec. 88. Section 32-404, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
32-404 (1) When any political subdivision holds an election in conjunction
with the statewide primary or general election, the election shall be held as
provided in the Election Act. Any other election held by a political
subdivision shall be held as provided in the act unless otherwise provided by
the charter, code, or bylaws of the political subdivision.
(2) No later than December 1 of each odd-numbered year, the Secretary of
State, election commissioner, or county clerk shall give notice to each
political subdivision of the filing deadlines for the statewide primary
election. No later than January 5 of each even-numbered year, the governing
board of each political subdivision which will hold an election in conjunction
with a statewide primary election shall certify to the Secretary of State, the
election commissioner, or the county clerk the name of the subdivision, the
number of officers to be elected, the length of the terms of office, the
vacancies to be filled by election and length of remaining term, and the number
of votes to be cast by a registered voter for each office.
(3) No later than June 15 of each even-numbered year, the governing board
of each reclamation district, county weed district, village, county under
township organization, public power district receiving annual gross revenue of
less than forty million dollars, or educational service unit which will hold an
election in conjunction with a statewide general election shall certify to the
Secretary of State, the election commissioner, or the county clerk the name of
the subdivision, the number of officers to be elected, the length of the terms
of office, the vacancies to be filled by election and length of remaining term,
and the number of votes to be cast by a registered voter for each office.
(4) The Secretary of State shall prescribe the forms to be used for
certification to him or her, and the election commissioner or county clerk
shall prescribe the forms to be used for certification to him or her.
(5) Each city, village, township, school district, public power district,
community improvement district, sanitary and improvement district, metropolitan
utilities district, fire protection district, natural resources district,
regional metropolitan transit authority, community college area, learning
community coordinating council, educational service unit, hospital district,
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reclamation district, library board, and airport authority shall furnish to the
Secretary of State and election commissioner or county clerk any maps and
additional information which the Secretary of State and election commissioner
or county clerk may require in the proper performance of their duties in the
conduct of elections and certification of results.
Sec. 89. Section 32-608, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
32-608 (1) Except as provided in subsection (4) or (5) of this section, a
filing fee shall be paid by or on behalf of each candidate prior to filing for
office. For candidates who file in the office of the Secretary of State as
provided in subdivision (2)(a) of section 32-607, the filing fee shall be paid
to the Secretary of State who shall remit the fee to the State Treasurer for
credit to the Election Administration Fund. For candidates for any city or
village office, the filing fee shall be paid to the city or village treasurer
of the city or village in which the candidate resides. For candidates who file
in the office of the election commissioner or county clerk, the filing fee
shall be paid to the election commissioner or county clerk in the county in
which the office is sought. The election commissioner or county clerk shall
remit the fee to the county treasurer. The fee shall be placed in the general
fund of the county, city, or village. No candidate filing forms shall be filed
until the proper payment or the proper receipt showing the payment of such
filing fee is presented to the filing officer. On the day of the filing
deadline, the city or village treasurer's office shall remain open to receive
filing fees until the hour of the filing deadline.
(2) Except as provided in subsection (4) or (5) of this section, the
filing fees shall be as follows:
(a) For the office of United States Senator, state officers, including
members of the Legislature, Representatives in Congress, county officers, and
city or village officers, except the mayor or council members of cities having
a home rule charter, a sum equal to one percent of the annual salary as of
November 30 of the year preceding the election for the office for which he or
she files as a candidate;
(b) For directors of public power and irrigation districts in districts
receiving annual gross revenue of forty million dollars or more, twenty-five
dollars, and in districts receiving annual gross revenue of less than forty
million dollars, ten dollars;
(c) For directors of reclamation districts, ten dollars; and
(d) For Regents of the University of Nebraska, members of the State Board
of Education, and directors of metropolitan utilities districts, twenty-five
dollars.
(3) All declared write-in candidates shall pay the filing fees that are
required for the office at the time that they present the write-in affidavit to
the filing officer.
(4) No filing fee shall be required for any candidate filing for an office
in which a per diem is paid rather than a salary or for which there is a salary
of less than five hundred dollars per year. No filing fee shall be required for
any candidate for membership on a school board, on the board of an educational
service unit, on the board of governors of a community college area, on the
board of directors of a natural resources district, or on the board of trustees
of a community improvement district, or on the board of trustees of a sanitary
and improvement district.
(5) No filing fee shall be required of any candidate completing an
affidavit requesting to file for elective office in forma pauperis. A pauper
shall mean a person whose income and other resources for maintenance are found
under assistance standards to be insufficient for meeting the cost of his or
her requirements and whose reserve of cash or other available resources does
not exceed the maximum available resources that an eligible individual may own.
Available resources shall include every type of property or interest in
property that an individual owns and may convert into cash except:
(a) Real property used as a home;
(b) Household goods of a moderate value used in the home; and
(c) Assets to a maximum value of three thousand dollars used by a
recipient in a planned effort directed towards self-support.
(6) If any candidate dies prior to an election, the spouse of the
candidate may file a claim for refund of the filing fee with the proper
governing body prior to the date of the election. Upon approval of the claim by
the proper governing body, the filing fee shall be refunded.
Sec. 90. Section 32-1203, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
32-1203 (1) Each city, village, township, school district, public power
district, community improvement district, sanitary and improvement district,
metropolitan utilities district, fire protection district, natural resources
district, regional metropolitan transit authority, community college area,
learning community coordinating council, educational service unit, hospital
district, reclamation district, library board, and airport authority shall pay
for the costs of nominating and electing its officers as provided in subsection
(2), (3), or (4) of this section. If a special issue is placed on the ballot at
the time of the statewide primary or general election by any political
subdivision, the political subdivision shall pay for the costs of the election
as provided in subsection (2), (3), or (4) of this section.
(2) The charge for each primary and general election shall be determined
by (a) ascertaining the total cost of all chargeable costs as described in
section 32-1202, (b) dividing the total cost by the number of precincts
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participating in the election to fix the cost per precinct, (c) prorating the
cost per precinct by the inked ballot inch in each precinct for each political
subdivision, and (d) totaling the cost for each precinct for each political
subdivision, except that the minimum charge for each primary and general
election for each political subdivision shall be one hundred dollars.
(3) In lieu of the charge determined pursuant to subsection (2) of this
section, the election commissioner or county clerk may charge public power
districts the fee for election costs set by section 70-610.
(4) In lieu of the charge determined pursuant to subsection (2) of this
section, the election commissioner or county clerk may bill school districts
directly for the costs of an election held under section 10-703.01.
Sec. 91. Section 32-1302, Reissue Revised Statutes of Nebraska, is amended
to read:
32-1302 (1) Except for trustees of community improvement districts and
sanitary and improvement districts, any elected official of a political
subdivision and any elected member of the governing bodies of cities, villages,
counties, irrigation districts, natural resources districts, public power
districts, school districts, community college areas, educational service
units, hospital districts, and metropolitan utilities districts may be removed
from office by recall pursuant to sections 32-1301 to 32-1309. A trustee of a
community improvement district may be removed from office by recall pursuant to
sections 52 to 59 of this act. A trustee of a sanitary and improvement district
may be removed from office by recall pursuant to sections 31-786 to 31-793.
(2) If due to reapportionment the boundaries of the area served by the
official or body change, the recall procedure and special election provisions
of sections 32-1301 to 32-1309 shall apply to the registered voters within the
boundaries of the new area.
(3) The recall procedure and special election provisions of such sections
shall apply to members of the governing bodies listed in subsection (1) of this
section, other than community improvement districts and sanitary and
improvement districts, who are elected by precinct, district, or subdistrict of
the political subdivision. Only registered voters of such member's precinct,
district, or subdistrict may sign a recall petition or vote at the recall
election. The recall election shall be held within the member's precinct,
district, or subdistrict. When an elected member is nominated by precinct,
district, or subdistrict in the primary election and elected at large in the
general election, the recall provisions shall apply to the registered voters at
the general election.
(4) The recall procedure and special election provisions shall apply to
the mayor and members of the city council of municipalities with a home rule
charter notwithstanding any contrary provisions of the home rule charter.
Sec. 92. Section 71-1572, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
71-1572 Sections 71-1572 to 71-15,170 and section 94 of this act shall be
known and may be cited as the Nebraska Housing Agency Act.
Sec. 93. Section 71-15,169, Revised Statutes Cumulative Supplement, 2024,
is amended to read:
71-15,169 (1) A housing agency for a city of the metropolitan class shall
establish a complaint process. Any resident of an agency property may file a
complaint by any of the following means:
(a) A complaint form filled out online on the housing agency's website;
(b) A telephone call made to a housing agency; or
(c) A complaint form filled out in person. Such complaint form shall be
made available at designated offices.
(2) The complaint form, whether completed by the complainant online, in-
person, or by a housing agency employee answering a telephone call complaint,
shall include the following information:
(a) The name of the complainant;
(b) Contact information including the telephone number, email address, and
mailing address of the complainant;
(c) The nature of the complaint, including, but not limited to, whether a
maintenance issue, a discrimination claim, or a rent dispute; and
(d) Relevant dates.
(3) Notice of the right to file a complaint up until the time of an
eviction shall be included on both the online and printed complaint form.
(4) The complainant may provide any supporting documentation with the
complaint, including, but not limited to, photographs or digital images,
receipts, and correspondence.
(5) Upon receipt of the complaint, the agency shall send an acknowledgment
to the complainant by email or regular first-class mail within five business
days. Each complaint shall be assigned a unique case number for tracking
purposes.
(6) The agency shall conduct a thorough investigation of the complaint,
including, but not limited to, interviewing relevant parties, inspecting
property and relevant documents, and reviewing applicable laws and regulations.
(7) The housing authority shall resolve the complaint within fourteen days
after receipt of the complaint. If additional time is required, the complainant
shall be notified and provided with an updated timeline. Throughout the
investigation, the agency shall provide the complainant with regular updates on
the status of the complaint by email, telephone, or regular first-class mail.
(8) The agency shall notify the complainant of the resolution of the
complaint in writing within five business days after such resolution. The
notice shall include (a) a summary of the investigation findings, (b) the
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action taken to address the complaint, (c) any remedies or compensation
provided, (d) information on how to file a complaint with the political
subdivision responsible for code enforcement, if applicable, and (e)
information about the city's complaint process if the complainant is not
satisfied with the resolution of the complaint.
(9) A complainant who is dissatisfied with the resolution of his or her
complaint may bring an action against the agency under the terms of his or her
lease agreement.
(10) (9) The agency shall invite the complainant to provide feedback on
the complainant's experience with the complaint process, including suggestions
for improvement.
(11) (10) The agency shall monitor complaint trends, analyze root causes,
and report on complaint resolution statistics regularly to identify areas for
improvement. The agency shall submit a report to the commissioners at every
board meeting detailing (a) the number of complaints filed, (b) the nature of
such complaints, (c) the status of completed and pending inspections, and (d)
the number of unfilled inspector positions within the housing agency. The
report shall also be made available to the public on the agency's website and
at the agency's office.
(12) (11) The agency shall inform persons applying for housing about the
complaint process during the resident application process and inform residents
about the complaint process (a) annually, (b) at the time a complaint is filed,
and (c) by posting on the agency's website and on any public boards in any
common housing spaces.
Sec. 94. A housing agency for a city of the metropolitan class shall
submit a report annually to the Urban Affairs Committee of the Legislature. The
report shall include:
(1) Information regarding any pest control management activities
undertaken during the year covered by the report;
(2) The number of eviction filings during the year covered by the report;
(3) The number, nature, and resolution of complaints or grievances filed
during the year covered by the report;
(4) Current occupancy rates; and
(5) Any relevant updates from meetings of the agency's board of
commissioners.
Sec. 95. Section 77-202, Revised Statutes Supplement, 2025, is amended to
read:
77-202 (1) The following property shall be exempt from property taxes:
(a) Property of the state and its governmental subdivisions to the extent
used or being developed for use by the state or governmental subdivision for a
public purpose. For purposes of this subdivision:
(i) Property of the state and its governmental subdivisions means (A)
property held in fee title by the state or a governmental subdivision or (B)
property beneficially owned by the state or a governmental subdivision in that
it is used for a public purpose and is being acquired under a lease-purchase
agreement, financing lease, or other instrument which provides for transfer of
legal title to the property to the state or a governmental subdivision upon
payment of all amounts due thereunder. If the property to be beneficially owned
by a governmental subdivision has a total acquisition cost that exceeds the
threshold amount or will be used as the site of a public building with a total
estimated construction cost that exceeds the threshold amount, then such
property shall qualify for an exemption under this section only if the question
of acquiring such property or constructing such public building has been
submitted at a primary, general, or special election held within the
governmental subdivision and has been approved by the voters of the
governmental subdivision. For purposes of this subdivision, threshold amount
means the greater of fifty thousand dollars or six-tenths of one percent of the
total actual value of real and personal property of the governmental
subdivision that will beneficially own the property as of the end of the
governmental subdivision's prior fiscal year; and
(ii) Public purpose means use of the property (A) to provide public
services with or without cost to the recipient, including the general operation
of government, public education, public safety, transportation, public works,
civil and criminal justice, public health and welfare, developments by a public
housing authority, improvements by an inland port authority, parks, culture,
recreation, community development, and cemetery purposes, or (B) to carry out
the duties and responsibilities conferred by law with or without consideration.
Public purpose does not include leasing of property to a private party unless
the lease of the property is at fair market value for a public purpose. Leases
of property by a public housing authority to low-income individuals as a place
of residence are for the authority's public purpose . Lease agreements of real
or personal property by an inland port authority, whether the inland port
authority is lessee or lessor, are for the authority's public purpose;
(b) Unleased property of the state or its governmental subdivisions which
is not being used or developed for use for a public purpose but upon which a
payment in lieu of taxes is paid for public safety, rescue, and emergency
services and road or street construction or maintenance services to all
governmental units providing such services to the property. Except as provided
in Article VIII, section 11, of the Constitution of Nebraska, the payment in
lieu of taxes shall be based on the proportionate share of the cost of
providing public safety, rescue, or emergency services and road or street
construction or maintenance services unless a general policy is adopted by the
governing body of the governmental subdivision providing such services which
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provides for a different method of determining the amount of the payment in
lieu of taxes. The governing body may adopt a general policy by ordinance or
resolution for determining the amount of payment in lieu of taxes by majority
vote after a hearing on the ordinance or resolution. Such ordinance or
resolution shall nevertheless result in an equitable contribution for the cost
of providing such services to the exempt property;
(c) Property owned by and used exclusively for agricultural and
horticultural societies;
(d)(i) Property owned by educational, religious, charitable, or cemetery
organizations, or any organization for the exclusive benefit of any such
educational, religious, charitable, or cemetery organization, and used
exclusively for educational, religious, charitable, or cemetery purposes, when
such property is not (A) owned or used for financial gain or profit to either
the owner or user, (B) used for the sale of alcoholic liquors for more than
twenty hours per week, or (C) owned or used by an organization which
discriminates in membership or employment based on race, color, or national
origin.
(ii) For purposes of subdivision (1)(d) of this section:
(A) Educational organization means (I) an institution operated exclusively
for the purpose of offering regular courses with systematic instruction in
academic, vocational, or technical subjects or assisting students through
services relating to the origination, processing, or guarantying of federally
reinsured student loans for higher education, (II) a museum or historical
society operated exclusively for the benefit and education of the public, or
(III) a nonprofit organization that owns or operates a child care facility; and
(B) Charitable organization includes (I) an organization operated
exclusively for the purpose of the mental, social, or physical benefit of the
public or an indefinite number of persons and (II) a fraternal benefit society
organized and licensed under sections 44-1072 to 44-10,109.
(iii) The property tax exemption authorized in subdivision (1)(d)(i) of
this section shall apply to any for-profit skilled nursing facility, for-profit
nursing facility, or for-profit assisted-living facility that provides housing
for medicaid beneficiaries, except that the exemption amount for such property
shall be a percentage of the property taxes that would otherwise be due. Such
percentage shall be equal to the average percentage of occupied beds in the
facility provided to medicaid beneficiaries over the most recent three-year
period. This subdivision shall not be construed to modify, limit, or reduce any
property tax exemption provided to a nonprofit skilled nursing facility,
nonprofit nursing facility, or nonprofit assisted-living facility pursuant to
subdivision (1)(d)(i) of this section. For purposes of this subdivision,
skilled nursing facility has the same meaning as in section 71-429, nursing
facility has the same meaning as in section 71-424, and assisted-living
facility has the same meaning as in section 71-5903.
(iv) The property tax exemption authorized in subdivision (1)(d)(i) of
this section shall apply to a building that (A) is owned by a charitable
organization, (B) is made available to students in attendance at an educational
institution, and (C) is recognized by such educational institution as approved
student housing, except that the exemption shall only apply to the commons area
of such building, including any common rooms and cooking and eating facilities;
(e) Household goods and personal effects not owned or used for financial
gain or profit to either the owner or user; and
(f) A portion of the property owned by a taxpayer as provided in the
Recreational Trail Easement Property Tax Exemption Act.
(2) The increased value of land by reason of shade and ornamental trees
planted along the highway shall not be taken into account in the valuation of
land.
(3) Tangible personal property which is not depreciable tangible personal
property as defined in section 77-119 shall be exempt from property tax.
(4) Motor vehicles, trailers, and semitrailers required to be registered
for operation on the highways of this state shall be exempt from payment of
property taxes.
(5) Business and agricultural inventory shall be exempt from the personal
property tax. For purposes of this subsection, business inventory includes
personal property owned for purposes of leasing or renting such property to
others for financial gain only if the personal property is of a type which in
the ordinary course of business is leased or rented thirty days or less and may
be returned at the option of the lessee or renter at any time and the personal
property is of a type which would be considered household goods or personal
effects if owned by an individual. All other personal property owned for
purposes of leasing or renting such property to others for financial gain shall
not be considered business inventory.
(6) Any personal property exempt pursuant to subsection (2) of section
77-4105 or section 77-5209.02 shall be exempt from the personal property tax.
(7) Livestock shall be exempt from the personal property tax.
(8) Any personal property exempt pursuant to the Nebraska Advantage Act or
the ImagiNE Nebraska Act shall be exempt from the personal property tax.
(9) Any depreciable tangible personal property used directly in the
generation of electricity using wind as the fuel source shall be exempt from
the property tax levied on depreciable tangible personal property. Any
depreciable tangible personal property used directly in the generation of
electricity using solar, biomass, or landfill gas as the fuel source shall be
exempt from the property tax levied on depreciable tangible personal property
if such depreciable tangible personal property was installed on or after
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January 1, 2016, and has a nameplate capacity of one hundred kilowatts or more.
Depreciable tangible personal property used directly in the generation of
electricity using wind, solar, biomass, or landfill gas as the fuel source
includes, but is not limited to, wind turbines, rotors and blades, towers,
solar panels, trackers, generating equipment, transmission components,
substations, supporting structures or racks, inverters, and other system
components such as wiring, control systems, switchgears, and generator step-up
transformers.
(10) Any tangible personal property that is acquired by a person operating
a data center located in this state, that is assembled, engineered, processed,
fabricated, manufactured into, attached to, or incorporated into other tangible
personal property, both in component form or that of an assembled product, for
the purpose of subsequent use at a physical location outside this state by the
person operating a data center shall be exempt from the personal property tax.
Such exemption extends to keeping, retaining, or exercising any right or power
over tangible personal property in this state for the purpose of subsequently
transporting it outside this state for use thereafter outside this state. For
purposes of this subsection, data center means computers, supporting equipment,
and other organized assembly of hardware or software that are designed to
centralize the storage, management, or dissemination of data and information,
environmentally controlled structures or facilities or interrelated structures
or facilities that provide the infrastructure for housing the equipment, such
as raised flooring, electricity supply, communication and data lines, Internet
access, cooling, security, and fire suppression, and any building housing the
foregoing.
(11) For tax years prior to tax year 2020, each person who owns property
required to be reported to the county assessor under section 77-1201 shall be
allowed an exemption amount as provided in the Personal Property Tax Relief
Act. For tax years prior to tax year 2020, each person who owns property
required to be valued by the state as provided in section 77-601, 77-682,
77-801, or 77-1248 shall be allowed a compensating exemption factor as provided
in the Personal Property Tax Relief Act.
(12)(a) Broadband equipment shall be exempt from the personal property tax
if such broadband equipment is:
(i) Deployed in an area funded in whole or in part by funds from the
Broadband Equity, Access, and Deployment Program, authorized by the federal
Infrastructure Investment and Jobs Act, Public Law 117-58; or
(ii) Deployed in a qualified census tract located within the corporate
limits of a city of the metropolitan class and being utilized to provide end-
users with access to the Internet at speeds of at least one hundred megabits
per second for downloading and at least one hundred megabits per second for
uploading.
(b) An owner of broadband equipment seeking an exemption under this
section shall apply for an exemption to the county assessor on or before
December 31 of the year preceding the year for which the exemption is to begin.
If the broadband equipment meets the criteria described in this subsection, the
county assessor shall approve the application within thirty calendar days after
receiving the application. The application shall be on forms prescribed by the
Tax Commissioner.
(c) For purposes of this subsection:
(i) Broadband communications service means telecommunications service as
defined in section 86-121, video programming as defined in 47 U.S.C. 522, as
such section existed on January 1, 2024, or Internet access as defined in
section 1104 of the federal Internet Tax Freedom Act, Public Law 105-277;
(ii) Broadband equipment means machinery or equipment used to provide
broadband communications service and includes, but is not limited to, wires,
cables, fiber, conduits, antennas, poles, switches, routers, amplifiers,
rectifiers, repeaters, receivers, multiplexers, duplexers, transmitters,
circuit cards, insulating and protective materials and cases, power equipment,
backup power equipment, diagnostic equipment, storage devices, modems, and
other general central office or headend equipment, such as channel cards,
frames, and cabinets, or equipment used in successor technologies, including
items used to monitor, test, maintain, enable, or facilitate qualifying
equipment, machinery, software, ancillary components, appurtenances,
accessories, or other infrastructure that is used in whole or in part to
provide broadband communications service. Machinery or equipment used to
produce broadband communications service does not include personal consumer
electronics, including, but not limited to, smartphones, computers, and
tablets; and
(iii) Qualified census tract means a qualified census tract as defined in
26 U.S.C. 42(d)(5)(B)(ii)(I), as such section existed on January 1, 2024.
Sec. 96. Section 77-1701, Revised Statutes Supplement, 2025, is amended to
read:
77-1701 (1) The county treasurer shall be ex officio county collector of
all taxes levied within the county. The county board shall designate a county
official to mail or otherwise deliver a statement of the amount of taxes due
and a notice that special assessments are due, to the last-known address of the
person, firm, association, or corporation against whom such taxes or special
assessments are assessed or to the lending institution or other party
responsible for paying such taxes or special assessments. Such statement shall
clearly indicate, for each political subdivision, the amount of property taxes
due to fund any and all public safety services as defined in section 13-320,
county attorneys, and public defenders, regardless of whether such amount is
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taken as an exception to the political subdivision's property tax request
authority under section 13-3404. Such statement shall also clearly indicate,
for each political subdivision, the levy rate and the amount of taxes due as
the result of principal or interest payments on bonds issued by the political
subdivision and shall show such rate and amount separate from any other levy.
When taxes on real property are delinquent for a prior year, the county
treasurer shall indicate this information on the current year tax statement in
bold letters. The information provided shall inform the taxpayer that
delinquent taxes and interest are due for the prior year or years and shall
indicate the specific year or years for which such taxes and interest remain
unpaid. The language shall read "Back Taxes and Interest Due For", followed by
numbers to indicate each year for which back taxes and interest are due and a
statement indicating that failure to pay the back taxes and interest may result
in the loss of the real property. Failure to receive such statement or notice
shall not relieve the taxpayer from any liability to pay such taxes or special
assessments and any interest or penalties accrued thereon. In any county in
which a city of the metropolitan class is located, all statements of taxes
shall also include notice that special assessments for cutting weeds, removing
litter, and demolishing buildings are due.
(2) Notice that special assessments are due shall not be required for
special assessments levied by community improvement districts organized under
the Community Improvement District Act or sanitary and improvement districts
organized under Chapter 31, article 7, except that such notice may be provided
by the county at the discretion of the county board or by the community
improvement district or the sanitary and improvement district with the approval
of the county board.
(3) A statement of the amount of taxes due and a notice that special
assessments are due shall not be required to be mailed or otherwise delivered
pursuant to subsection (1) of this section if the total amount of the taxes and
special assessments due is less than two dollars. Failure to receive the
statement or notice shall not relieve the taxpayer from any liability to pay
the taxes or special assessments but shall relieve the taxpayer from any
liability for interest or penalties. Taxes and special assessments of less than
two dollars shall be added to the amount of taxes and special assessments due
in subsequent years and shall not be considered delinquent until the total
amount is two dollars or more.
Sec. 97. Section 77-1838, Revised Statutes Supplement, 2025, is amended to
read:
77-1838 (1) The deed made by the county treasurer shall be under the
official seal of office and acknowledged by the county treasurer before some
officer authorized to take the acknowledgment of deeds. When so executed and
acknowledged, it shall be recorded in the same manner as other conveyances of
real estate. When recorded it shall vest in the grantee and his or her heirs
and assigns the title of the property described in the deed, subject to any
lien on real estate for special assessments levied by a community improvement
district or a sanitary and improvement district which special assessments have
not been previously offered for sale by the county treasurer.
(2) Within thirty days after recording of the deed, the grantee shall pay
the surplus to the previous owner of the property described in the deed. For
purposes of this subsection, the surplus shall be calculated as follows:
(a) If the property has been sold since recording of the deed, the surplus
shall be equal to the amount received from such sale, minus (i) the amount that
would have been needed to redeem such property, (ii) the amount needed to pay
all encumbrances on such property, and (iii) an administrative fee of five
hundred dollars or reasonable attorney's fees in the event of judicial
foreclosure, which may be retained by the grantee to offset the costs incurred
in obtaining the deed; or
(b) If the property has not been sold since recording of the deed, the
surplus shall be equal to the assessed value of such property as reflected in
the records of the county assessor at the time of the application for the tax
deed, minus (i) the amount that would have been needed to redeem such property,
(ii) the amount needed to pay all encumbrances on such property, and (iii) an
administrative fee of five hundred dollars or reasonable attorney's fees in the
event of judicial foreclosure, which may be retained by the grantee to offset
the costs incurred in obtaining the deed.
Sec. 98. Section 77-1842, Reissue Revised Statutes of Nebraska, is amended
to read:
77-1842 Deeds made by the county treasurer shall be presumptive evidence
in all courts of this state, in all controversies and suits in relation to the
rights of the purchaser and his or her heirs or assigns to the real property
thereby conveyed, of the following facts: (1) That the real property conveyed
was subject to taxation for the year or years stated in the deed; (2) that the
taxes were not paid at any time before the sale; (3) that the real property
conveyed had not been redeemed from the sale at the date of the deed; (4) that
the property had been listed and assessed; (5) that the taxes were levied
according to law; (6) that the property was sold for taxes as stated in the
deed; (7) that the notice had been served or due publication made as required
in sections 77-1831 to 77-1835 before the time of redemption had expired; (8)
that the manner in which the listing, assessment, levy, and sale were conducted
was in all respects as the law directed; (9) that the grantee named in the deed
was the purchaser or his or her assignee; and (10) that all the prerequisites
of the law were complied with by all the officers who had or whose duty it was
to have had any part or action in any transaction relating to or affecting the
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title conveyed or purporting to be conveyed by the deed, from the listing and
valuation of the property up to the execution of the deed, both inclusive, and
that all things whatsoever required by law to make a good and valid sale and to
vest the title in the purchaser, subject to any lien on real estate for special
assessments levied by a community improvement district or a sanitary and
improvement district which special assessments have not been previously offered
for sale by the county treasurer, were done.
Sec. 99. Section 77-1858, Reissue Revised Statutes of Nebraska, is amended
to read:
77-1858 Wherever power is now given by the revenue laws of this state to
the county treasurer of any county in this state to sell real estate, on which
the taxes have not been paid as provided by law, it shall include the power to
sell the real estate for (1) all the taxes and special assessments, except
special assessments levied by a community improvement district organized under
the Community Improvement District Act or a sanitary and improvement district
organized under sections 31-727 to 31-762, levied or hereafter levied by any
county, municipality, drainage district, or other political subdivision of the
state and (2) all special assessments levied or hereafter levied by any
community improvement district or sanitary and improvement district if such
sale is requested by such community improvement district or sanitary and
improvement district which levied the special assessment. All provisions of the
revenue law now in force with reference to the collection of taxes shall apply
with equal force to all taxes and special assessments levied by such county,
municipality, drainage district, or other political subdivision of the state.
Sec. 100. Section 77-1901, Reissue Revised Statutes of Nebraska, is
amended to read:
77-1901 Counties shall have a lien upon real estate within their
boundaries for all taxes due thereon to the state, any governmental subdivision
of the state, any municipal corporation, and any drainage or irrigation
district. After any parcel of real estate has been offered for sale and not
sold for want of bidders, the county board shall make and enter an order
directing the county attorney to foreclose the lien for all taxes then
delinquent, excluding any lien on real estate for special assessments levied by
any community improvement district or sanitary and improvement district which
special assessments have not been previously offered for sale by the county
treasurer, in the same manner and with like effect as in the foreclosure of
real estate mortgages, except as otherwise specifically provided by sections
77-1903 to 77-1917.
Sec. 101. Section 77-1902, Revised Statutes Supplement, 2025, is amended
to read:
77-1902 (1) When land has been sold for delinquent taxes and a tax sale
certificate or tax deed has been issued, the holder of such tax sale
certificate or tax deed may, instead of demanding a deed or, if a deed has been
issued, by surrendering the same in court, proceed in the district court of the
county in which the land is situated to foreclose the lien for taxes
represented by the tax sale certificate or tax deed and all subsequent tax
liens thereon, excluding any lien on real estate for special assessments levied
by any community improvement district or sanitary and improvement district
which special assessments have not been previously offered for sale by the
county treasurer, in the same manner and with like effect as in the foreclosure
of a real estate mortgage, except as otherwise specifically provided by
sections 77-1903 to 77-1917.
(2) Such action shall be brought within whichever of the following two
timeframes is applicable:
(a) For real estate determined to be vacant and abandoned pursuant to
subsection (3) of this section, the action shall be brought within nine months
after the expiration of two years from the date of sale of the real estate for
taxes or special assessments; or
(b) For any other real estate, the action shall be brought within nine
months after the expiration of three years from the date of sale of the real
estate for taxes or special assessments.
(3)(a) For purposes of this section, real estate may be considered vacant
and abandoned if:
(i) The holder of the tax sale certificate or tax deed is a land bank as
defined in section 18-3403; and
(ii) Such property substantially meets more than two of the following
criteria:
(A) The property is not occupied by the owner or any lessee or licensee of
the owner;
(B) Utility service to the property, including, but not limited to, gas,
electric, or water service, has been disconnected or delinquent for over one
year;
(C) A building on the property has been deemed unfit for human habitation,
occupancy, or use by local housing officials;
(D) A building on the property is open and unprotected and in reasonable
danger of significant damage resulting from exposure to the elements or
vandalism;
(E) A building on the property is unsecure due to multiple windows and
doors being boarded up or closed off, smashed through, broken off or unhinged,
or continuously unlocked;
(F) The property has been stripped of copper or other materials or
interior fixtures to the property have been removed;
(G) There have not been any recent efforts made to restore the property to
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productive use;
(H) There is a presence of vermin, uncut vegetation, or debris
accumulation on the property;
(I) There have been past actions by the applicable municipality or county
to maintain the grounds or a building on the property;
(J) The property has been out of compliance with orders of local housing
officials; or
(K) Any other condition or circumstance reasonably indicating that the
property is vacant and abandoned.
(b) The holder of the tax sale certificate or tax deed shall determine
whether or not real estate is vacant and abandoned two years after the date of
the sale of such real estate for taxes or special assessments.
(c) If the real estate is registered as vacant and abandoned pursuant to a
vacant property registration ordinance adopted by a municipality, it shall be
conclusive proof that such real estate is vacant and abandoned. If the real
estate is not registered as vacant and abandoned pursuant to such an ordinance,
the holder of the tax sale certificate or tax deed shall not be obligated to
proceed under subdivision (2)(a) of this section, but may instead choose to
proceed under subdivision (2)(b) of this section, and no deed subsequently
issued to such holder shall be deemed invalid due to noncompliance with
subdivision (2)(a) of this section. No action taken by a holder of a tax sale
certificate or tax deed under subdivision (2)(a) of this section shall prohibit
a subsequent action under subdivision (2)(b) of this section on the same real
estate should it be determined that such real estate is not vacant and
abandoned.
(d) If the holder of the tax sale certificate or tax deed determines real
estate to be vacant and abandoned pursuant to this subsection, the holder shall
submit an affidavit to the county treasurer affirming that the real estate is
vacant and abandoned.
Sec. 102. Section 77-1909, Revised Statutes Supplement, 2025, is amended
to read:
77-1909 In its decree, the court shall ascertain and determine the amount
of taxes, special assessments, and other liens, interest, and costs chargeable
to each particular item of real property, excluding any lien on real estate for
special assessments levied by any community improvement district or sanitary
and improvement district which special assessments have not been previously
offered for sale by the county treasurer, and award to the plaintiff an
attorney's fee, unless waived by the plaintiff, in an amount equal to ten
percent of the amount due plus, for good cause shown, reasonable attorney's
fees in excess of the ten percent, which shall be taxed as part of the costs in
the action and apportioned equitably as other costs.
Sec. 103. Section 77-1914, Reissue Revised Statutes of Nebraska, is
amended to read:
77-1914 Upon confirmation of the sale, the clerk of the district court
shall certify to the county treasurer the year or years of the taxes for which
the real property was sold. The county treasurer shall thereupon cancel the
taxes for such years, and the proceedings shall operate as a release of such
real property from all liens for the taxes included on the real property. The
delivery of the sheriff's deed shall pass title to the purchaser free and clear
of all liens and interests of all persons who were parties to the proceedings,
who received service of process, and over whom the court had jurisdiction,
excluding any lien on real estate for special assessments levied by any
community improvement district or sanitary and improvement district which
special assessments have not been previously offered for sale by the county
treasurer.
Sec. 104. Section 77-1915, Reissue Revised Statutes of Nebraska, is
amended to read:
77-1915 From the proceeds of the sale of any real property, the costs
charged thereto shall first be paid. When the plaintiff is a private person,
firm, or corporation, the balance thereof, or so much thereof as is necessary,
shall be paid to the plaintiff. When the plaintiff is a governmental
subdivision other than a land bank, or is a municipal corporation or drainage
or irrigation district, the balance thereof, or so much thereof as is
necessary, shall be paid to the county treasurer for distribution to the
various governmental subdivisions, municipal corporations, or drainage or
irrigation districts entitled thereto in discharge of all claims, excluding any
lien on real estate for special assessments levied by any community improvement
district or sanitary and improvement district which special assessments have
not been previously offered for sale by the county treasurer. When the
plaintiff is a land bank, the balance thereof, or so much thereof as is
necessary, shall be paid to the land bank.
Sec. 105. Section 77-1916, Reissue Revised Statutes of Nebraska, is
amended to read:
77-1916 If a surplus remains after satisfying all costs and taxes against
any particular item of real property, the excess shall be applied in the manner
provided by law for the disposition of the surplus in the foreclosure of
mortgages on real property. If the proceeds are insufficient to pay the costs
and all the taxes, when the plaintiff is a governmental subdivision other than
a land bank or is a municipal corporation or a drainage or irrigation district,
the amount remaining shall be prorated among the governmental subdivisions,
municipal corporations, and drainage or irrigation districts in the proportion
of their interest in the decree of foreclosure. The proceeds of the sale of one
item of real property shall not be applied to the discharge of a lien for taxes
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against another item of real property except when so directed by the decree for
foreclosure under the circumstances set forth in section 77-1910. The lien on
real estate for special assessments levied by any community improvement
district or sanitary and improvement district shall not be entitled to any
surplus unless such special assessments have been previously offered for sale
by the county treasurer.
Sec. 106. Section 77-1917.01, Reissue Revised Statutes of Nebraska, is
amended to read:
77-1917.01 All cities, villages , community improvement districts, and
sanitary and improvement districts in Nebraska shall have a lien upon real
estate within their boundaries for all special assessments due thereon to the
municipal corporation or district, which lien shall be inferior only to general
taxes levied by the state and its political subdivisions. When such special
assessments have become delinquent, without the real property against which
they are assessed being first offered at tax sale by the tax sale certificate
method or otherwise, the municipal corporation or district involved may itself
as party plaintiff proceed in the district court of the county in which the
real estate is situated to foreclose, in its own name, the lien for such
delinquent special assessments in the same manner and with like effect as in
the foreclosure of a real estate mortgage, except as otherwise specifically
provided by sections 77-1903 to 77-1917, which shall govern when applicable.
Final confirmation of sale in such foreclosure proceeding and issuance of deed
to the plaintiff, or its assignee, cannot be had until two years have expired
from the date of the sale held by the sheriff, and, after expiration of such
two-year period, personal notice has been served on occupants of the real
property. The remedy granted in this section to cities, villages , community
improvement districts, and sanitary and improvement districts for the
collection of delinquent special assessments shall be cumulative and in
addition to other existing methods.
Sec. 107. Section 77-3442, Revised Statutes Supplement, 2025, is amended
to read:
77-3442 (1) Property tax levies for the support of local governments for
fiscal years beginning on or after July 1, 1998, shall be limited to the
amounts set forth in this section except as provided in section 77-3444.
(2)(a) Except as provided in subdivisions (2)(b) and (2)(e) of this
section, school districts and multiple-district school systems may levy a
maximum levy of one dollar and five cents per one hundred dollars of taxable
valuation of property subject to the levy.
(b) For each fiscal year prior to fiscal year 2017-18, learning
communities may levy a maximum levy for the general fund budgets of member
school districts of ninety-five cents per one hundred dollars of taxable
valuation of property subject to the levy. The proceeds from the levy pursuant
to this subdivision shall be distributed pursuant to section 79-1073.
(c) Except as provided in subdivision (2)(e) of this section, for each
fiscal year prior to fiscal year 2017-18, school districts that are members of
learning communities may levy for purposes of such districts' general fund
budget and special building funds a maximum combined levy of the difference of
one dollar and five cents on each one hundred dollars of taxable property
subject to the levy minus the learning community levy pursuant to subdivision
(2)(b) of this section for such learning community.
(d) Excluded from the limitations in subdivisions (2)(a) and (2)(c) of
this section are (i) amounts levied to pay for current and future sums agreed
to be paid by a school district to certificated employees in exchange for a
voluntary termination of employment occurring prior to September 1, 2017, (ii)
amounts levied by a school district otherwise at the maximum levy pursuant to
subdivision (2)(a) of this section to pay for current and future qualified
voluntary termination incentives for certificated teachers pursuant to
subsection (3) of section 79-8,142 that are not otherwise included in an
exclusion pursuant to subdivision (2)(d) of this section, (iii) amounts levied
by a school district otherwise at the maximum levy pursuant to subdivision (2)
(a) of this section to pay for seventy-five percent of the current and future
sums agreed to be paid to certificated employees in exchange for a voluntary
termination of employment occurring between September 1, 2017, and August 31,
2018, as a result of a collective-bargaining agreement in force and effect on
September 1, 2017, that are not otherwise included in an exclusion pursuant to
subdivision (2)(d) of this section, (iv) amounts levied by a school district
otherwise at the maximum levy pursuant to subdivision (2)(a) of this section to
pay for fifty percent of the current and future sums agreed to be paid to
certificated employees in exchange for a voluntary termination of employment
occurring between September 1, 2018, and August 31, 2019, as a result of a
collective-bargaining agreement in force and effect on September 1, 2017, that
are not otherwise included in an exclusion pursuant to subdivision (2)(d) of
this section, (v) amounts levied by a school district otherwise at the maximum
levy pursuant to subdivision (2)(a) of this section to pay for twenty-five
percent of the current and future sums agreed to be paid to certificated
employees in exchange for a voluntary termination of employment occurring
between September 1, 2019, and August 31, 2020, as a result of a collective-
bargaining agreement in force and effect on September 1, 2017, that are not
otherwise included in an exclusion pursuant to subdivision (2)(d) of this
section, (vi) amounts levied in compliance with sections 79-10,110 and
79-10,110.02, and (vii) amounts levied to pay for special building funds and
sinking funds established for projects commenced prior to April 1, 1996, for
construction, expansion, or alteration of school district buildings. For
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purposes of this subsection, commenced means any action taken by the school
board on the record which commits the board to expend district funds in
planning, constructing, or carrying out the project.
(e) Federal aid school districts may exceed the maximum levy prescribed by
subdivision (2)(a) or (2)(c) of this section only to the extent necessary to
qualify to receive federal aid pursuant to Title VIII of Public Law 103-382, as
such title existed on September 1, 2001. For purposes of this subdivision,
federal aid school district means any school district which receives ten
percent or more of the revenue for its general fund budget from federal
government sources pursuant to Title VIII of Public Law 103-382, as such title
existed on September 1, 2001.
(f) For each fiscal year, learning communities may levy a maximum levy of
one-half cent on each one hundred dollars of taxable property subject to the
levy for elementary learning center facility leases, for remodeling of leased
elementary learning center facilities, and for up to fifty percent of the
estimated cost for focus school or program capital projects approved by the
learning community coordinating council pursuant to section 79-2111.
(g) For each fiscal year, learning communities may levy a maximum levy of
one and one-half cents on each one hundred dollars of taxable property subject
to the levy for early childhood education programs for children in poverty, for
elementary learning center employees, for contracts with other entities or
individuals who are not employees of the learning community for elementary
learning center programs and services, and for pilot projects, except that no
more than ten percent of such levy may be used for elementary learning center
employees.
(3) For each fiscal year through fiscal year 2023-24, community college
areas may levy the levies provided in subdivisions (2)(a) through (c) of
section 85-1517, in accordance with the provisions of such subdivisions. For
fiscal year 2024-25 and each fiscal year thereafter, community college areas
may levy the levies provided in subdivisions (2)(a) and (b) of section 85-1517,
in accordance with the provisions of such subdivisions. A community college
area may exceed the levy provided in subdivision (2)(a) of section 85-1517 by
the amount necessary to generate sufficient revenue as described in section
85-1543 or 85-2238. A community college area may exceed the levy provided in
subdivision (2)(b) of section 85-1517 by the amount necessary to retire general
obligation bonds assumed by the community college area or issued pursuant to
section 85-1515 according to the terms of such bonds or for any obligation
pursuant to section 85-1535 entered into prior to January 1, 1997.
(4)(a) Natural resources districts may levy a maximum levy of four and
one-half cents per one hundred dollars of taxable valuation of property subject
to the levy.
(b) Natural resources districts shall also have the power and authority to
levy a tax equal to the dollar amount by which their restricted funds budgeted
to administer and implement ground water management activities and integrated
management activities under the Nebraska Ground Water Management and Protection
Act exceed their restricted funds budgeted to administer and implement ground
water management activities and integrated management activities for FY2003-04,
not to exceed one cent on each one hundred dollars of taxable valuation
annually on all of the taxable property within the district.
(c) In addition, natural resources districts located in a river basin,
subbasin, or reach that has been determined to be fully appropriated pursuant
to section 46-714 or designated as overappropriated pursuant to section 46-713
by the Chief Water Officer of the Department of Water, Energy, and Environment
shall also have the power and authority to levy a tax equal to the dollar
amount by which their restricted funds budgeted to administer and implement
ground water management activities and integrated management activities under
the Nebraska Ground Water Management and Protection Act exceed their restricted
funds budgeted to administer and implement ground water management activities
and integrated management activities for FY2005-06, not to exceed three cents
on each one hundred dollars of taxable valuation on all of the taxable property
within the district for fiscal year 2006-07 and each fiscal year thereafter
through fiscal year 2017-18.
(5) Any educational service unit authorized to levy a property tax
pursuant to section 79-1225 may levy a maximum levy of one and one-half cents
per one hundred dollars of taxable valuation of property subject to the levy.
(6)(a) Incorporated cities and villages which are not within the
boundaries of a municipal county may levy a maximum levy of forty-five cents
per one hundred dollars of taxable valuation of property subject to the levy
plus an additional five cents per one hundred dollars of taxable valuation to
provide financing for the municipality's share of revenue required under an
agreement or agreements executed pursuant to the Interlocal Cooperation Act or
the Joint Public Agency Act. The maximum levy shall include amounts levied to
pay for sums to support a library pursuant to section 51-201, museum pursuant
to section 51-501, visiting community nurse, home health nurse, or home health
agency pursuant to section 71-1637, or statue, memorial, or monument pursuant
to section 80-202.
(b) Incorporated cities and villages which are within the boundaries of a
municipal county may levy a maximum levy of ninety cents per one hundred
dollars of taxable valuation of property subject to the levy. The maximum levy
shall include amounts paid to a municipal county for county services, amounts
levied to pay for sums to support a library pursuant to section 51-201, a
museum pursuant to section 51-501, a visiting community nurse, home health
nurse, or home health agency pursuant to section 71-1637, or a statue,
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memorial, or monument pursuant to section 80-202.
(c) Community improvement districts may levy a property tax pursuant to
the Community Improvement District Act up to the maximum levy rate specified in
the ordinance passed by the city council of the city or village board of
trustees of the village in which such community improvement district is
located. Such levy is not included in the maximum levy rates in subdivisions
(6)(a) and (6)(b) of this section.
(7) Sanitary and improvement districts which have been in existence for
more than five years may levy a maximum levy of forty cents per one hundred
dollars of taxable valuation of property subject to the levy, and sanitary and
improvement districts which have been in existence for five years or less shall
not have a maximum levy. Unconsolidated sanitary and improvement districts
which have been in existence for more than five years and are located in a
municipal county may levy a maximum of eighty-five cents per hundred dollars of
taxable valuation of property subject to the levy.
(8) Counties may levy or authorize a maximum levy of fifty cents per one
hundred dollars of taxable valuation of property subject to the levy, except
that five cents per one hundred dollars of taxable valuation of property
subject to the levy may only be levied to provide financing for the county's
share of revenue required under an agreement or agreements executed pursuant to
the Interlocal Cooperation Act or the Joint Public Agency Act. The maximum levy
shall include amounts levied to pay for sums to support a library pursuant to
section 51-201 or museum pursuant to section 51-501. The county may allocate up
to fifteen cents of its authority to other political subdivisions subject to
allocation of property tax authority under subsection (1) of section 77-3443
and not specifically covered in this section to levy taxes as authorized by law
which do not collectively exceed fifteen cents per one hundred dollars of
taxable valuation on any parcel or item of taxable property. The county may
allocate to one or more other political subdivisions subject to allocation of
property tax authority by the county under subsection (1) of section 77-3443
some or all of the county's five cents per one hundred dollars of valuation
authorized for support of an agreement or agreements to be levied by the
political subdivision for the purpose of supporting that political
subdivision's share of revenue required under an agreement or agreements
executed pursuant to the Interlocal Cooperation Act or the Joint Public Agency
Act. If an allocation by a county would cause another county to exceed its levy
authority under this section, the second county may exceed the levy authority
in order to levy the amount allocated.
(9) Municipal counties may levy or authorize a maximum levy of one dollar
per one hundred dollars of taxable valuation of property subject to the levy.
The municipal county may allocate levy authority to any political subdivision
or entity subject to allocation under section 77-3443.
(10) Beginning July 1, 2016, rural and suburban fire protection districts
may levy a maximum levy of ten and one-half cents per one hundred dollars of
taxable valuation of property subject to the levy if (a) such district is
located in a county that had a levy pursuant to subsection (8) of this section
in the previous year of at least forty cents per one hundred dollars of taxable
valuation of property subject to the levy or (b) such district had a levy
request pursuant to section 77-3443 in any of the three previous years and the
county board of the county in which the greatest portion of the valuation of
such district is located did not authorize any levy authority to such district
in such year.
(11) A regional metropolitan transit authority may levy a maximum levy of
ten cents per one hundred dollars of taxable valuation of property subject to
the levy for each fiscal year that commences on the January 1 that follows the
effective date of the conversion of the transit authority established under the
Transit Authority Law into the regional metropolitan transit authority.
(12) Property tax levies (a) for judgments, except judgments or orders
from the Commission of Industrial Relations, obtained against a political
subdivision which require or obligate a political subdivision to pay such
judgment, to the extent such judgment is not paid by liability insurance
coverage of a political subdivision, (b) for preexisting lease-purchase
contracts approved prior to July 1, 1998, (c) for bonds as defined in section
10-134 approved according to law and secured by a levy on property except as
provided in section 44-4317 for bonded indebtedness issued by educational
service units and school districts, (d) for payments by a public airport to
retire interest-free loans from the Division of Aeronautics of the Department
of Transportation in lieu of bonded indebtedness at a lower cost to the public
airport, and (e) to pay for cancer benefits provided on or after January 1,
2022, pursuant to the Firefighter Cancer Benefits Act are not included in the
levy limits established by this section.
(13) The limitations on tax levies provided in this section are to include
all other general or special levies provided by law. Notwithstanding other
provisions of law, the only exceptions to the limits in this section are those
provided by or authorized by sections 77-3442 to 77-3444.
(14) Tax levies in excess of the limitations in this section shall be
considered unauthorized levies under section 77-1606 unless approved under
section 77-3444.
(15) For purposes of sections 77-3442 to 77-3444, political subdivision
means a political subdivision of this state and a county agricultural society.
(16) For school districts that file a binding resolution on or before May
9, 2008, with the county assessors, county clerks, and county treasurers for
all counties in which the school district has territory pursuant to subsection
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(7) of section 79-458, if the combined levies, except levies for bonded
indebtedness approved by the voters of the school district and levies for the
refinancing of such bonded indebtedness, are in excess of the greater of (a)
one dollar and twenty cents per one hundred dollars of taxable valuation of
property subject to the levy or (b) the maximum levy authorized by a vote
pursuant to section 77-3444, all school district levies, except levies for
bonded indebtedness approved by the voters of the school district and levies
for the refinancing of such bonded indebtedness, shall be considered
unauthorized levies under section 77-1606.
Sec. 108. Section 77-3443, Revised Statutes Cumulative Supplement, 2024,
is amended to read:
77-3443 (1) All political subdivisions, other than (a) school districts,
community colleges, natural resources districts, educational service units,
cities, villages, counties, municipal counties, rural and suburban fire
protection districts that have levy authority pursuant to subsection (10) of
section 77-3442, community improvement districts, and sanitary and improvement
districts and (b) political subdivisions subject to municipal allocation under
subsection (2) of this section, may levy taxes as authorized by law which are
authorized by the county board of the county or the council of a municipal
county in which the greatest portion of the valuation is located, which are
counted in the county or municipal county levy limit provided in section
77-3442, and which do not collectively total more than fifteen cents per one
hundred dollars of taxable valuation on any parcel or item of taxable property
for all governments for which allocations are made by the municipality, county,
or municipal county, except that such limitation shall not apply to property
tax levies for preexisting lease-purchase contracts approved prior to July 1,
1998, for bonded indebtedness approved according to law and secured by a levy
on property, and for payments by a public airport to retire interest-free loans
from the Division of Aeronautics of the Department of Transportation in lieu of
bonded indebtedness at a lower cost to the public airport. The county board or
council shall review and approve or disapprove the levy request of all
political subdivisions subject to this subsection. The county board or council
may approve all or a portion of the levy request and may approve a levy request
that would allow the requesting political subdivision to levy a tax at a levy
greater than that permitted by law. Unless a transit authority elects to
convert to a regional metropolitan transit authority in accordance with the
Regional Metropolitan Transit Authority Act, and for each fiscal year of such a
transit authority until the first fiscal year commencing after the effective
date of such conversion, the county board of a county or the council of a
municipal county which contains a transit authority established pursuant to the
Transit Authority Law shall allocate no less than three cents per one hundred
dollars of taxable property within the city or municipal county subject to the
levy to the transit authority if requested by such authority. For any political
subdivision subject to this subsection that receives taxes from more than one
county or municipal county, the levy shall be allocated only by the county or
municipal county in which the greatest portion of the valuation is located. The
county board of equalization shall certify all levies by October 20 to insure
that the taxes levied by political subdivisions subject to this subsection do
not exceed the allowable limit for any parcel or item of taxable property. The
levy allocated by the county or municipal county may be exceeded as provided in
section 77-3444.
(2) All city airport authorities established under the Cities Airport
Authorities Act, community redevelopment authorities established under the
Community Development Law, transit authorities established under the Transit
Authority Law unless and until the first fiscal year commencing after the
effective date of any conversion by such a transit authority into a regional
metropolitan transit authority pursuant to the Regional Metropolitan Transit
Authority Act, and offstreet parking districts established under the Offstreet
Parking District Act may be allocated property taxes as authorized by law which
are authorized by the city, village, or municipal county and are counted in the
city or village levy limit or municipal county levy limit provided by section
77-3442, except that such limitation shall not apply to property tax levies for
preexisting lease-purchase contracts approved prior to July 1, 1998, for bonded
indebtedness approved according to law and secured by a levy on property, and
for payments by a public airport to retire interest-free loans from the
Division of Aeronautics of the Department of Transportation in lieu of bonded
indebtedness at a lower cost to the public airport. For offstreet parking
districts established under the Offstreet Parking District Act, the tax shall
be counted in the allocation by the city proportionately, by dividing the total
taxable valuation of the taxable property within the district by the total
taxable valuation of the taxable property within the city multiplied by the
levy of the district. Unless a transit authority elects to convert into a
regional metropolitan transit authority pursuant to the Regional Metropolitan
Transit Authority Act, and for each fiscal year of such a transit authority
until the first fiscal year commencing after the effective date of such
conversion, the city council of a city which has established a transit
authority pursuant to the Transit Authority Law or the council of a municipal
county which contains a transit authority shall allocate no less than three
cents per one hundred dollars of taxable property subject to the levy to the
transit authority if requested by such authority. The city council, village
board, or council shall review and approve or disapprove the levy request of
the political subdivisions subject to this subsection. The city council,
village board, or council may approve all or a portion of the levy request and
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may approve a levy request that would allow a levy greater than that permitted
by law. The levy allocated by the municipality or municipal county may be
exceeded as provided in section 77-3444.
(3) On or before August 1, all political subdivisions subject to county,
municipal, or municipal county levy authority under this section shall submit a
preliminary request for levy allocation to the county board, city council,
village board, or council that is responsible for levying such taxes. The
preliminary request of the political subdivision shall be in the form of a
resolution adopted by a majority vote of members present of the political
subdivision's governing body. The failure of a political subdivision to make a
preliminary request shall preclude such political subdivision from using
procedures set forth in section 77-3444 to exceed the final levy allocation as
determined in subsection (4) of this section.
(4) Each county board, city council, village board, or council shall (a)
adopt a resolution by a majority vote of members present which determines a
final allocation of levy authority to its political subdivisions and (b)
forward a copy of such resolution to the chairperson of the governing body of
each of its political subdivisions. No final levy allocation shall be changed
after September 1 except by agreement between both the county board, city
council, village board, or council which determined the amount of the final
levy allocation and the governing body of the political subdivision whose final
levy allocation is at issue.
Sec. 109. Sections 109 to 116 of this act shall be known and may be cited
as the New Taxpayer Recruitment Grant Act.
Sec. 110. For purposes of the New Taxpayer Recruitment Grant Act:
(1) Department means the Department of Economic Development;
(2) Household means one or more individuals who dwell together; and
(3) Household goal means the total number of households that a new
taxpayer recruitment program seeks to successfully incentivize to relocate or
commit to relocate from a location that is outside of this state to a
municipality in this state.
Sec. 111. (1)(a) Beginning on July 15 of each fiscal year any (i) city or
Indian tribe or band in the State of Nebraska or (ii) nonprofit organization,
the primary purpose of which includes economic development, workforce and
talent development, or community development, may apply to the department for a
grant under the New Taxpayer Recruitment Grant Act for such fiscal year.
(b) Such application shall be on a form prescribed by the department that
includes:
(i) The name of the grant applicant;
(ii) The name, title, email address, mailing address, and telephone number
for an individual who will serve as the point of contact for the grant
applicant for the department; and
(iii) A new taxpayer recruitment program plan that includes the following:
(A) The total estimated cost of the program and the itemized estimated
costs associated with the program's design, administration, marketing, and
relocation incentive initiatives;
(B) A description of the program implementation roles undertaken and
related costs of the grant applicant or other entities;
(C) The program's household goal and the estimated incentive amount per
household;
(D) The program's estimated state and local tax impact; and
(E) The program's estimated total economic impact.
(2) Each fiscal year, the department shall award grants under the New
Taxpayer Recruitment Grant Act to grant applicants with approved applications
for the purpose of the administration of new taxpayer recruitment programs of
such grant applicants and the costs associated with incentivizing households to
relocate from locations that are outside of this state to municipalities in
this state.
(3) To qualify for a grant under the New Taxpayer Recruitment Grant Act, a
grant applicant shall:
(a) Demonstrate such grant applicant's ability to contribute funding equal
to at least twenty percent of the total cost of the new taxpayer recruitment
program and a description of anticipated funding sources. The grant applicant's
contribution may include local funds or in-kind donations pursuant to section
114 of this act; and
(b) If the grant applicant is a previous recipient of a grant under the
New Taxpayer Recruitment Grant Act, submit evidence that the grant applicant
has met the household goal stated in the new taxpayer recruitment program plan
that was submitted with the application for such previous grant.
(4) The department shall consider applications in the order in which they
are received. If a grant applicant qualifies for a grant, the department shall
approve the application and notify the grant applicant of the approval within
thirty days of receiving the application.
(5) The department may approve applications and award grants under the New
Taxpayer Recruitment Grant Act subject to available funding in the New Taxpayer
Recruitment Grant Cash Fund.
(6) Any grant applicant shall not receive more than two hundred fifty
thousand dollars in grants under the New Taxpayer Recruitment Grant Act in a
fiscal year.
(7) The department shall disburse fifty percent of a grant to the grant
applicant when the grant is initially awarded and fifty percent of the grant
upon the grant applicant reporting to the department that it has successfully
met half of the household goal stated in the new taxpayer recruitment program
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plan. If the grant applicant fails to meet half of such goal, the department
shall not disburse the remaining amount of the grant and such remaining amount
shall be reawarded to other grant applicants with approved applications.
Sec. 112. To be eligible for incentives from new taxpayer recruitment
programs funded by grants under the New Taxpayer Recruitment Grant Act, a
household shall submit an application to a grant recipient for the new taxpayer
recruitment program of such grant recipient that includes:
(1) The name, date of birth, email address, telephone number, and last
four digits of the social security number for an individual who will serve as
the primary point of contact for the household;
(2) The name, date of birth, and relationship to the primary point of
contact for all members of the household;
(3) The mailing address for the primary place of residence for the
household. Such address shall be outside of the State of Nebraska at the time
the household applies for new taxpayer recruitment program incentives;
(4) Records deemed sufficient by the grant recipient to demonstrate proof
of employment and income for each employed individual in the household and a
brief job description for each employed individual. Such records shall
demonstrate a household annual income of at least fifty-five thousand dollars
to be eligible for new taxpayer recruitment program incentives; and
(5) Whether any members of the household are veterans.
Sec. 113. (1) Each grant recipient shall provide semiannual reports to
the department with the following data regarding new taxpayer recruitment
program outcomes:
(a) Total number of applications received from households;
(b) Total number of approved applications for incentives;
(c) The incentive provided to each approved household;
(d) The annual income and occupation of each individual from an approved
household; and
(e) The estimated economic impact of the new taxpayer recruitment program,
including state and local tax revenue and new consumer spending.
(2) Each household that receives an incentive from a new taxpayer
recruitment program funded by a grant under the New Taxpayer Recruitment Grant
Act shall provide the grant recipient that provided an incentive to such
household with the information that is reasonably necessary to complete the
semiannual reports required under this section. Grant recipients may rely in
good faith on such household information for purposes of completing semiannual
reports.
Sec. 114. Unless otherwise prohibited by law, any grant applicant may
utilize any resource available to it for the local funds or in-kind donations
required in subdivision (3) of section 111 of this act, including, but not
limited to:
(1) Any resource collected and disbursed pursuant to the Local Option
Municipal Economic Development Act;
(2) Any federal funding;
(3) Any donation or contribution of private funding; and
(4) The estimated market value of any donated good or service from any
public or private source.
Sec. 115. The New Taxpayer Recruitment Grant Cash Fund is created. The
department shall administer the fund and use the fund to finance grants for new
taxpayer recruitment programs under the New Taxpayer Recruitment Grant Act. The
fund shall consist of money transferred by the Legislature, and gifts, grants,
and bequests from any source, including federal, public, and private sources.
Any money in the fund available for investment shall be invested by the state
investment officer pursuant to the Nebraska Capital Expansion Act and the
Nebraska State Funds Investment Act.
Sec. 116. The department may adopt and promulgate rules and regulations
to carry out the New Taxpayer Recruitment Grant Act.
Sec. 117. Sections 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85,
86, 92, 93, 94, 95, 109, 110, 111, 112, 113, 114, 115, 116, 119 of this act
become operative three calendar months after the adjournment of this
legislative session. The other sections of this act become operative on their
effective date.
Sec. 118. Original sections 10-127, 10-131, 10-133, 10-134, 10-615,
10-1103, 10-1203, 13-402, 13-503, 13-803, 13-2503, 32-1302, 77-1842, 77-1858,
77-1901, 77-1914, 77-1915, 77-1916, and 77-1917.01, Reissue Revised Statutes of
Nebraska, sections 13-2202, 32-112.02, 32-404, 32-608, 32-1203, and 77-3443,
Revised Statutes Cumulative Supplement, 2024, and sections 13-518, 77-1701,
77-1838, 77-1902, 77-1909, and 77-3442, Revised Statutes Supplement, 2025, are
repealed.
Sec. 119. Original sections 13-3309, 18-2108, 18-2123, 18-2123.01,
18-2705, and 31-741, Reissue Revised Statutes of Nebraska, sections 13-3304,
14-102, 18-2155, 31-735, 71-1572, and 71-15,169, Revised Statutes Cumulative
Supplement, 2024, and sections 18-2102, 18-2103, 18-2147, 18-2709, and 77-202,
Revised Statutes Supplement, 2025, are repealed.
Sec. 120. Since an emergency exists, this act takes effect when passed
and approved according to law.
LB1114
2026
LB1114
2026
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