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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1125
Introduced by Sorrentino, 39.
Read first time January 20, 2026
Committee: Executive Board
A BILL FOR AN ACT relating to the University of Nebraska; to amend1
section 85-422, Reissue Revised Statutes of Nebraska; to require2
legislative approval of certain contracts as prescribed; to restrict3
ownership of certain facilities as prescribed; to repeal the4
original section; and to declare an emergency.5
Be it enacted by the people of the State of Nebraska,6
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Section 1. Section 85-422, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
85-422 (1) In order to accomplish any projects authorized by section3
85-421, the Board of Regents of the University of Nebraska may enter into4
contracts with any person, firm, or corporation providing for the5
implementation of any such project of the University of Nebraska and6
providing for the long-term payment of the cost of such project from the7
University of Nebraska Facilities Program. In no case shall any such8
contract extend for a period beyond December 31, 2063, nor shall any such9
contract exceed the repayment capabilities implicit in the funding10
streams authorized in sections 85-419 to 85-422. 11
(2) The Board of Regents of the University of Nebraska shall not12
pledge the credit of the State of Nebraska for the payment of any sum13
owing on account of such contract, except that there may be pledged for14
the payment of any such contract any appropriation specifically made by15
the Legislature for such purpose, together with such funds of the Board16
of Regents of the University of Nebraska as the board determines. No17
contract shall be entered into pursuant to this section without prior18
approval by the Board of Regents. The Board of Regents may also convey,19
lease, or lease back all or any part of the projects authorized by20
section 85-421 and the land on which such projects are situated to such21
person, firm, or corporation as the Board of Regents may contract with22
pursuant to this section to facilitate the long-term payment of the cost23
of such projects. Any such conveyance or lease shall provide that when24
the cost of such projects has been paid, together with interest and other25
costs thereon, such projects and the land on which such projects are26
located shall become the property of the Board of Regents.27
(3) The Board of Regents of the University of Nebraska is authorized28
to make expenditures for the purposes stated in this section and section29
85-421 from investment income balances in any fund created under the30
authority provided for in any contract or contracts authorized by this31
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section. Any balance existing in the University of Nebraska Facilities1
Program, whether from appropriations or the designated amounts identified2
in section 85-419, in excess of amounts required to meet debt service and3
any interest thereon for any related financing contract, and excluding4
amounts on deposit in the trust fund established pursuant to subsection5
(7) of section 85-421, shall be distributed proportionally between the6
Board of Regents and the Department of Administrative Services as to the7
total amount contributed to the program by the Board of Regents pursuant8
to section 85-419 and by the state, beginning in the fiscal year9
commencing July 1, 2009, through and including the fiscal year ending10
June 30, 2062, on December 31, 2063, or when all financial obligations11
incurred in the contracts entered into by the Board of Regents pursuant12
to this section are discharged, whichever occurs first.13
(4) Any contract by the University of Nebraska to acquire, directly14
or indirectly and whether alone or when combined with other interests15
already possessed, a controlling interest or sole interest in any16
hospital or health care facility valued at over one hundred million17
dollars shall be subject to prior approval by the Legislature and, if the18
Legislature is not in session, the Executive Board of the Legislative19
Council. 20
(5) No hospital or academic health center which serves as the21
primary affiliate of one or more of the colleges of the University of22
Nebraska Medical Center may be owned or controlled, directly or23
indirectly, in whole or in part, by a for-profit entity or an out-of-24
state entity unless the Attorney General determines that ownership or25
control by a for-profit entity or an out-of-state entity is in the public26
interest. Any determination under this section must be made in27
consultation with the Board of Regents of the University of Nebraska.28
Sec. 2. Original section 85-422, Reissue Revised Statutes of29
Nebraska, is repealed. 30
Sec. 3. Since an emergency exists, this act takes effect when31
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passed and approved according to law. 1
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