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LB1135 • 2026

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Sponsor
Introduced By: Urban Affairs Committee
Last action
2026-04-17
Official status
Provisions/portions of LB1250 amended into LB1135 by AM3059
Effective date
Not listed

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The official site of the Nebraska Unicameral Legislature

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What This Bill Does

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Bill History

  1. 2026-04-17 Nebraska Legislature

    Presented to Governor on April 10, 2026

  2. 2026-04-17 Nebraska Legislature

    Approved by Governor on April 14, 2026

  3. 2026-04-17 Nebraska Legislature

    Provisions/portions of LB811 amended into LB1135 by AM2821

  4. 2026-04-17 Nebraska Legislature

    Provisions/portions of LB842 amended into LB1135 by AM2460

  5. 2026-04-17 Nebraska Legislature

    Provisions/portions of LB799 amended into LB1135 by AM2460

  6. 2026-04-17 Nebraska Legislature

    Provisions/portions of LB1163 amended into LB1135 by AM2460

  7. 2026-04-17 Nebraska Legislature

    Provisions/portions of LB1168 amended into LB1135 by AM2460

  8. 2026-04-17 Nebraska Legislature

    Provisions/portions of LB1250 amended into LB1135 by AM3059

  9. 2026-04-10 Nebraska Legislature

    Dispensing of reading at large approved

  10. 2026-04-10 Nebraska Legislature

    Passed on Final Reading with Emergency Clause 48-1-0

  11. 2026-04-10 Nebraska Legislature

    President/Speaker signed

  12. 2026-04-07 Nebraska Legislature

    Placed on Final Reading with ST84

  13. 2026-04-07 Nebraska Legislature

    Enrollment and Review ST84 filed

  14. 2026-04-07 Nebraska Legislature

    Enrollment and Review ST84 recorded

  15. 2026-04-01 Nebraska Legislature

    Enrollment and Review ER153 adopted

  16. 2026-04-01 Nebraska Legislature

    Kauth FA795 withdrawn

  17. 2026-04-01 Nebraska Legislature

    Dover FA1148 to AM2821 filed

  18. 2026-04-01 Nebraska Legislature

    Dover FA1148 adopted

  19. 2026-04-01 Nebraska Legislature

    Dover AM2821 adopted

  20. 2026-04-01 Nebraska Legislature

    McKinney AM2925 withdrawn

  21. 2026-04-01 Nebraska Legislature

    Spivey AM2872 not germane

  22. 2026-04-01 Nebraska Legislature

    Motion to overrule Chair withdrawn

  23. 2026-04-01 Nebraska Legislature

    McKinney AM2862 adopted

  24. 2026-04-01 Nebraska Legislature

    McKinney AM2993 adopted

  25. 2026-04-01 Nebraska Legislature

    Guereca AM3059 filed

  26. 2026-04-01 Nebraska Legislature

    Guereca AM3059 adopted

  27. 2026-04-01 Nebraska Legislature

    Advanced to Enrollment and Review for Engrossment

  28. 2026-03-31 Nebraska Legislature

    McKinney AM2993 filed

  29. 2026-03-25 Nebraska Legislature

    McKinney AM2925 filed

  30. 2026-03-25 Nebraska Legislature

    McKinney AM2862 filed

  31. 2026-03-25 Nebraska Legislature

    Placed on Select File with ER153

  32. 2026-03-25 Nebraska Legislature

    Enrollment and Review ER153 filed

  33. 2026-03-23 Nebraska Legislature

    Spivey AM2872 filed

  34. 2026-03-19 Nebraska Legislature

    Dover AM2821 filed

  35. 2026-03-17 Nebraska Legislature

    McKinney MO514 withdrawn

  36. 2026-03-17 Nebraska Legislature

    McKinney MO515 withdrawn

  37. 2026-03-17 Nebraska Legislature

    McKinney MO516 withdrawn

  38. 2026-03-17 Nebraska Legislature

    McKinney AM2695 to AM2460 filed

  39. 2026-03-17 Nebraska Legislature

    McKinney AM2695 adopted

  40. 2026-03-17 Nebraska Legislature

    Urban Affairs AM2460 adopted

  41. 2026-03-17 Nebraska Legislature

    Advanced to Enrollment and Review Initial

  42. 2026-03-10 Nebraska Legislature

    McKinney MO514 Indefinitely postpone pursuant to Rule 6, Sec. 3(f) filed

  43. 2026-03-10 Nebraska Legislature

    McKinney MO515 Bracket until April 17, 2026 filed

  44. 2026-03-10 Nebraska Legislature

    McKinney MO516 Recommit to the Urban Affairs Committee filed

  45. 2026-03-10 Nebraska Legislature

    Placed on General File with AM2460

  46. 2026-03-10 Nebraska Legislature

    Urban Affairs AM2460 filed

  47. 2026-02-17 Nebraska Legislature

    Urban Affairs priority bill

  48. 2026-02-03 Nebraska Legislature

    Notice of hearing for February 10, 2026

  49. 2026-01-22 Nebraska Legislature

    Referred to Urban Affairs Committee

  50. 2026-01-21 Nebraska Legislature

    Kauth FA795 filed

  51. 2026-01-20 Nebraska Legislature

    Date of introduction

Official Summary Text

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Current Bill Text

Read the full stored bill text
LEGISLATIVE BILL 1135
Approved by the Governor April 14, 2026

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

A BILL FOR AN ACT relating to government; to amend sections 13-3206, 18-2124,
18-2125, 18-2136, 18-3404, 18-3405, 18-3407, 18-3408, 18-3410, and
18-3413, Reissue Revised Statutes of Nebraska, section 18-2117.01, Revised
Statutes Cumulative Supplement, 2024, and sections 18-2101.02 and 18-2147,
Revised Statutes Supplement, 2025; to adopt the Service Contract Reporting
Act; to authorize certain municipal contracts and agreements relating to
parking facilities; to change provisions relating to delinquent annual
assessments and PACE liens under the Property Assessed Clean Energy Act;
to authorize the issuance of conduit revenue bonds and certain taxpayer
agreements under the Community Development Law; to change provisions of
the Nebraska Municipal Land Bank Act; to provide for the sale of certain
waterworks, sewer systems, and water systems to Indian tribes; to
harmonize provisions; to provide a duty for the Revisor of Statutes; 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 5 of this act shall be known and may be cited as
the Service Contract Reporting Act.
Sec. 2. For purposes of the Service Contract Reporting Act:
(1) City means a city of the metropolitan class;
(2) County means a county in this state with a population of more than
five hundred thousand inhabitants as determined by the most recent federal
decennial census;
(3) Division means the materiel division of the Department of
Administrative Services;
(4) Fiscal year means the twelve-month period used by the city, county, or
state agency for budgeting purposes;
(5) Service contract means a contract that:
(a) Is awarded by a city, county, or state agency for the provision of
legal services, accounting services, financial consulting services, management
consulting services, health care services, engineering services, architectural
services, information technology services, marketing and advertising services,
human resources consulting services, environmental consulting services,
educational and training services, snow removal and hauling services,
janitorial services, custodial and cleaning services, yard maintenance
services, or tree removal services; and
(b) Has a value of:
(i) For contracts entered into prior to January 1, 2029, seventy thousand
dollars or more;
(ii) For contracts entered into on or after January 1, 2029, and prior to
January 1, 2034, ninety thousand dollars or more; or
(iii) For contracts entered into on or after January 1, 2034, one hundred
ten thousand dollars or more;
(6) State agency means any agency, board, or commission of this state
other than the University of Nebraska, the Nebraska state colleges, the courts,
the Legislature, or any officer or state agency established by the Constitution
of Nebraska;
(7) State aid means:
(a) For both cities and counties, state aid paid pursuant to sections
60-3,202 and 77-3523;
(b) For cities, state aid to cities paid pursuant to sections 39-2501 to
39-2520, 60-3,190, and 77-27,139.04 and insurance premium tax paid to cities;
and
(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; and
(8) Zip code means the numerical code used by the United States Postal
Service to identify geographic areas.
Sec. 3. On or before March 1, 2028, and on or before March 1 of each year
thereafter, each city, county, and state agency shall submit a report to the
division containing the following information:
(1) The name and address of each individual or entity that was awarded a
service contract during the most recently completed fiscal year and the type of
service involved in each such contract;
(2) The total dollar value of service contracts awarded during the most
recently completed fiscal year, including an overall total and a breakdown by
zip code; and
(3) A description of any efforts made by the city, county, or state agency
to increase the number of service contracts awarded to individuals and entities
located within zip codes with the lowest amounts of service contract awards.
Sec. 4. On or before April 1, 2028, and on or before April 1 of each year
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thereafter, the division shall compile the information reported under section 3
of this act and shall electronically submit a comprehensive report regarding
such information to the Governor, the Clerk of the Legislature, and the Urban
Affairs Committee of the Legislature. The division shall also make the
comprehensive report available on the website of the Department of
Administrative Services.
Sec. 5. If any city or county fails to submit an annual report to the
division as required under section 3 of this act, the division shall send
notification of the noncompliance to the governing body of the relevant city or
county and to the State Treasurer. The State Treasurer shall then suspend all
distributions of state aid allocated to the city or county until the annual
report is submitted. Once the annual report has been submitted, the city or
county shall again become entitled to all distributions of state aid, including
any suspended distributions.
Sec. 6. (1) Any city of the first class, city of the second class, or
village may enter into contracts or agreements with any person, firm,
corporation, or political subdivision for the operation, maintenance,
management, or enforcement of municipal parking facilities, including onstreet
metered parking and offstreet public lots or garages.
(2) Such contracts or agreements may authorize the person, firm,
corporation, or political subdivision to issue and process parking citations,
collect fines, maintain equipment, or operate payment systems, provided that
the city or village retains final authority over adjudication and appeals.
(3) The city or village shall retain sufficient control over the parking
facilities to ensure proper operation in the public interest and to establish
or approve all rates, charges, and fines.
(4) No contract or agreement under this section shall exceed:
(a) Thirty years in duration, including renewals, for a city of the first
class; or
(b) Ten years in duration, including renewals, for a city of the second
class or village.
Sec. 7. Section 13-3206, Reissue Revised Statutes of Nebraska, is amended
to read:
13-3206 (1)(a) For qualifying property other than single-family
residential property, any annual assessment imposed on such qualifying property
that becomes delinquent, including any interest on the annual assessment and
any penalty, shall constitute a PACE lien against the qualifying property on
which the annual assessment is imposed until the annual assessment, including
any interest and penalty, is paid in full. Any annual assessment that is not
paid within the time period set forth in the assessment contract shall be
considered delinquent. The municipality shall, within fourteen days after an
annual assessment becomes delinquent or, if there is a third-party lender
financing the energy project, within fourteen days after receiving notice from
such third-party lender that an annual assessment has become delinquent, record
a notice of such lien in the office of the register of deeds of the county in
which the qualifying property is located. The municipality shall certify the
amount of any such delinquency and lien to the county treasurer, and the lien
shall be treated as a special assessment in the same manner as special
assessments are treated under section 77-1858 and shall be subject to the same
collection processes for real estate taxes and special assessments as set forth
in Chapter 77, including, without limitation, sections 77-1801 to 77-1863.
(b) For qualifying property that is single-family residential property,
all annual assessments imposed on such qualifying property, including any
interest on the annual assessments and any penalty, shall, upon the initial
annual assessment, constitute a PACE lien against the qualifying property on
which the annual assessments are imposed until all annual assessments,
including any interest and penalty, are paid in full. Any annual assessment
that is not paid within the time period set forth in the assessment contract
shall be considered delinquent. The municipality shall, upon imposition of the
initial annual assessment, record a notice of such lien in the office of the
register of deeds of the county in which the qualifying property is located.
(2) A notice of lien filed under this section shall, at a minimum,
include:
(a) The amount of funds disbursed or to be disbursed pursuant to the
assessment contract;
(b) The names and addresses of the current owners of the qualifying
property subject to the annual assessment;
(c) The legal description of the qualifying property subject to the annual
assessment;
(d) The duration of the assessment contract; and
(e) The name and address of the municipality filing the notice of lien.
(3) The PACE lien created under this section shall:
(a) For qualifying property that is single-family residential property,
(i) be subordinate to all liens on the qualifying property recorded prior to
the time the notice of the PACE lien is recorded, (ii) be subordinate to a
first mortgage or trust deed on the qualifying property recorded after the
notice of the PACE lien is recorded, and (iii) have priority over any other
lien on the qualifying property recorded after the notice of the PACE lien is
recorded; and
(b) For qualifying property other than single-family residential property
and subject to the requirement in subdivision (2)(a) of section 13-3205 to
obtain and record an executed consent and subordination agreement, have the
same priority and status as real property tax liens.
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(4)(a) Notwithstanding any other provision of law, in the event of a sale
pursuant to a foreclosure or a sale pursuant to the exercise of a power of sale
under a trust deed relating to qualifying property that is single-family
residential property, the holders of any mortgages, trust deeds, or other
liens, including delinquent annual assessments secured by PACE liens, shall
receive proceeds in accordance with the priorities established under
subdivision (3)(a) of this section. In the event there are insufficient
proceeds from such a sale, from the loss reserve fund established pursuant to
section 13-3208, or from any other means to satisfy the delinquent annual
assessments, such delinquent annual assessments shall be extinguished. Any
annual assessment that has not yet become delinquent shall not be accelerated
or extinguished in the event of a sale pursuant to a foreclosure or a sale
pursuant to the exercise of a power of sale under a trust deed relating to
qualifying property that is single-family residential property. Upon the
transfer of ownership of qualifying property that is single-family residential
property, including a sale pursuant to a foreclosure or a sale pursuant to the
exercise of a power of sale under a trust deed, the nondelinquent annual
assessments shall continue as a lien on the qualifying property, subject to the
priorities established under subdivision (3)(a) of this section.
(b) Upon the transfer of ownership of qualifying property other than
single-family residential property, including a sale pursuant to a foreclosure
or a sale pursuant to the exercise of a power of sale under a trust deed, the
obligation to pay annual assessments shall run with the qualifying property.
(5)(a) For qualifying property other than single-family residential
property, when the delinquent annual assessment, including any interest and
penalty, is paid in full, a release of the PACE lien shall be recorded in the
office of the register of deeds of the county in which the notice of the PACE
lien was recorded.
(b) For qualifying property that is single-family residential property,
when all annual assessments, including any interest and penalty, are paid in
full, a release of the PACE lien shall be recorded in the office of the
register of deeds of the county in which the notice of the PACE lien was
recorded.
(6) If the holder or loan servicer of any existing mortgage or trust deed
that encumbers or that is otherwise secured by the qualifying property has
established a payment schedule or escrow account to accrue property taxes or
insurance, such holder or loan servicer may increase the required monthly
payment, if any, by an amount necessary to pay the annual assessment imposed
under the Property Assessed Clean Energy Act.
Sec. 8. Section 18-2101.02, Revised Statutes Supplement, 2025, is amended
to read:
18-2101.02 (1) For any city that (a) intends to prepare a redevelopment
plan that will divide ad valorem taxes for a period of more than fifteen years
but not more than twenty years as provided in subdivision (5)(a) (4)(a) of
section 18-2147, (b) intends to declare an area as an extremely blighted area
for purposes of funding decisions under subdivision (1)(b) of section 58-708,
or (c) intends to declare an area as an extremely blighted area in order for
individuals purchasing residences in such area to qualify for the income tax
credit authorized in subsection (7) of section 77-2715.07, the governing body
of such city shall first declare, by resolution adopted after the public
hearings required under this section, such area to be an extremely blighted
area.
(2) Prior to making such declaration, the governing body of the city shall
conduct or cause to be conducted a study or an analysis on whether the area is
extremely blighted and shall submit the question of whether such area is
extremely blighted to the planning commission or board of the city for its
review and recommendation. The planning commission or board shall hold a public
hearing on the question after giving notice of the hearing as provided in
section 18-2115.01. The planning commission or board shall submit its written
recommendations to the governing body of the city within thirty days after the
public hearing.
(3) Upon receipt of the recommendations of the planning commission or
board, or if no recommendations are received within thirty days after the
public hearing required under subsection (2) of this section, the governing
body shall hold a public hearing on the question of whether the area is
extremely blighted after giving notice of the hearing as provided in section
18-2115.01. At the public hearing, all interested parties shall be afforded a
reasonable opportunity to express their views respecting the proposed
declaration. After such hearing, the governing body of the city may make its
declaration.
(4) Copies of each study or analysis conducted pursuant to subsection (2)
of this section shall be posted on the city's public website or made available
for public inspection at a location designated by the city.
(5) The study or analysis required under subsection (2) of this section
may be conducted in conjunction with the study or analysis required under
section 18-2109. The hearings required under this section may be held in
conjunction with the hearings required under section 18-2109.
(6) Notwithstanding any other provisions of the Community Development Law,
the designation of an area as an extremely blighted area pursuant to this
section shall be valid for a period of no less than twenty-five years from the
effective date of the resolution declaring such area to be an extremely
blighted area, except that such designation may be removed prior to the end of
such period pursuant to section 18-2156.
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Sec. 9. Section 18-2117.01, Revised Statutes Cumulative Supplement, 2024,
is amended to read:
18-2117.01 (1)(a) On or before December 1 each year, each city which has
approved one or more redevelopment plans which are financed in whole or in part
through the division of taxes as provided in section 18-2147 shall provide a
report to the Property Tax Administrator on each such redevelopment plan which
includes the following information:
(i) A copy of the redevelopment plan and any amendments thereto, including
the date upon which the redevelopment plan was approved, the effective date for
dividing the ad valorem tax as provided to the county assessor pursuant to
subsection (7) (6) of section 18-2147, and the location and boundaries of the
property in the redevelopment project; and
(ii) A short narrative description of the type of development undertaken
by the city or village with the financing and the type of business or
commercial activity locating within the redevelopment project area as a result
of the redevelopment project.
(b) If a city has approved one or more redevelopment plans using an
expedited review under section 18-2155, the city may file a single report under
this subsection for all such redevelopment plans.
(2) The report required under subsection (1) of this section must be filed
each year, regardless of whether the information in the report has changed,
except that a city is not required to refile a copy of the redevelopment plan
or an amendment thereto if such copy or amendment has previously been filed.
(3) The Property Tax Administrator shall compile a report for each active
redevelopment project, based upon information provided by the cities pursuant
to subsection (1) of this section and information reported by the county
assessor or county clerk on the certificate of taxes levied pursuant to section
77-1613.01. Each report shall be electronically transmitted to the Clerk of the
Legislature not later than March 1 each year. The report may include any
recommendations of the Property Tax Administrator as to what other information
should be included in the report from the cities so as to facilitate analysis
of the uses, purposes, and effectiveness of tax-increment financing and the
process for its implementation or to streamline the reporting process provided
for in this section to eliminate unnecessary paperwork.
Sec. 10. Section 18-2124, Reissue Revised Statutes of Nebraska, is amended
to read:
18-2124 An authority may issue bonds , including conduit revenue bonds
subject to a taxpayer agreement entered into pursuant to subsection (3) of
section 18-2147, from time to time in its discretion for any of its corporate
purposes, including the payment of principal and interest upon any advances for
surveys and plans for redevelopment projects. An authority may also issue
refunding bonds for the purpose of paying, retiring, or otherwise refinancing
or in exchange for any or all of the principal or interest upon bonds
previously issued by the authority. An authority may issue such types of bonds
as it may determine, including, without limiting the generality of the
foregoing, bonds on which the principal and interest are payable: (1)
Exclusively from the income, proceeds, and revenue of the redevelopment project
financed with proceeds of such bonds; (2) exclusively from the income,
proceeds, and revenue of any of its redevelopment projects whether or not they
are financed in whole or in part with the proceeds of such bonds; (3)
exclusively from its revenue and income, including any special assessment
levied pursuant to section 18-1722 and such tax revenue or receipts as may be
authorized under the Community Development Law, including those which may be
pledged under section 18-2150, and from such grants and loans as may be
received; or (4) from all or part of the income, proceeds, and revenue
enumerated in subdivisions (1), (2), and (3) of this section. Any such bonds
may be additionally secured by a pledge of any loan, grant, or contributions,
or parts thereof, from the federal government or other source or a mortgage of
any redevelopment project or projects of the authority. The authority shall not
pledge the credit or taxing power of the state or any political subdivision
thereof, except such tax receipts as may be authorized under this section or
pledged under section 18-2150, or place any lien or encumbrance on any property
owned by the state, county, or city used by the authority.
Sec. 11. Section 18-2125, Reissue Revised Statutes of Nebraska, is amended
to read:
18-2125 Neither the members of an authority nor any person executing the
bonds shall be liable personally on the bonds by reason of the issuance
thereof. The bonds and other obligations of the authority, and such bonds and
obligations shall so state on their face, shall not be a debt of the city and
the city shall not be liable on such bonds, except to the extent authorized by
sections 18-2147 to 18-2150, nor in any event shall such bonds or obligations
be payable out of any funds or properties other than those of said authority
acquired for the purposes of the Community Development Law, except to the
extent authorized by sections 18-2147 to 18-2150. Except to the extent
otherwise authorized, the bonds shall not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation or restriction.
Bonds of an authority are declared to be issued for an essential public and
governmental purpose and to be public instrumentalities and, together with
interest thereon and income therefrom, shall be exempt from all Nebraska taxes.
All bonds , except conduit revenue bonds issued pursuant to subsection (3) of
section 18-2147, shall be general obligations of the authority issuing same and
shall be payable out of any revenue, income, receipts, proceeds, or other money
of the authority, except as may be otherwise provided in the instruments
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themselves.
An authority shall have power from time to time to issue bond anticipation
notes, referred to as notes herein, and from time to time to issue renewal
notes, such notes in any case to mature not later than thirty months from the
date of incurring the indebtedness represented thereby in an amount not
exceeding in the aggregate at any time outstanding the amount of bonds then or
theretofore authorized. Payment of such notes shall be made from any money or
revenue which the authority may have available for such purpose or from the
proceeds of the sale of bonds of the authority, or such notes may be exchanged
for a like amount of such bonds. The authority may pledge such money or revenue
of the authority, subject to prior pledges thereof, if any, for the payment of
such notes, and may in addition secure the notes in the same manner as herein
provided for bonds. All notes shall be issued and sold in the same manner as
bonds, and any authority shall have power to make contracts for the future sale
from time to time of notes on terms and conditions stated in such contracts,
and the authority shall have power to pay such consideration as it shall deem
proper for any commitments to purchase notes and bonds in the future. Such
notes shall also be collaterally secured by pledges and deposits with a bank or
trust company, in trust for the payment of such notes, of bonds in an aggregate
amount at least equal to the amount of such notes and, in any event, in an
amount deemed by the issuing authority sufficient to provide for the payment of
the notes in full at the maturity thereof. The authority may provide in the
collateral agreement that the notes may be exchanged for bonds held as
collateral security for the notes, or that the trustee may sell the bonds if
the notes are not otherwise paid at maturity, and apply the proceeds of such
sale to the payment of the notes. Such notes shall bear interest at a rate set
by the authority, and shall be sold at such price as shall cause an interest
cost thereon not to exceed such rate.
It is the intention hereof that any pledge of revenue, income, receipts,
proceeds, or other money made by an authority for the payment of bonds or notes
shall be valid and binding from the time such pledge is made; that the revenue,
income, receipts, proceeds, and other money so pledged and thereafter received
by the authority shall immediately be subject to the lien of such pledge
without the physical delivery thereof or further act, and that the lien of any
such pledge shall be valid and binding as against all parties having claims of
any kind in tort, contract, or otherwise against the authority irrespective of
whether such parties have notice thereof. Neither the resolution nor any other
instrument by which a pledge is created need be recorded.
Sec. 12. Section 18-2136, Reissue Revised Statutes of Nebraska, is amended
to read:
18-2136 All property including funds of an authority shall be exempt from
levy and sale by virtue of an execution, and no execution or other judicial
process shall issue against such property nor shall judgment against an
authority be a charge or lien upon its property. The provisions of this section
shall not apply to or limit the right of obligees to foreclose or otherwise
enforce any taxpayer agreement entered into pursuant to subsection (3) of
section 18-2147 or any mortgage of an authority or the right of obligees to
pursue any remedies for the enforcement of any pledge or lien given by an
authority on its rents, fees, grants, or revenue.
Sec. 13. 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 (5) (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
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
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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) An authority may enter into a redevelopment contract or adopt a
bond resolution or redevelopment plan pursuant to which it issues conduit
revenue bonds and under which the authority may pledge a percentage, up to and
including one hundred percent, of the annual excess tax revenues described in
subdivision (1)(b) of this section, if any, toward the authority's obligations
under the contract, resolution, or plan. The ad valorem taxes to be pledged
under this subsection shall be placed 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 the redevelopment project. When an authority
has pledged less than one hundred percent of the excess tax revenues under the
contract, resolution, or plan, the unpledged portion of ad valorem taxes
collected on the real property shall be paid into the funds of the respective
public bodies as provided in subdivision (1)(b) of this section.
(b) An authority that issues one or more conduit revenue bonds pursuant to
subdivision (3)(a) of this section may enter into an agreement with a taxpayer
that limits the taxpayer's rights to challenge the assessment of real property
taxes on real property within a redevelopment project or that guarantees,
enhances, or otherwise further secures bonds issued by the authority, such as
by guaranteeing any shortfall in real property taxes pledged to payment of the
conduit revenue bonds issued to support a redevelopment project, if (i) the
taxpayer's real property is within such redevelopment project and (ii) the real
property taxes levied upon such real property are subject to division in
accordance with subdivision (3)(a) of this section. The obligation to make
payments under a taxpayer agreement that guarantee, enhance, or otherwise
further secure conduit revenue bonds issued pursuant to subdivision (3)(a) of
this section shall be treated in the same manner as property taxes for purposes
of section 77-203 if, and to the extent that, the taxpayer agreement provides
for a property tax lien.
(c) A lien resulting from a taxpayer agreement described in subdivision
(3)(b) of this section takes priority over any existing or subsequent mortgage,
other lien, or other encumbrance on the property, shall have parity with a
property tax lien described in section 77-203, and may be enforced and
collected in all respects as real property taxes.
(4)(a) (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.
(5)(a) (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
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redevelopment plan, whichever is applicable.
(6) (5) The effective date of a provision dividing ad valorem taxes as
provided in subsection (5) (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. This subsection shall not apply to a redevelopment
project involving a formerly used defense site as authorized in section
18-2123.01.
(7) (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
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 (5) (4) of this section.
Sec. 14. Section 18-3404, Reissue Revised Statutes of Nebraska, is amended
to read:
18-3404 (1) A single municipality may create a land bank if the
municipality is a city of the metropolitan class or city of the primary class.
Such municipality shall create the land bank by the adoption of an ordinance
which specifies the following:
(a) The name of the land bank;
(b) The initial individuals to serve as members of the board and the
length of terms for which they are to serve; and
(c) The qualifications and terms of office of members of the board.
(2) Two or more municipalities may elect to enter into an agreement
pursuant to the Interlocal Cooperation Act to create a single land bank to act
on behalf of such municipalities, which agreement shall contain the information
required by subsection (1) of this section.
(3) A municipality may elect to join an existing land bank by entering
into an agreement pursuant to the Interlocal Cooperation Act with a
municipality city of the metropolitan class or city of the primary class that
has created a land bank pursuant to subsection (1) of this section or by
joining an existing agreement pursuant to the Interlocal Cooperation Act with
the municipalities that formed a land bank pursuant to subsection (2) of this
section. Agreements entered into or joined under this subsection shall contain
the information required by subsection (1) of this section.
(4) Each land bank created pursuant to the Nebraska Municipal Land Bank
Act shall be deemed to be a public corporation acting in a governmental
capacity and a political subdivision of the state and shall have permanent and
perpetual duration until terminated and dissolved in accordance with section
18-3414.
(5) The primary goal of any land bank shall be to facilitate the return of
vacant, abandoned, and tax-delinquent properties to productive use.
Sec. 15. Section 18-3405, Reissue Revised Statutes of Nebraska, is amended
to read:
18-3405 (1) If a land bank is created by a single municipality pursuant to
subsection (1) of section 18-3404, the board of such land bank shall meet the
following requirements:
(a) The board shall consist of:
(i) An odd number of Seven voting members , totaling at least seven,
appointed by the chief executive officer of the municipality that created the
land bank and confirmed by a two-thirds vote of the governing body of such
municipality; and
(ii) The following nonvoting members:
(A) The planning director of the municipality that created the land bank
or his or her designee or, if there is no planning director, a person
designated by the governing body of the municipality that created the land
bank;
(B) One member of the governing body of the municipality that created the
land bank, appointed by such governing body; and
(C) Such other nonvoting members as are appointed by the chief executive
officer of the municipality that created the land bank and confirmed by a two-
thirds vote of the governing body of such municipality;
(b) Each voting member of the board shall reside (i) within the
municipality that created the land bank or (ii) within three miles of such
municipality, except that a majority of the voting members shall reside within
the municipality that created the land bank; The seven voting members of the
board shall be residents of the municipality that created the land bank;
(c) If the governing body of the municipality creating the land bank has
any of its members elected by district or ward, then at least one voting member
of the board shall be appointed from each such district or ward. Such voting
members shall represent, to the greatest extent possible, the racial and ethnic
diversity of the municipality creating the land bank;
(d) The seven voting members of the board shall include individuals with
knowledge, expertise, or experience in fields relevant to land bank operations,
including, but not limited to, community development, real estate, and housing;
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have, collectively, verifiable skills, expertise, and knowledge in market-rate
and affordable residential, commercial, industrial, and mixed-use real estate
development, financing, law, purchasing and sales, asset management, economic
and community development, and the acquisition of tax sale certificates;
(e) The seven voting members of the board shall include the following
individuals to the extent such individuals can reasonably be found:
(i) At least one member representing a chamber of commerce;
(ii) At least one member with experience in banking;
(iii) At least one member with experience in real estate development;
(iv) At least one member with experience as a realtor;
(v) At least one member with experience in nonprofit or affordable
housing; and
(vi) At least one member with experience in large-scale residential or
commercial property rental; and
(vii) At least one member who resides in the city council district
described in subdivision (3)(c)(i) of section 13-2610. This subdivision (vii)
shall only apply to a land bank created by a city of the metropolitan class;
and
(f) A single voting member may satisfy more than one of the requirements
provided in subdivision (1)(e) of this section if he or she has the required
qualifications. It is not necessary that there be a different member to fulfill
each such requirement.
(2) If a land bank is created by more than one municipality pursuant to an
agreement under the Interlocal Cooperation Act as described in subsection (2)
or (3) of section 18-3404, the board of such land bank shall meet the following
requirements:
(a) The board shall consist of:
(i) An odd number of voting members, totaling at least seven, appointed by
the chief executive officers of the municipalities that created the land bank,
as mutually agreed to by such chief executive officers, and confirmed by a two-
thirds vote of the governing body of each municipality that created the land
bank; and
(ii) The following nonvoting members:
(A) The planning director of each municipality that created the land bank
or his or her designee or, if there is no planning director for any
municipality that created the land bank, a person designated by the governing
body of such municipality;
(B) One member of the governing body of each municipality that created the
land bank, appointed by the governing body on which such member serves; and
(C) Such other nonvoting members as are appointed by the chief executive
officers of the municipalities that created the land bank, as mutually agreed
to by such chief executive officers, and confirmed by a two-thirds vote of the
governing body of each municipality that created the land bank;
(b) Each voting member of the board shall reside (i) within one of the
municipalities that created the land bank or (ii) within three miles of such a
municipality, except that a majority of the voting members shall reside within
the municipality in which the majority of land bank property is located; and be
a resident of one of the municipalities that created the land bank. If a land
bank is created by a city of the metropolitan class or a city of the primary
class, at least one voting member of the board shall be appointed from each of
the municipalities that created the land bank;
(c) The voting members of the board shall include individuals with
knowledge, expertise, or experience in fields relevant to land bank operations,
including, but not limited to, community development, real estate, and housing.
have, collectively, verifiable skills, expertise, and knowledge in market-rate
and affordable residential, commercial, industrial, and mixed-use real estate
development, financing, law, purchasing and sales, asset management, economic
and community development, and the acquisition of tax sale certificates;
(d) The voting members of the board shall include:
(i) At least one member representing a chamber of commerce;
(ii) At least one member with experience in banking;
(iii) At least one member with experience in real estate development;
(iv) At least one member with experience as a realtor;
(v) At least one member with experience in nonprofit or affordable
housing; and
(vi) At least one member with experience in large-scale residential or
commercial property rental; and
(e) A single voting member may satisfy more than one of the requirements
provided in subdivision (2)(d) of this section if he or she has the required
qualifications. It is not necessary that there be a different member to fulfill
each such requirement.
(3) The members of the board shall select annually from among themselves a
chairperson, a vice-chairperson, a treasurer, and such other officers as the
board may determine.
(4) A public official or public employee shall be eligible to be a member
of the board.
(5) A vacancy on the board among the appointed board members shall be
filled not later than six months after the date of such vacancy in the same
manner as the original appointment.
(6) Board members shall serve without compensation.
(7) The board shall meet in regular session according to a schedule
adopted by the board and shall also meet in special session as convened by the
chairperson or upon written notice signed by a majority of the voting members.
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The presence of a majority of the voting members of the board shall constitute
a quorum.
(8) Except as otherwise provided in this section and in sections 18-3410,
18-3417, and 18-3418, all actions of the board shall be approved by the
affirmative vote of a majority of the voting members present and voting.
(9) Any action of the board on the following matters shall be approved by
a majority of the voting members:
(a) Adoption of bylaws and other rules and regulations for conduct of the
land bank's business;
(b) Hiring or firing of any employee or contractor of the land bank. This
function may, by majority vote of the voting members, be delegated by the board
to a specified officer or committee of the land bank, under such terms and
conditions, and to the extent, that the board may specify;
(c) The incurring of debt;
(d) Adoption or amendment of the annual budget; and
(e) Sale, lease, encumbrance, or alienation of real property,
improvements, or personal property with a value of more than fifty thousand
dollars.
(10) Members of a board shall not be liable personally on the bonds or
other obligations of the land bank, and the rights of creditors shall be solely
against such land bank.
(11) The board of a land bank created by a city of the metropolitan class
that borders a county in which at least three cities of the first class are
located shall adopt policies and procedures to specify the conditions that must
be met in order for such land bank to give an automatically accepted bid as
authorized in sections 18-3417 and 18-3418. The adoption of such policies and
procedures shall require the approval of two-thirds of the voting members of
the board. At a minimum, such policies and procedures shall ensure that the
automatically accepted bid shall only be given for one of the following
reasons:
(a) The real property substantially meets more than one of the following
criteria as determined by two-thirds of the voting members of the board:
(i) The property is not occupied by the owner or any lessee or licensee of
the owner;
(ii) There are no utilities currently being provided to the property;
(iii) Any buildings on the property have been deemed unfit for human
habitation, occupancy, or use by local housing officials;
(iv) Any buildings on the property are exposed to the elements such that
deterioration of the building is occurring;
(v) Any buildings on the property are boarded up;
(vi) There have been previous efforts to rehabilitate any buildings on the
property;
(vii) There is a presence of vermin, uncut vegetation, or debris
accumulation on the property;
(viii) There have been past actions by the municipality to maintain the
grounds or any building on the property; or
(ix) The property has been out of compliance with orders of local housing
officials;
(b) The real property is contiguous to a parcel that meets more than one
of the criteria in subdivision (11)(a) of this section or that is already owned
by the land bank; or
(c) Acquisition of the real property by the land bank would serve the best
interests of the community as determined by two-thirds of the voting members of
the board. In determining whether the acquisition would serve the best
interests of the community, the board shall take into consideration the
hierarchical ranking of priorities for the use of real property conveyed by a
land bank established pursuant to subsection (5) of section 18-3410, if any
such hierarchical ranking is established.
(12)(a) A member of the board may be removed for neglect of duty,
misconduct in office, conviction of any felony, or other good cause as follows:
(i) In the case of a land bank created pursuant to subsection (1) of
section 18-3404, a board member may be removed by the chief executive officer
of the municipality that created the land bank after such removal has been
approved by a two-thirds vote of the governing body of such municipality; or
(ii) In the case of a land bank created pursuant to subsection (2) or (3)
of section 18-3404, a board member may be removed by the chief executive
officer of the municipality in which the majority of land bank property is
located where the member resides after such removal has been approved by a two-
thirds vote of the governing body of such municipality.
(b) Such chief executive officer shall send a notice of removal to such
board member, which notice shall set forth the charges against him or her. The
member shall be deemed removed from office unless within ten days from the
receipt of such notice he or she files a request for a hearing. Such request
shall be filed with:
(i) In the case of a land bank created pursuant to subsection (1) of
section 18-3404, the city clerk or village clerk of the municipality of the
city that created the land bank; or
(ii) In the case of a land bank created pursuant to subsection (2) or (3)
of section 18-3404, the city clerk or village clerk of the municipality in
which the majority of land bank property is located where the member resides.
(c) If a request for hearing is so filed, the governing body of the
municipality receiving the request shall hold a hearing not sooner than ten
days after the date a hearing is requested, at which hearing the board member
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shall have the right to appear in person or by counsel and the governing body
shall determine whether the removal shall be upheld. If the removal is not
upheld by the governing body, the board member shall continue to hold his or
her office.
Sec. 16. Section 18-3407, Reissue Revised Statutes of Nebraska, is amended
to read:
18-3407 (1) A land bank shall have the following powers:
(a) To adopt, amend, and repeal bylaws for the regulation of its affairs
and the conduct of its business;
(b) To sue and be sued in its own name and plead and be impleaded in all
civil actions;
(c) To borrow money from private lenders, from municipalities, from the
state, or from federal government funds as may be necessary for the operation
and work of the land bank;
(d) To issue negotiable revenue bonds and notes according to the
provisions of the Nebraska Municipal Land Bank Act, except that a land bank
shall not issue any bonds on or after November 14, 2020;
(e) To procure insurance or guarantees from the state or federal
government of the payments of any debts or parts thereof incurred by the land
bank and to pay premiums in connection therewith;
(f) To enter into contracts and other instruments necessary, incidental,
or convenient to the performance of its duties and the exercise of its powers,
including, but not limited to, agreements under the Interlocal Cooperation Act
for the joint administration of multiple land banks or the joint exercise of
powers under the Nebraska Municipal Land Bank Act;
(g) To enter into contracts and other instruments necessary, incidental,
or convenient to the performance of functions by the land bank on behalf of
municipalities or agencies or departments of municipalities, or the performance
by municipalities or agencies or departments of municipalities of functions on
behalf of the land bank;
(h) To make and execute contracts and other instruments necessary or
convenient to the exercise of the powers of the land bank;
(i) To provide foreclosure prevention counseling and re-housing
assistance;
(j) To procure insurance against losses in connection with the real
property, assets, or activities of the land bank;
(k) To invest money of the land bank, at the discretion of the board, in
instruments, obligations, securities, or property determined proper by the
board and name and use depositories for its money, except that a land bank
shall not invest its money in any instrument, obligation, security, or property
in which a direct or indirect interest is held by a member of the board or an
employee of the land bank, by a board member's or an employee's immediate
family, or by a business or entity in which a board member or an employee has a
financial interest;
(l) To enter into contracts for the management of, the collection of rent
from, or the sale of real property of the land bank;
(m) To design, develop, construct, demolish, reconstruct, rehabilitate,
renovate, relocate, and otherwise improve real property or rights or interests
in real property of the land bank;
(n) To fix, charge, and collect fees and charges for services provided by
the land bank;
(o) To fix, charge, and collect rents and leasehold payments for the use
of real property of the land bank for a period not to exceed twelve months,
except that such twelve-month limitation shall not apply (i) if the real
property of the land bank is subject to a lease with a remaining term of more
than twelve months at the time such real property is acquired by the land bank
or (ii) if the real property of the land bank is held pursuant to an agreement
with a nonprofit corporation or other private entity under subsection (8) of
section 18-3408;
(p) To grant or acquire a license, easement, lease, as lessor and as
lessee, or option with respect to real property of the land bank;
(q) To Except as provided in subsection (8) of section 18-3408, to enter
into partnerships, joint ventures, and other collaborative relationships with
municipalities and other public and private entities for the ownership,
management, development, and disposition of real property , subject to the
requirements of subsection (8) of section 18-3408, if applicable; and
(r) To do all other things necessary or convenient to achieve the
objectives and purposes of the land bank or other laws that relate to the
purposes and responsibilities of the land bank.
(2) A land bank shall neither possess nor exercise the power of eminent
domain.
(3) A land bank shall not have the authority to (a) levy property taxes or
(b) receive property tax revenue from a political subdivision pursuant to an
agreement entered into under the Joint Public Agency Act.
Sec. 17. Section 18-3408, Reissue Revised Statutes of Nebraska, is amended
to read:
18-3408 (1) A land bank may acquire real property or interests in real
property by gift, devise, transfer, exchange, foreclosure, purchase, or
otherwise on terms and conditions and in a manner the land bank considers
proper.
(2) A land bank may acquire real property or interests in real property by
purchase contracts, lease-purchase agreements, installment sales contracts, or
land contracts and may accept transfers from political subdivisions upon such
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terms and conditions as agreed to by the land bank and the political
subdivision. Notwithstanding any other law to the contrary, any political
subdivision may transfer to the land bank real property and interests in real
property of the political subdivision on such terms and conditions and
according to such procedures as determined by the political subdivision.
(3) A land bank shall maintain all of its real property in accordance with
the laws and ordinances of the jurisdiction in which the real property is
located.
(4) A land bank shall not own or hold real property located outside the
jurisdictional boundaries of the municipality or municipalities that created
the land bank. For purposes of this subsection, jurisdictional boundaries of a
municipality does not include the extraterritorial zoning jurisdiction of such
municipality.
(5) A land bank may accept transfers of real property and interests in
real property from a land reutilization authority on such terms and conditions,
and according to such procedures, as mutually determined by the transferring
land reutilization authority and the land bank.
(6) A land bank shall not hold legal title at any one time to more than:
(a) Seven percent of the total number of parcels located in a city of the
metropolitan class, and no more than ten percent of such parcels shall be zoned
as commercial property;
(b) Three percent of the total number of parcels located in a city of the
primary class, and no more than five percent of such parcels shall be zoned as
commercial property;
(c) Five percent of the total number of parcels located in a city of the
first class, and no more than five percent of such parcels shall be zoned as
commercial property; or
(d) Ten percent of the total number of parcels located in a city of the
second class or village, and no more than five percent of such parcels shall be
zoned as commercial property.
(7) A land bank shall not acquire a parcel that is zoned as commercial
property unless (a) the parcel has been vacant for at least three years or (b)
the owner of the parcel has been directed by the relevant municipality to
remove a nuisance found on such parcel but has failed to do so.
(8) A Beginning on November 14, 2020, a land bank shall not enter into an
agreement with any nonprofit corporation or other private entity for the
purpose of temporarily holding real property on behalf of for such nonprofit
corporation or private entity for a period longer than one year unless the
depositing entity has entered into a community benefits agreement, to which the
land bank shall also be a party. For the purposes of this subsection: , except
that a land bank may enter into such an agreement for the purpose of providing
clear title to such real property, but in no case shall such agreement exceed a
term of one year.
(a) Community benefits agreement means a legally binding contract between
the depositing entity, a land bank, and local community groups, where the
depositing entity commits to specific community benefits, such as affordable
housing, local hiring, living wages, or community services, for large projects
undertaken by the depositing entity, and in exchange, the local community
groups agree to support or not oppose such projects; and
(b) Local community groups shall include, but are not limited to,
neighborhood or block associations, business improvement districts, service and
fraternal organizations, and faith-based organizations within the neighborhood
in which the proposed project will be located.
Sec. 18. Section 18-3410, Reissue Revised Statutes of Nebraska, is amended
to read:
18-3410 (1) A land bank shall hold in its own name all real property
acquired by the land bank irrespective of the identity of the transferor of
such property.
(2) A land bank shall maintain and make available for public review and
inspection an inventory of all real property held by the land bank.
(3) A land bank shall determine and set forth in policies and procedures
of the board the general terms and conditions for consideration to be received
by the land bank for the transfer of real property and interests in real
property, which consideration may take the form of monetary payments and
secured financial obligations, covenants and conditions related to the present
and future use of the property, contractual commitments of the transferee, and
such other forms of consideration as determined by the board to be in the best
interest of the land bank.
(4) A land bank may convey, exchange, sell, transfer, grant, release and
demise, pledge, and hypothecate any and all interests in, upon, or to real
property of the land bank. A land bank may lease as lessor real property of the
land bank for a period not to exceed twelve months, except that such twelve-
month limitation shall not apply (a) if the real property of the land bank is
subject to a lease with a remaining term of more than twelve months at the time
such real property is acquired by the land bank or (b) if the real property of
the land bank is held pursuant to an agreement with a nonprofit corporation or
other private entity under subsection (8) of section 18-3408.
(5) The municipality or municipalities that created the land bank may
establish by resolution or ordinance a hierarchical ranking of priorities for
the use of real property conveyed by a land bank. Such ranking shall take into
consideration the highest and best use that, when possible, will bring the
greatest benefit to the community. The priorities may include, but are not
limited to, (a) use for purely public spaces and places, (b) use for affordable
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housing, (c) use for retail, commercial, and industrial activities, (d) use for
urban agricultural activities including the establishment of community gardens
as defined in section 2-303, and (e) such other uses and in such hierarchical
order as determined by the municipality or municipalities.
(6) The municipality or municipalities that created the land bank may
require by resolution or ordinance that any particular form of disposition of
real property, or any disposition of real property located within specified
jurisdictions, be subject to specified voting and approval requirements of the
board. Except and unless restricted or constrained in this manner, the board
may delegate to officers and employees the authority to enter into and execute
agreements, instruments of conveyance, and all other related documents
pertaining to the conveyance of real property by the land bank.
(7)(a) For any real property of a land bank that is intended for
residential development, the land bank shall advertise the availability of such
property for sale for ninety days after acquiring the property or after
completing demolition of any structure and site preparation necessary for
development or until an offer to buy the property is accepted, whichever is
earlier.
(b) Any conveyance of real property made as a result of the advertisement
described in subdivision (7)(a) of this section may include a contractual
provision allowing the land bank to reacquire the property at the original
purchase price, exercise a right of reentry, or otherwise reacquire the
property under terms established by the contract if construction has not
commenced within a specific timeframe provided in the contract.
(c) This subsection shall not apply to any land bank created by a city of
the metropolitan class or city of the primary class.
Sec. 19. Section 18-3413, Reissue Revised Statutes of Nebraska, is amended
to read:
18-3413 (1) The board shall cause minutes and a record to be kept of all
its proceedings. Meetings of the board shall be subject to the Open Meetings
Act.
(2) All of a land bank's records and documents shall be considered public
records for purposes of sections 84-712 to 84-712.09.
(3) The board shall provide a report monthly reports to the municipality
or municipalities that created the land bank on the board's activities pursuant
to the Nebraska Municipal Land Bank Act. The report shall be provided after
each meeting of the board or at least quarterly. The board shall also
electronically submit provide an annual report to the municipality or
municipalities that created the land bank, the Speaker of the Legislature, the
chairperson of the Executive Board of the Legislative Council, the Revenue
Committee of the Legislature, and the Urban Affairs Committee of the
Legislature by March 1 of each year summarizing the board's activities for the
prior calendar year. The reports submitted to the Legislature shall be
submitted electronically.
(4) The annual report required under subsection (3) of this section shall
include, but not be limited to:
(a) A listing of each property owned by the land bank at the end of the
prior calendar year, including (i) how long each such property has been owned
by the land bank , (ii) and whether such property was acquired utilizing the
automatically accepted bid under section 18-3417 or 18-3418, (iii) whether such
property is being held on behalf of a nonprofit corporation or other private
entity pursuant to subsection (8) of section 18-3408, and (iv) the intended use
of each property being held on behalf of a nonprofit corporation or other
private entity pursuant to subsection (8) of section 18-3408;
(b) A list of entities and individuals who received more than two thousand
five hundred dollars from the land bank in the prior calendar year;
(c) A list of financial institutions in which the land bank has deposited
funds;
(d) The percentage of total parcels located in each municipality which are
held by the land bank; and
(e) A statement certifying that all board members and employees of the
land bank comply with the conflict of interest requirements in sections 18-3407
and 18-3415.
Sec. 20. (1) A city of the primary class, city of the first class, city
of the second class, or village may sell or transfer any waterworks, sewer
system, or water system owned by such city or village to an Indian tribe if the
following requirements are met:
(a) The waterworks, sewer system, or water system must be located or
operating in its entirety within the tribal lands of such Indian tribe;
(b) The tribal headquarters of such Indian tribe must be located in such
city or village; and
(c) The sale or transfer must be approved by the qualified electors of
such city or village at a general or special election described in subsection
(2) of this section.
(2) The governing body of the city or village seeking to sell or transfer
any waterworks, sewer system, or water system under this section shall submit
such question or proposition, in the usual manner, to the qualified electors of
such city or village at any general city or village election or at any special
city or village election and may submit the proposition in connection with any
city or village special election called for any other purpose, and the votes
cast thereon shall be canvassed and the result found and declared as in any
other city or village election.
(3) For purposes of this section, Indian tribe means an Indian tribe or
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band which is recognized by federal law or formally acknowledged by the state
as of January 1, 2026.
Sec. 21. The Revisor of Statutes shall assign section 6 of this act to
Chapter 19.
Sec. 22. Sections 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17,
18, 19, 20, and 24 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. 23. Original section 13-3206, Reissue Revised Statutes of Nebraska,
is repealed.
Sec. 24. Original sections 18-2124, 18-2125, 18-2136, 18-3404, 18-3405,
18-3407, 18-3408, 18-3410, and 18-3413, Reissue Revised Statutes of Nebraska,
section 18-2117.01, Revised Statutes Cumulative Supplement, 2024, and sections
18-2101.02 and 18-2147, Revised Statutes Supplement, 2025, are repealed.
Sec. 25. Since an emergency exists, this act takes effect when passed and
approved according to law.
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