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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1142
Introduced by Hardin, 48.
Read first time January 20, 2026
Committee: Government, Military and Veterans Affairs
A BILL FOR AN ACT relating to the Nebraska Visitors Development Act; to1
amend sections 53-501, 81-3701, 81-3702, 81-3703, 81-3706.01,2
81-3710, 81-3711, 81-3711.01, 81-3712, 81-3713, 81-3714, 81-3721,3
81-3726, 81-3728, 81-3729, and 81-3730, Reissue Revised Statutes of4
Nebraska, section 77-3012, Revised Statutes Cumulative Supplement,5
2024, and section 81-3725, Revised Statutes Supplement, 2025; to6
authorize the Department of Economic Development to administer the7
act; to provide for a Director of Tourism; to change provisions8
relating to the Nebraska Tourism Commission; to define a term; to9
change the name of a fund; to harmonize provisions; to provide an10
operative date; to repeal the original sections; and to declare an11
emergency. 12
Be it enacted by the people of the State of Nebraska,13
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Section 1. Section 53-501, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
53-501 (1) The Nebraska Craft Brewery Board is created. All board3
members shall be (a) citizens of Nebraska, (b) at least twenty-one years4
of age, and (c) either engaged in or previously engaged in the5
manufacture or the wholesale or retail sale of beer in this state or6
engaged or previously engaged in the production in this state of7
agricultural products that are utilized in the brewing process. The board8
shall consist of seven members to be appointed by the Governor on a9
nonpartisan basis. At least two board members shall be selected by the10
Governor from a list of no fewer than ten candidates submitted by the11
Nebraska Craft Brewers Guild or its successor organization. In addition,12
at least two board members shall be selected by the Governor from a list13
of no fewer than ten candidates submitted by the Associated Beverage14
Distributors of Nebraska or its successor organization. The Director of15
Agriculture or his or her designee and the Director of Tourism of the16
Department of Economic Development executive director of the Nebraska17
Tourism Commission or his or her designee shall be nonvoting, ex officio18
members of the board. 19
(2) Whenever a vacancy occurs on the board for any reason, the20
Governor shall appoint an individual to fill such vacancy pursuant to the21
qualifications set forth in subsection (1) of this section.22
Sec. 2. Section 77-3012, Revised Statutes Cumulative Supplement,23
2024, is amended to read: 24
77-3012 (1) Except as otherwise provided in subsection (5) of this25
section, a tax is hereby imposed and levied, in the amount and in26
accordance with this section, upon the net operating revenue of all cash27
devices operating within the State of Nebraska for profit or gain either28
directly or indirectly received. The tax shall be paid in the amount and29
manner specified in this section. 30
(2) Except as otherwise provided in subsection (5) of this section,31
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beginning on and after July 1, 2025, any distributor of a cash device,1
and any operator of a cash device if the operator is not subject to a2
revenue-sharing or other agreement with a distributor who is paying the3
tax, shall pay a tax for each cash device in operation each calendar4
quarter during the taxable year. The tax shall be collected by the5
department and due and payable on January 1, April 1, July 1, and October6
1 of each year on each cash device in operation during the preceding7
calendar quarter. For each cash device put into operation on a date8
subsequent to a quarterly due date that has not been included in9
computing the tax imposed and levied by the Mechanical Amusement Device10
Tax Act, the tax shall be due and payable on the immediately succeeding11
quarterly due date. 12
(3) The amount of the tax imposed and levied under this section13
shall be five percent of the net operating revenue for each cash device.14
The quarterly tax shall be submitted on a form prescribed by the Tax15
Commissioner documenting the total gross and net operating revenue for16
that quarter. 17
(4) The Tax Commissioner shall remit the taxes collected pursuant to18
this section to the State Treasurer for credit as follows:19
(a) Twenty percent to the Charitable Gaming Operations Fund for20
enforcement of the act and maintenance of the central server;21
(b) Two and one-half percent to the Compulsive Gamblers Assistance22
Fund; 23
(c) Two and one-half percent to the General Fund;24
(d) Ten percent to the Nebraska Tourism Commission Promotional Cash25
Fund; 26
(e) Forty percent to the Property Tax Credit Cash Fund; and27
(f) The remaining twenty-five percent to the county treasurer of the28
county in which the cash device is located to be distributed as follows:29
(i) If the cash device is located completely within an unincorporated30
area of a county, the remaining twenty-five percent shall be distributed31
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to the county in which the cash device is located, or (ii) if the cash1
device is located within the limits of a city or village in such county,2
one-half of the remaining twenty-five percent shall be distributed to3
such county and one-half of the remaining twenty-five percent shall be4
distributed to the city or village in which such cash device is located.5
(5) This section does not apply to cash devices operated by a6
fraternal benefit society organized and licensed under sections 44-10727
to 44-10,109 or a recognized veterans organization as defined in section8
80-401.01. 9
Sec. 3. Section 81-3701, Reissue Revised Statutes of Nebraska, is10
amended to read: 11
81-3701 Sections 81-3701 to 81-3730 and sections 6 and 8 of this act12
shall be known and may be cited as the Nebraska Visitors Development Act.13
Sec. 4. Section 81-3702, Reissue Revised Statutes of Nebraska, is14
amended to read: 15
81-3702 The purposes of the Nebraska Visitors Development Act are16
(1) to create the Nebraska Tourism Commission to promote Nebraska as a17
tourism destination and to administer programs to attract an increasing18
number of visitors to Nebraska and further the use of travel and tourism19
facilities in Nebraska, (2) to provide for a lodging tax on hotels for20
the purpose of establishing a State Visitors Promotion Cash Fund, and (3)21
to authorize the governing body of any county to appoint a visitors22
committee and impose a lodging tax on hotels for the purpose of23
establishing a County Visitors Promotion Fund and a County Visitors24
Improvement Fund. 25
Sec. 5. Section 81-3703, Reissue Revised Statutes of Nebraska, is26
amended to read: 27
81-3703 For purposes of the Nebraska Visitors Development Act,28
unless the context otherwise requires, the definitions found in sections29
81-3704 to 81-3709.01 and section 6 of this act apply.30
Sec. 6. Department means the Department of Economic Development.31
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Sec. 7. Section 81-3706.01, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
81-3706.01 Highway tourism marker means a marker of a particular3
style authorized by the department commission to designate tourism4
attractions. 5
Sec. 8. (1) The department shall administer the Nebraska Visitors6
Development Act and shall have the authority to: 7
(a) Employ personnel and contract for services as needed to carry8
out the department's duties under the act; 9
(b) Procure and evaluate data and information necessary for the10
proper administration of the act; 11
(c) Develop and approve state marketing campaigns;12
(d) Develop and administer a program to provide promotional13
services, technical assistance, and state aid to local governments and14
the tourism industry; 15
(e) Cooperate with federal, state, and local governments and private16
individuals and organizations to carry out any of the functions of the17
department and purposes of the Nebraska Visitors Development Act; and18
(f) Actively coordinate and develop working partnerships with other19
state agencies, including, but not limited to, the Commission on Indian20
Affairs, the Game and Parks Commission, the Nebraska Arts Council, the21
Nebraska State Historical Society, and the University of Nebraska.22
(2) The Director of Economic Development shall appoint a Director of23
Tourism at a salary fixed by the Director of Economic Development. The24
Director of Tourism shall serve at the pleasure of the Director of25
Economic Development. 26
(3) The department may adopt and promulgate rules and regulations to27
carry out the Nebraska Visitors Development Act. 28
Sec. 9. Section 81-3710, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
81-3710 (1) The Nebraska Tourism Commission is created. For31
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administrative purposes, the commission shall be located and staffed1
within the department. 2
(2) The members of the commission shall consist of the Director of3
Economic Development and twelve residents of the State of Nebraska4
appointed by the Governor, to include one member representing a state5
chamber of commerce organized under the Nebraska Nonprofit Corporation6
Act, and one member appointed from each of the eleven districts described7
in subsection (3) (2) of this section. The members appointed by the8
Governor shall be subject to approval by the majority of the members of9
the Legislature. The term of the member representing a state chamber of10
commerce shall be four years, and the terms of the district members shall11
be as provided in subdivision (3)(b) (2)(b) of this section. No appointed12
member may serve more than two successive terms. Four of the district13
members shall have professional, volunteer, or public service experience14
that contributes to the fiduciary and governance duties of the15
commission. Seven of the district members shall be affiliated with the16
tourism industry. 17
(3)(a) (2)(a) For purposes of this section, the state is hereby18
divided into eleven districts. The limits and designations of the eleven19
districts shall be as follows: 20
(i) District No. 1. Douglas County; 21
(ii) District No. 2. Lancaster County; 22
(iii) District No. 3. The counties of Richardson, Pawnee, Nemaha,23
Johnson, Otoe, Gage, Saline, and Jefferson; 24
(iv) District No. 4. The counties of Cass and Sarpy;25
(v) District No. 5. The counties of Saunders, Washington, Dodge,26
Colfax, Stanton, Cuming, Burt, Thurston, Wayne, Cedar, Dixon, and Dakota;27
(vi) District No. 6. The counties of Butler, Polk, Platte, Merrick,28
Nance, Boone, Madison, Pierce, Antelope, Knox, Holt, and Boyd;29
(vii) District No. 7. The counties of Thayer, Nuckolls, Webster,30
Adams, Clay, Fillmore, Seward, York, Hamilton, Franklin, and Harlan;31
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(viii) District No. 8. The counties of Kearney, Phelps, Hall,1
Howard, Greeley, Wheeler, Buffalo, Sherman, Valley, and Garfield;2
(ix) District No. 9. The counties of Lincoln, Keya Paha, Rock,3
Brown, Loup, Blaine, Custer, Logan, McPherson, Arthur, Grant, Hooker,4
Thomas, and Cherry; 5
(x) District No. 10. The counties of Furnas, Red Willow, Hitchcock,6
Dundy, Chase, Hayes, Frontier, Gosper, Dawson, Perkins, and Keith; and7
(xi) District No. 11. The counties of Deuel, Garden, Sheridan,8
Cheyenne, Morrill, Box Butte, Dawes, Sioux, Scotts Bluff, Banner, and9
Kimball. 10
(b) The Governor shall appoint members representing district numbers11
1, 6, 8, and 11 to serve for terms ending April 1, 2019; members12
representing district numbers 2, 5, 7, and 10 to serve for terms ending13
April 1, 2021; and members representing district numbers 3, 4, and 9 to14
serve for terms ending April 1, 2023. The terms of their successors shall15
be four years. 16
Sec. 10. Section 81-3711, Reissue Revised Statutes of Nebraska, is17
amended to read: 18
81-3711 The commission shall: 19
(1) Advise the department in its administration of Administer the20
Nebraska Visitors Development Act; 21
(2) Prepare and approve a budget; 22
(2) (3) Elect a chairperson and vice-chairperson;23
(3) Recommend a Director of Tourism for appointment by the Director24
of Economic Development; 25
(4) Procure and evaluate data and information necessary for the26
proper administration of the act; 27
(5) Appoint an executive director at a salary to be fixed by the28
commission to conduct the day-to-day operations of the commission;29
(6) Employ personnel and contract for services which are necessary30
for the proper operation of the commission; 31
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(4) (7) Establish a means by which any interested person has the1
opportunity at least annually to offer his or her ideas and suggestions2
relative to the Nebraska Visitors Development Act commission's duties for3
the upcoming year; and 4
(8) Authorize the expenditure of funds and contracting of5
expenditures to carry out the act; 6
(5) (9) Keep minutes of its meetings and other books and records7
which clearly reflect all of the actions and transactions of the8
commission and keep such records open to examination during normal9
business hours. ; 10
(10) Prohibit any funds appropriated to the commission from being11
expended directly or indirectly to promote or oppose any candidate for12
public office or to influence state or federal legislation;13
(11) Have authority to mark significant tourism attractions as14
provided in section 81-3711.01; 15
(12) Have authority to develop and approve state marketing16
campaigns; 17
(13) Adopt and promulgate rules and regulations to carry out the18
Nebraska Visitors Development Act; 19
(14) Develop and administer a program to provide promotional20
services, technical assistance, and state aid to local governments and21
the tourism industry; 22
(15) Establish written policies and procedures governing the23
executive director and the personnel of the commission in the expenditure24
and use of funds appropriated to the commission; 25
(16) Cooperate with federal, state, and local governments and26
private individuals and organizations to carry out any of the functions27
of the commission and purposes of the Nebraska Visitors Development Act;28
and 29
(17) Actively coordinate and develop working partnerships with other30
state agencies, including, but not limited to, the Commission on Indian31
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Affairs, the Department of Economic Development, the Game and Parks1
Commission, the Nebraska Arts Council, the Nebraska State Historical2
Society, and the University of Nebraska. 3
Sec. 11. Section 81-3711.01, Reissue Revised Statutes of Nebraska,4
is amended to read: 5
81-3711.01 (1) The department commission may mark significant6
tourism attractions in Nebraska. 7
(2) The department commission may (a) determine what tourism8
attractions are significant to the State of Nebraska, (b) expend funds9
for the purchase of highway tourism markers, (c) designate the10
approximate location of highway tourism markers, (d) preserve, replace,11
or modify highway tourism markers, and (e) accept gifts and encourage12
local participation in and contribution to the erection of highway13
tourism markers through the use of gifts and matching-fund agreements.14
Such funds shall be deposited into the State Visitors Promotion Cash15
Fund. The department commission shall not expend funds for the purchase16
of highway tourism markers until funding has been secured through gifts17
or otherwise. 18
(3) The department commission may appoint and delegate to a special19
committee the duties of research and investigation to assist in the20
determination of tourism attractions that should be designated by highway21
tourism markers. The Department of Transportation shall erect and22
maintain highway tourism markers and shall determine the exact location23
of highway tourism markers with consideration given for the safety and24
welfare of the public. 25
(4) The department commission may secure payment to the state for26
the actual replacement cost of any highway tourism markers damaged or27
destroyed, accidentally or otherwise. Any funds so collected shall be28
remitted to the State Treasurer for credit to the State Visitors29
Promotion Cash Fund for the procurement of highway tourism markers.30
(5) Nothing in this section shall be construed to restrict the31
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placement of any marker or signage on private property.1
Sec. 12. Section 81-3712, Reissue Revised Statutes of Nebraska, is2
amended to read: 3
81-3712 For purposes of transition, employees of the commission4
Travel and Tourism Division of the Department of Economic Development5
shall be considered employees of the department commission and shall6
retain their rights under the state personnel system or pertinent7
bargaining agreement, and their service shall be deemed continuous. This8
section does not grant employees any new rights or benefits not otherwise9
provided by law or bargaining agreement or preclude the department10
commission from exercising any of the prerogatives of management set11
forth in section 81-1311 or as otherwise provided by law. This section is12
not an amendment to or substitute for the provisions of any existing13
bargaining agreements. 14
Sec. 13. Section 81-3713, Reissue Revised Statutes of Nebraska, is15
amended to read: 16
81-3713 The department commission shall develop a statewide17
strategic plan to cultivate and promote tourism in Nebraska. The18
department commission shall review the plan annually and update as19
necessary. The plan shall include: 20
(1) A review of revenue in the State Visitors Promotion Cash Fund21
available for tourism development at the state level;22
(2) An examination of best management practices for the tourism23
industry; 24
(3) Marketing strategies for promoting tourism;25
(4) Methods to expand existing tourism capacity which may include26
encouraging regional cooperation, collaboration, or privatization; and27
(5) Recommended strategies to provide technical assistance,28
marketing services, and state aid to local governments and the tourism29
industry in Nebraska. 30
Sec. 14. Section 81-3714, Reissue Revised Statutes of Nebraska, is31
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amended to read: 1
81-3714 The State Visitors Promotion Cash Fund is created. The fund2
shall be administered by the department commission. The fund shall3
consist of revenue deposited into the fund pursuant to section 81-37154
and money donated as gifts, bequests, or other contributions from public5
or private entities. Funds made available by any department or agency of6
the United States may also be credited to the fund if so directed by such7
department or agency. The department commission shall use the proceeds of8
the fund to generally promote and market the State of Nebraska, to9
encourage, and attract visitors to and within the State of Nebraska, to10
erect and replace highway tourism markers, to enhance the use of travel11
and tourism facilities within the state, and to provide grants to12
communities and organizations , and to contract with the Department of13
Administrative Services to provide support services to the commission,14
including, but not limited to, accounting and personnel functions. The15
proceeds of the fund shall be in addition to funds appropriated to the16
department commission from the General Fund. Transfers may be made from17
the State Visitors Promotion Cash Fund to the General Fund at the18
direction of the Legislature. The State Treasurer shall transfer one19
million dollars from the State Visitors Promotion Cash Fund to the20
General Fund on or before June 30, 2019, on such dates and in such21
amounts as directed by the budget administrator of the budget division of22
the Department of Administrative Services. Any money in the State23
Visitors Promotion Cash Fund available for investment shall be invested24
by the state investment officer pursuant to the Nebraska Capital25
Expansion Act and the Nebraska State Funds Investment Act. Beginning26
October 1, 2024, any investment earnings from investment of money in the27
fund shall be credited to the General Fund. 28
Sec. 15. Section 81-3721, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
81-3721 All contracts awarded by the department commission shall be31
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subject to the State Procurement Act. The department commission shall1
comply with the rules, regulations, procedures, and guidelines2
established by the Department of Administrative Services for contracts.3
Sec. 16. Section 81-3725, Revised Statutes Supplement, 2025, is4
amended to read: 5
81-3725 (1) The department commission shall develop a program to6
provide marketing assistance grants to communities and organizations7
hosting national or international-caliber events held in Nebraska that8
have the potential to attract a significant percentage of out-of-state9
visitors and to generate favorable national or international press10
coverage for Nebraska. 11
(2) A community or organization applying for a marketing assistance12
grant shall provide a plan to the department commission that includes:13
(a) Documentation that the event will attract out-of-state visitors; (b)14
details regarding the type of marketing that would be carried out with15
state funds; (c) methodologies used to track the impact of marketing16
efforts and the number of out-of-state visitors attending the event; and17
(d) details regarding the potential national or international press18
coverage that will be generated by the event. 19
(3)(a) The department commission shall develop a program to provide20
innovative tourism grants to communities or organizations that provide21
tourism and visitor promotion services, host events, or promote22
attractions that result in either (i) an increased number of nonlocal,23
instate visitors or (ii) an increased number of both nonlocal, instate24
visitors and out-of-state visitors. Innovative tourism grants may25
include, but not be limited to, marketing assistance, planning26
assistance, basic support, and regional cooperation. Innovative tourism27
grants shall not be used for equipment or capital facility development or28
improvements. 29
(b) When awarding innovative tourism grants under the program, the30
department commission shall award up to five hundred thousand dollars in31
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innovative tourism grants to any such city or village each fiscal year.1
(4) The Director of Tourism executive director shall convene a2
technical review committee of no fewer than three individuals3
representing the public sector, the private sector, and citizens at4
large. The technical review committee , the Director of Tourism, and the5
Director of Economic Development and the executive director shall review6
and score applications for marketing assistance grants and innovative7
tourism grants and forward recommendations to the department commission8
for approval by the department commission or a subcommittee of the9
commission. 10
(5) Communities and organizations receiving marketing assistance11
grants or innovative tourism grants authorized under this section shall12
provide a final report to the department commission within ninety days13
after the completion date of the event that includes event attendance,14
the use of funds, and marketing impact information.15
(6) The department commission shall adopt and promulgate rules and16
regulations governing the grant programs authorized under this section.17
Sec. 17. Section 81-3726, Reissue Revised Statutes of Nebraska, is18
amended to read: 19
81-3726 The Tourism Conference Cash Fund is created. The fund shall20
be administered by the department commission. All sums of money received21
from fees from any conference or event held by the department commission22
shall be deposited in the fund. The department commission shall use the23
fund to defray expenses related to any conference or event sponsored by24
the department commission. Any money in the fund available for investment25
shall be invested by the state investment officer pursuant to the26
Nebraska Capital Expansion Act and the Nebraska State Funds Investment27
Act. 28
Sec. 18. Section 81-3728, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
81-3728 (1) Vendors under contract with the department commission to31
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develop, print, and distribute publications and promotional materials or1
produce, sell, and distribute tourism promotional products on behalf of2
the department commission shall, on a monthly basis, submit to the3
department commission all revenue received from the sale of advertising4
space in such publications or from the sale of such tourism promotional5
products. Monthly submissions shall include an itemization of the sources6
of revenue in a format as designated by the department commission.7
Revenue from such sales shall be remitted to the State Treasurer for8
credit to the Nebraska Tourism Commission Promotional Cash Fund.9
(2) The department commission may enter into agreements directly10
with retailers to sell tourism promotional products. If a retailer pays11
for such products in full at the time of acquisition, the retailer shall12
have no further reporting requirements. The department commission shall13
remit payments received from retailers acquiring such products to the14
State Treasurer for credit to the Nebraska Tourism Commission Promotional15
Cash Fund. 16
Sec. 19. Section 81-3729, Reissue Revised Statutes of Nebraska, is17
amended to read: 18
81-3729 The Nebraska Tourism Commission Promotional Cash Fund is19
hereby created. The fund shall consist of revenue submitted by vendors20
and retailers under section 81-3728 and revenue from the tax collected on21
the net operating revenue of cash devices pursuant to section 77-3012.22
Revenue from the sale of advertising shall be remitted to the State23
Treasurer for credit to the fund. The department commission shall use the24
fund to carry out its purposes under the Nebraska Visitors Development25
Act. Any money in the fund available for investment shall be invested by26
the state investment officer pursuant to the Nebraska Capital Expansion27
Act and the Nebraska State Funds Investment Act. 28
Sec. 20. Section 81-3730, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
81-3730 The department commission is authorized to develop and make31
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available for sale directly to the public tourism promotional products1
related to state marketing campaigns developed and approved by the2
department commission. The department commission may contract with3
private vendors to produce, sell, and distribute such tourism promotional4
products or enter into agreements directly with retailers as provided in5
section 81-3728. Any revenue from the sale of such tourism promotional6
products shall be credited to the Nebraska Tourism Commission Promotional7
Cash Fund as provided in section 81-3728. 8
Sec. 21. This act becomes operative on July 1, 2026.9
Sec. 22. Original sections 53-501, 81-3701, 81-3702, 81-3703,10
81-3706.01, 81-3710, 81-3711, 81-3711.01, 81-3712, 81-3713, 81-3714,11
81-3721, 81-3726, 81-3728, 81-3729, and 81-3730, Reissue Revised Statutes12
of Nebraska, section 77-3012, Revised Statutes Cumulative Supplement,13
2024, and section 81-3725, Revised Statutes Supplement, 2025, are14
repealed. 15
Sec. 23. Since an emergency exists, this act takes effect when16
passed and approved according to law. 17
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