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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1163
Introduced by Fredrickson, 20.
Read first time January 20, 2026
Committee: Urban Affairs
A BILL FOR AN ACT relating to the Property Assessed Clean Energy Act; to1
amend section 13-3206, Reissue Revised Statutes of Nebraska; to2
change provisions relating to delinquent annual assessments and PACE3
liens; to repeal the original section; and to declare an emergency.4
Be it enacted by the people of the State of Nebraska,5
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Section 1. Section 13-3206, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
13-3206 (1)(a) For qualifying property other than single-family3
residential property, any annual assessment imposed on such qualifying4
property that becomes delinquent, including any interest on the annual5
assessment and any penalty, shall constitute a PACE lien against the6
qualifying property on which the annual assessment is imposed until the7
annual assessment, including any interest and penalty, is paid in full.8
Any annual assessment that is not paid within the time period set forth9
in the assessment contract shall be considered delinquent. The10
municipality shall, within fourteen days after an annual assessment11
becomes delinquent or, if there is a third-party lender financing the12
energy project, within fourteen days after receiving notice from such13
third-party lender that an annual assessment has become delinquent ,14
record a notice of such lien in the office of the register of deeds of15
the county in which the qualifying property is located. The municipality16
shall certify the amount of any such delinquency and lien to the county17
treasurer, and the lien shall be treated as a special assessment in the18
same manner as special assessments are treated under section 77-1858 and19
shall be subject to the same collection processes for real estate taxes20
and special assessments as set forth in Chapter 77, including, without21
limitation, sections 77-1801 to 77-1863. 22
(b) For qualifying property that is single-family residential23
property, all annual assessments imposed on such qualifying property,24
including any interest on the annual assessments and any penalty, shall,25
upon the initial annual assessment, constitute a PACE lien against the26
qualifying property on which the annual assessments are imposed until all27
annual assessments, including any interest and penalty, are paid in full.28
Any annual assessment that is not paid within the time period set forth29
in the assessment contract shall be considered delinquent. The30
municipality shall, upon imposition of the initial annual assessment,31
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record a notice of such lien in the office of the register of deeds of1
the county in which the qualifying property is located.2
(2) A notice of lien filed under this section shall, at a minimum,3
include: 4
(a) The amount of funds disbursed or to be disbursed pursuant to the5
assessment contract; 6
(b) The names and addresses of the current owners of the qualifying7
property subject to the annual assessment; 8
(c) The legal description of the qualifying property subject to the9
annual assessment; 10
(d) The duration of the assessment contract; and11
(e) The name and address of the municipality filing the notice of12
lien. 13
(3) The PACE lien created under this section shall:14
(a) For qualifying property that is single-family residential15
property, (i) be subordinate to all liens on the qualifying property16
recorded prior to the time the notice of the PACE lien is recorded, (ii)17
be subordinate to a first mortgage or trust deed on the qualifying18
property recorded after the notice of the PACE lien is recorded, and19
(iii) have priority over any other lien on the qualifying property20
recorded after the notice of the PACE lien is recorded; and21
(b) For qualifying property other than single-family residential22
property and subject to the requirement in subdivision (2)(a) of section23
13-3205 to obtain and record an executed consent and subordination24
agreement, have the same priority and status as real property tax liens.25
(4)(a) Notwithstanding any other provision of law, in the event of a26
sale pursuant to a foreclosure or a sale pursuant to the exercise of a27
power of sale under a trust deed relating to qualifying property that is28
single-family residential property, the holders of any mortgages, trust29
deeds, or other liens, including delinquent annual assessments secured by30
PACE liens, shall receive proceeds in accordance with the priorities31
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established under subdivision (3)(a) of this section. In the event there1
are insufficient proceeds from such a sale, from the loss reserve fund2
established pursuant to section 13-3208, or from any other means to3
satisfy the delinquent annual assessments, such delinquent annual4
assessments shall be extinguished. Any annual assessment that has not yet5
become delinquent shall not be accelerated or extinguished in the event6
of a sale pursuant to a foreclosure or a sale pursuant to the exercise of7
a power of sale under a trust deed relating to qualifying property that8
is single-family residential property. Upon the transfer of ownership of9
qualifying property that is single-family residential property, including10
a sale pursuant to a foreclosure or a sale pursuant to the exercise of a11
power of sale under a trust deed, the nondelinquent annual assessments12
shall continue as a lien on the qualifying property, subject to the13
priorities established under subdivision (3)(a) of this section.14
(b) Upon the transfer of ownership of qualifying property other than15
single-family residential property, including a sale pursuant to a16
foreclosure or a sale pursuant to the exercise of a power of sale under a17
trust deed, the obligation to pay annual assessments shall run with the18
qualifying property. 19
(5)(a) For qualifying property other than single-family residential20
property, when the delinquent annual assessment, including any interest21
and penalty, is paid in full, a release of the PACE lien shall be22
recorded in the office of the register of deeds of the county in which23
the notice of the PACE lien was recorded. 24
(b) For qualifying property that is single-family residential25
property, when all annual assessments, including any interest and26
penalty, are paid in full, a release of the PACE lien shall be recorded27
in the office of the register of deeds of the county in which the notice28
of the PACE lien was recorded. 29
(6) If the holder or loan servicer of any existing mortgage or trust30
deed that encumbers or that is otherwise secured by the qualifying31
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property has established a payment schedule or escrow account to accrue1
property taxes or insurance, such holder or loan servicer may increase2
the required monthly payment, if any, by an amount necessary to pay the3
annual assessment imposed under the Property Assessed Clean Energy Act.4
Sec. 2. Original section 13-3206, Reissue Revised Statutes of5
Nebraska, is repealed. 6
Sec. 3. Since an emergency exists, this act takes effect when7
passed and approved according to law. 8
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