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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 799
Introduced by Urban Affairs Committee: McKinney, 11, Chairperson;
Cavanaugh, J., 9; Quick, 35; Rountree, 3.
Read first time January 07, 2026
Committee: Urban Affairs
A BILL FOR AN ACT relating to service contracts; to adopt the Service1
Contract Reporting Act. 2
Be it enacted by the people of the State of Nebraska,3
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Section 1. Sections 1 to 5 of this act shall be known and may be1
cited as the Service Contract Reporting Act. 2
Sec. 2. For purposes of the Service Contract Reporting Act:3
(1) City means a city of the metropolitan class;4
(2) County means a county in this state with a population of more5
than five hundred thousand inhabitants as determined by the most recent6
federal decennial census; 7
(3) Division means the materiel division of the Department of8
Administrative Services; 9
(4) Economic redevelopment area means an area in the State of10
Nebraska in which: 11
(a) The average rate of unemployment in the area during the period12
covered by the most recent federal decennial census or American Community13
Survey 5-Year Estimate by the United States Bureau of the Census is at14
least one hundred fifty percent of the average rate of unemployment in15
the state during the same period; and 16
(b) The average poverty rate in the area is twenty percent or more17
for the federal census tract in the area; 18
(5) Fiscal year means the twelve-month period used by the city,19
county, or state agency for budgeting purposes; 20
(6) Qualified census tract means a qualified census tract as defined21
in 26 U.S.C. 42(d)(5)(B)(ii)(I), as such section existed on January 1,22
2026; 23
(7) Service contract means a contract awarded by a city, county, or24
state agency for the provision of legal services, accounting services,25
financial consulting services, management consulting services, health26
care services, engineering services, architectural services, information27
technology services, marketing and advertising services, human resources28
consulting services, environmental consulting services, educational and29
training services, snow removal and hauling services, janitorial30
services, custodial and cleaning services, yard maintenance services, or31
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tree removal services; 1
(8) State agency means any agency, board, or commission of this2
state other than the University of Nebraska, the Nebraska state colleges,3
the courts, the Legislature, or any officer or state agency established4
by the Constitution of Nebraska; and 5
(9) State aid means: 6
(a) For both cities and counties, state aid paid pursuant to7
sections 60-3,202 and 77-3523; 8
(b) For cities, state aid to cities paid pursuant to sections9
39-2501 to 39-2520, 60-3,190, and 77-27,139.04 and insurance premium tax10
paid to cities; and 11
(c) For counties, state aid to counties paid pursuant to sections12
60-3,184 to 60-3,190, insurance premium tax paid to counties, and13
reimbursements to counties from funds appropriated pursuant to section14
29-3933. 15
Sec. 3. On or before August 1, 2026, and on or before August 1 of16
each year thereafter, each city, county, and state agency shall submit a17
report to the division containing the following information:18
(1) The name and address of each individual or entity that was19
awarded a service contract during the most recently completed fiscal year20
and the type of service involved in each such contract;21
(2) The total dollar value of service contracts awarded during the22
most recently completed fiscal year; 23
(3) The total dollar value of service contracts awarded during the24
most recently completed fiscal year to an individual or entity located25
within an economic redevelopment area or a qualified census tract; and26
(4) A description of any efforts made by the city, county, or state27
agency to increase the number of service contracts awarded to individuals28
and entities located within economic redevelopment areas and qualified29
census tracts. 30
Sec. 4. On or before September 1, 2026, and on or before September31
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1 of each year thereafter, the division shall compile the information1
reported under section 3 of this act and shall electronically submit a2
comprehensive report regarding such information to the Governor, the3
Clerk of the Legislature, and the Urban Affairs Committee of the4
Legislature. The division shall also make the comprehensive report5
available on the website of the Department of Administrative Services.6
Sec. 5. If any city or county fails to submit an annual report to7
the division as required under section 3 of this act, the division shall8
send notification of the noncompliance to the governing body of the9
relevant city or county and to the State Treasurer. The State Treasurer10
shall then suspend all distributions of state aid allocated to the city11
or county until the annual report is submitted. Once the annual report12
has been submitted, the city or county shall again become entitled to all13
distributions of state aid, including any suspended distributions.14
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