Change provisions relating to withholding money due to noncompliance with budget limits, property tax reque...
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LB 123 — Change provisions relating to withholding money due to noncompliance with budget limits, property tax request authority, and annual audits for certain political subdivisions
Last action — Approved by Governor on March 25, 2025
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Legislature
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✓To Executive
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5Enacted
This bill has been enacted into law. Introduced January 10, 2025. Enacted.
Signed by Governor Jim Pillen (Republican) on March 26, 2025.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Mixed recorded votes
2 passed, 1 failed in recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
115 added · 131 removedPlain-language change summary
The recent amendments to LB 123 clarify the process for enforcing budget compliance among local governments in Nebraska. Specifically, the changes state that if a government unit fails to meet budget limits, the State Treasurer will hold back any state aid for a period of six months until compliance is achieved. This matters because it aims to ensure that local governments adhere to financial regulations, which can help maintain fiscal responsibility and accountability.
LB123 LB123 2025 LEGISLATURELEGISLATIVE OFBILL NEBRASKA123 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor FIRSTMarch SESSION25, LEGISLATIVE2025 BILL 123 FINAL READING Introduced by Sanders, 45.
Read firstA timeBILL JanuaryFOR 10,AN 2025ACT Committee:relating to political subdivisions;
Government, Military and Veterans Affairs A BILL FOR AN ACT relating to political subdivisions;
Be it enacted by the people of the State of Nebraska, -1- LB123 LB123 2025 Section 1.
(3) If any governmental unit fails to reach compliance within twelve months after the time of the order and notice of delinquency given by the -2- LB123 LB123 2025 Auditor of Public Accounts to the State Treasurer, such governmental unit shall be ineligible for future distributions of state aid.
All state aid that was forfeited shall remain forfeited and redistributed -3- LB123 LB123 2025 according to subdivision (a)(i) of this subsection.
Upon reaching compliance, the political -1- LB123 LB123 2025 subdivision shall be eligible for future distributions of state aid.
19-290719-2907 Should Should any municipality fail or refuse to cause an annual audit to be made of all of its functions, activities, and transactions for the fiscal year within a period of six months following the close of such fiscal year, then and in such event, any resident taxpayer may make a written demand on the city council or village board of trustees of such municipality to commence such annual audit within thirty days, and if such demand is ignored, a mandamus action may be instituted by any taxpayer or taxpayers residing in such municipality against the municipal authorities of such municipality requiring the municipality to proceed forthwith to cause such audit to be made, and if such action is decided in favor of the taxpayer or taxpayers instituting the same, the municipal authorities of such municipality shall be personally, and jointly and severally, liable for the costs of such action, including a reasonable attorney's fee to be allowed by the court for the attorney employed by the taxpayer or taxpayers and who prosecuted the action.
The State Treasurer shall, upon receipt of such notice, withhold distribution of all money to -4- LB123 LB123 2025 which such city or village may be entitled under the provisions of sections 39-2511 to 39-2520, until such annual audit shall have been made and have been filed with the Auditor of Public Accounts.
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AI-generated reading aid from the bill's amendatory text — verify against the official bill.
The bill updates provisions regarding the withholding of state aid for noncompliance by political subdivisions with budget limits, property tax requests, and audit requirements.
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13-522
The State Treasurer shall then suspend distribution of state aid allocated to the governmental unit until such sections are complied with.→ The State Treasurer shall then suspend distribution of state aid allocated to the governmental unit until the governmental unit complies.The amendment clarifies that state aid can be suspended until compliance is achieved.
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13-3407
The State Treasurer shall then suspend distribution of state aid allocated to the political subdivision until the political subdivision complies.→ The State Treasurer shall then suspend distribution of state aid allocated to the political subdivision until the political subdivision complies.The amendment clarifies that state aid can be suspended until compliance is achieved.
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19-2907
the State Treasurer shall, upon receipt of such notice, withhold distribution of all money to which such city or village may be entitled under the provisions of sections 39-2511 to 39-2520, until such annual audit shall have been made and have been filed with the Auditor of Public Accounts.→ the State Treasurer shall, upon receipt of such notice, withhold distribution of all money to which such city or village may be entitled under the provisions of sections 39-2511 to 39-2520, until such annual audit shall have been made and filed with the Auditor of Public Accounts.The amendment updates the language for clarity on the withholding of funds until an audit is filed.
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19-2907
the auditor shall, after due notice and a hearing to show cause by such city or village, notify the State Treasurer of such failure to file a copy with the Auditor of Public Accounts.→ the Auditor of Public Accounts shall, after due notice and a hearing to show cause by such city or village, notify the State Treasurer of such failure to file a copy with the Auditor of Public Accounts.The amendment specifies that the Auditor of Public Accounts is responsible for notifying the State Treasurer.
Action History
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Approved by Governor on March 25, 2025
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Passed on Final Reading 45-0-4
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President/Speaker signed
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Presented to Governor on March 20, 2025
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Placed on Final Reading with ST11
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Enrollment and Review ST11 filed
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Enrollment and Review ST11 recorded
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Sanders AM407 adopted
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Advanced to Enrollment and Review for Engrossment
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Sanders AM407 filed
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Placed on Select File
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Advanced to Enrollment and Review Initial
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Placed on General File
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Notice of hearing for January 29, 2025
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Referred to Government, Military and Veterans Affairs Committee
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Date of introduction
Sponsors
- Rita Sanders · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 48 not signed on
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (48)
48 members have not signed on to this bill.
Show all 48 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 45 | 0 | 0 | 4 |
| Total | 45 | 0 | 0 | 4 |
| % of votes cast | 92% | 0% | 0% | 8% |
How each member voted (49)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 29 | 0 | 0 | 20 |
| Total | 29 | 0 | 0 | 20 |
| % of votes cast | 59% | 0% | 0% | 41% |
How each member voted (49)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 37 | 0 | 0 | 12 |
| Total | 37 | 0 | 0 | 12 |
| % of votes cast | 76% | 0% | 0% | 24% |
How each member voted (49)
Subjects
Frequently asked questions
- Who sponsors LB 123?
- LB 123 is sponsored by Rita Sanders.
- What is the current status of LB 123?
- This bill has been enacted into law. Introduced January 10, 2025. Enacted.
- Where can I track LB 123?
- Track LB 123 free on One Click Politics — get push/email alerts when it moves.
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