LB 1155 — Change provisions relating to legislative oversight

LB1155 LB1155 2026 LEGISLATURELEGISLATIVE OFBILL NEBRASKA1155 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor SECONDApril SESSION14, LEGISLATIVE2026 BILL 1155 FINAL READING   Introduced by Dorn, 30;

Read  firstA timeBILL JanuaryFOR 20,AN 2026ACT Committee:relating to legislative oversight;

Executive Board A BILL FOR AN ACT relating to legislative oversight;

Be it enacted by the people of the State of Nebraska, -1- LB1155 LB1155 2026 Section 1.

and information supplied to the court of jurisdiction in such cases by any individual or any public or private institution, agency, facility, or clinic, which is compiled by, produced by, and in the -2- LB1155 LB1155 2026 possession of any court.

Nothing in this subsection shall prevent the notification of death or serious injury of a -3- LB1155 LB1155 2026 juvenile to the Inspector General of Nebraska Child Welfare pursuant to section 50-1806 as soon as reasonably possible after the Office of Probation Administration learns of such death or serious injury.

-1- LB1155 LB1155 2026 (6) In all cases under sections 43-246.01 and 43-247, the juvenile court shall disseminate confidential record information to the Foster Care Review Office pursuant to the Foster Care Review Act.

(9) Nothing in subsection (3), (5), or (6) of this section shall be construed to restrict the immediate dissemination of a current picture -4- LB1155 LB1155 2026 and information about a child who is missing from a foster care or out-out-of-home of-home placement.

-5- LB1155 LB1155 2026 50-1205 The committee shall:

-2- LB1155 LB1155 2026 (11) Hold public hearings, at the committee's discretion, for the purpose of receiving testimony prior to issuance of audit reports;

(12) Establish a system to ascertain and monitor an agency's -6- LB1155 LB1155 2026 implementation of the recommendations contained in audit reports and compliance with any statutory changes resulting from the recommendations;

-7- LB1155 LB1155 2026 (b) Provide an independent form of inquiry for concerns regarding the actions of individuals and agencies responsible for the care and protection of children and youth in the Nebraska child welfare system and juvenile justice system.

50-1805 (1) The office of Inspector General of Nebraska Child Welfare is created within the Division of Legislative Oversight for the purpose of conducting investigations, audits, inspections, and other -8- LB1155 LB1155 2026 oversight of the Nebraska child welfare system and juvenile justice system for the Legislature.

(3) The Inspector General shall employ such investigators and support staff as the Inspector General deems necessary to carry out the duties of the -3- LB1155 LB1155 2026 office within the amount available by appropriation through the Division of Legislative Oversight for the office of Inspector General of Nebraska Child Welfare.

The Inspector General -9- LB1155 LB1155 2026 may also be removed by a two-thirds majority vote of the Legislative Oversight Committee.

50-181250-1812 (1) (1) Reports of investigations conducted by the office shall not be distributed beyond the entity that is the subject of the report without the consent of the Inspector General.

(5)(a) A summarized final report based on an investigation may be -10- LB1155 LB1155 2026 publicly released in order to bring awareness to systemic issues.

50-191250-1912 (1) (1) Reports of investigations conducted by the office shall not be distributed beyond the entity that is the subject of the report without the consent of the Inspector General.

The office may also disclose confidential information to the -11- LB1155 LB1155 2026 chairperson of the Legislative Oversight Committee, the chairperson of the Executive Board of the Legislative Council, and the chairperson of the Judiciary Committee of the Legislature when such disclosure is, in the judgment of the Inspector General and the Director of Legislative Oversight, appropriate to keep the Legislature informed of important events, issues, and developments in the Nebraska correctional system.

and -4- LB1155 LB1155 2026 (ii) If a determination is made by the Inspector General with the chairperson of the Legislative Oversight Committee that doing so would be in the best interest of the public.

Reports of investigations conducted by the office are not public records for -12- LB1155 LB1155 2026 purposes of sections 84-712 to 84-712.09.

(b) The Tax Commissioner may prescribe the extent to which any -13- LB1155 LB1155 2026 ruling or regulation shall be applied without retroactive effect.

-14- LB1155 LB1155 2026 (6) In administration of the use tax, the Tax Commissioner may require the filing of reports by any person or class of persons having in his, her, or their possession or custody information relating to sales of property, the storage, use, or other consumption of which is subject to the tax.

(7) It shall be a Class I misdemeanor for the Tax Commissioner, any official or employee of the Tax Commissioner, the State Treasurer, or the Department of Administrative Services, or any other person to make known in any manner whatever the business affairs, operations, or information obtained by an -5- LB1155 LB1155 2026 investigation of records and activities of any retailer or any other person visited or examined in the discharge of official duty or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof, or any book containing any abstract or particulars thereof to be seen or examined by any person not connected with the Tax Commissioner.

Nothing in this section shall be construed to prohibit (a) the delivery to a taxpayer, his or her duly authorized representative, or his or her successors, receivers, trustees, executors, administrators, assignees, or guarantors, if directly interested, of a certified copy of any return or report in connection with his or her tax, (b) the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, (c) the inspection by the Attorney General, other legal representative of the state, or county attorney of the reports or returns of any taxpayer when either (i) information on the reports or returns is considered by the Attorney General to be relevant to any action or proceeding instituted by the taxpayer or against whom an action or proceeding is being considered or has been commenced by any state agency or the county -15- LB1155 LB1155 2026 or (ii) the taxpayer has instituted an action to review the tax based thereon or an action or proceeding against the taxpayer for collection of tax or failure to comply with the Nebraska Revenue Act of 1967 is being considered or has been commenced, (d) the furnishing of any information to the United States Government or to states allowing similar privileges to the Tax Commissioner, (e) the disclosure of information and records to a collection agency contracting with the Tax Commissioner pursuant to sections 77-377.01 to 77-377.04, (f) the disclosure to another party to a transaction of information and records concerning the transaction between the taxpayer and the other party, (g) the disclosure of information pursuant to section 77-27,195, 77-5731, 77-6837, 77-6839, or 77-6928, or (h) the disclosure of information to the Department of Labor necessary for the administration of the Employment Security Law, the Contractor Registration Act, or the Employee Classification Act.

-16- LB1155 LB1155 2026 (10) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner may, upon request, provide the county board of any county which has exercised the authority granted by section 81-3716 with a list of the names and addresses of the hotels located within the county for which lodging sales tax returns have been filed or for which lodging sales taxes have been remitted for the county's County Visitors Promotion Fund under the Nebraska Visitors Development Act.

(b) No employee of the Auditor of Public Accounts or the Legislative Audit Office shall disclose to any person, other than another Auditor of -17- LB1155 LB1155 2026 Public Accounts or office employee whose official duties require such disclosure, any return or return information described in the Nebraska Revenue Act of 1967 in a form which can be associated with or otherwise identify, directly or indirectly, a particular taxpayer.

-6- LB1155 LB1155 2026 (12) For purposes of this subsection and subsections (11) and (14) of this section:

and (c) Tax return or return means any tax or information return or claim for refund required by, provided for, or permitted under sections 77-2701 to 77-2713 which is filed with the Tax Commissioner by, on behalf of, or with respect to any person and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are -18- LB1155 LB1155 2026 supplemental to or part of the filed return.

(b) Each municipality that seeks to request information under -19- LB1155 LB1155 2026 subdivision (a) of this subsection shall certify to the Department of Revenue one individual who is authorized by such municipality to make such a request for the documents described in subdivision (a) of this subsection.

(f) The Department of Revenue shall not be held liable by any person for an impermissible disclosure by a municipality or any agent or -20- LB1155 LB1155 2026 employee thereof of any information obtained pursuant to a review under this subsection.

-7- LB1155 LB1155 2026 The Tax Commissioner in his or her discretion may waive all or part of any penalties provided by the provisions of such act or interest on delinquent taxes specified in section 45-104.02, as such rate may from time to time be adjusted.

(ii) Personally identifiable information is only used and retained -21- LB1155 LB1155 2026 to the extent necessary for the administration of model 1 with respect to exempt purchasers;

(h) If anyone other than a member state, or a person authorized by that state's law or the agreement, seeks to discover personally identifiable information, the state from whom the information is sought -22- LB1155 LB1155 2026 should make a reasonable and timely effort to notify the individual of such request.

77-27,11977-27,119 (1) (1) The Tax Commissioner shall administer and enforce the income tax imposed by sections 77-2714 to 77-27,135, and he or she is authorized to conduct hearings, to adopt and promulgate such rules and regulations, and to require such facts and information to be reported as he or she may deem necessary to enforce the income tax provisions of such sections, except that such rules, regulations, and reports shall not be inconsistent with the laws of this state or the laws of the United States.

-23- LB1155 LB1155 2026 (2)(a) The Tax Commissioner may prescribe the form and contents of any -8- LB1155 LB1155 2026 return or other document required to be filed under the income tax provisions.

(3) The Tax Commissioner, for the purpose of ascertaining the correctness of any return or other document required to be filed under the income tax provisions, for the purpose of determining corporate income, individual income, and withholding tax due, or for the purpose of making an estimate of taxable income of any person, shall have the power to examine or to cause to have examined, by any agent or representative designated by him or her for that purpose, any books, papers, records, or -24- LB1155 LB1155 2026 memoranda bearing upon such matters and may by summons require the attendance of the person responsible for rendering such return or other document or remitting any tax, or any officer or employee of such person, or the attendance of any other person having knowledge in the premises, and may take testimony and require proof material for his or her information, with power to administer oaths or affirmations to such person or persons.

The officers charged with the custody of such reports and returns shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the Tax Commissioner in an action or proceeding under the provisions of the tax law to which he or she is a party or on behalf of any party to any action or proceeding under such sections when the reports or facts shown thereby -25- LB1155 LB1155 2026 are directly involved in such action or proceeding, in either of which events the court may require the production of, and may admit in evidence, so much of such reports or of the facts shown thereby as are pertinent to the action or proceeding and no more.

Nothing in this section shall be construed (a) to prohibit the delivery to a taxpayer, his or her duly authorized representative, or his or her successors, receivers, trustees, personal representatives, administrators, assignees, or guarantors, if directly interested, of a certified copy of any return or report in connection with his or her tax, (b) to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, (c) to prohibit the inspection by the Attorney General, other legal representatives of the state, or a county attorney of the report or return of any taxpayer who brings an action to review the tax based thereon, against whom an action or proceeding for collection of tax has been instituted, or against whom an action, proceeding, or prosecution for failure to comply with the Nebraska Revenue Act of 1967 is being considered or has been commenced, (d) to prohibit furnishing to the Nebraska Workers' Compensation Court the names, addresses, and identification numbers of employers, and such information shall be furnished on request of the court, (e) to prohibit the disclosure of information and records to a collection agency contracting with the Tax Commissioner pursuant to sections 77-377.01 to 77-377.04, (f) to prohibit the disclosure of information pursuant to section 77-27,195, 77-4110, 77-5731, 77-6521, 77-6837, 77-6839, or 77-6928, (g) to prohibit the disclosure to the Public Employees Retirement Board of the addresses of individuals who are members of the retirement systems administered by the board, and such information shall be furnished to the board solely for purposes of its administration of the retirement systems upon written request, which request shall include the name and social security number of each individual for whom -9- LB1155 LB1155 2026 an address is requested, (h) to prohibit the -26- LB1155 LB1155 2026 disclosure of information to the Department of Labor necessary for the administration of the Employment Security Law, the Contractor Registration Act, or the Employee Classification Act, (i) to prohibit the disclosure to the Department of Motor Vehicles of tax return information pertaining to individuals, corporations, and businesses determined by the Department of Motor Vehicles to be delinquent in the payment of amounts due under agreements pursuant to the International Fuel Tax Agreement Act, and such disclosure shall be strictly limited to information necessary for the administration of the act, (j) to prohibit the disclosure under section 42-358.08, 43-512.06, or 43-3327 to any court-court-appointed appointed individuals, the county attorney, any authorized attorney, or the Department of Health and Human Services of an absent parent's address, social security number, amount of income, health insurance information, and employer's name and address for the exclusive purpose of establishing and collecting child, spousal, or medical support, (k) to prohibit the disclosure of information to the Department of Insurance, the Nebraska State Historical Society, or the State Historic Preservation Officer as necessary to carry out the Department of Revenue's responsibilities under the Nebraska Job Creation and Mainstreet Revitalization Act, or (l) to prohibit the disclosure to the Department of Insurance of information pertaining to authorization for, and use of, tax credits under the New Markets Job Growth Investment Act.

-27- LB1155 LB1155 2026 (7) Reports and returns required to be filed under income tax provisions of sections 77-2714 to 77-27,135 shall be preserved until the Tax Commissioner orders them to be destroyed.