LB 1114 — Adopt the Community Improvement District Act and the New Taxpayer Recruitment Grant Act, authorize community improvement districts to levy property taxes, and change provisions related to the Community Development Law, the Municipal Inland Port Authority Act, extraterritorial jurisdiction, sanitary and improvement districts, housing authorities, housing agencies, the Nebraska Housing Agency Act, and the Local Option Municipal Economic Development Act

(1) (1) Except as provided in subsection (5) of section 84-1411, the clerk or administrator of each community improvement district shall notify the city or village where such district is located of all meetings of the community improvement district board of trustees or called by the administrator by sending a notice of such meeting to the clerk of the city or village not less than seven days prior to the date set for any meeting.

 (1)(a)(1)(a) On or before December 31 of each year, the clerk of each community improvement district shall file with the register of deeds or the clerk of the city or village in which the community improvement district is located a statement updated each December 31 containing the following information:

and -12- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (iv) The current tax levy of the community improvement district, as described in section 21 of this act, as of December 31.

(1)(a) (1)(a) On the first Tuesday after the second Monday in September which is at least fifteen months after the city council or village board of trustees passes the ordinance creating a community improvement district and on the first Tuesday after the second Monday in September each two years thereafter, the board of trustees shall cause a special election to be held, at which election a board of trustees shall be elected.

Each member elected to the board of trustees shall be elected to a term of two years and shall hold -13- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 office until such member's successor is elected and qualified.

If such person will -5- LB1114 LB1114 2026 serve on the board of trustees as a designated representative of a limited partnership, general partnership, limited liability company, public, private, or municipal corporation, estate, or trust which owns real estate in the community improvement district, the filing shall indicate that fact and shall include appropriate documentation evidencing such fact.

A write-in candidate for the office of trustee who will serve as a designated representative of a limited partnership, a general partnership, a limited liability company, a public, private, or municipal corporation, an estate, or a trust which owns real estate in the community improvement district shall not be -14- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 elected to the office of trustee unless (i) each vote is accompanied by the name of the entity which the candidate will represent and (ii) within ten days after the date of the election the candidate provides the election commissioner or county clerk with appropriate documentation evidencing the candidate's representation of the entity.

At the election held six years after the first election of trustees, two members of the board of -15- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 trustees shall be elected by the legal property owners resident within such community improvement district and three members shall be elected by all of the owners of real estate located in the community improvement district pursuant to this section.

If more than fifty percent of the homes in any community improvement district are used as a second, seasonal, or recreational residence, the owners of such property shall be considered -16- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 legal property owners resident within such community improvement district for purposes of electing trustees.

-6- LB1114 LB1114 2026 For purposes of voting for trustees, each condominium apartment under a condominium property regime established under the Nebraska Condominium Act shall be deemed to be a platted lot and the lessee or the owner of the lessee's interest, under any lease for an initial term of not less than twenty years which requires the lessee to pay taxes and special assessments levied on the leased property, shall be deemed to be the owner of the property so leased and entitled to cast the vote of such property.

At the next election and at each election thereafter, two members of the board of trustees shall be elected by the legal property owners resident within such community improvement district -17- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 and one member shall be elected by all of the owners of real estate located in the community improvement district pursuant to this section.

If more than one ballot is included in the same return envelope, such ballots shall not be counted and shall be reinserted into the return -18- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 envelope which shall be resealed and marked rejected.

The entire costs of conducting the election shall be borne by the community improvement district holding the election, and such costs shall include all expenses such as procuring a list of the property owners of record in each such community improvement district, printing and mailing notices of the elections to such property owners, printing, preparing, and mailing ballots, paying compensation and mileage for the election boards conducting such elections, and also indirect expenses, such as the pro rata amount of any additional clerical expense or other miscellaneous expenses to be incurred by the election commissioner or county clerk in conducting all of such -7- LB1114 LB1114 2026 elections to be held in such calendar year.

Within sixty days after the elections have been held, each community improvement district shall be charged and billed for all of the actual expenses incurred by the election commissioner or county clerk attributable to such community improvement -19- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 district.

The approval of plans and specifications for the public improvement or project, or the approval of plans and exact costs for public parks, playgrounds, and recreational facilities, as required by section 22 of this act, shall be deemed to be approval for the acquisition by the community improvement district of -20- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 such fee title, easements, or other interests in such property as may be required for the public improvement or project.

and (b) The condemnation of property rights of a state highway or state-state-owned owned property or facility.

The board of trustees or administrator of the community improvement district shall coordinate with the Department of Transportation for highways, or the applicable state agency for other state-owned property, concerning the proposed revisions to these properties in the community improvement district, and all concerns raised -21- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 by the state shall be resolved or addressed by the board of trustees or administrator of the community improvement district in a manner acceptable to the state.

As treasurer of the community improvement district he or she shall (a) establish such funds and accounts on behalf of the community improvement district as he or she determines necessary or appropriate at the direction of the board of trustees of the community improvement district and (b) collect all taxes and special assessments levied by the community improvement district and -8- LB1114 LB1114 2026 deposit the same in the appropriate funds and accounts of the community improvement district for the payment of principal and interest on any bonds, warrants, and other obligations outstanding and for general corporate purposes of the community improvement district, all in accordance with action of the board of trustees of the community improvement district.

(3) The treasurer of the community improvement district shall not be responsible for funds of the community improvement district until they -22- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 are received by him or her.

Such audits may be waived by the Auditor of Public Accounts upon proper showing by the community improvement district that -23- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 the audit is unnecessary.

(4) If any community improvement district fails or refuses to cause such 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, unless such audit has been waived, the Auditor of Public Accounts may, after due notice and a hearing to show cause by such community improvement district, conduct an audit of the community improvement district pursuant to section 84-304 or assess the community improvement district a fee pursuant to subsection (2) of -24- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 section 84-304.01.

When any such assessment is levied, it shall be the duty of the city or village clerk to deliver a certified copy of the ordinance to the county treasurer of the county in which the premises -9- LB1114 LB1114 2026 assessed are located and such county treasurer shall collect the assessment as provided by law and return the assessment to the city or village treasurer.

The board of trustees may, in connection with the issuance of any warrants or bonds of the community improvement district, agree to make a specified minimum levy on taxable -25- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 property in the community improvement district to pay, or to provide a sinking fund to pay, principal and interest on warrants and bonds of the community improvement district for such number of years as the board may establish at the time of making such agreement and may agree to enforce, by foreclosure or otherwise as permitted by applicable laws, the collection of special assessments levied by the community improvement district.

 WheneverWhenever a majority of the board of trustees shall deem it advisable to amend the articles of association of the community improvement district to change the maximum permitted levy rate, and after -26- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 a proposed amendment to the articles of association has been signed by a majority of the owners having an interest in the real property within the limits of the community improvement district, the community improvement district clerk shall file an application for such amendment with the city or village clerk with a request that the maximum permitted levy rate be changed, all in the same manner as approval of the initial articles of association pursuant to the Community Improvement District Act.

(1) (1) Whenever the board of trustees or the administrator deems it advisable or necessary to build, reconstruct, purchase, or otherwise acquire public infrastructure improvements or to incur other costs permitted by the Community Improvement District Act, the board of trustees shall declare the advisability and necessity therefor in a proposed resolution.

(2) Such proposed resolution of necessity shall refer to the plans and specifications for the proposed improvements, proposed agreements or contracts, together with the estimated cost thereof which have been made -27- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 and filed with the community improvement district clerk before the publication of such resolution.

(1) Notice of the time and place, which place shall be in the -10- LB1114 LB1114 2026 city or village where the community improvement district is organized, when any resolution proposed under section 25 of this act shall be set for consideration before the board of trustees or the administrator, shall be given the same day each week two consecutive weeks in a newspaper of general circulation published in the city or village where the community improvement district was organized, which publication shall contain the entire wording of the proposed resolution.

(2) If a petition opposing the proposed resolution, signed by property owners representing a majority of the front footage which may become subject to assessment for the cost of any improvements as set -28- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 forth by the proposed resolution, is filed with the clerk of the community improvement district within three days before the date of the meeting for the hearing on such proposed resolution, such proposed resolution shall not be adopted.

Each bid shall be accompanied in a separate sealed envelope by a certified check or bid bond in an amount to be named in the notice, which amount shall be not less than five percent of the engineer's total estimate of the cost, and shall be made payable to the treasurer of the community improvement district as security that the bidder to whom the contract may be awarded will enter into a contract to build the improvements in accordance with the notice to contractors and give bond in the sum named in such notice -29- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 for the construction of such improvements as the notice required.

(2) Upon approval of the certificate of acceptance, if the board of trustees determines special assessments are to be levied, the board of trustees or administrator shall require the engineer to make a complete statement of all the costs of any such improvements, a plat of the property in the community improvement district, and a schedule of the -30- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 amount proposed to be assessed against each separate piece of property in such community improvement district.

Such notice shall be given by publication the same day each week two -11- LB1114 LB1114 2026 consecutive weeks in a newspaper of general circulation published in the city or village where the community improvement district was organized.

(5) Notice of the proposed special assessments for such improvements against each separate piece of property shall be given to each owner of -31- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 record thereof within five days after the first publication of notice of statement, plat, and schedules and, within five days after the first publication of such notice, a copy thereof, along with statements of costs and schedules of proposed special assessments, shall be given to each person or company who, pursuant to written contract with the community improvement district, has acted as underwriter or municipal advisor for the community improvement district in connection with the sale or placement of warrants or bonds issued by the community improvement district.

(1) After the equalization of such special assessments as required by the Community Improvement District Act, such special assessments shall be levied by the board of trustees or the administrator upon all lots or parcels of ground within the community improvement district which are benefited by reason of such improvement, such levy to -32- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 be made within six months after acceptance of the improvement by the board of trustees or the administrator.

In such cases, the owner of such property shall pay the community -33- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 improvement district a sum equivalent to the amount the property has been specially benefited, which amount may be recovered by the community improvement district in an action against the property owner.

The cost of such -12- LB1114 LB1114 2026 improvements shall be paid from the assessments levied against all the property in the community improvement district, in the manner provided by section 36 of this act, or may be paid from unappropriated money in its general fund.

 AllAll special assessments provided for in section 32 of this act shall become due in fifty days after the date of the levy and may be paid within that time without interest, but if not so paid they shall bear interest thereafter on a per annum basis until delinquent at the greater of (1) the rate of interest accruing on warrants registered against such community improvement district sixty days prior to the actual levy of the special assessments or (2) the average rate of interest accruing on the warrants issued to pay for the improvements for which the special assessments are to be levied adjusted to the next greater one-half percent.

Such assessments shall become delinquent in equal annual installments over such periods of years, not exceeding twenty, as the board of trustees or the administrator may determine at -34- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 the time of making the levy.

Each issue of bonds shall mature or be subject to mandatory redemption so that the first principal repayment is made not more than five years after the date of issuance and so that at least twenty percent of the community improvement district's -35- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 bonds then outstanding shall be repaid within ten years after the date of issuance.

The community improvement district shall agree to pay annual or semiannual interest on all capital outlay warrants issued by the community improvement district and shall issue warrants to pay such interest or shall issue its warrants in return for -36- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 cash to pay such interest.

(4) The community improvement district may, if determined appropriate by the board of trustees or the administrator, pay fees to attorneys, municipal advisors, underwriters, and other professionals in connection with the placement and registration of ownership of warrants issued by the community -13- LB1114 LB1114 2026 improvement district.

In the case of a resolution or other proceeding providing for the issuance of bonds, warrants, or other obligations, pursuant to the Community Improvement District Act, the board of trustees or clerk of such community -37- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 improvement district may, either before or after the adoption of such resolution or resolutions or other proceeding, in lieu of publishing the entire resolution or resolutions or other proceeding, publish a notice of intention to issue bonds, warrants, or other obligations under the Community Improvement District Act, titled to indicate such intention, containing:

(b) For a period of thirty days after such publication, any interested person shall have the right to contest (i) the legality and validity of each and all of the proceedings for the organization of such community improvement district under the Community Improvement District Act, from and including the petition for the organization of the community improvement district, and all other proceedings which may affect the legality or validity of the bonds, warrants, or other -38- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 obligations and the order of the sale and the sale thereof, (ii) any provisions made for the security and payment of such bonds, warrants, or other obligations, or (iii) any contract of purchase, sale, or lease relating to the issuance of such bonds, warrants, or other obligations.

 (1)(1) The community improvement district may be enlarged and additional territory annexed to the community improvement district.

(2) All property, from and after annexation to the community improvement district as provided in subsection (1) of this section, shall be subject to all taxes and other burdens thereafter levied by the -39- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 community improvement district, regardless of when the obligation for which the taxes or assessments are levied was incurred.

-14- LB1114 LB1114 2026 Sec.

(2) If (a) a petition opposing the proposed resolution of dissolution is signed by property owners representing a majority of the -40- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 area of real estate within the community improvement district or (b) a resolution is adopted by the city council or village board of trustees opposing such dissolution and either is presented to the board of trustees or the administrator on or prior to the hearing date, then the board of trustees or the administrator shall not adopt such resolution.

(1) Whenever a majority of the respective boards of trustees or the administrators of two community improvement districts organized under the Community Improvement District Act, organized within the same city or village shall desire that one of the community improvement districts shall wholly merge into the other community improvement district, the trustees or administrators shall first propose a joint resolution declaring the advisability of such merger and setting -41- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 out verbatim the terms and conditions thereof and specifying which community improvement district shall be the surviving community improvement district, and also setting out the time and place when the boards of trustees or administrators of the two community improvement districts shall meet to consider the adoption of such resolution.

(3) If (a) a petition opposing the proposed resolution of merger is signed by (i) property owners representing a majority of the area of real estate within either community improvement district or (ii) any holder of any unpaid -15- LB1114 LB1114 2026 bonds, warrants, or other obligations of either community -42- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 improvement district or (b) a resolution is adopted by the city council or village board of trustees opposing such resolution of merger and if any such petition or resolution is presented to the boards of trustees or administrators on or prior to the hearing date, then the boards of trustees or administrators shall not adopt such resolution.

(5) Upon the filing of the certified copies of the resolution of merger as provided in this section, the corporate existence of the nonsurviving community improvement district shall thereupon terminate and the boundaries of the surviving community improvement district shall be -43- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 extended to include all the territory within the boundaries of the nonsurviving community improvement district.

Notice of the time and place when the resolution shall be set for consideration shall be delivered to the city or village clerk and the county clerk, election commissioner, and register of deeds of each county or counties in which the community improvement district is located at least forty-fiveforty- five days prior to such date.

Notice of the time and place when the resolution shall be set for consideration shall be published the same day each week for two consecutive weeks in a newspaper of general circulation published in the city or village where the community improvement district was organized, which publication shall contain the entire wording of the proposed -44- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 resolution.

After the board of trustees or the administrator has adopted such -16- LB1114 LB1114 2026 resolution of detachment, the clerk of the community improvement district shall prepare and file a certified copy of the resolution of detachment in the office of the city clerk where the original articles of association were filed and in the office of the Secretary of State, and thereupon the area detached shall become excluded -45- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 and detached from the boundaries of the community improvement district.

A A petition may be filed with the district court of the county in which a majority of the real property of a community improvement district is located for referral of the community improvement district to the city council of the city or board of trustees of the village in which the community improvement district is located for the appointment of an administrator of the community improvement district and suspension of the authority of the board of trustees of the community improvement district or other relief as provided by sections 43 to 51 of -46- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 this act.

Notice shall be sent to each bond and warrant holder, trustee, and property owner whose name and post office address are known after -47- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 diligent investigation and inquiry.

The The petition shall state that the community improvement district (1) has been in default for more than ninety days on its issued and outstanding bonds or construction fund warrants of the community improvement district, (2) has levied a tax upon the taxable value of the taxable property in the community improvement district which, along with the sinking fund derived from special assessments, has not been sufficient to meet payments of interest and principal on the issued and outstanding bonds of the community improvement district, (3) has failed to levy special assessments on all lots, parcels, or -17- LB1114 LB1114 2026 pieces of real property within the terms provided in section 32 of this act, or (4) lacks a functioning board of trustees.

The petition shall pray for referral of the community improvement district to the city council of the city or board of trustees of the village in which the community improvement district is located for the appointment of an administrator for the community improvement district and for an order suspending the authority of the board of trustees of the community improvement district -48- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 to exercise the powers granted to such board pursuant to the Community Improvement District Act during the period of such administrator's appointment or for such other relief as the court may determine appropriate.

Upon Upon the hearing of the special proceedings pursuant to sections 42 to 47 of this act, the court shall, upon a finding that any of the statements in subdivisions (1) through (4) of section 44 of this act are true, that the petition has been properly filed and notice of the petition has been duly given and published for the time and in the manner prescribed in sections 42 to 47 of this act, and that it is in the best interest of the community improvement district, have the power and jurisdiction to issue an order which refers the community improvement district to the city council of the city or board of trustees of the village in which the community improvement district is located for appointment by the city council or village board of trustees of an administrator from a list of not less than two names of persons -49- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 possessing real estate and financial expertise compiled by the court in the proceedings, and which provides for the suspension of the authority of the board of trustees of the community improvement district to exercise the powers granted such board under the Community Improvement District Act during the period of such administrator's appointment.

Within sixty days after receipt of such order of the district court, the city council or village board of trustees shall file with the court a certificate evidencing compliance with this section and if the city council or village board of trustees determines not to appoint an administrator, such certificate shall specify the grounds for the city -50- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 council's or village board of trustees' determination that the appointment would not be in the best interest of the community improvement district.

In order to carry out any compromise agreements made, the board of trustees or the administrator shall have the power to issue new bonds or warrants which may be delivered to the holders or owners of the indebtedness being compromised or may be sold on such terms as the board of trustees or -18- LB1114 LB1114 2026 administrator shall determine to provide cash to carry out the compromise settlement.

Such review by the district court shall be limited to the legality and validity of the new bonds or warrants to be issued, and the decree of the district court determining the issuance of the new bonds or warrants to be legal and valid shall be conclusive against the community improvement district and all other persons having or claiming -51- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 any interest in the community improvement district.

The administrator shall serve at the pleasure of the city council of the city or board of trustees of the village in which the -52- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 community improvement district is located or until the district court shall terminate the authority of the city council or village board of trustees and the administrator.

(1) (1) A trustee of a community improvement district may be removed from office by recall pursuant to sections 52 to 59 of this act.

(2) The signers of the petition shall be persons who were, on the date the initial petition papers are issued under subsection (7) of this section, eligible to vote in a community improvement district election as -53- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 provided in section 14 of this act.

If the signature was made by or for an owner of more -19- LB1114 LB1114 2026 than one parcel of property, the signature made by or on behalf of such owner shall be assigned a count equal to the total number of votes which the owner was eligible to cast.

Prior to the issuance of such petition papers, a recall petition filing -54- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 form shall be signed and filed with the filing clerk by (a) at least one qualified resident voter of the district if the trustee whose recall is being sought was elected solely by qualified resident voters or (b) at least one qualified resident voter or qualified property owning voter if the trustee whose recall is being sought was elected by qualified resident voters and qualified property owning voters.

(1) The Secretary of State shall design the uniform petition papers to be distributed by all filing clerks for use in the recall of trustees of community improvement districts and shall keep a sufficient number of such blank petition papers on file for distribution -55- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 to any filing clerk requesting recall petitions.

 (1)(1) The principal circulator or circulators shall file, as one instrument, all petition papers comprising a recall petition for signature verification with the filing clerk within thirty days after the filing clerk issues the initial petition papers to the principal circulator or circulators as provided in section 53 of this act.

(3) If the petition is found to be sufficient, the filing clerk -56- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 shall attach to the petition a certificate showing the result of such examination.

(1) (1) If the recall petition is found to be sufficient, the filing clerk shall notify the trustee whose removal is sought and the board of trustees of the community improvement district that sufficient signatures have been gathered.

(2) If the trustee does not resign within five days after receiving the notice, the filing clerk shall order an election to be held not less than -20- LB1114 LB1114 2026 forty-five days nor more than sixty days after the expiration of the five-day period, except that if an election for the board of trustees of the community improvement district is to be held within one hundred twenty days after the expiration of the five-day period, the filing clerk shall provide for the holding of the removal election at the time of such regular election.

The name of the trustee which shall appear on -57- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 the ballot shall be the name of the trustee that appeared on the ballot of the previous election that included his or her name.

10-127 The State Highway Commission, any county, city, village, -58- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 municipal county, school district, drainage district, irrigation district, public power district, public power and irrigation district, metropolitan utilities district, the Board of Regents of the University of Nebraska, the Board of Trustees of the Nebraska State Colleges, community colleges, community improvement districts, sanitary and improvement districts, rural water districts, airport authorities, hospital authorities, or any other municipal corporation or governmental subdivision of the state which has the power to issue bonds or other evidences of indebtedness may issue bonds or other evidences of indebtedness of like date, tenor, amount, and maturity to replace mutilated, destroyed, stolen, or lost bonds or other evidences of indebtedness previously issued and having attached thereto the same corresponding unmatured coupons, if any, as were attached to the mutilated, destroyed, stolen, or lost bonds or other evidences of indebtedness.

A charge, not exceeding the actual cost thereof, shall be imposed upon such owner to reimburse the issuer for the expenses -59- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 for issuing each such new bond or evidence of indebtedness, which cost shall be paid before the delivery of the new bond or evidence of indebtedness.

Instead of issuing a substituted bond or evidence of indebtedness or instead of delivery of any coupon for a bond or evidence of indebtedness, as the case may be, which has matured or which is about to mature and instead of issuing a substituted bond or other evidence of indebtedness for a bond or other evidence of indebtedness -21- LB1114 LB1114 2026 which has been called for redemption, the issuer, upon receiving evidence and being indemnified as provided in this section, at its option may pay the bond or other evidence of indebtedness or such coupon from any source lawfully available therefor without the surrender thereof.

10-133 Any10-133 Any county, city, village, municipal county, school district, public power district, public power and irrigation district, airport authority, community improvement district, sanitary and improvement district, or any other municipal corporation or political subdivision is -60- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 hereby authorized to pay fiscal and consultant fees incurred with respect to issuance and sale of any bonds, notes, or other evidence of indebtedness out of the proceeds from the sale of such bonds or any other funds available to the issuer, and such payment shall not constitute or be considered as a discount with respect to the sale price of the bonds, notes, or other evidence of indebtedness.

(c) any municipal securities dealer -61- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 registered under Section 15B of the Securities Exchange Act of 1934, except that such a dealer may act as a paying agent or registrar only with respect to warrants or an issue of bonds maturing within five years from the date of issuance;

To further secure the refunding bonds, any such district may enter into a contract with any bank or trust company, within or without the state, with respect to the safekeeping and application of the proceeds of the refunding bonds and -62- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 the safekeeping and application of the earnings on the investment of such proceeds.

Any outstanding bonds, which shall have been called for redemption and which have sufficient funds or obligations -22- LB1114 LB1114 2026 of or guaranteed by the United States Government set aside in safekeeping to be applied for the complete payment of such bonds, interest on such bonds, and redemption premium, if any, on the redemption date, shall not be considered as outstanding and unpaid, and such bonds shall be fully secured by and be payable from such funds or obligations so deposited.

(2) Bond means any bond, note, warrant, loan agreement, lease, lease-purchaselease- purchase agreement, pledge agreement, agreement authorized by the governing body of a generating power agency pursuant to section 70-682, or other evidence of indebtedness for which a security interest is granted or a pledge made upon revenue or other property, including any limited tax revenue, to provide for payment or security;

(3) Governmental unit means the State of Nebraska, any county, school district, city, village, public power district, community improvement district, sanitary and improvement district, educational service unit, community college area, natural resources district, airport authority, fire protection district, hospital authority, joint entity created under the Interlocal Cooperation Act, joint public agency, -63- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 instrumentality, or any other district, authority, or political subdivision of the State of Nebraska and governmental units as defined in subdivision (a)(45) of section 9-102, Uniform Commercial Code;

(5) Governmental unit means any county, school district, city, village, public power district, public power and irrigation district, community improvement district, sanitary and improvement district, -64- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 educational service unit, community college area, natural resources district, airport authority, fire protection district, hospital district, hospital authority, housing authority, joint entity created under the Interlocal Cooperation Act, joint public agency created under the Joint Public Agency Act, instrumentality, or any other district, authority, or political subdivision of the State of Nebraska;

For all purposes of the Nebraska Governmental Unit Credit Facility Act, the term United States governmental enterprise shall be conclusively construed as including, but not limited to, any of the Federal Home Loan Banks, the Federal National Mortgage -23- LB1114 LB1114 2026 Association, and the Federal Home Loan Mortgage Corporation.

-65- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 13-402 (1) Any county, city, village, school district, agency of the state government, drainage district, community improvement district, sanitary and improvement district, or other political subdivision of the State of Nebraska is hereby permitted, authorized, and given the power to file a petition in the United States Bankruptcy Court under 11 U.S.C.

sixty-threesixty- three and forty-one hundredths percent for any such petition to be filed during the period between January 1, 2029, and January 1, 2032;

seventy and seventy-oneseventy- one hundredths percent for any such petition to be filed during the period between January 1, 2032, and January 1, 2035;

Such determination shall be prima facie evidence in establishing the authority -66- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 of the city or village to exercise authority under this section.

-67- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 13-503 For purposes of the Nebraska Budget Act, unless the context otherwise requires:

-24- LB1114 LB1114 2026 (3) Fiscal year means the twelve-month period used by each governing body in determining and carrying on its financial and taxing affairs;

(6) Cash reserve means funds required for the period before revenue -68- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 would become available for expenditure but shall not include funds held in any special reserve fund;

Funds created for (a) the retirement of bonded indebtedness, (b) the funding of employee pension plans, (c) the purposes of the Political Subdivisions Self-Funding Benefits Act, (d) the purposes of the Local Option Municipal Economic Development Act, (e) voter-voter-approved approved sinking funds, or (f) statutorily authorized sinking funds shall be considered special reserve funds;

and (11) Biennial budget means (a) a budget by a city of the primary or metropolitan class that adopts a charter provision providing for a biennial period to determine and carry on the city's financial and taxing affairs, (b) a budget by a city of the first or second class or village that provides for a biennial period to determine and carry on the city's -69- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 or village's financial and taxing affairs, or (c) a budget by a natural resources district that provides for a biennial period to determine and carry on the natural resources district's financial and taxing affairs.

(4) Governmental unit means every political subdivision which has authority to levy a property tax or authority to request levy authority under section 77-3443, except that such term shall not include (a) -70- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 community improvement districts and sanitary and improvement districts which have been in existence for five years or less, (b) school districts, or (c) for fiscal years beginning on or after July 1, 2025, counties, cities, or villages;

(6) Restricted funds means (a) property tax, excluding any amounts refunded to taxpayers, (b) payments in lieu of property taxes, (c) local option sales taxes, (d) motor vehicle taxes, (e) state aid, (f) transfers of surpluses from any user fee, permit fee, or regulatory fee if the fee surplus is transferred to fund a service or function not directly related to the fee and the costs of the activity funded from the fee, (g) any funds excluded from restricted funds for the prior year because they were budgeted for capital improvements but which were not spent and are not expected to be spent for capital improvements, (h) the tax provided in sections 77-27,223 to 77-27,227 -25- LB1114 LB1114 2026 beginning in the second fiscal year in which the county will receive a full year of receipts, and (i) any excess tax collections returned to the county under section 77-1776.

(b) For municipalities, state aid to municipalities paid pursuant to -71- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 sections 39-2501 to 39-2520, 60-3,190, and 77-27,139.04 and insurance premium tax paid to municipalities;

13-2202 For purposes of the Local Government Miscellaneous -72- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 Expenditure Act:

(3) Local government shall mean cities of any class, villages, cemetery districts, community hospitals for two or more adjoining counties, county hospitals, road improvement districts, counties, townships, sanitary drainage districts, community improvement districts, sanitary and improvement districts, school districts, rural or suburban fire protection districts, reclamation districts, natural resources districts, regional metropolitan transit authorities, hospital districts, county health departments, district health departments, city-county health departments, educational service units, community colleges, airport authorities, weed control authorities, county agricultural -73- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 societies, and learning communities;

(2) Governing body has the same meaning as in section 13-503 and, when -26- LB1114 LB1114 2026 referring to state agencies, includes the governing board of a state agency or the Governor and, when referring to federal agencies, includes the governing board of a federal agency or the President of the United States;

(5) Public agency means any county, city, village, school district, -74- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 or agency of the state government or of the United States, any drainage district, community improvement district, sanitary and improvement district, or other municipal corporation or political subdivision of this state, and any political subdivision of another state;

(2) Any city and one or more counties in which a city of the -75- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 metropolitan class, city of the primary class, or city of the first class is located, or in which the extraterritorial zoning jurisdiction of such city is located, which encompass an area greater than three hundred acres eligible to be designated as an inland port district may enter into an agreement pursuant to the Interlocal Cooperation Act to propose joint creation of an inland port authority, subject to the cap on the total number of inland port districts provided in subsection (4) of this section.

(3) Any county with a population greater than fifteen twenty thousand inhabitants according to the most recent federal census or the most recent revised certified count by the United States Bureau of the Census which encompasses an area greater than three hundred acres eligible to be designated as an inland port district may propose to create an inland port authority by resolution, subject to the cap on the -76- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 total number of inland port districts provided in subsection (4) of this section.

(c) The strategic location of the proposed inland port district in proximity to existing and potential transportation infrastructure that is conducive to facilitating regional, national, and international trade and the -27- LB1114 LB1114 2026 businesses and facilities that promote and complement such trade;

Upon receipt of such ordinance, resolution, or agreement and application, the department shall evaluate the proposed inland port authority to determine whether the proposal meets the criteria in subsection (1), (2), or (3) of this section, whichever is applicable, as -77- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 well as any prioritization criteria developed by the department.

Section 13-3309, Reissue Revised Statutes of Nebraska, is amended to read:

13-3309 No inland port authority shall be required to pay any taxes or any assessments whatsoever to the State of Nebraska or to any political subdivision of the state, except for assessments under the Nebraska Workers' Compensation Act and any combined tax due or payments in lieu of contributions as required under the Employment Security Law.

The bonds issued under the Municipal Inland Port Authority Act, the interest thereon, the proceeds received by a holder from the sale of such bonds to the extent of the holder's cost of acquisition, or proceeds received upon redemption prior to maturity, proceeds received at maturity, and the receipt of such interest and proceeds of every inland port authority and the income therefrom shall, at all times, be exempt from any taxes and any assessments, except for inheritance and gift taxes and taxes on transfers.

Any real or personal property subject to a lease agreement of an inland port authority, whether the authority is lessee or lessor, shall be exempt from property taxation pursuant to section 77-202.

Sec.

75.

(5) To adopt all such measures as may be deemed necessary for the accommodation and protection of strangers and the traveling public in -78- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 person and property;

(11) To regulate, license, or prohibit the running at large of dogs and other animals within the city as well as in areas within the extraterritorial -28- LB1114 LB1114 2026 zoning jurisdiction of the city;

(13) To provide for the planting and protection of shade or -79- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 ornamental and useful trees upon streets or boulevards;

to provide for the impounding of all animals running at large, herded, or -80- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 driven contrary to such prohibition and regulations;

(24) To prohibit, restrain, and suppress houses of prostitution, opium joints, gambling houses, prize fighting, dog fighting, cock -81- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 fighting, and other disorderly houses and practices, all games and gambling, and all kinds of indecencies;

to -29- LB1114 LB1114 2026 provide for the recovery, collection, and enforcement of such fines;

(28) To erect, designate, establish, maintain, and regulate -82- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 hospitals, houses of correction, jails, station houses, fire engine houses, asphalt repair plants, and other necessary buildings;

(30) To prohibit the establishment of additional cemeteries within -83- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 the limits of the city;

to prescribe and regulate the construction and arrangement of fire escapes and the placing of iron and metallic shutters and doors in or on such fire -84- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 escapes;

to prevent the disposing of and delivery or use in any building or other structure of -30- LB1114 LB1114 2026 unsuitable building material within the city limits and provide for the inspection of building materials;

Such expense shall constitute a lien upon any real estate -85- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 belonging to such company and lying within such city and may be collected in the same manner as taxes for general purposes;

to employ by contract or otherwise individuals -86- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 singularly or collectively;

(40) To regulate any housing agency in a city of the metropolitan class, whichwith mayrespect include:to:

(a) Providing for code enforcement and pest control for all properties owned and controlled by such housing agency;

(b) Providing for regularcomplaint-based inspections of all properties managed by such housing agency;

Such update shall include complaint information on pest control issues and any mitigation efforts completed by the housing agency.

75.76.

-87- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 18-2102 It is hereby found and declared that there exist in cities of all classes and villages of this state areas which have deteriorated and become substandard and blighted because of the unsafe, insanitary, inadequate, or overcrowded condition of the dwellings therein, or because of inadequate planning of the area, or excessive land coverage by the buildings thereon, or the lack of proper light and air and open space, or because of the defective design and arrangement of the buildings thereon, or faulty street or lot -31- LB1114 LB1114 2026 layout, or congested traffic conditions, or economically or socially undesirable land uses, or the lack of affordable housing in the area, or the existence of underdeveloped parcels that have been within the extraterritorial zoning jurisdiction of the city for more than twenty-five years.

Such conditions or a combination of some or all of them have resulted and will continue to result in making such areas economic or social liabilities harmful to the social and economic well-well-being being of the entire communities in which they exist, needlessly increasing public expenditures, imposing onerous municipal burdens, decreasing the tax base, reducing tax revenue, substantially impairing or arresting the sound growth of municipalities, aggravating traffic problems, substantially impairing or arresting the elimination of traffic hazards and the improvement of traffic facilities, and depreciating general community-wide values.

The elimination of such conditions and the acquisition and -88- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 preparation of land in or necessary to the renewal of substandard and blighted areas and its sale or lease for development or redevelopment in accordance with general plans and redevelopment plans of communities and any assistance which may be given by any state public body in connection therewith are public uses and purposes for which public money may be expended and private property acquired.

76.77.

18-2103 For purposes of the Community Development Law, unless the -89- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 context otherwise requires:

(1) Affordable housing means (a) workforce housing, (b) housing targeted for households earning less than one hundred fifty percent of the median income for the county in which such housing is located, or (c) housing under section 42 of the Internal Revenue Code;

(4) Blighted area means an area (a) which, by reason of the presence of a substantial number of deteriorated or deteriorating structures, existence of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, improper subdivision, obsolete or no platting, or the existence of conditions which endanger life or property by fire and other causes, or the existence of underdeveloped parcels that have been within the extraterritorial zoning jurisdiction of the city for more than twenty-twenty-five five years, or any combination of such factors, substantially impairs or arrests the sound growth of the community, retards the provision of housing accommodations, or constitutes an economic or social liability and is detrimental to the public health, safety, morals, or welfare in its present condition and use and (b) in which there is at least one of the following conditions:

(i) Unemployment in the designated area is at -90- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 least one hundred twenty percent of the state or national average;

(iii) more than half of the plotted and -32- LB1114 LB1114 2026 subdivided property in an area is unimproved land that has been within the city for forty years and has remained unimproved during that time;

(9) Community redevelopment area means a substandard and blighted -91- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 area which the community redevelopment authority designates as appropriate for a redevelopment project;

This subdivision (b) shall only apply if the governing body determines that the federal data described in -92- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 subdivision (14)(a) of this section is unreliable or lacking for the area in question;

-93- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (24) Public body means the state or any municipality, county, township, board, commission, authority, district, or other political subdivision or -33- LB1114 LB1114 2026 public body of the state;

(b) to clear any such areas by demolition or removal of existing buildings, structures, streets, utilities, or other improvements thereon and to install, construct, or reconstruct streets, utilities, -94- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 parks, playgrounds, public spaces, public parking facilities, sidewalks or moving sidewalks, convention and civic centers, bus stop shelters, lighting, benches or other similar furniture, trash receptacles, shelters, skywalks and pedestrian and vehicular overpasses and underpasses, enhancements to structures in the redevelopment plan area which exceed minimum building and design standards in the community and prevent the recurrence of substandard and blighted conditions, and any other necessary public improvements essential to the preparation of sites for uses in accordance with a redevelopment plan;

and (h) to carry out the development of underdeveloped parcels that have been within the -95- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 extraterritorial zoning jurisdiction of the city for more than twenty-twenty-five five years;

(c) Owner-occupied housing units that cost not more than two hundred -34- LB1114 LB1114 2026 seventy-five thousand dollars to construct or rental housing units that cost not more than two hundred thousand dollars per unit to construct.

For purposes of this subdivision (c), housing unit costs shall be updated -96- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 annually by the Department of Economic Development based upon the most recent increase or decrease in the Producer Price Index for all commodities, published by the United States Department of Labor, Bureau of Labor Statistics;

77.78.

78.79.

-97- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 Sec.

79.80.

18-2123.01 (1)18-2123.01 (1) Notwithstanding any other provisions of the Community Development Law to the contrary, a city may undertake a redevelopment project that includes real property located outside the corporate limits of such city and outside the city's extraterritorial zoning jurisdiction if the following requirements have been met:

or -98- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (b) Any change in the service area of any communications company as defined in section 77-2734.04 unless (i) such change has been agreed to by the communications company serving the formerly used defense site at the time of approval of such redevelopment project or (ii) such change occurs pursuant to sections 86-135 to 86-138.

80.81.

When there is not a redevelopment project valuation on a parcel or parcels, the county -35- LB1114 LB1114 2026 assessor shall determine the redevelopment project valuation based upon the fair market valuation of the parcel or parcels as of January 1 of the year prior to the year that the ad valorem taxes are to be divided.

The authority or owner may protest the valuation to the county board of equalization within thirty days after -99- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 the date of the valuation notice.

-100- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (2) To the extent that a redevelopment plan authorizes the division of ad valorem taxes levied upon only a portion of the real property included in such redevelopment plan, any improvements funded by such division of taxes shall be related to the redevelopment plan that authorized such division of taxes.

(4)(a) For any redevelopment plan for which more than fifty percent of the property in the redevelopment project area has been declared an extremely blighted area in accordance with section 18-2101.02, ad valorem -101- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 taxes shall be divided for a period not to exceed twenty years after the effective date as identified in the project redevelopment contract or in the resolution of the authority authorizing the issuance of bonds pursuant to section 18-2124.

Failure to satisfy the notice requirement of this section shall result in the taxes, for -36- LB1114 LB1114 2026 all taxable years affected by the failure to give notice of the effective date of the provision, remaining undivided and being paid into the funds for each public body receiving property taxes generated by the property in the redevelopment project.

-102- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 Sec.

81.82.

or (iii) Ten million dollars for a redevelopment project involving the -103- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 revitalization of a structure included in the National Register of Historic Places.

-104- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (i) The redevelopment plan does not meet the requirements of subsection (2) of this section;

(a) The authority shall incur indebtedness related to the redevelopment project which shall not exceed the lesser of the agreed-agreed-upon upon costs of the redevelopment project or the amount estimated to be generated over a fifteen-yearfifteen- year period from the portion of taxes mentioned in subdivision (1)(b) of section 18-2147.

Such indebtedness shall not create a general obligation on behalf of the authority or the city in the event that the amount generated over -37- LB1114 LB1114 2026 a fifteen-year period from the portion of taxes mentioned in subdivision (1)(b) of section 18-2147 does not equal the costs of the agreed-upon work to repair, rehabilitate, or replace the structure or to redevelop the vacant platted lot or nonconforming lot of record as provided in the redevelopment plan;

-105- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (7) After the county assessor makes the determinations required under subdivision (6)(c) of this section, the county assessor shall use a standard certification form developed by the Department of Revenue to certify to the authority:

82.83.

Section 18-2705, Reissue Revised Statutes of Nebraska, is -106- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 amended to read:

(a) Construction or rehabilitation for sale or lease of housing (i) for persons of low or moderate income, (ii) as part of a workforce -107- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 housing plan, or (iii) as part of an affordable housing action plan, including any such plan required under section 19-5505;

83.84.

Section 18-2709, Revised Statutes Supplement, 2025, is amended to -38- LB1114 LB1114 2026 read:

-108- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (c) A business that derives its principal source of income from retail trade.

84.85.

31-735 (1) On the first Tuesday after the second Monday in September -109- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 which is at least fifteen months after the judgment of the district court creating a sanitary and improvement district and on the first Tuesday after the second Monday in September each two years thereafter, the board of trustees shall cause a special election to be held, at which election a board of trustees shall be elected.

The name of a person may be written in and voted for as a candidate -110- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 for the office of trustee, and such write-in candidate may be elected to the office of trustee.

A write-in candidate for the office of trustee who will serve as a designated representative of a limited partnership, a general partnership, a limited liability company, a public, private, or municipal corporation, an estate, or a trust which owns real estate in the district shall not be elected to the office of trustee unless (a) each vote is accompanied by the name of the entity which the candidate will represent and (b) within ten days after the -39- LB1114 LB1114 2026 date of the election the candidate provides the election commissioner or county clerk with appropriate documentation evidencing the candidate's representation of the entity.

At the first election and at the election held two years after the first election, any person may cast one vote for each trustee for each acre of unplatted land or fraction thereof and one vote for each -111- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 platted lot which such person may own in the district.

(b) This subdivision applies to a district until the board of trustees amends its articles of association pursuant to subdivision (2)(2)(d) (d) of this section.

If more than fifty percent of the homes in any sanitary and improvement -112- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 district are used as a second, seasonal, or recreational residence, the owners of such property shall be considered legal property owners resident within such district for purposes of electing trustees.

(d) For any sanitary and improvement district which has been in existence for at least ten years, which has less than seventy property owners entitled to vote for trustees, which has at least two resident property owners, and in which less than ten percent of the area of the district is owned for other than residential uses, the board of trustees may amend its articles of association as provided in section 31-740.01 to provide for a reduction in the number of trustees on the board from five -113- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 members to three members to be effective at the beginning of the term of office for the board of trustees elected at the next election.

At the next election and at each election thereafter, two members of -40- LB1114 LB1114 2026 the board of trustees shall be elected by the legal property owners resident within such sanitary and improvement district and one member shall be elected by all of the owners of real estate located in the district pursuant to this section.

If the ballot is not -114- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 returned in the return envelope, such ballot shall not be counted.

85.86.

86.87.

87.88.

32-40432-404 (1) (1) When any political subdivision holds an election in conjunction with the statewide primary or general election, the election shall be held as provided in the Election Act.

Any other election held by a political subdivision shall be held as provided in the act unless otherwise provided by the charter, code, or bylaws of the political -115- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 subdivision.

(5) Each city, village, township, school district, public power district, community improvement district, sanitary and improvement district, metropolitan utilities district, fire protection district, natural resources district, regional metropolitan transit authority, community college area, learning community coordinating council, -116- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 educational service unit, hospital district, -41- LB1114 LB1114 2026 reclamation district, library board, and airport authority shall furnish to the Secretary of State and election commissioner or county clerk any maps and additional information which the Secretary of State and election commissioner or county clerk may require in the proper performance of their duties in the conduct of elections and certification of results.

88.89.

(a) For the office of United States Senator, state officers, including members of the Legislature, Representatives in Congress, county officers, and city or village officers, except the mayor or council -117- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 members of cities having a home rule charter, a sum equal to one percent of the annual salary as of November 30 of the year preceding the election for the office for which he or she files as a candidate;

Available resources shall include every type of property or interest in property that an individual owns -118- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 and may convert into cash except:

89.90.

(2) The charge for each primary and general election shall be determined by (a) ascertaining the total cost of all chargeable costs as described in section 32-1202, (b) dividing the total cost by the number of precincts -42- LB1114 LB1114 2026 participating in the election to fix the cost per precinct, (c) prorating the cost per precinct by the inked ballot inch in each precinct for each political subdivision, and (d) totaling the cost for each precinct for each political subdivision, except that the minimum charge for each primary and general election for each political -119- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 subdivision shall be one hundred dollars.

90.91.

Only registered voters of such member's precinct, district, or subdistrict may -120- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 sign a recall petition or vote at the recall election.

91.92.

71-1572 Sections 71-1572 to 71-15,170 and section 9394 of this act shall be known and may be cited as the Nebraska Housing Agency Act.

92.93.

(2) The complaint form, whether completed by the complainant online, in-person,in- person, or by a housing agency employee answering a telephone call complaint, shall include the following information:

(c) The nature of the complaint, including, but not limited to, -121- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 whether a maintenance issue, a discrimination claim, or a rent dispute;

The notice shall include (a) a summary of the investigation findings, (b) the -43- LB1114 LB1114 2026 action taken to address the complaint, (c) any remedies or compensation provided, (d) information on how to file a complaint with the political subdivision responsible for code enforcement, if applicable, and (e) information about the city's complaint process if the complainant is not satisfied with the resolution of the complaint.

(9) A complainant who is dissatisfied with the resolution of his or -122- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 her complaint may bring an action against the agency under the terms of his or her lease agreement.

93.94.

A housing agency for a city of the metropolitan class shall submit a report everyannually six months to such city of the metropolitan class and to the Urban Affairs Committee of the Legislature.

(1) Information regarding any pest control management activities undertaken during the six-monthyear period covered by the report;

(2) The number of eviction filings during the six-monthyear period covered by the report;

(3) The numbernumber, nature, and natureresolution of complaints or grievances filed during the six-monthyear period covered by the reportreport; and their resolutions;

(4) Current vacancyoccupancy rates;

and (5) Any relevant updates from meetings of the agency's board of -123- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 commissioners.

94.95.

Section 77-202, Revised Statutes Supplement, 2025, is amended to read:

77-202 (1) The following property shall be exempt from property taxes:

(a) Property of the state and its governmental subdivisions to the extent used or being developed for use by the state or governmental subdivision for a public purpose.

For purposes of this subdivision:

(i) Property of the state and its governmental subdivisions means (A) property held in fee title by the state or a governmental subdivision or (B) property beneficially owned by the state or a governmental subdivision in that it is used for a public purpose and is being acquired under a lease-purchase agreement, financing lease, or other instrument which provides for transfer of legal title to the property to the state or a governmental subdivision upon payment of all amounts due thereunder.

If the property to be beneficially owned by a governmental subdivision has a total acquisition cost that exceeds the threshold amount or will be used as the site of a public building with a total estimated construction cost that exceeds the threshold amount, then such property shall qualify for an exemption under this section only if the question of acquiring such property or constructing such public building has been submitted at a primary, general, or special election held within the governmental subdivision and has been approved by the voters of the governmental subdivision.

For purposes of this subdivision, threshold amount means the greater of fifty thousand dollars or six-tenths of one percent of the total actual value of real and personal property of the governmental subdivision that will beneficially own the property as of the end of the governmental subdivision's prior fiscal year;

and (ii) Public purpose means use of the property (A) to provide public services with or without cost to the recipient, including the general operation of government, public education, public safety, transportation, public works, civil and criminal justice, public health and welfare, developments by a public housing authority, improvements by an inland port authority, parks, culture, recreation, community development, and cemetery purposes, or (B) to carry out the duties and responsibilities conferred by law with or without consideration.

Public purpose does not include leasing of property to a private party unless the lease of the property is at fair market value for a public purpose.

Leases of property by a public housing authority to low-income individuals as a place of residence are for the authority's public purpose.

Lease agreements of real or personal property by an inland port authority, whether the inland port authority is lessee or lessor, are for the authority's public purpose;

(b) Unleased property of the state or its governmental subdivisions which is not being used or developed for use for a public purpose but upon which a payment in lieu of taxes is paid for public safety, rescue, and emergency services and road or street construction or maintenance services to all governmental units providing such services to the property.

Except as provided in Article VIII, section 11, of the Constitution of Nebraska, the payment in lieu of taxes shall be based on the proportionate share of the cost of providing public safety, rescue, or emergency services and road or street construction or maintenance services unless a general policy is adopted by the governing body of the governmental subdivision providing such services which -44- LB1114 LB1114 2026 provides for a different method of determining the amount of the payment in lieu of taxes.

The governing body may adopt a general policy by ordinance or resolution for determining the amount of payment in lieu of taxes by majority vote after a hearing on the ordinance or resolution.

Such ordinance or resolution shall nevertheless result in an equitable contribution for the cost of providing such services to the exempt property;

(c) Property owned by and used exclusively for agricultural and horticultural societies;

(d)(i) Property owned by educational, religious, charitable, or cemetery organizations, or any organization for the exclusive benefit of any such educational, religious, charitable, or cemetery organization, and used exclusively for educational, religious, charitable, or cemetery purposes, when such property is not (A) owned or used for financial gain or profit to either the owner or user, (B) used for the sale of alcoholic liquors for more than twenty hours per week, or (C) owned or used by an organization which discriminates in membership or employment based on race, color, or national origin.

(ii) For purposes of subdivision (1)(d) of this section:

(A) Educational organization means (I) an institution operated exclusively for the purpose of offering regular courses with systematic instruction in academic, vocational, or technical subjects or assisting students through services relating to the origination, processing, or guarantying of federally reinsured student loans for higher education, (II) a museum or historical society operated exclusively for the benefit and education of the public, or (III) a nonprofit organization that owns or operates a child care facility;

and (B) Charitable organization includes (I) an organization operated exclusively for the purpose of the mental, social, or physical benefit of the public or an indefinite number of persons and (II) a fraternal benefit society organized and licensed under sections 44-1072 to 44-10,109.

(iii) The property tax exemption authorized in subdivision (1)(d)(i) of this section shall apply to any for-profit skilled nursing facility, for-profit nursing facility, or for-profit assisted-living facility that provides housing for medicaid beneficiaries, except that the exemption amount for such property shall be a percentage of the property taxes that would otherwise be due.

Such percentage shall be equal to the average percentage of occupied beds in the facility provided to medicaid beneficiaries over the most recent three-year period.

This subdivision shall not be construed to modify, limit, or reduce any property tax exemption provided to a nonprofit skilled nursing facility, nonprofit nursing facility, or nonprofit assisted-living facility pursuant to subdivision (1)(d)(i) of this section.

For purposes of this subdivision, skilled nursing facility has the same meaning as in section 71-429, nursing facility has the same meaning as in section 71-424, and assisted-living facility has the same meaning as in section 71-5903.

(iv) The property tax exemption authorized in subdivision (1)(d)(i) of this section shall apply to a building that (A) is owned by a charitable organization, (B) is made available to students in attendance at an educational institution, and (C) is recognized by such educational institution as approved student housing, except that the exemption shall only apply to the commons area of such building, including any common rooms and cooking and eating facilities;

(e) Household goods and personal effects not owned or used for financial gain or profit to either the owner or user;

and (f) A portion of the property owned by a taxpayer as provided in the Recreational Trail Easement Property Tax Exemption Act.

(2) The increased value of land by reason of shade and ornamental trees planted along the highway shall not be taken into account in the valuation of land.

(3) Tangible personal property which is not depreciable tangible personal property as defined in section 77-119 shall be exempt from property tax.

(4) Motor vehicles, trailers, and semitrailers required to be registered for operation on the highways of this state shall be exempt from payment of property taxes.

(5) Business and agricultural inventory shall be exempt from the personal property tax.

For purposes of this subsection, business inventory includes personal property owned for purposes of leasing or renting such property to others for financial gain only if the personal property is of a type which in the ordinary course of business is leased or rented thirty days or less and may be returned at the option of the lessee or renter at any time and the personal property is of a type which would be considered household goods or personal effects if owned by an individual.

All other personal property owned for purposes of leasing or renting such property to others for financial gain shall not be considered business inventory.

(6) Any personal property exempt pursuant to subsection (2) of section 77-4105 or section 77-5209.02 shall be exempt from the personal property tax.

(7) Livestock shall be exempt from the personal property tax.

(8) Any personal property exempt pursuant to the Nebraska Advantage Act or the ImagiNE Nebraska Act shall be exempt from the personal property tax.

(9) Any depreciable tangible personal property used directly in the generation of electricity using wind as the fuel source shall be exempt from the property tax levied on depreciable tangible personal property.

Any depreciable tangible personal property used directly in the generation of electricity using solar, biomass, or landfill gas as the fuel source shall be exempt from the property tax levied on depreciable tangible personal property if such depreciable tangible personal property was installed on or after -45- LB1114 LB1114 2026 January 1, 2016, and has a nameplate capacity of one hundred kilowatts or more.

Depreciable tangible personal property used directly in the generation of electricity using wind, solar, biomass, or landfill gas as the fuel source includes, but is not limited to, wind turbines, rotors and blades, towers, solar panels, trackers, generating equipment, transmission components, substations, supporting structures or racks, inverters, and other system components such as wiring, control systems, switchgears, and generator step-up transformers.

(10) Any tangible personal property that is acquired by a person operating a data center located in this state, that is assembled, engineered, processed, fabricated, manufactured into, attached to, or incorporated into other tangible personal property, both in component form or that of an assembled product, for the purpose of subsequent use at a physical location outside this state by the person operating a data center shall be exempt from the personal property tax.

Such exemption extends to keeping, retaining, or exercising any right or power over tangible personal property in this state for the purpose of subsequently transporting it outside this state for use thereafter outside this state.

For purposes of this subsection, data center means computers, supporting equipment, and other organized assembly of hardware or software that are designed to centralize the storage, management, or dissemination of data and information, environmentally controlled structures or facilities or interrelated structures or facilities that provide the infrastructure for housing the equipment, such as raised flooring, electricity supply, communication and data lines, Internet access, cooling, security, and fire suppression, and any building housing the foregoing.

(11) For tax years prior to tax year 2020, each person who owns property required to be reported to the county assessor under section 77-1201 shall be allowed an exemption amount as provided in the Personal Property Tax Relief Act.

For tax years prior to tax year 2020, each person who owns property required to be valued by the state as provided in section 77-601, 77-682, 77-801, or 77-1248 shall be allowed a compensating exemption factor as provided in the Personal Property Tax Relief Act.

(12)(a) Broadband equipment shall be exempt from the personal property tax if such broadband equipment is:

(i) Deployed in an area funded in whole or in part by funds from the Broadband Equity, Access, and Deployment Program, authorized by the federal Infrastructure Investment and Jobs Act, Public Law 117-58;

or (ii) Deployed in a qualified census tract located within the corporate limits of a city of the metropolitan class and being utilized to provide end- users with access to the Internet at speeds of at least one hundred megabits per second for downloading and at least one hundred megabits per second for uploading.

(b) An owner of broadband equipment seeking an exemption under this section shall apply for an exemption to the county assessor on or before December 31 of the year preceding the year for which the exemption is to begin.

If the broadband equipment meets the criteria described in this subsection, the county assessor shall approve the application within thirty calendar days after receiving the application.

The application shall be on forms prescribed by the Tax Commissioner.

(c) For purposes of this subsection:

(i) Broadband communications service means telecommunications service as defined in section 86-121, video programming as defined in 47 U.S.C.

522, as such section existed on January 1, 2024, or Internet access as defined in section 1104 of the federal Internet Tax Freedom Act, Public Law 105-277;

(ii) Broadband equipment means machinery or equipment used to provide broadband communications service and includes, but is not limited to, wires, cables, fiber, conduits, antennas, poles, switches, routers, amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers, transmitters, circuit cards, insulating and protective materials and cases, power equipment, backup power equipment, diagnostic equipment, storage devices, modems, and other general central office or headend equipment, such as channel cards, frames, and cabinets, or equipment used in successor technologies, including items used to monitor, test, maintain, enable, or facilitate qualifying equipment, machinery, software, ancillary components, appurtenances, accessories, or other infrastructure that is used in whole or in part to provide broadband communications service.

Machinery or equipment used to produce broadband communications service does not include personal consumer electronics, including, but not limited to, smartphones, computers, and tablets;

and (iii) Qualified census tract means a qualified census tract as defined in U.S.C.

42(d)(5)(B)(ii)(I), as such section existed on January 1, 2024.

Sec.

96.

Such statement shall clearly indicate, for each political subdivision, the amount of property taxes due to fund any and all public safety services as defined in section 13-320, county attorneys, and public defenders, regardless of whether such amount is -46- LB1114 LB1114 2026 taken as an exception to the political subdivision's property tax request authority under section 13-3404.

In any county -124- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 in which a city of the metropolitan class is located, all statements of taxes shall also include notice that special assessments for cutting weeds, removing litter, and demolishing buildings are due.

95.97.

77-1838 (1)77-1838 (1) The deed made by the county treasurer shall be under the official seal of office and acknowledged by the county treasurer before some officer authorized to take the acknowledgment of deeds.

When recorded it shall vest in the grantee and his or her heirs and assigns the title of the property described in the deed, subject to any lien on real estate for special assessments levied by a community improvement district or a sanitary and -125- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 improvement district which special assessments have not been previously offered for sale by the county treasurer.

96.98.

(3) that the real property conveyed had not been redeemed from -126- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 the sale at the date of the deed;

and (10) that all the prerequisites of the law were complied with by all the officers who had or whose duty it was to have had any part or action in any transaction relating to or affecting the -47- LB1114 LB1114 2026 title conveyed or purporting to be conveyed by the deed, from the listing and valuation of the property up to the execution of the deed, both inclusive, and that all things whatsoever required by law to make a good and valid sale and to vest the title in the purchaser, subject to any lien on real estate for special assessments levied by a community improvement district or a sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, were done.

97.99.

77-1858 Wherever power is now given by the revenue laws of this state to the county treasurer of any county in this state to sell real estate, on which the taxes have not been paid as provided by law, it shall include the power to sell the real estate for (1) all the taxes and special assessments, except special assessments levied by a community improvement district organized under the Community Improvement District Act or a sanitary and improvement district organized under sections 31-727 to 31-762, levied or hereafter levied by any county, municipality, drainage district, or other political subdivision of the state and (2) all special assessments levied or hereafter levied by any community improvement district or sanitary and improvement district if such sale is -127- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 requested by such community improvement district or sanitary and improvement district which levied the special assessment.

98.100.

99.101.

77-1902 (1) When land has been sold for delinquent taxes and a tax sale certificate or tax deed has been issued, the holder of such tax sale certificate or tax deed may, instead of demanding a deed or, if a deed has been issued, by surrendering the same in court, proceed in the district court of the county in which the land is situated to foreclose the lien for taxes represented by the tax sale certificate or tax deed and all subsequent tax liens thereon, excluding any lien on real estate for special assessments levied by any community improvement district or sanitary and improvement district which special assessments have not been -128- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 previously offered for sale by the county treasurer, in the same manner and with like effect as in the foreclosure of a real estate mortgage, except as otherwise specifically provided by sections 77-1903 to 77-1917.

-129- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (F) The property has been stripped of copper or other materials or interior fixtures to the property have been removed;

(G) There have not been any recent efforts made to restore the property to -48- LB1114 LB1114 2026 productive use;

(d) If the holder of the tax sale certificate or tax deed determines -130- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 real estate to be vacant and abandoned pursuant to this subsection, the holder shall submit an affidavit to the county treasurer affirming that the real estate is vacant and abandoned.

100.102.

101.103.

102.104.

Section 77-1915, Reissue Revised Statutes of Nebraska, is -131- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 amended to read:

103.105.

The proceeds of the sale of one item of real property shall not be applied to the discharge of a lien for taxes -49- LB1114 LB1114 2026 against another item of real property except when so directed by the decree for foreclosure under the circumstances set forth in -132- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 section 77-1910.

104.106.

105.107.

Section 77-3442, Revised Statutes Supplement, 2025, is -133- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 amended to read:

77-3442 (1)77-3442 (1) Property tax levies for the support of local governments for fiscal years beginning on or after July 1, 1998, shall be limited to the amounts set forth in this section except as provided in section 77-3444.

(d) Excluded from the limitations in subdivisions (2)(a) and (2)(c) of this section are (i) amounts levied to pay for current and future sums agreed to be paid by a school district to certificated employees in exchange for a voluntary termination of employment occurring prior to September 1, 2017, (ii) amounts levied by a school district otherwise at the maximum levy pursuant to subdivision (2)(a) of this section to pay for current and future qualified voluntary termination incentives for certificated teachers pursuant to subsection (3) of section 79-8,142 that -134- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 are not otherwise included in an exclusion pursuant to subdivision (2)(d) of this section, (iii) amounts levied by a school district otherwise at the maximum levy pursuant to subdivision (2)(a)(2) (a) of this section to pay for seventy-five percent of the current and future sums agreed to be paid to certificated employees in exchange for a voluntary termination of employment occurring between September 1, 2017, and August 31, 2018, as a result of a collective-bargaining agreement in force and effect on September 1, 2017, that are not otherwise included in an exclusion pursuant to subdivision (2)(d) of this section, (iv) amounts levied by a school district otherwise at the maximum levy pursuant to subdivision (2)(2)(a) (a) of this section to pay for fifty percent of the current and future sums agreed to be paid to certificated employees in exchange for a voluntary termination of employment occurring between September 1, 2018, and August 31, 2019, as a result of a collective-bargaining agreement in force and effect on September 1, 2017, that are not otherwise included in an exclusion pursuant to subdivision (2)(d) of this section, (v) amounts levied by a school district otherwise at the maximum levy pursuant to subdivision (2)(a) of this section to pay for twenty-five percent of the current and future sums agreed to be paid to certificated employees in exchange for a voluntary termination of employment occurring between September 1, 2019, and August 31, 2020, as a result of a collective- bargaining agreement in force and effect on September 1, 2017, that are not otherwise included in an exclusion pursuant to subdivision (2)(d) of this section, (vi) amounts levied in compliance with sections 79-10,110 and 79-10,110.02, and (vii) amounts levied to pay for special building funds and sinking funds established for projects commenced prior to April 1, 1996, for construction, expansion, or alteration of school district buildings.

For -50- LB1114 LB1114 2026 purposes of this subsection, commenced means any action taken by the school board on the record which commits the board to expend district funds in planning, constructing, or carrying out the project.

(e) Federal aid school districts may exceed the maximum levy -135- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 prescribed by subdivision (2)(a) or (2)(c) of this section only to the extent necessary to qualify to receive federal aid pursuant to Title VIII of Public Law 103-382, as such title existed on September 1, 2001.

For fiscal year 2024-25 and each fiscal year thereafter, community college areas may levy the levies provided in subdivisions (2)(2)(a) (a) and (b) of section 85-1517, in accordance with the provisions of such subdivisions.

A -136- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 community college area may exceed the levy provided in subdivision (2)(b) of section 85-1517 by the amount necessary to retire general obligation bonds assumed by the community college area or issued pursuant to section 85-1515 according to the terms of such bonds or for any obligation pursuant to section 85-1535 entered into prior to January 1, 1997.

-137- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 (5) Any educational service unit authorized to levy a property tax pursuant to section 79-1225 may levy a maximum levy of one and one-half cents per one hundred dollars of taxable valuation of property subject to the levy.

The maximum levy shall include amounts paid to a municipal county for county services, amounts levied to pay for sums to support a library pursuant to section 51-201, a museum pursuant to section 51-501, a visiting community nurse, home health nurse, or home health agency pursuant to section 71-1637, or a statue, -51- LB1114 LB1114 2026 memorial, or monument pursuant to section 80-202.

(7) Sanitary and improvement districts which have been in existence -138- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 for more than five years may levy a maximum levy of forty cents per one hundred dollars of taxable valuation of property subject to the levy, and sanitary and improvement districts which have been in existence for five years or less shall not have a maximum levy.

Unconsolidated sanitary and improvement districts which have been in existence for more than five years and are located in a municipal county may levy a maximum of eighty-eighty-five five cents per hundred dollars of taxable valuation of property subject to the levy.

If an allocation by a county would cause another county to exceed its levy authority under this section, the second county -139- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 may exceed the levy authority in order to levy the amount allocated.

(12) Property tax levies (a) for judgments, except judgments or orders from the Commission of Industrial Relations, obtained against a political subdivision which require or obligate a political subdivision to pay such judgment, to the extent such judgment is not paid by liability insurance coverage of a political subdivision, (b) for preexisting lease-purchase contracts approved prior to July 1, 1998, (c) for bonds as defined in section 10-134 approved according to law and secured by a levy on property except as provided in section 44-4317 for -140- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 bonded indebtedness issued by educational service units and school districts, (d) for payments by a public airport to retire interest-free loans from the Division of Aeronautics of the Department of Transportation in lieu of bonded indebtedness at a lower cost to the public airport, and (e) to pay for cancer benefits provided on or after January 1, 2022, pursuant to the Firefighter Cancer Benefits Act are not included in the levy limits established by this section.

(16) For school districts that file a binding resolution on or before May 9, 2008, with the county assessors, county clerks, and county treasurers for all counties in which the school district has territory pursuant to subsection -52- LB1114 LB1114 2026 (7) of section 79-458, if the combined levies, except levies for bonded indebtedness approved by the voters of the school district and levies for the refinancing of such bonded indebtedness, are in excess of the greater of (a) one dollar and twenty cents per one hundred dollars of taxable valuation of property subject to the levy or (b) the maximum levy authorized by a vote pursuant to section 77-3444, all school district levies, except levies for bonded indebtedness approved by the voters of the school district and levies for the refinancing of such bonded indebtedness, shall be considered unauthorized levies under section 77-1606.

-141- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 Sec.

106.108.

Unless a transit authority elects to convert to a regional metropolitan transit authority in accordance with the Regional Metropolitan Transit Authority Act, and for each fiscal year of such a transit authority until the first fiscal year commencing after -142- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 the effective date of such conversion, the county board of a county or the council of a municipal county which contains a transit authority established pursuant to the Transit Authority Law shall allocate no less than three cents per one hundred dollars of taxable property within the city or municipal county subject to the levy to the transit authority if requested by such authority.

(2) All city airport authorities established under the Cities Airport Authorities Act, community redevelopment authorities established under the Community Development Law, transit authorities established under the Transit Authority Law unless and until the first fiscal year commencing after the effective date of any conversion by such a transit authority into a regional metropolitan transit authority pursuant to the Regional Metropolitan Transit Authority Act, and offstreet parking districts established under the Offstreet Parking District Act may be allocated property taxes as authorized by law which are authorized by the city, village, or municipal county and are counted in the city or village levy limit or municipal county levy limit provided by section 77-3442, except that such limitation shall not apply to property tax levies for preexisting lease-purchase contracts approved prior to July 1, 1998, for bonded indebtedness approved according to law and secured by a levy on property, and for payments by a public airport to retire interest-free loans from the Division of Aeronautics of the Department of Transportation in lieu of bonded indebtedness at a lower cost to the -143- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 public airport.

The city council, village board, or council may approve all or a portion of the levy request and -53- LB1114 LB1114 2026 may approve a levy request that would allow a levy greater than that permitted by law.

The failure of a political subdivision to make a preliminary request shall preclude such political subdivision from using procedures set forth in section 77-3444 to exceed the final levy allocation as determined in -144- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 subsection (4) of this section.

107.109.

Sections Sections 73,109 74,to 75,116 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 91, 92, 93, and 109 of this act becomeshall operativebe threeknown calendarand monthsmay afterbe cited as the adjournmentNew ofTaxpayer thisRecruitment legislativeGrant session.Act.

Sec.

110.

 For purposes of the New Taxpayer Recruitment Grant Act:

(1) Department means the Department of Economic Development;

(2) Household means one or more individuals who dwell together;

and (3) Household goal means the total number of households that a new taxpayer recruitment program seeks to successfully incentivize to relocate or commit to relocate from a location that is outside of this state to a municipality in this state.

Sec.

111.

 (1)(a) Beginning on July 15 of each fiscal year any (i) city or Indian tribe or band in the State of Nebraska or (ii) nonprofit organization, the primary purpose of which includes economic development, workforce and talent development, or community development, may apply to the department for a grant under the New Taxpayer Recruitment Grant Act for such fiscal year.

(b) Such application shall be on a form prescribed by the department that includes:

(i) The name of the grant applicant;

(ii) The name, title, email address, mailing address, and telephone number for an individual who will serve as the point of contact for the grant applicant for the department;

and (iii) A new taxpayer recruitment program plan that includes the following:

(A) The total estimated cost of the program and the itemized estimated costs associated with the program's design, administration, marketing, and relocation incentive initiatives;

(B) A description of the program implementation roles undertaken and related costs of the grant applicant or other entities;

(C) The program's household goal and the estimated incentive amount per household;

(D) The program's estimated state and local tax impact;

and (E) The program's estimated total economic impact.

(2) Each fiscal year, the department shall award grants under the New Taxpayer Recruitment Grant Act to grant applicants with approved applications for the purpose of the administration of new taxpayer recruitment programs of such grant applicants and the costs associated with incentivizing households to relocate from locations that are outside of this state to municipalities in this state.

(3) To qualify for a grant under the New Taxpayer Recruitment Grant Act, a grant applicant shall:

(a) Demonstrate such grant applicant's ability to contribute funding equal to at least twenty percent of the total cost of the new taxpayer recruitment program and a description of anticipated funding sources.

The grant applicant's contribution may include local funds or in-kind donations pursuant to section of this act;

and (b) If the grant applicant is a previous recipient of a grant under the New Taxpayer Recruitment Grant Act, submit evidence that the grant applicant has met the household goal stated in the new taxpayer recruitment program plan that was submitted with the application for such previous grant.

(4) The department shall consider applications in the order in which they are received.

If a grant applicant qualifies for a grant, the department shall approve the application and notify the grant applicant of the approval within thirty days of receiving the application.

(5) The department may approve applications and award grants under the New Taxpayer Recruitment Grant Act subject to available funding in the New Taxpayer Recruitment Grant Cash Fund.

(6) Any grant applicant shall not receive more than two hundred fifty thousand dollars in grants under the New Taxpayer Recruitment Grant Act in a fiscal year.

(7) The department shall disburse fifty percent of a grant to the grant applicant when the grant is initially awarded and fifty percent of the grant upon the grant applicant reporting to the department that it has successfully met half of the household goal stated in the new taxpayer recruitment program -54- LB1114 LB1114 2026 plan.

If the grant applicant fails to meet half of such goal, the department shall not disburse the remaining amount of the grant and such remaining amount shall be reawarded to other grant applicants with approved applications.

Sec.

112.

To be eligible for incentives from new taxpayer recruitment programs funded by grants under the New Taxpayer Recruitment Grant Act, a household shall submit an application to a grant recipient for the new taxpayer recruitment program of such grant recipient that includes:

(1) The name, date of birth, email address, telephone number, and last four digits of the social security number for an individual who will serve as the primary point of contact for the household;

(2) The name, date of birth, and relationship to the primary point of contact for all members of the household;

(3) The mailing address for the primary place of residence for the household.

Such address shall be outside of the State of Nebraska at the time the household applies for new taxpayer recruitment program incentives;

(4) Records deemed sufficient by the grant recipient to demonstrate proof of employment and income for each employed individual in the household and a brief job description for each employed individual.

Such records shall demonstrate a household annual income of at least fifty-five thousand dollars to be eligible for new taxpayer recruitment program incentives;

and (5) Whether any members of the household are veterans.

Sec.

113.

(1) Each grant recipient shall provide semiannual reports to the department with the following data regarding new taxpayer recruitment program outcomes:

(a) Total number of applications received from households;

(b) Total number of approved applications for incentives;

(c) The incentive provided to each approved household;

(d) The annual income and occupation of each individual from an approved household;

and (e) The estimated economic impact of the new taxpayer recruitment program, including state and local tax revenue and new consumer spending.

(2) Each household that receives an incentive from a new taxpayer recruitment program funded by a grant under the New Taxpayer Recruitment Grant Act shall provide the grant recipient that provided an incentive to such household with the information that is reasonably necessary to complete the semiannual reports required under this section.

Grant recipients may rely in good faith on such household information for purposes of completing semiannual reports.

Sec.

114.

Unless otherwise prohibited by law, any grant applicant may utilize any resource available to it for the local funds or in-kind donations required in subdivision (3) of section 111 of this act, including, but not limited to:

(1) Any resource collected and disbursed pursuant to the Local Option Municipal Economic Development Act;

(2) Any federal funding;

(3) Any donation or contribution of private funding;

and (4) The estimated market value of any donated good or service from any public or private source.

Sec.

115.

The New Taxpayer Recruitment Grant Cash Fund is created.

The department shall administer the fund and use the fund to finance grants for new taxpayer recruitment programs under the New Taxpayer Recruitment Grant Act.

The fund shall consist of money transferred by the Legislature, and gifts, grants, and bequests from any source, including federal, public, and private sources.

Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Sec.

116.

The department may adopt and promulgate rules and regulations to carry out the New Taxpayer Recruitment Grant Act.

Sec.

117.

Sections 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 92, 93, 94, 95, 109, 110, 111, 112, 113, 114, 115, 116, 119 of this act become operative three calendar months after the adjournment of this legislative session.

108.118.

109.119.

Original sections 13-3309, 18-2108, 18-2123, 18-2123.01, 18-2705, and 31-741, Reissue Revised Statutes of Nebraska, sections 13-3304, 14-102, 18-2155, 31-735, 71-1572, and 71-15,169, Revised Statutes Cumulative Supplement, 2024, and sections 18-2102, 18-2103, 18-2147, 18-2709, and 18-2709,77-202, Revised Statutes Supplement, 2025, are repealed.

110.120.

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On page 1, strike beginning with "the" in line 1 through line 4 and insert "property;

to amend sections 10-127, 10-131, 10-133, 10-134, -145- ER160 ER160 LB1114 LB1114 LPB - 03/26/2026 LPB - 03/26/2026 10-615, 10-1103, 10-1203, 13-402, 13-503, 13-803, 13-2503, 18-2108, 18-2123, 18-2123.01, 18-2705, 31-741, 32-1302, 77-1842, 77-1858, 77-1901, 77-1914, 77-1915, 77-1916, and 77-1917.01, Reissue Revised Statutes of Nebraska, sections 13-2202, 13-3304, 14-102, 18-2155, 31-735, 32-112.02, 32-404, 32-608, 32-1203, 71-1572, 77-15,169, and 77-3443, Revised Statutes Cumulative Supplement, 2024, and sections 13-518, 18-2102, 18-2103, 18-2147, 18-2709, 77-1701, 77-1838, 77-1902, 77-1909, and 77-3442, Revised Statutes Supplement, 2025;

to adopt the Community Improvement District Act;

to provide powers and duties relating to community improvement districts and trustees of community improvement districts;

to define and redefine terms;

to increase the number of inland port districts that may be created under the Municipal Inland Port Authority Act;

to provide powers to cities of the metropolitan class to regulate housing authorities by ordinance;

to change provisions relating to legislative findings, change and eliminate provisions relating to the acquisition of real property, land outside the corporate limits of cities, the effective date for the division of taxes, and certain redevelopment plans receiving an expedited review under the Community Development Law;

to authorize the use of economic development programs for certain construction or rehabilitation of housing under the Local Option Municipal Economic Development Act;

to change provisions relating to the election of the board of trustees and contract bidding requirements for sanitary improvement districts;

to change provisions and provide duties for certain housing agencies relating to pest control under the Nebraska Housing Agency Act;

to authorize community improvement districts to levy a property tax as prescribed;

to harmonize provisions;

to provide operative dates;

to repeal the original sections;

and to declare an emergency.".

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