NebraskaLB1135109th Legislature 1st and 2nd SessionslegislatureWALLET

Adopt the Service Contract Reporting Act, authorize municipalities to contract regarding parking facilities, change provisions of the Community Development Law, the Nebraska Municipal Land Bank Act, and the Property Assessed Clean Energy Act, and provide for the sale of certain waterworks, sewer systems, and water systems to Indian tribes

Sponsored By: Urban Affairs Committee

Signed by Governor

Urban Affairs Committee

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Bill Overview

Analyzed Economic Effects

17 provisions identified: 1 benefits, 2 costs, 14 mixed.

More TIF funds for affordable housing

In metropolitan cities, some off‑site homes for people below area median income count as part of a redevelopment plan. That includes homes within 600 yards of a streetcar, or qualifying single‑family or condo homes. The city and authority make best efforts each year to use at least 30% of these funds for qualifying single‑family homes. Their allocation plan must favor projects that help the lowest‑income people for the longest time.

Tax‑like liens in redevelopment projects

If your property is in a redevelopment project with divided taxes, the authority can make agreements that limit assessment challenges or back bond payments. If the agreement creates a property tax lien, it is treated like property taxes, has priority over other liens, and is enforced the same way.

PACE liens on rentals and commercial

For non‑single‑family properties, a delinquent PACE assessment becomes a lien. The city must record it within 14 days and certify the amount to the county treasurer. With a recorded consent and subordination agreement, the lien has the same priority as property taxes. On any sale or foreclosure, PACE assessments run with the property and bind the new owner.

New PACE rules for homeowners

For single-family homes, a PACE assessment becomes a lien when the first annual charge is imposed. The city records the lien and must include key details. The lien ranks behind any earlier liens and behind a first mortgage, but ahead of later liens. In foreclosure, delinquent PACE amounts are wiped out if sale money is not enough; non‑delinquent charges stay with the property. Your servicer can raise your escrow payment to cover PACE charges if you escrow taxes or insurance. When all amounts are paid, the city must record a lien release.

Longer blight labels and public studies

An “extremely blighted” area label lasts at least 25 years from the city’s resolution, unless removed earlier by law. Before declaring an area extremely blighted, the city must post the supporting studies online or make them available for public inspection.

New TIF timelines and tax‑division rules

A redevelopment authority can pledge up to 100% of annual excess tax revenue to pay conduit revenue bonds. Tax‑division is time‑limited: up to 20 years if over half the area is extremely blighted, or 15 years for other plans, starting on the plan’s effective date. A tax‑division does not start until the property is inside the city limits, except for certain defense‑site projects. Authorities must notify the county assessor by July 1 of the effective year using prescribed forms, or else taxes remain undivided and go to each public body.

Cities can outsource parking and tickets

Cities and villages can hire private firms or other governments to run parking and issue tickets. The city must keep final say on ticket appeals. The city must also set and approve parking rates, charges, and fines, and keep enough control to protect the public. Contracts can last up to 30 years for first-class cities and up to 10 years for second-class cities or villages, including renewals.

Old land bank laws repealed

The law repeals several older municipal land bank statutes, including section 13‑3206 and other listed sections. The updated rules in this act replace or change those repealed provisions.

Protections and removal for land bank boards

Board members are not personally liable for a land bank’s debts. Members can be removed for neglect, misconduct, or a felony with a two‑thirds governing vote. The member gets written charges and has 10 days to request a hearing. After the hearing, the governing body decides whether removal stands.

Public contract reports and state‑aid penalty

Starting March 1, 2028, cities, counties, and state agencies must file annual service‑contract reports. The state compiles and posts a statewide report each April 1. If a city or county fails to file, the State Treasurer suspends all state aid to that local government until it submits the report.

Voter-approved city water sales to tribes

A city of the primary, first, or second class, or a village, can sell or transfer its waterworks, sewer system, or water system to an Indian tribe. The system must be located or operating entirely within that tribe’s lands. The tribe’s headquarters must be in the same city or village. Voters in the city or village must approve the sale at a general or special election. For this law, an Indian tribe is one recognized by federal law or formally acknowledged by the state as of January 1, 2026.

Caps on land bank property holdings

Land banks can acquire property and must maintain it under local laws. They cannot own property outside the creating cities’ official boundaries. A land bank may hold only a set share of city parcels: metropolitan 7% (with up to 10% of those commercial), primary 3% (5% commercial), first class 5% (5% commercial), second class or village 10% (5% commercial). Land banks cannot take a commercial‑zoned parcel unless it has been vacant three years or the owner ignored a nuisance order.

How land bank boards act

Land bank boards pick officers each year and hold regular meetings. Vacancies must be filled within six months in the same way as the original appointment. A majority present is a quorum, and most actions need a majority vote of members present. Adopting bylaws, hiring or firing, incurring debt, changing the budget, and deals over $50,000 require a majority of all voting members, or higher if a city sets it.

Land bank powers and public reporting

Land banks can adopt bylaws, borrow from lenders or governments, enter contracts, and offer foreclosure counseling and re‑housing help. They cannot issue negotiable revenue bonds on or after November 14, 2020. Meetings must follow the Open Meetings Act and records are public. Boards must report after meetings or quarterly and file an electronic annual report by March 1 with detailed holdings, large payments, banks used, parcel share, and conflict‑of‑interest certification.

Limits on automatic land bank bids

Certain metropolitan land banks must adopt written policies, approved by two‑thirds of voting members, for automatic bids. Automatic bids are limited to badly deteriorated or abandoned parcels, adjoining parcels, parcels already owned by the land bank, or parcels approved by a two‑thirds vote as in the community’s best interest.

Rules for land bank leases and sales

Land banks can sell, transfer, or lease property. Leases are generally capped at 12 months unless a longer lease already existed or a qualifying agreement applies. Starting November 14, 2020, holding property longer than one year for a nonprofit or private group requires a community benefits agreement. Cities may set priority uses for land bank property. For residential development parcels, the land bank must advertise the sale for 90 days after acquisition.

Who can form city land banks

Only metropolitan or primary class cities can create a land bank alone. Two or more cities can form or join a shared land bank by agreement. A single‑city land bank must have seven voting members, appointed by the chief executive and confirmed by a two‑thirds vote. Multi‑city land banks must have an odd number of at least seven voting members, meet residency rules, and include members from each creating city when required. Boards must include specified expertise and sector representation, and one person may cover multiple needs.

Sponsors & Cosponsors

Sponsor

  • Urban Affairs Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 631 • No: 8

legislature vote 4/24/2026

Vote

Yes: 42 • No: 1 • Other: 6

legislature vote 4/24/2026

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote 4/24/2026

Vote

Yes: 37 • No: 0 • Other: 12

legislature vote 4/24/2026

Vote

Yes: 36 • No: 0 • Other: 13

legislature vote 4/24/2026

Vote

Yes: 32 • No: 1 • Other: 16

legislature vote 4/24/2026

Vote

Yes: 38 • No: 1 • Other: 10

legislature vote 4/24/2026

Vote

Yes: 42 • No: 0 • Other: 7

legislature vote 4/10/2026

Final Reading

Yes: 48 • No: 1

legislature vote 4/1/2026

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote 4/1/2026

Vote

Yes: 38 • No: 1 • Other: 10

legislature vote 4/1/2026

Vote

Yes: 36 • No: 0 • Other: 13

legislature vote 4/1/2026

Vote

Yes: 37 • No: 0 • Other: 12

legislature vote 4/1/2026

Vote

Yes: 32 • No: 1 • Other: 16

legislature vote 3/17/2026

Vote

Yes: 42 • No: 1 • Other: 6

legislature vote 3/17/2026

Vote

Yes: 43 • No: 1 • Other: 5

legislature vote 3/17/2026

Vote

Yes: 42 • No: 0 • Other: 7

Actions Timeline

  1. Presented to Governor on April 10, 2026

    4/17/2026legislature
  2. Approved by Governor on April 14, 2026

    4/17/2026legislature
  3. Dispensing of reading at large approved

    4/10/2026legislature
  4. Passed on Final Reading with Emergency Clause 48-1-0

    4/10/2026legislature
  5. President/Speaker signed

    4/10/2026legislature
  6. Placed on Final Reading with ST84

    4/7/2026legislature
  7. Enrollment and Review ST84 filed

    4/7/2026legislature
  8. Enrollment and Review ST84 recorded

    4/7/2026legislature
  9. Enrollment and Review ER153 adopted

    4/1/2026legislature
  10. Kauth FA795 withdrawn

    4/1/2026legislature
  11. Dover FA1148 to AM2821 filed

    4/1/2026legislature
  12. Dover FA1148 adopted

    4/1/2026legislature
  13. Dover AM2821 adopted

    4/1/2026legislature
  14. McKinney AM2925 withdrawn

    4/1/2026legislature
  15. Spivey AM2872 not germane

    4/1/2026legislature
  16. Motion to overrule Chair withdrawn

    4/1/2026legislature
  17. McKinney AM2862 adopted

    4/1/2026legislature
  18. McKinney AM2993 adopted

    4/1/2026legislature
  19. Guereca AM3059 filed

    4/1/2026legislature
  20. Guereca AM3059 adopted

    4/1/2026legislature
  21. Advanced to Enrollment and Review for Engrossment

    4/1/2026legislature
  22. McKinney AM2993 filed

    3/31/2026legislature
  23. McKinney AM2925 filed

    3/25/2026legislature
  24. McKinney AM2862 filed

    3/25/2026legislature
  25. Placed on Select File with ER153

    3/25/2026legislature

Bill Text

  • Introduced

    4/17/2026

  • Enrolled / Slip Law

  • Final / Enacted

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