All Roll Calls
Yes: 140 • No: 0
NebraskaLB123109th Legislature 1st and 2nd SessionslegislatureWALLET
Change provisions relating to withholding money due to noncompliance with budget limits, property tax request authority, and annual audits for certain political subdivisions
Sponsored By: Rita Sanders
Signed by Governor
Government, Military and Veterans Affairs Committee
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Residents can force city audits
If your city or village has not completed its annual audit six months after the fiscal year ends, a resident taxpayer can demand an audit within 30 days. If the council ignores the demand, the resident can file a mandamus lawsuit to compel the audit. If the resident wins, city or village officials are personally, jointly, and severally liable for court costs and a reasonable attorney fee.
Funds withheld for late city audits
If a city or village fails to file its annual audit after notice and a hearing, the State Treasurer withholds its distributions under sections 39-2511 to 39-2520. Money stays withheld until the audit is filed. If no audit is filed within six months of the delinquency notice, the money goes to other cities and villages in the county. If the failure lasts 12 months, the city or village loses the right to those distributions until it files the audit; eligibility resumes from the date of compliance.
State aid stops for budget and tax-limit violations
Local governments must follow budget limits and file property tax request forms by September 30, 2025, and every September 30 after. The Auditor prepares the budget limit calculation, and each unit must file that number with its budget. If the Auditor finds missing forms or a violation and notifies the State Treasurer, state aid to that government is suspended for six months. If it fixes the issue in six months, the money is released. If not, the funds are forfeited and sent to other local recipients in the county; if none, back to the Highway Allocation Fund; homestead reimbursements return to the General Fund. Forfeiture continues until compliance, and after 12 months the unit is ineligible for future state aid until it complies.
Sponsors & Cosponsors
Sponsor
Rita Sanders
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 29 • No: 0 • Other: 20
legislature vote • 3/20/2025
Final Reading
Yes: 45 • No: 0 • Other: 4
legislature vote • 3/11/2025
Vote
Yes: 29 • No: 0 • Other: 20
legislature vote • 2/21/2025
Vote
Yes: 37 • No: 0 • Other: 12
Actions Timeline
Approved by Governor on March 25, 2025
3/26/2025legislaturePassed on Final Reading 45-0-4
3/20/2025legislaturePresident/Speaker signed
3/20/2025legislaturePresented to Governor on March 20, 2025
3/20/2025legislaturePlaced on Final Reading with ST11
3/17/2025legislatureEnrollment and Review ST11 filed
3/17/2025legislatureEnrollment and Review ST11 recorded
3/17/2025legislatureSanders AM407 adopted
3/11/2025legislatureAdvanced to Enrollment and Review for Engrossment
3/11/2025legislatureSanders AM407 filed
2/27/2025legislaturePlaced on Select File
2/26/2025legislatureAdvanced to Enrollment and Review Initial
2/21/2025legislaturePlaced on General File
2/7/2025legislatureNotice of hearing for January 29, 2025
1/22/2025legislatureReferred to Government, Military and Veterans Affairs Committee
1/14/2025legislatureDate of introduction
1/10/2025legislature
Bill Text
Introduced
3/26/2025
Enrolled / Slip Law
Final / Enacted