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NebraskaLB289109th Legislature 1st and 2nd SessionslegislatureWALLET

Change provisions relating to cities, villages, and boards of adjustment and redefine qualifying business under the Local Option Municipal Economic Development Act

Sponsored By: Urban Affairs Committee

Signed by Governor

Urban Affairs Committee

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Broader small business aid with retail caps

The law expands which businesses can get local economic development help. In first- and second-class cities and in villages, housing construction or rehab and early childhood care now qualify. Retail businesses qualify too, but a city may use at most 40% of program money for retail in any 12 months and 20% in any five years, starting when the program is approved. In cities with 5,000 people or fewer (based on the most recent federal census or certified count), a business can qualify even if its main income is outside the listed activities. A qualifying business does not have to be inside city limits to get help. If a business operates in more than one Nebraska city, it must keep jobs in each city at or above its 12‑month average for two years after joining. Government bodies are not qualifying businesses, except that first‑ or second‑class cities and villages may aid rural infrastructure projects when state law allows.

New village election and zoning rules

The law sets who can be a village: 100 to 800 people, counted by the most recent federal census or certified count, and including annexed areas. A county cannot incorporate a new village if any part is within five miles of another incorporated municipality. Voters can choose a three‑ or five‑member village board at a statewide general election; a petition needs at least 5% of registered voters from the last statewide general election and must be filed at least 70 days before, or the board may place the question by majority vote 70 days before. Trustee terms are staggered: for five‑member boards, two seats are two years and three are four years; for three‑member boards, one seat is two years and two are four years. The top two vote‑getters get the four‑year seats, and terms start at the first regular meeting in December after the statewide general election. A first‑ or second‑class city council or a village board may, by ordinance, act as the board of adjustment, and decisions need a two‑thirds vote under state rules.

Sponsors & Cosponsors

Sponsor

  • Urban Affairs Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 157 • No: 0

legislature vote • 4/24/2026

Vote

Yes: 35 • No: 0 • Other: 14

legislature vote • 3/13/2025

Final Reading

Yes: 47 • No: 0 • Other: 2

legislature vote • 2/28/2025

Vote

Yes: 35 • No: 0 • Other: 14

legislature vote • 2/11/2025

Vote

Yes: 40 • No: 0 • Other: 9

Actions Timeline

  1. Approved by Governor on March 17, 2025

    3/17/2025legislature

  2. Dispensing of reading at large approved

    3/13/2025legislature

  3. Passed on Final Reading 47-0-2

    3/13/2025legislature

  4. President/Speaker signed

    3/13/2025legislature

  5. Presented to Governor on March 13, 2025

    3/13/2025legislature

  6. Placed on Final Reading

    3/6/2025legislature

  7. Enrollment and Review ER12 adopted

    2/28/2025legislature

  8. McKinney AM309 adopted

    2/28/2025legislature

  9. Advanced to Enrollment and Review for Engrossment

    2/28/2025legislature

  10. McKinney AM309 filed

    2/24/2025legislature

  11. Placed on Select File with ER12

    2/19/2025legislature

  12. Enrollment and Review ER12 filed

    2/19/2025legislature

  13. Advanced to Enrollment and Review Initial

    2/11/2025legislature

  14. Placed on General File

    2/6/2025legislature

  15. Notice of hearing for January 28, 2025

    1/21/2025legislature

  16. Referred to Urban Affairs Committee

    1/17/2025legislature

  17. Date of introduction

    1/15/2025legislature

Bill Text

  • Introduced

    3/17/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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