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LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1374
Introduced by Linehan, 39.
Read first time January 17, 2024
Committee: Revenue
1 A BILL FOR AN ACT relating to economic development; to amend sections
2 13-520 and 18-2103, Reissue Revised Statutes of Nebraska, and
3 section 77-4405, Revised Statutes Supplement, 2023; to adopt the
4 Good Life District Economic Development Act; to change provisions
5 relating to restricted funds limitations; to redefine a term under
6 the Community Development Law; to change the Good Life
7 Transformational Projects Act as prescribed; to harmonize
8 provisions; to provide severability; to repeal the original
9 sections; and to declare an emergency.
10 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Sections 1 to 23 of this act shall be known and may be
2 cited as the Good Life District Economic Development Act.
3 Sec. 2. The Legislature finds that:
4 (1) There is a high degree of competition among states and
5 municipalities in our nation in their efforts to provide incentives for
6 businesses to expand or to locate in their respective jurisdictions; and
7 (2) Municipalities in Nebraska are unable to effectively assist the
8 development within good life districts formed pursuant to the Good Life
9 Transformational Projects Act because of their inability under Nebraska
10 law to raise sufficient capital to replace the state sales tax which is
11 reduced when a good life district is established. Without an efficient
12 replacement of such sales tax with local sources of revenue, development
13 within good life districts will fall short of reaching the full potential
14 intended by the Legislature when it enacted the Good Life
15 Transformational Projects Act, resulting in lower sales tax revenues for
16 the state. To prevent such diminished revenues for the state and to
17 promote local economic development where good life districts exist, local
18 sources of revenue must be established which are tailored to meet the
19 needs of the local community and benefit the state, if the voters in the
20 municipality determine that it is in the best interest of their community
21 to do so.
22 Sec. 3. For purposes of the Good Life District Economic Development
23 Act, unless the context otherwise requires:
24 (1) City means any city of the metropolitan class, city of the
25 primary class, city of the first class, city of the second class, or
26 village, including any city operated under a home rule charter;
27 (2) Bond has the same meaning as in section 10-134;
28 (3) Election means any general election, primary election, or
29 special election called by the city as provided by law;
30 (4) Eligible costs means payment and reimbursement of (a) the costs
31 of acquisition, construction, improvement, rehabilitation, renewal,
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1 replacement, repair, and maintenance of privately and publicly owned real
2 estate, buildings, improvements, fixtures, equipment, and other physical
3 assets within a good life district, (b) the costs of construction and
4 acquisition of publicly owned infrastructure and publicly owned property
5 rights within or related to a good life district, (c) the costs of
6 development, acquisition, maintenance, and enhancement of technology
7 assets to include hardware, software, and related intellectual property,
8 if the initial exclusive use of such property is in or related to the
9 good life district program area, and (d) city costs related to
10 implementing, operating, and funding a good life district economic
11 development program;
12 (5) Good life district means any good life district established
13 pursuant to the Good Life Transformational Projects Act;
14 (6) Good life district applicant means the person who applied for
15 the applicable good life district, which was approved by the Department
16 of Economic Development pursuant to section 77-4405;
17 (7) Good life district economic development program or program means
18 a program established pursuant to the Good Life District Economic
19 Development Act to utilize funds derived from local sources of revenue
20 for the purpose of paying eligible costs, and for paying principal of and
21 interest on bonds issued pursuant to the act;
22 (8) Good life district program area means the area established
23 pursuant to section 5 of this act for a good life district economic
24 development program;
25 (9) Governing body means the city council, board of trustees, or
26 other legislative body charged with governing the city;
27 (10) Local sources of revenue means the sources of revenue
28 established for a good life district economic development program
29 pursuant to section 6 of this act, and any revenue generated from grants,
30 donations, or state and federal funds received by the city for such good
31 life district economic development program subject to any restrictions of
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1 the grantor, donor, or state or federal law; and
2 (11) Qualifying business means any corporation, nonprofit
3 corporation, partnership, limited liability company, or sole
4 proprietorship which owns or leases property or operates its business
5 within a good life district program area, or plans to own or lease
6 property or operate its business within a good life district program
7 area. The good life district applicant shall be deemed a qualifying
8 business pursuant to this subdivision. Qualifying business shall also
9 include a political subdivision, a state agency, or any other
10 governmental entity which includes any portion of the good life district
11 program area within its territorial boundaries.
12 Sec. 4. (1) The authority of a city to establish a good life
13 district economic development program and to appropriate local sources of
14 revenue to such program is subject to approval by a vote of a majority of
15 the registered voters of the city voting upon the question.
16 (2) The question may be submitted to the voters at a special
17 election or such question may be voted on at an election held in
18 conjunction with the statewide primary or statewide general election. The
19 question may be submitted to the voters before or after any application
20 is submitted to establish a good life district pursuant to the Good Life
21 Transformational Projects Act.
22 (3) A city shall order submission of the question to the registered
23 voters by resolution. The resolution shall contain the entire wording of
24 the ballot question, which shall state the question as follows: "Shall
25 the [city or village] of [name of the city or village] be authorized to
26 establish a good life district economic development program for any area
27 within the [city or village] which is included in a good life district
28 established pursuant to the Good Life Transformational Projects Act, and
29 shall the [city or village] be authorized to appropriate the local
30 sources of revenue collected within such good life district program area,
31 which may include local option sales and use taxes and occupation taxes,
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1 established pursuant to and as permitted by the Good Life District
2 Economic Development Act?"
3 (4) The city shall file a copy of the resolution calling the
4 election with the election commissioner or county clerk not later than
5 the eighth Friday prior to a special election or a municipal primary or
6 general election which is not held at the statewide primary or general
7 election, or not later than March 1 prior to a statewide primary election
8 or September 1 prior to a statewide general election. The election shall
9 be conducted in accordance with the Election Act.
10 (5) If a majority of those voting on the issue vote in favor of the
11 question, the governing body may establish and implement a good life
12 district economic development program upon the terms contained in the
13 Good Life District Economic Development Act. If a majority of those
14 voting on the issue vote against the question, the governing body shall
15 not establish or implement any good life district economic development
16 program. When the question of establishing a good life district economic
17 development program is defeated at an election, resubmission of the
18 question and an election on the question shall not be held until at least
19 five months have passed from and after the date of such election.
20 Sec. 5. (1) Upon approval by the voters, the governing body of the
21 city may establish a good life district economic development program for
22 any area within the city which is included in a good life district
23 established pursuant to the Good Life Transformational Projects Act, and
24 the city shall appropriate the local sources of revenue established in
25 the good life district program area and pledged for such program.
26 (2) A good life district economic development program shall be
27 established by ordinance, which shall include the following provisions:
28 (a) The boundaries of the good life district program area, which
29 shall be coterminous with the portion of the applicable good life
30 district as established pursuant to section 77-4405 which is located
31 within the city. Such boundaries of the program area may be expanded to
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1 include any area annexed by the city which is also included within such
2 established good life district;
3 (b) A description of the local sources of revenue which shall be
4 established for the program pursuant to section 6 of this act, and a
5 pledge to appropriate such revenues to the program for the time period
6 during which such funds are collected;
7 (c) The time period within which the funds from local sources of
8 revenue are to be collected within the good life district program area,
9 and the time period during which the good life district economic
10 development program will be in existence;
11 (d) The manner in which a qualifying business will be required to
12 submit an application for assistance under the good life district
13 economic development program, including the type of information that will
14 be required from the business, the process that will be used to verify
15 the information, and the types of business information provided to the
16 city which will be kept confidential by the city, and the types of
17 agreements which will be permitted with qualifying businesses for
18 development of property within the good life district program area. No
19 additional business information shall be required from a qualifying
20 business that is the good life district applicant. The Department of
21 Economic Development shall provide a copy of the application, approval,
22 and all related documentation establishing the related good life district
23 to the city upon approval by the Department of Economic Development;
24 (e) Such restrictions on qualifying businesses, limitations on types
25 of eligible costs, and limitations on the amounts of eligible costs as
26 the city determines are in the best interests of the city and the good
27 life district economic development program. Such limitations and
28 restrictions shall include provisions intended to ensure (i) sufficient
29 infrastructure will be available to serve the program area and
30 expectations as to how such infrastructure will be constructed and
31 funded, (ii) sufficient capital investment in buildings and facilities to
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1 generate enough local sources of revenue to sustain the program, and
2 (iii) substantially all of the eligible costs will be used for the
3 benefit of the program area; and
4 (f) A description of the administrative system that will be
5 established by the city to administer the good life district economic
6 development program, including a description of any personnel structure
7 and the duties and responsibilities of the personnel involved.
8 (3) All information provided with an application for assistance
9 under any good life district economic development program to the city by
10 a qualifying business shall be kept confidential by the city to the
11 extent required by the terms of the ordinance establishing the good life
12 district economic development program. The city may approve or deny any
13 application for assistance in the discretion of the city, subject to the
14 terms of any contract or agreement with a qualifying business related to
15 such program.
16 (4) Provided that the city enters into an exclusive contract with an
17 applicant approved by the Department of Economic Development for
18 development in an approved good life district, the city may enter into
19 contracts and agreements with qualifying businesses related to assistance
20 under the good life district economic development program, development of
21 property within the applicable good life district program area, use of
22 property within the good life district program area, and other agreements
23 related to the good life district economic development program or good
24 life district program area, which contracts and agreements may extend
25 over multiple years and include such undertakings and designation of
26 responsibilities as the city determines appropriate or convenient for
27 development, use, and operation of the good life district economic
28 development program and the properties in the good life district program
29 area.
30 (5) In connection with administration of a good life district
31 economic development program, a city may engage professionals,
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1 consultants, and other third parties to assist and provide such services
2 to the city as determined appropriate by the city. All costs of
3 administration of the program which are charged to the program by the
4 city shall be paid from the associated good life district economic
5 development fund prior to payment of any other eligible costs or bonds
6 which may be payable from the fund.
7 (6) Each good life district economic development program shall
8 remain in effect until thirty years after the date the associated good
9 life district was established or until the program is terminated by the
10 city pursuant to subsection (7) of this section, whichever occurs first.
11 If more than one good life district is established within a city, a
12 separate good life district economic development program shall be
13 established for each such good life district.
14 (7) The governing body of a city may, at any time after the adoption
15 of the ordinance establishing the good life district economic development
16 program by a two-thirds vote of the members of the governing body, amend
17 or repeal the ordinance in its entirety, subject only to the provisions
18 of any outstanding bonds or existing contracts relating to such progra