LB1317 LB1317
2024 2024
LEGISLATIVE BILL 1317
Approved by the Governor April 23, 2024
Introduced by Linehan, 39.
A BILL FOR AN ACT relating to law; to amend sections 2-1207, 9-810, 9-1104,
13-520, 18-1208, 18-2103, 44-314, 60-301, 60-302, 60-3,191, 66-4,105,
70-1002.02, 77-101, 77-106, 77-1333, 77-1359, 77-2704.66, 77-3002,
77-3003, 77-5005, 77-5017, and 77-5018, Reissue Revised Statutes of
Nebraska, sections 43-512.12, 66-482, 77-202, 77-202.01, 77-202.03,
77-3011, 77-5601, and 77-6831, Revised Statutes Cumulative Supplement,
2022, and sections 9-1110, 13-3102, 13-3103, 13-3104, 13-3108, 70-1001.01,
77-2015, 77-2701, 77-2701.02, 77-2701.04, 77-2716, 77-4405, 77-4406,
85-2601, 85-2602, 85-2603, 85-2603.01, and 85-2605, Revised Statutes Supplement, 2023; to adopt the Good Life District Economic Development Act, the Financial Institution Data Match Act, and the Gambling Winnings Setoff for Outstanding Debt Act; to require certain actions relating to
underutilized tax-exempt property and certain parimutuel, lottery, gaming,
and gambling winnings; to redefine a term under the Community Development Law; to change provisions and define and redefine terms relating to health insurance coverage for first responders and dependents; to change provisions and define terms under the Motor Vehicle Registration Act; to change provisions and define and redefine terms relating to motor fuel taxation; to change and provide provisions relating to electric energy,
electric suppliers, and electric and hybrid motor vehicles and charging stations; to change provisions relating to occupation taxes and property taxation; to restate legislative findings and change provisions relating to rent-restricted housing projects; to state legislative findings, define terms, and provide provisions relating to sales-restricted houses; to change provisions relating to inheritance taxes; to change provisions relating to the Nebraska Revenue Act of 1967, the Good Life Transformational Projects Act, the Sports Arena Facility Financing Assistance Act, the Tax Equalization and Review Commission Act, and the First Responder Recruitment and Retention Act; to provide and change sales and use tax rates, exemptions, and incentives; to state intent relating to
appropriations for nitrate sensors; to harmonize provisions; to provide operative dates; to provide severability; to repeal the original sections;
and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Sections 1 to 23 of this act shall be known and may be cited as the Good Life District Economic Development Act.
Sec. 2. The Legislature finds that:
(1) There is a high degree of competition among states and municipalities in our nation in their efforts to provide incentives for businesses to expand or to locate in their respective jurisdictions; and
(2) Municipalities in Nebraska are unable to effectively assist the development within good life districts formed pursuant to the Good Life Transformational Projects Act because of their inability under Nebraska law to
raise sufficient capital to replace the state sales tax which is reduced when a good life district is established. Without an efficient replacement of such sales tax with local sources of revenue, development within good life districts will fall short of reaching the full potential intended by the Legislature when it enacted the Good Life Transformational Projects Act, resulting in lower sales tax revenues for the state. To prevent such diminished revenues for the state and to promote local economic development where good life districts exist, local sources of revenue must be established which are tailored to meet the needs of the local community and benefit the state, if the voters in the municipality determine that it is in the best interest of their community to do so.
Sec. 3. For purposes of the Good Life District Economic Development Act,
unless the context otherwise requires:
(1) City means any city of the metropolitan class, city of the primary class, city of the first class, city of the second class, or village, including any city operated under a home rule charter;
(2) Bond has the same meaning as in section 10-134;
(3) Election means any general election, primary election, or special election called by the city as provided by law;
(4) Eligible costs means payment and reimbursement of (a) the costs of
acquisition, planning, engineering, designing, financing, construction,
improvement, rehabilitation, renewal, replacement, repair, landscaping,
irrigation, and maintenance of privately and publicly owned real estate,
buildings, improvements, fixtures, equipment, and other physical assets within
a good life district and debt service on such real estate, buildings,
improvements, fixtures, equipment, and other physical assets, (b) the costs of
construction and acquisition of publicly owned infrastructure and publicly owned property rights within or related to a good life district, (c) the costs of development, acquisition, maintenance, and enhancement of technology assets
-1-
LB1317 LB1317
2024 2024
to include hardware, software, and related intellectual property, if the initial exclusive use of such property is in or related to the good life district program area, (d) the costs of marketing, tenant improvement allowances, and tenant and customer acquisition and retention, and (e) city costs related to implementing, operating, and funding a good life district economic development program;
(5) Good life district means any good life district established pursuant to the Good Life Transformational Projects Act;
(6) Good life district applicant means the person who applied for the applicable good life district, which was approved by the Department of Economic Development pursuant to section 77-4405;
(7) Good life district economic development program or program means a program established pursuant to the Good Life District Economic Development Act to utilize funds derived from local sources of revenue for the purpose of
paying eligible costs, and for paying principal of and interest on bonds issued pursuant to the act;
(8) Good life district program area means the area established pursuant to
section 5 of this act for a good life district economic development program;
(9) Governing body means the city council, board of trustees, or other legislative body charged with governing the city;
(10) Local sources of revenue means the sources of revenue established for
a good life district economic development program pursuant to section 6 of this act, and any revenue generated from grants, donations, or state and federal funds received by the city for such good life district economic development program subject to any restrictions of the grantor, donor, or state or federal law; and
(11) Qualifying business means any corporation, nonprofit corporation,
partnership, limited liability company, or sole proprietorship which owns or
leases property or operates its business within a good life district program area, or plans to own or lease property or operate its business within a good life district program area. The good life district applicant shall be deemed a qualifying business pursuant to this subdivision. Qualifying business shall also include a political subdivision, a state agency, or any other governmental entity which includes any portion of the good life district program area within its territorial boundaries.
Sec. 4. (1) The authority of a city to establish a good life district economic development program and to appropriate local sources of revenue to
such program is subject to approval by a vote of a majority of the registered voters of the city voting upon the question.
(2) The question may be submitted to the voters at a special election or
such question may be voted on at an election held in conjunction with the statewide primary or statewide general election. The question may be submitted to the voters before or after any application is submitted to establish a good life district pursuant to the Good Life Transformational Projects Act.
(3) A city shall order submission of the question to the registered voters by resolution. The resolution shall contain the entire wording of the ballot question, which shall state the question as follows: "Shall the [city or
village] of [name of the city or village] be authorized to establish a good life district economic development program for any area within the [city or
village] which is included in a good life district established pursuant to the Good Life Transformational Projects Act, and shall the [city or village] be authorized to appropriate the local sources of revenue collected within such good life district program area, which may include local option sales and use taxes and occupation taxes, established pursuant to and as permitted by the Good Life District Economic Development Act?"
(4) The city shall file a copy of the resolution calling the election with the election commissioner or county clerk not later than the eighth Friday prior to a special election or a municipal primary or general election which is
not held at the statewide primary or general election, or not later than March
1 prior to a statewide primary election or September 1 prior to a statewide general election. The election shall be conducted in accordance with the Election Act.
(5) If a majority of those voting on the issue vote in favor of the question, the governing body may establish and implement a good life district economic development program upon the terms contained in the Good Life District Economic Development Act. If a majority of those voting on the issue vote against the question, the governing body shall not establish or implement any good life district economic development program. When the question of
establishing a good life district economic development program is defeated at
an election, resubmission of the question and an election on the question shall not be held until at least five months have passed from and after the date of
such election.
Sec. 5. (1) Upon approval by the voters, the governing body of the city may establish a good life district economic development program for any area within the city which is included in a good life district established pursuant to the Good Life Transformational Projects Act, and the city shall appropriate the local sources of revenue established in the good life district program area and pledged for such program.
(2) A good life district economic development program shall be established by ordinance, which shall include the following provisions:
(a) The boundaries of the good life district program area, which shall be
coterminous with the portion of the applicable good life district as
established pursuant to section 77-4405 which is located within the city. Such
-2-
LB1317 LB1317
2024 2024
boundaries of the program area may be expanded to include any area annexed by
the city which is also included within such established good life district;
(b) A description of the local sources of revenue which shall be
established for the program pursuant to section 6 of this act, and a pledge to
appropriate such revenues to the program for the time period during which such funds are collected;
(c) The time period within which the funds from local sources of revenue are to be collected within the good life district program area, and the time period during which the good life district economic development program will be
in existence;
(d) The manner in which a qualifying business will be required to submit an application for assistance under the good life district economic development program, including the type of information that will be required from the business, the process that will be used to verify the information, and the types of business information provided to the city which will be kept confidential by the city, and the types of agreements which will be permitted with qualifying businesses for development of property within the good life district program area. No additional business information shall be required from a qualifying business that is the good life district applicant. The Department of Economic Development shall provide a copy of the application,
approval, and all related documentation establishing the related good life district to the city upon approval by the Department of Economic Development;
(e) Such restrictions on qualifying businesses, limitations on types of
eligible costs, and limitations on the amounts of eligible costs as the city determines are in the best interests of the city and the good life district economic development program. Such limitations and restrictions shall include provisions intended to ensure (i) sufficient infrastructure will be available to serve the program area and expectations as to how such infrastructure will be constructed and funded, (ii) sufficient capital investment in buildings and facilities to generate enough local sources of revenue to sustain the program,
and (iii) substantially all of the eligible costs will be used for the benefit of the program area; and
(f) A description of the administrative system that will be established by
the city to administer the good life district economic development program,
including a description of any personnel structure and the duties and responsibilities of the personnel involved.
(3) All information provided with an application for assistance under any good life district economic development program to the city by a qualifying business shall be kept confidential by the city to the extent required by the terms of the ordinance establishing the good life district economic development program. The city may approve or deny any application for assistance in the discretion of the city, subject to the terms of any contract or agreement with
a qualifying business related to such program.
(4) The city may enter into contracts and agreements with qualifying businesses related to assistance under the good life district economic development program, development of property within the applicable good life district program area, use of property within the good life district program area, and other agreements related to the good life district economic development program or good life district program area, which contracts and agreements may extend over multiple years and include such undertakings and designation of responsibilities as the city determines appropriate or
convenient for development, use, and operation of the good life district economic development program and the properties in the good life district program area. The city shall not enter into a contract or agreement with a qualifying business for assistance that uses local sources of revenue collected from property owned by the good life district applicant unless the contract or
agreement is approved by the good life district applicant. This subsection shall not be construed to provide a city with any power it would not otherwise have by law to restrict a business lawfully permitted to operate in this state from locating in a good life district.
(5) In connection with administration of a good life district economic development program, a city may engage professionals, consultants, and other third parties to assist and provide such services to the city as determined appropriate by the city. All costs of administration of the program which are charged to the program by the city shall be paid from the associated good life district economic development fund prior to payment of any other eligible costs or bonds which may be payable from the fund.
(6) Each good life district economic development program shall remain in
effect until thirty years after the date the associated good life district was established or until the program is terminated by the city pursuant to
subsection (7) of this section, whichever occurs first. If more than one good life district is established within a city, a separate good life district economic development program shall be established for each such good life district.
(7) The governing body of a city may, at any time after the adoption of
the ordinance establishing the good life district economic development program by a two-thirds vote of the members of the governing body, amend or repeal the ordinance in its entirety, subject only to the provisions of any outstanding bonds or existing contracts relating to such program and the rights of any third parties arising from such bonds or contracts.
Sec. 6. (1) Upon establishing a good life district economic development program, the city is authorized to establish any one or more of the following local sources of revenue for the program within the applicable good life
-3-
LB1317 LB1317
2024 2024
district program area:
(a) A local option sales and use tax of up to the greater of (i) the difference between the state sales tax rate levied in general and the state sales tax rate levied on transactions occurring within a good life district or
(ii) two and three-quarters percent upon the same transactions that are sourced under the provisions of sections 77-2703.01 to 77-2703.04 within the good life district program area on which the State of Nebraska is authorized to impose a tax pursuant to the Nebraska Revenue Act of 1967, as amended from time to time.
The city is authorized to impose such sales and use tax by ordinance of its governing body, and such sales and use tax shall be in addition to any local option sales tax imposed by the city pursuant to section 77-27,142. The administration of such sales and use tax shall be by the Tax Commissioner in
the same manner as provided in section 77-27,143. The Tax Commissioner shall collect the tax imposed pursuant to this subdivision concurrently with collection of a state tax in the same manner as the state tax is collected. The Tax Commissioner shall remit monthly the proceeds of such tax to the city levying the tax. All relevant provisions of the Nebraska Revenue Act of 1967,
as amended from time to time, and not inconsistent with the Good Life District Economic Development Act, shall govern transactions, proceedings, and activities pursuant to any local option sales and use tax imposed under this subdivision;
(b) A general business occupation tax upon the businesses