Bill Summary – FastDemocracy

LB67                                                                                LB67
                                                                              2024
                               LEGISLATURE OF NEBRASKA
                            ONE HUNDRED EIGHTH LEGISLATURE
                                   FIRST SPECIAL SESSION
                       LEGISLATIVE BILL 67
       Introduced by Wayne, 13.
       Read first time July 29, 2024
       Committee: Revenue
   A BILL FOR AN ACT relating to natural resources districts; to amend
       section 2-3225, Reissue Revised Statutes of Nebraska, and section
       77-3442, Revised Statutes Supplement, 2023; to change provisions
       relating to    levy authority of   natural resources districts;   to
       provide a funding mechanism for natural resources districts; and to
       repeal the original sections.
   Be it enacted by the people of the State of Nebraska,
                                            -1-
LB67                                                                                         LB67
                                                                                       2024
       Section 1. Section 2-3225, Reissue Revised Statutes of Nebraska, is
   amended to read:
      2-3225 (1)(a) Each district shall have the power and authority to
  levy a tax of not to exceed four and one-half cents on each one hundred
   dollars of taxable valuation annually on all of the taxable property
  within such district unless a higher levy is authorized pursuant to
  section 77-3444.
       (b) Each district shall also have the power and authority to levy a
   tax equal to the dollar amount by which its restricted funds budgeted to
  administer and implement ground water management activities and
  integrated management activities under the Nebraska Ground Water
  Management and Protection Act exceed its restricted funds budgeted to
  administer and implement ground water management activities and
  integrated management activities for FY2003-04, not to exceed one cent on
   each one hundred dollars of taxable valuation annually on all of the
   taxable property within the district.
      (c) In addition to the power and authority granted in subdivisions
  (1)(a) and (b) of this section, each district located in a river basin,
   subbasin, or reach that has been determined to be fully appropriated
   pursuant to section 46-714 or designated overappropriated pursuant to
   section 46-713 by the Department of Natural Resources shall also have the
   power and authority to levy a tax equal to the dollar amount by which its
  restricted funds budgeted to   administer and implement ground water
  management activities and integrated management activities under the
  Nebraska Ground Water Management and Protection Act exceed its restricted
   funds budgeted to    administer and implement ground water management
  activities and integrated management activities for FY2005-06, not to
  exceed three cents on each one hundred dollars of taxable valuation on
  all of the taxable property within the district for fiscal year 2006-07
  and each fiscal year thereafter through fiscal year 2017-18.
      (d) In addition to the power and authority granted in subdivisions
                                               -2-
LB67                                                                                                       LB67
                                                                                                     2024
  (a) through (c) of this subsection, a district with jurisdiction that
   includes a river subject to an interstate compact among three or more
  states and that also includes one or more irrigation districts within the
   compact river basin may annually levy a tax not to exceed ten cents per
   one hundred dollars of taxable valuation of all taxable property in the
  district.      The proceeds of   such tax may be    used for the payment of
  principal and interest on bonds and refunding bonds issued pursuant to
   section 2-3226.01. Such levy is not includable in the computation of
   other limitations upon the district's tax levy.
         (2) The proceeds of the tax levies authorized in subdivisions (1)(a)
  through (c) of this section shall be used, together with any other funds
  which the district may receive from any source, for the operation of the
   district.      When adopted by     the board,      the tax levies authorized in
   subdivisions (1)(a) through (d) of this section shall be certified by the
   secretary to the county clerk of each county which in whole or in part is
   included within the district. Such levy shall be handled by the counties
  in the same manner as other levies, and proceeds shall be remitted to the
   district treasurer. Such levy shall not be considered a part of the
   general county levy and shall not be considered in connection with any
   limitation on levies of such counties.
          (3) Beginning in fiscal year 2025-26, a district may certify a levy
   under this section only if such levy is authorized under section 2 of
   this act.
          Sec.    2.     (1)   Beginning in    fiscal year    2025-26,       funds shall be
   distributed to natural resources districts to offset the funds lost by
   natural resources districts due to    the elimination of    their levy
   authority under section 2-3225.
         (2) The amount to be distributed to each natural resources district
  under this section shall be equal to:
          (a) For fiscal year 2025-26, the amount of property taxes levied by
   such natural resources district for fiscal year    2024-25       pursuant to
                                                     -3-
LB67                                                                                                 LB67
                                                                                               2024
   section 2-3225, with such amount then increased by three and one-half
   percent. Such amount shall be calculated by the Department of Natural
   Resources and certified to the natural resources district and to the
   budget administrator of   the budget division of   the Department of
   Administrative Services by August 15, 2025; and
      (b) For fiscal year 2026-27 and each fiscal year thereafter, the
   amount distributed under this section to such natural resources district
   in the prior fiscal year increased by three and one-half percent. Such
   amount shall be calculated by the Department of Natural Resources and
   certified to    the natural resources district and to   the budget
   administrator of the budget division of the Department of Administrative
   Services by August 15 of each year.
       (3) The Department of Natural Resources shall annually certify the
   total amount to be distributed to all natural resources districts under
   subsection (2) of this section to the State Treasurer.
       (4)     The Department of     Natural Resources shall annually make
   distributions to    the natural resources districts in       the amounts
   determined pursuant to subsection (2) of this section. The distributions
   shall be made in twelve equal payments distributed monthly.
       (5) Beginning in fiscal year 2025-26, if the state fails to provide
   full funding of the amounts described in subsection (2) of this section
   for any fiscal year, each natural resources district may, if approved by
   a majority vote of the board of directors of the natural resources
   district,   levy an   amount for such fiscal year under section      2-3225
   sufficient to generate revenue equal to the amount that would have been
   provided to the natural resources district under subsection (2) of this
   section if fully funded minus the amount that was actually provided to
   the natural resources district.
       Sec.    3.    Section      77-3442,     Revised Statutes Supplement,          2023,   is
   amended to read:
       77-3442 (1) Property tax levies for the support of local governments
                                                   -4-
LB67                                                                                     LB67
                                                                                   2024
   for fiscal years beginning on or after July 1, 1998, shall be limited to
   the amounts set forth in this section except as provided in section
   77-3444.
          (2)(a) Except as provided in subdivisions (2)(b) and (2)(e) of this
   section, school districts and multiple-district school systems may levy a
   maximum levy of one dollar and five cents per one hundred dollars of
   taxable valuation of property subject to the levy.
          (b) For each fiscal year prior to fiscal year 2017-18, learning
   communities may levy a maximum levy for the general fund budgets of
   member school districts of ninety-five cents per one hundred dollars of
   taxable valuation of property subject to the levy. The proceeds from the
   levy pursuant to   this subdivision shall be   distributed pursuant to
   section 79-1073.
          (c) Except as provided in subdivision (2)(e) of this section, for
   each fiscal year prior to fiscal year 2017-18, school districts that are
   members of learning communities may levy for purposes of such districts'
   general fund budget and special building funds a maximum combined levy of
   the difference of one dollar and five cents on each one hundred dollars
   of taxable property subject to the levy minus the learning community levy
   pursuant to   subdivision    (2)(b)   of this section for such learning
   community.
          (d) Excluded from the limitations in subdivisions (2)(a) and (2)(c)
   of this section are (i) amounts levied to pay for current and future sums
   agreed to be paid by a school district to certificated employees in
   exchange for a voluntary termination of employment occurring prior to
   September 1, 2017, (ii) amounts levied by a school district otherwise at
   the maximum levy pursuant to subdivision (2)(a) of this section to pay
   for current and future qualified voluntary termination incentives for
   certificated teachers pursuant to subsection (3) of section 79-8,142 that
   are not otherwise included in an exclusion pursuant to subdivision (2)(d)
   of this section, (iii) amounts levied by a school district otherwise at
                                              -5-
LB67                                                                                          LB67
                                                                                        2024
   the maximum levy pursuant to subdivision (2)(a) of this section to pay
   for seventy-five percent of the current and future sums agreed to be paid
   to certificated employees in exchange for a voluntary termination of
   employment occurring between September 1, 2017, and August 31, 2018, as a
   result of   a collective-bargaining agreement in   force and effect on
   September     1,   2017,   that are not otherwise included in    an exclusion
   pursuant to subdivision (2)(d) of this section, (iv) amounts levied by a
   school district otherwise at the maximum levy pursuant to subdivision (2)
   (a) of this section to pay for fifty percent of the current and future
   sums agreed to be paid to certificated employees in exchange for a
   voluntary termination of employment occurring between September 1, 2018,
   and August 31, 2019, as a result of a collective-bargaining agreement in
   force and effect on September 1, 2017, that are not otherwise included in
   an exclusion pursuant to subdivision (2)(d) of this section, (v) amounts
   levied by a school district otherwise at the maximum levy pursuant to
   subdivision (2)(a) of this section to pay for twenty-five percent of the
   current and future sums agreed to be paid to certificated employees in
   exchange for a voluntary termination of employment occurring between
   September 1, 2019, and August 31, 2020, as a result of a collective-
   bargaining agreement in force and effect on September 1, 2017, that are
   not otherwise included in an exclusion pursuant to subdivision (2)(d) of
   this section, (vi) amounts levied in compliance with sections 79-10,110
   and 79-10,110.02, and (vii) amounts levied to pay for special building
   funds and sinking funds established for projects commenced prior to April
   1, 1996, for construction, expansion, or alteration of school district
   buildings. For purposes of this subsection, commenced means any action
   taken by the school board on the record which commits the board to expend
   district funds in planning, constructing, or carrying out the project.
       (e)     Federal aid school districts may exceed the maximum levy
   prescribed by subdivision (2)(a) or (2)(c) of this section only to the
   extent necessary to qualify to receive federal aid pursuant to Title VIII
                                                -6-
LB67                                                                                                LB67
                                                                                              2024
  of Public Law 103-382, as such title existed on September 1, 2001. For
   purposes of    this subdivision,      federal aid school district means any
   school district which receives ten percent or more of the revenue for its
   general fund budget from federal government sources pursuant to Title
   VIII of Public Law 103-382, as such title existed on September 1, 2001.
         (f) For each fiscal year, learning communities may levy a maximum
   levy of one-half cent on each one hundred dollars of taxable property
   subject to the levy for elementary learning center facility leases, for
   remodeling of leased elementary learning center facilities, and for up to
   fifty percent of the estimated cost for focus school or program capital
   projects approved by the learning community coordinating council pursuant
   to section 79-2111.
        (g) For each fiscal year, learning communities may levy a maximum
   levy of one and one-half cents on each one hundred dollars of taxable
   property subject to the levy for early childhood education programs for
  children in    poverty,       for elementary learning center employees,        for
  contracts with other entities or individuals who are not employees of the
  learning community for elementary learning center programs and services,
   and for pilot projects, except that no more than ten percent of such levy
   may be used for elementary learning center employees.
         (3) For each fiscal year through fiscal year 2023-24, community
   college areas may levy the levies provided in subdivisions (2)(a) through
  (c)   of section       85-1517,      in accordance with the provisions of    such
   subdivisions. For fiscal year 2024-25 and each fiscal year thereafter,
   community college areas may levy the levies provided in subdivisions (2)
  (a) and (b) of section 85-1517, in accordance with the provisions of such
   subdivisions. A community college area may exceed the levy provided in
  subdivision (2)(a) of section 85-1517 by the amount necessary to generate
  sufficient revenue as    described in   section    85-1543   or     85-2238.     A
   community college area may exceed the levy provided in subdivision (2)(b)
   of section 85-1517 by the amount necessary to retire general obligation
                                                    -7-
LB67                                                                                                             LB67
                                                                                                           2024
   bonds assumed by the community college area or issued pursuant to section
   85-1515 according to the terms of such bonds or for any obligation
   pursuant to section 85-1535 entered into prior to January 1, 1997.
        (4)(a) Natural resources districts may levy a maximum levy of four
   and one-half cents per one hundred dollars of    taxable valuation of
   property subject to the levy.
         (b)    Natural resources districts shall also have the power and
  authority to   levy    a tax equal to    the dollar amount by    which their
   restricted funds budgeted to    administer and implement ground water
  management activities and integrated management activities under the
   Nebraska Ground Water Management and Protection Act exceed their
   restricted funds budgeted to    administer and implement ground water
   management activities and integrated management activities for FY2003-04,
   not to exceed one cent on each one hundred dollars of taxable valuation
   annually on all of the taxable property within the district.
        (c) In addition, natural resources districts located in a river
  basin,      subbasin,        or reach that has been determined to   be fully
  appropriated pursuant to section 46-714 or designated as overappropriated
  pursuant to section 46-713 by the Department of Natural Resources shall
   also have the power and authority to levy a tax equal to the dollar
  amount by    which their restricted funds budgeted to    administer and
   implement ground water management activities and integrated management
   activities under the Nebraska Ground Water Management and Protection Act
  exceed their restr