The proposed legislation, known as the Service Contract Reporting Act, establishes a framework for reporting service contracts awarded by cities, counties, and state agencies in Nebraska. It defines key terms such as "city," "county," "service contract," and "state agency," and outlines the requirements for annual reporting. Each city, county, and state agency must submit a report by August 1 each year, detailing the names and addresses of entities awarded service contracts, the total dollar value of these contracts, and efforts made to increase contracts awarded to entities in economically disadvantaged areas.

Additionally, the bill mandates that the Division of Materiel within the Department of Administrative Services compile and submit a comprehensive report to the Governor and relevant legislative committees by September 1 each year. It also includes a compliance mechanism, stating that if a city or county fails to submit the required report, the State Treasurer will suspend all distributions of state aid until compliance is achieved. This legislation aims to enhance transparency and accountability in the awarding of service contracts within the state.