LB867 LB867
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LEGISLATURE OF NEBRASKA
ONE HUNDRED SIXTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 867
Introduced by Hansen, M., 26.
Read first time January 09, 2020
Committee: Urban Affairs
1 A BILL FOR AN ACT relating to cities and villages; to adopt the Local
2 Option Municipal Childcare Financing Act.
3 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Sections 1 to 16 of this act shall be known and may be
2 cited as the Local Option Municipal Childcare Financing Act.
3 Sec. 2. The Legislature finds and declares that:
4 (1) There is a high degree of competition among states and
5 municipalities in our nation in their efforts to provide economic
6 development incentives for businesses to expand or to locate in their
7 respective jurisdictions;
8 (2) Municipalities in Nebraska are hampered in their efforts to
9 effectively compete because of their inability under Nebraska law to
10 respond quickly to opportunities or to raise sufficient capital from
11 local sources to provide incentives for the provision of new services or
12 business location or expansion decisions which are tailored to meet the
13 needs of the local community;
14 (3) Having access to affordable quality childcare is essential to
15 the continued growth of Nebraska municipalities. Access to affordable and
16 quality childcare and education will prepare Nebraska's workforce while
17 stimulating Nebraska's economy;
18 (4) The ability of a municipality to encourage the provisions of new
19 services or business location and expansion, particularly when it comes
20 to the availability of affordable and quality childcare services, has a
21 direct impact not only upon the economic well-being of the community and
22 its residents but upon the whole state as well; and
23 (5) Providing municipalities with the tools necessary to increase
24 access to early childhood care and education will help increase the
25 availability, affordability, and quality of childcare services available
26 in Nebraska.
27 Sec. 3. For purposes of the Local Option Municipal Childcare
28 Financing Act:
29 (1) City means any city of the metropolitan class, city of the
30 primary class, city of the first class, city of the second class, or
31 village, including any city operated under a home rule charter, that has
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1 not enacted an economic development program under the Local Option
2 Municipal Economic Development Act. City shall also include any group of
3 two or more cities acting in concert under the terms of the Interlocal
4 Cooperation Act or Joint Public Agency Act by means of a properly
5 executed agreement;
6 (2) Economic development program means any project or program
7 utilizing funds derived from local sources of revenue for the purpose of
8 providing direct or indirect financing assistance to a qualifying
9 childcare business, the payment of related costs and expenses, or both,
10 without regard to whether that business is identified at the time the
11 project or program is initiated or is to be determined by specified means
12 at some time in the future;
13 (3) Election means any general election, primary election, or
14 special election called by the city as provided by law;
15 (4) Financial institution means a state or federally chartered bank,
16 a capital stock state building and loan association, a capital stock
17 federal savings and loan association, a capital stock federal savings
18 bank, and a capital stock state savings bank;
19 (5) Local sources of revenue means the city's property tax, the
20 city's local option sales tax, or any other general tax levied by the
21 city or grants, donations, or state and federal funds received by the
22 city subject to any restrictions of the grantor, donor, or state or
23 federal law; and
24 (6) Qualifying childcare business means any corporation,
25 partnership, limited liability company, or sole proprietorship which
26 derives its principal source of income from early childhood care and
27 education programs.
28 Sec. 4. The governing body of any city proposing to adopt an
29 economic development program shall prepare a proposed plan for such
30 economic development program. The proposed plan shall include:
31 (1) A description of the city's general community and economic
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1 development strategy;
2 (2) A statement of purpose describing the city's general intent and
3 proposed goals for the establishment of the economic development program;
4 (3) A statement specifying the total amount of money that is
5 proposed to be directly collected from local sources of revenue by the
6 city to finance the program, the time period within which the funds from
7 local sources of revenue are to be collected, the time period during
8 which the program will be in existence, and a basic preliminary proposed
9 budget for the program;
10 (4) A description of the manner in which a qualifying childcare
11 business will be required to submit an application for financial
12 assistance, including the type of information that will be required from
13 the business, the process that will be used to verify the information,
14 and the steps that will be taken to ensure the privacy and
15 confidentiality of business information provided to the city;
16 (5) A description of the administrative system that will be
17 established to administer the economic development program, including a
18 description of the personnel structure that will be involved and the
19 duties and responsibilities of those persons involved; and
20 (6) A description of how the city will assure that all applicable
21 laws, regulations, and requirements, including, but not limited to,
22 applicable childcare regulations issued by the Department of Health and
23 Human Services and the Step Up to Quality Child Care Act, are met by the
24 city and the qualifying childcare businesses which receive assistance.
25 Sec. 5. (1) If the proposed economic development program involves
26 the purchase of or option to purchase land, the proposed plan shall also
27 specify the manner in which tracts of land will be identified for
28 purchase or option to purchase and whether or not the city proposes to
29 use the proceeds from the future sale of such land for additional land
30 purchases.
31 (2) If the proposed economic development program involves the
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1 creation of a loan fund, the proposed plan shall also specify:
2 (a) The types of financial assistance that will be available,
3 stating the maximum proportion of financial assistance that will be
4 provided to any single qualifying childcare business and specifying the
5 criteria that will be used to determine the appropriate level of
6 assistance;
7 (b) The criteria and procedures that will be used to determine the
8 necessity and appropriateness of permitting a qualifying childcare
9 business to participate in the loan fund program;
10 (c) The criteria for determining the time within which a qualifying
11 childcare business must meet the goals set for it under its participation
12 agreement;
13 (d) What personnel or other assistance beyond regular city employees
14 will be needed to assist in the administration of the loan fund program
15 and the manner in which they will be paid or reimbursed;
16 (e) The investment strategies that the city will pursue to promote
17 the growth of the loan fund while assuring its security and liquidity;
18 and
19 (f) The methods of auditing and verification that will be used by
20 the city to ensure that the assistance given is used in an appropriate
21 manner and that the city is protected against fraud or deceit in the
22 conduct or administration of the economic development program.
23 Sec. 6. Upon completion of the proposed plan, the governing body of
24 the city shall schedule a public hearing at which such plan shall be
25 presented for public comment and discussion. Following the public
26 hearing, the governing body shall adopt the proposed plan and any
27 amendments by resolution. At the discretion of the governing body, the
28 resolution may include the full text of the proposed plan or it may be
29 incorporated by reference. The resolution shall include a statement of
30 the date at which the economic development program will be presented to
31 the registered voters of the city for approval pursuant to section 7 of
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1 this act and the language of the ballot question as it will appear on the
2 ballot. Following its adoption, a copy of the resolution and the proposed
3 plan shall be filed with the city clerk who shall make it available for
4 public review at city hall during regular business hours.
5 Sec. 7. (1) Before adopting an economic development program, a city
6 shall submit the question of its adoption to the registered voters at an
7 election. The governing body of the city shall order the submission of
8 the question by filing a certified copy of the resolution proposing the
9 economic development program with the election commissioner or county
10 clerk not later than fifty days prior to a special election or a
11 municipal primary or general election which is not held at the statewide
12 primary or general election or not later than March 1 prior to a
13 statewide primary election or September 1 prior to a statewide general
14 election. The governing body of the city may determine not to submit the
15 question at a particular election and order the removal of the question
16 from the ballot by filing a certified copy of the resolution approving
17 the removal of the question with the election commissioner or county
18 clerk not later than March 1 prior to a statewide primary election or
19 September 1 prior to a statewide general election.
20 (2) The question on the ballot shall briefly set out the terms,
21 conditions, and goals of the proposed economic development program,
22 including the length of time during which the program will be in
23 existence, the year or years within which the funds from local sources of
24 revenue are to be collected, the source or sources from which the funds
25 are to be collected, and the total amount to be collected for the program
26 from local sources of revenue. The ballot question shall also specify
27 whether additional funds from other noncity sources will be sought beyond
28 those derived from local sources of revenue. In addition to all other
29 information, if the funds are to be derived from the city's property tax,
30 the ballot question shall state the present annual cost of the economic
31 development program per ten thousand dollars of assessed valuation based
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1 upon the most recent valuation of the city certified to the Property Tax
2 Administrator pursuant to section 77-1613.01. The ballot question shall
3 state: "Shall the city of (name of the city) establish an economic
4 development program as described here by appropriating annually from
5 local sources of revenue $... for .... years?". If the only city revenue
6 source for the proposed economic development program is a local option
7 sales tax that has not yet been approved at an election, the ballot
8 question specifications in this section may be repeated in the sales tax
9 ballot question.
10 (3) If a majority of those voting on the issue vote in favor of the
11 question, the governing body may implement the proposed economic
12 development program upon the terms set out in the resolution. If a
13 majority of those voting on the economic development program vote in
14 favor of the question when the only city revenue source is a proposed
15 sales tax and a majority of those voting on the local option sales tax
16 vote against the question, the governing body shall not implement the
17 economic development program, and it shall become null and void. If a
18 majority of those voting on the issue vote against the question, the
19 governing body shall not implement the economic development program.
20 Sec. 8. (1) After approval by the voters of an economic development
21 program, the governing body of the city shall, within forty-five days
22 after such approval, establish the economic development program by
23 ordinance in conformity with the terms of such program as set out in the
24 original enabling resolution.
25 (2) After the adoption of the ordinance establishing the economic
26 development program, such ordinance shall only be amended after the
27 governing body of the city (a) gives notice of and holds at least one
28 public hearing on the proposed changes, (b) approves the proposed changes
29 by a two-thirds vote of the members of such governing body, and (c)
30 except as provided in subsection (3) of this section, submits the
31 proposed changes to a new vote of the registered voters of the city in
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1 the manner provided in section 7 of this act.
2 (3) A new vote of the registered voters of the city is not required
3 for an amendment making corrective changes to comply with the Local
4 Option Municipal Childcare Financing Act or any other existing or future
5 state or federal law.
6 (4) The governing body of a city may, at any time after the adoption
7 of the ordinance establishing the economic development program, by a two-
8 thirds vote of the members of the governing body, repeal the ordinance in
9 its entirety and end the economic development program, subject only to
10 the provisions of any existing contracts relating to such program and the
11 rights of any third parties arising from those contracts. Prior to such
12 vote by the governing body, it shall publish notice of its intent to
13 consider the repeal and hold a public hearing on the issue. Any funds in
14 the custody of the city for such economic development program which are
15 not spent or committed at the time of the repeal and any funds received
16 in the future from the prior operation of the economic development
17 program shall be placed into the general fund of the city.
18 Sec. 9. Following the adoption of an ordinance establishing an
19 economic development program, the amount to be expended on the program
20 for the ensuing year or biennial period shall be fixed at the time of
21 making the annual or biennial budget required by law and shall be
22 included in the budget.
23 Sec. 10. (1) No city of the metropolitan class or primary class
24 shall appropriate from funds derived directly from local sources of
25 revenue more than five million dollars for all approved economic
26 development programs in any one year, no city of the first class shall
27 appropriate from funds derived directly from local sources of revenue
28 more than four million dollars for all approved economic development
29 pr