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LEGISLATIVE BILL 39
Approved by the Governor May 25, 2021
Introduced by Lindstrom, 18; McDonnell, 5; Wishart, 27; DeBoer, 10; Aguilar,
35.
A BILL FOR AN ACT relating to political subdivisions; to amend sections 13-3105
and 13-3109, Reissue Revised Statutes of Nebraska, and sections 13-2610,
13-3102, 13-3103, 13-3104, 13-3106, 13-3108, and 82-334, Revised Statutes Cumulative Supplement, 2020; to change Convention Center Support Fund distribution provisions; to authorize assistance for sports complexes as
prescribed in the Sports Arena Facility Financing Assistance Act; to define and redefine terms; to change provisions relating to limitations on
state assistance, applications, notice, considerations for application approval, and bonds; to change provisions relating to the Support the Arts Cash Fund; to provide for the award of grants to cities of the first class with creative districts; to harmonize provisions; to repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 13-2610, Revised Statutes Cumulative Supplement, 2020,
is amended to read:
13-2610 (1) Upon the annual certification under section 13-2609, the State Treasurer shall transfer after the audit the amount certified to the Convention Center Support Fund. The Convention Center Support Fund is created. Transfers may be made from the fund to the General Fund at the direction of the Legislature. Any money in the Convention Center Support Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.
(2)(a) (2) It is the intent of the Legislature to appropriate from the fund to any political subdivision for which an application for state assistance under the Convention Center Facility Financing Assistance Act has been approved an amount not to exceed (i) (a) seventy percent of the state sales tax revenue collected by retailers and operators doing business at such facilities on sales at such facilities, state sales tax revenue collected on primary and secondary box office sales of admissions to such facilities, and state sales tax revenue collected by associated hotels, (ii) (b) seventy-five million dollars for any one approved project, or (iii) (c) the total cost of acquiring, constructing,
improving, or equipping the eligible facility. State assistance shall not be
used for an operating subsidy or other ancillary facility.
(b) It is further the intent of the Legislature to appropriate from the fund to any city of the metropolitan class for which an application for state assistance under the Convention Center Facility Financing Assistance Act has been approved an amount not to exceed the amount of money transferred to the fund pursuant to subdivision (9)(a) of section 13-3108.
(3)(a) Ten percent of the such funds appropriated to a city of the metropolitan class under subdivision (2)(a) subsection (2) of this section and all of the funds appropriated to a city of the metropolitan class under subdivision (2)(b) of this section shall be equally distributed to areas with a high concentration of poverty to (i) showcase important historical aspects of
such areas or areas within close geographic proximity of the area with a high concentration of poverty or (ii) assist with the reduction of street and gang violence in such areas.
(b) Each area with a high concentration of poverty that has been distributed funds under subdivision (3)(a) of this section shall establish a development fund and form a committee which shall identify and research potential projects to be completed in the area with a high concentration of
poverty or in an area within close geographic proximity of such area if the project would have a significant or demonstrable impact on such area and make final determinations on the use of the funds state sales tax revenue received for such projects.
(c) A committee formed under subdivision (3)(b) of this section shall include the following three members:
(i) The member of the city council whose district includes a majority of
the census tracts which each contain a percentage of persons below the poverty line of greater than thirty percent, as determined by the most recent federal decennial census, within the area with a high concentration of poverty;
(ii) The commissioner of the county whose district includes a majority of
the census tracts which each contain a percentage of persons below the poverty line of greater than thirty percent, as determined by the most recent federal decennial census, within the area with a high concentration of poverty; and
(iii) A resident of the area with a high concentration of poverty,
appointed by the other two members of the committee.
(d) A committee formed under subdivision (3)(b) of this section shall solicit project ideas from the public and shall hold a public hearing in the area with a high concentration of poverty. Notice of a proposed hearing shall be provided in accordance with the procedures for notice of a public hearing pursuant to section 18-2115.01. The committee shall research potential projects
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and make the final determination regarding the annual distribution of funding to such projects.
(e) For purposes of this subsection, an area with a high concentration of
poverty means an area within the corporate limits of a city of the metropolitan class consisting of one or more contiguous census tracts, as determined by the most recent federal decennial census, which contain a percentage of persons below the poverty line of greater than thirty percent, and all census tracts contiguous to such tract or tracts, as determined by the most recent federal decennial census.
(4)(a) Ten percent of the such funds appropriated to a city of the primary class under subdivision (2)(a) subsection (2) of this section may, if the city determines by consent of the city council that such funds are not currently needed for the purposes described in section 13-2604, be used as follows:
(i) For investment in the construction of qualified low-income housing projects as defined in 26 U.S.C. 42, including qualified projects receiving Nebraska affordable housing tax credits under the Affordable Housing Tax Credit Act; or
(ii) If there are no such qualified low-income housing projects as defined in 26 U.S.C. 42 being constructed or expected to be constructed within the political subdivision, for investment in areas with a high concentration of
poverty to assist with low-income housing needs.
(b) For purposes of this subsection, an area with a high concentration of
poverty means an area within the corporate limits of a city of the primary class consisting of one or more contiguous census tracts, as determined by the most recent American Community Survey 5-Year Estimate, which contain a percentage of persons below the poverty line of greater than thirty percent,
and all census tracts contiguous to such tract or tracts, as determined by the most recent American Community Survey 5-Year Estimate.
(5) State assistance to the political subdivision shall no longer be
available upon the retirement of the bonds issued to acquire, construct,
improve, or equip the facility or any subsequent bonds that refunded the original issue or when state assistance reaches the amount determined under subdivision (2)(a) subsection (2) of this section, whichever comes first.
(6) The remaining thirty percent of state sales tax revenue collected by
retailers and operators doing business at such facilities on sales at such facilities, state sales tax revenue collected on primary and secondary box office sales of admissions to such facilities, and state sales tax revenue collected by associated hotels, shall be appropriated by the Legislature to the Civic and Community Center Financing Fund. Upon the annual certification required pursuant to section 13-2609 and following the transfer to the Convention Center Support Fund required pursuant to subsection (1) of this section, the State Treasurer shall transfer an amount equal to the remaining thirty percent from the Convention Center Support Fund to the Civic and Community Center Financing Fund.
(7) Any municipality that has applied for and received a grant of
assistance under the Civic and Community Center Financing Act may not receive state assistance under the Convention Center Facility Financing Assistance Act.
Sec. 2. Section 13-3102, Revised Statutes Cumulative Supplement, 2020, is amended to read:
13-3102 For purposes of the Sports Arena Facility Financing Assistance Act:
(1) Applicant means:
(a) A political subdivision; or
(b) A political subdivision and nonprofit organization that jointly submit an application under the act;
(2) (1) Board means a board consisting of the Governor, the State Treasurer, the chairperson of the Nebraska Investment Council, the chairperson of the Nebraska State Board of Public Accountancy, and a professor of economics on the faculty of a state postsecondary educational institution appointed to a two-year term on the board by the Coordinating Commission for Postsecondary Education. For administrative and budget purposes only, the board shall be
considered part of the Department of Revenue;
(3) (2) Bond means a general obligation bond, redevelopment bond, lease-
purchase bond, revenue bond, or combination of any such bonds;
(4) Court means a rectangular hard surface primarily used indoors for competitive sports, including, but not limited to, basketball, volleyball, or tennis;
(5) Date that the project commenced means the date when a project starts as specified by a contract, resolution, or formal public announcement;
(6) Economic redevelopment area means an area in the State of Nebraska in
which:
(a) The average rate of unemployment in the area during the period covered by the most recent federal decennial census or American Community Survey 5-Year Estimate by the United States Bureau of the Census is at least one hundred fifty percent of the average rate of unemployment in the state during the same period; and
(b) The average poverty rate in the area is twenty percent or more for the federal census tract in the area;
(7) (3) Eligible sports arena facility means:
(a) Any publicly owned, enclosed, and temperature-controlled building primarily used for sports that has a permanent seating capacity of at least three thousand but no more than seven thousand seats and in which initial occupancy occurs on or after July 1, 2010, including . Eligible sports arena
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facility includes stadiums, arenas, dressing and locker facilities, concession areas, parking facilities, and onsite administrative offices connected with operating the facilities; and
(b) Any racetrack enclosure licensed by the State Racing Commission in
which initial occupancy occurs on or after July 1, 2010, including concession areas, parking facilities, and onsite administrative offices connected with operating the racetrack; and
(c) Any sports complex, including concession areas, parking facilities,
and onsite administrative offices connected with operating the sports complex;
(8) (4) General obligation bond means any bond or refunding bond issued by
a political subdivision and which is payable from the proceeds of an ad valorem tax;
(9) (5) Increase in state sales tax revenue means the amount of state sales tax revenue collected by a nearby retailer during the fiscal year for which state assistance is calculated minus the amount of state sales tax revenue collected by the nearby retailer in the fiscal year that ended immediately preceding the project completion date of occupancy of the eligible sports arena facility, except that the amount of state sales tax revenue of a nearby retailer shall not be less than zero;
(10) Multipurpose field means a rectangular field of grass or synthetic turf which is primarily used for competitive field sports, including, but not limited to, soccer, football, flag football, lacrosse, or rugby;
(11) (6) Nearby retailer means a retailer as defined in section 77-2701.32
that is located within the program area. The term includes a subsequent owner of a nearby retailer operating at the same location;
(12) (7) New state sales tax revenue means:
(a) For any eligible sports arena facility that is not a sports complex:
(i) One hundred percent of the state sales tax revenue that (A) is collected by a nearby retailer that commenced collecting state sales tax during the period of time beginning twenty-four months prior to the project completion date of the eligible sports arena facility and ending forty-eight months after the project completion date of the eligible sports arena facility or, for applications for state assistance approved prior to October 1, 2016, forty-
eight months after October 1, 2016, and (B) is sourced under sections
77-2703.01 to 77-2703.04 to the program area; and
(ii) The increase in state sales tax revenue that (A) is collected by a nearby retailer that commenced collecting state sales tax prior to twenty-four months prior to the project completion date of the eligible sports arena facility and (B) is sourced under sections 77-2703.01 to 77-2703.04 to the program area; or
(b) For any eligible sports arena facility that is a sports complex, one hundred percent of the state sales tax revenue that (i) is collected by a nearby retailer that commenced collecting state sales tax during the period of
time beginning on the date that the project commenced and ending forty-eight months after the project completion date of the eligible sports arena facility and (ii) is sourced under sections 77-2703.01 to 77-2703.04 to the program area;
(a) For nearby retailers that commenced collecting state sales tax during the period of time beginning twenty-four months prior to occupancy of the eligible sports arena facility and ending forty-eight months after the occupancy of the eligible sports arena facility or, for applications for state assistance approved prior to October 1, 2016, forty-eight months after October
1, 2016, one hundred percent of the state sales tax revenue collected by the nearby retailer and sourced under sections 77-2703.01 to 77-2703.04 to the program area; and
(b) For nearby retailers that commenced collecting state sales tax prior to twenty-four months prior to occupancy of the eligible sports arena facility,
the increase in state sales tax revenue collected by the nearby retailer and sourced under sections 77-2703.01 to 77-2703.04 to the program area;
(13) (8) Political subdivision means any city, village, or county;
(14) (9) Program area means:
(a) For any eligible sports arena facility that is not a sports complex:
(i) For applications for state assistance submitted prior to October 1,
2016, the area that is located within six hundred yards of an eligible sports arena facility, measured from any point of the exterior perimeter of the facility but not from any parking facility or other structure; or
(ii) (b) For applications for state assistance submitted on or after October 1, 2016, the area that is located within six hundred yards of an eligible sports arena facility, measured from any point of the exterior perimeter of the facility but not from any parking facility or other structure,
except that if twenty-five percent or more of such area is unbuildable property, then the program area shall be adjusted so that:
(A) (i) It avoids as much of the unbuildable property as is practical; and
(B) (ii) It contains contiguous property with the same total amount of
square footage that the program area would have contained had no adjustment been necessary; or .
(b) For any eligible sports arena facility that is a sports complex, the area that is located within six hundred yards of an eligible sports arena facility, measured from any point of the exterior boundary or property line of
the facility.
Approval of an application for state assistance by the board pursuant to
section 13-3106 shall establish the program area as that area depicted in the map accompanying the application for state assistance as submitted pursuant to
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subdivision (2)(c) of section 13-3104; .
(15) Project completion date means:
(a) For projects involving the acquisition or construction of an eligible sports arena facility, the date of initial occupancy of the facility following the completion of such acquisition or construction; or
(b) For all other projects, the date of completion of the project for which state assistance is received;
(16) (10) Revenue bond means any bond or refunding bond issued by a political subdivision which is limited or special rather than a general obligation bond of the political subdivision and which is not payable from the proceeds of an ad valorem tax; and
(17) Sports complex means a facility that:
(a) Includes indoor areas, outdoor areas, or both;
(b) Is primarily used for competitive sports; and
(c) Contains at least:
(i) Twelve separate sports venues if such facility is located in a city of
the metropolitan class;
(ii) Six separate sports venues if such facility is located in a city of
the primary class; or
(iii) Four separate sports venues if such facility is located (A) in a city of the first class, city of the second class, or village, (B) within a county but outside the corporate limits of any city or village, (C) in an
economic redevelopment area, or (D) in an opportunity zone designated pursuant to the federal Tax Cuts and Jobs Act, Public Law 115-97;
(18) Sports venue includes, but is not limited to:
(a) A baseball field;
(b) A softball field;
(c) A multipurpose field;
(d) An outdoor stadium primarily used for competitive sports;
(e) An outdoor arena primarily used for competitive sports; or
(f) An enclosed, temperature-controlled building primarily used for competitive sports. If any such building contains more than one multipurpose field, court, swimming pool, or other facility primarily used for competitive sports, then each such m