Change provisions relating to withholding money due to noncompliance with budget limits, property tax request authority, and annual audits for certain political subdivisions
This bill modifies how Nebraska handles state aid to local governments (cities, counties, and other political subdivisions) that miss financial deadlines. If a local government fails to comply with budget limits, submit property tax calculations, or complete annual audits, the state will suspend their funding for six months. If compliance isn't achieved within that period, the funds are forfeited and redistributed to other local entities in the same county or returned to state funds. After 12 months of non-compliance, the local government becomes ineligible for future state aid until it meets all requirements.
Bill status
signed
all 5 stages cleared
Introduction
Jan 2025
Committee Review
Feb 2025
Legislature Passage
Mar 2025
Legislature Passage
Mar 2025
Signed into Law
Mar 2025
Introduced Jan 10, 2025
Signed Mar 26, 2025
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Final Reading
·
4 edits
MODERATE
The bill was amended to add a new section requiring political subdivisions to submit property tax request forms to the auditor by September 30, 2025, and annually thereafter. The bill also updated the audit enforcement provisions to clarify that noncompliance with budget limits triggers suspension of state aid, which is forfeited after six months if not resolved. The original sections were repealed and replaced with revised language that expands the scope of political subdivisions subject to these requirements.
Scope change
The bill now explicitly includes property tax request authority and unused property tax request authority in its scope, and applies to political subdivisions that fail to comply with budget limits under the Property Tax Growth Limitation Act.
REQUIREMENT
New requirement for political subdivisions to submit property tax request forms to the auditor by September 30, 2025, and annually thereafter.
ENFORCEMENT
State aid is suspended for six months when a political subdivision fails to comply with budget limits, and forfeited if compliance is not achieved within that period.
SCOPE
Bill scope expanded to include property tax request authority and unused property tax request authority in addition to existing budget limit provisions.
TECHNICAL
Original sections 13-522 and 19-2907 were repealed and replaced with revised language incorporating the new requirements.
Floor votes · Legislature Mar 11, 2025
How they voted
29–0
Passed · 20 other
Total votes 49
Mar 11, 2025
N
Nonpartisan49
59% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
16
Key actions
5
Committee
2
Mar 26, 2025
Signed into law
Approved by Governor on March 25, 2025
executive
Mar 20, 2025
Legislature · Passed
President/Speaker signed
legislature
Mar 20, 2025
Legislature · Passed
Passed on Final Reading 45-0-4
legislature
Mar 11, 2025
Legislature · Passed
Sanders AM407 adopted
legislature
Feb 7, 2025
Legislature · Passed
Placed on General File
legislature
Jan 14, 2025
Committee
Referred to Government, Military and Veterans Affairs Committee
legislature
Jan 10, 2025
Introduced
Date of introduction
legislature
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Rita Sanders
NNonpartisan
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