Environmental trust grantee land purchases would require approval

After eight hours of debate, senators narrowly advanced from general file a bill dealing with property purchases through the Nebraska Environmental Trust (NET).

The trust is supported by state lottery dollars, receiving 44.5 percent of dollars appropriated to the state Lottery Operation Trust Fund. Grants are awarded to applicants seeking to promote established environmental goals, including the protection of air, land, ground and surface water, flora and fauna, prairies and forests, wildlife and wildlife habitat and areas of aesthetic or scenic values.

LB57, as originally introduced by O’Neill Sen. Tyson Larson, would require that NET approve any purchase of real property made using NET funds given to a grant recipient either to purchase real property directly or through the use of a revolving fund.

Larson said April 2 that the bill would ensure that good practices are in place for future NET boards.

“There has been a lack of oversight by the board when it comes to land purchased with these funds,” he said. “At the end of the day, this is a bill about government transparency and accountability.”

A Natural Resources Committee amendment, adopted 28-2, additionally would require that an applicant that uses NET funds to purchase land include a contract provision for the replacement of lost property taxes if the land would then be sold, leased, transferred to, exchanged or encumbered by a federal agency.

Ogallala Sen. Ken Schilz supported the committee amendment, saying some private entities that received grants have sold the land for a significant profit.

“I want to make sure that NET has as much money as possible to do the important things for the citizens of Nebraska. Ultimately [LB57] will strengthen NET and their process,” Schilz said.

Larson introduced an amendment to the committee amendment, adopted 32-2, that would allow any grantee who does not receive board approval to sell, lease, transfer or exchange land to repay the grant and be released from all further obligations. An approved sale would be released from further obligation if given written approval by the board.

Lincoln Sen. Danielle Conrad opposed the amendment and the bill, saying both were unnecessary.

“Any time we start to tinker with NET, we are indeed tinkering with the trust voters instilled in the creation of this important institution in our state,” she said. “No one has been able to point to any incident of mismanagement that this bill is seeking to address.”

Malcolm Sen. Ken Haar introduced an amendment, adopted 30-0, which would allow the NET board 45 days to approve or deny a grant application. If no response were provided in that timeframe, the application would be deemed approved.

Haar later filed a bracket motion to delay further discussion of the bill until April 5. He said the proposal needs significant improvement before senators could advance it.

“Any time a bill comes up that involves the trust, I am very suspicious,” Haar said. “There are a number of issues still unresolved even with the amendments. I want to ensure that the bill in no way harms the trust or its ability to purchase land.”

The bracket motion failed on a 8-29 vote.

Omaha Sen. Ernie Chambers introduced motions to indefinitely postpone the bill and recommit it to committee, which were unsuccessful. He said proponents of the bill were not concerned with the land being sold, but rather to whom the land was sold.

“No one who supports this bill can answer my questions on this bill,” Chambers said. “This bill is nonsensical and unintelligible.”

On April 3, Larson filed a motion to invoke cloture, or cease debate. It prevailed 34-9. Senators then voted to advance the bill to select file on a 27-17 vote.