Bill to implement constitutional changes regarding revenue bonds advances

A bill that would implement the provisions of a recently approved constitutional amendment regarding revenue bonds advanced from general file Feb. 22.

The 2010 Legislature passed LR295CA, which placed a proposed constitutional amendment on the May primary election ballot authorizing any county, city or village to acquire, own, develop and lease real and personal property for use by charitable nonprofit enterprises, and to issue revenue bonds to defray the cost of acquiring, developing or financing such property.

Voters approved the measure, and Lincoln Sen. Amanda McGill introduced LB159 to amend the Nebraska Industrial Development Act to reflect the language of the constitutional change.

McGill said the bill would permit municipalities and counties to participate in financing and developing projects for nonprofit enterprises throughout Nebraska. Any revenue bonds issued would not be the obligation of the issuing county or municipality, she said, and no taxes could be levied to pay for the bonds.

LB159 also excludes any portion of a nonprofit enterprise project used for sectarian instruction or study, or for devotional activities or religious worship.

An Urban Affairs Committee amendment, adopted 38-0, added a stipulation that a nonprofit enterprise must be incorporated or authorized to do business in Nebraska to utilize the bill’s provisions.

Lawmakers advanced the bill to select file on a 34-0 vote.