Nonprofit revenue bond bill approved

A bill that implements the provisions of a recently approved constitutional amendment regarding revenue bonds was given final approval March 10.

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.

Any revenue bonds issued pursuant to the bill will not be the obligation of the issuing county or municipality and no taxes may be levied to pay for the bonds.

A nonprofit enterprise must be incorporated or authorized to do business in Nebraska to utilize the bill’s provisions, and any portion of a nonprofit enterprise project used for sectarian instruction or study, or for devotional activities or religious worship is excluded.

Lawmakers approved LB159 on a 48-0 vote.