Bill > LB123

This bill modifies provisions related to financial compliance and accountability for political subdivisions in Nebraska, focusing on three key areas. First, it updates rules for governmental units that fail to comply with budget limits, establishing a process where the Auditor of Public Accounts will notify the State Treasurer of noncompliance, leading to suspension of state aid funds. If a governmental unit does not resolve its noncompliance within six months, the suspended funds will be redistributed to other recipients in the same county or returned to specific funds, and if noncompliance continues for twelve months, the unit becomes ineligible for future state aid. Second, the bill revises requirements for political subdivisions regarding property tax request authority, mandating that they calculate and submit specific forms to the auditor by September 30th each year, with similar financial penalties for noncompliance as in the budget limit provisions. Third, the bill strengthens requirements for municipalities to complete annual audits, allowing taxpayers to initiate legal action if an audit is not completed within six months after a fiscal year ends, and enabling the State Treasurer to withhold money from cities or villages that fail to file their annual audits. In all cases, the bill provides a pathway for entities to regain compliance and restore their eligibility for state funds.

Military Affairs and Security

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59272