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LB 324

Change protest procedures relating to creation of a proposed business improvement district or modification of an existing business improvement district under the Business Improvement District Act

109th Legislature (2025-2026) Introduced by Mike Moser

LB 324 ends BID actions if less than 50% of returned postcard votes favor creation or modification, tying continuation to majority postcard support.

Title printed. Carryover bill
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Bill Summary · LB 324

Legislative Bill Summary: LB 324 (2025)

Overview

LB 324 would amend the Nebraska Business Improvement District (BID) Act to change protest procedures for the creation of a proposed BID or the modification of an existing BID. The bill focuses on the process by which voting postcards are used to gauge support and terminate proceedings if support is insufficient. The bill was introduced on January 16, 2025, and a hearing was scheduled for February 4, 2025. It is sponsored by Senator Mike Moser and referred to the Urban Affairs Committee.

What LB 324 does

  • Establishes a clear termination trigger based on postcard voting after notices have been sent to affected parties.
  • Applies to two types of actions:
    • Creation of a proposed BID.
    • Modification (expansion or alteration) of an existing BID.
  • Replaces the current protest procedures with a threshold that requires a majority of returned postcard votes to be in favor; if not, the proceeding terminates.

Key provisions (by section)

Section 1 — Amends 19-4027 (Hearing and ruling procedures)

  • Maintains the city council’s authority to hear protests, receive evidence, and rule on protests.
  • Adds a termination condition tied to postcard voting:
    • For proposed new BIDs using a special assessment: if, after postcards are mailed to record owners, less than 50% of returned postcard votes are in favor, the creation proceeding terminates.
    • For proposed BIDs using an occupation tax: if, after postcards are mailed to users of space, less than 50% of returned postcard votes are in favor, the creation proceeding terminates.

Section 2 — Amends 19-4029.01 (Notice of hearing)

  • Keeps the required notice components (publication, mailing to property owners, neighborhood associations, and users of space where applicable).
  • Reinforces the process for notifying affected parties at least 10 days before a hearing.
  • Specifies notice contents (boundaries, time/place, proposed facilities/improvements, estimated costs, and revenue method).

Section 3 — Amends 19-4029.04 (Protests and termination for modified BIDs)

  • Mirrors the termination mechanism described in Section 1 for modifications:
    • If a special assessment is used, termination occurs when less than 50% of returned postcard votes favor the modification.
    • If an occupation tax is used, termination occurs when less than 50% of returned postcard votes favor the modification.

Section 4 — Repeal and reenactment

  • Repeals the original sections (19-4027, 19-4029.01, 19-4029.04) and reenacts them with the amended language.

Who would be affected

  • Property owners in the proposed BID area (for special assessments) and users of space within the BID (for occupation taxes).
  • Neighborhood associations registered to receive notices.
  • Local city officials (city council) responsible for hearings and decisions.

Procedural and timeline considerations

  • Notice of hearing must be provided at least 10 days prior to the hearing.
  • The key procedural change is the 50% threshold on returned postcard votes determining termination of the proposal or modification.
  • The bill’s hearing is scheduled for February 4, 2025, with introduction on January 16, 2025, and referral to Urban Affairs on January 21, 2025.

Sponsor

  • Primary Introducer: Senator Mike Moser

Bottom line

LB 324 tightens and clarifies protest procedures for BID actions by tying continuation to a majority of returned postcard votes in favor, thereby terminating proposals if support falls below 50%. It also codifies notice requirements and aligns modified-BID procedures with the same voting threshold.

Compiled from official sources — confirm details with the bill’s official record.

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