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LB 289

Change provisions relating to cities, villages, and boards of adjustment and redefine qualifying business under the Local Option Municipal Economic Development Act

109th Legislature (2025-2026)

Expands LB 840 by redefining 'qualifying business' to allow large retail chains to receive municipal economic development incentives.

Approved by Governor on March 17, 2025
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Bill Summary · LB 289

Summary — LB 289 (2025)

Title: Change provisions relating to cities, villages, and boards of adjustment and redefine qualifying business under the Local Option Municipal Economic Development Act
Status: Enacted — Approved by Governor March 17, 2025
Introduced: January 15, 2025 (Urban Affairs Committee)

Purpose / Intent

LB 289 makes three principal changes: (1) it allows villages to be governed by a three‑member board of trustees (in addition to the current five‑member option) and establishes the process for changing the number of trustees; (2) it expands the definition of “qualifying business” under the Local Option Municipal Economic Development Act (commonly called LB 840) to permit large retail chains to receive municipal economic development funding; and (3) it authorizes the city council of first‑ and second‑class cities to serve as the board of adjustment.

Key provisions and statutory changes

  • Amends and adds to village governance statutes (sections 17‑201 and 17‑202, and creates a new section):

    • Incorporation petitions may specify whether the village board will have three or five members.
    • Villages may change between three and five trustees by a public question at a statewide general election.
    • Petition route: at least 5% of electors registered in the village at the preceding statewide general election must sign the petition; petitions must conform to §32‑628 and be filed with the election commissioner or county clerk at least 70 days before the general election and will be verified per §32‑631.
    • Village board may alternatively place the question on the ballot by majority resolution (filed at least 70 days before the general election).
    • Ballot language: “For three members” or “For five members”; canvass by county canvassing board decides result.
    • If increased from three to five, vacancies are deemed to exist and procedures in §§32‑568 and 32‑569 apply. If decreased from five to three, the staggered term procedures in §17‑202 govern initial terms and subsequent elections.
    • Election timing detail: initial term lengths set at the first statewide general election following incorporation or change; terms begin at the first regular board meeting in December following that election.

  • Amends Local Option Municipal Economic Development Act (section 18‑2709):

    • Redefines “qualifying business” to allow certain large retail chains to qualify for LB 840 municipal economic development funding. (Bill text amends the enumerated activities that constitute a qualifying business; the committee statement and enacted law explicitly permit large retail chains to receive such funds.)

  • Amends board of adjustment provision (section 19‑911):

    • Permits the city council of first‑class and second‑class cities to constitute the board of adjustment (i.e., serve as that board) under the revised statute.

  • Repealer: Original versions of the amended sections are repealed.

Who is affected

  • Villages and their voters: may change governance structure (3 vs. 5 trustees); petition and election mechanics will affect local governance choices.
  • Cities (first and second class): city councils may function as boards of adjustment, affecting local land use and variance procedures.
  • Local economic development programs and municipalities operating LB 840 funds: municipalities may now enter agreements or provide incentives to certain large retail chains that meet the revised “qualifying business” definition.
  • Businesses: large retail chains may become eligible for municipal economic development incentives that were previously unavailable.

Legislative and procedural timeline

  • Introduced Jan 15, 2025; heard Jan 28, 2025 (Urban Affairs Committee — advanced to General File).
  • Committee amendment AM309 adopted Feb 28, 2025; Enrollment & Review ER12 adopted Feb 28.
  • Passed Final Reading in the Legislature 47–0–2 on Mar 13, 2025; presented to Governor Mar 13.
  • Approved by Governor Mar 17, 2025 (enacted).

Note: The bill text specifies statutory cross‑references (e.g., §§17‑201, 17‑202, 18‑2709, 19‑911). Municipalities and officials should consult the enacted statutory language for implementation details and any administrative steps (e.g., petition forms, filing procedures).

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

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