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LB 406

Change provisions relating to the State Racing and Gaming Commission

109th Legislature (2025-2026)

Establishes and reorganizes the Nebraska State Racing and Gaming Commission to regulate racing and gaming activities with defined seven-member leadership, terms, ethics, and compen

Title printed. Carryover bill
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Bill Summary · LB 406

Summary of LB 406 (2025) — Change provisions relating to the State Racing and Gaming Commission

Overview

LB 406, introduced January 17, 2025 by the General Affairs Committee (Chair: Sen. Rick Holdcroft), is a bill that reorganizes and codifies the State Racing and Gaming Commission. The bill sets forth the commission’s creation, membership, terms, compensation, conflicts of interest, and related governance provisions. It also repeals and rewrites the original section 2-1201. The bill has a scheduled hearing date of March 10, 2025 (notice issued February 19, 2025) and was referred to the General Affairs Committee on January 22, 2025.

What the bill would do

  • Establish the State Racing and Gaming Commission to regulate racing and gaming activities.
  • Reorganize the statutory framework governing the commission by amending 2-1201 and repealing the original section, consolidating language related to the commission and its operations.

Key provisions and changes

  • Commission structure: The commission would consist of seven members appointed by the Governor, subject to confirmation by a majority of the members elected to the Legislature, and removable for cause.
  • Appointment and removal: Members must not hold other state or federal offices concurrently. Removal may occur for malfeasance, misfeasance, neglect, or other cause; a violation of applicable ethics rules (section 2-1219) is grounds for removal.
  • Geographic and at-large composition: One member from each congressional district as existed on January 1, 2010; four members appointed at large.
  • Term designations: Specific staggered term structures described, including initial terms tied to dates after 2010-2012 for the at-large members and standard four-year terms thereafter.
    • Particular language lays out transitional terms for at-large members appointed in certain years, followed by four-year terms.
  • Residency and party constraints: No more than four members may belong to the same political party; no more than three members may reside in the same congressional district; no more than two may reside in any single county.
  • Vacancies: Governor fills vacancies for the unexpired term.
  • Compensation and expenses: Members would be paid $1,000 per month, with potential CPI-based adjustments every two years (based on the change in CPI for Urban Wage Earners and Clerical Workers from June 30 to June 30). Reimbursement of expenses would follow existing statutes (sections 81-1174 to 81-1177). Members would be bonded or insured as required by statute.
  • Conflicts of interest: No member shall have any personal financial interest in any licensed racetrack enclosure or authorized gaming operator during the term of office.
  • Ethics and compliance: Provisions reference bonding/insurance and adherence to applicable ethics and conflict-of-interest standards.

Who would be affected

  • The Nebraska State Racing and Gaming Commission (new or reorganized under LB 406) and its seven commissioners.
  • Licensed racetrack operators and authorized gaming operators (due to conflict-of-interest restrictions for commissioners).
  • Nebraska residents and stakeholders in horseracing and gaming industries, as regulatory oversight would be centralized under the proposed Commission.
  • State government, including the Legislature, through governance and oversight of racing and gaming regulation.

Timeline and procedural aspects

  • Introduction: January 17, 2025.
  • Referred to Committee: January 22, 2025 (General Affairs).
  • Notice of hearing: March 10, 2025.
  • Status indicates the bill is in position for committee consideration and potential amendments; as a shell bill in intent, it may be used to address anticipated regulatory needs if the committee deems it necessary.

Potential implications

  • Improved governance and centralized regulatory oversight for racing and gaming in Nebraska.
  • Clearer structural rules for commission membership, terms, and ethics.
  • Potential impact on fiscal planning for the commission through standardized compensation and CPI adjustments.
  • Changes to potential conflicts of interest for commissioners, aligning with broader state ethics requirements.

Note: The bill text includes specific statutory references and term schedules that would require careful review for exact implementation dates and any transitional provisions.

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

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