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LB 529

Redefine state agency under the State Procurement Act

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

The Nebraska Investment Council is removed from the definition of “state agency” for procurement of services, giving NIC greater flexibility in private-market investment contracts.

Approved by Governor on April 7, 2025
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Bill Summary · LB 529

LB 529 — Redefine "state agency" under the State Procurement Act

Status: Approved by Governor (April 7, 2025). Effective on passage (emergency clause).
Introduced: January 22, 2025. Sponsor: Sen. Mike Jacobson.

Main purpose

LB 529 narrows the application of Nebraska’s State Procurement Act for procurement of services by removing the Nebraska Investment Council (NIC) from the Act’s definition of “state agency” for purposes of procuring services. The change is intended to give the NIC greater flexibility to negotiate and execute private-market investment contracts.

Key provisions

  • Amends section 73‑803 (definitions) of the State Procurement Act:
    • For purposes of procurement of services, “state agency” does not include the Nebraska Investment Council (in addition to the University of Nebraska, Nebraska state colleges, courts, Legislature, and constitutional officers/agencies).
    • The statutory change is expressly applied to actions taken on or after July 19, 2024.
  • The enacted bill contains an emergency clause, so it took effect upon gubernatorial approval (April 7, 2025).
  • Procedural note: Earlier drafts would have inserted specific, broader exemptions for the NIC (e.g., exempting NIC from contract-duration limits, indemnity and venue restrictions, proof‑of‑need analyses for contracts over $15 million, and certain reporting/tracking duties). Those broader provisions were removed by amendment (AM27); the final law implements the narrower change to the definition in 73‑803.

Direct effects and likely impacts

  • By excluding the NIC from the procurement-of-services definition, NIC-sponsored service contracts are no longer governed by many State Procurement Act rules that apply to “state agencies.” This means provisions in the Act that restrict:
    • unlimited or unspecified contract durations,
    • certain indemnification language,
    • consenting to jurisdiction/venue in other states,
    • proof‑of‑need analyses for service contracts exceeding $15 million,
    • and other procurement procedural requirements will not apply to NIC when it is acting in its capacity to procure services.
  • Practical impact: NIC gains greater contractual flexibility to negotiate private-market investment funds and terms that are common in the investment industry (e.g., open‑ended commitment structures, negotiated indemnities, choice-of-law/venue clauses, and timing needed to secure oversubscribed funds).
  • Entities indirectly affected include investment managers, private funds contracting with NIC, and state administrative bodies that previously had oversight/approval or tracking roles for procurement-of-services transactions.

Procedural / timeline highlights

  • Committee hearing: Feb 5, 2025 (Govt., Military & Veterans Affairs). AM27 (committee amendment) replaced the original broader text with the narrower definition change.
  • Advanced through Legislature with final vote on Final Reading: passed 47–0–2 on April 3, 2025.
  • Presented to Governor April 3, 2025; approved April 7, 2025. Emergency clause makes the act effective immediately upon approval. The statute change is also applied retroactively to actions on/after July 19, 2024.

Where to look in statute

  • Amended: Neb. Rev. Stat. § 73‑803 (definition of “state agency” for procurement of services).

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

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