ONE HUNDRED NINTH LEGISLATURE - FIRST SESSION - 2025 COMMITTEE STATEMENT LB123 Hearing Date: Wednesday January 29, 2025 Committee On: Government, Military and Veterans Affairs Introducer: Sanders One Liner: Change provisions relating to withholding money due to noncompliance with budget limits and annual audits for certain political subdivisions Roll Call Vote - Final Committee Action: Advanced to General File Vote Results: Aye: 8 Senators Andersen, Cavanaugh, J., Guereca, Hunt, Lonowski, McKeon, Sanders, Wordekemper Nay: Absent: Present Not Voting: Testimony: Proponents: Representing: Senator Rita Sanders Opening Presenter Heidi Wallace State Treasurer's Office Jeff Schreier Nebraska Auditor of Public Accts Opponents: Representing: Neutral: Representing: Candace Meredith Nebraska Association of County Officials (NACO) * ADA Accommodation Written Testimony Summary of purpose and/or changes: Section 1 modifies the process for the withholding of state monies from political subdivisions that do not comply with the budget limitations provided in §§13-518 to 13-522. Current law already provides for suspension of state aid distributions, however this bill provides further detail on the penalties for continuing noncompliance. Section 2 modifies the consequences for a municipality that remains out of compliance with annual audit requirements. After twelve months, such municipalities would no longer be entitled to incentive payments for street purposes under §39-2511. They would regain eligibility for these funds after coming into compliance. Committee Statement: LB123 Government, Military and Veterans Affairs Committee Page 1 71a1b6f1e1d8438c103be65a1267f09c Rita Sanders, Chairperson Committee Statement: LB123 Government, Military and Veterans Affairs Committee Page 2 71a1b6f1e1d8438c103be65a1267f09c