In cases in which contracts for the sale or lease of lands owned by the state have been duly signed, executed and delivered to the purchaser or purchasers or lessees named in such contracts, by the proper state officers, the omission on the part of the proper officers to have first offered such lands at public sale shall not invalidate the private sales or leasing of such lands; but the purchaser or purchasers or lessees in such contracts mentioned, or their assignees, upon performance by them of the covenants and conditions on their part, by the terms of such contracts to be done, kept and performed, shall be entitled to a deed or contract of sale from the state for such lands; and the proper officers of the state in such cases are authorized and directed to make, execute and deliver to such purchaser or purchasers or lessees, or their assignees, deeds or contracts of sale from the state, which deeds, when properly executed and delivered, shall convey all right, title and interest of the state in and to the lands described therein.

Whenever any communication shall be received by the Governor, or by any of the departments of the state government, from the Secretary of the Interior, when or whereby any lands or selection thereof shall be confirmed or certified to this state under or by virtue of any grant or Act of Congress, it shall be the duty of the Governor to cause a copy to be prepared, certified under the State Seal, and recorded in each of the counties of this state in which any of the lands in such communication are situated.

It shall be the duty of the several county clerks to whom any such copy shall be presented to record it in the books in which land patents are or may be recorded, and in the order in which such copy may be received. The clerks shall be entitled to the same fees for recording such copies as are allowed by law for recording deeds, which fees shall be paid them out of the General Fund upon the warrant of the Director of Administrative Services.

Each such copy, the record thereof, or a transcript of such record, certified under the hand and seal of the county clerk in whose office the same shall be recorded, shall be received in all courts and places whatever as evidence of each and every fact and thing therein stated, as well as of the absolute title of the United States in and to the lands therein described at the date of such communication.

The Board of Educational Lands and Funds may enter into cooperative agreements with the officers and agents of the United States of America for the improvement by the United States of state educational and other lands, not under the control of the Board of Educational Lands and Funds, by the establishment and maintenance thereon of shelterbelts composed of trees, other plants, and necessary protective structures and works.

Every such agreement shall describe particularly the land to be covered by the shelterbelt, and shall be recorded in the county where such land is situated; and, thereafter, all leases, sales, and other disposition of such land shall be subject to such agreement.

Sections 72-105 to 72-107 shall not be construed to authorize the Board of Educational Lands and Funds to spend any funds which may be under its jurisdiction, nor to incur indebtedness, under the above-mentioned agreements.

All deeds or other instruments conveying any interest in lands to the State of Nebraska, or to any board, department, or commission thereof, shall be carefully deposited in the office of the Board of Educational Lands and Funds for safekeeping after they have been duly recorded in the office of the register of deeds in the county where the real estate is located. This section shall not apply to deeds or other instruments conveying any interest in lands to the Department of Transportation or the Game and Parks Commission.

(1) The Board of Educational Lands and Funds shall consist of five members to be appointed by the Governor with the consent of a majority of the members elected to the Legislature. One member shall be appointed from each of the congressional districts as the districts were constituted on January 1, 1961, and a fifth member shall be appointed from the state at large. One member of the board shall be competent in the field of investments. The initial members shall be appointed to take office on October 1, 1955, and shall hold office for the following periods of time: The member from the first congressional district for one year; the member from the second congressional district for two years; the member from the third congressional district for three years; the member from the fourth congressional district for four years; and the member from the state at large for five years. As the terms of the members expire, the Governor shall appoint or reappoint a member of the board for a term of five years, except members appointed to fill vacancies whose tenures shall be the unexpired terms for which they are appointed. If the Legislature is not in session when such members, or some of them, are appointed by the Governor, such members shall take office and act as recess appointees until the Legislature next thereafter convenes. The compensation of the members shall be fifty dollars per day for each day's time actually engaged in the performance of the duties of their office. Each member shall be reimbursed for expenses incurred while upon business of the board as provided in sections 81-1174 to 81-1177. The board shall cause all school, university, agricultural college, and state college lands, owned by or the title to which may hereafter vest in the state, to be registered, leased, and sold as provided in sections 72-201 to 72-251 and shall have the general management and control of such lands and make necessary rules not provided by law. The funds arising from these lands shall be disposed of in the manner provided by the Constitution of Nebraska, sections 72-201 to 72-251, and other laws of Nebraska not inconsistent herewith.

(2) No person shall be eligible to membership on the board who is actively engaged in the teaching profession, who holds or has any financial interest in a school land lease, who is a holder of or a candidate for any state office or a member of any state board or commission, or who has not resided in this state for at least three years.

(3) The board shall elect one of its members as chairperson of the Board of Educational Lands and Funds. In the absence of the chairperson, any member of the board may, upon motion duly carried, act in his or her behalf as such chairperson. It shall keep a record of all proceedings and orders made by it. No order shall be made except upon the concurrence of at least three members of the board. It shall make all orders pertaining to the handling of all lands and funds set apart for educational purposes.

(4) The board shall maintain an office in Lincoln and shall meet in its office not less than once each month.

(5) The board may appoint a secretary for the board. The compensation of the secretary shall be payable monthly, as fixed by the board.

(1) The Board of Educational Lands and Funds shall prepare a plan for the sale of educational lands over which the board has general management and control on July 19, 1996. The plan shall be submitted to the Education Committee of the Legislature on or before December 1, 1996. The plan shall provide for the sale of enough of the total of the educational lands by January 1, 2008, to result in one-fourth of the value of the school trust permanent portfolio being invested by the board in real property located within the State of Nebraska and the remaining three-fourths of the value of the school trust permanent portfolio being invested by the state investment officer. The plan shall be implemented beginning on July 1, 1997. In no case shall the plan or any part of it be executed if such execution violates the fiduciary duties of the board.

(2) Any sale under this section shall not include mineral rights.

(3) The state investment officer shall prepare a plan for investment of the funds derived from the sale of educational lands under the board's plan developed under this section. The state investment officer's plan shall be submitted to the Education Committee of the Legislature on or before December 1, 1996. The plan shall include estimated rates of return for the invested funds.

(4) For purposes of this section, value of the school trust permanent portfolio means the total fair market value of the educational lands and of all stocks, bonds, and other assets comprising the permanent school fund.

The Board of Educational Lands and Funds shall have authority to establish and maintain a branch office in the state as the board shall designate.

The Board of Educational Lands and Funds shall notify the state investment officer of the funds derived from the sale of school lands. Any such funds and the interest therefrom shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. The state investment officer shall manage the funds as follows: (1) When necessary to pay a premium for bonds for such funds, the amount of the premium shall be amortized over the term of the bonds from the interest received on such bonds; and (2) when bonds for such funds are purchased at a discount, the amount of the discount shall be used to purchase additional bonds.

The Board of Educational Lands and Funds shall keep in its office a full and complete abstract of all educational lands of the State of Nebraska, and such other records as are necessary to show the condition of each tract of land from the time title was acquired by the state.

The Board of Educational Lands and Funds shall cause school land to be classified for rental purposes (1) at least once each five years, (2) each time that the land is leased or that an assignment of a lease is made, and (3) when the board deems it to be in the best interest of the state. The leasing of the land shall be regulated by sections 72-232 to 72-239. When a lease is offered for sale, the new rental shall be made public. When the board has ordered the reclassification of any of the school lands in any county, it shall prescribe the method and promulgate rules governing the classification of educational lands. It shall have a classification of all the educational lands in the county prepared by a competent person, who shall make a detailed field examination of each forty-acre tract of educational lands for the purpose of obtaining information as to the type and rating of the soil, its adaptability, the topographical character of the land, and the location and number of acres of each type. His or her report of such field examination shall be prepared in the form of a detailed map with complete explanations and shall be filed with the board. The board may employ private appraisal firms to aid it in determining the value of educational lands.

All school land shall be subject to lease at fair market rental as determined by the Board of Educational Lands and Funds. When the board deems it expedient to raise or lower the rental and the appraised rental valuation of school lands, the board shall adopt rental schedules according to classification and schedules of valuations for the counties involved. In arriving at such rental schedules, the board shall consider the rental of other lands similarly situated and any other relevant factors bearing upon the rental of such school lands. The fair market rental as determined by the board shall then be capitalized at an annual rate of four percent to compute the appraised rental valuation.

After the adoption of new rental schedules according to classification and schedules of valuations, as provided by section 72-205, such schedules together with a tabulation of the valuation and the amount of semiannual rental of each lease shall be filed in the office of the county treasurer of such county not less than ninety days prior to the effective date of the new rentals. Notice of such filing shall be given by one publication in a newspaper of general circulation published within the county or, if more than one newspaper of general circulation is published in the county, then in two of such newspapers. If no newspaper is published in the county, it shall be so published in a newspaper of general circulation therein. The board shall further advise each lessee by mailing to his or her last address of record a letter or postal card notifying him or her of the amount of his or her semiannual rental.

Such new rental schedules according to classification and schedules of valuations shall become effective upon the first semiannual rental due date, which is ninety days or more from the date of the filing of the schedules in the office of the county treasurer, unless within forty-five days from the date of the publication of notice a petition signed (1) by at least twenty-five percent of the lessees in counties having less than one hundred leaseholders or (2) twenty-five of the lessees in counties having one hundred or more leaseholders within the county, requesting a hearing is filed in the office of the Board of Educational Lands and Funds.

Upon receipt of a petition bearing the requisite number of signatures as required by section 72-205.02, the Board of Educational Lands and Funds shall appoint an examiner who shall hold a meeting in the county seat of the county where such school lands are located to take testimony and to receive evidence as to the rental of all school lands, according to classification, in such county. Such evidence shall cover the rental of other lands similarly situated and any other relevant factors bearing upon the rental of such school lands. Notice of the time and place of such hearing shall be given by publication in a legal newspaper, published in the county where such school lands are situated, once each week for two consecutive weeks beginning at least twenty days prior to the date of the public hearing. In case no legal newspaper is published in the county, then the notice shall be published in a legal newspaper of general circulation in the county. The examiner conducting such hearing shall have the power to administer oaths.

A complete record shall be made of all testimony taken and evidence received at such hearing, which record shall be filed in the office of the Board of Educational Lands and Funds. The examiner conducting such hearing shall make, in writing, complete findings and recommendations to the board as to the value of school lands according to classification. If the board determines that a change in the rental is justified it may either raise or lower its rental schedules according to classifications and schedules of valuations previously adopted based upon the evidence produced at such hearing as shown by the record, the effective date to be the time originally fixed.

When the Board of Educational Lands and Funds becomes satisfied that full payment has been made on any tract of land sold by the state, the Governor shall issue a deed to the purchaser or his assigns, and all deeds issued by him shall be countersigned by the Secretary of State and under the Great Seal of the state, and shall be attested by the secretary of the board and a record kept in his office. All deeds so issued shall be subject to record, and shall be received in evidence without acknowledgment, the same as deeds that have been acknowledged.

No lands now owned or hereafter acquired by the state for educational purposes shall be sold except at public auction.

Educational lands belonging to the state may be acquired through the exercise of eminent domain proceedings for the special purposes mentioned in sections 72-214 to 72-226.

Any school district, in which there may be any educational lands, may acquire for school purposes any portion thereof, not exceeding forty acres.

Any city or village may acquire such educational lands not exceeding forty acres for solid waste disposal areas, sewage disposal purposes, necessary right-of-way for electric transmission lines, or for any other purpose, except park and recreational purposes, for which a city or village may condemn private lands.

The United States of America, or any county, city or village of the State of Nebraska may acquire such educational lands necessary for public use for the development of radio monitor stations, aviation fields, and fields for aerial traffic.

The United States of America may purchase any educational lands located within the boundaries of any defense project.

The United States of America may acquire such educational lands, or portions thereof, in subdivisions of not less than forty acres, located within the boundaries of the projects now authorized by the United States of America pursuant to Public Law 848, 76th Congress, entitled An Act Authorizing the Construction of Water Conservation and Utilization Projects in the Great Plains and Arid and Semiarid Areas of the United States, approved August 11, 1939, and all acts supplementary thereto, amendatory thereof, or appropriating funds for the purposes thereof.

The county board of any county, in which there are such educational lands, may acquire for public purposes any portion thereof, not exceeding forty acres.

Any city, village, cemetery association or corporation for the control of cemeteries, may acquire, for cemetery and burial purposes, any of the educational land, not exceeding in the aggregate forty acres, and may purchase additional adjoining tracts not exceeding ten acres each, if and when it becomes necessary to enlarge such cemetery.

The Department of Transportation and the county board of any county may acquire land necessary to establish a public highway over or across any educational lands.

All established public roads that have been established for a period of ten years or more on the section line along any side or part of the side of a section owned by the Board of Educational Lands and Funds, and on any part of a section that has an established meandering road not on the section line and under the jurisdiction of the Board of Educational Lands and Funds, shall be dedicated to the county for public use in the case of county roads, or to the State of Nebraska, Department of Transportation, for public use. The public road right-of-way so dedicated shall be no less than thirty-three feet from the section line, nor less than sixty-six feet through that part of the section where the established road meanders through the described section. Upon receipt of payment from any county or the department of the fair and reasonable market value of the right-of-way at the date the road was established, the Board of Educational Lands and Funds shall convey to the county or the department title to such road right-of-way. The instruments of conveyance shall be recorded in the office of the register of deeds.

Any irrigation district, rural water district, public power district or public power and irrigation district, or natural resources district may acquire from the state any educational land, portion thereof, or interest therein for the purpose for which such districts are authorized by law to condemn private lands in this state. In addition, a natural resources district may acquire an easement or right-of-way for the purpose of constructing, replacing, operating, and maintaining structures which are a part of the program of work of the district.

Any manufacturing company, pipeline company, or telephone or telegraph company, incorporated or qualified to do business in this state, may acquire an easement or right-of-way for the purpose of constructing, replacing, and maintaining pipelines, power pumps, telephone and telegraph lines and appurtenances thereto, under and across any of the school lands, the title of which is vested in the State of Nebraska, as trustee for the common schools.

Any public body enumerated in section 72-222 may acquire an easement from the state on any educational land when such easement is for the purpose for which such public body is authorized by law to condemn private lands in this state. It shall not be necessary for the acquiring public body to follow the procedure established in section 72-224.03 to obtain such easement. The public body may obtain such easement by the filing of an application with the Board of Educational Lands and Funds. Such application shall describe the nature and purpose of the easement, shall contain a legal description of the easement, and shall name the public body seeking the easement. Upon receiving the application for easement the Board of Educational Lands and Funds shall either (1) deny the application or (2) grant the easement and place a value on the easement to be paid by the applicant. When placing a value on the easement the Board of Educational Lands and Funds shall take into consideration the board's responsibility to manage the educational lands in a manner consistent with that of a trustee acting in a fiduciary capacity. The public body applying for the easement shall then either (a) accept the Board of Educational Lands and Funds' value or (b) proceed according to section 72-224.03. Upon the granting of such easement, it shall be the duty of the secretary of the Board of Educational Lands and Funds to transmit a certified copy of the easement to the grantee for filing in the office of the register of deeds in the county or counties where the easement is located.

The condemnation proceedings provided in sections 72-213 to 72-222 shall not operate to deprive the State of Nebraska of any mineral rights in the lands taken for the special purposes authorized by said sections, and, except as to land acquired by the United States of America, when any such land shall cease to be used for the special purpose for which it was acquired, it shall revert to the State of Nebraska as educational land. On lands acquired in this manner by the Game and Parks Commission all mineral income shall accrue to the appropriate state school funds; Provided, that all mineral extraction and exploration shall be conducted in a manner to be approved by both the Board of Educational Lands and Funds and the Game and Parks Commission.

All condemnations of educational lands shall be exercised in the manner set forth in section 72-224.03; Provided, condemnation proceedings may be brought by the United States of America in the district court of the United States of America.

If the school land to be taken is held under lease, the fair and reasonable value of the interest of the state as trustee for the public schools in said land so taken shall be ascertained as is provided in section 72-224.03; Provided, if the condemner desiring to acquire such land from the board is unable to adjust the value of the improvements and any damage thereto, and the damage otherwise arising to the holder of the lease by the condemnation of his interest in the lease, if any, with the holder of the lease, the proceedings to ascertain such damage, if any, and to acquire the interest of the holder of the lease shall be had as is provided in section 72-224.03. The value of the improvements taken, the damage thereto, and any other damage to the holder of the lease, as above provided, shall be paid to the owner of the lease.

Except as otherwise provided in section 72-222.02, any public body that has or hereafter shall be granted by the Legislature the authority to acquire educational lands for public use shall be required to condemn the interest of the state, as trustee for the public schools, in educational lands in the following manner:

(1) The proceedings shall be had before a board consisting of (a) the superintendent of a school district offering instruction in grades kindergarten through twelve, (b) a certified public accountant, and (c) a credentialed real property appraiser, all appointed by the Governor for a term of six years, except that of the initial appointees one shall serve for a term of two years, one for a term of four years, and one for a term of six years as designated by the Governor. The members of the board shall each receive fifty dollars for each day actually engaged in the performance of official duties and shall be reimbursed for expenses as provided in sections 81-1174 to 81-1177 to be paid by the Board of Educational Lands and Funds;

(2) The condemnation proceedings shall be commenced by the filing of a plat and complete description of the lands to be acquired together with an application for that purpose with the secretary of the Board of Educational Lands and Funds. Notice of the pendency of such application and the date of hearing shall be given by serving a copy of the application, together with notice of the date of hearing, upon the Governor and the Attorney General. The date of hearing shall be not less than ten days from the date of the filing of the application;

(3) The condemner and the Board of Educational Lands and Funds may present evidence before the board of appraisers. The board shall have the power to administer oaths and subpoena witnesses at the request of either party or on its own motion;

(4) After hearing the evidence, the board of appraisers shall make the award and file same in the office of the Board of Educational Lands and Funds. Such award may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act; and

(5) Upon payment of the amount of the award by the condemner, it shall be the duty of the secretary of the Board of Educational Lands and Funds to transmit a certified copy of the award to the condemner for filing in the office of the register of deeds in the county or counties where the land is located. The filing of such certified copy of the award shall have the force and effect of a deed of conveyance of the real estate and shall constitute a transfer of the title thereto.

If the land to be taken is held under lease contract, the board of appraisers also shall make a finding as to the interest of the owner in such lease contract, if any, and such value shall be separately assessed.

Any damage to the land of the state, in addition to the value of the land purchased, shall be assessed and included in the amount to be paid the state.

If there is a schoolhouse, cemetery or church building located upon school land or land of the state which has been or may be sold to any individual, corporation or parties, such school district, church or association, with the written consent of the purchaser or occupant, may purchase land for the purposes specified, and obtain a deed from the state, at the price the purchaser, assignee or occupant is to pay. The sum so paid for the tract obtained for such special purpose shall be deducted from the price the original purchaser was to pay.

Sales of land made for the special purpose mentioned in section 72-227 shall be for cash, and if there be buildings on such land belonging to the state, such buildings are to be appraised and sold separately.

Upon the sale of school lands, the Board of Educational Lands and Funds is directed to state the actual purchase price in the deed so that the amount actually paid will be known when the deed is recorded even though the recording is exempt from the documentary stamp tax. The county clerks of the respective counties are directed to enter such lands upon the tax list of the county upon the recording of such a deed.

Educational or saline lands sold under the provisions of any law of this state, or such as have been sold, shall not be taxable until the right to a deed shall have become absolute, but the value of the interest of such purchaser shall be taxable, which interest shall be determined by the value of the land and improvements, less the amount due the state; Provided, when such land shall be situated within the limits of any city or village and shall have been subdivided into lots, then it shall be subject to all special assessments for sidewalk, grading, paving, guttering, curbing, sewerage, and all other municipal improvements, in the same manner as other lots and lands in such city or village, except that a sale of such school lots to collect such assessment or assessments shall only pass the interest or title of the purchaser from the state, his heirs or assigns, and his or their right to a conveyance of the same, upon the payment of any residue of the purchase price or interest.

Money received by the county treasurers of the several counties within the State of Nebraska on account of taxes wrongfully levied on educational lands of the state held under lease shall be, by the respective county treasurers, repaid without interest to persons who paid the same, or their representatives, upon orders in that behalf made by the county board of the respective counties; but no order shall be made for such repayment except upon the production of the county treasurer's receipt for taxes so paid. The county board of any county where school lands have been wrongfully taxed, and the taxes have not yet been paid, shall order the county treasurer to cancel the same.

The Board of Educational Lands and Funds shall have authority to adopt such rules and regulations as it shall deem necessary in the leasing of school lands and to prescribe such terms and conditions of the lease, not inconsistent with sections 72-205, 72-232 to 72-235, 72-240.02 to 72-240.05, and 72-242, as it shall deem necessary to protect the interests of the state. The board shall adopt and enforce a soil conservation program. Failure of the lessee to utilize the land for the purpose for which the land was leased or to observe and carry out soil conservation requirements as provided in the rules and regulations of the board shall be cause for cancellation of the lease.

The Board of Educational Lands and Funds shall pay the costs of administering the unsold school lands out of receipts from school land income. A cash fund is hereby authorized and the State Treasurer shall, out of the receipts for school land income, deposit in such cash fund that amount appropriated by the Legislature for each fiscal year on the first day of each fiscal year.

The cost of administering unsold school lands shall include:

(1) The cost of developing irrigable school lands, located within the boundaries of an irrigation district, so that such lands may benefit from irrigation;

(2) The cost of accrued tolls and assessments on irrigable school lands located within the boundaries of an irrigation district; and

(3) The cost of current tolls and assessments on irrigable school lands located within the boundaries of an irrigation district.

The Board of Educational Lands and Funds is authorized to and shall take all necessary action for the development of irrigable school lands located within the boundaries of an irrigation district, so that such lands may benefit from irrigation. The cost of such development shall be paid by the board from funds available to the board for the administration of unsold school lands, and such costs shall be included in the costs certified to the State Treasurer pursuant to section 72-232.02.

When any irrigable school lands located within the boundaries of an irrigation district are leased, the Board of Educational Lands and Funds shall collect with the regular rental an amount sufficient to pay the cost of current tolls and assessments of the irrigation district on such land, and shall pay such tolls and assessments to the district each year. The amount so collected and paid by the board shall be a part of the cost of administering the school lands and shall be included in the costs certified to the State Treasurer pursuant to section 72-232.02.

The cost of administering unsold school lands shall include expenditures necessary for developing such school lands to their most productive use. All expenditures shall be directed by the board in exercising its responsibility as a trustee over the school land trust and shall not exceed twenty percent of all rental and bonus payments of the previous year, which amount shall be appropriated for each year to the board for payment of development and improvement costs completed and approved by the board upon contracts let for this purpose. All rental and bonus payment deductions as authorized by this section shall be remitted to the State Treasurer for credit to the Land Improvement Fund, which fund is hereby created, to be expended upon proper warrants in accordance with law. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Applications to lease any school lands shall be made to the Board of Educational Lands and Funds. Each such application shall contain an affidavit that the applicant desires to lease and operate such land for the applicant's own use and benefit and that the applicant will not sublease or otherwise dispose of the same without the written approval of the board and will commit no waste or damage on the land nor permit others to do so. The Board of Educational Lands and Funds may, at least once in each year, designate a day and hour for offering, in a public manner in the respective counties, lease contracts on all the educational lands in each respective county which may be subject to lease at the time of such offering. The offering shall be announced in a public manner by publishing a notice thereof three weeks preceding the auction in one or more of the legal newspapers published or of general circulation in the county in which the unleased land is located. If the board is unable to have a representative attend the offering, the county treasurer may, upon the direction of the board, act for it. Adjournments may be taken from day to day until all of the lands have been offered. No lease shall be sublet or assigned without the written approval of the board.

In order for any person to be eligible to bid on a school land lease, he must file a bank draft, certified check or cash for each lease with the county treasurer of the county in which the land is located prior to the sale, payable to the Board of Educational Lands and Funds, equivalent to rent of the first year of the lease on each parcel or tract on which he contemplates bidding. Any bidder who is unsuccessful in the bidding shall have his deposit returned to him immediately after the acceptance of the bid by the Board of Educational Lands and Funds. The deposit of the acceptable bidder shall be applied either on the bonus bid or the rent for the first year. If the accepted bidder fails to pay either the bonus bid or rent for the first year of the lease, he shall forfeit the amount of the deposit and the Board of Educational Lands and Funds shall resubmit the land for bids and a new lease.

The board shall, if the foregoing proceedings appear to be regular, issue to the applicant a lease on the land. Each lease shall contain a covenant or provision (1) that the Board of Educational Lands and Funds may, whenever such board deems it to be for the best interest of the state, adjust the rental of such lands; (2) that the lessee will not sublease or otherwise dispose of such lands without the written consent of the board and will commit no waste or damage on the land nor permit others to do so; (3) that the lessee will observe and carry out soil conservation requirements according to the rules and regulations of the board; (4) that the lessee will pay for the use of such lands the fair market rental as determined by the board; (5) that, upon a failure to pay any rental for a period of sixty days from the time the payment becomes due or upon failure to perform any of the covenants of the lease, the lease may be forfeited and fully set aside, as provided for in sections 72-235 to 72-239; (6) that the lessee will promptly pay the rental semiannually in advance; (7) that in the event the lessee shall fail to pay rental in advance by the due date, interest shall be assessed at an annual interest rate of nine percent until such time as the rent is paid; and (8) that the premises will be surrendered at the expiration of the lease, unless renewed, or upon violation of any of the terms of the lease. Leases shall be for periods of five to twelve years less the period intervening between the date of the execution of the lease and December 31 of the previous year. The board may offer a lease for a period of less than five years if a lease failed to generate interest at an auction and if the board agrees that reducing the minimum lease term will attract a bid or bids for such a lease. When two or more contiguous tracts are under separate lease with different expiration dates, the board may, if it is deemed to be in the best interest of the state, offer leases for less than twelve years on tracts having the earlier lease expiration date, to coincide with the last expiring lease, in order that all contiguous lands eventually may be offered under one lease.

No lease shall be assigned nor the assignment thereof approved by the Board of Educational Lands and Funds unless (1) the person to whom the lease is assigned is a resident of the State of Nebraska or, if a nonresident of the State of Nebraska, owns land adjoining the school land set forth in the lease to be assigned and (2) such assignee will operate the land for his own use and benefit.

If any lessee of educational lands fails to perform any of the covenants of the lease or is in default of semiannual rental due the state for a period of sixty days, the Board of Educational Lands and Funds may forfeit the lease of such person. If the lessee is in default in the payment of rental, the board may cause notice to be given such delinquent lessee in accordance with section 72-236 that, if such delinquency is not paid within thirty days from the date of service of such notice by either registered or certified mail or the date of the first publication of such notice, his or her lease will be declared forfeited. If the amounts due are not paid within such time, the board may declare the lease forfeited and the land described therein shall revert to the state. Before a forfeiture of a lease shall be declared for a failure to perform the covenants of the lease other than the payment of rentals, the board shall give notice of such proposed forfeiture to such lessee, or to his or her personal representative or next of kin if he or she is dead, by either registered or certified mail, setting forth a time such a lessee, or his or her personal representative or next of kin, may show cause and have a hearing as to whether or not such lease shall be forfeited. The order of forfeiture shall be entered upon the records of the board. The board is required to serve such notice of delinquency and proceed with the forfeiture, as stated in such notice, at least once in each year. The provisions of this section and sections 72-236 to 72-239 shall apply to all lands heretofore or hereinafter leased as educational lands of this state.

All right, title, and interest in any and all improvements to a lease forfeited for failure to pay rental pursuant to section 72-235 also shall be forfeited to the Board of Educational Lands and Funds until the rental has been paid in full. The board shall have the authority to offer forfeited leases for sale without regard to any improvements and growing crops thereon.

The notice required by section 72-235 shall be given by either registered or certified letter or by publication for three weeks in a newspaper published or of general circulation in the county where the land is located. In serving the notice of delinquency the Board of Educational Lands and Funds shall recognize as the lessee the person or persons whose name appears last of record in the office of the board.

The owner of any lease forfeited as provided in section 72-235 may redeem by paying all delinquencies, fees, and costs of forfeiture at any time before the Board of Educational Lands and Funds completes the advertising of such land for lease at public auction.

Movable improvements on lands reverting to the state through forfeiture shall be sold under the direction of the Board of Educational Lands and Funds at public auction, and the proceeds received therefrom shall inure to the holder of the forfeited lease, after payment has been made to the state for delinquent interest or rental, expenses incurred in holding such auctions, and irrigation taxes due the irrigation district in which the land is situated.

The Board of Educational Lands and Funds may extend the time of payment of delinquent interest or rental when it deems it to be in the best interest of the state, and it has full assurance that such delinquent interest or rental will be paid. Such extensions shall be granted, upon proper application to the board, and then only to the record owner of the lease who actually uses or occupies educational lands, for periods of one year, and shall bear interest the same as other delinquent rentals, and shall be upon condition the lease is assigned to the state as part assurance of payment. In the event the movable improvements on the land do not constitute sufficient security to justify an extension of time, the lessee may give a lien to the state on the growing crops thereon, if any.

If no such application for a new lease is received or if the applicant fails to meet the requirements for a new lease, the Board of Educational Lands and Funds may, at any time within three months after the expiration of the lease, enter into a lease with any other person it deems willing and able to meet the standards prescribed by the board in its rules and regulations at the rental rate for land of such classification.

When the Board of Educational Lands and Funds deems it expedient, due to breaking or retirement of the land, erosion, resodding, or other causes, to reclassify the school land in any county, and at least once in every five-year period, it shall cause reclassification to be made of the land under lease. When this has been accomplished the new rental for each lease shall be computed by applying the new classification of the land to the rental schedules according to classification then in effect and which have been duly adopted by the Board of Educational Lands and Funds for the counties involved. Rental shall be paid by the lessee upon the basis of the new classification. Not more often than once in every two years the lessee may request the board to make a reclassification of the land he or she has under lease and it shall be the duty of the board, within six months after receipt of such request, to cause the classification to be reviewed.

All leases hereafter entered into by the board shall be made by the board to expire on December 31 of a given year.

The Board of Educational Lands and Funds shall sit twice each year to hear complaints from lessees as to the rental of their leases and may take such action as it may find to be right and proper in regard thereto.

Before any buildings, wells, irrigation improvements, dams, or drainage ditches are placed upon school lands by a lessee, written approval must be obtained from the Board of Educational Lands and Funds, except necessary improvements for the temporary handling and sheltering of livestock, and such improvements where approval is secured shall be called permitted improvements and belong to the lessee and the lessee has the right to be paid a sum of money equal to the value which the improvements add to the value of the land by the buyer of the land or the new lessee in accordance with procedures as given in sections 72-240.10 to 72-240.23 and 72-258. The value to the land of each permitted improvement shall not exceed its replacement cost less depreciation. Any such improvements placed upon school lands before September 14, 1953, and any improvements which were bought by new lessees during an involvement by the state in the transferring of leases after September 14, 1953, shall be considered as authorized or permitted improvements whether or not approval has been secured from the board and shall belong to the lessee unless there has been a provision in the lease to the contrary or unless there has been some written agreement between the lessee and the board to the contrary. Any improvements placed upon school lands after September 14, 1953, where written approval for such improvements was not obtained from the board and where there was no involvement by the state in the transferring of leases or other written agreement with such lessees to the contrary, shall be called nonpermitted improvements and considered as owned by the lessee, whether or not the nonpermitted improvements are attached to the land, unless there has been a provision in the lease to the contrary, and, the lessee shall have the right either (1) to remove such improvements from the land any time during the term of the lease or within six months after the land is sold or leased to a new lessee, and when the nonpermitted improvements are removed the old lessee shall clean up the debris caused thereby or bury it at least three feet below the surface of the land and any basements or holes caused by the nonpermitted improvements shall be filled such that cultivated crops can be grown on the land or (2) to sell the nonpermitted improvements to the buyer of the land or the new lessee at prices agreed upon by the old lessee and the buyer or new lessee. If the parties cannot agree upon the prices of the nonpermitted improvements, or if the improvements are not removed from the land within six months after the land is sold or leased to a new lessee other than the old lessee, the improvements shall become the property of the state. The board shall notify the old lessee by certified letter of the name and address of the purchaser of the land or the new lessee within ten days after the land has been sold or leased to a party other than the old lessee. The board shall, at the same time, notify the old lessee how much money the old lessee shall have to place in escrow with the county treasurer of the county in which the land is located for each nonpermitted improvement if the old lessee takes the option to remove any or all nonpermitted improvements to guarantee removal of debris and to do other things required by the board so as not to damage the land. The old lessee shall within thirty days after receipt of such certified letter notify the board which improvements he or she intends to remove from the land and which shall be left on the land and show proof of deposit of escrow money. If the debris is not removed and if other things required by the board are not done within the six-month period after the land is sold or leased, the old lessee shall forfeit the money placed in escrow to the state, and the board shall hire a contractor to do the things required of the old lessee in order that there not be damage to the land. Any money left in the escrow fund after being depleted by making payment to the contractor for the work done shall be remitted to the old lessee. The board shall have authority to sell any improvement left on the land.

The Board of Educational Lands and Funds shall be responsible and make necessary expenditures for the control of noxious weeds on all school lands of the state. Any expenditure made by such board for the control of noxious weeds shall be considered a cost of administering unsold school lands.

The Board of Educational Lands and Funds shall have the power to contract with supervisors of weed eradication districts of this state or any private or commercial weed control service for the purpose of controlling noxious weeds on school lands.

The Board of Educational Lands and Funds shall have the authority and duty, as specified in sections 72-240.10 to 72-240.23 and 72-258, to determine the value to the land of permitted improvements and growing crops, owned by the lessee of record, on educational lands of the State of Nebraska prior to the sale or lease of such lands. The value to the land of permitted improvements shall not exceed their replacement cost less depreciation. In making such determinations, the board shall notify the lessee that it intends to inspect the premises and shall attempt to so inspect at the convenience of the lessee.

The board shall determine what improvements and growing crops are on the land and develop a specific listing and detailed description of permitted and nonpermitted improvements owned by the lessee and by the State of Nebraska. Only those permitted improvements owned by the lessee shall be considered in determining the value of the lessee's interest therein. The listing of permitted improvements and growing crops shall be acknowledged and agreed upon in writing by both parties. In the event of a dispute regarding ownership of any improvements, either the board or the lessee may file an action in district court for a declaratory judgment.

The board shall make an appraisal of the lessee's permitted improvements and growing crops and attempt to arrive at an agreement with the lessee as to the value of the permitted improvements owned by such lessee.

If the value to the land of any permitted improvements or growing crops cannot be agreed upon, either the board or the lessee may file a petition in the county court of the county wherein the land is situated to have the value to the land of the permitted improvements and growing crops determined. Prior to the filing of such petition the lessee shall have the right, by filing written notice with the board, to elect to remove prior to the expiration of the lease any permitted structural improvements, owned by him, which can be removed without damage to the land or other permitted improvements located on the land. The lessee shall also have the right, by filing written notice with the board, to elect to harvest any fall-seeded growing grain crops in lieu of compensation for the same.

(1) Upon the filing of a petition under section 72-240.13, the county judge or clerk magistrate, within three days by order entered of record, shall appoint three disinterested freeholders of the county, not holders of leases of school lands, to serve as appraisers. The county judge or clerk magistrate shall direct the sheriff to summon the appraisers so selected to convene in the office of the county judge at a time specified in the summons for the purpose of qualifying as appraisers and thereafter proceed to appraise the value of the permitted improvements to the land and growing crops owned by the lessee at the time of termination of the occupying tenant's lease.

(2) Notice of the appointment of the appraisers and of the time and place of the meeting of the board of appraisers to have the value of the permitted improvements to the land and growing crops assessed shall be served upon both the board and the lessee by registered or certified mail at their last-known mailing addresses at least ten days prior to the meeting of the board of appraisers.

The appraisers shall be qualified by the county judge and an oath administered in the same manner as required by sections 76-707 and 76-708.

The appraisers shall carefully inspect and view the permitted improvements and growing crops to be valued and shall hear any party interested therein in reference to the value of the permitted improvements to the land and growing crops.

After the inspection, view and hearing provided for in section 72-240.16 the appraisers shall assess the value to the land of the permitted improvements and growing crops as of the date of expiration of the lease on the land and shall make and file a report of such value in writing with the county judge and shall include in such report a list of the value to the land for each permitted improvement individually. Such report shall be filed with the county judge within ten days from the date of the hearing held by the appraisers.

(1) The appraisers shall consider in determining the value of the permitted improvements the cost of the permitted improvement less any depreciation, obsolescence and any want of benefit to the land.

(2) In the case of growing crops the appraisers shall assess the value of the crop as of the date of expiration of the lease. The appraisers shall consider in the case of fall-seeded grain crops the cost of seed-bed preparation, fertilization, seed and seeding.

(3) In the case of perennial crops such as alfalfa the appraisers shall consider the costs of establishing such crop, its condition as of the expiration of the lease and normal expected remaining life.

(1) Appeals from the valuation set by the board of appraisers may be made by either party in the same manner as appeals from the award of a board of appraisers in condemnation proceedings as governed by sections 76-715 to 76-721. Those provisions shall apply as if the board is the condemner and the lessee is the condemnee.

(2) No bond shall be required of the board to cover the value to the land of the permitted improvements and growing crops found by the appraisers during the appeal.

The appraisers shall receive a reasonable fee, not to exceed fifty dollars each, for their services, to be fixed by the county judge, and the same shall be taxed to the lessee.

(1) When the land is put up for sale, the minimum sale price shall be determined as in section 72-258.

(2) At the time of sale or lease, but prior to the commencement of bidding, a representative of the board shall announce to all present the value to the land of the permitted improvements and growing crops for which the purchaser of the land or lease must pay the lessee as determined under sections 72-240.10 to 72-240.23 and 72-258 or by agreement and shall clearly state that the payment for these permitted improvements and growing crops shall be in addition to the price paid for the land or the lease.

(3) In making the publications required by section 72-233 or 72-258, the board shall include in those publications the determined value to the land of the permitted improvements and growing crops owned by the lessee of the land and shall clearly indicate that this amount is to be paid in addition to the price paid for the land or the lease.

(4) When the land is sold, the purchaser shall be instructed by the board that he or she must, within thirty days of the date of the sale, deposit the amount of value of the permitted improvements with the county treasurer of the county wherein the land is situated with instructions to the treasurer that the money be paid to the lessee upon notification of issuance of the deed or lease. The state shall have a lien upon the funds so paid to the amount of any unpaid rent and interest on such lands due and owing to the state from the former lessee.

The permitted improvements and growing crops covered by sections 72-240.10 to 72-240.23 and 72-258 shall be deemed to be separate permitted improvements and if the board and the lessee agree as to the value of some permitted improvements but disagree as to the value of others, only those on which they do not agree need be appraised under the appraisal provisions of sections 72-240.10 to 72-240.23 and 72-258.

If land is not sold under the provisions of sections 72-240.10 to 72-240.23, 72-257, and 72-258 and is leased according to section 72-258.01, the new lessee shall pay to the old lessee the value of his or her permitted improvements as determined for sale purposes.

Any lessee of educational lands may, subject to the approval of the board, relinquish his interest in such lease as of the following December 31 by notice to the Board of Educational Lands and Funds on or before November 30 of that year. The notice must be in writing signed and acknowledged by the lessee, and delivered to the office of the board.

The Board of Educational Lands and Funds and the Nebraska Investment Council shall jointly report annually to the Clerk of the Legislature, and such report shall contain anticipated future actions by the board as well as actions already taken. The report submitted to the Clerk of the Legislature shall be submitted electronically. The board's portion of the report shall include (1) with reference to each tract of land sold pursuant to section 72-201.01: (a) The legal description; (b) the unique characteristics of the land being sold; (c) the appraised value; (d) the sale price; (e) the amount of funds received in the calendar year covered by the report from the sale; (f) the disposition of the funds; (g) the total number of acres of any unsold educational lands remaining under the general management and control of the board by county; (h) the total appraised value of unsold land; and (i) the percentage of the investment portfolio remaining in real estate, including all nonagricultural real estate and (2) the corresponding information for any land that has been acquired or traded. The council's portion of the report shall include a cost-benefit analysis which considers the land being sold versus the anticipated investment potential of proceeds resulting from the sale. The cost-benefit analysis model used shall be consistent with the standards of the investment industry at the time of the proposed sale. Each member of the Legislature shall receive an electronic copy of such report by making a request for it to the chairperson of the board.

An assignment of a school land lease shall not be valid until recorded in the office of the Board of Educational Lands and Funds and shall not be eligible to such record if there are any payments of interest or rental due at the time the assignment is offered for record.

The publisher of any advertisement in connection with the forfeiture, leasing or sale of any educational lands shall be allowed the fees fixed by law for publishing legal notices, or standard commercial rates when the board elects to use commercial advertising.

Any portion of the lands of this state governed by sections 72-201 to 72-251, adjoining the site of any city or town, may be subdivided into lots and leased as herein provided. The Board of Educational Lands and Funds, being satisfied that by a division of any such tract into lots, the lease of the same can be made for a greater amount than if leased in tracts of forty acres, as herein provided, shall have the authority to employ the necessary surveyors, and cause such tracts to be subdivided into lots and tracts of such size as they may determine, and a plat of the same shall be made and filed for record in the office of the county clerk. Such lots shall be appraised by the appraisers to be appointed by the board, none of whom shall be occupants of the land to be leased. Tracts of land so subdivided and appraised shall be leased according to the provisions of said sections. The board shall give thirty days' notice of such letting, and publish the same in a newspaper of general circulation published in the county in which said lots are situated. Each notice shall contain a list of the lots to be leased, and the appraised value of each. The leasing of such lots shall take place, on the day appointed, under the direction of the board, and shall be leased to the highest bidder, but in no case for less than six percent of the appraised value. Lots remaining unleased shall be again offered for lease at public auction at such time as the board shall direct, and the board may adjourn the leasing from day to day until all the lots are offered.

If any person shall commit waste or trespass, or other injury or damage, or destroy any of the trees upon any of the educational lands of this state referred to in sections 72-201 to 72-251, except as herein authorized, he shall be guilty of a Class II misdemeanor.

All leases executed after May 3, 1935, with respect to educational lands shall contain a covenant to the effect that no prairie lands shall be broken without written permission authorized by the Board of Educational Lands and Funds.

A judge of the district court shall refer charges made under section 72-245 to the grand jury at each term for investigation, and it shall make presentment of all violations thereof.

The Board of Educational Lands and Funds may sell timber on educational lands whenever the board deems it for the best interest of school funds. Said timber shall be sold at public auction in accordance with rules and regulations adopted by the board.

The Governor of the state is empowered and directed to receive from the United States all money that may be due or may become due to the state, and it shall be his or her duty to deposit the same without delay in the treasury of the state, taking the State Treasurer's receipts therefor. All money received from the United States, for the particular benefit of any institution, department, or activity under the jurisdiction of the Department of Health and Human Services or the Department of Correctional Services, shall be paid to the particular institution, department, or activity for the benefit of which it was received, as directed by the proper department, and by such institution, department, or activity deposited with the State Treasurer not later than the first day of the month following that in which received.

All money that may be received from the United States on account of the five percent fund on cash sale shall be placed to the credit of the permanent school fund of the state.

All money arising from collections on judgments in favor of the state, shall be transferred and paid into the permanent school fund and become a part thereof.

(1) The Board of Educational Lands and Funds is authorized and empowered to enter into agreements with the officers and agents of the United States Government for the exchange of any state educational lands lying within any federal forest or game reserve within this state for other lands of equal areas and value belonging to the United States. The board is authorized to convey any such lands to the United States by deed as provided in section 72-208, upon the execution by the United States Government of a patent to the State of Nebraska for the United States lands so exchanged.

(2) The Board of Educational Lands and Funds is authorized, upon the written approval of the Governor, to enter into agreements with individuals for the exchange of any state educational lands for other lands of equal areas or value. Before such an exchange shall be made, it shall be shown that the Board of Educational Lands and Funds will likely be benefited by the exchange.

Any lands so received and patented from the United States shall be held as a part of the educational lands of this state, and shall be subject to all existing laws pertaining to such lands; Provided, that such lands, so received in exchange, shall only be subject to lease for terms not exceeding twelve years, with the privilege of renewing for a like term in the option of the board. Such leases may also include the right to the lessee of removing all improvements he may have erected on the land.

The Board of Educational Lands and Funds is further authorized to secure from the holders of any leases of any educational lands lying in any federal forest reserve, surrenders, relinquishments, or cancellation of such leases. If the board and the holder of any such leases cannot agree upon the terms for such surrender, relinquishment, or cancellation, the board may take over the interest of such holder by the exercise of the power of eminent domain. The procedure to condemn property shall be exercised in the manner set forth in sections 76-704 to 76-724.

The appraised value of any state lands exchanged under sections 72-253 to 72-255 shall not be less than seven dollars per acre, and the appraised value of the United States land received therefor shall correspond to this requirement.

All lands, now owned or hereafter acquired by the state for educational purposes, may be sold at the expiration of the present leases. The Board of Educational Lands and Funds shall retain all mineral rights in the land sold. Prior to such sale, the land may be appraised for purposes of sale in the same manner as privately owned land by a certified general real property appraiser appointed by the board and thereafter shall be sold at public sale at not less than the appraised value. When two or more contiguous tracts are under separate leases with different expiration dates, the board may, if it is deemed to be in the best interest of the state, defer the sale of any tract having an earlier lease expiration date and may offer the tract for lease for less than twelve years to coincide with the expiring lease of the contiguous tract, in order that the contiguous lands may eventually be offered for sale on the same date.

The Board of Educational Lands and Funds shall review and set priorities for the sale of lands covered by leases expiring each year, giving the highest priority to those lands which it determines, considering all relevant factors, can be sold to the best advantage. Any leaseholder or other interested party may request that the land covered by any expiring lease be offered for sale, and the board shall give consideration to such request in deciding whether to offer such land for sale.

Educational land shall be offered for sale at public auction by a representative of the Board of Educational Lands and Funds and sold at not less than the appraised value to the highest bidder. Notice of such sale and the time and place where the same will be held shall be given by publication three consecutive weeks in some legal newspaper published in the county where the tracts of land or the lots are located or, in case no legal newspaper is published in the county, then in some legal newspaper of general circulation therein. The proof of such publication shall be made by the affidavit of the publisher or principal clerk of such newspaper or by some other person knowing about the same and shall be filed in the office of the board. When the land consists of an undivided interest in realty, an action to partition may be maintained in the same manner as provided by law for the partition of real property among several joint owners. All notices of sale shall be posted in the office of the board. The board may arrange for such commercial advertising of land sales as it deems in the best interest of the state.

Any person or entity requesting that a tract of land be sold at public auction shall file an agreement with the board to pay the appraised value or a higher value as a minimum opening bid for the land. Within sixty days after receipt by the board of the request, the board shall determine whether or not to offer the tract of land for sale at public auction with a minimum opening bid equal to that amount stated in the accepted agreement for the minimum opening bid and shall notify the person or entity requesting the auction of the board's determination prior to advertising the tract of land for sale. If the board determines to offer the tract of land for sale at public auction, the auction shall be held within one hundred twenty days after the board accepts the agreement for a minimum opening bid. If the board determines not to offer the tract of land for sale, the offering price and legal description of the tract of land shall be included in the annual report to the Legislature.

The sale shall be subject to confirmation by the board that the requirements of this section have been met. Settlement shall be made by paying cash of not less than twenty percent of the purchase price at the time of sale, and the balance shall be payable in cash within ninety days after the date of sale. If the person submitting the high bid for the land fails to pay the balance of the purchase price and complete the sale within ninety days, his or her rights under the sale, including the twenty percent downpayment, shall be forfeited by the board and a new sale shall be authorized.

If such land should not be sold according to the provisions of sections 72-208, 72-257, 72-257.01, and 72-258, then it shall be offered for lease as the Board of Educational Lands and Funds shall provide for a period of not less than three years nor more than eight years as the board, in its discretion, shall determine. No such leased land shall be subsequently offered for sale until the expiration of such lease.

Whenever a portion of the National System of Interstate and Defense Highways is constructed on school land and an interchange is constructed on such school land, the Board of Educational Lands and Funds shall offer such land for sale at public auction in such tracts as the board shall determine and sell it at not less than its appraised value. The sale shall be made subject to the rights of leaseholders, if any, and the leaseholder shall be paid for improvements and the value of the leasehold for agricultural purposes. The sale shall be made in accordance with the provisions of section 72-258.

For purposes of sales of educational lands at public auction, appraised value is the value as determined by the Board of Educational Lands and Funds.

(1) The Board of Educational Lands and Funds shall deposit the proceeds of the sales of educational lands with the State Treasurer for the benefit of the various funds as provided in this section.

(2) The proceeds of the sales of common school and saline educational lands shall be deposited with the State Treasurer for the benefit of the permanent school fund of the state.

(3) The proceeds of the sales of university educational trust lands shall be deposited with the State Treasurer for the benefit of the Permanent Endowment Fund referred to in section 85-123.

(4) The proceeds of the sales of state college educational trust lands shall be deposited with the State Treasurer for the benefit of the endowment fund referred to in section 85-317.

When any educational lands abutting on and adjacent to any city of the first or second class that are needed for the expansion of such city have been subdivided into lots for the purpose of sale, as provided by section 72-257, the Board of Educational Lands and Funds may cause a plat of such subdivision to be filed in the office of the clerk of the city together with a resolution of the board requesting annexation of the tract to the city.

Such plat shall accurately describe all subdivisions of such tract or parcel of land, numbering the same by progressive numbers and giving the dimensions in length and breadth thereof, and the breadth and courses of all streets and alleys established therein, and shall be certified to by the State Surveyor.

The city council shall, at the next regular meeting thereof after the filing of such plat, as required by section 72-259.01, and request for annexation, vote upon the question of such annexation. The vote thereon shall be spread upon the records of such city.

If a majority of all members of the council vote for such annexation, an ordinance shall be prepared and passed by the council declaring the annexation of such territory to the corporate limits of the city and extending the limits thereof accordingly. Such ordinance shall designate the name of the addition and the names of the streets therein.

There shall be filed forthwith, in the office of the register of deeds of the proper county, (1) a plat of such territory certified by the State Surveyor, (2) a certified copy of the resolution of the Board of Educational Lands and Funds approving the same and requesting the annexation, and (3) a copy of the ordinance declaring such annexation, certified under the seal of the city. Thereupon, such annexation of such adjacent territory shall be deemed complete, and the territory included and described in the plat shall be deemed and held to be a part of the city.

The filing of such plat and proceedings in the office of the register of deeds shall constitute a dedication of the streets and alleys contained therein so long as the same shall be used for such public purposes.

The lands included in the territory so annexed shall not be subject to any taxes or special assessments so long as the same remain the property of the state, but upon sale and delivery of a deed by the state to the purchaser the lands so conveyed shall forthwith be placed upon the tax list and shall be included in the next annual assessment.

Whenever the Board of Educational Lands and Funds determines, considering all relevant factors, that it would be in the best interests of the educational trust to do so, it may subdivide and plat any tract prior to offering it for sale. Such plats shall be prepared as prescribed in section 72-259.02 and shall be filed in the office of the register of deeds and such filing shall constitute a dedication of the streets and alleys shown therein so long as the same are used for such purposes.

The Game and Parks Commission is authorized to acquire title by condemnation to not more than one section or six hundred forty acres of educational lands in any calendar year for parks, recreation areas, or wildlife management areas, or any combination of these uses. The commission shall employ the procedure set forth in sections 72-213 to 72-224 to acquire such title, except that the determination of the value of the lands to be acquired shall be in the manner provided by section 72-224.03 and the value of any leasehold interests to be acquired shall be determined as provided by section 72-224.02. The Governor shall approve all such acquisitions as provided in section 37-303.

The State of Nebraska hereby adopts the Dixon and Alt survey of the school lands included in the survey made in accordance with the special Act of Congress entitled, An act providing for the resurvey of Grant and Hooker Counties in the State of Nebraska, approved August 9, 1894, as the true and correct survey of the school lands belonging to the State of Nebraska included in that survey, and hereby adopts the lines, corners and monuments made under the above special Act of Congress for Grant and Hooker Counties, Nebraska, as the true, correct and legal boundary lines of the school lands included in that survey.

The resurvey made by the United States Government of school sections sixteen and thirty-six, in townships twenty-one, twenty-two and twenty-three north, of range forty-seven, west of the sixth principal meridian, in Morrill County, Nebraska, and known as tracts numbers sixty-three and sixty-four in township twenty-one; tracts numbers sixty-five and sixty-six in township twenty-two, and tracts numbers seventy-eight and seventy-nine in township twenty-three, which surveys have been approved by the Commissioner of the General Land Office, are accepted and adopted as the true and correct lines, corners, monuments and boundaries of such school sections.

The state Board of Educational Lands and Funds may sell, at either public or private sale, and convert into money, articles of personal property acquired by the common school fund through bequest, gift, escheat or forfeiture to the State of Nebraska.

The northeast quarter of the southeast quarter of section 31, township 34, north, range 27, west of the sixth principal meridian; section 32 and lots 1 and 2, and the west half of the southeast quarter of section 33, and the west half of section 33, township 34, north, range 27, west of the sixth principal meridian; all in Cherry County, Nebraska, title to which is vested in the State of Nebraska, shall be leased by the Board of Educational Lands and Funds in the same manner as is provided for the leasing of the common school lands of the state; Provided, that the northeast quarter of the southeast quarter of section 31, township 34, north, range 27, west of the sixth principal meridian, Cherry County, Nebraska, together with all improvements thereon, may be sold by the board at public auction, as provided by section 72-258, and may be subdivided for the purpose of sale in such manner as the board may determine.

The Board of Educational Lands and Funds shall place all money received for rental of the land, described in section 72-267, in the temporary school fund and all money received from the sale of the land, authorized to be sold by section 72-267, in the permanent school fund. All money now in the hands of the State Treasurer, received heretofore for the rental of such lands, shall be transferred to the temporary school fund.

The Board of Educational Lands and Funds is authorized and directed to sell section thirty-six, township thirty-two north, range forty-nine, west of the sixth principal meridian, Dawes County, Nebraska, reserving mineral, oil, and gas rights, to the Game and Parks Commission on payment of forty thousand dollars. All mineral extraction and exploration on such land shall be conducted in a manner approved by both the Board of Educational Lands and Funds and the Game and Parks Commission.

Agreements involving the production of wind or solar energy on lands under the control of the Board of Educational Lands and Funds shall be regulated by sections 72-270 to 72-274.

For purposes of sections 72-270 to 72-274:

(1) Agreement means (a) for purposes of a solar energy system, a solar agreement as defined in section 66-909 and (b) for purposes of a wind energy conversion system, a wind agreement as defined in section 66-909.04;

(2) Board means the Board of Educational Lands and Funds;

(3) Lessee means any individual, corporation, or other entity that enters into an agreement with the board;

(4) Solar energy means radiant energy, direct, diffuse, or reflected, received from the sun at wavelengths suitable for conversion into thermal, chemical, or electrical energy; and

(5) Wind energy has the definition found in section 66-909.01.

The board may authorize agreements for the use of any school or public lands belonging to the state and under its control for exploration and development of wind energy or solar energy for such durations and under such terms and conditions as the board shall deem appropriate, except that such agreements shall comply with sections 66-901 to 66-914. In making such determinations, the board shall consider comparable arrangements involving other lands similarly situated and any other relevant factors bearing upon such agreements.

(1) If an agreement relating to wind energy or solar energy is authorized by the board on land already being leased for agricultural or other purposes by a prior lessee, the existing rights of the prior lessee shall not be impaired, and the board shall reduce the rental amount due from such prior lessee in proportion to the amount of land that is removed from use as a result of the agreement.

(2) A lessee for agricultural or other purposes shall be compensated for all damages to personal property owned by such lessee or to growing crops, including grass, caused by operations under a concurrent agreement regarding such land for wind energy or solar energy purposes, and the board shall require the lessee under the agreement to provide such insurance and indemnity agreements which the board determines are necessary for the protection of the state and its lessees.

(3) If an agreement relating to wind energy or solar energy is authorized by the board on land concurrently being leased for agricultural purposes, the lessee for agricultural purposes shall have priority as to the use of the water on the land, but lessees for other purposes, including parties to agreements relating to wind energy or solar energy, shall be allowed reasonable use of the water on the land.

The board may adopt and promulgate such rules and regulations as it shall deem necessary and proper to regulate the agreements relating to wind energy or solar energy exploration and development on school and public lands pursuant to sections 72-270 to 72-274 and to prescribe such terms and conditions, including bonds, as it shall deem necessary in order to protect the interests of the state and its lessees.

All common school, university, normal, saline or other public lands, lakes, lake beds, river beds and channels, belonging to the state or under its control, and all lands which may hereafter be so owned, and all of such lands which have heretofore been sold or conveyed by the state or by its authority, in the conveyance of which there has been reserved mineral or other valuable substances therein, are reserved to the state, as well as lands that may hereafter be sold, and lands hereafter acquired by the state and, except as to oil and gas which are controlled by the provisions of sections 72-901 to 72-911, shall be included within the provisions of sections 72-301 to 72-314, and shall be open to the prospecting for and development of minerals, potash and other valuable substances upon conditions provided in sections 72-301 to 72-314.

Any person or association of persons, corporate or otherwise, desiring to obtain the right to prospect for and develop the minerals or valuable substances upon or in any of the public lands or waters of the state, except oil and gas, may do so under the provisions of sections 72-301 to 72-314. It shall be unlawful to prospect upon or in any of such public lands or waters without a lease or for anyone to interfere with the functions and duties of the state surveys having in charge the investigations of the natural resources of the state. The Conservation and Survey Division of the University of Nebraska at the request of the Board of Educational Lands and Funds shall make investigations and reports concerning state lands.

Any qualified person or association desiring a prospector's right shall make application, giving the designation of the land by legal description, to the Board of Educational Lands and Funds, with the proper fees, and the board shall issue a lease therefor. If the applicant is an individual, the application shall include the applicant's social security number. The board may exercise discretionary power, and be guided by best public policy in granting leases, and may adopt rules, regulations, or resolutions necessary to expedite production, and to best preserve the interests and integrity of the state, and to prevent control by monopolies and alien enemies. No person shall be permitted to enter for such mineral purposes more than one section of land, and no development company or association shall be permitted to acquire in the aggregate more than ten thousand acres of state land by assignment or otherwise. Leases shall be for a term of not to exceed three years, subject to renewal as provided in section 72-307.

The owner of the lease shall be required, in the case of potash, salines, silica, volcanic ash, sand, gravel, clay, fuller's earth, and tripoli, to report within thirty days after the issuance of such lease, and to begin construction of necessary works or the installation of necessary machinery, for the physical development of the area, within ninety days after the issuance of a lease. In the case of minerals, substances not above enumerated, and coal, the lessee shall report within six months after issuance of the lease, and begin development operations within one year from the date of the lease. The lessee shall make reports to the Board of Educational Lands and Funds showing the progress of the work on or before December 1 of each year.

Failure to progress with due diligence, or failure to make reports regularly as provided, or special reports when requested, or the filing of a statement which is untrue as to material facts, will subject the lease to forfeiture, and the termination of the rights of the lessee upon an order of the Board of Educational Lands and Funds.

Upon the discovery of potash or other minerals or substances in commercial quantities, the lessee shall report the same to the Board of Educational Lands and Funds within thirty days, together with a statement showing how soon facilities necessary for production and marketing may be completed. If the board deems there is an unnecessary delay between the time of discovery and the time of production, a showing may be required as to the cause of the delay and, if it be found to be out of proportion to a reasonable length of time, the board may demand more rapid development or the surrender or cancellation of the lease.

The lessee may have a right to the renewal of the lease upon the same terms as provided in section 72-303, so long as such minerals or other valuable substances are produced in paying quantities; Provided, such leases shall in no instance contain any provision abridging the rights of future legislatures to make such laws as may in their judgment be necessary to conserve the interests of the state. If the lessee shall have made extensive tests, or a showing satisfactory to the Board of Educational Lands and Funds that he has proceeded in good faith, even though no successful production has resulted, the board may, upon such showing, grant an extension or renewal for further prospecting.

A mineral prospector's lease shall be issued to the highest and best bidder. The lease issued shall provide that the royalty shall be not less than five percent, in addition to the rent to be determined by the Board of Educational Lands and Funds after examination and report by the Conservation and Survey Division of the University of Nebraska and before leasing. Such minerals or substances shall be set apart in pipelines, tanks, or other receptacles, suitable for receiving the same, to the credit and benefit of the state or, at the option of the state and by the approval of the board, the lessee shall pay the board each thirty days the gross market value thereof in cash. The state shall reserve the right to fully use and enjoy, for tillage or other agricultural use, the area leased for minerals, except such parts thereof as may be necessary for mining and development purposes, and a right-of-way over and across the premises to the place of mining or operating, and for pipelines. The lessee shall pay for all damages to growing crops, caused by such operations, and for the use of the land necessarily occupied. The lessee shall have the privilege of using sufficient water from the premises leased to run necessary boilers and engines incident to and used in the operations of the drills, mines, or development of products covered by the lease, and the right to remove the machinery, fixtures, and buildings placed on the premises by the lessee or those acting under the lessee. The state, or its authorized agent, may pay for and retain any structures or improvements sought to be removed by the lessee upon the abandonment, expiration, or cancellation of the lease.

Where two or more applications are received for the same land, the rights thereon may be awarded to the legally qualified applicant making the highest and best bid, to be determined by taking into consideration both the bonus and royalty, the award being made after proper legal notice in such manner as the Board of Educational Lands and Funds shall determine best calculated to protect public interests.

The right of the state, or its authorized agents, to enter upon its own lands, and to remove therefrom any substances necessary for road construction, or in structures of public buildings, or other public or general purposes, shall not be denied or abridged by any lease granted hereunder.

No assignment shall be valid unless it has the approval of the Board of Educational Lands and Funds and has been recorded in the office of the board, and, if the grantee is otherwise legally disqualified, approval by the board, or recording, will not make such assignment valid. Any association, corporate or otherwise, operating on state lands, transferring its interests or capital stock, or more than ten percent thereof, to any association or corporation which is legally disqualified for holding, or which has its full quota of state leases, will render the leases it holds void upon an order of the state board or act of the Legislature. The purpose of sections 72-301 to 72-314 is to prevent for all times, directly and indirectly, the monopolization of natural resources of the State of Nebraska.

Alkali, potash, or saline lakes, ponds, or marshes, located partly upon state lands and partly upon private lands, shall be measured, tested, and analyzed by the Conservation and Survey Division of the University of Nebraska which shall report to the Board of Educational Lands and Funds, and the proportion of the area and content belonging to each owner shall be determined from such report. If the state lessees and private owners or lessees are unable to agree for joint operation of such area, no alkali, potash, or salines in solution shall be removed from such ponds, lakes, or marshes until after thirty days' notice by certified or registered mail to all parties concerned. Any or all parties may then operate by rendering monthly an accounting to the board and by paying to the county treasurer in the county in which the land is located, for the state educational funds, the royalty due the state, as determined by the board. The state shall, at all times, be permitted to examine the books and methods of bookkeeping with relation to the accounts in which the state is interested and to furnish, if deemed necessary by the board, assistants to make analyses or for checking the quality and quantity of minerals or substances removed.

Any person operating pumps, or providing channels, or altering natural conditions in any way, by which the waters and valuable substances upon or in public lands and waters of the state are taken, drained or removed, without first securing approval of the Board of Educational Lands and Funds, shall be deemed guilty of a Class II misdemeanor and subject to an additional fine equal to the value of the product taken.

Rules may be adopted by the Board of Educational Lands and Funds found necessary for carrying out the purposes and provisions of sections 72-301 to 72-314, and such rules, where not in conflict with said sections, shall have the same force and effect.

Upon filing, with the Governor, a petition signed by one hundred qualified electors of any county wherein is situated in whole or in part an abandoned federal fort suitable for preservation as a historical site for memorial and state park purposes, praying for the creation and establishment of Fort ......... Preservation, Restoration and Development Board, hereinafter called board, the Governor shall, within thirty days after receiving such petition, select two residents of the county wherein the fort site, or a major portion of the fort site, is located, and one resident of an adjoining county, who shall act as trustees on the board. The Governor shall notify in writing forthwith the first trustees selected by him to serve on the board, by communication addressed through the mail to each of them. The Governor shall forward a copy of his letters of appointment to the county treasurer of the county in which the fort or a major portion of the fort site is located, who acts as treasurer ex officio of the board as provided in section 72-416.

The term of office of the trustees on the board shall be for a period of three years, except the first trustees on the board, who shall be appointed by the Governor as follows: One trustee for one year, one trustee for two years, and one trustee for three years. Each of the trustees first or thereafter appointed shall be a person who is interested in the preservation, restoration and development of the fort property as a memorial to Nebraska pioneers, and as a reservation to preserve the ideals of Nebraska's early settlers as a state park, or other appropriate historical memorial site. When the respective terms of office of the first trustees appointed to the board shall expire, their successors shall be selected by the county board of the county wherein the fort site or a major portion of the fort site is located; and the trustees appointed to the board shall each hold office until his successor is appointed and qualified.

The board shall keep a minute book of its proceedings, which shall be open at all reasonable times to public inspection. Vacancies appearing on the board shall be filled by the county board in like manner as regular appointments to the board are made.

The board shall maintain its office or principal place of business in the office of the county clerk of the county where its treasurer has his or her office and shall hold its meetings, which shall be open to the public, in the district courtroom of such county. The minute book of the board and all other papers, records, or correspondence shall be kept on file and preserved by its secretary in the office of the county clerk. The first board shall organize within ten days after the date of its written notice of appointment by the Governor. The county treasurer shall, upon receipt of his or her copy of the letters of appointment from the Governor, issue a call for the initial meeting of the trustees for a day and hour certain, shall call the meeting to order, shall act as temporary chairperson, shall examine and verify the credentials of the Governor's appointees to the board with his or her copy thereof, and shall deliver all documents of credentials to the secretary of the board when he or she is later chosen. The appointees shall select from their own number a chairperson and a secretary, whose terms of office shall be for a period of one year. Each year thereafter the board shall hold its annual meeting and shall meet and organize for the ensuing year at the place designated in this section for holding its regular meetings on the day and hour prescribed by the bylaws. Notice of the time and place of holding the annual meeting of the board shall be given by the secretary by publication one time in a legal newspaper published in and of general circulation in the county or, if none is published in the county, in a legal newspaper of general circulation in the county not less than ten days before the day when the annual meeting is held. The chairperson and secretary shall hold office until their successors are selected and qualified.

All trustees comprising the board shall take an oath in writing in such form as the county attorney of the county shall provide and approve, faithfully to execute the duties and trusts committed to their care and management, and to dispose of the funds and income and corpus of such trusts in conformity with sections 72-407 to 72-420 and the wishes expressed in the instruments creating the trust estates.

The boards created and governed by sections 72-407 to 72-420 shall be bodies corporate and politic, and may sue and be sued, may contract or be contracted with; may acquire, hold, mortgage, and convey property, real or personal, directly or indirectly, for the purpose of acquiring abandoned federal fort sites and preserving, restoring, or developing the same in keeping with the intent and purpose of the sections above specified; may take private property for public use in acquiring such fort sites; may exercise the power of eminent domain so granted in the manner set forth in sections 76-704 to 76-724; may exercise all ancillary powers to carry into force and effect all powers granted in general terms; may adopt bylaws not inconsistent with the sections above specified to assist them in carrying out their functions and duties specifically granted herein; may receive and safeguard donations, gifts in cash or its equivalent, and donations in trust subservient to the uses stipulated by donors; may cooperate with and enter into contracts with the United States of America or any of its bureaus, divisions, or agencies, for the acquisition, restoration, development, and maintenance of abandoned fort sites, for the repair of existing buildings, and for the construction of buildings and other improvements thereon; may issue membership or foundation certificates, and receive the proceeds thereof under such terms and conditions as provided in the bylaws; and may issue revenue bonds for the purpose of effectuating the intent of the sections above specified in such method or manner as the bylaws shall provide.

Full and complete acceptance and assent is made and given by the State of Nebraska to all and every one of the terms and conditions set forth in the Acts of Congress which offer aid to the state for the agencies of the state government, including boards created by section 72-407, by way of grants in aid of construction of public buildings for the preserving, restoring and developing of abandoned federal fort sites.

The board of trustees shall have power to pass bylaws for the regulation of its business and affairs, and in such bylaws shall provide for the appointment or employment of such agents, servants and employees, subject to the order of the board, as it may find necessary or expedient in the conduct of its affairs and business, and shall fix the compensation and term or terms of service of the agents, servants and employees so appointed.

The secretary of the board shall keep the minutes of the board and shall perform such other services as may be required by him of the board, and may receive such compensation as may be fixed by the board from time to time.

The treasurer of the county in which the board has its principal place of business and operates, shall act as treasurer of the board ex officio, and he shall receive such compensation for such services as may be fixed from time to time by the board. He shall be liable on his official bond for the safekeeping of board funds, and his bond shall be increased or diminished from time to time as the condition, amount and safety of the funds of the board in his hands may require.

The board shall keep full and complete minutes of all transactions occurring at its meetings, such minutes to be kept in a well-bound book, which shall be open to the inspection of the public at all reasonable times, and the board shall also keep a well-bound book or books in which shall be recorded all instruments, documents, resolutions, bylaws, or other writings under which title to money or property is given, granted, taken, or held for the use of the board, and the same shall be a public record. The board shall also keep books of account that show all receipts and disbursements and the true condition of the funds and trusts committed to its charge. Such books of account shall be audited by the person conducting the audit pursuant to section 23-1608 and by the county clerk whenever, and as often as, an audit is made of all accounts of the county. An audit of the board's books of account may be ordered by the county board at any time it deems that such an audit is advisable.

The county attorney of the county in which the board operates shall act as legal advisor for the board without extra compensation; Provided, the board may employ from time to time for special pieces of legal work additional counsel, whenever it deems such employment necessary for the administration of its affairs and business.

The trustees composing the board shall serve without compensation but may appropriate and disburse sufficient of the funds in their control by filing a request for such trust funds, to be ordered, sworn to, and allowed by the trustees as other requests for payment from such county, to pay the expenses of administering their trusts.

The trustees composing the board shall each give a surety bond in the sum of one thousand dollars running to the county as obligee, conditioned upon the faithful performance of their duties and responsibilities as provided in sections 72-407 to 72-420 and under the bylaws adopted pursuant to such sections. The bond, when approved by the county attorney of the county as to form and substance, shall be filed and kept current in the office of the county clerk. All donations, gifts, or other money that comes into the hands of the board under the terms of such sections shall be forthwith delivered to the county treasurer who shall deposit, safeguard, and disburse the same from a fund of the county to be known as the Fort ............. Fund. The county treasurer shall make disbursements from such fund only upon receipt of a proper warrant or voucher signed by the chairperson and attested by the secretary of the board. The board shall issue no voucher for the payment of any money from such fund unless there is presented to it a request for payment or reimbursement duly verified by the oath of the requester and unless the request so verified is approved by the affirmative action of two-thirds of the members-elect of the board at a regular meeting.

All the saline lands of which the title is vested in the state shall be leased by the Board of Educational Lands and Funds.

The Board of Educational Lands and Funds shall place all money received for rental of saline lands in the temporary school fund of the state, subject to the law governing such temporary school fund.

The use heretofore made by the Board of Educational Lands and Funds of rentals received from saline lands, by placing them in the temporary instead of the permanent school fund, is validated and approved.

If the lessee defaults in the payment of his interest or rental for more than one year, the Board of Educational Lands and Funds may cause notice to be given and a forfeiture declared as provided by law regulating the leasing of school lands, and when so forfeited the land shall be again offered for lease after having been advertised as provided by law.

(1) All leases shall be made at a rental of six percent on the appraised value, payable annually in advance. The lessee shall pay the appraised value of the improvements on such land, which amount shall be immediately paid to the owner or owners of the improvements. Applications for the lease of any such lands not leased at public offering may be made at any time to the Board of Educational Lands and Funds; Provided, if there are two or more persons wishing to lease the same land, the board shall auction off and lease the land to the person who, in addition to the six percent rental, will pay the highest cash bonus for the lease.

(2) Each lease, referred to in subsection (1) of this section, shall contain a covenant or contract that the land contained in such lease may be appraised every five years. At the expiration of twelve years, the lessee shall deliver up the said land to the state; Provided, any lessee of saline lands may apply in writing to the chairman of the county board to have the lands embraced in such lease, or any part thereof, appraised for the purpose of sale, and when so appraised, the saline lands embraced in such application shall become subject to all the provisions governing the sale of educational lands belonging to the state, except as provided in sections 72-501 to 72-504.

(1) Concurrent jurisdiction over crimes and offenses under the laws of the state shall be ceded to the United States over and within all the lands dedicated to national park purposes in the following tracts:

(a) The Scottsbluff National Monument;

(b) The Agate Fossil Beds National Monument; and

(c) The Homestead National Monument.

(2) The concurrent jurisdiction ceded by subsection (1) of this section shall be vested upon acceptance by the United States by and through its appropriate officials and shall continue as long as the lands within the designated areas are dedicated to park purposes.

(3) The Governor is hereby authorized and empowered to execute all proper conveyances necessary to grant the cession provided in this section upon request of the United States by its appropriate officials.

(4) The State of Nebraska shall retain concurrent criminal jurisdiction with the United States over all lands affected by this section.

The city of Lincoln is declared to be the permanent seat of government of the State of Nebraska, at which all the public offices of the state shall be kept and at which all the sessions of the Legislature shall be held.

Sections 72-701.01 to 72-701.06 shall be known and may be cited as the Nebraska Emergency Seat of State Government Act.

As used in sections 72-701.01 to 72-701.06, the term attack means any action or series of actions by an enemy of the United States, causing, or which may cause substantial injury or damage to civilian persons or property in the United States in any manner, whether by sabotage, or by the use of bombs, missiles or shellfire, or by atomic, radiological, chemical, bacteriological or biological means, or by other weapons or processes.

Whenever, due to an emergency resulting from the effects of an enemy attack or the imminent threat thereof, it becomes imprudent, inexpedient or impossible to conduct the affairs of the state government at the permanent seat of state government in the city of Lincoln, the Governor, by proclamation and as often as the exigencies of the situation may require, shall designate a temporary location or locations for an emergency seat of state government at such place or places, within or without this state, as he may deem proper and advisable under the circumstances, and he forthwith shall take such action and shall issue such orders and directives as may be necessary for the prompt and orderly transition of the affairs of the state government to such temporary location or locations. Such temporary location or locations shall be and remain the emergency seat of state government until another temporary location or locations shall be designated in the same manner, or until the Governor, by proclamation, or the Legislature, by resolution approved by the Governor, shall declare the emergency to be ended, at which time the seat of state government shall be returned to its permanent location in Lincoln, or shall be removed to such other city in this state as shall be designated the new permanent seat of state government, in accordance with the Constitution of Nebraska and general laws of this state.

During such time as such temporary location or locations shall remain the emergency seat of state government, all official acts done or performed thereat by or on the part of any officer, office, department, division, commission, court or board, or any other agency or authority of this state, including the Legislature, whether in regular, extraordinary, or emergency session, and all proceedings or court actions involving the state or its agencies or authorities, now or hereafter required to be brought or conducted at the seat of state government, shall be as valid, effective, and binding as if regularly done, performed, brought, or conducted at the permanent seat of state government.

(1) The official designation of the location or locations of the emergency seat of state government, and the removal thereto of the government of the state, shall in no event precede: (a) The inception of an attack; or (b) the inception of a strategic or tactical warning period duly proclaimed by the President of the United States, the Governor of Nebraska, or by both such officials, and based on the imminence of an attack.

(2) Prior to any such attack or warning period, however, and subject to such rules and regulations as the Governor may promulgate, such preliminary plans and preparations may be made as shall be deemed necessary and advisable to facilitate the subsequent accomplishment, during such emergency, of the actions provided in sections 72-701.01 to 72-701.06. Such planning and preparations may include any or all of the following steps, but shall not necessarily be limited thereto: (a) Selection of a tentative location or locations for the emergency seat of state government in the event that, as provided in subsection (1) of this section, it subsequently becomes necessary and advisable to designate such tentative location or locations as the official location or locations of the emergency seat of state government; (b) negotiation with local authorities, property owners, and other proper persons, for the possible use and occupancy of specific buildings or areas or buildings and areas, at or near such tentative location or locations, for the purposes mentioned in sections 72-701.01 to 72-701.06 during a subsequent emergency; and (c) storing and stockpiling, at or near the tentative location or locations, of essential supplies and equipment, and vital records or duplicates thereof which would be necessary to permit the continuity of the governmental operations of the state in an emergency.

(3) Prior to an attack or warning period, as set out in subsection (1) of this section, neither the state, nor any official or agency thereof, shall, except only for the storage and safeguarding of vital records and duplicates thereof, purchase, contract for the purchase of, or obligate funds of the state for the purchase of any real estate or appurtenance thereto, for subsequent use as an emergency seat of state government.

The provisions of sections 72-701.01 to 72-701.06, in the event they shall be employed, shall control and take precedence over any provision of any other law to the contrary or in conflict therewith; Provided, that nothing herein shall be construed as contravening, suspending, or otherwise affecting the provisions of the Constitution of Nebraska or general laws of this state relating to the permanent relocation of the seat of state government.

A Department of Correctional Services adult correctional facility of the state shall be located upon a reservation in the city of Lincoln or upon lands belonging to the state and adjacent to the city of Lincoln.

All monuments and memorials now fixed to the building or the grounds of the State Capitol shall be regarded as permanent fixtures, and shall not be removed without the consent of the Legislature.

(1) There is hereby created a Nebraska Hall of Fame Commission, which shall consist of seven members, six of whom shall be appointed by the Governor. The Director of the Nebraska State Historical Society shall be the seventh member of the commission and shall serve as secretary of the commission. The Governor shall appoint no more than three members of the commission from the same political party. The Governor shall consider gender and ethnic diversity and the person's appreciation for the history and culture of the state when making the appointments. In making the initial appointments of the commission, the Governor shall appoint two members for a term of two years, two members for a term of four years, and two members for a term of six years. As the terms of the members expire, the Governor shall appoint or reappoint a member of the commission for a term of six years to succeed the member whose term expires. The members shall serve without compensation. The Governor shall be an ex officio member of the commission.

(2) The Nebraska State Historical Society shall be responsible for the administration of the Nebraska Hall of Fame Commission.

The Nebraska Hall of Fame shall be located in the State Capitol and other locations as approved by the Nebraska Hall of Fame Commission.

The purpose of the Nebraska Hall of Fame shall be to bring to public attention and to recognize officially those people who, in their lives, have achieved prominence and who were outstanding Nebraskans. For the purpose of this section Nebraskans shall mean those (1) who were born in Nebraska, (2) who gained prominence while living in Nebraska, or (3) who lived in Nebraska and whose residence in Nebraska was an important influence on their lives and which contributed to their greatness.

The Nebraska Hall of Fame Commission shall adopt and promulgate rules and regulations to establish criteria of eligibility for inclusion in the Nebraska Hall of Fame and to establish standards for the creation, design, size, configuration, and placement of busts or other appropriate objects.

(1) Except as provided in subsection (2) of this section, the Nebraska Hall of Fame Commission shall not name more than one person to the Nebraska Hall of Fame during each five-year period beginning on and after January 1, 2005. During the first two years of each five-year period, the commission shall receive nominations of candidates to be named to the Nebraska Hall of Fame. The commission shall review the nominations and may select the finalists for induction. During the subsequent two years of each five-year period, the commission shall review the finalists, if any, and shall hold public hearings regarding the finalists in each of the congressional districts. After the hearings, the commission may select one finalist for induction. If a finalist is selected for induction, the commission shall name him or her to the Nebraska Hall of Fame during the final year of each five-year period. No individual shall be named to the Nebraska Hall of Fame until at least thirty-five years after such person's demise.

(2) Notwithstanding the limitations imposed by subsection (1) of this section, the commission shall procure an appropriate plaque upon which shall be placed the names of each Nebraskan awarded the Medal of Honor as a result of such person's services in the armed forces of the United States. Such plaque shall have sufficient space for listing the names of persons who shall be awarded the Medal of Honor in the future. The plaque shall have a suitable place in the State Capitol.

The Nebraska Hall of Fame Commission shall have power:

(1) To contract for the making and placing of busts or other appropriate objects commemorating the persons chosen to be placed in the State Capitol or other location as approved by the commission. No busts or other appropriate objects commemorating the persons chosen shall be placed in the State Capitol except upon the approval of the Nebraska Capitol Commission; and

(2) To receive and disburse gifts.

There is hereby created the Hall of Fame Trust Fund to be administered by the Nebraska Hall of Fame Commission for the purpose of the creation, design, size, configuration, and placement of busts or other appropriate objects as authorized in section 72-729. Deposits to such fund shall include money received from public donation and from funds appropriated specifically for such purpose by the Legislature. The State Treasurer shall transfer ten thousand dollars from the General Fund to the Hall of Fame Trust Fund annually beginning with fiscal year 2021-22, between July 1 and July 30 of each year, on such date as directed by the budget administrator of the budget division of the Department of Administrative Services, except that if the balance of the Hall of Fame Trust Fund exceeds fifty thousand dollars on the last day of the preceding fiscal year, such transfer shall not take place. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

The State Capitol Restoration Fund is created. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Any public building that is erected or repaired and for which an appropriation is made by the Legislature shall be constructed or repaired in a complete manner within the limits of such appropriation. Except as provided in sections 72-811 to 72-818 and 79-11,109, no building shall be changed or diverted from the use or purpose, kind, or class of building from that for which the appropriation was originally made.

Any officer or board charged with the general supervision of the erection and repair of the public buildings belonging to the state shall prepare or have prepared plans and specifications of the building to be erected or repaired, and such plans shall be prepared in such a manner that the completed building, landscaping, and parking facilities, including the cost of equipment and fixtures necessary therefor, or the completed repair cost shall not exceed the amount authorized for that purpose. Construction may be commenced after contracts are awarded, but the obligation of the state in any biennium under such contracts shall not exceed the amount appropriated for that purpose in such biennium. When contracts are submitted to public bidding and a certain item is specified by trade name, make, or catalog number, a bid for the furnishing of an alternate item, equal thereto in the opinion of the architects and officers or board involved and submitted within the time limits set for receipt of bids, shall not be rejected solely on the basis that such item was not approved prior to the submission of bids. No officer, board, architect, superintendent, or contractor shall change any plan for any public building, for which an appropriation is made by the Legislature, so as to exceed such appropriation, and any officer, board, architect, superintendent, or contractor who violates any of the provisions of this section and section 72-801 shall be deemed guilty of a Class II misdemeanor.

(1) The state and any department or agency thereof, subject to the powers of the state building division of the Department of Administrative Services, shall have general charge of the erection of new buildings which are being erected for such department or agency, the repair and improvement of buildings under the control of such department or agency, including fire escapes, and the improvement of grounds under the control of such department or agency.

(2) Buildings and other improvements costing more than fifty thousand dollars shall be (a) constructed under the general charge of the department or agency as provided in subsection (1) of this section and (b) let by contract to the lowest responsible bidder after proper advertisement as set forth in subsection (4) of this section.

(3) The successful bidder at the letting shall enter into a contract with the department or agency, prepared as provided for by subsection (4) of this section, and shall furnish a bond for the faithful performance of his or her contract, except that a performance bond shall not be required for any project which has a total cost of one hundred thousand dollars or less unless the department or agency includes a bond requirement in the specifications for the project.

(4) When contracts are to be let by the department or agency as provided in subsection (2) of this section, advertisements shall be published in accordance with rules and regulations adopted and promulgated by the state building division stating that sealed proposals will be received by the department or agency at its office on the date therein stated for the furnishing of materials, the construction of buildings, or the making of repairs or improvements and that plans and specifications can be seen at the office of the department or agency. All bids or proposals shall be accompanied by a certified check or by a bid bond in a sum fixed by the department or agency and payable thereto. All such contracts shall be awarded to the lowest responsible bidder, but the right shall be reserved to reject any and all bids. Whenever any material described in any contract can be obtained from any state institution, the department or agency shall exclude it from such a contract.

(1) Any new state building shall meet or exceed the requirements of the 2018 International Energy Conservation Code published by the International Code Council.

(2) Any new lighting, heating, cooling, ventilating, or water heating equipment or controls in a state-owned building and any new building envelope components installed in a state-owned building shall meet or exceed the requirements of the 2018 International Energy Conservation Code.

(3) The State Building Administrator of the Department of Administrative Services, in consultation with the Department of Environment and Energy, may specify:

(a) A more recent edition of the International Energy Conservation Code;

(b) Additional energy efficiency or renewable energy requirements for buildings; and

(c) Waivers of specific requirements which are demonstrated through life-cycle cost analysis to not be in the state's best interest. The agency receiving the funding shall be required to provide a life-cycle cost analysis to the State Building Administrator.

The 2018 International Energy Conservation Code, published by the International Code Council, applies to all new buildings constructed in whole or in part with state funds after July 1, 2020. The Department of Environment and Energy shall review building plans and specifications necessary to determine whether a building will meet the requirements of this section. The department shall provide a copy of its review to the agency receiving funding. The agency receiving the funding shall verify that the building as constructed meets or exceeds the code. The verification shall be provided to the department. The Director of Environment and Energy may, in consultation with the State Building Administrator of the Department of Administrative Services, adopt and promulgate rules and regulations to carry out this section.

The enforcement provisions of Chapter 1 of the 2018 International Energy Conservation Code, published by the International Code Council, shall not apply to buildings subject to section 72-804.

The Legislature finds that:

(1) The preservation of historic structures will enrich life for Nebraska's citizens both today and for future generations;

(2) Many historic structures are owned by the state; and

(3) Efforts should be made by the state to identify, preserve, maintain, and restore such historic structures whenever possible.

For purposes of sections 72-808 to 72-810, historic structure shall mean any building significant in American history or architecture on a local, state, or national level.

Improvements, alterations, or changes made by the state, its agencies, or departments on or to any historic structure owned by the State of Nebraska shall be in keeping with its historical or architectural significance. Such alterations shall be made according to standards set by the United States Department of the Interior. No alteration shall be made without review and comment by the State Historic Preservation Officer. If the state, its agencies, or departments do not agree with the review and comment of the officer, a final determination as to what action must be followed by the state shall be made by the Governor. A state agency or department shall only be required to comply with this section if it has been notified in writing by the officer that a particular structure is a historic structure.

For purposes of sections 72-811 to 72-818:

(1) Committee shall mean the Vacant Building and Excess Land Committee;

(2) Excess, referring to land, shall mean (a) unused in whole or in part by any state agency for the purposes for which the land was acquired or received or (b) without current defined plans by any state agency for the use of the land for the agency's mission for the next fiscal year; and

(3) Vacant, referring to buildings, shall mean (a) unoccupied, (b) unused in whole or in part by any state agency for the purposes for which the building was designed, intended, or remodeled, or (c) without current defined plans by any state agency for the use of the building for the agency's mission for the next fiscal year.

The Vacant Building and Excess Land Committee is hereby created. The committee shall be composed of the Director of Administrative Services, the State Building Administrator, and the administrator of the Task Force for Building Renewal created pursuant to section 81-174. When reviewing and considering action to be taken in regard to a particular building or piece of land, the committee shall also include a representative of the state agency responsible for the building or land as a nonvoting member.

(1) Each state agency shall by September 15 of each year submit to the State Building Administrator a list of all state-owned buildings and land for which it is responsible and shall note the current and planned uses of each building and parcel of land. The State Building Administrator shall compile the information on state-owned buildings and land and provide it, along with any other information or recommendations he or she may consider relevant to the purposes of sections 72-811 to 72-818, to the Vacant Building and Excess Land Committee and to the Legislative Fiscal Analyst. The information provided to the Legislative Fiscal Analyst shall be submitted electronically.

(2) The committee shall meet to review the information and consider further action or possible amendments to orders made pursuant to this section. If the committee determines that there is reason to believe that any particular state-owned building or piece of land is vacant or excess, the committee shall review the status of the building or land and by majority vote determine whether it should be declared vacant or excess.

(3) If the committee declares a building or land to be vacant or excess, it shall order either maintenance of the building or land by the state building division of the Department of Administrative Services or the disposal of the building or land through sale, lease, demolition, or otherwise. Any order for disposal of a building may include related lands. In determining the appropriate action to be taken in regard to a building or land, the committee shall consider the benefits to the state of the alternative possible actions, including cost-effectiveness, other possible future uses of the building or land for state purposes, and the necessity or utility of the building or land for the furtherance of existing or planned state programs.

When a building or land is declared vacant or excess by the committee, the committee shall certify to the Director of Administrative Services its determination and order in regard to the building or land. All responsibilities for and records of ownership of the building or land and all records of maintenance of the building or land shall be transferred as soon as possible to the Department of Administrative Services.

If the order includes the sale, lease, or other disposal of any building or land as an appropriate action, the director may execute any quitclaim deed, lease, or other instrument necessary to sell, lease, or dispose of the building or land. The director may reserve, in the best interest of the state, an easement, license, or other interest in the building or land for the state in such sale, lease, or disposal. The director may also trade the building or land for other property needed by the state. The director may, at the expense of the state agency formerly responsible for the building or land, remove or order the agency to remove any movable property not attached to the building or land.

(1) The state building division of the Department of Administrative Services shall be responsible for the sale, lease, or other disposal of a building or land, whichever action is ordered by the committee.

(2) If a building is to be demolished, section 72-810 shall not apply, but the state building division shall notify the State Historic Preservation Officer of such demolition at least thirty days prior to the beginning of the demolition or disassembly so that the officer may collect any photographic or other evidence he or she may find of historic value.

(3)(a) If a building or land is to be sold or leased, the state building division shall cause an appraisal to be made of the building or land. The sale, lease, or other disposal of the building or land shall comply with all relevant statutes pertaining to the sale or lease of surplus state property, except that if the state building division fails to receive an offer from a state agency in which the agency certifies that it (i) intends to use the building for the purposes for which it was designed, intended, or remodeled or to remodel the building for uses which will serve the agency's purposes or (ii) intends to use the land for the purposes for which it was acquired or received, the state building division shall then notify the Department of Economic Development that the building or land is available for sale or lease so that the department may refer to the state building division any potential buyers or lessees of which the department may be aware. The state building division may then sell or lease the building or land by such method as is to the best advantage of the State of Nebraska, including auction, sealed bid, or public sale and, if necessary, by private sale, but in all situations only after notice of the property sale is publicly advertised on at least two separate occasions in the newspaper with the largest circulation in the county where the surplus property is located and not less than thirty days prior to the sale of the property. The state building division may use the services of a real estate broker licensed under the Nebraska Real Estate License Act. Priority shall be given to other political subdivisions of state government, then to persons contracting with the state or political subdivisions of the state who will use the building or land for middle-income or low-income rental housing for at least fifteen years, and finally to referrals from the Department of Economic Development.

(b) When a building or land designated for sale is listed in the National Register of Historic Places, the state building division, in its discretion and based on the best interests of the state, may follow the procedure outlined in subdivision (3)(a) of this section or may sell the building or land by any method deemed in the best interests of the state to a not-for-profit community organization that intends to maintain the historic and cultural integrity of the building or land.

(c) All sales and leases shall be in the name of the State of Nebraska. The state building division may provide that a deed of sale include restrictions on the building or land to ensure that the use and appearance of the building or land remain compatible with any adjacent state-owned property.

(d) Except as otherwise provided in subsection (4) of this section, the proceeds of the sale or lease shall be remitted to the State Treasurer for credit to the Vacant Building and Excess Land Cash Fund unless the state agency formerly responsible for the building or land certifies to the state building division that the building or land was purchased in part or in total from cash, federal, or revolving funds, in which event, after the costs of selling or leasing the building or land are deducted from the proceeds of the sale or lease and such amount is credited to the fund, the remaining proceeds of the sale or lease shall be credited to the cash, federal, or revolving fund in the percentage used in originally purchasing the building or land.

(4) Any state-owned military property, including any armories considered surplus property, shall be sold by such method as is to the best advantage of the State of Nebraska, including auction, sealed bid, or public sale, and if necessary, by private sale, but in all situations only after notice of the property sale is publicly advertised on at least two separate occasions in the newspaper with the largest circulation in the county where the surplus property is located and not less than thirty days prior to the sale of the property, and pursuant to section 72-816, all proceeds from the sale of the property, less maintenance expenses pending the sale and selling expenses, but including investment income on the sale proceeds of the property, shall be promptly transferred from the Vacant Building and Excess Land Cash Fund to the General Fund by the State Building Administrator.

(5) The state building division shall be responsible for the maintenance of the building or land if maintenance is ordered by the committee and shall be responsible for maintenance of the building or land pending sale or lease of the building or land.

(6) Land at the Hastings Regional Center determined by the committee to be excess shall be sold by such method as is to the best advantage of the State of Nebraska, including auction, sealed bid, or public sale and, if necessary, by private sale. The sale of land shall only occur after notice of the sale is publicly advertised on at least two separate occasions in the newspaper with the largest circulation in the county where the land is located and not less than thirty days prior to the sale of the land. The proceeds from the sale of the land, less maintenance expenses pending the sale and selling expenses, but including investment income on the sale proceeds, shall be promptly transferred from the Vacant Building and Excess Land Cash Fund by the State Treasurer as follows:

(a) First, not exceeding five million three hundred seven thousand dollars to the General Fund; and

(b) Second, not exceeding three million dollars of available proceeds remaining to the Nebraska Capital Construction Fund.

(1) The Vacant Building and Excess Land Cash Fund is created. The fund shall consist of proceeds credited to the fund pursuant to sections 72-815 and 90-268. Except as provided in sections 90-268 and 90-269, the fund shall be used to pay for the maintenance of vacant state buildings and excess state land and for expenses related to the disposal of state buildings and land referred to the Department of Administrative Services by the committee pursuant to sections 72-811 to 72-818. The fund shall be administered by the state building division of the Department of Administrative Services. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Funds may be transferred from the Vacant Building and Excess Land Cash Fund to the General Fund at the direction of the Legislature.

(2) If there are insufficient funds in the fund to enable the division to fully implement the orders of the committee issued pursuant to sections 72-811 to 72-818, the division shall implement them in the order which most efficiently meets the purposes of such sections.

(3) Funds appropriated to the Task Force for Building Renewal shall not be used to carry out any of the purposes of such sections (a) unless the building would otherwise qualify for the use of such funds pursuant to the Deferred Building Renewal Act and (b) except for any expenses incurred by the administrator of the Task Force for Building Renewal in fulfilling his or her duties under such sections.

Sections 72-811 to 72-818 shall apply to every state agency except the University of Nebraska, the Nebraska state colleges, the Division of Aeronautics of the Department of Transportation, and the Board of Educational Lands and Funds, except that any such agency may elect to include under such sections any building or land for which it has responsibility. Such sections shall not apply to interests in real property held by the Department of Transportation.

Except as provided in section 37-330, a state agency shall submit any request for granting a utility easement on state-owned land to the committee. The committee may only approve utility easements by majority vote. Utility easements may only be granted to political subdivisions or their contractors for utility or construction-related purposes. The committee shall certify the approval of a utility easement to the Director of Administrative Services who shall execute the instrument necessary to grant the easement. The state building division of the Department of Administrative Services shall be responsible for the implementation of easements granted under this section.

(1) The Game and Parks Commission shall construct, develop, and manage a museum and visitor center honoring Chief Standing Bear.

(2) It is the intent of the Legislature to appropriate to the Game and Parks Commission for the Chief Standing Bear Museum and visitor center:

(a) Not more than fifteen million dollars for fiscal year 2025-26 from investment earnings from the Perkins County Canal Project Fund and credited to the Economic Recovery Contingency Fund as provided in section 61-305 for construction of the museum and visitor center;

(b) Seven hundred fifty thousand dollars for fiscal year 2025-26 from investment earnings from the Perkins County Canal Project Fund and credited to the Economic Recovery Contingency Fund as provided in section 61-305 for exhibit fabrication and historical interpretation; and

(c) Two hundred thousand dollars in fiscal year 2025-26 for staffing.

(3) The Game and Parks Commission may execute a memorandum of understanding or contract with the Nebraska State Historical Society for purposes of museum and visitor center development, exhibit fabrication, and historical interpretation.

The Game and Parks Commission shall purchase or receive by donation, and subsequently rehabilitate and manage, the Mayhew Cabin historical site located in Nebraska City, Nebraska.

The Board of Educational Lands and Funds is authorized and empowered to lease any school and public lands belonging to the state and under its control, including oil and gas rights which have been or may hereafter be reserved to the state, for oil and gas exploration and development upon terms and conditions herein prescribed. In all cases where the lands are under lease for grazing, agricultural or similar purposes, the rights of such lessees shall be protected.

All oil and gas leases issued hereunder shall be for terms not to exceed ten years, and as long thereafter as oil or gas is produced in paying quantities from the land covered thereby. Such leases shall also provide for annual delay rentals of not less than fifty cents per acre of land leased. If two or more parties desire to lease the same land, the representatives of the Board of Educational Lands and Funds present at the offering shall accept bids from all or any parties, and the board may grant a lease to the person, partnership, limited liability company, or corporation that would pay for a lease contract on the land the greatest amount of such bonus. Lands shall be leased in as compact bodies as the form and area of the tracts subject to lease will permit. No lease shall embrace noncontiguous subdivisions of land unless such subdivision shall be within an area comprising not more than one square mile.

In every oil and gas lease granted pursuant hereto, there shall be reserved to the lessor a royalty of not less than twelve and one-half percent of all oil, gas, hydrocarbons and all other petroleum products produced and saved from the lands covered thereby and not used in connection with the development and operation of the leased premises, or twelve and one-half percent of the market value thereof at the leased premises. Such leases shall provide that the interest so reserved shall be produced free of cost to lessor and that an accounting shall be made therefor on a monthly basis.

The Board of Educational Lands and Funds shall require lessees of such oil and gas leases, and assigns thereof, to furnish bonds to the state in such form and substance as may be prescribed by the board, and in amounts adequate to indemnify the state against loss, damage or detriment by reason of the failure of the lessee to fully discharge the obligations contained in the lease, or assignment thereof; Provided, that a blanket bond may be accepted by the board to cover more than one lease issued to the same lessee.

All oil and gas leases granted pursuant hereto shall provide for forfeiture and cancellation thereof upon the failure of the lessee to fully discharge the obligations provided therein, after written notice from the state and a reasonable time allowed to the lessee for performance of any undertaking or obligation specified in such notice, concerning which the lessee is in default. Such notice shall not be required in case of the failure of the lessee to pay any delay rental provided for in such lease. The Board of Educational Lands and Funds is granted full power and authority to order and hold hearings on any matter or question involving oil and gas leases, under such rules and regulations as it may adopt; and any lessee, upon application therefor, shall be granted a hearing on any notice or demand of the board before any lease is declared forfeited or canceled by the board. A copy of any order of forfeiture and cancellation made pursuant to this section shall be filed with the register of deeds of the county where the land is situated, but such filing shall not be a condition to the effectiveness of the order, and no further processing of any type shall be necessary to complete the record of such forfeiture and cancellation.

Applications for the issuance of any lease authorized by sections 72-901 to 72-912 shall be executed under oath by the applicant, applicant's agent or attorney, or an officer or agent of a corporation if the application is made by a corporation. The form of the application shall be prescribed by the Board of Educational Lands and Funds, and shall contain a description of the land, by legal subdivisions, upon which the lease is desired, and the terms upon which the applicant desires to acquire such lease.

No lease shall be sold except at public auction, to be held at the office of the Board of Educational Lands and Funds, after notice of the time and place of such sale by publication two consecutive weeks in a newspaper of general circulation in the State of Nebraska, and such other notice, if any, as the board may require. Proof of such publication shall be made by an affidavit of the publisher, manager, or foreman of such newspaper, to be filed in the office of the board. Subject to the board's right to reject all bids, such lease shall be sold to the highest and best bidder. The purchaser of such lease shall pay the cost of publishing the notice herein provided for. Should the lease not be sold following the publishing of such notice, the one who filed application for lease shall pay the publication costs, and, to secure the payment thereof, the board may require the applicant to furnish satisfactory security therefor.

The Board of Educational Lands and Funds is hereby authorized, in its discretion, to enter into appropriate agreements for the purpose of unit or cooperative exploration, development, and operation of acreage, or any part of the acreage, covered by leases granted pursuant hereto, with other acreage for the production of oil and gas. Such agreements shall provide for the allocation of production on a proportionate acreage or other agreed equitable basis.

There shall be reserved, from leases granted pursuant hereto, the right to fully use and enjoy, for agricultural and grazing purposes, the area leased for oil and gas purposes, except such parts thereof as may be necessary for use in the development and operation thereof for oil and gas and in the marketing of production therefrom. The owner of the agricultural and grazing rights, as to lands covered by any oil and gas lease issued hereunder, shall have prior right to the use of water on said premises. The lessee shall pay all damages to growing crops, including grass, caused by operations under such lease, and, after due notice thereof, shall protect the lessor from claims of such nature.

The Board of Educational Lands and Funds shall have the power and authority to prescribe such rules and regulations as it may deem necessary and proper, but which are not inconsistent with the Constitution and statutes of this state, relating to the leasing of school and public lands for oil and gas exploration and development.

Any holder of existing oil or gas leases heretofore issued by the Board of Educational Lands and Funds on properties of the nature covered hereby, shall have the right to exchange such lease for an amended lease issued under the provisions of sections 72-901 to 72-912, and embracing the same land. When the holder of any such lease makes written application to the board in due form for such exchange, the board shall issue an amended lease embracing the same land as the former lease in the ordinary and regulation form duly adopted by the board under the provisions of said sections, but there shall be deducted from the term for which such amended lease may be issued the time that has passed from the date of the issue of the former lease to the date of the issue of the amended lease, except that in no case shall the amended lease be granted for a longer period than seven years from the date of issue of the amended lease. Such amended lease shall provide for an increase of twenty-five cents per acre over the amount of the annual delay rental specified in the former lease.

Except as hereinafter provided, the assignment of any oil and gas lease issued under the provisions of sections 72-901 to 72-912, either in whole or in part, shall be permitted if made to an assignee qualified as provided herein. Such assignment shall not, however, be binding upon the state until filed with the Board of Educational Lands and Funds, accompanied by a filing fee of one dollar and a bond, and approved by the board, or its lawful representatives; Provided, that the approval of such assignment so filed and supported shall not be withheld in any case where satisfactory compliance has been made with the requirements of said sections. In no case shall the board be required to approve an assignment of a lease in part, covering a tract less than forty acres nor shall it be required to approve an assignment of an undivided interest in such lease until a showing, satisfactory to the board, has been made evidencing which one of the parties, assignor or assignee is to be the one to pay the delay rentals thereafter accruing, as to an undivided interest thereafter to be jointly owned, nor shall it be required to approve an assignment covering an undivided interest of less than forty leasehold acres.

The Nebraska Capital Construction Fund is created. The fund shall consist of revenue and transfers credited to the fund as authorized by law. Money shall be appropriated from the fund to state agencies for making payments on projects as determined by the Legislature, including, but not limited to, purchases of land, structural improvements to land, acquisition of buildings, construction of buildings, including architectural and engineering costs, replacement of or major repairs to structural improvements to land or buildings, additions to existing structures, remodeling of buildings, and acquisition of equipment and furnishings of new or remodeled buildings. The fund shall be administered by the State Treasurer as a multiple-agency-use fund and appropriated to state agencies as determined by the Legislature. Transfers may be made from the fund to the Capitol Restoration Cash Fund at the direction of the Legislature. Any money in the Nebraska Capital Construction Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. Any investment earnings from investment of money in the Nebraska Capital Construction Fund shall be credited to such fund, except that for fiscal years 2023-24, 2024-25, and 2025-26, any investment earnings from investment of money in the Nebraska Capital Construction Fund from transfers credited to such fund that are designated for the construction of a new state prison shall be credited to the Economic Recovery Contingency Fund.

(1)(a) The Nebraska Investment Council is created. For purposes of the Nebraska State Funds Investment Act, council means the Nebraska Investment Council. The council shall consist of five members, appointed by the Governor with the approval of the Legislature. The State Treasurer, the director of the Nebraska Public Employees Retirement Systems, and except as provided in subdivision (1)(b) of this section, beginning January 1, 2017, the administrator of each retirement system provided for under the Class V School Employees Retirement Act shall serve as nonvoting, ex officio members. One of the appointed members shall be designated chairperson by the Governor.

(b) Beginning September 1, 2024, the director of the Nebraska Public Employees Retirement Systems shall also represent each retirement system provided for under the Class V School Employees Retirement Act.

(2) Each of the appointed members of the council shall serve for a term of five years that begins on January 1 and may be removed by the Governor for cause after notice and an opportunity to be heard. A member may serve until his or her successor's appointment is effective. A member may be reappointed. A successor shall be appointed in the same manner as provided for the members first appointed, and in case of a vacancy caused by death, resignation, or otherwise, the Governor shall appoint a qualified person to fill the vacancy for the unexpired term.

(3) No member of the council shall be personally liable, except in cases of willful dishonesty, gross negligence, or intentional violation of law, for actions relating to his or her duties as a member of the council.

(1) Prior to July 1, 2005, the appointed members of the council shall have at least ten years of experience in the financial affairs of a public or private organization or have at least five years of experience in the field of investment management or analysis. For members appointed on or after July 1, 2005, the appointed members of the council shall have at least seven years of experience in the field of investment management or analysis or have at least twelve years of experience in the financial management of a public or private organization. There is a preference for members who are appointed to have experience in investment management or analysis.

(2) The members serving on July 1, 2005, shall serve for the remainder of their five-year terms which will be extended until the date on which the successor's appointment is effective.

The purpose of the council is to formulate and establish such policies as it may deem necessary and proper which shall govern the methods, practices, and procedures followed by the state investment officer for the investment or reinvestment of state funds and funds described in section 83-133 and the purchase, sale, or exchange of securities as provided by the Nebraska State Funds Investment Act. The council shall meet from time to time as directed by the Governor or the chairperson or as requested by the state investment officer. The members of the council, except the State Treasurer, the director of the Nebraska Public Employees Retirement Systems, and beginning January 1, 2017, each administrator of a retirement system provided for under the Class V School Employees Retirement Act, shall be paid seventy-five dollars per diem. The members shall be reimbursed for expenses incurred in connection with the performance of their duties as members as provided in sections 81-1174 to 81-1177.

(1)(a) The appointed members of the council shall have the responsibility for the investment management of the assets of the retirement systems administered by the Public Employees Retirement Board as provided in section 84-1503, the assets of the Nebraska educational savings plan trust created pursuant to sections 85-1801 to 85-1817, the assets of the achieving a better life experience program pursuant to sections 77-1401 to 77-1409, and beginning January 1, 2017, the assets of each retirement system provided for under the Class V School Employees Retirement Act. Except as provided in subsection (4) of this section, the appointed members shall be deemed fiduciaries with respect to the investment of the assets of the retirement systems, of the Nebraska educational savings plan trust, and of the achieving a better life experience program and shall be held to the standard of conduct of a fiduciary specified in subsection (3) of this section. The nonvoting, ex officio members of the council shall not be deemed fiduciaries.

(b) As fiduciaries, the appointed members of the council and the state investment officer shall discharge their duties with respect to the assets of the retirement systems, of the Nebraska educational savings plan trust, and of the achieving a better life experience program solely in the interests of the members and beneficiaries of the retirement systems or the interests of the participants and beneficiaries of the Nebraska educational savings plan trust and the achieving a better life experience program, as the case may be, for the exclusive purposes of providing benefits to members, members' beneficiaries, participants, and participants' beneficiaries and defraying reasonable expenses incurred within the limitations and according to the powers, duties, and purposes prescribed by law.

(2)(a) The appointed members of the council shall have the responsibility for the investment management of the assets of state funds. The appointed members shall be deemed fiduciaries with respect to the investment of the assets of state funds and shall be held to the standard of conduct of a fiduciary specified in subsection (3) of this section. The nonvoting, ex officio members of the council shall not be deemed fiduciaries.

(b) As fiduciaries, the appointed members of the council and the state investment officer shall discharge their duties with respect to the assets of state funds solely in the interests of the citizens of the state within the limitations and according to the powers, duties, and purposes prescribed by law.

(3) The appointed members of the council shall act with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims by diversifying the investments of the assets of the retirement systems, the Nebraska educational savings plan trust, the achieving a better life experience program, and state funds so as to minimize risk of large losses, unless in light of such circumstances it is clearly prudent not to do so. No assets of the retirement systems, the Nebraska educational savings plan trust, or the achieving a better life experience program shall be invested or reinvested if the sole or primary investment objective is for economic development or social purposes or objectives.

(4) Neither the appointed members of the council nor the state investment officer shall be deemed fiduciaries with respect to investments of the assets of a retirement system provided for under the Class V School Employees Retirement Act made by or on behalf of the board of education as defined in section 79-978 or the board of trustees provided for in section 79-980. Neither the council nor any member thereof nor the state investment officer shall be liable for the action or inaction of the board of education or the board of trustees with respect to the investment of the assets of a retirement system provided for under the Class V School Employees Retirement Act, the consequences of any such action or inaction of the board of education or the board of trustees, and any claims, suits, losses, damages, fees, and costs related to such action or inaction or consequences thereof.

The council shall appoint a state investment officer. The appointment shall be subject to the approval of the Governor and a majority of the Legislature. The state investment officer shall be a person well qualified by training to administer and invest the money available for investment, and he or she shall have at least five years of experience in the management of investment portfolios. The state investment officer's salary shall be fixed by the council at not less than twenty-five thousand dollars per year. The state investment officer shall serve without term and may be removed for cause by the council.

The state investment officer shall devote his or her entire time and attention to the duties of his or her office. The state investment officer shall not engage in any other occupation or profession or hold any other public office, appointive or elective. If for any reason the state investment officer is unable to perform the duties of his or her office, or the office is vacant due to death, resignation, or otherwise, the council shall designate an acting state investment officer to serve until the state investment officer is able to act or the vacancy is filled. With the approval of the council, the state investment officer may designate a deputy to perform such acts and duties as the state investment officer shall authorize, subject to the same restrictions as apply to the state investment officer. The deputy shall be bonded or insured as required by section 11-201. The state investment officer shall be responsible for all official acts of the deputy.

The state investment officer shall employ qualified personnel as may be required to carry out the duties and responsibilities required under the Nebraska State Funds Investment Act. Such employees shall be deemed state employees and covered by the State Personnel System pursuant to sections 81-1301 to 81-1368 and other personnel rules or regulations. At the discretion of the Nebraska Investment Council, investment managers who are employees of the council may be exempted from the State Personnel System. The state investment officer shall be exempt from the State Personnel System. All employees shall comply with state accounting regulations and applicable state and federal laws in the discharge of their duties. With the approval of the Governor, the state investment officer may retain counsel, auditors, financial advisors and private consultants on a contract basis or otherwise to render such professional service or advice as he or she may require in the performance of his or her duties.

(1) Except as otherwise specifically provided by law, the state investment officer shall direct the investment and reinvestment of money in all state funds not currently needed and all funds described in section 83-133 and order the purchase, sale, or exchange of securities for such funds. He or she shall notify the State Treasurer of any payment, receipt, or delivery that may be required as a result of any investment decision, which notification shall be the authorization and direction for the State Treasurer to make such disbursement, receipt, or delivery from the appropriate fund.

(2) The council shall have an analysis made of the investment returns that have been achieved on the assets of each retirement system administered by the Public Employees Retirement Board as provided in section 84-1503 and on the assets of each retirement system provided for under the Class V School Employees Retirement Act. By March 31 of each year, the analysis shall be presented to the board and the Nebraska Retirement Systems Committee of the Legislature. The analysis shall be prepared by an independent organization which has demonstrated expertise to perform this type of analysis and for which there exists no conflict of interest in the analysis being provided. The analysis may be waived by the council for any retirement system with assets of less than one million dollars.

(3) By April 10 of each year, the council shall prepare a written plan of action and shall present such plan to the Nebraska Retirement Systems Committee of the Legislature at a public hearing. The plan shall include, but not be limited to, the council's investment portfolios, investment strategies, the duties and limitations of the state investment officer, and an organizational structure of the council's office.

The State Treasurer shall notify the state investment officer as to the amount of money in the General Fund and the funds of any board, commission, department, agency, or official charged with the control of any other state fund not currently needed and available for investment. When it shall appear to the State Treasurer that any such invested money is needed, he or she shall notify the state investment officer who shall make available from the pooled investments the amount required.

The state investment officer shall invest in investments of the nature which individuals of prudence, discretion, and intelligence acquire or retain in dealing with the property of another, and if the state investment officer has special skills or is named on the basis of representations of special skills or expertise, he or she is under a duty to use such skills, subject to the direction of the Nebraska Investment Council.

The Nebraska Investment Council, out of funds available to it, upon the application of any qualified lending agent as defined under the Federal Higher Education Act of 1965, may purchase all student loans which are federally guaranteed, as to principal and interest, and made to Nebraska residents attending Nebraska institutions, which are offered to the Nebraska Investment Council for purchase and shall give preference to such loans when an investment in such loans would be equally as good as any other investment; Provided, such offers shall be in amounts of five thousand dollars or more from a single lending agent.

The Nebraska Investment Council may hold such loans or offer them for sale or resale on such terms and conditions as shall be negotiated with purchasers. Conditions of such sale or resale may be, but shall not be limited to, amounts to be retained for service, degree of servicing requirements, conditions of repurchase and responsibility for collection and reports to the guaranteeing agency of the federal government.

The Nebraska Investment Council may negotiate with the Board of Trustees of the Nebraska State Colleges for the servicing of such loans which may be purchased by the council, retained in its investment portfolio or resold as provided in section 72-1246.02. The council may require such security for the performance of the servicing duties as it may deem necessary to insure full compliance with a servicing agreement.

The Nebraska Investment Council shall obtain the approval of the United States Department of Education before purchasing, selling, or servicing loans pursuant to sections 72-1246.01 to 72-1246.03.

The Nebraska Investment Council may give priority to the investments authorized by section 72-1246.01 and shall liquidate other investments if necessary to meet the demand for such loans; Provided, that any investments made prior to May 24, 1971, may be retained in kind, notwithstanding the provisions of section 72-1246, until such time as in the discretion of the Nebraska Investment Council the same may be sold for the best advantage of the retirement fund. All interest received on such loans shall be credited to the fund from which the loan was made.

Interest, premium, and other income received from investments pursuant to sections 72-1244 and 72-1267 shall be credited to the fund from which the investment was made except as otherwise provided by law.

(1) Any expenses with respect to the purchase, sale, or exchange of any security shall be charged to the fund or funds on behalf of which such purchase, sale, or exchange was made. All other expenses of the state investment officer shall be paid out of appropriations for the office of the state investment officer.

(2) Beginning on March 31, 2016, any expenses with respect to the transfer to and assumption by the council and the state investment officer of the duty and authority to invest the assets of a retirement system provided for under the Class V School Employees Retirement Act shall be charged to the Class V School Employees Retirement Fund established in section 79-9,115. Such expenses shall be paid without the approval of the board of education as defined in section 79-978 or the board of trustees provided for in section 79-980.

(3) Management, custodial, and service costs which are a direct expense of investing the assets of a retirement system provided for under the Class V School Employees Retirement Act may be paid from the income of such assets when it is not prohibited by statute or the Constitution of Nebraska. For purposes of this section, management, custodial, and service costs include investment counsel fees for managing assets, real estate mortgage loan service fees, real estate management fees, and custody fees for fund securities. All such fees shall be approved by the council and the state investment officer.

The State Investment Officer's Cash Fund is created. A pro rata share of the budget appropriated for the council shall be charged to the income of each fund managed, and such charges shall be transferred to the State Investment Officer's Cash Fund. The allocation of charges may be made by any method determined to be reasonably related to actual costs incurred by the council. Approval of the agencies and boards administering these funds shall not be required.

It is the intent of this section to have funds managed by the state investment officer pay a pro rata share of the investment management expense when this is not prohibited by statute or the constitution.

Management, custodial, and service costs which are a direct expense of state funds may be paid from the income of such funds when this is not prohibited by statute or the Constitution of Nebraska. For purposes of this section, management, custodial, and service costs shall include, but not be limited to, investment counsel fees for managing assets, real estate mortgage loan service fees, real estate management fees, and custody fees for fund securities. All such fees shall be approved by the council and the state investment officer.

Beginning on March 31, 2016, a pro rata share of the budget appropriated for the council shall be charged to the income of the Class V School Employees Retirement Fund, and such charges shall be transferred to the State Investment Officer's Cash Fund. The allocation of charges among a retirement system provided for under the Class V School Employees Retirement Act and the other funds managed by the council may be made by any method determined to be reasonably related to actual costs incurred by the council. Approval of the board of education, the board of trustees, or the retirement board, as defined in section 79-978 and as provided for in section 79-980, shall not be required.

All securities purchased or held shall be in the custody of the State Treasurer who may deposit with a fiscal agent in any financial institution, approved by the Nebraska Investment Council, such securities as he shall consider advisable to be held in safekeeping by such agent for collection of principal and interest, or of the proceeds of sale thereof or, at the direction of the state investment officer, the State Treasurer shall have such securities held in the name of a nominee. The State Treasurer shall join with the deputy state treasurer in obtaining for the State of Nebraska a registered nominee from the American Society of Corporate Secretaries and shall hold securities registered in the nominee's name in the same manner as he shall consider appropriate for holding other securities.

Whenever cash funds belonging to the State of Nebraska shall be deposited with any fiscal agent authorized by section 72-1250, the holding thereof shall be and constitute an investment made pursuant to direction of the state investment officer for purposes of subdivision (7) of section 84-602.

The State Treasurer shall collect the interest, premium or other income on and the principal of such securities in his custody as the same become due and payable.

The available money from the General Fund and each board, commission, department, agency, or official charged with the control of any other state funds shall be invested by the state investment officer. On a monthly basis the state investment officer shall notify the Department of Administrative Services and the State Treasurer as to the earned income to be credited pursuant to section 72-1248.

The state investment officer shall report no later than fifteen days after the close of each month to the Governor, the State Treasurer, the Auditor of Public Accounts, the Department of Administrative Services, and the members of the council on the operations for the pooled accounts during such month. The report shall include a summary of investments, purchases, and dealers utilized. Such reports shall be available for public inspection in the office of the state investment officer.

The Auditor of Public Accounts shall conduct, at such time as he or she determines necessary, postaudits of the investment transactions provided for in the Nebraska State Funds Investment Act and shall submit annually a report of his or her findings to the Governor and the state investment officer.

In the event of default in the payment of principal of, or interest on, any investment made by the state investment officer, the State Treasurer may institute the proper proceedings to collect such matured principal or interest, and may, with the approval of the state investment officer, accept for exchange purposes refunding bonds or other evidences of indebtedness. The State Treasurer, with the approval of the state investment officer, may make such compromise, adjustment, or other disposition of the past-due interest or principal in default, or make such compromises, adjustments or other disposition as to future payments of interest or principal as deemed advisable to protect the money invested.

Except as otherwise provided in sections 72-1244 and 72-1267, each board, commission, department, agency, or official that previously was charged with the investment of state funds shall continue in all other respects as provided by law and shall continue to have all other powers and shall exercise all the functions and duties fixed or imposed upon it by law.

The state investment officer may provide assistance and furnish advice regarding the investment of money to any political subdivision of the State of Nebraska whenever such advice is requested by a political subdivision. In connection with the rendering of such service, the state investment officer may charge and collect any fee he determines to be reasonable.

Sections 72-1237 to 72-1260 shall be known and may be cited as the Nebraska State Funds Investment Act.

It is hereby declared that the lending of money is an activity which affects the economic conditions of the State of Nebraska, that Nebraska is a state short of sufficient capital to properly serve the needs of the state, especially the agricultural credit requirements and housing credit requirements, and that if additional funds are deposited into the commercial banking channels and capital stock financial institution or qualifying mutual financial institution channels the available capital will increase many times the amount of the initial deposit.

For purposes of the Nebraska Capital Expansion Act, unless the context otherwise requires:

(1) Bank means a state-chartered or federally chartered bank which has a main chartered office in this state, any branch thereof in this state, or any branch in this state of a state-chartered or federally chartered bank which maintained a main chartered office in this state prior to becoming a branch of such state-chartered or federally chartered bank;

(2) Capital stock financial institution means a capital stock state building and loan association, a capital stock federal savings and loan association, a capital stock federal savings bank, or a capital stock state savings bank, which has a main chartered office in this state, any branch thereof in this state, or any branch in this state of a capital stock financial institution which maintained a main chartered office in this state prior to becoming a branch of such capital stock financial institution;

(3) Time deposit open account means a bank account or a deposit with a capital stock financial institution or a qualifying mutual financial institution with respect to which there is in force a written contract which provides that neither the whole nor any part of such deposit may be withdrawn, by check or otherwise, prior to the date of maturity, which date shall be not less than thirty days after the date of the deposit, or prior to the expiration of the period of notice which shall be given by the state investment officer in writing not less than thirty days in advance of withdrawal. The time deposit open account contract shall be uniform and shall be furnished by the state investment officer to each bank, capital stock financial institution, or qualifying mutual financial institution for execution;

(4) Funds available for investment means all funds over which the state investment officer has investment jurisdiction less those funds necessary for operations and except those funds which are eligible for long-term investment; and

(5) Qualifying mutual financial institution has the same meaning as in section 77-2365.01.

Except as provided in section 72-1264, the state investment officer shall, out of funds available for investment, initially cause to be offered to all banks, capital stock financial institutions, and qualifying mutual financial institutions in this state a time deposit open account in the amount of one million dollars, except that the minimum amount that any bank, capital stock financial institution, or qualifying mutual financial institution may accept is the amount of one hundred thousand dollars. Such deposit shall be available at any investment date to such banks, capital stock financial institutions, or qualifying mutual financial institutions as are willing to meet the rate and other requirements set forth in the Nebraska Capital Expansion Act and make application therefor. No deposit shall be made when doing so would violate a fiduciary obligation of the state or section 72-1268.07. To the extent that the total amount of funds initially offered to all banks, capital stock financial institutions, and qualifying mutual financial institutions is not accepted by such banks, capital stock financial institutions, and qualifying mutual financial institutions, the balance of such funds shall be immediately reoffered to any banks, capital stock financial institutions, and qualifying mutual financial institutions desiring additional funds in an amount not to exceed each bank's, capital stock financial institution's, or qualifying mutual financial institution's pro rata share of the remaining funds, or fifteen million dollars for each bank, capital stock financial institution, or qualifying mutual financial institution, whichever is less. The reoffered funds shall be made available to such banks, capital stock financial institutions, and qualifying mutual financial institutions as are willing to meet the rate and other requirements set forth in the Nebraska Capital Expansion Act. All funds not investable under this section shall be invested as provided by section 72-1246. No one bank, capital stock financial institution, or qualifying mutual financial institution may receive for deposit a sum of more than sixteen million dollars.

Funds shall be offered for deposit as they become available. The time of such deposit shall be known as an investment date. The state investment officer may make prudent interim investments. If the funds available for investment are less than the amount required for banks, capital stock financial institutions, or qualifying mutual financial institutions under section 72-1263, the state investment officer shall prorate the available funds among the desiring banks, capital stock financial institutions, or qualifying mutual financial institutions.

The state investment officer shall fix the rate of interest to be paid on deposits and the term of deposits to be offered on the first day of each month. The rate per annum for each period shall be equal to the interest rate paid for other qualified investments of equal term available for investment by the state investment officer. It is the Legislature's intent that the state receive a competitive rate from Nebraska banks, capital stock financial institutions, and qualifying mutual financial institutions, but that rates received should not exceed the rates that would be paid for other qualified investments.

The Nebraska Investment Council shall adopt and promulgate rules and regulations to establish procedures for the distribution of funds to banks, capital stock financial institutions, and qualifying mutual financial institutions.

For purposes of investment under the Nebraska Capital Expansion Act, the state investment officer shall combine and pool all investable funds of all state agencies subject to his or her investment powers except when doing so would violate a fiduciary obligation of the state. The interest earned on any pooled investment shall be prorated in accordance with the participation of the respective funds.

(1) Notwithstanding any other provision of law, every bank, capital stock financial institution, and qualifying mutual financial institution shall be eligible for the maximum investment provided for in section 72-1263. The bank, capital stock financial institution, or qualifying mutual financial institution shall give a bond or, in lieu of a bond, may give security for any investment under the Nebraska Capital Expansion Act as provided in sections 72-1268.01 to 72-1268.04. Any bank, capital stock financial institution, or qualifying mutual financial institution may apply for the privilege of keeping on deposit such funds.

(2)(a) Every bank, capital stock financial institution, and qualifying mutual financial institution shall, as a condition of accepting state funds, agree to cash free of charge state warrants which are presented by payees of the state without regard to whether or not such payee has an account with such bank, capital stock financial institution, or qualifying mutual financial institution, and such bank, capital stock financial institution, or qualifying mutual financial institution shall not require such payee to place his or her fingerprint or thumbprint on the state warrant as a condition to cashing such warrant.

(b) The condition of accepting state funds in subdivision (2)(a) of this section shall not preclude any bank, capital stock financial institution, or qualifying mutual financial institution from refusing to cash a state warrant presented to the bank, capital stock financial institution, or qualifying mutual financial institution if (i) a stop-payment order has been placed on the state warrant, (ii) the state warrant has been reported as unregistered, voided, lost, stolen, or destroyed or a duplicate state warrant has been issued in its place, (iii) the state warrant is incomplete or is forged or altered in any manner, (iv) the state warrant lacks any necessary indorsement or an indorsement is illegible, unauthorized, or forged, (v) the state warrant is stale-dated, or (vi) the bank, capital stock financial institution, or qualifying mutual financial institution has a reasonable belief that the individual presenting the state warrant is not the payee named on the state warrant.

For the security of funds deposited under the Nebraska Capital Expansion Act, the state investment officer shall require all such depositories to give bond for the safekeeping of payments of such deposits. The officers of the bank, capital stock financial institution, or qualifying mutual financial institution seeking to qualify as a depository shall be ineligible to sign the bond provided for under this section. The bond shall run to the people of the State of Nebraska and shall be approved by the Governor, Secretary of State, and Attorney General. No bond shall be valid unless approved by all three of such officers. The bond shall be conditioned (1) that the depository at the end of each and every month render to the state investment officer a statement in duplicate showing the daily balance and the amount of money of the state held by it during the month, (2) for the payment of the deposit when demanded by the state investment officer on his or her check at any time, and (3) generally to do and perform whatever may be required by the Nebraska Capital Expansion Act and a faithful discharge of the trust reposed in such depository.

The bond referred to in section 72-1268.01 shall be in substance as follows:

Know all Persons by these Presents, That we .......... as principals, and .......... as sureties, are held and firmly bound unto the State of Nebraska, in the just and full sum of .......... Dollars, for the payment of which, well and truly to be made, we bind ourselves, our heirs, executors, and administrators, jointly and severally, by these presents. Dated the .......... day of .................... A.D. ................ .

Whereas, such bank, capital stock financial institution, or qualifying mutual financial institution, in consideration of the deposit of certain of the money of the State of Nebraska for safekeeping with and in the .......... bank, capital stock financial institution, or qualifying mutual financial institution of .......... the amount whereof shall be subject to withdrawal or diminution by the state investment officer as the requirements of the state shall demand, and which amount may be increased or decreased as the state investment officer may determine.

Now, Therefor, if such .................... bank, capital stock financial institution, or qualifying mutual financial institution of ........................... shall at the end of every month render to the state investment officer a statement in duplicate showing the daily balance of the state money held by it during the month next preceding, and how the same has been credited, and shall well and truly keep all such sums of money so deposited or to be deposited as aforesaid subject to the check and order of the state investment officer as aforesaid, and shall pay over the same, and each and every part thereof, upon the written demand of the state investment officer, and to his or her successor in office as shall be by him or her demanded, and shall in all respects save and keep the people of the State of Nebraska and the state investment officer harmless and indemnified for and by reason of the making of such deposit or deposits, then this obligation shall be void and of no effect, otherwise to be and remain in full force and virtue.

The state investment officer shall not have on deposit in any bank, capital stock financial institution, or qualifying mutual financial institution giving a guaranty bond more than the amount insured or guaranteed by the Federal Deposit Insurance Corporation plus the maximum amount of the bond given by such bank, capital stock financial institution, or qualifying mutual financial institution or in any bank, capital stock financial institution, or qualifying mutual financial institution giving a personal bond more than the amount insured or guaranteed by the Federal Deposit Insurance Corporation plus one-half of the amount of the bond given by such bank, capital stock financial institution, or qualifying mutual financial institution. All bonds of such depositories shall be deposited with and held by the state investment officer.

In lieu of the bond required by section 72-1268.01, any bank, capital stock financial institution, or qualifying mutual financial institution making application to become a depository under the Nebraska Capital Expansion Act may give security as provided in the Public Funds Deposit Security Act to the state investment officer.

(1) Each subsidiary bank of an out-of-state bank holding company shall file with the state investment officer a copy of the public section of the subsidiary bank's most current written evaluation issued pursuant to the terms of section 807 of the Community Reinvestment Act of 1977, as amended, 12 U.S.C. 2906. The copy shall be filed with the state investment officer within thirty days of receipt of the evaluation from the subsidiary bank's primary appropriate federal financial supervisory agency.

(2) On and after January 1, 1992, the state investment officer shall not further deposit or redeposit public funds as authorized by section 72-1263 in any subsidiary bank of an out-of-state bank holding company which has been assigned, by its primary appropriate federal financial supervisory agency, a rating of substantial noncompliance in meeting community credit needs. Upon the filing with the state investment officer of a copy of an updated written evaluation which reflects that the subsidiary bank is no longer assigned such rating, the subsidiary bank shall immediately be eligible for further deposit or redeposit of public funds as authorized by such section.

(3) For purposes of this section, bank holding company shall have the meaning provided in 12 U.S.C. 1841 as it exists on April 7, 1990, and appropriate federal financial supervisory agency shall have the meaning provided in 12 U.S.C. 2902 as it exists on such date.

(4) This section shall not apply to any subsidiary bank of an out-of-state bank holding company, as defined in 12 U.S.C. 1842(d) as it existed on August 26, 1983, which on March 12, 1963, owned at least two banks in this state.

(5) This section shall not be construed or interpreted in any manner to be a condition precedent to the acquisition or control of a bank in this state by an out-of-state bank or out-of-state bank holding company.

Sections 72-1261 to 72-1269 shall be known and may be cited as the Nebraska Capital Expansion Act.

The Legislature finds that:

(1) The Nebraska Investment Council was created by the Legislature in Laws 1967, LB 335. Additional legislation was passed in Laws 1969, LB 1345, which provided for centralization of the investment of state funds and addressed types of authorized investments and since then the statutory framework of the council has been modified periodically by the Legislature;

(2) The laws of Nebraska provide that the appointed members of the council and the state investment officer are deemed fiduciaries with respect to investment of the assets (a) in the retirement systems, the achieving a better life experience program pursuant to sections 77-1401 to 77-1409, and the Nebraska educational savings plan trust and as fiduciaries are required to discharge their duties with respect to such assets solely in the best interest of the members and beneficiaries of such plans and (b) of other state funds solely in the best interest of the residents of Nebraska;

(3) As fiduciaries, the appointed members of the council and the officer must act with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of like character with like aims by diversifying the investments of assets in the various plans so as to minimize the risk of large losses;

(4) The council managed over fifteen billion three hundred million dollars of assets as of September 30, 2007. Those assets have quadrupled since 1995. The assets managed by the council produced almost one billion five hundred million dollars in investment earnings in 2006 and almost seven billion dollars of investment earnings since December 31, 1995;

(5) The council has the responsibility of the management of portfolios for over thirty state entities. The financial markets and investment strategies that must be employed to achieve satisfactory returns have become more complex and the best practices of similar state government investment agencies have evolved since the creation of the council; and

(6) Pursuant to section 72-1249.02, the operating costs of the council are charged to the income of each fund managed by the council, and such charges are transferred to the State Investment Officer's Cash Fund. Management, custodial, and service costs that are a direct expense of state funds are paid from the income of such funds.

The Nebraska Investment Council shall enter into a contract with a qualified independent organization familiar with similar state investment offices to complete a comprehensive review of the current statutory, regulatory, and organizational situation of the council, review best practices of similar state investment offices, and make recommendations to the council, the Governor, and the Legislature for changes needed to ensure that the council has adequate authority to independently execute its fiduciary responsibilities to the members and beneficiaries of the retirement systems, the achieving a better life experience program pursuant to sections 77-1401 to 77-1409, and the Nebraska educational savings plan trust and the residents of Nebraska with regards to other state funds. The recommendations submitted to the Legislature shall be submitted electronically.

As used in sections 72-1301 to 72-1305, unless the context otherwise requires, farm land shall mean land suitable for cultivation or grazing and devoted primarily to such purposes for a profit. Land suitable for cultivation or grazing acquired or owned by any entity of the state and devoted primarily to other public uses may administratively be designated as nonfarm land.

All departments, boards, and commissions of the State of Nebraska, except the Board of Educational Lands and Funds, the Department of Correctional Services, the Department of Health and Human Services, and the University of Nebraska shall cease operating any farm lands except as landlords under written leases by March 1, 1968, as provided in sections 72-1304 and 72-1305.

No capital improvements shall be made to any farm land owned by the State of Nebraska, its departments, boards or commissions, except that this provision shall not apply to the Board of Educational Lands and Funds, the Department of Correctional Services, the Department of Health and Human Services, or the University of Nebraska or projects where the only purpose of the capital improvement would be soil and water conservation.

All publicly owned farm lands not classified as school or saline lands, or lands of the Department of Health and Human Services, the Department of Correctional Services, or the University of Nebraska shall be subject to lease at a fixed annual cash rental for a term of not more than ten years. The department, commission, or board shall have authority to adopt such rules and regulations as it shall deem necessary in the leasing of such lands and to prescribe such terms and conditions of the lease as it shall deem necessary to protect the interests of the state. All departments, boards, or commissions, the Department of Health and Human Services, the Department of Correctional Services, and the University of Nebraska shall adopt and enforce a soil conservation program based on a conservation plan as developed by the local natural resources district. Failure of the lessee to utilize the land for the purpose for which the land was leased or to observe and carry out soil conservation requirements as provided in the rules and regulations of the department, commission, or board shall be cause for cancellation of the lease.

Applications to lease any such publicly owned farm lands shall be made to the department, commission, or board having charge thereof. Each such application shall contain an affidavit that the applicant desires to lease and operate such land for the applicant's own use and benefit, that the applicant will not sublease or otherwise dispose of the same without the written approval of the department, commission, or board, and will commit no waste or damage on the land nor permit others to do so. If two or more applicants apply to lease the same land, the department, commission, or board having charge of the same shall grant the lease to the applicant who, after investigation or hearing, appears to have the best qualifications according to the rules and regulations of such department, commission, or board; Provided, that the order of the filing of the application shall be given no consideration in the granting of such lease. Each application shall be accompanied by the amount due as rental for the first year for which the application is made. If, after due diligence and effort to lease such land upon application, the department, commission, or board is unable to lease part or all of the same according to its rules and regulations, it may at a stated time and after due notice receive sealed bids on a fixed cash rental basis and lease such land on the highest offer if, in the judgment of such department, commission, or board, it is for the best interest of the state to accept such bid.

The Legislature finds that:

(1) Examples of Nebraska's prairie soil in a condition which existed before the state was settled during the early part of the nineteenth century are becoming increasingly rare;

(2) Such virgin prairie is an important tool for scientists who seek to determine the highest and best use of Nebraska's soil resources;

(3) Such virgin prairie is an important part of botanical and zoological studies offered by institutions of learning in this state; and

(4) It is in the public interest that such virgin prairie which has been used as an educational tool by an educational institution of this state in suitable quantities be preserved and protected.

When any agency or political subdivision of the State of Nebraska, except the Board of Educational Lands and Funds, owns land with virgin prairie as described in section 72-1306, such agency or political subdivision may take action to establish the location and boundaries of such virgin prairie or a part thereof that may be preserved and protected. Such action shall be taken only after holding a public hearing with at least one week's advance notice of such hearing in a newspaper of general circulation in the county where the virgin prairie is located. Any such agency or political subdivision which has established the location and boundaries of such virgin prairie and which decides to sell such land may require the purchaser to enter into a covenant to continue to preserve and protect the area established as virgin prairie, and such covenant by its terms shall run with the title to the land binding future owners. In the event such covenant to preserve and protect the area as virgin prairie should lapse or be declared invalid or unconstitutional by any court of competent jurisdiction, the agency or political subdivision which sold the land or its successor in interest shall be afforded first option to repurchase the land, at the current market value to be determined as if the covenant were valid and enforceable.

No sale authorized under sections 72-1306 to 72-1308 shall take place after July 1, 1983.

The purposes of sections 72-1401 to 72-1408 are (1) to permit the state and cities, villages, and counties to make the most efficient use of their powers by enabling them to cooperate with each other in providing services and facilities, and (2) to permit cities, villages, and counties to assist the state by making available to the state, at no greater cost to the state than the cost thereof to the municipality, buildings and facilities, or portions thereof, thereby enabling the state better to serve the inhabitants of such cities, villages, and counties and the surrounding region thereof or better to serve the public of the state at large.

For the purposes of sections 72-1401 to 72-1408 municipality shall mean any city, village, or county of this state.

Any municipality is hereby authorized and empowered:

(1) To supply or make available to the state buildings or portions thereof or other facilities or parts thereof in such municipality or the zoning area authorized by law for the municipality for use either in whole or in part by the state, which buildings or facilities may be either existing buildings or existing facilities or buildings and facilities to be constructed or acquired by such municipality;

(2) To acquire, construct, reconstruct, improve, extend, equip, or furnish in such municipality or the zoning area authorized by law for the municipality any building or facility for the purposes of making the same available in whole or in part to the state;

(3) To operate and maintain any building or facility made available in whole or in part to the state;

(4) To appropriate funds for any cost incurred by the municipality in acquiring, constructing, reconstructing, improving, extending, equipping, or furnishing any such building or facility or incurred in the operation and maintenance thereof;

(5) In order to finance any costs of acquisition, construction, reconstruction, improvement, extension, equipping, or furnishing any such building or facility, to issue its general obligation bonds in the manner and pursuant to the procedures as are otherwise provided by law, or in anticipation of the receipt by such municipality of any payments to be made by the state to such municipality for the supplying by the municipality to the state of such building or facility, or portions thereof, or in anticipation of the receipt of any other revenue with respect to the building or facility, including donations, to issue its revenue bonds in the manner and pursuant to the procedures as are otherwise provided by law and to secure such revenue bonds by a pledge of any or all of the revenue or other money to be derived by the municipality from its ownership or operation of such building or facility, including any payments to be made to such municipality by the state for the use by the state of such building or facility, or donations made for or with respect to such building or facility, which building or facility shall constitute and be deemed to be a revenue-producing facility of such municipality and which revenue bonds shall not impose any general liability upon the municipality. Any city having a home rule charter may, in the discretion of the governing body of such city, issue such general obligation bonds or revenue bonds either in the manner and pursuant to such procedures as are provided by state statutes or in the manner and pursuant to such procedures as are provided by such home rule charter; and

(6) To enter into an agreement with the state provided by the provisions of section 72-1405, which agreement shall be approved by the governing body of such municipality by ordinance, resolution, or otherwise before such agreement shall enter into force.

The issuance of bonds by a municipality as provided in this section shall not create or impose any liability on the state, whether such bonds be general obligation bonds or revenue bonds of such municipality, and the state shall not be indebted thereon. Any such bond issued by a municipality shall recite therein in substance that such bond is solely the obligation of the municipality issuing the same and is not an obligation of the State of Nebraska nor a debt of the State of Nebraska within the meaning of any constitutional or statutory limitation upon the creation of indebtedness of the State of Nebraska and that the State of Nebraska is not, and in no event shall be, liable for the payment thereof or interest thereon.

In the event that the municipality is a party to an agreement entered into under the provisions of section 13-804 or 13-2504, such municipality may enter into an agreement with the state pursuant to the provisions of sections 72-1401 to 72-1408 whereby the municipality may supply or make available to the state all or a portion of that part or that use of the building or facility to which the municipality is entitled under the agreement entered into under the provisions of section 13-804 or 13-2504, but the municipality may enter into such an agreement with the state only if the terms and provisions thereof and the carrying out of such provisions does not violate the agreement of the municipality entered into under the provisions of section 13-804 or 13-2504.

Neither sections 72-1401 to 72-1408 nor anything contained therein shall be construed as a reduction or limitation upon any powers which a municipality might otherwise have under law or charter, but shall be construed as cumulative, and the powers granted to a municipality herein shall be in addition to any other powers which it might now have.

The State of Nebraska is hereby authorized to enter into agreements with a municipality providing for the supplying by such municipality to the state of buildings or other facilities or portions thereof in such municipality or the zoning area authorized by law for the municipality. No such agreement shall be entered into unless (1) the Legislature shall theretofore specify the municipality and in general terms the type of building or facility or portion thereof to which such agreement shall pertain, and (2) in the event that any such agreement shall deal in whole or in part with the provision of services or facilities with regard to which an officer or agency of the state government has constitutional or statutory powers of control, the agreement shall, as a condition precedent to the entry into force, be submitted to the state officer or agency for such power or control and shall be approved or disapproved by him or it within all matters of his or its jurisdiction. Each such agreement shall be approved by the Governor, shall be executed in the name and on behalf of the state and shall be signed by the Governor.

(1) Any agreement entered into between the state and a municipality pursuant to the provisions of sections 72-1401 to 72-1408 shall contain provisions specifying the following:

(a) The dates of commencement and termination of the agreement; Provided, that the duration of any such agreement from such commencement date, together with all extensions or renewals thereof, shall not exceed fifty years;

(b) The particular building or facility or portions thereof to which such agreement pertains;

(c) Whether the building or facility shall be used exclusively by the state or in part by the state and in part by other public bodies;

(d) The respective obligations of the parties to the agreement with respect to the construction, acquisition, furnishing and equipping and operation and maintenance of the building or facility;

(e) The allocation between the parties to the agreement of the costs of operation and maintenance and of utilities of such building or facility. In the event that the state is the sole user of such building or facility or is the occupier of the largest amount of space in such building or the primary user of the facility, such agreement may provide that all costs of operation and maintenance of the building or facility shall be at the expense of the state, in which event, if the state is not the sole user and occupier of the building or facility, the agreement shall provide for reimbursement to the state for proportionate costs of operation and maintenance supplied by the state to the other users and occupiers of the building or facility;

(f) The apportionment of all other costs to the parties thereto and the payments to be made by the state to the municipality for the use by the state of such building or facility or portion thereof. The computation of such costs and payments may reflect and include such items as would customarily be included by private parties entering into similar agreements for similar types of buildings and facilities, such as, but not limited to, indebtedness incurred with respect to such building or facility and reserves therefor, insurance, assessments and taxes or payments in lieu of taxes;

(g) Increasing the amount of costs allocated to the parties thereunder and the amount of the payments to be made by the state to the municipality thereunder in the event the items entered into in determining the costs to the parties thereunder and the payments by the state to the municipality thereunder shall be increased during the duration of such agreement and for credits or reimbursements by the parties thereto in the event of decreases in any such items, it being the intent of sections 72-1401 to 72-1408 that neither the state nor the municipality shall derive credit, profit or surplus by reason of the supplying by such municipality to the state of buildings or facilities or portions thereof, but that the cost to the state for the supplying by the municipality of such building or facility or portion thereof shall be at cost to the municipality;

(h) Permitting the occupancy or use of such building or facility or portion thereof by any officer, board, department, bureau or agency of the state so long as the use or occupancy thereof is consistent with the type and nature of such building or facility, it being the intention of sections 72-1401 to 72-1408 that the state may vary the use or occupancy of the building or facility or portion thereof from one officer, board, bureau, agency or department of the state to another in accordance with the interests of the state; and

(i) If the state is the sole user and occupier of the building or facility, or is the occupier of the largest amount of space in the building or facility or the primary user of the facility, granting the state an option to purchase such building or facility so long as the state shall continue to be such occupier or user. Such purchase price shall be established by the parties in the agreement and may be based on depreciated value or such other standard as the parties thereto may agree, and may include provision for any payment of damages which may be occasioned by the municipality upon the exercise by the state of such purchase option; Provided, that it shall be specified in such agreement that such purchase price shall be recomputed at the time of any exercise of the purchase option so that no gain or loss results to the municipality by reason of the exercise of such option by the state.

(2) Any such agreement may contain provisions as to the following:

(a) Type of insurance to be carried and whether such insurance shall be carried by the state or municipality, and the rights and obligations of the parties in the event of damage or destruction in whole or in part of such building or facility;

(b) Provision for indemnification to the municipality by the state for any liability incurred by the municipality by reason of the actions of the state, and for indemnification to the state by the municipality for any liability incurred by the state by reason of the actions of the municipality;

(c) In the event that the municipality is the occupier of the larger amount of space in the building or the primary user of the facility, granting to the municipality the right to terminate the agreement prior to the date of termination stated therein, upon such notice as is specified in such agreement, in the event the municipality determines that the space occupied by the state, or the full use of the facility thereof by the municipality, are required by the municipality in order to carry out its purposes;

(d) The rights and obligations of the parties thereto in the event of condemnation in whole or in part of such building or facility; and

(e) Any other matters deemed necessary or proper by the parties thereto.

Any agreement entered into pursuant to this section may be in the form of a lease agreement or agreement to lease and, subject to the provisions of section 72-1406, may contain provisions similar to those customarily found in a lease between private parties or customarily found in a lease between parties for buildings or facilities similar to the type of building or facility to which the agreement between the state and municipality shall pertain.

It shall be a condition precedent to any agreement entered into pursuant to the provisions of sections 72-1401 to 72-1408, whether or not such condition be specified in any such agreement, that the state shall incur no liability under such agreement unless an appropriation shall have been made by the Legislature for the payment of any sums to become due and payable by the state under such agreement, in which event the state shall be liable thereunder only for the period for which an appropriation has been lawfully made, and that the continued effectiveness of such agreement shall be subject to the condition that appropriations shall be made from time to time by the Legislature for the payment of any sums to become due and payable by the state thereunder thereafter, in which event the state shall be liable thereunder only for the respective period or periods for which such an appropriation or appropriations have been lawfully made. In the event that the Legislature shall fail prior to the commencement of the term of the agreement to make an appropriation for the payment of sums which would otherwise become due and payable by the state thereunder, the effectiveness of the agreement shall thereupon immediately terminate, or in the event that the Legislature shall fail thereafter to make appropriations for the payment of sums which would otherwise become due and payable thereunder by the state, such agreement shall immediately terminate upon the last day of any period for which an appropriation has been lawfully made by the Legislature. The provisions of this section shall not prohibit the entering into of any agreement authorized by sections 72-1401 to 72-1408 prior to the making of any such appropriation, but the state shall not incur any liability thereunder thereby.

In the event that the state shall be the sole occupier of any building furnished by the municipality or the sole user of a facility furnished by the municipality, the municipality shall not be liable in tort, contract or otherwise for actions by the state solely by reason of the fact that legal ownership, or title, to such building or facility may be in such municipality; Provided, that the provisions of this section shall not be deemed or construed in any way to affect any rights of holders of bonds of a municipality issued to finance such building or facility or the obligations of the municipality to the holders of such bonds.

Whenever any municipality has entered into an agreement with the state pursuant to the provisions of section 72-1405, the state may construct a building or facility for its use which may be used, operated and maintained jointly with the building or facility of the municipality made available to the state as authorized herein, and the state and the municipality are authorized to enter into an agreement for that purpose.

The State of Nebraska is hereby empowered to enter into a lease or sublease, as lessor or sublessor, with any public body corporate or any political subdivision of the State of Nebraska relating to any building or other facility which is or has been the subject of an agreement pursuant to the provisions of section 72-1405.

Any agreement entered into between the state and a municipality pursuant to the provisions of sections 72-1401 to 72-1408 may provide for the following:

(1) The subleasing by the State of Nebraska to any public body corporate or political subdivision of the State of Nebraska of a portion of the space in the building or other facility with respect to which the agreement has been made; and

(2) The leasing by such municipality to any public body corporate or political subdivision of the State of Nebraska of a portion of the space in the building or other facility with respect to which the agreement has been made.

Any municipality is hereby empowered to enter into a lease, as lessor, with any public body corporate or political subdivision of the State of Nebraska relating to any building or other facility which is the subject of an agreement pursuant to the provisions of section 72-1405.

Any public body corporate or political subdivision of the State of Nebraska is hereby empowered to enter into a lease or sublease, as lessee or sublessee, with the State of Nebraska or any municipality relating to any building or other facility which is or has been the subject of an agreement pursuant to the provisions of section 72-1405.

For purposes of sections 72-1501 to 72-1503, unless the context otherwise requires:

(1) Agency shall mean the State of Nebraska or any agency, commission, department, division, or office thereof, including the University of Nebraska and the state colleges;

(2) Account shall mean any amount of money owed to any agency by a political subdivision;

(3) Delinquent, as it applies to accounts, shall mean any account, not the subject of a bona fide dispute or litigation, that is not paid on or before the date specified by statute, rule, regulation, agreement, or court order, or the prior notice of the agency that payment of such account is now due;

(4) Political subdivision shall mean any city, village, township, district, county, or other political subdivision of the State of Nebraska;

(5) Director shall mean the Director of Administrative Services; and

(6) State aid payment shall mean any money appropriated from the General Fund for payment to a political subdivision.

Unless otherwise specifically provided by law, delinquent accounts shall be collected in the manner provided by sections 72-1501 to 72-1503.

(1) Each agency shall notify the director of all accounts in an amount, including interest and penalties, in excess of one thousand dollars that have been delinquent for a period of sixty days or more. Such notice shall certify the amount due, any penalties or interest thereon, and the political subdivision responsible for the payment of the account.

(2) Upon receipt of the notice required pursuant to subsection (1) of this section, the director shall notify the political subdivision of the delinquency and that such amount and any interest and penalties thereon, if not paid within thirty days, shall be withheld from the next state aid payment to such political subdivision and that, if the amount of such next state aid payment is insufficient to pay the account in full, plus interest and penalties thereon, a deduction shall continue to be made from subsequent state aid payments payable to such political subdivision until such time as the account and interest and penalties thereon are paid in full.

(3) At the end of the thirty-day period, the director shall contact the reporting agency and verify that the account is still delinquent. If the agency verifies that the account is still delinquent, the director shall notify the State Treasurer of the amount that shall be withheld from state aid payments to the political subdivision and the state aid payments from which such amount shall be withheld.

(4) The State Treasurer shall contact the agency in question and upon verification by the agency that the account remains delinquent, shall withhold the specified amounts from the specified state aid payments. The State Treasurer shall then credit the amount withheld to the fund to which the original payment was due.

When any person is indebted to the State of Nebraska on account of any tax or other obligation then due and owing to the state, the officer, commission, or other division of state government charged with administration of the law under which such tax or other obligation arose may file with the Director of Administrative Services a statement of the amount so owing and shall at the same time mail a copy of such statement to the person owing such tax or other obligation. When such statement is filed, the director shall withhold an amount, not exceeding the amount of the statement, from any debt then owing by the State of Nebraska to such person and by warrant or other order shall direct the State Treasurer to credit the amount so withheld to the proper fund. If the amount so withheld is not sufficient to satisfy the statement in full, successive statements may be filed with the director whenever the State of Nebraska becomes further indebted to such person. The withholding referred to in this section shall apply solely to money owing by the state.

Sections 72-1701 to 72-1712 shall be known and may be cited as the Nebraska Small Business Incubator Act.

For purposes of the Nebraska Small Business Incubator Act:

(1) Business incubation center shall mean a facility in which units of space may be leased by a tenant and in which a tenant has access to business development services as described in section 72-1712;

(2) Community board shall mean a board created pursuant to section 72-1704;

(3) Public agency shall mean a state agency or commission or a political subdivision which retains ownership or control of one or more public buildings; and

(4) Tenant shall mean a sole proprietorship, business partnership, limited liability company, or corporation operating a business for profit and leasing or otherwise occupying space in a business incubation center.

Upon receipt of a petition from a community board pursuant to section 72-1705, a public agency may designate, in whole or in part, vacant or partially vacant public buildings as business incubation centers for the purpose of encouraging and assisting the establishment and expansion of small businesses within this state. A community board may lease the building from the public agency.

(1) A political subdivision, educational institution, or other organization that desires to have a vacant or partially vacant public building designated, in whole or in part, as a business incubation center shall appoint, in conjunction with political subdivisions or private organizations that agree to contribute monetarily or in kind to the center, a community board to perform the duties required by the Nebraska Small Business Incubator Act. The appointing body may designate an existing board of an economic development entity, upon consent of that entity, as the community board.

(2) Except as provided in subsection (3) of this section, the community board shall consist of not more than fifteen persons. The members of the community board shall consist of representatives from key segments of the community, including, but not limited to, political, financial, business, labor, and educational representatives. The community board shall elect from its members a chairperson.

(3) An existing board of an economic development entity designated as a community board pursuant to subsection (1) of this section need not meet the number requirements of subsection (2) of this section but shall meet the composition requirements of subsection (2) of this section.

(4) Community board members shall serve at the pleasure of the appointing bodies or until the community board is dissolved by the appointing body. Dissolution shall not occur before the expiration of any lease agreement between the community board and a public agency.

(5) Except as provided in subsection (7) of this section, the business which the community board may perform shall be conducted at a public meeting held in compliance with the Open Meetings Act.

(6) Except as provided in subsection (7) of this section, a community board shall be subject to sections 84-712 to 84-712.09.

(7) The community board shall not disclose, orally or in writing, matters of a proprietary nature as described in subsection (7) of section 72-1708 without the consent of the applicant or tenant submitting the information.

(1) The community board shall:

(a) Identify the building or part of the building under consideration for designation as a business incubation center;

(b) Advertise the concept of a business incubation center in the surrounding area;

(c) Solicit the views of the community concerning the designation of the building or part of the building under consideration as a business incubation center;

(d) Identify possible tenants; and

(e) Obtain commitments from persons, organizations, businesses, or other sources amounting to at least fifty percent of those costs not covered by rental fees that the board estimates will be needed for the establishment and operation of the business incubation center for three years.

(2) If after performing the duties required by subsection (1) of this section the community board determines that a designation of the building under consideration as a business incubation center is desirable and possible, the community board shall petition the public agency which has ownership or control of such building for the designation.

(1) After filing a petition pursuant to section 72-1705, the community board, in cooperation with the public agency, shall conduct and complete within one hundred eighty calendar days a center feasibility study. The study shall include, but not be limited to, all of the following factors:

(a) Necessary lease, purchase, renovation, or construction costs;

(b) Estimated rental costs for tenants;

(c) Estimated utility costs;

(d) Estimated wage or salary rates of potential employees of the center which may include a building manager, receptionist, typist, and security guard;

(e) Proposed operating budget for the center;

(f) Prospects of attracting suitable businesses to the center; and

(g) The ability of the community to provide necessary support for the center, including, but not limited to, technical assistance and training, assistance in attracting employees, assistance in relocating a business, assistance in business startup, and library facilities.

(2) Within thirty calendar days after completion of the feasibility study, the public agency, based upon the study, the criteria set forth in subsection (1) of this section, and any plans for future use of the building by the public agency, shall notify the community board of its decision. If the public agency does not designate the building as a business incubation center, the public agency shall set forth the reasons for its decision in its notification letter to the community board.

(1) Except as provided in subsection (2) of this section, a designation of a building as a business incubation center shall remain in effect for such time as agreed to by the public agency and the community board.

(2) A public agency which has a building or a portion of a building designated as a business incubation center and which desires to terminate such designation prior to the date agreed to in subsection (1) of this section may terminate such designation by notifying the community board at least two years before the time the building will be needed. Upon receipt of notification, the community board shall publicize the closing date of the center to the tenants and to the community.

When a building is designated as a business incubation center by a public agency, its community board shall accept applications from any person desiring to start or expand a small business and to locate that business within the business incubation center. The community board shall develop an application form requiring at least the following information:

(1) The type of business that the applicant wishes to start or expand;

(2) An estimate of the number of employees the applicant will need in order to start or expand the business and a two-year projection of future employment;

(3) The skill and educational level of the employees that the applicant plans to hire;

(4) The ability of the applicant to start or operate a successful business;

(5) A general statement as to why the applicant wishes to be accepted into the business incubation center;

(6) A signed statement by the applicant that he or she understands and accepts the obligations placed upon him or her under section 72-1711 if accepted into the business incubation center; and

(7) A designation by the applicant of information that the applicant considers to be of a proprietary nature and that he or she does not want to be made public.

(1) A community board shall evaluate applicants who want to start or expand a small business and to locate within the business incubation center based upon, but not limited to, all of the following factors:

(a) The likelihood that the business will be profitable;

(b) Whether the product that would be manufactured or the service that would be rendered would be new to the state or the community;

(c) The potential marketability of the product or service;

(d) The likelihood that the business will generate a significant number of new jobs and not eliminate existing jobs;

(e) The likelihood that new jobs generated will be filled by persons who presently are unemployed or whose skills are underemployed; and

(f) The likelihood that the business will not be started if the applicant is not accepted into the business incubation center.

(2) A community board shall forward to each applicant whose application it rejects notice of its rejection together with the reasons for the rejection.

(3) A community board shall forward to each applicant it favorably evaluates notification of its decision and of whether or not space exists to accept the applicant.

A community board shall report electronically at least annually to the Legislature on the activities of the community board and the center. The report shall include, at minimum, the name of each applicant whose application the community board rejects, together with the reasons for the rejection, and the name of each applicant whose application the community board favorably evaluates.

A tenant shall:

(1) Pay rent to the community board in an amount to be determined by the community board. The community board may agree to have the rent for a predetermined number of months payable at a later date by which time the business is expected to have received committed starting capital;

(2) Pay utilities as determined by the community board; and

(3) Relocate to a permanent location not later than two years after entering a business incubation center, except that a business may request in writing extensions of this requirement for periods of not more than twelve months. The community board may grant extensions of up to twelve months at a time based upon a review of the factors in subsection (1) of section 72-1709. A tenant shall be given an opportunity to submit written information concerning those factors to the community board before the community board makes its decision approving or denying an extension.

(1) In return for meeting the requirements of section 72-1711, a tenant shall receive the following benefits:

(a) Physical space within the center;

(b) The services of a building manager; and

(c) Services or facilities available within the center that are agreed upon by the community board and the tenants. These services and facilities may include, but are not limited to, cleaning, building security, typing, and reception services, conference, laboratory, and library facilities, duplicating machines, and computers.

(2) In addition to the benefits described in subsection (1) of this section, the center may make available certain professional services on a fee-for-use basis. These services, which the building manager or community board shall arrange, may include, but are not limited to, information on government regulations, basic management skills, advertising and promotion, marketing, sales, control of inventory levels, recruitment of employees, labor relations, and financial counseling in areas such as venture capital, risk management, taxes, insurance, and qualifying for government small business loans.

The Legislature finds that, due to severe weather conditions and diseases, cities and villages across Nebraska are experiencing tree mortality. Most cities and villages have been unable to act decisively due to insufficient funds to remove, dispose of, and replace trees situated on public land. Dead trees are fast becoming a liability and a safety problem for cities and villages.

It is the intent of the Legislature that two hundred fifty thousand dollars be appropriated from the General Fund for fiscal year 1994-95 for a program to fund tree removal, disposal, and replacement costs. The Nebraska Forest Service of the University of Nebraska Institute of Agriculture and Natural Resources Department of Forestry, Fisheries and Wildlife shall administer the program through a grant process, and the program shall be known as the Nebraska Tree Recovery Program. The Nebraska Community Forestry Council shall act as an advisory body in administration of the program. The service shall adopt and promulgate rules and regulations necessary to carry out sections 72-1901 to 72-1904.

Any city, village, county, or agency thereof or any state agency responsible for the upkeep of state-owned real property may apply for a grant from the Nebraska Tree Recovery Program. Any civic group, tree advisory board, or other entity working with a governmental agency on tree planting, removal, and replacement may apply for a grant under the program.

Applications for grants for the first year of the Nebraska Tree Recovery Program shall be received not later than July 1, 1994, and grants shall be awarded not later than October 1, 1994. In subsequent years the Nebraska Forest Service of the University of Nebraska Institute of Agriculture and Natural Resources Department of Forestry, Fisheries and Wildlife shall establish the date by which applications must be submitted, and grants shall be awarded not later than ninety days after such date.

The following shall be considered in reviewing a proposal of an applicant for a grant from the program:

(1) Grant money shall be used to plant or remove trees only on land owned by state or local governments, including parks, public grounds, and city rights-of-way;

(2) Trees shall be purchased from commercial Nebraska nurseries;

(3) The applicant shall provide funds to match the grant at a fifty-fifty match rate;

(4) Local labor may be considered as in-kind participation in calculating the amount of the applicant's matching funds required by subdivision (3) of this section;

(5) No state or local funds under the program shall be used to purchase real property;

(6) Tree species to be planted under the proposal shall be adaptable to Nebraska and the local area in order for such trees to grow and thrive;

(7) Arboricultural experts may be consulted at the local and state levels for expertise in developing local tree replanting programs;

(8) Local programs shall indicate a partnership between the applicant and property owners showing how to best replant and maintain trees for the first three years after planting; and

(9) Cities, villages, civic groups, students, and families should be involved in selecting, replanting, and caring for trees for the valuable educational aspects of the program.

Sections 72-2004.01 to 72-2012 shall be known and may be cited as the Niobrara Scenic River Act.

As a result of the recent federal court ruling in National Parks and Conservation Association v. National Park Service and in order to maintain an aspect of local control over the Niobrara scenic river corridor, the Legislature finds that there is a need to reconstitute the existing Niobrara Council with the express authority and responsibility to manage the Niobrara scenic river corridor in conjunction with the National Park Service. The purpose of the Niobrara Scenic River Act is to effectuate changes in the council necessary to ensure the continuation of the cooperative management relationship between the Niobrara Council and the National Park Service so that local participation and control over this valuable natural resource can be maintained.

For purposes of the Niobrara Scenic River Act, Niobrara scenic river corridor means the area designated as a national scenic river and a part of the national wild and scenic rivers system under 16 U.S.C. 1274(a)(117), as such section existed on May 24, 1991, and described in the 1996 Niobrara National Scenic River General Management Plan/Environmental Impact Statement.

(1) The Niobrara Council is created. The council membership shall include:

(a) A commissioner from each of the county boards of Brown, Cherry, Keya Paha, and Rock counties chosen by the county board of the respective county;

(b) A representative of the Middle Niobrara Natural Resources District and the Lower Niobrara Natural Resources District chosen by the board of the respective district;

(c) The secretary of the Game and Parks Commission or his or her designee;

(d) The regional director for the National Park Service or his or her designee and the regional director for the United States Fish and Wildlife Service or his or her designee. The members under this subdivision shall be nonvoting members unless and until the agencies represented by these members formally authorize such members to vote on all matters before the council by notifying the council and the Governor in writing;

(e) An individual from each of Brown, Cherry, Keya Paha, and Rock counties who resides in the Niobrara River drainage area and owns land in the Niobrara scenic river corridor chosen by the Governor from a list of at least three individuals, or fewer if there are not at least three qualified individuals, from each county submitted by the county board members on the council;

(f) A representative from a recreational business operating within the Niobrara scenic river corridor chosen by the Governor from a list of at least three individuals, or fewer if there are not at least three qualified individuals, submitted by the county board members on the council;

(g) A timber industry representative operating within the Niobrara scenic river corridor chosen by the Governor from a list of at least three individuals, or fewer if there are not at least three qualified individuals, submitted by the county board members on the council; and

(h) A representative of a recognized, nonprofit environmental, conservation, or wildlife organization chosen by the Governor from a list of at least three individuals, or fewer if there are not at least three qualified individuals, submitted by the county board members on the council.

The council members shall hold office for three-year terms and until a successor is appointed and qualified. The council members shall serve at the pleasure of the appointing board or the Governor.

(2) The council shall elect a chairperson, a vice-chairperson, a secretary, and a treasurer who shall jointly serve as the executive committee for the council. The council shall meet on a regular basis with a minimum of six meetings per year. Special meetings may be called by any member of the executive committee or at the request of a simple majority of the members of the council.

(3) A quorum shall be present at a meeting before any action may be taken by the council. A quorum shall be a majority of the members who are selected and serving and who vote on issues before the council. All actions of the council require a majority vote of the quorum present at any meeting, except that any vote to reject or adopt any zoning regulation or variance under section 72-2010 requires a vote of two-thirds of all the council members who are selected and serving and who vote on issues before the council.

(4) Members shall be reimbursed for expenses incurred in carrying out their duties on the council as provided in sections 81-1174 to 81-1177.

The mission of the Niobrara Council is to assist in all aspects of the management of the Niobrara scenic river corridor since portions of the Niobrara River have been designated as a national scenic river under 16 U.S.C. 1274(a)(117), as such section existed on May 24, 1991, giving consideration and respect to local and governmental input and private landowner rights, and to maintain and protect the integrity of the resources associated with the Niobrara scenic river corridor. The council shall perform management functions related to the Niobrara scenic river corridor, including, but not limited to, those authorized and delegated to it by the National Park Service. The council may promulgate its own rules and internal policies to carry out the purposes of the Niobrara Scenic River Act. The Game and Parks Commission may provide administrative, budgetary, operational, and programmatic support when requested by the council to carry out its duties. In the Niobrara scenic river corridor, the council may hold title to real estate in the name of the council. The council may purchase, accept gifts of, or trade real estate and may obtain conservation easements as provided in the Conservation and Preservation Easements Act. Acquisition of conservation easements outside the boundaries of the Niobrara scenic river corridor shall require the approval of the appropriate governing body as provided in section 76-2,112. On December 1, 2016, and on each December 1 thereafter, the council shall electronically submit an annual report to the Clerk of the Legislature and the chairperson of the Natural Resources Committee of the Legislature describing expenditures made pursuant to the Niobrara Scenic River Act.

(1) The Niobrara Council Fund is created. The fund shall be administered by the Niobrara Council. The council may accept any private or public funds to carry out its work and such funds shall be remitted to the State Treasurer for credit to the fund. The fund shall consist of such funds and legislative appropriations made to the council. Transfers may be made from the fund to the General Fund at the direction of the Legislature through June 30, 2011. Any money in the Niobrara Council Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(2) The State Treasurer shall, on March 31, 2016, transfer the balance of any money in the Nebraska Youth Conservation Program Fund, after the transfer of one hundred thousand dollars to the Cowboy Trail Fund as provided for in subsection (2) of section 37-913 has been made, to the Niobrara Council Fund.

The Niobrara Council shall review and approve or reject all zoning regulations, including existing regulations, new regulations, proposed regulations, and variances of any type including variances for use and location, which affect land in the Niobrara scenic river corridor that is not incorporated within the boundaries of a municipality. If the council rejects a zoning regulation or variance, the governing body enacting the regulation or variance has six months to present an alternative to the council. If no alternative is proposed or if the alternative is also rejected, the council may adopt zoning regulations for such area. In counties without zoning the council may develop and enforce zoning regulations within the Niobrara scenic river corridor under the guidance of the federal Wild and Scenic Rivers Act or under the guidance of the general management plan as written by the National Park Service. The council shall follow the requirements for zoning regulations in sections 23-114 to 23-114.05 and 23-164 to 23-174.10, except that no separate planning commission is required and the council shall fulfill the duties of both the county board and the planning commission in such sections.

(1) Any state or state-assisted activity or undertaking proposed within the Niobrara scenic river corridor shall be consistent with the purpose of the scenic river designation, including the scenic river's free-flowing condition and scenic, geological, biological, agricultural, historic, and prehistoric resources.

(2) The head of any state or local agency having direct or indirect jurisdiction over a proposed state or state-assisted undertaking within the Niobrara scenic river corridor and the head of any agency having authority to license or permit any undertaking in such area shall prepare a detailed proposal and submit it to the Niobrara Council for its review.

(3) The council shall review the proposal and consult with the agency. The council has ninety days after the date that the proposal is received to make a determination of whether or not the proposed action is consistent with the purposes of this section. If the council determines that the proposal is not consistent with the purposes of this section, the council shall so notify the agency and the agency shall not proceed with the action until after a justification for the action has been submitted to the Governor and approved by the Governor in writing. The justification shall include the following elements: The anticipated current, future, and cumulative effects on the scenic and natural resources of the designated scenic river corridor; the social and economic necessity for the proposed action; all possible alternatives to the proposed action including a no-action alternative; the comparative benefits of proposed alternative actions; and the mitigation measures outlined in the proposed action.

The Niobrara Council shall not have zoning jurisdiction outside the boundaries of the Niobrara scenic river corridor.

The Governor's Residence Advisory Commission is created. The commission shall conduct an annual inspection of the Governor's residence. A report on the inspection shall be submitted to the Governor within thirty days after the day of the inspection. The report shall include recommendations for major maintenance or repair projects, if needed. Implementation and priority of an approved major maintenance or repair project shall be determined by the Governor in cooperation with the Director of Administrative Services. Additionally, no changes, additions, deletions, or other alterations to the residence, including its exterior, interior, decorative objects, contents, or grounds shall be made without the prior approval of the commission, except for the Governor's private living quarters located on the second floor of the residence.

The Governor's Residence Advisory Commission consists of the following members: (1) The Governor's spouse; (2) the Director of Administrative Services or his or her designee; (3) the administrator of the Task Force for Building Renewal; (4) six at-large members, two from each congressional district, with no more than three of the six members being from the same political party; (5) the Director of the Nebraska State Historical Society; and (6) a current professional member of the American Society of Interior Designers. The Governor's spouse is designated the chairperson of the Governor's Residence Advisory Commission. If the Governor is unmarried or the Governor's spouse is unable to fulfill his or her duties on the commission, the Governor shall appoint an at-large member to fill that seat on the commission. The at-large member shall have the same duties as the Governor's spouse would have had. The Director of Administrative Services or his or her designee is designated the vice-chairperson of the commission. The administrator of the Task Force for Building Renewal is designated the secretary of the commission and is responsible for the submission of the annual report and any other reports or correspondence from the commission.

The members of the Governor's Residence Advisory Commission shall serve without compensation. The members shall be reimbursed for expenses as provided in sections 81-1174 to 81-1177.

The Governor's spouse shall remain on the Governor's Residence Advisory Commission as chairperson during the time his or her spouse is Governor, but in the case of an at-large member appointed in place of the Governor's spouse, the at-large member shall serve at the pleasure of the Governor. The agency directors and task force administrator on the commission shall serve as long as such persons hold those positions. The remaining members of the commission shall serve four-year terms, subject to removal by the Governor for cause. Vacancies on the commission caused by the death, removal, or resignation of a member shall be filled by the Governor for the remainder of the unexpired term.

The Governor's Residence Advisory Commission shall meet at the direction of the chairperson of the commission. At least one meeting shall be held after the annual inspection. A simple majority of the commission shall constitute a quorum for the transaction of business.

Sections 72-2201 to 72-2216 shall be known and may be cited as the Nebraska State Capitol Preservation and Restoration Act.

(1) In 1919, the Nebraska State Capitol Commission began the search for an architect to design a new State Capitol to replace the existing structure in Lincoln. New York architect Bertram Grosvenor Goodhue was selected as the chief architect, and construction began in April 1922. During the ten-year construction period, the Nebraska State Capitol Commission, comprised at that time of the Governor, the State Engineer, and three appointed members, oversaw the building's construction, with the final phase completed in 1932. The final cost of construction was nine million eight hundred thousand dollars.

(2) Considered one of the world's greatest architectural achievements, the Nebraska State Capitol contains all three branches of government and is an inspiring monument for all Nebraskans. No other building in the State of Nebraska is as recognized and open to all Nebraskans as the State Capitol.

(3) Because of the history and unique beauty of the State Capitol, it is the intent of the Legislature that the Office of the Nebraska Capitol Commission, created pursuant to the Nebraska State Capitol Preservation and Restoration Act, provide the highest quality preservation, restoration, and enhancement of and long-term planning for the State Capitol and capitol grounds for the perpetual use by state government and the enjoyment of all persons.

For purposes of the Nebraska State Capitol Preservation and Restoration Act:

(1) Administrator means the State Capitol Administrator;

(2) Commission means the Nebraska Capitol Commission; and

(3) Office means the Office of the Nebraska Capitol Commission.

The Nebraska Capitol Commission shall be the custodian of the State Capitol and capitol grounds. To aid in these duties, the Office of the Nebraska Capitol Commission is established under the Nebraska Capitol Commission. The State Capitol Administrator shall be the head of the office and shall be recommended by the commission and appointed by the Governor. The compensation of the administrator shall be established by the Governor, subject to availability of appropriations. For administrative and budgetary purposes, the office shall be housed within the Department of Administrative Services, which department shall provide all of the accounting, personnel, information management, and communication support services for the office. The office and all staff shall be physically located in the State Capitol. All administration and budgetary decisions for the office shall be made by the administrator.

(1) The administrator shall have the authority to develop, produce, and distribute books, brochures, pictures, slides, postcards, and other informational or promotional material concerning the State Capitol. The administrator shall have control over money received from the distribution of such material and from private or public donations. Such proceeds and donations shall be remitted to the State Treasurer for credit to the Capitol Restoration Cash Fund.

(2) The administrator, after receiving advice from the commission, is authorized to provide facilities for restaurants, cafeterias, or other services and newsstands for convenience of state officers and employees in the State Capitol when such space is not needed for public use. Proceeds from the operations and rental of such facilities shall be remitted to the State Treasurer for credit to the Capitol Restoration Cash Fund.

(3) The administrator, after receiving advice from the commission, is authorized to lease, rent, or permit for use as apartments, dwellings, or offices any or all of the property acquired for future building needs for the State Capitol and capitol grounds, except that all leases shall contain the provision that upon notice that such property is needed for public use, the use or occupancy thereof shall cease. All money received as rent from such property shall be remitted to the State Treasurer for credit to the Capitol Restoration Cash Fund and, with interest accrued, be designated as prescribed in section 72-2211.

(4) The administrator shall see that all parts and apartments of the State Capitol and capitol grounds are properly ventilated and kept clean and orderly.

(5) The administrator shall acquire a flag of the United States of America of suitable and convenient size. The colors of the flag shall be fast colors, and the cloth shall be of substantial material. The administrator shall display this flag and the Nebraska State Flag of similar specifications prominently on State Capitol grounds.

(6) The administrator shall ensure that, at proper hours, all visitors are properly escorted through the State Capitol and over the capitol grounds, free of expense.

(7) The administrator shall at all times have charge of and supervision over janitors and other employees in and about the State Capitol and capitol grounds.

(8) The administrator shall institute, in the name of the state and with the advice of the Attorney General, civil and criminal proceedings against any person for injury or threatened injury to any public property in the State Capitol or on the capitol grounds or for committing or threatening to commit a nuisance therein or thereon.

(9) The administrator shall keep in his or her office a complete record containing plans, specifications, and surveys of the State Capitol and capitol grounds and of underground construction thereto.

The administrator, with the approval of the commission, may enter into agreements to provide additional facility-related maintenance, renovation, and operation services requested by agencies housed in the State Capitol. The charges collected from such agencies shall be placed in the Capitol Commission Revolving Fund. The administrator shall make payments for the costs associated with such additional services from the Capitol Commission Revolving Fund.

The administrator shall have (1) a bachelor's degree or higher degree in architecture from an accredited college or university and (2) at least five years of administrative experience in historic preservation and planning, design, and construction of major construction projects.

Before entering upon the discharge of the duties of his or her office, the administrator shall be bonded or insured as required by section 11-201. The premium shall be paid by the state.

The administrator, with the advice of the commission, shall employ all assistants, architects, engineers, janitors, custodians, and caretakers necessary for the efficient and economical discharge of the duties imposed by the Nebraska State Capitol Preservation and Restoration Act. All such employees, except for the administrator, shall be included within the State Personnel System. The administrator shall purchase, through the materiel division of the Department of Administrative Services, such supplies, material, and equipment as may be necessary for the proper maintenance of the State Capitol and capitol grounds. The total expenditures for such purposes shall not exceed the appropriations made therefor.

(1) The office shall have the primary functions and responsibilities of facilities planning, facilities construction, and facilities administration for the State Capitol and capitol grounds and may adopt and promulgate rules and regulations to carry out the provisions of this section and subsection (1) of section 81-1108.38.

(2) Facilities planning includes the following responsibilities and duties:

(a) To maintain utilization records of the State Capitol and capitol grounds;

(b) To define and review program statements based on space utilization standards;

(c) To prepare and review planning and construction documents;

(d) To develop and maintain time-cost schedules for capital construction projects;

(e) To prepare annually a long-range plan for the commission, listing the maintenance needed for the interior and exterior of the State Capitol; and

(f) To assist the commission, the budget division of the Department of Administrative Services, and the Legislative Fiscal Analyst in preparing budget recommendations.

(3) Facilities construction includes the following powers and duties:

(a) To maintain close contact with and inspections of each project for the State Capitol and capitol grounds so as to assure execution of the highest quality work product, time-cost schedules, and efficient contract performance;

(b) To perform final acceptance inspections and evaluations; and

(c) To coordinate all modifications or change orders and progress payment orders.

(4) Facilities administration includes the following powers and duties:

(a) To provide or assure adequate administration and preservation maintenance of, repairs to, and custodial duties for the State Capitol and capitol grounds;

(b) To be responsible for all maintenance, repairs, and custodial duties necessary to preserve properly and maintain the State Capitol and capitol grounds;

(c) To report to the commission quarterly, or as prescribed by the commission, the time-cost data on State Capitol construction projects;

(d) To be responsible for parking on the capitol grounds; and

(e) To submit to the commission a final report on each State Capitol project. The report shall include, but not be limited to, a comparison of final costs and appropriations made for the project, change orders, and modifications, and a conclusion as to whether the construction complied with the related approved project purpose and program statement. Such report shall be required on all projects costing fifty thousand dollars or more and any other projects designated by the commission.

(1) The Capitol Restoration Cash Fund is created. The administrator shall administer the fund, which shall consist of money received from the sale of material, rental revenue, private donations, public donations, transfers from the Capitol Preservation, Restoration, and Enhancement Endowment Fund, and transfers from the Nebraska Capital Construction Fund as directed by the Legislature.

(2)(a) The Capitol Restoration Cash Fund shall be used to finance projects for the restoration, preservation, and enhancement of the State Capitol and its courtyards and grounds, to purchase and conserve items to be added to the Nebraska Capitol Collections housed in the State Capitol, to produce promotional material concerning the State Capitol, its grounds, and the Nebraska State Capitol Environs District, and to pay the expenditures for a project manager for the Capitol Heating, Ventilation, and Air Conditioning Systems Replacement Project until such time as the project is completed, except that transfers may be made from the fund to the General Fund at the direction of the Legislature. Such expenditures shall be prescribed by the administrator and approved by the commission.

(b) Money transferred to the fund from the Capitol Preservation, Restoration, and Enhancement Endowment Fund shall only be used for the restoration, preservation, and enhancement of the courtyards located at the State Capitol.

(3) Any money in the Capitol Restoration Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

The Capitol Commission Revolving Fund is created. The administrator shall administer the fund. The fund shall consist of receipts collected pursuant to agreements between the commission and other entities as provided by law. The fund shall be used to support the operations of the commission. Any money in the Capitol Commission Revolving Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

To promote the public safety and welfare, the State Building Administrator, in consultation with the State Capitol Administrator, shall adopt and promulgate rules and regulations governing motor vehicle parking on the approaches to the State Capitol. Such rules and regulations may limit, restrict, or prohibit parking thereon. Notwithstanding the provisions of the Administrative Procedure Act, such rules and regulations shall become effective upon posting notice of the same on or about the premises to be regulated. If any vehicle is found upon any regulated premises in violation of this section, or the rules and regulations adopted pursuant thereto, and the driver cannot be determined, the owner or person in whose name such vehicle is registered shall be held responsible for such violation.

(1) The office space in the State Capitol or any other state office building occupied by the Governor, Lieutenant Governor, Secretary of State, State Treasurer, Attorney General, Auditor of Public Accounts, or Chief Justice and judges of the Supreme Court and Court of Appeals, including the office of the Clerk of the Supreme Court and courtrooms, shall remain under the control of such constitutional officer or Chief Justice. The Executive Board of the Legislative Council shall determine its office space requirements in the State Capitol and may occupy such office space as it requires except as provided in this subsection.

(2) After the determination by the Executive Board of the Legislative Council pursuant to subsection (1) of this section, the administrator, with the advice of the commission, shall determine the space needs of all other departments and agencies of the state located in the State Capitol and assign the remaining office space. The determination of such needs shall be based on the following considerations: (a) The availability of space within the State Capitol as provided in this section; (b) the desirability of locating all divisions and other organizational subunits of each department and agency of the state in physical proximity to the office of its head; (c) the degree to which the convenience of the public may be served by assignment of various areas within the State Capitol; (d) the interdependence of functions and operating procedures of the various agencies; (e) applicable standards governing office requirements; and (f) the availability of appropriations with which to finance renovations, remodeling, and movement of equipment necessary to accommodate any proposed assignment or reassignment of area.

(3) The office shall have responsibility for provision and replacement of lighting, lighting fixtures, heating, cooling and ventilation, and janitorial, custodial, and all other building services, including care and custody of the State Capitol and capitol grounds, as may now be provided by law.

(4) Responsibility for employment and supervision of custodial workers for areas of the State Capitol occupied by the Legislature, the courts, and executive departments and agencies shall be in accordance with such agreements as may be defined by authorized representatives of the three branches. All funds for improvements, remodeling, renovation, partitioning, or replacement of major fixtures, including carpeting, flooring, provision of drapes, lighting fixtures, and lamps, within any area of the State Capitol shall be at the disposal of the administrator.

The administrator, with the advice of the commission, shall establish policies and guidelines for the implementation of the approved Capitol Landscape Restoration Master Plan on and around the capitol grounds, for site development in and around the State Capitol and capitol grounds, and for use of the State Capitol's preservation and adaptive-use spaces, including the adoption of a document of standards.

(1)(a) The Clerk of the Legislature shall cause to be displayed within the Warner Legislative Chamber flags representing the four federally recognized tribes with headquarters in Nebraska: the Omaha Tribe of Nebraska, the Ponca Tribe of Nebraska, the Santee Sioux Nation, and the Winnebago Tribe of Nebraska.

(b) The Commission on Indian Affairs shall obtain such flags, as well as poles and bases, through donations from the tribes. The Commission on Indian Affairs shall be responsible for replacing such flags, poles, and bases.

(c) The Clerk of the Legislature shall approve placement locations within the Warner Legislative Chamber. The size, proportion, and placement of such flags shall be similar to that of the flag of the United States and the flag of the State of Nebraska.

(2)(a) The State Capitol Administrator shall cause to be displayed in the Memorial Chamber on the fourteenth floor of the State Capitol the flags of any Indian tribes with historic and regional connections to Nebraska.

(b) The Commission on Indian Affairs shall designate the tribes with historic and regional connections to Nebraska and the flags to be displayed under subdivision (2)(a) of this section. The Commission on Indian Affairs shall obtain such flags, as well as poles and bases, through donations from the tribes. The Commission on Indian Affairs shall be responsible for replacing such flags, poles, and bases.

(c) The Nebraska Capitol Commission shall approve placement locations in the Memorial Chamber.

(1) The Capitol Preservation, Restoration, and Enhancement Endowment Fund is created. The commission shall administer the fund. The fund shall consist of money transferred to the fund by the Legislature and bequests, donations, gifts, grants, or other money received from any federal or state agency or public or private source for the preservation, restoration, and enhancement of the State Capitol and capitol grounds. Any money accepted by the state for credit to the fund that is subject to conditions shall be held in trust and used subject to such conditions. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(2) The State Treasurer shall transfer money from the Capitol Preservation, Restoration, and Enhancement Endowment Fund to the Capitol Restoration Cash Fund in amounts and at times as directed by the commission. Money transferred from the Capitol Preservation, Restoration, and Enhancement Endowment Fund in any year shall not exceed four percent of the total balance in the fund as the balance existed on January 1 of the most recent odd-numbered year.

Sections 72-2301 to 72-2310 shall be known and may be cited as the Public Facilities Construction and Finance Act.

It is the purpose of the Public Facilities Construction and Finance Act to allow local governmental units which cooperate with other governmental units to issue bonds to finance joint projects which may be serviced by property taxes, regardless of the restrictions on the issuance of debt contained in other statutory provisions, home rule charters, or the limitations in section 77-3442, for the acquisition, construction, financing, operation, and ownership of (1) public buildings and related improvements to real estate, recreational facilities and related improvements, flood control and storm water drainage, and street and road construction and improvements and (2) information technology for libraries operated by counties, municipalities, school districts, educational service units, and community colleges.

For purposes of the Public Facilities Construction and Finance Act:

(1) Bond measure means a resolution or ordinance which authorizes bonds to be issued and sold in accordance with the act and which sets the terms of such bonds;

(2) Joint project means a project financed and operated by at least two or more qualified public agencies cooperating as a joint entity or joint public agency for (a) any public building or buildings and related improvements to real estate, including parking facilities, any recreational facilities and related improvements to real estate, any flood control and storm water drainage, and any street and road construction and improvements and related fixtures and (b) any item of hardware or software used in providing for the delivery of information, including the purchasing of upgrades or related improvements to information technology for the operation of libraries operated by counties, municipalities, school districts, educational service units, and community colleges; and

(3) Qualified public agency means any city, village, municipal county, community college, county, educational service unit, rural or suburban fire protection district, hospital district, school district, and sanitary and improvement district.

(1)(a) This section applies to bonds issued prior to April 18, 2018.

(b) In addition to any other borrowing powers provided for by law, a qualified public agency shall have the power to issue its negotiable bonds to any joint entity as defined in section 13-803 or to any joint public agency as defined in section 13-2503 in connection with any joint project which is to be owned, operated, or financed by the joint entity or joint public agency for the benefit of the qualified public agency. The bonds may be issued only if the second-largest participant in the joint project has a financial contribution in the joint project of at least twenty-five percent of the debt service. Such bonds may be issued after the qualified public agency has conducted a public hearing on the issuance of bonds. Notice of such public hearing shall be given by publication in a newspaper of general circulation within the territory of the qualified public agency by at least one publication occurring not less than ten days prior to the time of hearing. After the public hearing, the governing body of the qualified public agency may proceed to adopt a bond measure authorizing bonds.

(2) Notice of any such bond measure shall be given by publication of notice of intention to issue bonds in a newspaper of general circulation within the territory of the qualified public agency at least twice after the adoption of the bond measure. Such publications shall be at least three weeks apart. The notice shall state:

(a) The name of the qualified public agency;

(b) The purpose of the issue;

(c) The principal amount of the issue;

(d) The amount of annual debt service payment anticipated for the bonds, which may be stated as an approximation or estimate, and the anticipated duration for such debt service payments; and

(e) The time and place where a copy of the form of the bond measure may be examined for a period of at least thirty days.

(3) For bonds issued prior to April 18, 2018, no election shall be required prior to the issuance of bonds under the Public Facilities Construction and Finance Act unless, within sixty days after the first publication of the notice of intention to issue bonds, a remonstrance petition against the issuance of bonds is filed with the clerk or secretary of the qualified public agency. Such remonstrance petition shall be signed by registered voters of the qualified public agency equal in number to at least five percent of the number of registered voters of the qualified public agency at the time the remonstrance petition is filed or at least the number of signatures listed in subsection (5) of this section for the applicable qualified public agency, whichever is less. If a remonstrance petition with the necessary number of qualified signatures is timely filed, the question shall be submitted to the voters of the qualified public agency at a general election or a special election called for the purpose of approving the bonds proposed to be issued. Any joint project for which bonds are issued in accordance with the procedures of the act shall not require any other approval or proceeding by the governing body or the voters of the qualified public agency.

(4) For bonds issued prior to April 18, 2018, no election shall be required for any qualified public agency not issuing bonds to participate in such joint project unless, within sixty days after the governing body of the qualified public agency adopts the measure approving the interlocal or cooperative agreement related to the joint project, a remonstrance petition is filed with the clerk or secretary of the qualified public agency. Such remonstrance petition shall be signed by registered voters of the qualified public agency equal in number to at least five percent of the number of registered voters of the qualified public agency at the time the remonstrance petition is filed or at least the number of signatures listed in subsection (5) of this section for the applicable qualified public agency, whichever is less. If a remonstrance petition with the necessary number of qualified signatures is timely filed, the question shall be submitted to the voters of the qualified public agency at a general election or a special election called for the purpose of approving the interlocal or cooperative agreement related to the joint project.

(5) The chart in this subsection provides the alternative number of signatures of registered voters of a qualified public agency which may be used to submit a remonstrance petition under subsection (3) or (4) of this section. The classification of counties in section 23-1114.01 applies for purposes of this section.

Qualified Public Agency	Number of Signatures
	of Registered Voters

City of the Metropolitan Class	1500
City of the Primary Class	1000
City of the First Class	750
City of the Second Class	250
Villages	50
Municipal County	1500
Class 7 County	1500
Class 6 County	1000
Class 5 County	750
Class 4 County	500
Class 3 County	250
Class 2 County	100
Class 1 County	50
Class V School District	1500
Class IV School District	1000
Class III School District	500
Educational Service Unit	250
Community College Area	1500
Fire Protection District	500
Hospital District	500
Sanitary and Improvement District	500

For joint projects described in subdivision (2)(a) of section 72-2303, the principal amount of bonds which may be issued by a qualified public agency under the Public Facilities Construction and Finance Act shall not exceed five million dollars as to the total principal amount of such bonds which may be outstanding at any time, and the annual amounts due by reason of such bonds from each qualified public agency shall not exceed five percent of the restricted funds of the obligated qualified public agency in the year prior to issuance. The principal amount of bonds of qualified public agencies in the aggregate issued for any one such joint project shall not exceed five million dollars.

For joint projects described in subdivision (2)(b) of section 72-2303, the principal amount of bonds which may be issued by a qualified public agency under the Public Facilities Construction and Finance Act shall not exceed two hundred fifty thousand dollars for cities of the metropolitan and primary classes, one hundred thousand dollars for counties, cities of the first class, school districts, educational service units, and community colleges, and fifty thousand dollars for cities of the second class and villages, as to the total principal amount of such bonds which may be outstanding at any time, and the annual amounts due by reason of such bonds from each qualified public agency shall not exceed five percent of the restricted funds of the obligated qualified public agency in the year prior to issuance. The principal amount of bonds of a qualified public agency in the aggregate issued for any one such joint project shall not exceed two hundred and fifty thousand dollars for cities of the metropolitan and primary classes and one hundred thousand dollars for counties, cities of the first class, cities of the second class, villages, school districts, educational service units, and community colleges.

Any qualified public agency which has issued bonds in accordance with the Public Facilities Construction and Finance Act shall levy and collect taxes on all the taxable property within the territory of the qualified public agency, in addition to all other taxes, for the purpose of paying the principal and interest of such bonds as the principal and interest become due. Taxes levied for such purposes shall not be subject to the limitations in section 77-3442. The levying of taxes to pay such bonds for any county shall be subject to the constitutional limitation upon levying taxes by a county.

The Public Facilities Construction and Finance Act shall be independent of and in addition to any other provisions of the laws of the State of Nebraska or provisions of home rule charters, and bonds may be issued under the act for any purpose authorized in the act even though other provisions of the laws of the State of Nebraska or provisions of home rule charters may provide for the issuance of bonds for the same or similar purposes. The act shall not be considered amendatory of or limited by any other provisions of the laws of the State of Nebraska or provisions of home rule charters, and bonds may be issued under the act without complying with the restrictions or requirements of any other provisions of the laws of the State of Nebraska or without complying with the restrictions or requirements of home rule charters. Nothing in the act shall prohibit or limit the issuance of bonds in accordance with the provisions of other applicable laws of the State of Nebraska or of home rule charters if the governing body determines to issue such bonds under such other laws or charter, or otherwise limit the provisions of any home rule charter.

(1) In addition to any other borrowing powers provided for by law, a qualified public agency may issue its negotiable bonds subject to the terms and conditions set forth in the Public Facilities Construction and Finance Act to any joint entity as defined in section 13-803 or to any joint public agency as defined in section 13-2503 in connection with any joint project which is to be owned, operated, or financed by the joint entity or joint public agency for the benefit of the qualified public agency. The bonds may be issued only if the second-largest participant in the joint project has a financial contribution in the joint project of at least twenty-five percent of the debt service. No bonds shall be issued on or after April 18, 2018, until the question has been submitted to the qualified electors of each participating qualified public agency at an election called for that purpose as provided in this section and, within each participating qualified public agency, a majority of the qualified electors voting on the question within the participating qualified public agency voted in favor of issuing the same.

(2) Each participating qualified public agency shall give notice of the election at least fifty days prior to the election. The question of issuing bonds may be submitted at the statewide primary or general election. The election shall be conducted in accordance with the Election Act.

(3) The question of bond issues, when defeated, shall not be resubmitted in substance for a period of six months from and after the date of such election.

Before the issuance of bonds pursuant to the Public Facilities Construction and Finance Act, the qualified public agencies participating in the bond measure shall make a written statement of all proceedings relative to the vote upon the issuance of such bonds and the notice of the election, the manner and time of giving notice, the question submitted, and the result of the canvass of the vote on the proposition pursuant to which it is proposed to issue such bonds, together with a full statement of the taxable valuation and the total bonded indebtedness of the qualified public agencies participating in the bond measure. Such statement shall be certified to under oath.

The Ferguson House Fund is created. The fund shall be used by the Nebraska Environmental Trust Board only for the operation, administration, maintenance, restoration, and renovation of the Ferguson House and grounds. Revenue credited to the fund may consist of rental or other income related to the Ferguson House as well as gifts, grants, and bequests. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

The Nebraska Incentives Fund is created. Transfers may be made from the fund to the General Fund at the direction of the Legislature. Any money in the Nebraska Incentives Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.