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-LEGISLATURE OF NEBRASKA
-ONE HUNDRED NINTH LEGISLATURE
-FIRST SESSION
-LEGISLATIVE BILL 445
+One Hundred Ninth Legislature - First Session - 2025
+Introducer's Statement of Intent
+LB445
-Introduced by von Gillern, 4.
-Read first time January 21, 2025
+Chairperson: Senator Rita Sanders
Committee: Government, Military and Veterans Affairs
-A BILL FOR AN ACT relating to state buildings; to amend sections 72-803,1
-73-307, 81-1108.15, 81-1701, 82-316, 85-106, and 85-304, Reissue2
-Revised Statutes of Nebraska, and section 73-101, Revised Statutes3
-Cumulative Supplement, 2024; to adopt the State Building4
-Construction Alternatives Act; to change provisions relating to5
-planning, bidding, construction, and procurement for state6
-buildings; to eliminate provisions relating to procurement of art7
-for state buildings; to harmonize provisions; to repeal the original8
-sections; and to outright repeal sections 82-317, 82-318, 82-319,9
-82-320, 82-321, 82-322, 82-323, 82-324, 82-325, 82-326, 82-327,10
-82-328, 82-329, 85-106.01, 85-106.02, 85-106.03, 85-304.01,11
-85-304.02, and 85-304.03, Reissue Revised Statutes of Nebraska.12
-Be it enacted by the people of the State of Nebraska,13
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-Section 1. Sections 1 to 19 of this act shall be known and may be1
-cited as the State Building Construction Alternatives Act.2
-Sec. 2. For purposes of the State Building Construction3
-Alternatives Act: 4
-(1) Alternative technical concept means changes suggested by a5
-qualified, eligible, short-listed design-builder to the division's basic6
-configurations, project scope, design, or construction criteria;7
-(2) Best value-based selection process means a process of selecting8
-a design-builder using price, schedule, and qualifications for evaluation9
-factors; 10
-(3) Construction manager means the legal entity which proposes to11
-enter into a construction manager-general contractor contract pursuant to12
-the State Building Construction Alternatives Act; 13
-(4) Construction manager-general contractor contract means a14
-contract which is subject to a qualification-based selection process15
-between the division and a construction manager to furnish16
-preconstruction services during the design development phase of the17
-project and, if an agreement can be reached which is satisfactory to the18
-division, construction services for the construction phase of the19
-project; 20
-(5) Construction services means activities associated with building21
-the project; 22
-(6) Design-build contract means a contract between the division and23
-a design-builder which is subject to a best value-based selection process24
-to furnish (a) architectural, engineering, and related design services25
-and (b) labor, materials, supplies, equipment, and construction services;26
-(7) Design-builder means the legal entity which proposes to enter27
-into a design-build contract; 28
-(8) Division means the state building division;29
-(9) Preconstruction services means all nonconstruction-related30
-services that a construction manager performs in relation to the design31
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-of the project before execution of a contract for construction services.1
-Preconstruction services includes, but is not limited to, cost2
-estimating, value engineering studies, constructability reviews, delivery3
-schedule assessments, and life-cycle analysis; 4
-(10) Project performance criteria means the performance requirements5
-of the project suitable to allow the design-builder to make a proposal.6
-Performance requirements shall include, but are not limited to, the7
-following, if required by the project: Capacity, durability, standards,8
-ingress and egress requirements, description of the site, surveys, soil9
-and environmental information concerning the site, material quality10
-standards, design and milestone dates, site development requirements,11
-compliance with applicable law, and other criteria for the intended use12
-of the project; 13
-(11) Proposal means an offer in response to a request for proposals14
-(a) by a design-builder to enter into a design-build contract or (b) by a15
-construction manager to enter into a construction manager-general16
-contractor contract; 17
-(12) Qualification-based selection process means a process of18
-selecting a construction manager based on qualifications;19
-(13) Request for proposals means the documentation by which the20
-division solicits proposals; and 21
-(14) Request for qualifications means the documentation or22
-publication by which the division solicits qualifications.23
-Sec. 3. (1) Except as otherwise provided in subsection (2) of this24
-section, the purpose of the State Building Construction Alternatives Act25
-is to provide the division with alternative methods of contracting for26
-state buildings for which the division has responsibility pursuant to27
-subsection (1) of section 81-1108.15. The alternative methods of28
-contracting shall be available to the division for use on any project29
-regardless of the funding source. The State Building Construction30
-Alternatives Act shall govern the design-build and construction manager-31
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-general contractor procurement processes for the division.1
-(2) The State Building Construction Alternatives Act does not apply2
-to projects to which the Public Water and Natural Resources Project3
-Contracting Act, the State Park System Construction Alternatives Act, or4
-the Transportation Innovation Act apply. The State Building Construction5
-Alternatives Act does not apply to the University of Nebraska or the6
-state colleges. 7
-Sec. 4. The division, in accordance with the State Building8
-Construction Alternatives Act, may solicit and execute a design-build9
-contract or a construction manager-general contractor contract for state10
-buildings for which the division has responsibility pursuant to11
-subsection (1) of section 81-1108.15 except as otherwise provided in12
-section 3 of this act. 13
-Sec. 5.  The division may hire an architect licensed pursuant to the14
-Engineers and Architects Regulation Act or an engineer licensed pursuant15
-to the act to assist the division with the development of project16
-performance criteria and requests for proposals, with evaluation of17
-proposals, with evaluation of the construction to determine adherence to18
-the project performance criteria, and with any additional services19
-requested by the division to represent its interests in relation to a20
-project. The procedures used to hire such person or organization shall21
-comply with the Nebraska Consultants' Competitive Negotiation Act. The22
-person or organization hired shall be ineligible to be included as a23
-provider of other services in a proposal for the project for which he or24
-she has been hired and shall not be employed by or have a financial or25
-other interest in a design-builder or construction manager who will26
-submit a proposal. 27
-Sec. 6. The division shall adopt guidelines for entering into a28
-design-build contract or construction manager-general contractor29
-contract. The guidelines shall include the following:30
-(1) Preparation and content of requests for qualifications;31
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-(2) Preparation and content of requests for proposals;1
-(3) Qualification and short-listing of design-builders and2
-construction managers. The guidelines shall provide that the division3
-will evaluate prospective design-builders and construction managers based4
-on the information submitted to the division in response to a request for5
-qualifications and will select a short list of design-builders or6
-construction managers who shall be considered qualified and eligible to7
-respond to the request for proposals; 8
-(4) Preparation and submittal of proposals; 9
-(5) Procedures and standards for evaluating proposals;10
-(6) Procedures for negotiations between the division and the design-11
-builders or construction managers submitting proposals prior to the12
-acceptance of a proposal if any such negotiations are contemplated; and13
-(7) Procedures for the evaluation of construction under a design-14
-build contract to determine adherence to the project performance15
-criteria. 16
-Sec. 7. The process for selecting a design-builder and entering17
-into a design-build contract shall be in accordance with sections 8 to 1118
-of this act. 19
-Sec. 8.  (1) The division shall prepare a request for qualifications20
-for design-build proposals and shall prequalify design-builders. The21
-request for qualifications shall describe the project in sufficient22
-detail to permit a design-builder to respond. The request for23
-qualifications shall identify the maximum number of design-builders the24
-division will place on a short list as qualified and eligible to receive25
-a request for proposals. 26
-(2) A person or organization hired by the division under section 527
-of this act shall be ineligible to compete for a design-build contract on28
-the same project for which the person or organization was hired.29
-(3)(a) The request for qualifications shall be published:30
-(i) In a newspaper of statewide circulation once a week for three31
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-consecutive weeks prior to the deadline for receiving requests for1
-qualifications; or 2
-(ii) For twenty-one consecutive calendar days prior to the deadline3
-for receiving requests for qualifications on a website designated by the4
-division that is accessible to the public. 5
-(b) The division may publish notice both in such a newspaper and on6
-such a website as described in this subsection. 7
-(4) The division shall create a short list of qualified and eligible8
-design-builders in accordance with the guidelines adopted pursuant to9
-section 6 of this act. The division shall select at least two prospective10
-design-builders, except that if only one design-builder has responded to11
-the request for qualifications, the division may, in its discretion,12
-proceed or cancel the procurement. The request for proposals shall be13
-sent only to the design-builders placed on the short list.14
-Sec. 9.  The division shall prepare a request for proposals for each15
-design-build contract. The request for proposals shall contain, at a16
-minimum, the following elements: 17
-(1) The guidelines adopted by the division in accordance with18
-section 6 of this act. The identification of a publicly accessible19
-location of the guidelines, either physical or electronic, shall be20
-considered compliance with this subdivision; 21
-(2) The proposed terms and conditions of the design-build contract,22
-including any terms and conditions which are subject to further23
-negotiation; 24
-(3) A project statement which contains information about the scope25
-and nature of the project; 26
-(4) A statement regarding alternative technical concepts including27
-the process and time period in which such concepts may be submitted,28
-confidentiality of the concepts, and ownership of the rights to the29
-intellectual property contained in such concepts; 30
-(5) Project performance criteria; 31
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-(6) Budget parameters for the project; 1
-(7) Any bonding and insurance required by law or as may be2
-additionally required by the division; 3
-(8) The criteria for evaluation of proposals and the relative weight4
-of each criterion. The criteria shall include, but are not limited to,5
-the cost of the work, construction experience, design experience, and the6
-financial, personnel, and equipment resources available for the project.7
-The relative weight to apply to any criterion shall be at the discretion8
-of the division based on each project, except that in all cases, the cost9
-of the work shall be given a relative weight of at least fifty percent;10
-(9) A requirement that the design-builder provide a written11
-statement of the design-builder's proposed approach to the design and12
-construction of the project, which may include graphic materials13
-illustrating the proposed approach to design and construction and shall14
-include price proposals; 15
-(10) A requirement that the design-builder agree to the following16
-conditions: 17
-(a) At the time of the design-build proposal, the design-builder18
-must furnish to the division a written statement identifying the19
-architect or engineer who will perform the architectural or engineering20
-work for the project. The architect or engineer engaged by the design-21
-builder to perform the architectural or engineering work with respect to22
-the project must have direct supervision of such work and may not be23
-removed by the design-builder prior to the completion of the project24
-without the written consent of the division; 25
-(b) At the time of the design-build proposal, the design-builder26
-must furnish to the division a written statement identifying the general27
-contractor who will provide the labor, material, supplies, equipment, and28
-construction services. The general contractor identified by the design-29
-builder may not be removed by the design-builder prior to completion of30
-the project without the written consent of the division;31
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-(c) A design-builder offering design-build services with its own1
-employees who are design professionals licensed to practice in Nebraska2
-must (i) comply with the Engineers and Architects Regulation Act by3
-procuring a certificate of authorization to practice architecture or4
-engineering and (ii) submit proof of sufficient professional liability5
-insurance in the amount required by the division; and6
-(d) The rendering of architectural or engineering services by a7
-licensed architect or engineer employed by the design-builder must8
-conform to the Engineers and Architects Regulation Act; and9
-(11) Other information or requirements which the division, in its10
-discretion, chooses to include in the request for proposals.11
-Sec. 10. The division shall pay a stipend to qualified design-12
-builders that submit responsive proposals but are not selected. Payment13
-of the stipend shall give the division ownership of the intellectual14
-property contained in the proposals and alternative technical concepts.15
-The amount of the stipend shall be at the discretion of the division. The16
-refusal to pay or accept the stipend shall leave the intellectual17
-property contained in the proposals and alternative technical concepts in18
-the possession of the creator of the proposals and alternative technical19
-concepts. 20
-Sec. 11. (1) Design-builders shall submit proposals as required by21
-the request for proposals. The division may meet with individual design-22
-builders prior to the time of submitting the proposal and may have23
-discussions concerning alternative technical concepts. If an alternative24
-technical concept provides a solution that is equal to or better than the25
-requirements in the request for proposals and the alternative technical26
-concept is acceptable to the division, it may be incorporated as part of27
-the proposal by the design-builder. Notwithstanding any other provision28
-of state law to the contrary, alternative technical concepts shall be29
-confidential and not disclosed to other design-builders or members of the30
-public from the time the proposals are submitted until such proposals are31
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-opened by the division. 1
-(2) Proposals shall be sealed and shall not be opened until2
-expiration of the time established for making the proposals as set forth3
-in the request for proposals. 4
-(3) Proposals may be withdrawn at any time prior to the opening of5
-such proposals in which case no stipend shall be paid. The division shall6
-have the right to reject any and all proposals at no cost to the division7
-other than any stipend for design-builders who have submitted responsive8
-proposals. The division may thereafter solicit new proposals using the9
-same or different project performance criteria or may cancel the design-10
-build solicitation. 11
-(4) The division shall rank the design-builders in order of best12
-value pursuant to the criteria in the request for proposals. The division13
-may meet with design-builders prior to ranking. 14
-(5) The division may attempt to negotiate a design-build contract15
-with the highest ranked design-builder selected by the division and may16
-enter into a design-build contract after negotiations. If the division is17
-unable to negotiate a satisfactory design-build contract with the highest18
-ranked design-builder, the division may terminate negotiations with that19
-design-builder. The division may then undertake negotiations with the20
-second highest ranked design-builder and may enter into a design-build21
-contract after negotiations. If the division is unable to negotiate a22
-satisfactory contract with the second highest ranked design-builder, the23
-division may undertake negotiations with the third highest ranked design-24
-builder, if any, and may enter into a design-build contract after25
-negotiations. 26
-(6) If the division is unable to negotiate a satisfactory contract27
-with any of the ranked design-builders, the division may either revise28
-the request for proposals and solicit new proposals or cancel the design-29
-build process under the State Building Construction Alternatives Act.30
-Sec. 12. The process for selecting a construction manager and31
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-entering into a construction manager-general contractor contract shall be1
-in accordance with sections 13 to 16 of this act. 2
-Sec. 13. (1) The division shall prepare a request for3
-qualifications for construction manager-general contractor contract4
-proposals and shall prequalify construction managers. The request for5
-qualifications shall describe the project in sufficient detail to permit6
-a construction manager to respond. The request for qualifications shall7
-identify the maximum number of eligible construction managers the8
-division will place on a short list as qualified and eligible to receive9
-a request for proposals. 10
-(2)(a) The request for qualifications shall be published:11
-(i) In a newspaper of statewide circulation once a week for three12
-consecutive weeks prior to the deadline for receiving requests for13
-qualifications; or 14
-(ii) For twenty-one consecutive calendar days prior to the deadline15
-for receiving requests for qualifications on a website designated by the16
-division that is accessible to the public. 17
-(b) The division may publish notice both in such a newspaper and on18
-such a website as described in this subsection. 19
-(3) The division shall create a short list of qualified and eligible20
-construction managers in accordance with the guidelines adopted pursuant21
-to section 6 of this act. The division shall select at least two22
-construction managers, except that if only one construction manager has23
-responded to the request for qualifications, the division may, in its24
-discretion, proceed or cancel the procurement. The request for proposals25
-shall be sent only to the construction managers placed on the short list.26
-Sec. 14. The division shall prepare a request for proposals for27
-each construction manager-general contractor contract. The request for28
-proposals shall contain, at a minimum, the following elements:29
-(1) The guidelines adopted by the division in accordance with30
-section 6 of this act. The identification of a publicly accessible31
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-location of the guidelines, either physical or electronic, shall be1
-considered compliance with this subdivision; 2
-(2) The proposed terms and conditions of the contract, including any3
-terms and conditions which are subject to further negotiation;4
-(3) Any bonding and insurance required by law or as may be5
-additionally required by the division; 6
-(4) General information about the project which will assist the7
-division in its selection of the construction manager, including a8
-project statement which contains information about the scope and nature9
-of the project, the project site, the schedule, and the estimated budget;10
-(5) The criteria for evaluation of proposals and the relative weight11
-of each criterion; 12
-(6) A statement that the construction manager shall not be allowed13
-to sublet, assign, or otherwise dispose of any portion of the contract14
-without consent of the division. In no case shall the division allow the15
-construction manager to sublet more than seventy percent of the work,16
-excluding specialty items; and 17
-(7) Other information or requirements which the division, in its18
-discretion, chooses to include in the request for proposals.19
-Sec. 15. (1) Construction managers shall submit proposals as20
-required by the request for proposals. 21
-(2) Proposals shall be sealed and shall not be opened until22
-expiration of the time established for making the proposals as set forth23
-in the request for proposals. 24
-(3) Proposals may be withdrawn at any time prior to signing a25
-contract for preconstruction services. The division shall have the right26
-to reject any and all proposals at no cost to the division. The division27
-may thereafter solicit new proposals or may cancel the construction28
-manager-general contractor procurement process. 29
-(4) The division shall rank the construction managers in accordance30
-with the qualification-based selection process and pursuant to the31
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-criteria in the request for proposals. The division may meet with1
-construction managers prior to the ranking. 2
-(5) The division may attempt to negotiate a contract for3
-preconstruction services with the highest ranked construction manager and4
-may enter into a contract for preconstruction services after5
-negotiations. If the division is unable to negotiate a satisfactory6
-contract for preconstruction services with the highest ranked7
-construction manager, the division may terminate negotiations with that8
-construction manager. The division may then undertake negotiations with9
-the second highest ranked construction manager and may enter into a10
-contract for preconstruction services after negotiations. If the division11
-is unable to negotiate a satisfactory contract with the second highest12
-ranked construction manager, the division may undertake negotiations with13
-the third highest ranked construction manager, if any, and may enter into14
-a contract for preconstruction services after negotiations.15
-(6) If the division is unable to negotiate a satisfactory contract16
-for preconstruction services with any of the ranked construction17
-managers, the division may either revise the request for proposals and18
-solicit new proposals or cancel the construction manager-general19
-contractor contract process under the State Building Construction20
-Alternatives Act. 21
-Sec. 16. (1) Before the construction manager begins any22
-construction services, the division shall: 23
-(a) Conduct an independent cost estimate for the project; and24
-(b) Conduct contract negotiations with the construction manager to25
-develop a construction manager-general contractor contract for26
-construction services. 27
-(2) If the construction manager and the division are unable to28
-negotiate a contract, the division may use other contract procurement29
-processes as provided by law. Persons or organizations who submitted30
-proposals but were unable to negotiate a contract with the division shall31
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-be eligible to compete in the other contract procurement processes.1
-Sec. 17.  A design-build contract and a construction manager-general2
-contractor contract may be conditioned upon later refinements in scope3
-and price and may permit the division in agreement with the design-4
-builder or construction manager to make changes in the project without5
-invalidating the contract. 6
-Sec. 18. Nothing in the State Building Construction Alternatives7
-Act shall limit or reduce statutory or regulatory requirements regarding8
-insurance. 9
-Sec. 19. The division may adopt and promulgate rules and10
-regulations to carry out the State Building Construction Alternatives11
-Act. 12
-Sec. 20. Section 72-803, Reissue Revised Statutes of Nebraska, is13
-amended to read: 14
-72-803 (1) The state and any department or agency thereof, subject15
-to the powers of the state building division of the Department of16
-Administrative Services, shall have general charge of the erection of new17
-buildings which are being erected for such department or agency, the18
-repair and improvement of buildings under the control of such department19
-or agency, including fire escapes, and the improvement of grounds under20
-the control of such department or agency. 21
-(2) Buildings and other improvements costing more than seventy-five22
-fifty thousand dollars shall be (a) constructed under the general charge23
-of the department or agency as provided in subsection (1) of this section24
-and (b) let by contract to the lowest responsible bidder after proper25
-advertisement as set forth in subsection (4) of this section. The26
-Department of Administrative Services shall adjust the dollar amounts in27
-this subsection every four years beginning January 1, 2026, to account28
-for inflationary and market changes. The department shall select a29
-construction cost index or any other published index relevant to30
-operations and utilities costs and shall base the adjustments on the31
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-percentage changes in such index. 1
-(3) The successful bidder at the letting shall enter into a contract2
-with the department or agency, prepared as provided for by subsection (4)3
-of this section, and shall furnish a bond for the faithful performance of4
-his or her contract, except that a performance bond shall not be required5
-for any project which has a total cost of one hundred thousand dollars or6
-less unless the department or agency includes a bond requirement in the7
-specifications for the project. 8
-(4) When contracts are to be let by the department or agency as9
-provided in subsection (2) of this section, advertisements shall be10
-published in accordance with rules and regulations adopted and11
-promulgated by the state building division stating that sealed proposals12
-will be received by the department or agency at its office on the date13
-therein stated for the furnishing of materials, the construction of14
-buildings, or the making of repairs or improvements and that plans and15
-specifications can be seen at the office of the department or agency. All16
-bids or proposals shall be accompanied by a certified check or by a bid17
-bond in a sum fixed by the department or agency and payable thereto. All18
-such contracts shall be awarded to the lowest responsible bidder, but the19
-right shall be reserved to reject any and all bids. Whenever any material20
-described in any contract can be obtained from any state institution, the21
-department or agency shall exclude it from such a contract.22
-Sec. 21. Section 73-101, Revised Statutes Cumulative Supplement,23
-2024, is amended to read: 24
-73-101 Whenever the State of Nebraska, or any department or any25
-agency thereof, any county board, county clerk, county highway26
-superintendent, the mayor and city council or commissioner of any27
-municipality, any entity created pursuant to the Interlocal Cooperation28
-Act or the Joint Public Agency Act, or the officers of any school29
-district, township, or other governmental subdivision, shall advertise30
-for bids in pursuance of any statutes of the State of Nebraska, on any31
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-road contract work or any public improvements work, or for supplies,1
-construction, repairs, and improvements, and in all other cases where2
-bids for supplies or work, of any character whatsoever, are received for3
-the various departments and agencies of the state, and other subdivisions4
-and agencies enumerated in this section, they shall fix not only the day5
-upon which such bids shall be returned, received, or opened, as provided6
-by other statutes, but shall also fix the hour at which such bids shall7
-close, or be received or opened, and they shall also provide that such8
-bids shall be immediately and simultaneously opened in the presence of9
-the bidders, or representatives of the bidders, when the hour is reached10
-for the bids to close. Such bids may be withheld from disclosure until an11
-intent to award is issued. If bids are being opened on more than one12
-contract, the officials having in charge the opening of such bids may, if13
-they deem it advisable, award each contract as the bids are opened.14
-Sections 73-101 to 73-106 shall not apply to the State Building15
-Construction Alternatives Act, the State Park System Construction16
-Alternatives Act , or sections 39-2808 to 39-2823. 17
-Sec. 22. Section 73-307, Reissue Revised Statutes of Nebraska, is18
-amended to read: 19
-73-307 Sections 73-301 to 73-306 shall not apply to the Nebraska20
-Consultants' Competitive Negotiation Act, the State Building Construction21
-Alternatives Act, the State Park System Construction Alternatives Act,22
-sections 39-2808 to 39-2823, or section 57-1503. 23
-Sections 73-301 to 73-306 shall not be construed to apply to24
-renewals of contracts already approved pursuant to or not subject to such25
-sections, to amendments to such contracts, or to renewals of such26
-amendments unless the amendments would directly cause or result in the27
-replacement by the private entity of additional permanent state employees28
-or positions greater than the replacement caused by the original29
-contract. 30
-Sec. 23. Section 81-1108.15, Reissue Revised Statutes of Nebraska,31
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-is amended to read: 1
-81-1108.15 (1) Except as provided in the Nebraska State Capitol2
-Preservation and Restoration Act, the division shall have the primary3
-functions and responsibilities of statewide facilities planning,4
-facilities construction, and facilities administration and shall adopt5
-and promulgate rules and regulations to carry out this section.6
-(2) Facilities planning shall include the following responsibilities7
-and duties: 8
-(a) To maintain utilization records of all state-owned, state-9
-occupied, and vacant facilities; 10
-(b) To coordinate comprehensive capital facilities planning;11
-(c) To define and review program statements based on space12
-utilization standards; 13
-(d) To prepare or review planning and construction documents;14
-(e) To develop and maintain time-cost schedules for capital15
-construction projects; 16
-(f) To assist the Governor and the Legislative Fiscal Analyst in the17
-preparation of the capital construction budget recommendations;18
-(g) To maintain a complete inventory of all state-owned, state-19
-occupied, and vacant sites and structures and to review the proposals for20
-naming such sites and structures; 21
-(h) To determine space needs of all state agencies and establish22
-space-allocation standards; and 23
-(i) To cause a state comprehensive capital facilities plan to be24
-developed; and . 25
-(j) To carry out the State Building Construction Alternatives Act.26
-(3) Facilities construction shall include the following powers and27
-duties: 28
-(a) To maintain close contact with and conduct inspections of each29
-project so as to assure execution of time-cost schedules and efficient30
-contract performance if such project's total design and construction cost31
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-is equal to or greater than the project cost set by subdivision (1)(a) of1
-section 81-1108.43 as adjusted by subsection (2) of section 81-1108.43;2
-(b) To perform final acceptance inspections and evaluations; and3
-(c) To coordinate all change or modification orders and progress4
-payment orders. 5
-(4) Facilities administration shall include the following powers and6
-duties: 7
-(a) To serve as state leasing administrator or agent for all8
-facilities to be leased for use by the state and for all state-owned9
-facilities to be rented to state agencies or other parties subject to10
-section 81-1108.22. The division shall remit the proceeds from any11
-rentals of state-owned facilities to the State Treasurer for credit to12
-the State Building Revolving Fund and the State Building Renewal13
-Assessment Fund; 14
-(b) To provide all maintenance, repairs, custodial duties, security,15
-and administration for all buildings and grounds owned or leased by the16
-State of Nebraska except as provided in subsections (5) and (6) of this17
-section; 18
-(c) To be responsible for adequate parking and the designation of19
-parking stalls or spaces, including access aisles, in offstreet parking20
-facilities for the exclusive use of handicapped or disabled or21
-temporarily handicapped or disabled persons pursuant to section 18-1737;22
-(d) To ensure that all state-owned, state-occupied, and vacant23
-facilities are maintained or utilized to their maximum capacity or to24
-dispose of such facilities through lease, sale, or demolition;25
-(e) To submit electronically a report an annual report to the26
-Appropriations Committee of the Legislature and the Committee on Building27
-Maintenance regarding the amount of property leased by the state and the28
-availability of state-owned property for the needs of state agencies ,29
-upon request by the Appropriations Committee of the Legislature, the30
-Committee on Building Maintenance, or a member of the Legislature;31
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-(f) To report monthly time-cost data on projects to the Governor and1
-the Clerk of the Legislature. The report submitted to the Clerk of the2
-Legislature shall be submitted electronically; 3
-(f) (g) To administer the State Emergency Capital Construction4
-Contingency Fund; 5
-(g) (h) To submit status reports to the Governor and the Legislative6
-Fiscal Analyst after each quarter of a construction project is completed7
-detailing change orders and expenditures to date. The report submitted to8
-the Legislative Fiscal Analyst shall be submitted electronically. Such9
-reports shall be required on all projects costing an amount equal to or10
-greater than the amount set forth in subdivision (1)(a) of section11
-81-1108.43 as adjusted by subsection (2) of section 81-1108.43 and on12
-such other projects as may be designated by the division; and13
-(h) (i) To submit a final report on each project to the Governor and14
-the Legislative Fiscal Analyst. The report submitted to the Legislative15
-Fiscal Analyst shall be submitted electronically. Such report shall16
-include, but not be limited to, a comparison of final costs and17
-appropriations made for the project, change orders, and modifications and18
-whether the construction complied with the related approved program19
-statement. Such reports shall be required on all projects costing an20
-amount equal to or greater than the amount set forth in subdivision (1)21
-(a) of section 81-1108.43 as adjusted by subsection (2) of section22
-81-1108.43 and on such other projects as may be designated by the23
-division. 24
-(5) Subdivisions (4)(b), (c), and (d) of this section shall not25
-apply to (a) state-owned facilities to be rented to state agencies or26
-other parties by the University of Nebraska, the Nebraska state colleges,27
-the Department of Transportation, and the Board of Educational Lands and28
-Funds, (b) buildings and grounds owned or leased for use by the29
-University of Nebraska, the Nebraska state colleges, and the Board of30
-Educational Lands and Funds, (c) buildings and grounds owned, leased, or31
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-operated by the Department of Correctional Services, (d) facilities to be1
-leased for nonoffice use by the Department of Transportation, (e)2
-buildings or grounds owned or leased by the Game and Parks Commission if3
-the application of such subdivisions to the buildings or grounds would4
-result in ineligibility for or repayment of federal funding, (f)5
-buildings or grounds of the state park system, state recreation areas,6
-state historical parks, state wildlife management areas, or state7
-recreational trails, or (g) other buildings or grounds owned or leased by8
-the State of Nebraska which are specifically exempted by the division9
-because the application of such subdivisions would result in the10
-ineligibility for federal funding or would result in hardship on an11
-agency, board, or commission due to other exceptional or unusual12
-circumstances, except that nothing in this subdivision shall prohibit the13
-assessment of building rental depreciation charges to tenants of14
-facilities owned by the state and under the direct control and15
-maintenance of the division. 16
-(6) Security for all buildings and grounds owned or leased by the17
-State of Nebraska in Lincoln, Nebraska, except the buildings and grounds18
-described in subsection (5) of this section, shall be the responsibility19
-of the Nebraska State Patrol. The Nebraska State Patrol shall consult20
-with the Governor, the Chief Justice, the Executive Board of the21
-Legislative Council, and the State Capitol Administrator regarding22
-security policy within the State Capitol and capitol grounds.23
-(7) Each member of the Legislature shall receive an electronic copy24
-of the reports required by subdivisions (4)(g) and (h) (4)(f), (h), and25
-(i) of this section by making a request for them to the State Building26
-Administrator. The information on such reports shall be submitted to the27
-division by the agency responsible for the project.28
-Sec. 24. Section 81-1701, Reissue Revised Statutes of Nebraska, is29
-amended to read: 30
-81-1701 The purpose of the Nebraska Consultants' Competitive31
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-Negotiation Act is to provide managerial control over competitive1
-negotiations by the state for acquisition of professional architectural,2
-engineering, landscape architecture, or land surveying services. The act3
-does not apply to (1) contracts under section 57-1503, (2) contracts4
-under subsection (6) of section 39-1349, (3) contracts under sections5
-39-2808 to 39-2823 except as provided in section 39-2810, or (4)6
-contracts under the State Park System Construction Alternatives Act7
-except as provided in section 37-1719 , or (5) contracts under the State8
-Building Construction Alternatives Act except as provided in section 5 of9
-this act. 10
-Sec. 25. Section 82-316, Reissue Revised Statutes of Nebraska, is11
-amended to read: 12
-82-316 There is hereby created the Nebraska Arts Council Cash Fund.13
-The fund shall contain all sums of money received from fees from any14
-conference, performance, or exhibition held by the council or by groups15
-who have contracted with the council for such events and all sums of16
-money collected under section 82-326. The Nebraska Arts Council shall use17
-the fund to pay the costs related to the administration and sponsoring of18
-any conference, performance, or exhibition by the Nebraska Arts Council19
-or by groups who have contracted with the council for such events or to20
-pay the costs related to the repair, restoration, and maintenance of21
-artwork installed under sections 82-317 to 82-329, 85-106 to 85-106.03,22
-and 85-304 to 85-304.03. All disbursements shall be made upon warrants23
-drawn by the Director of Administrative Services. Any money in the fund24
-available for investment shall be invested by the state investment25
-officer pursuant to the Nebraska Capital Expansion Act and the Nebraska26
-State Funds Investment Act. 27
-Sec. 26. Section 85-106, Reissue Revised Statutes of Nebraska, is28
-amended to read: 29
-85-106 The Board of Regents shall have the power:30
-(1) To enact laws for the government of the university;31
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-(2) To elect a president, vice presidents, chancellors, vice1
-chancellors, deans, associate deans, assistant deans, directors,2
-associate directors, assistant directors, professors, associate3
-professors, assistant professors, instructors, other members of the4
-faculty staff, and employees generally of the university and to provide5
-for academic tenure for professors, associate professors, and assistant6
-professors; 7
-(3) To prescribe the duties of such persons not inconsistent with8
-section 85-1,105; 9
-(4) To fix their compensation; 10
-(5) To provide, in its discretion, retirement benefits for present11
-and future employees of the university, subject to the following:12
-(a) The cost of such retirement benefits shall be funded in13
-accordance with sound actuarial principles with the necessary14
-contributions for both past service and future service being treated in15
-the university budget in the same way as any other operating expense;16
-(b) The university contribution under any such retirement plan shall17
-be (i) the rate established by the Board of Regents and not more than18
-eight percent of each university employee's full-time salary or wage19
-earnings for any calendar year before any agreement for reduction of20
-salary or wage earnings and (ii) pursuant to an agreement for reduction21
-of salary or wage earnings, the amount of the reduction of salary or wage22
-earnings; 23
-(c) Each employee's contribution shall be the rate established by24
-the Board of Regents and shall not be required to exceed the university's25
-contribution under subdivision (5)(b)(i) of this section, except that in26
-lieu of making such contribution, each such employee may enter into an27
-agreement for reduction of salary or wages for the purchase by the Board28
-of Regents of annuity contracts for such employee, under the provisions29
-of the Internal Revenue Code, but the amount of the reduction of salary30
-or wages allowable under this subdivision may not include credit for31
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-service prior to March 29, 1972; 1
-(d) The retirement benefits of any employee for service prior to2
-September 1, 1961, shall be those provided under the retirement plan then3
-in force, which benefits shall not be abridged, except that such4
-retirement benefits shall become fully vested in the event of an5
-employee's termination of employment if such employee has at least ten6
-years of service at the date of termination; 7
-(e) Continued contributions to the system until the date of8
-retirement as provided in section 85-606; and 9
-(f) The investment of retirement funds shall be pursuant to the10
-Nebraska Capital Expansion Act and the Nebraska State Funds Investment11
-Act, but no change in the type of investment of such funds shall be made12
-without the prior approval of the Board of Regents;13
-(6) To equalize and provide for uniform benefits for all present and14
-future employees, including group life insurance, group hospital-medical15
-insurance, group long-term disability income insurance, and retirement16
-benefits; 17
-(7) To provide, through the University Extension Division, for the18
-holding of classes at various localities throughout the state avoiding19
-unnecessary duplication of courses offered by other educational20
-institutions in such localities and consistent with the orders of the21
-Coordinating Commission for Postsecondary Education issued pursuant to22
-sections 85-1413 and 85-1414; 23
-(8) To remove the president, vice presidents, chancellors, vice24
-chancellors, deans, associate deans, assistant deans, directors,25
-associate directors, assistant directors, professors, associate26
-professors, assistant professors, instructors, other members of the27
-faculty staff, and employees generally, when the interests of the28
-university require it; and 29
-(9) To pay expenses for recruitment of academic, administrative,30
-professional, and managerial personnel. 31
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-The Board of Regents shall institute a continuing program of1
-preventive maintenance and a program of deferred maintenance consistent2
-with the provisions of the Deferred Building Renewal Act and shall3
-consult with the Nebraska Arts Council and acquire works of art for the4
-original construction of any public building under its supervision5
-consistent with sections 82-317 to 82-329 and 85-106.01 to 85-106.03.6
-Sec. 27. Section 85-304, Reissue Revised Statutes of Nebraska, is7
-amended to read: 8
-85-304 (1) The Board of Trustees of the Nebraska State Colleges9
-shall have the power: 10
-(a) To appoint a president and such other persons as may be required11
-for each state college; 12
-(b) To fix their compensation and prescribe their duties;13
-(c) To remove all persons appointed, but the affirmative votes of14
-four members of the board shall be necessary to remove a president or an15
-assistant during the time for which such persons were appointed;16
-(d) Through an extension division, to provide for holding of classes17
-at various localities throughout the state, avoiding unnecessary18
-duplication of courses offered by other educational institutions in such19
-localities; 20
-(e) To acquire real and personal property and dispose of the same21
-whenever any of the state colleges will be benefited thereby, but no22
-grounds upon which any buildings of any of the state colleges are located23
-shall be disposed of without the consent of the Legislature;24
-(f) To pay expenses for recruitment of academic, administrative,25
-professional, and managerial personnel; and 26
-(g) To provide benefits for all present and future employees,27
-including group life insurance, group hospital-medical insurance, and28
-group long-term disability income insurance. 29
-(2) The board shall have the duty: 30
-(2) The board shall (a) To institute a continuing program of31
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-preventive maintenance and a program of deferred maintenance consistent1
-with the provisions of the Deferred Building Renewal Act . ; and2
-(b) To consult with the Nebraska Arts Council and acquire works of3
-art for the original construction of any public building under its4
-supervision consistent with sections 82-317 to 82-329 and 85-304 to5
-85-304.03. 6
-Sec. 28. Original sections 72-803, 73-307, 81-1108.15, 81-1701,7
-82-316, 85-106, and 85-304, Reissue Revised Statutes of Nebraska, and8
-section 73-101, Revised Statutes Cumulative Supplement, 2024, are9
-repealed. 10
-Sec. 29. The following sections are outright repealed: Sections11
-82-317, 82-318, 82-319, 82-320, 82-321, 82-322, 82-323, 82-324, 82-325,12
-82-326, 82-327, 82-328, 82-329, 85-106.01, 85-106.02, 85-106.03,13
-85-304.01, 85-304.02, and 85-304.03, Reissue Revised Statutes of14
-Nebraska. 15
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+Date of Hearing: February 05, 2025
+
+The following constitutes the reasons for this bill and the purposes which are sought to be
+accomplished thereby:
+LB 445 establishes the State Building Construction Alternatives Act to allow State Building
+Division to solicit and execute Design-Build contracts or Construction Manager-General
+Contractor contracts for construction services as an option available for facilities construction
+in addition to the current method of design-bid-build. The bill articulates the specific
+procedures by which the Division may solicit and execute such contracts. LB 445 also
+increases from $50,000 to $75,000 the threshold at which projects require agencies to hire a
+professional design consultant and provides for an inflationary adjustment every four years.
+In addition, LB 445 changes State Building Division’s current annual reporting requirement
+to the Appropriations Committee of the amount of property leased by the state and the
+availability of state-owned property to instead submit such report upon the request of
+the Appropriations Committee, Committee on Building Maintenance, or a member of the
+Legislature. This bill also eliminates the current requirement for State Building Division to
+report monthly time-cost data on projects to the Governor and the Clerk of the Legislature.
+
+Principal Introducer:   ________________________________
+Senator R. Brad von Gillern
+- 1 -

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