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--- version:Introduced+++ version:(document, no version)@@ -1,838 +1,27 @@-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 SandersCommittee: 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-LB445-2025-LB445-2025--1--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-LB445-2025-LB445-2025--2--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-LB445-2025-LB445-2025--3--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-LB445-2025-LB445-2025--4--(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-LB445-2025-LB445-2025--5--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-LB445-2025-LB445-2025--6--(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-LB445-2025-LB445-2025--7--(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-LB445-2025-LB445-2025--8--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-LB445-2025-LB445-2025--9--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-LB445-2025-LB445-2025--10--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-LB445-2025-LB445-2025--11--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-LB445-2025-LB445-2025--12--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-LB445-2025-LB445-2025--13--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-LB445-2025-LB445-2025--14--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-LB445-2025-LB445-2025--15--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-LB445-2025-LB445-2025--16--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-LB445-2025-LB445-2025--17--(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-LB445-2025-LB445-2025--18--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-LB445-2025-LB445-2025--19--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-LB445-2025-LB445-2025--20--(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-LB445-2025-LB445-2025--21--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-LB445-2025-LB445-2025--22--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-LB445-2025-LB445-2025--23--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-LB445-2025-LB445-2025--24-+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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