Committee hears bill to harmonize Natural Resources' alternative contracting authority

Sen. Stan Clouse, representing District 37, introduced LB180 to the Government, Military and Veterans Affairs Committee, saying the bill would harmonize statutory language to align the Department of Natural Resources with other state agencies that may use alternative contracting methods for large water and resource projects.

"The purpose of this bill is to harmonize language related to LB 565," Sen. Stan Clouse said. "It gives the Department of Natural Resources the authority to utilize alternative methods of contracting, including design build, progressive design build, or construction manager, general contractor, contracting methods, primarily for large scale projects."

The bill would add language to identify the Public Water and Natural Resource Project Contracting Act as an exception to certain contracting provisions so the Department of Natural Resources may use design-build, progressive design-build and construction manager/general contractor delivery where appropriate. Isabella Peterson, an attorney with the Department of Natural Resources, told the committee the act already grants the department authority to use the methods; LB180 was drafted to correct an omission and harmonize the statute with similar laws for other agencies.

"To clarify, the department is not asking for such authorities today since it has already been granted those authorities with the passage of LB 565 in 2023," Peterson said. "This session, we've asked Senator Clouse to introduce LB 180 for the purpose of adding the act as an exception to those certain contracting provisions found in chapter 73 which would harmonize the act with other similar statutes of its kind."

A representative of a grassroots group opposed aspects of the bill's potential effect on local entities. Allie Bush, testifying for Nebraskans Against Government Overreach, told senators she was concerned about a previously filed complaint against a lower Platte Natural Resources District board member alleging improper bidding practices and argued the committee should consider that history before easing contracting processes.

"If we're going to do anything that makes it easier for them to skip out on doing proper bidding practices, I would put forth some hesitation about that," Bush said, describing an ongoing investigation she said involved an NRD chair who resigned after bidding on a project.

Sen. Clouse and the department's attorney both emphasized LB180 applies to the Department of Natural Resources and not to local NRDs. No formal action or vote was recorded during the hearing; proponents urged the committee to advance the bill to general file.

The committee received proponent testimony from the Department of Natural Resources and one opponent from the grassroots group; no neutral testimony was recorded for LB180.