Nebraska Administrative Code Topic - ECONOMIC DEVELOPMENT, DEPARTMENT OF
Overview: Nebraska Administrative Code – Department of Economic Development
The Nebraska Department of Economic Development (DED) administers programs to promote business growth, workforce development, and community development. Key areas include:
Business incentive programs (grants, tax credits, loans)
Community development and infrastructure grants
Workforce training programs
Compliance, reporting, and audit requirements
Enforcement and recovery of misused funds
The purpose is to stimulate economic growth while ensuring transparency, accountability, and legal compliance.
Case 1: Misuse of Grant Funds
Situation
A small manufacturing business receives a community development grant to purchase new equipment but uses the funds to renovate office space instead.
Relevant NAC Rules
Funds must be used strictly for approved purposes.
Misuse constitutes a violation of grant agreements and administrative rules.
Board Analysis
The business is out of compliance and must justify expenditures or return funds.
DED monitors proper utilization to ensure public money is used appropriately.
Outcome
Business required to repay misused funds.
Ineligibility for future grants until resolved.
Administrative penalties may apply.
Purpose
Ensures responsible use of public resources and prevents financial abuse.
Case 2: Failure to Meet Job Creation Requirements
Situation
A company receives a job creation incentive, committing to hire 50 employees, but only hires 20 within the required timeframe.
Relevant NAC Rules
Incentive programs often include job creation or retention benchmarks.
Failure to meet commitments constitutes non-compliance.
Board Analysis
Incentive programs are conditional upon performance.
DED can enforce compliance and recover incentives.
Outcome
Proportional reduction or full recapture of incentives.
Company required to report hiring progress and provide explanations.
Future incentive applications may be denied.
Purpose
Aligns incentives with actual economic impact and job creation goals.
Case 3: Late or Inaccurate Reporting
Situation
A business participating in a workforce training program submits financial and progress reports past deadlines, and some data is inaccurate.
Relevant NAC Rules
Participants must submit timely and accurate reports on program outcomes and fund use.
Board Analysis
Late or inaccurate reporting prevents proper monitoring.
Violates administrative accountability requirements.
Outcome
Warning issued, and corrected reports must be submitted.
Repeated violations may lead to suspension from programs.
Possible financial penalties for misreporting.
Purpose
Ensures transparency, proper program oversight, and accountability for public funds.
Case 4: Using Incentive Funds for Unauthorized Activities
Situation
A company uses funds from a tax credit program to cover operating expenses unrelated to program objectives, like marketing unrelated products.
Relevant NAC Rules
Funds must be used only for approved project activities specified in the program.
Board Analysis
Misallocation violates program rules.
DED has authority to recover funds and impose sanctions.
Outcome
Immediate repayment of misused funds.
Suspension from participating in other programs until compliance is confirmed.
Mandatory program review or audit may be required.
Purpose
Ensures incentives achieve their intended economic development goals.
Case 5: Misrepresentation During Application
Situation
A company applies for a community revitalization grant and inflates projected job numbers and investment amounts to qualify.
Relevant NAC Rules
Applicants must provide truthful and verifiable information.
Misrepresentation is grounds for denial, revocation, and legal consequences.
Board Analysis
Providing false information undermines fairness and program integrity.
DED must investigate and verify all claims before awarding funds.
Outcome
Grant application denied or rescinded if already awarded.
Possible requirement to repay any disbursed funds.
Applicant may be barred from future programs.
Purpose
Maintains fairness and protects public funds.
Case 6: Noncompliance with Reporting for Rural Development Loan
Situation
A rural business receives a low-interest loan for infrastructure development but fails to submit annual progress reports and financial statements required by NAC regulations.
Relevant NAC Rules
Loan recipients must report on use of funds, project progress, and financial health.
Failure to report is considered a breach of loan terms.
Board Analysis
Prevents DED from tracking project outcomes and repayment.
Violates accountability standards.
Outcome
Loan repayment may be accelerated.
Interest penalties may apply.
DED may place a lien on the business assets until compliance is achieved.
Purpose
Ensures loan accountability and effective use of public funds.
Case 7: Environmental Compliance Violations in Grant-Funded Projects
Situation
A company receives a grant to develop a facility, but construction violates environmental regulations.
Relevant NAC Rules
DED-funded projects must comply with state and federal environmental laws.
Non-compliance can result in sanctions or funding withdrawal.
Board Analysis
Non-compliance risks project suspension and public harm.
DED requires adherence to environmental standards before and during project execution.
Outcome
Project halted until violations are corrected.
Partial or full withdrawal of grant funds.
Reassessment for future funding eligibility.
Purpose
Ensures public investments meet legal and environmental standards.
Key Takeaways from Nebraska DED Cases
Funds must be used for approved purposes; misuse triggers repayment.
Performance requirements (job creation, investment) are binding conditions.
Accurate and timely reporting is mandatory for compliance.
Truthful applications are essential; misrepresentation results in denial or revocation.
Noncompliance with loan or grant conditions can accelerate repayment or impose penalties.
Environmental and legal compliance is required for funded projects.
Failure to comply can affect future eligibility for economic development programs.
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