108th Legislature, Second Session Lawmakers returned on Thursday, April 18, for the final day of the 60-day session. The agenda included only eight bills. However, several of the bills were viewed as some of the most controversial measures taken up during the session. This included heated debate on sales and property tax measures (LB 388), an increase in the Nebraska Documentary Stamp Tax (LB 1363) and direct appropriations from the State of Nebraska to fund scholarships for students attending private schools (LB 1402). Governor Pillen did not veto any of the more than 100 bills advanced last week. In a shock to many, LB 388 was pulled from the agenda, thereby killing the bill. LB 388 was introduced by Senator Lou Ann Linehan (Elkhorn) and represented Governor Pillen's property tax plan. The bill was met with strong opposition from a very broad coalition and was the subject of a newspaper, radio, television and text message campaign over the last seven days. Senator Julie Slama (Dunbar) and Senator Danielle Conrad (Lincoln) led the filibuster against the bill. Included in LB 388 were the following provisions:
Also included was a 3% cap on revenue growth for cities, villages and counties. An amendment was adopted to include exceptions to increase salaries to address shortages for law enforcement and first responders. At the conclusion of the regular agenda, Governor Pillen addressed the Legislature in his farewell remarks. Although he began by applauding the many achievements of the 108th Legislature, he soon made clear his disappointment in the body's failure to advance LB 388. Governor Pillen referred to adjournment sine die as "halftime" and vowed to call a special session to address property taxes. The Legislature also advanced LB 1402, which was introduced by Senator Linehan. LB 1402 would appropriate $10 million annually to be used for scholarships for K-12 students attending private schools. This measure could nullify the ballot referendum for LB 753 set for the November general election. LB 753, known as the "Opportunity Scholarship Act," passed last year and provides an income tax credit for donating to scholarship-granting organizations. The measure advanced on a 32-15 vote. Opponents have vowed a legal challenge or another petition drive to force a referendum on the bill. The 2024 legislative session will be the last for Senators Joni Albrecht (Thurston), Carol Blood (Omaha), Bruce Bostelman (Brainard), Tom Brewer (Gordon), Steve Erdman (Bayard), Steve Halloran (Hastings), Lou Ann Linehan (Elkhorn), John Lowe (Kearney), Mike McDonnell (Omaha), Tony Vargas (Omaha), Lynne Walz (Fremont), Justin Wayne (Omaha) and Anna Wishart (Lincoln) due to term limits. Senator Fred Meyer (St. Paul) and Senator Slama have decided not to run for reelection. Elections this year will include 25 of the 49 seats, with 15 of those being open with no incumbent running. However, given Governor Pillen's comments, the service of these Senators is likely not over yet. Sign Up for the Final Legislative ReviewThe final NBA Government Relations team legislative review is Monday, April 22, at 9:00 a.m. CT. Register for a review of legislation processed this session and how the bills may affect the banking industry. Additionally, the NBA government relations team will provide information and facts regarding the EPIC tax ballot initiative. 108th Legislature, Second Session The Nebraska Legislature completed day 59 of the 60-day session on Thursday. The week ended with just over 100 bills on Final Reading being considered and approved by the Legislature. This capped off three weeks of late-night sessions often mired in filibusters. Senators will reconvene on Thursday, April 18, for the final day of the session. Senators will take up a handful of bills still left on Final Reading. Governor Pillen will have until Wednesday, April 17, to veto any bill that passed on Thursday. This will allow the Legislature to take up any motions to override any veto issued by Governor Pillen. Much of the most significant legislation taken up this session still awaits Final Reading consideration next week. This includes part of the Governor's tax package (LB 388), updates to the Nebraska Good Life Transformational Projects Act (LB 1317), and a bill that would provide direct appropriations for scholarships (LB 1402), which would also nullify the ballot initiative recall of the Opportunity Scholarships Act passed during the 2023 session. Legislature Advances Tax PackageAfter significant debate and paring down from the previous package, senators advanced LB 388 on a vote of 28 to 14, with five senators present not voting. Following several attempts to strip out various provisions, the bill limped forward to Final Reading. Teh bill, as advanced, includes the following measures:
Also included is a 3% cap on revenue growth for cities, villages and counties. An amendment was adopted to include exceptions to increase salaries to address shortages for law enforcement and first responders. NBA-Supported Bills Passed on Final ReadingLB 1023 - Adopt the Relocation Incentive Act Introduced by Senator Brad von Gillern (Omaha), LB 1023 includes the Relocation Incentive Act initially introduced by Senator Beau Ballard (Lincoln). The bill provides a tax credit for employers who pay relocation expenses for an employee who relocates to the State of Nebraska. The original bill would allow entities to claim the credit on their corporate income tax returns. Senator Ballard and Senator von Gillern worked with the NBA to ensure banks and insurance companies could also claim the tax credit. LB 1073 - Third-Party Administrators of Insurers On-Site Audits Introduced by Senator Julie Slama (Dunbar), LB 1073 was amended to include the following bills which are supported by the NBA. The bills that were incorporated into LB 1073 are as follows: LB 873, introduced by Senator Ballard, would authorize use of real-time or instant payments through the FedNow service of the United States Federal Reserve system, or through the RTP network of the Clearinghouse Payments Company LLC for purposes of the good funds requirement associated with real estate closings and would increase from $500 to $1,500 of the amount of funds that need not be available for disbursement from good funds. LB 1135 - Right-to-List Home Sale Agreements Introduced by Senator Robert Dover (Norfolk), LB 1135 would make void and unenforceable any right-to-list home sale agreement (an agreement by the owner of a residential real estate providing another person with the exclusive right to list real estate for sale at a future date in exchange for monetary consideration which purports to be a lien, encumbrance or other real property security interest) or lien or encumbrance resulting from such an agreement which is presented for recording, or recorded in the office of the register of deeds or county clerk. LB 1409 - Condominium Association Declaration Amendment Introduced by Senator Eliot Bostar (Lincoln), LB 1409 would limit the requirement to obtain lienholder approval of amendments to a condominium association declaration to a) time-share arrangements; b) unit subdivisions; and c) issues affecting lien priorities and lienholder foreclosure rights. The bill would deem a lienholder which fails to respond to a request for approval of amendment to declarations within 60 days of the request to have given approval. Prior to advancing, amendments proposed by the NBA providing greater protection to lienholders were adopted by the Committee. LB 1074 - Omnibus Department of Banking Bill Also introduced by Senator Slama, LB 1074 would, among other things, renew the annual bank and savings and loan "wild-card" provisions. The bills that were incorporated into LB 1074 are as follows: LB 872 - Central-Bank Digital Currency Introduced by Senator Rob Clements (Elmwood), LB 872 would prohibit political subdivisions or state agencies from accepting a central-bank digital currency as a method of cash payment of any tax, levy, excise, duty, custom, toll, interest, penalty, fine, license, fee or assessment of whatever kind or nature. (NBA Position: Affirmative Legislation) LB 1122 - Misleading Advertisements/Solicitations Senator Ballard is the sponsor of LB 1122, which would increase the maximum fine that the Department of Banking can impose for violations involving misleading advertisements or solicitation of bank customers from $1,000 to $5,000. Current law places restrictions on the ability of any person to include the name, trade name, logo or symbol of a financial institution in a written solicitation for financial products or services directed to a consumer who has obtained a loan from the financial institution without the consent of the financial institution, unless the solicitation clearly and conspicuously states that the person is not sponsored or affiliated with a financial institution and that the solicitation is not authorized by the financial institution. (NBA Position: Affirmative Legislation) LB 1176 - Public Entities Pooled Investment Act Introduced by Senator George Dungan (Lincoln), LB 1176 would establish investment priorities, customer disclosures and restrictions on investments for political subdivision investment pools. As amended by the Committee prior to advancing, the bill would specifically limit investments by a political subdivision investment pool in commercial paper to commercial paper a) issued by a United States corporation; b) with a stated maturity of 270 days or fewer from its date of issuance; and c) which is rated in the highest quality category by at least two nationally recognized rating agencies at the time of purchase. In addition, the bill would limit investments in commercial paper by a political subdivision investment pool to no more than 50% of the total funds eligible for investment at the time of purchase and to no more than 5% of the total funds available for investment in commercial paper of a single issuer. (NBA Position: Affirmative Legislation) NBA Bills of InterestLB 1301 - Foreign-Owned Real Estate National Security Act Introduced by Senator Barry DeKay (Niobrara), LB 1301 updates the Foreign-Owned Real Estate National Security Act. The bill strengthens protections for ownership of land with close proximity to military installations. Senator DeKay worked closely with the NBA to ensure financial institutions holding mortgages or deeds of trust are protected if foreign entities are required to divest their ownership. Sign Up for Virtual Legislative Reviews During the Legislative SessionThe next NBA Government Relations team virtual Legislative Update is Monday, April 22, at 9:00 a.m. CT. Register for the final overview of legislation introduced this legislative session that may affect the banking industry. Additionally, the NBA government relations team will provide information regarding the EPIC tax ballot initiative. 108th Legislature, Second Session Banking Committee Priority Bills Advance to Final ReadingTo complete Friday morning's activities, before moving on to LB 575 discussed above, two priority bills designated by the Banking, Commerce and Insurance Committee (LB 1074 - Banking Priority Bill and LB 1073 - Insurance Priority Bill) advanced to Final Reading. The bills, as amended and advanced from Committee - along with other pending amendments - contain the following: LB 1074 - Omnibus Department of Banking Bill Introduced by Senator Julie Slama (Dunbar), LB 1074 would, among other things, renew the annual bank and savings and loan "wild-card" provisions. Prior to advancing the bill, the Committee adopted amendments incorporating the provisions of LB 710 (Credit Union Act), LB 872 (Central-Bank Digital Currency) , LB 1122 (Misleading Advertisements/Solicitations) and LB 1176 (Public Entities Pooled Investment Act). The bills to be incorporated into LB 1074 are as follows: LB 710 - Credit Union Act Introduced by Senator George Dungan (Lincoln), LB 710 would: a) authorize a credit union to provide written notice of any change in its principal place of business within the state to be delivered to the Department in person or sent by regular or electronic mail; b) authorize a credit union to conduct annual or special meetings by virtual conferencing platform; c) authorize the board of directors of a credit union to conduct regular meetings not less frequently than six meetings annually, with at least one meeting in each calendar quarter; d) authorize a credit union's board of directors to appoint one or more associate directors to serve in an advisory capacity; and e) authorize a credit union to invest in insurance policies and other investment products to fund employee benefit plans for its employees not to exceed 15% of the net worth of a credit union from a single issuer or 25% of the net worth of a credit union in aggregate. Provisions of the original bill - which were opposed by the NBA and which have been removed in the Committee amendment to LB 1074 - would have: a) eliminated requirements for the Director of the Nebraska Department of Banking and Finance (Department) to provide notices of an application for establishment of a branch of a credit union and remove discretion from the Director to hold a public hearing on amendments to a credit union association's bylaws which are brought before the Department; b) allowed a credit union with a main chartered office or approved branch in the state, upon notification to the Department, to establish savings account programs in any elementary or secondary school, whether public or private, that has students who reside in the same city or village as the main chartered office or branch of the credit union; c) expanded the field of membership of a credit union to include persons or organizations within a geographically defined community, neighborhood or rural district; d) authorized credit unions to invest in shares, stocks or member units of financial technology companies in a total amount not exceeding 5% of the net worth of the credit union; and e) repealed the 18% usury rate on credit union loans. (NBA Position: Objections Favorably Resolved) LB 872 - Central-Bank Digital Currency Introduced by Senator Rob Clements (Elmwood), LB 872 would prohibit political subdivisions or state agencies from accepting a central-bank digital currency as a method of cash payment of any tax, levy, excise, duty, custom, toll, interest, penalty, fine. license, fee or assessment of whatever kind or nature. (NBA Position: Affirmative Legislation) LB 1122 - Misleading Advertisements/Solicitations Senator Beau Ballard (Lincoln) is the sponsor of LB 1122, which would increase the maximum fine that the Department of Banking can impose for violations involving misleading advertisements or solicitation of bank customers from $1,000 to $5,000. Current law places restrictions on the ability of any person to include the name, trade name, logo or symbol of a financial institution in a written solicitation for financial products or services directed to a consumer who has obtained a loan from the financial institution without the consent of the financial institution, unless the solicitation clearly and conspicuously states that the person is not sponsored or affiliated with a financial institution and that the solicitation is not authorized by the financial institution. (NBA Position: Affirmative Legislation) LB 1176 - Public Entities Pooled Investment Act Introduced by Senator Dungan, LB 1176 would establish investment priorities, customer disclosures and restrictions on investments for political subdivision investment pools. As amended by the Committee prior to advancing, the bill would specifically limit investments by a political subdivision investment pool in commercial paper to commercial paper a) issued by a United States corporation; b) with a stated maturity of 270 days or fewer from its date of issuance; and c) which is rated in the highest quality category by at least two nationally recognized rating agencies at the time of purchase. In addition, the bill would limit investments in commercial paper by a political subdivision investment pool to no more than 50% of the total funds eligible for investment at the time of purchase and to no more than 5% of the total funds available for investment in commercial paper of a single issuer. (NBA Position: Affirmative Legislation) LB 1073 - Third-Party Administrators of Insurers On-Site Audits Introduced by Senator Slama, LB 1073 was amended to include the following bills which are supported by the NBA. The bills to be incorporated into LB 1073 are as follows: LB 873 - Real Estate Closing/Good Funds LB 873, also introduced by Senator Ballard, would authorize use of real-time or instant payments through the FedNow service of the United States Federal Reserve system, or through the RTP network of the Clearinghouse Payments Company LLC for purposes of the good funds requirement associated with real estate closings and would increase from $500 to $1,500 of the amount of funds that need not be available for disbursement from good funds. (NBA Position: Support) LB 1135 - Right-to-List Home Sale Agreements Introduced by Senator Robert Dover (Norfolk), LB 1135 would make void and unenforceable any right-to-list home sale agreement (an agreement by the owner of residential real estate providing another person with the exclusive right to list real estate for sale at a future date in exchange for monetary consideration which purports to be a lien, encumbrance or other real property security interest) or lien or encumbrance resulting from such an agreement which is presented for recording, or recorded in the office of the register of deeds or county clerk. (NBA Position: Support) LB 1409 - Condominium Association Declaration Amendment Introduced by Senator Eliot Bostar (Lincoln), LB 1409 would limit the requirement to obtain lienholder approval of amendments to a condominium association declaration to a) time-share arrangements; b) unit subdivisions; and c) issues affecting lien priorities and lienholder foreclosure rights. The bill would deem a lienholder which fails to respond to a request for approval of amendment to declarations within 60 days of the request to have given approval. Prior to advancing, amendments proposed by the NBA providing greater protection to lienholders were adopted by the Committee. (NBA Position: Support) Governor Pillen Signs Budget Package - No VetoesGovernor Jim Pillen announced that he signed both state budget bill packages without a single veto. In his praise for the Appropriations Committee, he indicated they provided him with a “fiscally sound” budget that added additional funding to the school aid formula and makes few changes to the current state budget, providing for an average increase in spending of 2.7% (up from 2.3%) and provided $230 million in transfers to support Governor Pillen’s plan to cut property tax payments Property Tax Debate ContinuesLB 388, introduced by Senator Lou Ann Linehan (Elkhorn) advanced to Select File after securing exactly 33 votes to invoke cloture. Senator Steve Erdman (Bayard) changed his vote at the last minute so that the bill could have more time for negotiations. The bill is designed to shift $650 million off local property taxes and onto new and increased sales taxes, resulting in a 30% reduction in property taxes. LB 388 would also impose new and more restrictive caps on local spending by counties, cities and villages. The package was opposed by a wide array of business groups and advocates for low-income individuals due to the increase in sales taxes. Enough support was gained after Senator Linehan pledged to work with Governor Pillen and opponents to find a compromise. Senator Linehan indicated that she would not ask the bill to be placed back on the agenda if a compromise is not reached. The Education Committee advanced the property tax proposal on Tuesday afternoon which is the second part of Governor Pillen’s property tax reduction plan. LB 1331 was advanced from the Committee on an 8-0 vote. The bill was immediately scheduled for debate on Wednesday and moved to Select File on a 45-0 vote. LB 1331 would result in $1.17 billion increase in school aid by doubling the amount of per-pupil “foundation aid” sent to schools from $1,500 to $3,000, funding the hike by a combination of existing state tax credits, increases in sales taxes and elimination of some sales tax exemptions. Governor Pillen’s office estimates the measure would reduce school property taxes by 45% statewide. Although it advanced, the fate of LB 1331 hinges on the outcome of LB 388. Sign Up for the Final Legislative ReviewThe next NBA Government Relations team virtual Legislative Update is Monday, April 22, at 9:00 a.m. CT. Register for the final overview of legislation introduced this legislative session that may affect the banking industry. Additionally, the NBA government relations team will provide information regarding the EPIC tax ballot initiative. 108th Legislature, 2nd Session Nebraska lawmakers ended a contentious week on a positive note, advancing 22 bills on final reading. Time is winding down as Thursday marked Day 52 of the 60-day session. Senators will return from the long weekend on Tuesday to take back up LB 388, described below. The Legislature adjourned Thursday afternoon with debate on LB 1073, introduced by Senator Julie Slama (Dunbar). LB 1073 is one of the Banking, Commerce and Insurance Committee priority bills and contains provisions supported by the NBA. Senators Clash Over Sales Tax PackageThe Revenue Committee advanced LB 388 to the floor of the Legislature to begin the week on a 7-1 vote. The bill was promptly taken up for debate on Wednesday, March 27. However, debate was cut short after it appeared the supporters did not have the 33 votes necessary to invoke cloture to end debate and get to a vote on the bill. Senator Lou Ann Linehan (Elkhorn), LB 388's sponsor, ended the evening debate by letting colleagues know she planned to work on the bill over the weekend to work on drafting errors. LB 388 contains a package of bills that were heard in committee and represents Governor Jim Pillen’s revenue package. Included in LB 388 is an increase in the state sales tax rate from 5.5% to 6.5%. However, there is a mechanism for the rate to be lowered in quarter-percent increments dependent on state revenue collected. Additionally, a series of sales tax exemptions are eliminated, and new taxes are added on other products and services. The elimination of exemptions includes animal grooming, veterinary services, drycleaning, soft drinks and candy. Also, taxes on hemp products, cigarettes and vaping would face sharp increases. LB 388 would also add a tax on revenues from advertising for large advertisers, such as Google and Meta. Opponents argue that this will be passed along to businesses using these services. Also contained in the package are caps on spending for counties, cities and villages, with exceptions for first responders, and methods for exceeding the caps. Budget Bills AdvancedThe Legislature advanced LB 1412 and LB 1413 on Tuesday of this week. LB 1412 was the biennial budget adjustment bill to make updates to the biennial budget passed last year. LB 1413, which proposed a series of sweeps of the State’s various cash funds, included an amendment to compromise with opponents who took issue with the proposed sweep of $70 million from the State Unemployment Insurance Trust Fund. Initially, the bill would have directed $10 million to the Workforce Development Program, and $60 million to the general fund. Under the compromise, only $30 million will go to the General Fund, with $40 million to the Workforce Development Program. Additionally, an amendment brought by Senator Ben Hansen (Blair) would lower the minimum amount the Department of Labor can collect each year from businesses paying the tax. The NBA supports the compromise and amendment from Senator Hansen. LB 1413 also directs $12.5 million each to the Rural Workforce Housing and Middle-Income Housing Funds. Sign Up for Virtual Legislative Reviews During the Legislative SessionThe next NBA Government Relations team virtual Legislative Update is Monday, April 22, at 9:00 a.m. CT. Register for the final overview of legislation introduced this legislative session that may affect the banking industry. Additionally, the NBA government relations team will provide information regarding the EPIC tax ballot initiative. 108th Legislature, 2nd Session The Legislature adjourned on Thursday having completed 48 days of the short 60-day 2024 Legislative Session. Lawmakers must give final approval and send the mid-biennium budget adjustments to the Governor by the close of business next Tuesday. The Legislature continues to make steady progress in processing individual, Committee and Speaker priority bills; however, much work remains to be done in the closing days of the session, and the body will be working well into the evenings for the balance of the session. Omnibus Banking Bill Advances to Select FileThe Legislature has given first-round approval to LB 1074, one of the two Banking, Commerce and Insurance Committee Priority Bills which, as advanced, now contains the following provisions: LB 1074 - Omnibus Department of Banking Bill Introduced by Senator Julie Slama (Dunbar), LB 1074 would, among other things, renew the annual bank and savings and loan “wild-card” provisions. Prior to advancing the bill, the Committee adopted amendments incorporating the provisions of LB 710 (Credit Union Act), LB 872 (Central-Bank Digital Currency) and LB 1122 (Misleading Advertisements/ Solicitations). (NBA Position: Support) LB 710 - Credit Union Act Introduced by Senator George Dungan (Lincoln), LB 710 would: a) authorize a credit union to provide written notice of any change in its principal place of business within the state to be delivered to the Department in person or sent by regular or electronic mail; b) authorize a credit union to conduct annual or special meetings by virtual conferencing platform; c) authorize the board of directors of a credit union to conduct regular meetings not less frequently than six meetings annually, with at least one meeting in each calendar quarter; d) authorize a credit union board of directors to appoint one or more associate directors to serve in an advisory capacity; and e) authorize a credit union to invest in insurance policies and other investment products to fund employee benefit plans for its employees not to exceed 15% of the net worth of a credit union from a single issuer or 25% of the net worth of a credit union in aggregate. Provisions of the original bill – which were opposed by the NBA and which have been removed in the Committee amendment to LB 1074 – would have: a) eliminated requirements for the Director of the Nebraska Department of Banking and Finance (Department) to provide notices of an application for establishment of a branch of a credit union and remove discretion from the Director to hold a public hearing on amendments to a credit union association’s bylaws which are brought before the Department; b) allowed a credit union with a main chartered office or approved branch in the state, upon notification to the Department, to establish savings account programs in any elementary or secondary school, whether public or private, that has students who reside in the same city or village as the main chartered office or branch of the credit union; c) expanded the field of membership of a credit union to include persons or organizations within a geographically defined community, neighborhood or rural district; d) authorized credit unions to invest in shares, stocks or member units of financial technology companies in a total amount not exceeding 5% of the net worth of the credit union; and e) repealed the 18% usury rate on credit union loans. LB 872 - Central-Bank Digital Currency Introduced by Senator Rob Clements (Elmwood), LB 872 would prohibit political subdivisions or state agencies from accepting a central-bank digital currency as a method of cash payment of any tax, levy, excise, duty, custom, toll, interest, penalty, fine, license, fee or assessment of whatever kind or nature. LB 1122 - Misleading Advertisements/Solicitations Senator Beau Ballard (Lincoln) is the sponsor of LB 1122, which would increase the maximum fine that the Department of Banking can impose for violations involving misleading advertisements or solicitation of bank customers from $1,000 to $5,000. Current law places restrictions on the ability of any person to include the name, trade name, logo or symbol of a financial institution in a written solicitation for financial products or services directed to a consumer who has obtained a loan from the financial institution without the consent of the financial institution, unless the solicitation clearly and conspicuously states that the person is not sponsored or affiliated with a financial institution and that the solicitation is not authorized by the financial institution. Another pending amendment to LB 1074 would incorporate the following provisions of LB 1176, a bill on the NBA Affirmative Legislative agenda: LB 1176 - Public Entities Pooled Investment Act Introduced by Senator Dungan, LB 1176 would establish investment priorities, customer disclosures and restrictions on investments for political subdivision investment pools. As amended by the Committee prior to advancing, the bill would specifically limit investments by a political subdivision investment pool in commercial paper to commercial paper a) issued by a United States corporation; b) with a stated maturity of 270 days or fewer from its date of issuance; and c) which is rated in the highest quality category by at least two nationally recognized rating agencies at the time of purchase. In addition, the bill would limit investments in commercial paper by a political subdivision investment pool to no more than 50% of the total funds eligible for investment at the time of purchase and to no more than 5% of the total funds available for investment in commercial paper of a single issuer. Property Tax Relief Measure AdvancesThe Legislature's Revenue Committee has advanced a bill (LB 388) designed to address Governor Jim Pillen's goal of reducing property taxes by 40%. Under the measure, advanced on a vote of 7-0, the state sales tax rate would be increased by up to one cent and a series of sales tax exemptions would be eliminated. While the measure calls for a one cent increase in the state sales tax rate, if state tax receipts at the end of the 2023-2024 fiscal year exceed a 3.5% increase, a lower state sales tax rate would be triggered. If excess receipts are $133 million above the 3.5% threshold, the increase in state sales tax would be limited to three quarters of a cent increase to fund the plan, and the increase would be limited to half a cent if tax receipts exceeded the 3.5% threshold by $266 million. Other components of the measure would convert the income tax credit for school district and community college property taxes paid to a direct payment to school districts to lower their tax rates. A cap on revenue growth adopted by the Legislature last year is designed to ensure that the tax decrease results. New spending caps for cities and counties are proposed as well. The balance of funding for property tax relief would come from the elimination of a series of existing sales tax exemptions, including exemptions on pop and candy, pet grooming, advertising revenues and state lottery tickets, and raising some taxes of gambling (skill games), cigarettes, vaping products and synthetic marijuana and CBD products. Floor debate on LB 388 is expected to commence early next week. Budget Package Moves on to Final ReadingLawmakers gave second-round approval to two bills (LB 1412 and LB 1413) comprising the state's mid-biennium adjustment package. Housing Funding Adjusted An amendment proposed by Senator Terrell McKinney (Omaha) revised the amount of funding to be allocated for rural workforce housing and middle-income workforce housing. Prior to adopting the amendment, LB 1413 would have transferred $20 million from the Affordable Housing Trust Fund to the Rural Workforce Housing Investment Fund and $5 million to the Middle-Income Workforce Housing Fund. Under the amendment the combined $25 million in transfers would instead be split evenly between the two funds in the amount of $12.5 million each. The amendment initially failed on a vote of 23-22 with 25 votes needed for the adoption. A motion to reconsider the vote was ultimately successful and the amendment was adopted on the following vote of 25-23. Yes: Arch, Ballard, Blood, Bostar, J. Cavanaugh, M. Cavanaugh, Conrad, Day, DeBoer, Dungan, Fredrickson, Hansen, Holdcroft, Hunt, Linehan, McDonnell, McKinney, Raybould, Riepe, Sanders, Vargas, von Gillern, Walz, Wayne and Wishart No: Aguilar, Albrecht, Armendariz, Bostelman, Brandt, Brewer, Clements, DeKay, Dorn, Dover, Erdman, Halloran, Hardin, Huges, Ibach, Jacobson, Kauth, Lippincott, Lowe, Meyer, Moser, Murman and Slama Excused and Not Voting: Bosn Other NBA-Supported Bills AdvanceThe following bill, supported by the NBA, has advanced to Select File: LB 1023 - Taxation - Individual Income Taxes LB 1023, introduced by Senator Brad von Gillern (Elkhorn), would allow deductions from federal adjusted gross income for business assets covered under Section 168 of the Internal Revenue Code. Another bill supported by the NBA that has been incorporated into LB 1023 is the following: LB 1400 - Relocation Incentive Act Introduced by Senator Ballard, LB 1135 would authorize a refundable income tax credit equal to 50% of the relocation expenses paid by an employer for a qualifying employee (individual moving to Nebraska to accept a position of employment) not to exceed a maximum credit of $5,000 per qualifying employee. The bill would require a qualifying employee to receive an annual salary of at least $70,000 and not more than $250,000 per year and would subject the tax credit to recapture if the employee moves out-of-state within two years after the credit is claimed. The tax credits for this program will be capped at $5 million. Sign Up for Virtual Legislative Reviews During the Legislative SessionThe next NBA Government Relations team virtual Legislative Update is Monday, March 25, at 9:00 a.m. CT. 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