Lawmakers returned to business on Monday to begin floor debate on priority bills and legislation carried over from the 2023 legislative session. Floor debate will be conducted during the morning sessions, with committee hearings being held in the afternoons through the end of February, at which time full-day legislative debate will begin. While the deadline for designating priority bills has been set for February 14, the body has already advanced six individual senator priority bills, one committee priority bill and three Speaker priority bills to Select File.

The Legislature, prior to adjourning last Friday, adopted an additional amendment to the Legislature’s rules, limiting the number of bills that a Senator may introduce each session. Under the amended rule, Senators will only be allowed to introduce 20 bills, and committees will be limited to introducing 10 bills each session. Lawmakers ran out of time to take up other more controversial rule changes, including a measure to lower the 33-vote threshold for a motion to invoke cloture and cease debate and a proposed rule change that would've barred the news media from observing and reporting on executive sessions of legislative committees.

The following NBA Affirmative Legislative bills were debated on the floor of the Legislature late Friday morning and advanced from Select File to Final Reading:

LB 94 - UCC Article 12
Introduced by Senator Julie Slama (Dunbar), LB 94 would adopt Uniform Commercial Code, Article 12, relating to controllable electronic records. (NBA Position: Support)

LB 279 - Executive Officer Reporting Requirements
Senator Kathleen Kauth (Omaha) introduced LB 279, which would eliminate the requirement for executive officers to make annual reports regarding the amount of loans or indebtedness on which he or she is a borrower, cosigner, or guarantor, the security therefor, and the purpose for which the proceeds have been or are to be used. The bill retains flexibility for the Board of Directors to obtain a credit report for its executive officers on an annual basis. (NBA Position: Support)

The NBA presented testimony before various Committees during the past week on the following bills:

Banking, Commerce and Insurance Committee

LB 989 - Appraisal Management Company Registration Act/Real Property Appraiser Act
A measure introduced by Senator George Dungan (Lincoln), LB 989 would make a series of technical changes to the Real Property Appraiser Act and Nebraska Appraisal Management Company Registration Act and provide civil and criminal immunity for members of the Real Property Appraiser Board. (NBA Position: Support)

LB 992 - Real Property Appraiser Act
Also introduced by Senator Dungan, LB 992 would make “technical corrections” to the existing Real Property Appraiser Act to remain in compliance with the Appraiser Qualification Board’s Real Property Appraiser Qualification Criteria. (NBA Position: Support)


Natural Resources Committee

LB 868 - Petroleum Release Remedial Action Cash Fund
Introduced by Senator Bruce Bostelman (Brainard), LB 868 would extend the sunset date for the fund from June 30, 2024, to June 30, 2028. (NBA Position: Support)


Revenue Committee

LB 1059 - Pass-Through Entity Salt Workaround
Senator Lou Ann Linehan (Elkhorn) has introduced LB 1059, which would clarify that the income tax credit available for members of pass-through entities is allowed for the same taxable year for which the election is made, without regard to the year in which the taxes paid to Nebraska are deducted on the Federal income tax return. The bill would also allow the pass-through entity tax election to be made on the applicable income tax return. (NBA Position: Support)

January 30, 2024
Banking, Commerce and Insurance Committee

LB 1074 - Omnibus Department of Banking Bill
Senator Slama, Chair of the Banking, Commerce and Insurance Committee, has introduced LB 1074 which would renew the annual bank and savings and loan "wild-card" provisions. (NBA Position: Support)

LB 1294 - Data Privacy Act
Senator Eliot Bostar has introduced a measure which would grant data privacy protections to any individual or business a) conducting business in Nebraska or producing a product or service consumed by residents of Nebraska; b) processing or engaging in the sale of personal data; or c) not a small business as defined by the United States Small Business Administration. The bill would exclude any financial institution or data subject to Title V of the Gramm-Leach-Bliley Act. (NBA Position: Support)

Appropriations Committee

LB 1413 - Appropriations-Cash Transfers
Introduced by Speaker John Arch (La Vista) LB 1413 would provide for a series of transfers from various state agency Cash Funds to the General Fund, including $2 million in fiscal year 2024 and 2025 from the Financial Institution Assessment Cash Fund to the General Fund. The bill would also transfer $25 million from the Affordable Housing Trust Fund to the Rural Workforce Housing Investment Fund in fiscal year 2025. (NBA Position: Support additional RWH funding and oppose financial institution assessment cash fund transfer)


January 31, 2024
Appropriations Committee

LB 1077 - Workforce Development and Career Readiness Programs
Introduced by Senator Mike McDonnell (Omaha), LB 1077 would appropriate $2 million from the General Fund for fiscal year 2024-25 to the Department of Labor to provide grants for workforce development and career readiness, to be used for facility expansion. The bill would also require a one-to-one match of private funding for the facility expansion with grant funds to be evenly distributed between the Nebraska congressional districts. (NBA Position: Support)


February 1, 2024
Government, Military and Veterans Affairs Committee

LB 925 - Firearm Industry Nondiscrimination Act
Senator Ray Aguilar (Grand Island) is the sponsor of this legislation which would prohibit governmental entities from entering into a contract with any company engaged in discriminating against firearm entities for contracts worth at least $100,000 that are to be paid, in whole or in part, by a governmental entity.
 
A “Background Paper” setting forth additional information and talking points accompanies this NBA Legislative Update for your assistance in contacting members of the Gov't, Military and Veterans Affairs Committee to encourage opposition to the measure. 

Revenue Committee

LB 1308 - Sales Tax on Services
Introduced by Senator Brad von Gillern (Elkorn) LB 1308 would impose the sales and use tax upon accounting services and repair and replacement parts for agricultural machinery. (NBA Position: Oppose)
 
LB 1310 - Advertising Services Tax Act
Introduced by Senator Joni Albrecht (Thurston) LB 1310 would impose a 7.5% sales tax on companies that derive more than $1 billion in gross advertising revenue and would also eliminate the sales and use tax exemption for sales of lottery tickets. (NBA Position: Oppose)
 
LB 1311 - Sales Tax on Services
Introduced by Senator Fred Meyer (St. Paul) LB 1311 would impose the sales and use tax on motor vehicle cleaning services, pet-related services, and storage and moving services. (NBA Position: Oppose)
 
LB 1319 - Sales Tax/Data Centers
Also Introduced by Senator Lou Ann Linehan (Elkhorn) LB 1319 would eliminate the existing sales tax exemption for data centers. (NBA Position: Oppose)
 
LB 1345 - Sales Tax on Services
Introduced by Justin Wayne (Omaha) LB 1345 would impose the sales and use tax on legal services performed in the furtherance of a business enterprise. (NBA Position: Oppose)
 
LB 1349 - Sales Tax on Services
Introduced by Senator Dave Murman (Glenvil) LB 1349 would impose the sales and use tax on dry cleaning and laundry services, as well as single ticket zoo and aquarium admissions. (NBA Position: Oppose)
 
LB 1354 - Advertising Services Tax Act
Also introduced by Senator Joni Albrecht (Thurston) LB 1354 would impose a 7.5% sales tax on companies that derive more than $1 billion in gross advertising revenue. (NBA Position: Oppose)


February 2, 2024
Revenue Committee

LB 1400 - Relocation Incentive Act
Introduced by Senator Beau Ballard (Lincoln) LB 1400 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. (NBA Position: Support)
 
LB 1415 - Property Tax Relief
Introduced by Senator Robert Dover (Norfolk) LB 1415 would provide state funding directly to school districts, counties, cities, and villages in exchange for direct property tax relief. (NBA Position: Support)

Over 60 bankers were in attendance at the NBA Government Relations Forum on Thursday, January 25. Bankers enjoyed lunch with 28 state senators and presentations by Kelly Lammers, Director of the Department of Banking and Finance; State Senators Julie Slama, Mike Jacobson and Rob Clements; and Governor Jim Pillen. NBA General Counsel Bob Hallstrom provided an overview of the legislative session activities and a review of the bills of interest to the NBA.

Issue: Firearm Industry Nondiscrimination Act - LB 925
NBA Position: Opposed

Background:
LB 925, introduced Senator Ray Aguilar, Grand Island would prohibit governmental entities from entering into a contract (except for contracts relating to investment services) with any company engaged in discriminating against firearm entities for contracts worth at least $100,000 that are to be paid, in whole or in part, by a governmental entity. In order to be eligible to contract with governmental agencies, a company, the contract would need to contain written verification from the company that it does not have a practice, policy, guidance document, or directive that discriminates against a firearm entity or firearm trade association.

Arguments in opposition to LB 925

1. LB 925 is a solution in search of a problem with respect to banking relationships with firearms industry-related customers.
2. Banks should be free to lend to, invest in and generally do business with any entity or activity that is legal, without government interference.
3. Banks should be free not to lend, invest or otherwise engage so long as they do not violate statutory, regulatory, fair lending or other anti-discrimination laws.
4. The free-market approach to banking industry regulation has produced the strongest and most resilient financial system in the world. Efforts by policymakers from all sides of the political spectrum to intervene in the intermediation of capital risks undermine that system.
5. Nebraska banks make decisions every day based on their business interests. These business decisions are made with the primary goal of return on investment. Environmental, social and governance risks should not be considered separate categories of risk, as they are already embedded in the risks banks currently assess, monitor and mitigate.
6. When policymakers use banks to impose unrelated policy goals, bank customers and communities get caught in the middle, and end up the losers.

Please contact the members of the Government, Military and Veterans Affairs Committee set forth below to encourage them to oppose LB 925.

Government, Military and Veterans Affairs Committee

• Tom Brewer (District 43), chairperson [email protected] | (402) 471-2628
• Ray Aguilar (District 35) [email protected] | (402) 471-2617
• Danielle Conrad (District 46) [email protected] | (402) 471-2720
• Steve Halloran (District 33) [email protected] | (402) 471-2712
• Megan Hunt (District 8) [email protected] | (402) 471-2722
• John Lowe (District 37) [email protected] | (402) 471-2726
• Jane Raybould (District 28) [email protected] | (402) 471-2633
• Rita Sanders (District 45) [email protected] | (402) 471-2615

​108th Legislature, 2nd Session

​Wednesday marked the last day for new bill introductions, with a total of 596 new bills and 11 new Constitutional Amendments being introduced during the 2024 legislative session. Committee hearings will commence next Monday with floor debate on carryover bills during the morning sessions and committee hearings in the afternoons.
 
The legislature spent most of the week debating rules changes. Among the changes to the permanent rules which will govern the legislature for the balance of the 2024 session are: a) a requirement for separate votes to be taken to suspend the rules and to pass a subsequent motion; b) clarification of the timing for which priority motions, typically utilized during filibusters may be introduced; c) a requirement for Introducer’s Statements of Intent to be posted at least three days in advance of a committee hearing; d) allowing bills on consent calendar to be removed by the filing of objections by five (was three) senators; and e) clarifying that a motion to return a bill from Final Reading to Select File for specific amendment and the amendment itself are not subject to being divided or amended. 

On Thursday, a motion to replace the long-standing practice of electing leadership (Speaker and Committee Chairs) by secret ballot with an open voting process failed to garner the 30 votes required for adoption. When the Legislative Update went to press, lawmakers were debating a proposed rule to limit the number of legislative bills that could be introduced each session by an individual senator. 

Governor Jim Pillen delivered his State of the State address on Thursday morning, calling for a lower overall tax burden and increased efforts to cut spending at both the state and local levels. Among the legislative priorities that Governor Pillen will be promoting: 

• Reducing spending by .5% in the current fiscal year; this effort includes transfers from multiple state agency “cash funds” totaling over $250 million to the General Fund, including $2 million in both fiscal year 2023-24 and fiscal year 2024-25 from the Banking Department’s Financial Institutions Assessment Cash Fund.
• Allocating $5 million to provide income tax credits to cover relocation expenses for workers moving to Nebraska from out-of-state to take jobs paying $70,000 or more.
• Investing $25 million in rural workforce housing and providing incentives for employers to provide childcare for employees to address the workforce shortage.

The Governor has expressed his intention to reduce the overall property tax burden by 40%, to be funded in part by fiscal restraint by both state and local governments, a 0% “hard cap” on property tax growth by local governments and a broader sales tax base.

January 23, 2024
Banking, Commerce and Insurance Committee

LB 989 - Appraisal Management Company Registration Act/Real Property Appraiser Act
A measure introduced by Senator George Dungan (Lincoln), LB 989 would make a series of technical changes to the Real Property Appraiser Act and Nebraska Appraisal Management Company Registration Act and provide civil and criminal immunity for members of the Real Property Appraiser Board.
 
LB992 - Real Property Appraiser Act
Also introduced by Senator Dungan, LB 992 would make “technical corrections” to the existing Real Property Appraiser Act to remain in compliance with the Appraiser Qualification Board’s Real Property Appraiser Qualification Criteria.

January 25, 2024
Revenue Committee

LB 1059 - Pass-Through Entity SALT Workaround
Senator Lou Ann Linehan (Elkhorn) has introduced LB 1059, which would clarify that the income tax credit available for members of pass-through entities is allowed for the same taxable year for which the election is made, without regard to the year in which the taxes paid to Nebraska are deducted on the Federal income tax return. The bill would also allow the pass-through entity tax election to be made on the applicable income tax return.

Paid Family Leave
LB 1139 - Paid Family and Medical Leave Insurance Act
Introduced by Senator Machaela Cavanaugh (Omaha), LB 1139 would allow employees, self-employed individuals and employers to elect to participate in the Paid Family and Medical Leave Insurance Act. The bill would require employees, self-employed individuals and employers wishing to participate in the Act to apply to the Commissioner of the Department of Labor and would allow the Commissioner to determine the amount of contributions which are due and payable by employees and self-employed individuals electing to be covered by the Act. The Commissioner could accept donations from any private individual or entity, including any employer for remittance to the Paid Family Medical Leave Insurance Fund. The State Treasurer would also be directed to transfer $5,568,000 from the Nebraska Healthcare Cash Fund to the Paid Family Medical Leave Insurance Fund.
 
LB 1213 - Paid Family Leave/School-Related Activities
Introduced by Senator Lynne Walz (Fremont), LB 1213 would require any employer or with 15 or more employees to provide a minimum of 20 hours of paid school activities leave (leave taken by an employee for school-related activities of a family member, including, but not limited to, parent-teacher conferences, disciplinary meetings or proceedings, extracurricular or athletic competition or events, volunteer activities, and orientation programs) in each calendar year.
 
Housing
LB 1229 - Housing Program Jurisdiction
Introduced by Senator Justin Wayne (Omaha), LB 1229 would transfer existing powers, duties, functions, responsibilities and jurisdiction relating to various housing programs (Middle Income Workforce Housing Investment Act, Municipal Density and Missing Middle Housing Act, Nebraska Affordable Housing Act and Rural Workforce Housing Investment Act) from the Department of Economic Development to the Nebraska Investment Finance Authority and then after housing programs.
 
LB 1379 - Affordable Housing Down-Payment Assistance
Introduced by Senator Robert Dover (Norfolk), LB 1379 would increase the documentary stamp tax from $2.25 to $2.50 and use the additional funds for affordable housing down-payment assistance.
 
Income Taxes
LB 1279 - Income Taxation/Unrealized Capital Gains
Introduced by Senator Steve Halloran (Hastings), LB 1279 would, for tax years beginning on or after January 1, 2024, increase the federal taxable income for individuals and corporations and fiduciaries by an amount equal to 12% of unrealized capital gains.
 
LB 1372 - Corporate And Individual Income Tax Rate Delay
Introduced by Senator Tom Brandt (Plymouth), LB 1372 would delay the reductions in maximum individual and corporate income tax rates for a three-year period and utilize the funds from the increased income tax revenues for the Property Tax Credit Act.
 
Miscellaneous
LB 1268 - Bankruptcy-Homestead Exemption
Introduced by Senator Danielle Conrad (Lincoln), LB 1268 would allow each natural person residing in Nebraska to have exempt from judgment liens and from execution or for sale, a homestead not exceeding $120,000 (was $60,000) in value in the dwelling house in which the claimant resides.
 
LB 1295 - Financial Institution Data Match
Introduced by Senator von Gillern (Omaha), LB 1295 would authorize the Department of Revenue to establish a data match system to provide financial institutions with a list of delinquent taxpayers to match against the accountholders of the financial institution.
 
LB 1301 - Foreign-Owned Real Estate National Security Act
Introduced by Senator Barry DeKay (Niobrara), LB 1301 would prohibit a non-resident alien from purchasing or acquiring title to real estate. The bill would authorize the Attorney General to bring an action for divestment of ownership of real estate by a non-resident alien and would provide for distribution of proceeds from sale of divested property a) to cover the cost of sale; b) to pay for legal fees incurred by the Attorney General; and c) to pay lienholders, in order of lien priority.
 
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.

You are encouraged to sign up for the annual NBA State Government Relations Forum which will be held on January 25 at the Cornhusker Marriott Hotel in Lincoln. Headlining the program will be presentations by Governor Pillen, a panel of state senators, and NBA General Counsel Bob Hallstrom and Ryan McIntosh. Nebraska Department of Banking and Finance Director Kelly Lammers will discuss Department initiatives.

The State Government Relations Forum presents an opportunity to meet personally with your state senator during lunch to discuss issues of importance to the banking industry, your institution and your community. We look forward to seeing you on January 25!
Register Here

As of Thursday, Jan. 11, the seventh day of the 2024 legislative session, a total of 349 bills and three proposed constitutional amendments have been introduced. Floor debate on bills "carried over" from last session is expected to begin on Jan. 22 and will continue during morning sessions of floor debate by the Legislature, with Committee hearings to be held in the afternoons.

Floor debate on amendments to rules governing the legislative process began on Thursday morning. The Rules Committee, chaired by Senator Steve Erdman (Bayard) conducted a public hearing on Monday, Jan. 8, on 34 proposed rules amendments. The Rules Committee has advanced 17 rules amendments for consideration by the full legislature. Speaker John Arch (Papillion) has indicated that the debate on rules amendments will go no longer than Friday, Jan. 19.

While a number of the proposed rules changes are technical in nature, extended floor debate is likely to result on more controversial measures to a) end the practice of "secret ballots" when voting for leadership of committees, speaker and executive board; b) create a sliding scale for the number of senators required to invoke cloture thereby ceasing debate and allowing for a vote on the pending measure (Currently, a motion to invoke cloture requires 33 votes.); and c) closing executive sessions to reporters unless a committee chair allows them to participate.

In a departure from prior years, 17 individual senators and one committee have already designated priority bills. In addition, the Speaker has identified three of his 25 legislative priorities. While it's customary for senators and committees, as well as the Speaker to wait until closer to the deadline for designating priority bills (Feb. 15), individual senators and committee chairs appear to be designating their priorities early in light of the uncertainty for how the session will evolve, considering last year's frequent filibustering of issues.

Governor Pillen is scheduled to present the annual "State of the State" address on Jan. 18 outlining his priorities for the session.

The following bills have been introduced on behalf of the NBA:

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 of 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 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.

LB 1176 - Public Entities Pooled Investment Act
Senator George Dungan (Lincoln) has introduced LB 1176, which would establish investment priorities, customer disclosures and restrictions on investments for political subdivision investment pools. 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. In addition, the bill would limit the investments in commercial paper by a political subdivision investment pool to no more than 40% of the total funds eligible for investment and to no more than 5% of the total funds available for investment in commercial paper of a single issuer.

LB 1074 - Omnibus Department of Banking Bill
Senator Julie Slama (Dunbar), Chair of the Banking Commerce and Insurance Commitee, has introduced LB 1074 which would renew the annual bank and savings and loan "wild-card" provisions.

LB 925 - Firearm Industry Nondiscrimination Act
Senator Ray Aguilar (Grand Island) is the sponsor of this legislation which would prohibit governmental entities from entering into a contract with any company engaged in discriminating against firearm entities for contracts worth at least $100,000 that are to be paid, in whole or in part, by a governmental entity.

LB 954 - Biometric Autonomy Liberty Law
Senator Kathleen Kauth (Omaha) has introduced LB 954 which would provide for regulation of the collection, use, safeguarding, handling, storage, retention and destruction of biometric data.

LB 961 - Noncompete Agreements
LB 961, introduced by Senator Dungan, would prohibit an employer with one or more employees (other than government employers) from entering into a noncompete agreement with a lower-wage employee (employee who earns no more than $100,000 per year).

LB 888 - Middle Income Workforce Housing Investment Act
Introduced by Senator Tony Vargas (Omaha), LB 888 would appropriate $25 million from the General Fund for fiscal year 2024-25 to the Department of Economic Development for the Middle-Income Workforce Housing Investment Act.
 
LB 889 - Rural Workforce Housing Investment Act
LB 889, also introduced by Senator Vargas, would appropriate $25 million from the General Fund for fiscal year 2024-25 to the Department of Economic Development for the Rural Workforce Housing Investment Act.
 
LB 897 - Rural Workforce Housing Investment Act
Introduced by Senator Loren Lippincott (Central City), LB 897 would appropriate $20 million from the General Fund for fiscal year 2024-25 to the Department of Economic Development for the purposes of the Rural Workforce Housing Investment Act.
 
LB 1039 - Middle-Income Workforce Housing Investment Act and Rural Workforce Housing Investment Act
Senator Vargas introduced LB 1039 which would appropriate $25 million from the General Fund for fiscal year 2024 and 2025 to the Department of Economic Development for the Middle-Income Workforce Housing Investment Act and $25 million for the Rural Workforce Housing Investment Act.

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 $5,000 of the amount of funds that need not be available for disbursement from good funds.

LB 991 - Blockchain Basics Act
Senator Eliot Bostar (Lincoln) has introduced LB 991, which would prohibit a political subdivision from discriminating against digital asset mining businesses with respect to sound pollution and other types of regulations.

LB 1067 - Inheritance Tax
Introduced by Senator Rob Clements (Elmwood), LB 1067 would phase out the inheritance tax by Jan. 1, 2028.

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 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 851 - Economic Development/Internship Grants
Senator Mike Jacobson (North Platte) introduced LB 851 which would allow businesses with less than 150 full-time-equivalent employees (was 50) to obtain grants for internships to reimburse the cost of wages paid.

LB 993 - Economic Development/Apprenticeship Grant Act
LB 993, introduced by Senator Teresa Ibach (Sumner), would provide underemployed and unemployed individuals with job training and classroom instruction opportunities in order to earn a livable wage and reduce their reliance on economic assistance programs and increase the number of Nebraska businesses willing to offer apprenticeships to Nebraska workers.

LB 1077 - Workforce Development and Career Readiness Program
Introduced by Senator Mike McDonnell (Omaha), LB 1077 would appropriate $2 million from the General Fund for fiscal year 2024-25 to the Department of Labor to provide grants for workforce development and career readiness, to be used for facility expansion. The bill would also require a one-to-one match of private funding for the facility expansion with grant funds to be evenly distributed between the Nebraska congressional districts.

LB 1114 - Endow Nebraska Act
LB 1114, also introduced by Senator Bostar, would allow a taxpayer who provides an endowment gift to an endow Nebraska qualified community foundation or a community affiliate for a permanent endowment fund to be eligible for a tax credit. The tax credit would be equal to 15% of a taxpayer’s gift to a permanent endowment and is nonrefundable and non-transferable but may be carried forward. The maximum annual tax credits would be set at $5 million in the aggregate and $50,000 per taxpayer.

The gavel fell at 10:00 a.m. on Wednesday, January 3, marking the beginning of the second session of the 108th Legislature. The first two days of the short, 60-day session consisted primarily of bill introductions, with 154 new bills dropped into the hopper. Combined with nearly 600 bills carried over from the 2023 legislative session, lawmakers will face a healthy slate of issues once again this session.

Bill introductions will continue during the first 10 legislative days, with General File debate of bills carried over from the 2023 legislative session to commence after the rules debate has been completed. Governor Pillen will present his State of the State address on January 18, with Committee hearings to begin on January 22 and run through February 29. February 14 is the deadline for submitting requests for Speaker Priority bill designations and individual senator and Committee priority bills must be designated by February 15. Full-day floor debate is scheduled to begin on March 4 with the legislature scheduled to adjourn on April 18.

The early days of the legislative session will involve consideration of changes to the permanent rules. Speaker John Arch (La Vista) and Senator Steve Erdman (Bayard), chair of the Rules Committee, along with individual senators, with submit proposed rule changes to the permanent rules that are filed with the clerk, with the Rules Committee to conduct a public hearing early next week, followed by advancement by the Committee of proposed rules changes which will be debated on the floor shortly thereafter.

​Senator Erdman is expected to propose rule changes that would eliminate secret votes for legislative leadership elections and bar the news media from Legislative Committee executive sessions. In addition, it is expected that a rule change to not count senators "present and not voting" when calculating the two-thirds vote needed to terminate a filibuster and advance a bill will also be debated.

Major issues expected to be addressed this session include workforce development, childcare incentives, and addressing the rural and affordable housing shortages. Governor Pillen has also indicated that he will be proposing a 2% state sales tax increase to be coupled with "hard" spending caps for local political subdivisions in order to provide funding for a 40% reduction in property taxes paid on a statewide basis.

During the first day of the session, the body elected a new Chair of the Executive Board to succeed former Senator Tom Briese (Albion). Shortly after convening, Senator Ray Aguilar (Grand Island) was elected to succeed former Senator Briese, who resigned from the legislature earlier this year after being appointed by Governor Pillen to serve as State Treasurer. Senator John Lowe (Kearney) was elected to the position of Vice-Chair of the Executive Board, and Senator Mike Jacobson (North Platte) was selected to serve as a member of the Executive Board.

Lawmakers welcomed new state Senator Fred Meyer (West Point), who was appointed by Governor Pillen to serve as the Legislative District 41 representative following the resignation of Senator Briese. Senator Meyer is a graduate of the University of Nebraska-Lincoln and has been active in his community and in a number of agricultural organizations. Senator Meyer, who served for many years on the Nebraska State Board of Education, has previously indicated that he will not seek election to the legislature in the 2024 General Election.

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, the constitutional provision limiting senators to serving two consecutive four-year terms in office.

This session, the NBA will be promoting a legislative agenda consisting of four bills to be introduced on behalf of the Association. These bills address the following subjects:

1. Increase authority of the Nebraska Department of Banking and Finance to levy fines for misleading and deceptive solicitations of loan customers by third parties;
2. Prohibit the acceptance of a central bank digital currency as a form of payment for a local political subdivision and a state agency taxes, fees and licenses;
3. Political subdivision investment pool investment priorities, customer disclosures and restrictions on permissible investments; and
4. Additional Rural Workforce Housing Funding.

A number of bills introduced on behalf of the NBA last session have been carried over to the current session, as follows:

LB 69 - Life Insurance Assignment - Notice of Lapse/Termination
Senator Jacobson introduced LB 69 on behalf of the NBA, which would prohibit a policy of life insurance subject to an assignment from being terminated for lapsed by reason of default in payment of any premium unless a notice of pending lapse and termination of the policy has been provided by the insurer to any known assignee at least 30 days prior to the effective date of the lapse and termination. The bill also authorizes senior citizens to designate a third party to receive notices of cancellation, nonrenewal and conditional renewal of a life insurance policy.

LB 94 - UCC Article 12
Introduced by Senator Julie Slama (Dunbar), LB 94 would adopt Uniform Commercial Code, Article 12, relating to controllable electronic records.

LB 279 - Executive Officer Reporting Requirements
Senator Kathleen Kauth (Omaha) introduced LB 279, which would eliminate the requirement for executive officers to make annual reports regarding the amount of loans or indebtedness on which he or she is a borrower, cosigner, or guarantor, the security therefor, and the purpose for which the proceeds have been or are to be used. A Banking Committee amendment will allow the Board of Directors to retain flexibility to obtain a credit report for its executive officers on an annual basis.

LB 94 and LB 279 both advanced to Select File last session and are expected to come up for further consideration early in the session after the permanent rules debate has been completed.

The NBA will continue its opposition to the following anti-ESG legislative bills:

LB 67 - Public Funds
Introduced by Senator Slama, LB 67 would require the State Treasurer to ensure that money deposited by the State Treasurer's office is not used by financial institutions for social or political causes or objectives.

LB 730 - Fair Access to Financial Services Act
Introduced by Senator Rick Holdcroft (Bellevue), LB 730 would restrict financial institutions from limiting access to financial services (financial product or service) for any reason other than objective financial criteria. The bill would prohibit a financial institution from denying any person a financial service offered by the financial institution unless justified by such person's documented failure to meet quantitative, impartial and risk-based financial standards established in advance by the financial institution.

LB 743 - Investment Neutrality in Public Funds Act
Also introduced by Senator Kauth, LB 743 would require any investment manager, fiduciary, governing body or financial institution in making and supervising investments of any public fund to discharge its duties solely in the financial interest of the beneficiaries for the exclusive purposes of a) providing financial benefit to the beneficiaries, and b) defraying reasonable expenses related to administration of the benefits.

The bill would require a fiduciary to take into account only financial (having a material effect on the financial risk of the financial return of an investment) factors when discharging its duties with respect to investments of public funds (financial does not include any action taken, or factor considered, by a fiduciary with any purpose whatsoever to further social, political, or ideological interests).

You are encouraged to sign up for the annual NBA State Government Relations Forum which will be held on January 25 at the Cornhusker Marriott Hotel in Lincoln. Headlining the program will be presentations by Governor Pillen, a panel of state senators, and NBA General Counsel Bob Hallstrom and Ryan McIntosh. Nebraska Department of Banking and Finance Director Kelly Lammers will discuss Department initiatives.

The State Government Relations Forum presents an opportunity to meet personally with your state senator during lunch to discuss issues of importance to the banking industry, your institution and your community. We look forward to seeing you on January 25!
Register Here