Committee hearings on a number of issues dominated the Legislature this week. These include late-night hearings on "Winner Take All" for electoral votes (LB 3 and LR 24CA), hemp (LB 16 and LB 316), landlord-tenant issues (LB 2, LB 185, LB 233 and LB 235), and the death penalty (LR 15CA and LB 432).

Other highlights include the State of the Judiciary Address from Nebraska Supreme Court Chief Justice Jeffrey Funke on Tuesday. Chief Justice Funke highlighted the significant progress courts have made in the probation system and reducing recidivism. He also highlighted goals of improving court technology and access to the court system by individuals not represented by attorneys.

The Legislature began debate on bills that have already been advanced from each committee. Speaker John Arch (La Vista) scheduled these bills, which are largely non-controversial in "worksheet order," meaning they were taken up in the order they were advanced from the respective committee.

Two NBA affirmative bills were heard this week. LB 85, introduced by Senator Wendy DeBoer (Bennington) on behalf of the NBA, advanced Thursday to Select File on a 42-0 vote. LB 85 would allow use of an abstract of death provided by the Department of Health and Human Services as an alternative to a certified death certificate for small estate affidavits in the event of a delay in production of a certified death certificate.

Additionally, LB 250, introduced by Senator Mike Jacobson (North Platte) on behalf of the NBA, is scheduled for floor debate on Monday. LB 250 would modernize residency requirements for board members of Nebraska state-chartered banks. The bill removes geographic restrictions requiring most board members to live in Nebraska or within 25 miles of a banks main office. As Nebraska banks expand beyond state lines, this change would give them the flexibility to recruit highly qualified board members from states where they operate.

Next week, the Banking, Commerce and Insurance Committee will take up LB 241 and LB 609. LB 241 would define a cybersecurity event as an event resulting in unauthorized access to or disruption or misuse of an information system or nonpublic information system where the following information is accessed: (a) Social Security numbers; (b) driver's license numbers or state identification card numbers; (c) financial account numbers or credit or debit card numbers; (d) security code, access code, or password that would permit access to such person’s financial accounts; or (e) any biometric record. The bill would provide that a private entity shall not be liable in a class action resulting from a cybersecurity event unless the cybersecurity event was caused by willful, wanton, or gross negligence on the part of the private entity. LB 609 would adopt the Controllable Electronic Record Fraud Prevention Act to require registration and licensure of cryptocurrency kiosks. The bill would also enact consumer protection measures for gift cards and prepaid cards for businesses, other than financial institutions. 

Over 75 bankers attended the NBA Government Relations Forum on Thursday, January 30. Bankers enjoyed lunch with 22 state senators and presentations by Governor Jim Pillen, Director of the Department of Banking and Finance Kelly Lammers, and State Senators Rob Clements, Mike Jacobson and Bob Hallstrom. NBA General Counsel Ryan McIntosh provided an overview of the legislative session activities and a review of the bills of interest to the NBA.

Senators concluded the week with committee hearings on Friday afternoon, marking day 12 of the 90-day session. Bill introduction concluded on Wednesday, January 22, for a total of 715 legislative bills and 18 Constitutional Amendments introduced. This year marks the first year for the newly imposed 20-bill limit for each Senator. For reference, there were 812 bills introduced in 2023 during the first year of the 108th Legislature and 684 bills introduced in 2021 during the first year of the 107th Legislature. The Legislature debated adoption of the permanent rules beginning on Wednesday and continued during the morning sessions for the week.

Committee hearings began on Wednesday and continued the rest of the week. LB 85, introduced by Senator Wendy DeBoer (Bennington) on behalf of the NBA, was heard before the Judiciary Committee. NBA Associate General Counsel Jerry Stilmock testified in support of the bill.

LB 85 - Amend Small Estate Affidavit Law
Introduced by Senator DeBoer, LB 85 would allow use of an abstract of death provided by the Department of Health and Human Services as an alternative to a certified death certificate for small estate affidavits in the event of a delay in production of a certified death certificate.

Stilmock also testified before the Revenue Committe in support of LB 182 on Friday. LB 182 was introduced by Senator Eliot Bostar (Lincoln) and would expand the Child Care Tax Credit, enacted in 2023, to include financial institutions and insurance companies.

Next week, the Legislature will take up LB 250, introduced by Senator Mike Jacobson (North Platte) on behalf of the NBA. LB 250 updates the residency requirements for state-chartered banks to allow banks to make reasonable efforts to have a majority of the bank directors to have their residences in the State of Nebraska, within 25 miles of the main office of the bank, in the county in which the bank office of such bank is located, or in a county where branches of a the bank are located. This change allows state-chartered banks operating in multiple states to have adequate representation on its board of directors from each state. The Banking, Commerce and Insurance Committee will also take up LB 231, introduced by Senator Bob Hallstrom (Syracuse), which adopts the Uniform Special Purpose Deposits Act, and LB 251, introduced by Senator Jacobson, the Nebraska Department of Banking and Finance Omnibus Bill.

The Legislature adjourned just after noon on Friday to wrap up day eight of the 90-day session. The week included bill introduction and hearings on proposed changes to the rules. As of today, there have been a total of 432 bills introduced. Senator Ben Hansen (Blair) announced yesterday that more than 1,100 requests had been submitted to the Revisor of Statutes for bills to be drafted. Senators will return next week on Tuesday for the final two days of bill introductions, with committee hearings scheduled to begin on Wednesday, January 22. 
 
Thus far, several significant bills have been introduced, including a budget bill that, similar to last year, would sweep a number of state agency cash funds into the General Fund to cover the projected $432 million shortfall. A number of other controversial issues, such as “Winner Take All” for Nebraska’s electoral college votes (LB 3 by Senator Loren Lippincott of Central City) and the Stand with Women Act (LB 89 by Senator Kathleen Kauth of Omaha) have been introduced as well.

All four of the NBA’s affirmative bills have been introduced:
 
LB 85 – Amend Small Estate Affidavit Law
Introduced by Senator Wendy DeBoer (Bennington), LB 85 would allow use of an abstract of death provided by the Department of Health and Human Services as an alternative to a certified death certificate for small estate affidavits in the event of a delay in production of certified death certificate.

LB 232 – Life Insurance - Notice of Lapse or Termination of Life Insurance Assignments
Introduced by Senator Bob Hallstrom (Syracuse), LB 232 would prohibit life insurance policies subject to an assignment from being terminated or lapsed by reason of default in payment of any premium unless a notice of the pending lapse or termination of the policy has been provided by the insurer to known assignees at least 30 days prior to the effective date of the lapse or termination. The bill would provide that the notice may be provided electronically by the insurer to any assignee who has requested notice. The bill would also authorize senior citizens to designate a third party to receive notice of cancellation, nonrenewal and conditional renewals.

LB 241 – Cyber Security Liability Protection
Also introduced by Senator Hallstrom, LB 241 would define a cybersecurity event as an event resulting in unauthorized access to or disruption or misuse of an information system or nonpublic information system where the following information is accessed: (a) Social Security numbers; (b) driver’s license numbers or state identification card numbers; (c) financial account numbers or credit or debit card numbers; (d) security code, access code or password that would permit access to such person’s financial accounts; or (e) any biometric record. The bill would provide that a private entity shall not be liable in a class action resulting from a cybersecurity event unless the cybersecurity event was caused by willful, wanton or gross negligence on the part of the private entity.
 
LB 250 – Board of Directors Composition for Banks
Introduced by Senator Mike Jacobson (North Platte), LB 250 would amend current requirements under the Nebraska Banking Act that require a majority of the members of the Board of Directors of any bank to reside within the state of Nebraska. The bill provides that reasonable efforts shall be made for a majority of the members of the Board of Directors to reside in Nebraska, within 25 miles of the main office of the bank, in the county in which the main office of such bank is located, or in counties in which branches of such bank are located.

The 109th session of the Nebraska Legislature convened on Wednesday, January 8, at 10:00 a.m., with the initial day of the session featuring the election of committee chairs and appointment of individual members to legislative committees. Sen. John Arch (Omaha) was elected to the position of Speaker of the Legislature. The following new committee chairs were also elected by their colleagues:

Agriculture - Sen. Barry DeKay (Niobrara)
Appropriations - *Sen. Rob Clements (Elmwood)
Banking, Commerce & Insurance - Sen. Mike Jacobson (North Platte)
Business & Labor - Sen. Kathleen Kauth (Omaha)
Education - *Sen. Dave Murman (Glenvil)
Executive Board - Sen. Ben Hansen (Blair)
General Affairs - Sen. Rick Holdcroft (Bellevue)
Government, Military & Veteran Affairs - Sen. Rita Sanders (Bellevue)
Health & Human Services - Sen. Brian Hardin (Gering)
Judiciary - Sen. Carolyn Bosn (Lincoln)
Natural Resources - Sen. Tom Brandt (Plymouth)
Nebraska Retirement Systems - Sen. Beau Ballard (Lincoln)
Revenue - Sen. Brad von Gillern (Elkhorn)
Rules - Sen. Loren Lippincott (Central City)
Transportation - *Sen. Mike Moser (Columbus)
Urban Affairs - *Sen. Terrell McKinney (Omaha)

*Chairperson during the 108th Legislature)

Special congratulations to Sen. Rob Clements, who was elected to serve as Appropriations Committee Chair, and Sen. Mike Jacobson, who was elected to serve as Banking, Commerce and Insurance Committee Chair. Sen. Clements and Sen. Jacobson are both members of the NBA, and Sen. Jacobson is a past NBA Chair.

Ordinarily, the Committee on Committees meets following election of Committee Chairs to finalize committee assignments that afternoon. However, the meeting was not without controversy, and final committee assignments were not completed until Thursday afternoon. Along with the election of Sen. Jacobson as Chair of the Banking, Commerce and Insurance Committee, the following members were appointed to serve on the committee:

• Sen. Eliot Bostar, VC (Lincoln)
• Sen. George Dungan (Lincoln)
• Sen. Robert Hallstrom (Syracuse)
• Sen. Brian Hardin (Gering)
• Sen. Merv Riepe (Ralston)
• Sen. Brad von Gillern (Elkhorn)
• Sen. Dave Wordekemper (Fremont)

​There are 17 new senators this year, with two senators - Sen. Julie Slama (Dunbar) and Sen. Fred Meyer (Saint Paul) - who did not run for reelection and two senators - Sen. Ray Aguilar (Grand Island) and Sen. Jen Day (Gretna) - who were not reelected. The newly elected senators are as follows:

• Sen. Robert Hallstrom (District 1, Syracuse)
• Sen. Victor Rountree (District 3, Bellevue)
• Sen. Margo Juarez (District 5, Omaha)
• Sen. Dunixi Guereca (District 7, Omaha)
• Sen. Ashlei Spivey (District 13, Omaha)
• Sen. Dave Wordekemper (District 15, Fremont)
• Sen. Glen Meyer (District 17, Pender)
• Sen. Jared Storm (District 23, David City)
• Sen. Jason Prokop (District 27, Lincoln)
• Sen. Dan Lonowski (District 33, Hastings)
• Sen. Dan Quick (District 35, Grand Island)
• Sen. Stan Clouse (District 37, Kearney)
• Sen. Tony Sorrentino (District 39, Elkhorn)
• Sen. Dan McKeon (District 41, Amherst)
• Sen. Tanya Storer (District 43, Whitman)
• Sen. Paul Strommen (District 47, Sidney)
• Sen. Bob Andersen (District 49, Omaha)

The first 10 working days of the session will be devoted to new bill introductions. During the first three days of bill introductions, a total of 129 bills and three proposed Constitutional Amendments were introduced. The 109th Legislature is the first session where senators have a maximum number of bills - 20 - they are allowed to introduce. This rule was enacted in 2024 and is aimed at limiting the total number of bills.

Committee hearings are tentatively scheduled to commence on Wednesday, January 22. The largest issue facing the Legislature this year is adopting a biennial budget while facing a current projected revenue shortfall of $432 million. Other major issues expected to be taken up are property tax relief and revising the school funding formula, "winner take all" for Nebraska's electoral votes, and other social issues.

The NBA will be promoting an ambitious affirmative legislative agenda with a number of bills to be introduced on behalf of the Association. These bills will cover a range of subjects, including: (1) curbing class action lawsuits for cybersecurity and data breaches; (2) requiring notification of pending lapse or termination of life insurance policies taken as collateral; (3) updates for small estate affidavits; and (4) modernizing requirements for residency of bank directors.

You are encouraged to sign up for the annual NBA State Government Relations Forum on Jan. 30 at the Cornhusker Marriott Hotel in Lincoln. Headlining the program will be presentations by Governor Pillen, a panel of state senators, NBA General Counsel Ryan McIntosh and NBA Associate General Counsel Jerry Stilmock. Nebraska Department of Banking 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 Jan. 30!
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