The Banking, Commerce and Insurance Committee has advanced one of its two Committee priority bills (LB 1073) to General File with a series of amendments including a number of bills supported by the NBA.
​
LB 1073 (Third-Party Administrators of Insurers On-Site Audits), which was introduced by Senator Julie Slama (Dunbar), was amended to include the following bills which are supported by the NBA. (NBA Position: Support)

LB 873 - Real Estate Closing/Good Funds
LB 873, introduced by Senator Beau Ballard (Lincoln), would authorize use of real-time or instant payments through the FedNow service of the United States Federal Reserve system, or though 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 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 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.

The NBA presented testimony on the following bills that were heard before various committees this week:

February 20
Appropriations Committee

LB 850 - Rural Workforce Housing
Introduced by Senator Mike Jacobson (North Platte), LB 850 would reallocate ARPA funds originally designated for grants to prepare land parcels pursuant to the Rural Workforce Housing Investment Act that can be used by the Department of Economic Development for grants for rehabilitation and adaptive reuse of vacant or abandoned property in disproportionately impacted rural communities. (NBA Position: Support)

February 22
Revenue Committee

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. (NBA Position: Oppose)

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. (NBA Position: Oppose)

The NBA will be presenting testimony before various committees in the upcoming week on the following bills:

February 27
Banking, Commerce and Insurance Committee

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. Senator Kauth will be submitting amendments to exclude financial institutions, affiliates of financial institutions and data subject to Title V of the Gramm-Leach-Bliley Act from the provisions of the bill. (NBA Position: Watch and Seek Amendments)

February 28
Revenue Committee

LB 1379 - Affordable Housing Down-Payment Assistance
Introduced by Senator Dover, 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. The NBA will be proposing amendments to the bill to provide protections to existing lienholders and require notice of liens to be filed by the state in connection with down-payment assistance loans. (NBA Position: Watch and Seek Amendments)

The following bills, supported by the NBA, were advanced from Select File to Final Reading following floor debate during the past week:

LB 989 - Appraisal Management Company Registration Act/Real Property Appraiser Act
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
Senator Dungan also introduced LB 992, which 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)

The Government, Military and Veterans Affairs Committee has advanced LB 925 (Firearm Industry Nondiscrimination Act) to General File on a vote of 5-0 after adopting an amendment proposed by the NBA. As originally introduced by Senator Ray Aguilar (Grand Island), LB 925 would have prohibited 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.

With proposed Committee amendments, the required nondiscrimination certification will not apply to contracts for investment services, for the purchase or issuance of bonds and securities or the deposit of public funds, essentially excluding the banking industry from the provisions of the bill.

Lawmakers adjourned on Thursday for a long four-day weekend, having reached the mid-point of the 2024 Legislative Session. The Legislature continues to methodically process carryover legislation from the 2023 session and bills designated as priorities by individual senators and committees during the current session.
 
The deadline for designating individual senator and committee priority bills has passed, and the Speaker will unveil the remainder of his priority bills on February 20. These “priority bills” and debate on the biennium budget adjustment package of bills will shape the agenda for the balance of the session. Any bills that have not been prioritized, amended into a priority bill or eligible to be considered on “consent calendar” (bills advancing from committee with no dissenting votes and no opposition) are not likely to receive further consideration this session.

The NBA presented testimony on the following bills that were heard before various committees this week:

February 12
Banking, Commerce and Insurance Committee

LB 873 - Real Estate Closing/Good Funds
LB 873, introduced by Senator Beau Ballard (Lincoln), would authorize the 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 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)

February 14
Appropriations Committee

LB 889 - Rural Workforce Housing Investment Act
LB 889, introduced by Senator Tony Vargas (Omaha), 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. (NBA Position: Support)

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. (NBA Position: Support)

LB 1039 - Middle-Income Workforce Housing Investment Act and Rural Workforce Housing Investment Act
Senator Vargas also 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. (NBA Position: Support)

The NBA will be presenting testimony before various committees next week on the following bills:

February 20
Appropriations Committee

LB 850 - Rural Workforce Housing
Introduced by Senator Mike Jacobson (North Platte), LB 850 would reallocate ARPA funds originally designated for grants to prepare land parcels pursuant to the Rural Workforce Housing Investment Act that can be used by the Department of Economic Development for grants for rehabilitation and adaptive reuse of vacant or abandoned property in disproportionately impacted rural communities. (NBA Position: Support)

February 22
Revenue Committee

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. (NBA Position: Oppose)

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. (NBA Position: Oppose)

The following bills of interest to the banking industry have been designated as priority bills, which will enhance their likelihood of being considered as the session progresses.
​
Committee Priority Bills
Banking, Commerce and Insurance Committee

LB 1073 - Third-Party Administrators of Insurers On-Site Audits
Senator Julie Slama (Dunbar) has introduced LB 1073 which would authorize the director of insurance to require an insurer for whom the third-party administrator administers benefits for more than 100 certificate holders or subscribers on behalf of the insured, to conduct an on-site audit of the operations of the third-party administrator. It is anticipated that a number of bills supported by the NBA will be integrated into this Committee priority bill prior to its advancement by the Committee to General File. (NBA Position: Watch)

LB 1074 - Omnibus Department of Banking Bill
Senator Slama also introduced LB 1074 which would renew the annual bank and savings and loan "wild-card" provisions. It is anticipated that a number of bills supported by the NBA will be integrated into this Committee priority bill prior to its advancement by the Committee to General File. (NBA Position: Support)

Revenue Committee

LB 388 - Sales Tax
Introduced by Senator Lou Ann Linehan (Elkhorn), LB 388 is a "shell" bill likely to be utilized as a vehicle for potential sales tax-related legislation.

LB 1317 - Declaration Regarding Property Taxes
Senator Linehan also introduced LB 1317 which is a "shell" bill likely to be utilized for potential property tax relief legislation.

​108th Legislature, 2nd Session

The Legislature continues to process legislation carried over from the 2023 session with many bills advancing to Select File and a few, including a bill requiring two-man crews for trains (LB 31) and a bill to change the daylight savings time system (LB 143), failing to garner sufficient votes to advance. The deadline (February 15) for designating individual and Committee priorities is rapidly approaching, with the Speaker required to designate his 25 priority bills by February 20. The bills designated as priorities will no doubt dominate the balance of the session, along with debate on biennium budget adjustments advanced by the Appropriations Committee.

The Legislature gave final approval on Thursday morning to the following bills on the NBA Affirmative Legislative agenda:

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. The bill retains flexibility for the Board of Directors to obtain a credit report for its executive officers on an annual basis.

The following bills, supported by the NBA, were advanced from General File to Select File following floor debate during the past week:

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)

The NBA presented testimony on the following bills on the NBA Affirmative Legislative agenda which were heard before the Banking, Commerce and Insurance Committee on February 5:

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.

LB 1176 - Public Entities Pooled Investment Act
​Senator Dungan 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 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.

The NBA presented testimony on the following bills that were heard before various committees this week:

February 5
Banking, Commerce and Insurance Committee

LB 1332 - Prepaid Card Consumer Protection Act
LB 1332, also introduced by Senator Dungan, would prohibit the charging of any fee, including a maintenance, service, or inactivity fee on a prepaid card (record that contains a microprocessor chip, magnetic strip, or other storage medium that is prefunded and for which the value is adjusted upon each use), or the placement of an expiration date on a prepaid card or otherwise limit the time for redemption for a prepaid card. (NBA Position: Oppose)

Business and Labor Committee

LB 961 - Noncompete Agreements
Introduced by Senator Dungan, LB 961 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). (NBA Position: Oppose)

LB 1213 - Paid Family Leave/School Related Activities Leave
Introduced by Senator Lynne Walz,  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. (NBA Position: Oppose)

February 7
Revenue Committee

LB 1315 - Sales Tax
Introduced by Senator Lou Ann Linehan (Elkhorn), LB 1315 would increase the state sales tax and use rate from 5.5% to 6.5%, commencing October 1, 2024. ​(NBA Position: Oppose)

February 12
Banking, Commerce and Insurance Committee

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. (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)

February 14
Appropriations Committee

LB 889 - Rural Workforce Housing Investment Act
LB 889, introduced by Senator Tony Vargas (Omaha), 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. (NBA Position: Support)

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. (NBA Position: Support)

LB 1039 - Middle-Income Workforce Housing Investment Act and Rural Workforce Housing Investment Act
Senator Vargas also 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. ​(NBA Position: Support)

The Legislature has completed just over one third of the 2024 legislative session, as lawmakers adjourned on Friday. The initial filibuster of the year on a bill (LB 31) requiring train crews of at least two individuals was winding down as we went to press.

The package of bills constituting the Governor's 40% property tax relief proposal encountered rough sledding throughout the week as multiple opponents submitted online comments and lined up to testify on Tuesday against a bill that would provide for approximately 250 million in transfers from State Agency Cash Funds to the General Fund (LB 1413).

Political subdivisions railed against a proposal on Thursday that would have revised property tax levy limits (LB 1141), and school districts were out in force to oppose a bill to eliminate the ability of school districts to override levy limits with a 70% vote (LB 1318).

Representatives of the business community also voiced their objections to a series of bills heard on Thursday that would have repealed existing sales tax exemptions or impose new taxes on items such as soda and candy, advertising, accounting, and legal services, as well as repair and replacement parts for agricultural machinery and equipment.

The following bills on the NBA affirmative legislative agenda will be heard before the Banking , Commerce and Insurance Committee on February 5.

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.

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 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.

A "Background Paper" setting forth additional information and talking points accompanies this NBA Legislative Update for your assistance in contacting members of the Banking, Commerce and Insurance Committee to encourage your support for the measure.

The NBA presented testimony before various committees on the following legislative bills:

January 30
Agriculture Committee

LB 1116 - Grocer Reinvestment Act
Introduced by Senator Teresa Ibach (Sumner), LB 1116 would authorize the Department of Agriculture to make loans, grants, and forgivable loans to designated grocery store businesses in low - and moderate - communities for investments to expand or improve access to perishable nutritionist foods covering expenses for capital improvements, energy efficiency measures, repair and maintenance of buildings and equipment, purchases of equipment and furnishings, and technical assistance.

The NBA proposed an amendment that would require loans of $10,000 or more to involve bank participation. Bank participation would be determined by the contract would provide flexibility to consider a traditional loan participation, a loan guarantee or an interest rate buy down program, similar to the Nebraska Dollar and Energy Saving Loan Program administered by the Nebraska Department of Environment and Energy. (NBA Position: Support)

Banking, Commerce and Insurance Committee

LB 955 - Gift Certificate/Gift Card Customer Notices
Introduced by Senator Eliot Bostar (Lincoln), LB 955 would require any business entity selling a gift certificate or gift card to a purchaser, to include a notice at the location where the sale occurs, which provides: “Protect yourself from prepaid card scams, including requests related to lotteries, taxes, employment status, or utility payments. Do not provide any prepaid card information to someone you do not know, including the PIN number or card number. If you feel that you are a victim of fraud, contact local law enforcement.” The bill would require any business entity which has an electronic payment system screen to provide notice on the screen prior to the purchaser finalizing payment or if the entity does not have an electronic payment system screen or does not wish to provide notice in this manner, notice must be posted in a conspicuous manner in the location where the sale occurs.

Senator Bostar and supporters of the bill have agreed to an amendment that would exclude bank-issued general-use prepaid cards from the provisions of LB 955. (NBA Position: Support with amendments)

LB 1074 - Omnibus Department of Banking Bill
Senator Julie Slama (Dunbar), 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 Bostar has also 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, affiliate of the 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 Associate General Counsel Ryan McIntosh appeared before the Appropriations Committee to express the preference of the NBA to provide additional Rural Workforce Housing funding from the General Fund, rather than through a transfer from the Affordable Housing Trust Fund and entered the NBA’s opposition to the proposed transfer from the Financial Institution Assessment Cash Fund to the General Fund. (NBA Position: Support additional rural workforce housing funding and oppose financial institution assessment cash fund transfer)

Urban Affairs Committee

LB 948 - Community Development Law/Prevailing Wage
Introduced by Senator Mike McDonnell (Omaha), LB 948 would require a redevelopment contract for redevelopment plan or redevelopment project under the Community Development Law to include a provision requiring that any laborers and mechanics employed by the redeveloper or by any contractor or subcontractor to perform construction work for the project be paid wages at rates not less than the prevailing rates for construction of a similar character in the locality in which the redevelopment project is located. (NBA Position: Oppose)

February 1
Government, Military & 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.
NBA General Counsel Bob Hallstrom expressed opposition to the bill suggesting that government should not interject itself into the free-market system. Banks should be free to lend to, invest in, and generally do business with any entity or activity that is legal, without government interference. Banks should also 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. (NBA Position: Oppose)

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 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 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
Government, Military & Veterans Affairs 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)

The following bills will be heard before various committees next week:

February 5
Banking, Commerce and Insurance Committee

LB 1332 - Prepaid Card Consumer Protection Act
LB 1332, also introduced by Senator Dungan, would prohibit the charging of any fee, including a maintenance, service, or inactivity fee on a prepaid card (record that contains a microprocessor chip, magnetic strip, or other storage medium that is prefunded and for which the value is adjusted upon each use) or the placement of an expiration date on a prepaid card or otherwise limit the time for redemption for a prepaid card. (NBA Position: Oppose)

Business and Labor Committee

LB 961 - Noncompete Agreements
Introduced by Senator George Dungan (Lincoln), LB 961 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). (NBA Position: Oppose)​

LB 1213 - Paid Family Leave/School Related Activities Leave
Introduced by Senator Lynne Walz, 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. (NBA Position: Oppose)

Issue: Political Subdivision Investment Pools (LB 1176)
NBA Position: Support


Background:
LB 1176 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 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.

Arguments in opposition to LB 925

1. Political subdivision investment pools (PSIP) currently have virtually unlimited authority with respect to the manner in which they may invest political subdivision funds. LB 1176 would a) significantly restrict the permissible investments allowed for a PSIP; b) clarify that the investment priorities of a PSIP, in order of importance, are 1) safety; 2) liquidity; and 3) yield; and c) require consumer protection disclosures to ensure that political subdivisions are aware of the risks inherent in PSIP investments.
2. LB 1176 also ensures a prudent level of risk for PSIP investments in commercial paper, which is in accordance with industry standards and is limited to that issued by a United States corporation, with a stated maturity of 270 days or less, and which holds ratings in the highest category by at least two nationally recognized rating agencies.
3. The Federal Financial Industry Regulatory Authority (FINRA) requires Series 6 licensure for the solicitation, purchase or sale of municipal fund securities. While the majority of PSIPs operating in Nebraska hold appropriate licensure, other PSIPs should not be operating in a FINRA gray-area without appropriate oversight.
4. Nebraska law has long recognized that the best and safest place for public deposits is in the local bank. Public deposits are FDIC insured up to $250,000, with additional protection provided in the form of a pledge of securities equal to at least 102% of the amount of deposits in excess of the FDIC insured amount. Local banks put public deposits to good and beneficial use in the form of loans and investments that spur, grow and invigorate local economies.

Banking, Commerce and Insurance Committee
Julie Slama (District 1), Chairperson [email protected] | (402) 471-2733
Ray Aguilar (District 35) [email protected] | (402) 471-2617
Beau Ballard (District 21) [email protected] | (402) 471-2673
Eliot Bostar (District 29) [email protected] | (402) 471-2734
George Dungan (District 26) [email protected] | (402) 471-2610
Mike Jacobson (District 42) [email protected] | (402) 471-2729
Kathleen Kauth (District 31) [email protected] | (402) 471-2327
Brad von Gillern (District 4) [email protected] | (402) 471-2621