Today marks day 35 of the 90-day session, closing out a full five-day week of floor debate and committee hearings. The Legislature will resume on Monday morning with floor debate and only four more weeks of hearings. Thus far, a majority of the bills introduced have already received a public hearing.

Much of the debate this week was focused on LB 504, introduced by Senator Carolyn Bosn (Lincoln). The bill would adopt the Age-Appropriate Online Design Code Act, aimed at protecting children from certain social media features. The week closed out with the passage of LB 241, after some extended debate. Introduced by Senator Bob Hallstrom (Syracuse), LB 241 would provide a definition for a cybersecurity event for the unauthorized access to or disruption of information systems of private entities. It would further require that in order to maintain a class action lawsuit against a private entity for such an event, a person would need to demonstrate the cybersecurity event was the result of willful, wanton, or gross negligence on the part of the private entity. LB 241 creates a heightened standard for class action lawsuits and is aimed at curbing class action lawsuits where customers face no actual monetary loss. The bill is supported by the NBA and advanced to Final Reading on a vote of 29-9.

Committee hearings this week featured the following bills:

• LB 415, introduced by Senator Beau Ballard (Lincoln), is a "clean-up bill" for the Nebraska Healthy Families and Workplaces Act, also known as the Paid Sick Leave Ballot or Initiative 436. The bill would clarify that paid sick leave does not need to be provided to independent contractors, that existing paid-time-off programs that meet the minimum hours comply with the act, and that paid sick leave does not need to be paid out upon termination of employment. (NBA Position: Support)
• LB 258, introduced by Senator Jane Raybould (Lincoln), would change the minimum wage law to provide a youth and training wage, and lower the increase from the Consumer Price Index (CPI) to the lower of 1.5% or CPI beyond 2027. (NBA Position: Support)

• LB 215, introduced by Senator Rick Holdcroft (Bellevue), adopts the Clean Slate Act and provides for a program for "second chance relief" to obtain a commutation from the Board of Pardons. The NBA worked with Senator Holdcroft to ensure banks could still inquire about certain criminal convictions to comply with the Federal Deposit Insurance Act. (NBA Position: Support)

• LB 559 - introduced by Senator Bosn, would define skimmer device as electronic or other device used to capture, record, store, or transmit data from the financial transaction device to capture or record the holder's personal identification code. The bill would create offense of installation of a skimmer device, with violation of such offense categorized as Class IV felony. The measure also includes violation for use of a skimmer device, with violation punished according to the total value of money, credit, property, or thing of value obtained, with categories of penalties being Class IIA felony for value $5,000 or more; Class IV felony with a value of $1,500 or more but less than $5,000; Class I misdemeanor when value is more than $500 but less than $1,500; and Class II misdemeanor when such value is $500 or less, with any second or subsequent conviction of Class I misdemeanor being a Class IV felony, and any second conviction of a Class II misdemeanor also being guilty of a Class IV felony, with requirement of prior convictions having occurred no more than 10 years prior to the date of the commission of the current offense. Additionally, LB 559 would allow for aggregation of value in determining the classification of offense but not allowed to be aggregated to create more than one offense and would define financial transaction offense with violations, punishable as a felony and contained definitions of leadership position, engaged in continuing criminal enterprise, and such offense as part of a continuing series of financial transaction offenses, such series of offenses were in concert with two or more persons to whom such person acted in a leadership position, and such person obtained substantial income or resources from activities. Finally, it would establish classifications of punishments as different levels of felonies, depending upon the number of other persons involved in the enterprise and the value of dollars and would authorize a sentencing court to order forfeiture of property for violations of such acts. (NBA Position: Support)

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• LR 19CA, introduced by Senator Rob Dover (Norfolk), and LR 27CA, introduced by Senator Megan Hunt (Omaha), would provide for a ballot vote to change the constitutional limitation on term limits for legislators from two terms to three terms. (NBA Position: Support)

NBA General Counsel Ryan McIntosh also testified on the Nebraska Department of Banking and Finance's budget hearing on Wednesday. McIntosh cautioned the committee from sweeping approximately $3 million from the Financial Institution Assessment Cash Fund to the General Fund to cover the projected budget shortfall. He specifically noted the recent approval of a digital asset depository institution charter and the increased costs for supervision of this first-of-its-kind entity.

The Legislature closed out the week with its first scheduled day of Final Reading. The eighteen bills advanced to the Governor were all noncontroversial and advanced without resistance. Included among these were LB 85, introduced on behalf of the NBA by Senator Wendy DeBoer (Bennington), and LB 182, introduced by Senator Eliot Bostar (Lincoln). LB 85 would allow the 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. LB 182 amends the Affordable Housing Tax Credit Act and the Child Care Tax Credit Act. First, it expands who is eligible to receive the Child Care Tax Credit to include financial institutions for contributions made during tax year 2024 to qualifying projects. Second, it increases the transferability of the Affordable Housing Tax Credit which will allow for increased investment in affordable housing projects in Nebraska. Today marks day 30 of the 90-day session.
 
This week also marked the first full filibuster of the session. On Wednesday, the Legislature advanced LB 229, introduced by Senator Bob Hallstrom (Syracuse). The bill clarifies that “network contractors working for marketplace network platforms” (e.g., Uber and Lyft) are independent contractors, rather than employees. After facing several hours of debate during General File, opponents took the measure to a full four hours requiring a Motion for Cloture and the required 33 votes. Cloture was invoked and the bill advanced on nearly strict party lines with one Democrat (Senator Jane Raybould of Lincoln) voting for the bill, and one Republican (Senator Dave Wordekemper of Fremont) voting against LB 229.
 
Significant time was also spent this week debating whether Nebraska should adopt year-round Daylight Savings Time or year-round Standard Time. Next week, debate will likely kick off with LB 504, introduced by Senator Carolyn Bosn (Lincoln) on behalf of Gov. Pillen, which adopts the Adopt the Age-Appropriate Online Design Code Act. This is intended to protect minors from having their private information shared and allows parents to monitor their child’s online safety by having control over social media accounts and other online features.

The Appropriations Committee began public hearings on the biennial budget this week. This included the mainline budget bill and LB 264, introduced by Speaker John Arch (La Vista) on behalf of the Governor. LB 264 would sweep more than 60 cash funds into primarily the General Fund or Education Future Fund, intended to cover the projected $432 million budget shortfall. The NBA, along with other business associations, testified in opposition to LB 264. The NBA’s testimony focused on the sweeps from workforce development funds and sweeping the majority of the funds in the Financial Institutions Assessment Cash Fund. Hearings continued for the rest of the week and are scheduled to resume next week on the various state agency budgets. The Nebraska Economic Forecasting Advisory Board is scheduled to meet on February 28, 2025. Following that meeting, the Nebraska Legislature will have a better idea of the actual budget shortfall.

This week included fewer notable and controversial bills compared to previous weeks. Highlights include LB 246, introduced by Senator Barry DeKay (Niobrara) on behalf of the Governor, which would ban lab-grown meat in Nebraska and scope of practice reform for medical practitioners.
 
Next week brings more significant hearings, including the following:

• LB 415, introduced by Senator Beau Ballard (Lincoln), is a “clean-up bill” for the Nebraska Healthy Families and Workplaces Act, also known as Initiative 436 or the Paid Sick Leave Ballot Initiative. The bill would provide several important clarifications, including, among other provisions: (1) clarifying the definition of "employ" and its application to independent contractors, owner-operators, and employees who work less than 80 total hours; (2) allow paid sick leave already provided under traditional combined paid time off (PTO) plans or other existing employer plans to satisfy the requirements of the Act; and (3) clarify that paid sick leave does not need to be paid out upon separation from employment. (NBA POSITION: SUPPORT)
• LB 258, introduced by Senator Raybould, would create a lower minimum wage for youth and employees in training, and increase the minimum wage by the lesser of 1.5% or the consumer price index for all urban consumers (CPI-U) annually instead of the current requirement of CPI-U. (NBA POSITION: SUPPORT)
• LR 7CA, introduced by Senator Myron Dorn (Adams), would increase salaries for Senators to $30,000 per year. The current salary of $12,000 per year was established 40 years ago. (NBA POSITION: SUPPORT)
  
• LR 19CA, introduced by Senator Rob Dover (Norfolk), and LR 27CA, introduced by Senator Megan Hunt (Omaha), would increase the maximum number of terms a Senator can serve from two to three consecutive terms. (NBA POSITION: SUPPORT)

Today marks day 22 of the Legislative Session, which means we're approximately one-fourth complete with the 90-day session. Prolonged floor debate on LB 229 from last week continued on Monday and Tuesday of this week before finally coming to a vote. LB 229, introduced by Senator Bob Hallstrom (Syracuse), clarifies that "network contractors working for marketplace network platforms," such as Uber and Lyft drivers, would remain independent contractors, rather than employees subject to the Employment Security Law. The bill served as an early preview of partisan divide in the officially non-partisan Unicameral, leaving observers wondering whether opponents would mount a full eight-hour filibuster. Once LB 229 advanced, the Legislature moved quickly to advance a number of other bills. This included NBA affirmative legislation with LB 85, introduced by Senator Wendy DeBoer (Bennington), and LB 250, introduced by Senator Mike Jacobson (North Platte).

This week included several controversial committee hearings:

• LB 303, introduced by Senator Jana Hughes (Seward) on behalf of Governor Jim Pillen, to amend the Tax Equity and Educational Opportunities Support Act (TEEOSA) formula to lower the levy cap from $1.05 to $1.02, and increase foundation aid.
• LB 317, introduced by Senator Tom Brandt (Plymouth) on behalf of Governor Jim Pillen, would merge the Department of Natural Resources with the Department of Environment and Energy, and change the name to the Department of Water, Energy, and Environment.
• LB 526, introduced by Senator Mike Jacobson (North Platte), would impose an excise tax on cryptocurrency mining operations.
• LB 646, introduced by Senator Teresa Ibach (Sumner), to exempt currently registered feedlots from brand inspections and brand inspection fees.

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LB 232, introduced by Senator Hallstrom on behalf of the NBA, was heard before the Banking, Commerce, and Insurance Committee on Tuesday. Kevin Postier of Henderson State Bank testified at the committee hearing on behalf of the NBA. 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. The bill would also authorize senior citizens to designate a third party to receive notice of cancellation, nonrenewal, and conditional renewals.
 
Next week, the Appropriations Committee will hear testimony on LB 264, introduced by Speaker John Arch (LaVista) on behalf of Governor Jim Pillen, which sweeps various state agency cash funds to the General Fund to cover the projected budget shortfall of $432 million. Committee hearings are scheduled to conclude on March 28.

Committee hearings continued throughout the week, including multiple hearings going past 9:00 p.m. These included hearings to create certain exemptions to the paid sick leave ballot initiative (LB 698), ban the use of cell phones for students while in school (LB 140), tort reform (LB 79, LB 132, LB 199, LB 341, LB 205), the Opportunity Scholarships Act (LB 509), and the Stand With Women Act (LB 89). Committee hearings will continue until March 28.

A hearing was held on Monday on LB 241 in the Banking, Commerce and Insurance Committee. Senator Hallstrom introduced LB 241 on behalf of the NBA. The bill 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 ensure 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. The bill received wide support from a variety of Nebraska business industries. It advanced from committee on a vote of 7-0, with one senator present and not voting.

The NBA also testified in support of LB 609, introduced by Senator Elliot Bostar (Lincoln). 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.

The NBA's final affirmative legislative bill will be heard next Tuesday in the Banking, Commerce and Insurance Committee. LB 232 would prohibit a policy of life insurance subject to an assignment from being terminated or lapsed by reason of default in payment of any premium unless a notice of pending lapse or 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 would also allow the notice of lapse or termination to be provided electronically by the insurer to any assignee who has requested notice.