2023 SESSION, 108TH LEGISLATURE The Legislature adjourned on Thursday afternoon for a long, four-day weekend. Lawmakers wrapped up activity for the week with four hours of Select File debate on LB 626 ("Heartbeat" bill) with a motion to invoke cloture and cease debate falling one vote short of the 33 votes needed to break the filibuster. Banking Priority Bill Advances to Final ReadingLawmakers have given second-round approval to the Banking, Commerce and Insurance Committee priority bill (LB 92), which contains the following measures supported by the NBA: LB 207 – Trust Deeds-Location Of Trustee’s Sale Senator Brad von Gillern (Omaha) is the sponsor of LB 207, which would clarify that the sale of property pursuant to a power of sale under a trust deed may be conducted on the premises, at the county courthouse, or in any public building in which one or more county offices are located within the county in which the property to be sold is situated. LB 214 - Omnibus Department of Banking Bill Introduced by Senator Julie Slama (Dunbar), LB 214 would adopt changes to federal law regarding banking and finance and change provisions relating to digital asset depositories, loan brokers, mortgage loan originators, and installment loans. The bill would also renew the annual bank and savings and loan "wild card" provisions. LB 669 – Department of Banking Conditional Orders Introduced by Senator Beau Ballard (Lincoln), LB 669 would authorize the Director of the Department of Banking to prescribe conditions for banks, trust companies, credit unions, building and loan associations, savings and loan associations, digital asset depositories, and their holding companies, if any, as part of any written order, decision or determination required to be made pursuant to the Nebraska Banking Act, Chapter 8, Article 3, the Credit Union Act, and the Nebraska Financial Innovation Act. LB 674 – Nebraska Financial Innovation Act Introduced by Senator Mike Jacobson (North Platte), LB 674 would make technical corrections to the Nebraska Financial Innovation Act regarding digital asset depositories. Rural Workforce Housing Bill AdvancesAmong seven bills contained within the Business and Labor Committee Priority Bill (LB 191) that has been advanced to Final Reading, are the provisions of LB 249, a bill supported by the NBA. Introduced by Senator Tom Briese (Albion) and designated as a Priority Bill by Senator Teresa Ibach (Sumner), LB 249 would allow a nonprofit development organization to apply for more than one grant subject to a limitation on the maximum amount of grant funds awarded to such nonprofit development organization over a two-year period to no more than $5 million. Prior to its amendment into LB 191, provisions in LB 249 to remove "anti-stacking" provisions prohibiting the mixing of certain low-income housing funds with rural workforce housing funds (removal of which was opposed by the NBA), were dropped from the bill. Provisions which would have established an additional $20 million in funding for the Rural Workforce Housing Fund were also eliminated; however, it is anticipated that the mainline budget bill will include additional funding for Rural Workforce Housing. Appropriations Committee Budget ReleasedThe Legislature's Appropriations Committee has advanced the proposed State budget that provides for an average increase in spending of 2.3% over the next two fiscal years. Governor Pillen had previously recommended spending increases of 1.5% over the same time period. Primary distinctions between the two budget proposals involve the inclusion of an additional $80 million in the Appropriations Committee budget to increase rates for providers of Medicaid services and an increase in the University of Nebraska system budget from Governor Pillen's proposed 2% to 2.5% over the biennium. Other major items contained within the budget include funds for construction of a new prison ($366 million) and to build the Perkins County Canal ($574 million). It is anticipated that the Appropriations Committee budget plan would leave $703 million for tax cuts and other uses. With the additional cost estimates for income tax and property tax relief in the combined amount of $870 million over the next two years, lawmakers may have to consider reducing spending or revising the tax relief packages to balance the State's budget. Debate on the State budget is scheduled to begin on May 3. Forecasting Board Revises Revenue ProjectionsThe Nebraska Economic Forecasting Advisory Board made relatively minor revisions to their projections of state tax revenues through June 30, 2025, when the panel convened this past Wednesday. The revenue projections upon which the state budget is determined were reduced by $80 million for the current fiscal year, while adding a total of $80 million in the next two years. The new forecast predicts revenues of $6.635 billion in the year ending June 30, followed by revenues of $6.5 billion and $6.61 billion in the following two fiscal years. 2023 SESSION, 108TH LEGISLATURE At long last, on day 63 of the 2023 Legislative Session, the Legislature passed its first bill (LB 376). According to press reports, in the last 90-day Legislative Session (2021), lawmakers had passed 57 bills by day 63 of that session. The pace of activity increased slightly during the past week as the Legislature gave final approval to four bills, including LB 77 (concealed carry handguns), and advanced five bills from General File to Select File. Priority Bill CombosThe Legislature advanced the first of the mega "Christmas tree" Committee priority bills on Monday, which consisted of two of the bills designated as priorities by the Health and Human Services (HHS) Committee. The combined HHS priority bills ultimately consisted of 11 separate bills. The combined Banking, Commerce and Insurance Committee priority bills were also considered and advanced from General File to Select File in floor action on Tuesday. In addition to the 13 separate bills incorporated into LB 92, four separate bills were added to the package by way of floor amendments. The bill, advancing to Select File, contained the following measures supported by the NBA: LB 207 – Trust Deeds-Location Of Trustee’s Sale Senator Brad von Gillern (Omaha) is the sponsor of LB 207, which would clarify that the sale of property pursuant to a power of sale under a trust deed may be conducted on the premises, at the county courthouse, or in any public building in which one or more county offices are located within the county in which the property to be sold is situated. LB 214 - Omnibus Department of Banking Bill Introduced by Senator Julie Slama (Dunbar), LB 214 would adopt changes to federal law regarding banking and finance and change provisions relating to digital asset depositories, loan brokers, mortgage loan originators, and installment loans. The bill would also renew the annual bank and savings and loan "wild card" provisions. LB 669 – Department of Banking Conditional Orders Introduced by Senator Beau Ballard (Lincoln), LB 669 would authorize the Director of the Department of Banking to prescribe conditions for banks, trust companies, credit unions, building and loan associations, savings and loan associations, digital asset depositories, and their holding companies, if any, as part of any written order, decision or determination required to be made pursuant to the Nebraska Banking Act, Chapter 8, Article 3, the Credit Union Act, and the Nebraska Financial Innovation Act. LB 674 – Nebraska Financial Innovation Act Introduced by Senator Mike Jacobson (North Platte), LB 674 would make technical corrections to the Nebraska Financial Innovation Act regarding digital asset depositories. LB 92 has already resurfaced on the legislative agenda and could receive Select File consideration as early as next Tuesday. Rural Workforce Housing Bill AdvancesAmong seven bills contained within the Business and Labor Committee Priority Bill were the provisions of LB 249, a bill supported by the NBA. Introduced by Senator Tom Briese (Albion) and designated as a Priority Bill by Senator Teresa Ibach (Sumner), LB 249 would allow a nonprofit development organization to apply for more than one grant subject to a limitation on the maximum amount of grant funds awarded to such nonprofit development organization over a two-year period to no more than $5 million. Prior to its amendment into LB 191, provisions in LB 249 to remove "anti-stacking" provisions prohibiting the mixing of certain low-income housing funds with rural workforce housing funds (removal of which was opposed by the NBA), were dropped from the bill. Provisions which would have established an additional $20 million in funding for the Rural Workforce Housing Fund were also eliminated; however, it is anticipated that the mainline budget bill will include additional funding for Rural Workforce Housing. Moser Elected Transportation ChairWith the resignation of Senator Suzanne Geist (Lincoln), the position of the Chair of the Transportation and Telecommunication Committee was vacated. Lawmakers have elected Senator Mike Moser (Columbus) as chair of the Committee for the balance of the biennium. Senator Geist's departure also opened up a position on the Executive Board and left her committee assignments on the Transportation and Telecommunication and Judiciary Committees to be filled. Senator Beau Ballard (Lincoln) has been appointed to fill the position on the Executive Board, and newly appointed Senator Carolyn Bosn (Lincoln) will serve on the Transportation and Telecommunications and Judiciary Committees.
2023 SESSION, 108TH LEGISLATURE The Legislature passed the 60-day mark this week and no bills have yet to receive final approval. Lawmakers spent the majority of the week addressing back-to-back-to-back contentious issues, having to invoke cloture in each case to move LB 574 (restrictions on transgender surgery for minors); LB 626 (“heartbeat” abortion bill); and LB 753 (tax credits for private school scholarships) to the next round of debate. Christmas in AprilAs the week drew to a close, the Legislature commenced debate on the first of the mega, “Christmas Tree” Committee priority bills. The Health and Human Services Committee, chaired by Senator Ben Hansen (Blair), has designated LB 227, containing five separate bills, as one of its two Committee priorities. Under an amendment presented on Friday morning, the second Health and Human Services Committee priority bill (LB 181), containing an additional six bills was proposed for adoption. As previously reported, in an effort to address the ongoing filibuster efforts, these types of packages are expected to become routine. The Revenue Committee has already advanced a Committee priority bill containing, in part, the following measures supported by the NBA: LB 207 – Trust Deeds-Location Of Trustee’s Sale Senator Brad von Gillern (Omaha) is the sponsor of LB 207, which would clarify that the sale of property pursuant to a power of sale under a trust deed may be conducted on the premises, at the county courthouse, or in any public building in which county offices are located within the county in which the property to be sold is situated. LB 214 - Omnibus Department Of Banking Bill Introduced by Senator Julie Slama (Dunbar) LB 214 would adopt changes to federal law regarding banking and finance and change provisions relating to digital asset depositories, loan brokers, mortgage loan originators, and installment loans. The bill would also renew the annual bank and savings and loan “wild-card” provisions. LB 669 – Department Of Banking Conditional Orders Introduced by Senator Beau Ballard (Lincoln), LB 669 would authorize the Director of the Department of Banking to prescribe conditions for banks, trust companies, credit unions, building and loan associations, savings and loan associations, digital asset depositories, and their holding companies, if any, as part of any written order, decision or determination required to be made pursuant to the Nebraska Banking Act, Chapter 8, Article 3, the Credit Union Act, and the Nebraska Financial Innovation Act. LB 674 – Nebraska Financial Innovation Act Introduced by Senator Mike Jacobson (North Platte), LB 674 would make technical corrections to the Nebraska Financial Innovation Act regarding digital asset depositories. North/South Omaha Recovery Act AdvancesIn an unusual turn of events, the Legislature moved quickly through four bills designated as Speaker’s “Super Priority” measures on Tuesday. The Speaker’s “Super Priority” measures included two appropriations measures authorizing payment of salaries of legislators and constitutional officers, a bill relating to payment of claims by the state and a bill for judge’s salaries. The respite from continuing filibusters appears to be designed to allow for prompt action on LB 531, a bill supported by the NBA, a bill introduced by Senator Terrell McKinney (Omaha) and designated as a priority bill by the Urban Affairs Committee, which would provide funding for grants to multiple proposals seeking to revitalize parts of North and South Omaha. 2023 SESSION, 108TH LEGISLATURE With almost two-thirds of the Legislative Session complete, lawmakers adjourned early Thursday afternoon for the long, four-day Easter holiday weekend. When lawmakers return next Tuesday, they will begin debate on budget bills to appropriate funds for the salaries for members of the Legislature and constitutional officers, along with two bills (LB 282 - payment of claims against the state; and LB 799 - changes judges' salaries) that have been designated as Speaker's Major Proposals. Pursuant to the rules of the Legislature, the Speaker is authorized, with the approval of two-thirds of the Executive Board, to designate up to five bills or resolutions proposing to amend the Constitution as Major Proposals. The Speaker is further authorized to determine the scheduling of Major Proposals and the order in which amendments and motions will be considered. Governor Appoints New SenatorThe Legislature was surprised mid-week with the announcement that Senator Suzanne Geist (Lincoln), a candidate for mayor of the city of Lincoln, was resigning from the Legislature to concentrate on her mayoral campaign. Governor Pillen moved promptly in appointing Carolyn Bosn to serve as the new state senator from Legislative District 25. Senator Bosn, who will complete the remainder of Senator Geist's term, is a native of Columbus, Nebraska. She earned a Bachelor of Arts in Political Science from Baylor University and a law degree from Creighton University. Senator Bosn has previously worked in county attorneys' offices in a number of counties, handling cases relating to juvenile law offences, child neglect and abuse, domestic assaults and narcotics. Property Tax Relief Measure Moves OnThe Legislature has adopted a package of property tax relief proposals and advanced LB 243 to Select File on a vote of 41-1. Introduced by Senator Tom Briese (Albion), LB 243 would provide for the minimum amount of relief under the Property Tax Credit Act for 2024 and each year thereafter, and a percentage increase equal to the percentage increase, if any, in the total assessed value of all real property in the state from the prior year to the current year. Following adoption of Committee amendments, the bill would increase annual property tax credits provided to taxpayers from the current level of $315 million in 2023 to $38 million in 2024 and, ultimately, raise the annual property tax credit amount to $560 million by 2029. Other property tax relief measures incorporated into LB 243 include: LB 589 - School District Property Tax Limitation Act Introduced by Senator Briese, LB 589 would prohibit a school district from making a property tax request for any year in excess of 3% more than its property tax request in the prior year, or the percentage increase in the Consumer Price Index, except with approval of the majority of its school board or by a 60% majority of the registered voters in a Primary, General or Special Election. (NBA Position: Support) LB 242 - Nebraska Property Tax Incentive Act Also introduced by Senator Briese, LB 242 would eliminate the 5% cap on the amount of income tax credits provided for property taxes paid and replace it with limitations based on teh total increase in statewide property tax valuations. (NBA Position: Support) LB 783 - Eliminate the Levy Authority of Community College Areas Introduced by Senator Dave Murman (Glenvil), LB 783 would remove property taxes as a source of funding for the state community colleges, shifting approximately $200 million in property taxes annually to the state sales and income taxes. (NBA Position: Watch) Public Education Funding Proposal AdvancesLawmakers have given first-round approval to a bill (LB 583), introduced by Senator Rita Sanders (Bellevue) on behalf of Governor Pillen, that would direct additional state funding to K-12 public schools. Under LB 583, the state would provide $1,500 in foundation aid per student for public school districts, beginning with school fiscal year 2023-2024. The bill would also increase state aid to school districts to provide 80% of the school district's special education funding needs when combined with federal funding. Under an amendment adopted by the Legislature, a portion of the foundation aid and the supplemental education allowances would be paid from a new Education Future Fund to be created by LB 681, sponsored by Senator Robert Clements (Elmwood) on behalf of Governor Pillen. The Legislature was once again required to approve a motion to invoke cloture to end debate and vote on advancement of the bill, which was ultimately advanced to Select File on a vote of 39-3. The Session AheadWith filibusters being encountered on every bill considered by the Legislature, efforts to amend separate bills into priority bills being debated are increasing. With the total number of priority bills expected to receive consideration this session diminishing with every passing day, it appears that an attitude of "combine and conquer" is going to take place.
Speaker of the Legislature John Arch (La Vista) has suggested that Standing Committees will likely, at best, be able to have only one of their two Committee priorities considered on the floor of the Legislature. In response to this announcement, a number of Committees are combining the bills contained within their two separate priority bills into a single priority bill and are considering adding additional non-controversial measures to the resulting priority bill. For example, the Revenue Committee has incorporated the provisions of 20 tax-related bills into LB 727, previously designated as a Committee Priority Bill, and has advanced the bill to General File. The Banking, Commerce and Insurance Committee is expected to follow suit with an amendment to LB 92, one of the Committee Priority Bills, which may incorporate as many as 20 separate banking-related measures. |
Past Legislative Updates
August 2024
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