2024 Special Session Special Session Convenes, Bill Introduction BeginsThe Nebraska Legislature convened at 10:00 a.m. on July 25 to kick off the 2024 Special Session to address property tax relief. Governor Jim Pillen issued his proclamation on Wednesday afternoon outlining topics that should be addressed during the special session. Speaker John Arch (LaVista) initially planned to hold bill introduction from Thursday, July 25, to Saturday, July 27, pursuant to Legislative Rules that require bill introduction occur during the first three days of a special session. However, due to the large number of bill requests pending at Bill Drafters, Speaker Arch announced Friday afternoon that the last day of bill introductions will now occur on Monday, July 29, instead of July 27. Meanwhile, the Revenue Committee still plans to begin committee hearings Monday morning. Thus far, 35 bills and six Constitutional Amendments have been introduced. The NBA Board of Directors and Government Relations Committee will hold a joint meeting on the morning of Monday, July 29, to discuss and formulate a position on LB 1. Introduced by Senator Lou Ann Linehan (Elkhorn) on behalf of Governor Pillen, LB 1 represents the major portion of Governor Pillen’s tax plan to cut property taxes by more than $2 billion, funded by $400 million in spending reductions, retooling the $910 million in existing tax relief programs and eliminating numerous sales tax exemptions. LB 1, as introduced, would accomplish the following: (1) Adopts the Property Tax Growth Limitation Act to cap local government (counties, cities and villages) property tax requests by the greater of CPI or 0%; provides exceptions for real growth, personnel costs for public safety or public health, or by a vote of the people at a regularly scheduled election. (2) Adopts the School District Property Tax Relief Act to create a property tax credit payable directly to schools in the amount of $2.33 billion in 2025 and increasing each year thereafter. (3) Implements the Advertising Services Tax Act, implementing a 7.5% tax on the gross advertising revenues for those entities with a combined gross advertising revenue in excess of $1 billion. (4) Implements new taxes on services and eliminates exemptions for more than 100 products and services including legal services, accounting services, lobbying services, real estate agents and appraisers, investment advice, travel agency services, real property maintenance, loan broker services, tax return preparation, marketing and telemarketing services, information, data processing, mainframe computer access and processing, and other cloud-based and data storage, processing and co-location services, including core banking and related software services at banks. (5) Increases “sin taxes” on spirits, cigarettes, games of skill and consumable hemp products. (6) Retroactively to January 1, 2024, eliminates proration of income for shareholders of S-corporations. (7) States an intent to reformulate school funding to lower property taxes in the future. A hearing date has not been set for LB 1. More information regarding the other measures introduced thus far in the 2024 Special Session will be reviewed during Monday’s membership Zoom call. Special Session Legislative Review MondayA special session legislative review will be held via Zoom Monday, July 29, at 3:30 p.m. CDT. Register at the link below to hear the NBA team’s thoughts on the special session. Register 2024 Special Session Special Session to Address Property Tax ReliefGovernor Jim Pillen has announced his intention to call the Legislature back for a special session to address property tax relief. The 2024 Special Session is expected to begin on Thursday, July 25. According to a memorandum from Speaker of the Legislature John Arch (La Vista), the first three days (July 25-27) will be used for bill introduction. Hearings on bills introduced are expected to occur Monday, July 29. During the special session, senators can introduce their own legislative proposals, assuming they fall within the parameters outlined in the Governor's call for the special session. Although there is a lot of uncertainty in the details, Governor Pillen has released some specifics of his plan. The plan includes:
Due to time constraints, the NBA Board of Directors and Government Relations Committee are scheduled to have a joint meeting on Monday, July 29, to review the proposals introduced and determine the NBA's position. Sign Up for the Special Session Legislative ReviewThe NBA Government Relations team plans to offer a special session legislative review via Zoom on Monday, July 29, at 3:30 p.m. CDT. Your NBA team will continue to keep you up to date as the 2024 Special Session progresses.
Register NBA Legislative Update: Wrap-Up EditionThe second session of the 108th Nebraska Legislature is now history, as the Legislature adjourned sine die on April 18, 2024. As always, the Legislature dealt with a number of contentious issues in the waning days of the session. In contrast to the 2023 session, most of the 2024 session was focused on taxation and spending issues, rather than social issues. The next regular session is scheduled to convene in early January 2025. However, in his farewell remarks, Speaker John Arch of LaVista referenced the famous pop song in telling his fellow senators that it’s not goodbye but see you later. This was in reference to Governor Jim Pillen’s promise of a special session to deal with property tax relief.
The final days of the session were spent, in large part, debating LB 388, which would have provided “front-loading” of existing property tax credits and spending caps on cities, villages, and counties. LB 388 would also have eliminated sales tax exemptions for soda, candy, and veterinary and pet services, and added new taxes on edible hemp products, vaping products, skill games, and advertising. The bill was pulled from the agenda on the last day of the session just before proceeding to vote after facing heavy opposition from many business associations. As a result, Governor Pillen has publicly announced his intention to call a special session. Also of note, 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. Senator Fred Meyer (St. Paul) and Senator Julie Slama (Dunbar) have decided not to run for reelection. Elections this year will include 25 of the 49 seats, with 15 of those being open with no incumbent running. However, given Governor Pillen’s comments, the service of these Senators is likely not over yet. Over 149 bills, amendments to those bills and amendments to other proposals were actively monitored by the NBA this session. We have summarized only the major bills of direct interest to the banking industry, according to subject. Other non-banking legislative measures were disposed of early in the session and were previously covered in the weekly NBA Legislative Update narratives or Bill Summary emails. During this session, the NBA enjoyed great success with five out of six of the bills on the NBA’s Affirmative Legislative agenda being enacted into law. Additionally, many other bills supported by the NBA were passed by the Legislature. Even more significantly, the Legislature took no final action on any of the bills on which the NBA had established a position of opposition and have been indefinitely postponed (IPP). The success of this session is in large part attributable to the excellent grassroots support provided by Nebraska bankers. When called upon to make contacts with legislators, Nebraska bankers responded promptly and effectively in communicating the NBA’s position on issues of importance to the banking industry. Thank you to each and every Nebraska banker who took time to visit with their state senator during the 2024 Legislative Session. The NBA has worked hard to defeat opposition which attempts to turn banking issues into social issues. Out-of-state groups attempted to derail updates to UCC Articles 9 and 12 contained in LB 94. The NBA Government Relations team worked with the Uniform Law Commissioners to respond to the The NBA has worked hard to defeat opposition which attempts to turn banking issues into social issues. Out-of-state groups attempted to derail updates to UCC Articles 9 and 12 contained in LB 94. The NBA Government Relations team worked with the Uniform Law Commissioners to respond to the misinformation and pass the necessary updates. Additionally, this biennium saw the introduction of four “anti-ESG” bills targeting the banking industry (LB 67, LB 730, LB 743, and LB 925). The NBA was successful in defeating each of these proposals and will continue to lead the charge to preserve the free-market approach that has given our nation the strongest and most resilient financial industry in the world. Nebraska banks should be free to lend to or not lend to any entity, provided they do not violate statutory, regulatory, fair lending or other anti-discrimination laws. As part of this effort, the NBA has continued to engage and educate Senators and worked with other key stakeholders. The NBA worked with the Platte Institute to publish the first “Voices of Industry” column. Kelly Trambly, South Central State Bank, Campbell, authored the inaugural article, which discusses anti-ESG policies in banking. The article can be found here. Members of the NBA Government Relations Committee spent many hours reviewing potential legislation for introduction on behalf of the NBA and analyzed other legislation introduced throughout the session. The Committee makes recommendations regarding legislation to be introduced on behalf of the NBA and positions to be established by the NBA on legislation of interest. These recommendations are forwarded to the NBA Board of Directors for final action. A special thanks to Krista Prinz, Citizens State Bank, Wisner, who served as Chair of the NBA Government Relations Committee this year, along with all of the members of the Government Relations Committee for their efforts on behalf of the banking industry. A listing of the 2023-2024 members of the Committee is included in this NBA Legislative Update Wrap-Up edition. If you have any questions regarding any of the bills highlighted below, please feel free to contact the NBA. This NBA Legislative Update Wrap-Up Edition has been prepared as a summary and it does not necessarily constitute a complete or definitive analysis of each bill discussed. The NBA staff is prepared to provide you with further information or to send you copies of bills in which you are interested. 108th Legislature, Second Session Lawmakers returned on Thursday, April 18, for the final day of the 60-day session. The agenda included only eight bills. However, several of the bills were viewed as some of the most controversial measures taken up during the session. This included heated debate on sales and property tax measures (LB 388), an increase in the Nebraska Documentary Stamp Tax (LB 1363) and direct appropriations from the State of Nebraska to fund scholarships for students attending private schools (LB 1402). Governor Pillen did not veto any of the more than 100 bills advanced last week. In a shock to many, LB 388 was pulled from the agenda, thereby killing the bill. LB 388 was introduced by Senator Lou Ann Linehan (Elkhorn) and represented Governor Pillen's property tax plan. The bill was met with strong opposition from a very broad coalition and was the subject of a newspaper, radio, television and text message campaign over the last seven days. Senator Julie Slama (Dunbar) and Senator Danielle Conrad (Lincoln) led the filibuster against the bill. Included in LB 388 were the following provisions:
Also included was a 3% cap on revenue growth for cities, villages and counties. An amendment was adopted to include exceptions to increase salaries to address shortages for law enforcement and first responders. At the conclusion of the regular agenda, Governor Pillen addressed the Legislature in his farewell remarks. Although he began by applauding the many achievements of the 108th Legislature, he soon made clear his disappointment in the body's failure to advance LB 388. Governor Pillen referred to adjournment sine die as "halftime" and vowed to call a special session to address property taxes. The Legislature also advanced LB 1402, which was introduced by Senator Linehan. LB 1402 would appropriate $10 million annually to be used for scholarships for K-12 students attending private schools. This measure could nullify the ballot referendum for LB 753 set for the November general election. LB 753, known as the "Opportunity Scholarship Act," passed last year and provides an income tax credit for donating to scholarship-granting organizations. The measure advanced on a 32-15 vote. Opponents have vowed a legal challenge or another petition drive to force a referendum on the bill. 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. Senator Fred Meyer (St. Paul) and Senator Slama have decided not to run for reelection. Elections this year will include 25 of the 49 seats, with 15 of those being open with no incumbent running. However, given Governor Pillen's comments, the service of these Senators is likely not over yet. Sign Up for the Final Legislative ReviewThe final NBA Government Relations team legislative review is Monday, April 22, at 9:00 a.m. CT. Register for a review of legislation processed this session and how the bills may affect the banking industry. Additionally, the NBA government relations team will provide information and facts regarding the EPIC tax ballot initiative. 108th Legislature, Second Session The Nebraska Legislature completed day 59 of the 60-day session on Thursday. The week ended with just over 100 bills on Final Reading being considered and approved by the Legislature. This capped off three weeks of late-night sessions often mired in filibusters. Senators will reconvene on Thursday, April 18, for the final day of the session. Senators will take up a handful of bills still left on Final Reading. Governor Pillen will have until Wednesday, April 17, to veto any bill that passed on Thursday. This will allow the Legislature to take up any motions to override any veto issued by Governor Pillen. Much of the most significant legislation taken up this session still awaits Final Reading consideration next week. This includes part of the Governor's tax package (LB 388), updates to the Nebraska Good Life Transformational Projects Act (LB 1317), and a bill that would provide direct appropriations for scholarships (LB 1402), which would also nullify the ballot initiative recall of the Opportunity Scholarships Act passed during the 2023 session. Legislature Advances Tax PackageAfter significant debate and paring down from the previous package, senators advanced LB 388 on a vote of 28 to 14, with five senators present not voting. Following several attempts to strip out various provisions, the bill limped forward to Final Reading. Teh bill, as advanced, includes the following measures:
Also included is a 3% cap on revenue growth for cities, villages and counties. An amendment was adopted to include exceptions to increase salaries to address shortages for law enforcement and first responders. NBA-Supported Bills Passed on Final ReadingLB 1023 - Adopt the Relocation Incentive Act Introduced by Senator Brad von Gillern (Omaha), LB 1023 includes the Relocation Incentive Act initially introduced by Senator Beau Ballard (Lincoln). The bill provides a tax credit for employers who pay relocation expenses for an employee who relocates to the State of Nebraska. The original bill would allow entities to claim the credit on their corporate income tax returns. Senator Ballard and Senator von Gillern worked with the NBA to ensure banks and insurance companies could also claim the tax credit. LB 1073 - Third-Party Administrators of Insurers On-Site Audits Introduced by Senator Julie Slama (Dunbar), LB 1073 was amended to include the following bills which are supported by the NBA. The bills that were incorporated into LB 1073 are as follows: LB 873, 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 $1,500 of the amount of funds that need not be available for disbursement from good funds. 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 a 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. 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 1074 - Omnibus Department of Banking Bill Also introduced by Senator Slama, LB 1074 would, among other things, renew the annual bank and savings and loan "wild-card" provisions. The bills that were incorporated into LB 1074 are as follows: 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. (NBA Position: Affirmative Legislation) LB 1122 - Misleading Advertisements/Solicitations Senator Ballard 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. (NBA Position: Affirmative Legislation) LB 1176 - Public Entities Pooled Investment Act Introduced by Senator George Dungan (Lincoln), LB 1176 would establish investment priorities, customer disclosures and restrictions on investments for political subdivision investment pools. As amended by the Committee prior to advancing, 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 at the time of purchase. In addition, the bill would limit investments in commercial paper by a political subdivision investment pool to no more than 50% of the total funds eligible for investment at the time of purchase and to no more than 5% of the total funds available for investment in commercial paper of a single issuer. (NBA Position: Affirmative Legislation) NBA Bills of InterestLB 1301 - Foreign-Owned Real Estate National Security Act Introduced by Senator Barry DeKay (Niobrara), LB 1301 updates the Foreign-Owned Real Estate National Security Act. The bill strengthens protections for ownership of land with close proximity to military installations. Senator DeKay worked closely with the NBA to ensure financial institutions holding mortgages or deeds of trust are protected if foreign entities are required to divest their ownership. Sign Up for Virtual Legislative Reviews During the Legislative SessionThe next NBA Government Relations team virtual Legislative Update is Monday, April 22, at 9:00 a.m. CT. Register for the final overview of legislation introduced this legislative session that may affect the banking industry. Additionally, the NBA government relations team will provide information regarding the EPIC tax ballot initiative. |
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