Today is day 60 of the 90-day session. The Legislature adjourned earlier this afternoon following a vote on LB 650, introduced by Senator Brad von Gillern (Omaha) at the request of Governor Jim Pillen. As amended, LB 650 would: (a) create the Community Development Assistance Act (initially filed as LB 458), which provides a tax credit to a community betterment organization that provides community assistance or community services in a community development area; (b) expand the motor vehicle tax exemption for disabled veterans to a larger class of disabled veterans; (c) reduce the cap for tax credits available under the Nebraska Advantage Rural Development Act from $2 million to $1 million for certain businesses and from $10 million to $1 million for livestock-related businesses beginning in calendar year 2026; (d) terminate tax credits available to grocers, restaurants and agricultural producers who donate to food banks; (e) terminate a tax credit available to employers for relocation expenses when hiring out-of-state employees to relocate to Nebraska; (f) terminate a tax credit available under the Nebraska Shortline Rail Modernization Act; (g) limit tax credits available under the Nebraska Biodiesel Tax Credit Act; and (h) put limitations of other tax credits and other clean-up language based on recent changes to property tax levies. 

The week started off with contentious debate on Tuesday over LB 3, introduced by senator Loren Lippincott (Central City) at the request of Governor Pillen. LB 3 would reinstate the "winner-take-all" system for awarding electoral votes in presidential races. Following a motion to invoke cloture, the measure failed on a partisan vote, with no registered Democrats voting for cloture, and two registered Republicans, Senator Merv Riepe (Ralston) and Senator Dave Wordekemper (Fremont), voting against cloture. Following this, the Legislature got back to work and advanced a number of priority bills.

The Legislature also advanced LB 474, introduced by Senator Mike Jacobson (North Platte), which, as amended, includes the key provisions of LB 232 introduced by Senator Bob Hallstrom (Syracuse), on behalf of the NBA. These provisions require any life insurance policy issued in Nebraska, on or after January 1, 2026, to provide notice of lapse or termination to any assignee of record, and that such assignee has the same legal standing as an owner of the policy. This will protect financial institutions when accepting a life insurance policy as collateral for a loan.

The Appropriations Committee continued its work, with only 10 working days remaining until the Committee is required to advance the budget to the floor. The most notable change to date is with the University of Nebraska budget. Governor Pillen recommended a 2% cut to the University of Nebraska's budget, which was preliminarily accepted by the Committee. However, on Tuesday the Committee reversed course and voted to increase the budget by 1.25% for the next fiscal year. The University of Nebraska had requested a 3.5% increase.

The Nebraska Economic Forecasting Advisory Board, which forecasts revenue projections for the state, is scheduled to meet again on April 25. This will provide the final numbers needed for completing the budget.

June 9: Day 90 of the legislative session

The Legislature wrapped up a contentious week of floor debate on Thursday afternoon. The four-day weekend will provide a much-needed break for the senators. LB 258, introduced by Senator Jane Raybould (Lincoln), was the focus on Monday and Tuesday of this week. Upon the minimum wage reaching $15.00 per hour next year, LB 258 would cap the minimum wage increase at 1.5% per year and establish a youth wage for 14- to 15-year-olds and a 90-day training wage for 16- to 19 -year-olds, unless they are emancipated. Debate quickly turned negative, including personal attacks on supporters of the bill. The Motion to Invoke Cloture passed on a vote of 33-16, and the bill advanced to Select File on a vote of 32-17, with Senator Stan Clouse (Kearney) flipping his vote to "no." Senator Raybould filed an amendment to up the increase from 1.5% to 2.5% in an attempt to garner more support.

Following the advancement of LB 258 on Tuesday evening, the Legislature returned Wednesday morning to debate LB 646, introduced by Senator Teresa Ibach (Sumner). LB 646, as introduced, would have exempted all feedlots from the Livestock Brand Act, and thus from brand inspections. This divided the agricultural industry with support and opposition closely aligned to geography. The bill advanced after adopting an amendment offered by Senator Ibach to maintain brand inspections, while capping annual feedlot registration fees at $1,000 and eliminating inspection requirements for "affiliated grow yards."

The Legislature will return on Tuesday and take up LB 3, introduced by Senator Loren Lippincott (Central City) to reinstate the "winner-take-all" system for awarding electoral votes. With just over 30 working days remaining, it appears many of the priority bills will not be heard. Speaker of the Legislature John Arch (La Vista) announced Monday that he estimates the budget and tax bills will take up to 20 days of debate.

The Judiciary Committee advanced LB 559 to General File on Wednesday. LB 559, introduced by Senator Carolyn Bosn (Lincoln), modernizes criminal statues to combat fraud. The bill defines skimmer devices and creates a new criminal offense for installation of a skimmer device. Additionally, the bill would enact a "kingpin" law for organized financial crimes. (NBA Position: Support)

A list of all designated priority bills can be found here.

The most recent General Fund Financial Status can be found here.

June 9: Day 90 of the legislative session

The Legislature adjourned at noon following contentious debate on LB 415. Debate on the bill began last Thursday and lasted for the vast majority of floor debate throughout the week. LB 415, introduced by Senator Beau Ballard (Lincoln), has been labeled the "clean-up bill" for the Nebraska Healthy Families and Workplaces Act, also known as Initiative 436 or the Paid Sick Leave Ballot Initiative. However, the Business and Labor Committee advanced LB 415 with a committee amendment that combines the bill with LB 698, introduced by Senator Paul Strommen (Sidney). As combined, the bill would do the following: (a) Exempt businesses with 10 or fewer employees from being required to comply with the Act: (b) Exempt owners, independent contractors, temporary and seasonal agricultural workers, and employees under 16 years old from accruing paid sick time, or counting towards the number of employees; (c) Provides a method for providing paid sick leave to employees who are paid by commission, mileage, or fee-for-service rather than hourly; (d) Clarifies that existing vacation time and paid time off programs could be used as sick leave under the Act; (e) Provides that employees do not begin accruing paid sick time until after 80 hours of consecutive employment rather than immediately; (f) Provides that paid sick time provided to an employee on or after January 1, 2025, and before October 1, 2025, shall be counted toward an employer's obligations under the Act for calendar year 2025; (g) Clarifies that an employer is not required to pay an employee for unused paid sick time upon the employee's separation from employment; and (h) Provides additional flexibility for employers to direct how requests for paid sick leave should be made. After a Motion to Invoke Cloture, the bill advanced to Select File on a vote of 34-15.

This week also marks the last week of committee hearings. Most committees wrapped up hearings last week, with only a handful of committees meeting this week. The Judiciary Committee was the only regular committee to still consider bills this afternoon.

All-day floor debate will begin on Monday with Senators taking up floor debate on Senator priority bills. Overall, there are 106 priority bills, which means it is unlikely that all will get heard on the floor of the Legislature.

The Nebraska Legislature adjourned yesterday to begin a four-day weekend for the Senators. This week marked the halfway point for the 109th Legislature's First Session. Next week is the final week of committee hearings, though most committees have already completed their hearings for the year. After that, the Legislature will begin all-day floor debate with the focus on bills that have received a priority designation.

Debate began Thursday on LB 415, introduced by Senator Beau Ballard (Lincoln). LB 415 has been labeled the "clean-up bill" for the Nebraska Healthy Families and Workplaces Act, also known as Initiative 426 or the Paid Sick Leave Ballot Initiative. However, the Business and Labor Committee advanced LB 415 with a committee amendment that combines the bill with LB 698, introduced by Senator Paul Strommen (Sidney). As combined, the bill would do the following: (a) exempt businesses with 10 or fewer employees from being required to comply with the Act; (b) exempt owners, independent contractors, temporary and seasonal agricultural workers, and employees under 16 years old from accruing paid sick time, or counting towards the number of employees; (c) provides a method for providing paid sick leave to employees who are paid by commission, mileage, or fee-for-service rather than hourly; (d) clarifies that existing vacation time and paid time off programs could be used as sick leave under the Act; (e) provides that employees do not begin accruing paid sick leave until after 80 hours of consecutive employment rather than immediately; (f) provides that paid sick time provided to an employee on or after January 1, 2025, and before October 1, 2025, shall be counted toward an employer's obligations under the Act for calendar year 2025; (g) clarifies that an employer is not required to pay an employee for unused paid sick time upon the employee's separation from employment; and (h) provides additional flexibility for employers to direct how requests for paid sick leave should be made. The bill is currently undergoing a filibuster, which is expected to resume on Tuesday.

The Banking, Commerce and Insurance Committee held its final hearing on Monday, which included LB 686 and LB 687.

LB 686 - Prohibit Government Entities and Officials from Keeping Certain Lists Relating to the Ownership of Firearms and Prohibit Using Merchant Category Codes to Distinguish Firearm Retailers
Introduced by Senator Dan Lonowski (Hastings), LB 686 would prohibit: (a) government entity, official, agent, or employee of a government entity or official to knowingly keep or cause to be kept any list, record, or registry of privately owned firearms or the owners of firearms, except for those records kept during the regular course of criminal investigation, prosecution, or otherwise required by law; (b) payment card network to require or incentivize the use of a merchant category code in a manner that distinguishes a firearm retailer from other retailers; and (c) the covered entity from assigning a firearm retailer, a merchant category code that distinguishes the firearm retailer from other retailers. Firearm retailer is defined as any person or entity that is engaged in the lawful selling or trading of firearms or ammunition. Merchant category code is defined as the code, approved by the International Organization for Standardization that is assigned to a retailer based on the type of goods and services offered to retailers' customers. The law would be enforced by the Attorney General, who would have the authority to seek injunctive relief and civil fines. Lastly, the bill would provide that it shall be a defense to a proceeding initiated pursuant to this bill that a merchant category code was required to be permitted or assigned by law. (NBA Position: Oppose)

LB 687 - Adopt the Firearm Industry Nondiscrimination Act
Also introduced by Senator Lonowski, LB 687 would adopt the Firearm Industry Nondiscrimination Act, which would prohibit governmental entities from entering into a contract with any company engaged in the discrimination of firearm entities for contracts of at least $100,000 that are to be paid in whole or in part by a governmental entity. Discrimination is defined as refusing to engage in business with, refraining from continuing with existing business relationship with, or terminating an existing business relationship with an entity or association based on its status as a firearm entity or Firearm Trade Association. Discrimination also would not include such a company's refusal to engage in business due to any traditional business reason that is specific to customer or potential customer and not based solely on the status as a firearm entity or Firearm Trade Association. (NBA Position: Oppose)

Nick Vrba of RVR Bank in Fremont testified on behalf of the NBA in opposition to LB 687. In his testimony, he stated: "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 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. Banks know who they should and should not lend to."

Monday will mark day 45, the halfway mark of the 90-day session. Speaker Arch set today as the deadline for all individual and committee priority bill designations. Each Senator is allowed to designate one bill as a priority bill. Additionally, each of the 14 standing committees is entitled to designate two priority bills. A full list of designated priority bills may be found here.

The Banking, Commerce and Insurance Committee designated LB 198, introduced by Senator Tony Sorrentino (Elkhorn), which would enact pharmacy benefit manager (PBM) reform, as well as LB 474, introduced by the Committee, which represents a Nebraska Department of Banking and Finance omnibus bill. The NBA anticipates that LB 232, as amended, will be included as part of the Committee package. LB 232, introduced by Senator Bob Hallstrom (Syracuse) on behalf of the NBA, as amended, would require all life insurance policies issued in Nebraska that are assigned as collateral for a loan to include a provision requiring that notice be provided to the assignee prior to lapse or termination for nonpayment of premium. It would also clarify that assignees have the same legal standing as the policy owner to enforce the notice provisions. LB 232 was advanced from the Committee on February 11 on an 8-0 vote.

Additionally, LB 241 passed on Final Reading on Thursday and was presented to Governor Jim Pillen for his signature. The bill, introduced by Senator Hallstrom on behalf of the NBA, 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.

March 14: Deadline for designation of committee and senator priority bills
March 17: Speaker priority bills announced
March 28: Last day of public hearings
March 31: Full day floor debate begins
June 9: Day 90 of the legislative session