February 2, 2026

2/4/2026

109th Legislature, 2nd Session

Committee Hearings Continue

Last week marked the first full week of committee hearings, which included multiple pieces of both important and controversial legislation. A total of 86 bills, plus a number of gubernatorial appointments, were heard in committee during the week. Three separate bills introduced by Senator Kathleen Kauth (Omaha) by far took the most time. These included LB 730 (restroom and locker room use for schools and state agencies), LB 731 (Gender Transition Malpractice Accountability Act), and LB 732 (ban of cross-sex hormones and puberty-blocking drugs for minors) each drew hundreds of testifiers. However, a number of other important bills were heard in committees and detailed below.

Thursday, January 29, marked the first day of debate on 2026 legislation. Speaker John Arch (LaVista) announced that moving forward, floor debate would focus on 2026-designated priority bills and legislation already advanced from committee. The last day for bills to be designated as individual priority bills is February 19. In addition to individual Senator priority bills, the Speaker may designate an additional 25 bills as priority bills.

Last Week's Hearings

The following bills were heard in committee last week:

LB 783 - Adoption of Uniform Assignment for Benefit of Creditors Act & Tax Exemption for Assignments
The bill enacts the Uniform Assignment for Benefit of Creditors Act, establishing detailed rules and definitions for voluntary assignments of a debtor’s assets to an assignee to satisfy creditor claims. It sets out eligibility and duties of assignees, creditor notification and claims procedures, asset management, priority of distributions, judicial oversight, and protections for parties involved. The bill also amends section 76-902 to exempt these assignments from the documentary stamp tax and provides for severability. (NBA POSITION: SUPPORT)

LB 836 - Revisions to Examination Charges and Assessments for Financial for Financial Institutions
The bill amends several sections of Nebraska law to modernize and broaden the Department of Banking and Finance's authority for levying assessments and examination costs on a wider range of financial entities, including both state-chartered and licensed/registered entities (such as mortgage lenders and money transmitters). It revises the methodology for calculating assessments, expands the basis for such assessments beyond asset size to include other measures (transaction volume, origination, servicing, etc.), and clarifies procedures for billing, proration, and penalties for nonpayment. Provisions relating to billing for examiner time are removed and replaced with broader director-set rates. The bill also expands the grounds for suspension or revocation of charters, licenses, or registrations for nonpayment. (NBA POSITION: SUPPORT)

LB 837 - Cash Transaction Rounding Requirements
This bill requires that, in most cash transactions (including cash wages), the final cent amount of the total (including taxes) be rounded either up or down to the nearest five cents, depending on the last digit of the cent value. Transactions ending in 1, 2, 6, or 7 cents may be rounded down; those ending in 3, 4, 8, or 9 cents may be rounded up. If the total is 1 or 2 cents, it must be rounded up to 5 cents. The bill exempts all non-cash payment methods from these rounding rules. (NBA POSITION: SUPPORT)

LB 838 - Protections Against Financial Exploitation of Vulnerable or Senior Adults
The bill adds the definition of 'authorized contact'—an adult designated by a vulnerable or senior adult to be contacted in emergencies or suspected exploitation. It updates references and definitions throughout the law to reflect this addition. The bill allows financial institutions to notify authorized contacts or other associated parties if exploitation is suspected and provides immunity from liability for financial institutions and authorized contacts under certain conditions. It clarifies that financial institutions are not required to implement authorized contact programs and are not liable for decisions not to interact with, or to implement, such programs absent gross negligence or willful misconduct. (NBA POSITION: SUPPORT)

LB 1067 - Nebraska Housing and Documentary Stamp Tax Reform Act
The bill increases the documentary stamp tax from $2.32 to $3.82 per $1,000 of real estate value transferred. It changes the disbursement of these funds, directing new revenues to the Rural Workforce Housing Investment Fund and the Middle Income Workforce Housing Investment Fund, in addition to existing beneficiaries. The bill also eliminates the Legislature's authority to transfer money out of the Affordable Housing Trust Fund to other specified funds. Conforming amendments are made to ensure receipt of new tax revenues by these housing funds and clarify the exclusive use of such revenues for their designated purposes. Sunset clauses are established for the Rural and Middle Income Workforce Housing Funds, after which remaining funds transfer to the General Fund. (NBA POSITION: SUPPORT)

Keep Your Eye on This

Hearings This Week
The following bills of interest will be heard in committee this week:

LB 819 - Expansion and Modification of Workplace Housing Investment Acts
The bill increases the maximum allowable construction costs for workforce housing units, extends the timeframe for competitive grant awards and fund transfers, adjusts reporting and return-of-funds deadlines, and expands the operational window for both the Rural and Middle Income Workforce Housing Investment Funds. It also clarifies requirements for nonprofit development organizations managing these funds and modifies matching fund requirements for urban workforce housing grants. (NBA POSITION: SUPPORT)

LB 835 - Reform of Secretary of State Fees, Lien Registration, and UCC Filings
The bill modernizes and standardizes the process and fees for accessing Secretary of State records, particularly those related to business entities, liens, and UCC filings. It consolidates several fee schedules, increases flexibility for electronic access, establishes new fee structures for bulk and image data, and updates procedures for the transmission and indexing of liens. Registration and access fees for master lien lists and effective financing statement systems are increased and capped, with more discretion given to the Secretary of State to set fees. The bill also removes outdated or redundant requirements and sections, streamlining statutory language and processes. (NBA POSITION: SUPPORT)

LB 1071 - Nebraska Biennial Budget and Appropriations Bill (FY 2025-26 and FY 2026-27)
This bill is a comprehensive budget and appropriations bill for the State of Nebraska for fiscal years 2025-26 and 2026-27. It defines appropriation periods, provides and adjusts funding for numerous state agencies and programs, details reappropriations, and repeals certain prior appropriations. Notable provisions include strict prohibitions on the use of appropriated funds for diversity, equity, and inclusion (DEI) programs in state government, the University of Nebraska, and Nebraska State Colleges. The bill makes significant changes to the allocation of funds for education, health and human services, corrections, economic development, and other core state functions. It also includes new and adjusted salary limits, reappropriation authorities, and specific programmatic directives. Several technical and substantive amendments update fund names, transfer amounts, and program structures. The act contains emergency and severability clauses and takes effect immediately upon passage. (NBA POSITION: WATCH)

LB 1072 - Nebraska Government Funds, Transfers, and Appropriations Act (2026)
This bill is a large omnibus measure addressing Nebraska’s state government finances. It authorizes a vast array of one-time and recurring transfers from various cash, trust, revolving, and special funds to the General Fund and other designated funds for fiscal years 2025-2027. The bill creates new funds (e.g., Medical Cannabis Regulation Fund, 988 Emergency Lifeline Cash Fund) and provides for new and amended fee assessments. Numerous funds, programs, and associated laws are terminated or repealed, with explicit directions for the disposition of remaining balances. The bill adjusts or eliminates fees, modifies fund investment earnings designations, and reassigns administrative responsibilities for certain programs. Appropriations and salary payments for some offices are redirected to specific funds. The act also makes technical and harmonizing changes across dozens of statutes and provides for emergency enactment. (NBA POSITION: OPPOSE W/ AMENDMENT)

LB 1244 - Nebraska Tax Reform and Sales/Use Tax Expansion Act
The legislation eliminates numerous sales and use tax exemptions, expands the sales tax base to include a wide array of services, and removes or narrows other tax benefits. The bill also modifies reporting and definitional requirements, clarifies the taxation of mechanical amusement devices, and accelerates the sunset for new applications under the Nebraska Job Creation and Mainstreet Revitalization Act. Several statutes are outright repealed, and the bill provides for both immediate and staged operative dates. (NBA POSITION: OPPOSE)

Bill Summary

The NBA Bill Summary will provide you with a review of every legislative bill of interest to the banking industry and the position for each bill as approved by the NBA Board of Directors.

Read Bill Summaries

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