February 23, 2026

​109th Legislature, 2nd Session

Floor Debate Continues as Hearings Wind Down

Today is day 31 of the 60-day session of the Nebraska Legislature, which is now officially one-half complete. This week marks two notable finals. First, it is the last five-day work week for the remainder of the session. Second, it is the final week of committee hearings. Next Tuesday, the Legislature will begin all day floor debate. 

The biggest news of last week is the designation of committee and personal priority bills. Lawmakers scrambled as designations were due at noon last Thursday. A list of all priority bills can be found here. Moving forward, debate on substantive or controversial issues will likely be limited to these bills.

Last week we reported the Nebraska Legislature received encouraging short-term revenue news as January state tax collections came in $37 million above projections. However, a more than $400 million budget shortfall still looms as the Appropriations Committee is crafting the biennial budget bill. It is due to the floor by March 9th – day 40. There is a lot of uncertainty in the meantime as the Revenue Committee also wrestles with tax bills to generate additional revenue.

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Last Week's Hearings

The following bills were heard in committee last week:

LB 1258 - Nebraska Livestock Brand and Inspection System Overhaul
The bill fundamentally restructures Nebraska's livestock brand and inspection system, dissolving the Nebraska Brand Committee and transferring all its powers, duties and personnel to a new division in the Department of Agriculture. It establishes voluntary, statewide brand inspections for a fee, creates a new position of 'brand recorder,' and revises how brands are registered, inspected and transferred. Many administrative, procedural and enforcement sections are amended or repealed, and appropriations and contracts of the former Brand Committee are transferred to the new division. The bill also updates related references in law regarding state personnel, undercover license plates and open meetings. (NBA Position: Oppose)
 
LB 1139 - Changes to Liens from Child Support Orders in Nebraska
The bill clarifies and restructures the legal treatment of liens resulting from child support and spousal support orders. It specifies when such liens attach to property and when they are extinguished, introduces a new process for releasing liens when support payments are current, and refines evidentiary standards for demonstrating current payments. These changes aim to streamline the transfer of property and clarify the rights of judgment creditors and debtors. (NBA Position: Support)
 
LB 969 - Creation of Public Financial Databases for Nebraska Counties and Municipalities
This bill mandates that the Nebraska Auditor of Public Accounts develop, maintain and publicly share online databases containing detailed financial data for all counties and municipalities in the state. The information must include revenue sources, expenditures and balance sheets from the most recent audit reports, with historical data going back to 2016 where available. All relevant entities must submit their financial data annually, and the Auditor must update the database within 30 days of receipt. The bill exempts disclosure of confidential or non-public record information and sets an implementation deadline of January 1, 2027. (NBA Position: Support)
 
LB 851 - Changes to Nebraska Income Taxation for S-Corporation and LLC Income
The bill modifies the treatment of income or loss from S-corporations and LLCs for Nebraska residents. For tax years before January 1, 2026, only Nebraska-source income or loss from these entities is included in Nebraska taxable income. For tax years beginning on or after January 1, 2026, residents must include their full federal share of S-corporation or LLC income in Nebraska taxable income, regardless of source. The bill also updates statutory language to reflect this change. Other provisions regarding the filing requirements and the apportionment of income for nonresidents and members of unitary groups remain unchanged. (NBA Position: Watch)

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