February 9, 2026

109th Legislature, 2nd Session

New Financial Institution Data Match Law

In 2024, Senator Brad von Gillern (Omaha) introduced legislation that was amended into LB 1317 and passed in the Nebraska Legislature. For more than 30 years, financial institutions have been required to conduct the "data match" process for delinquent child support obligors. The Nebraska Department of Revenue sought to do the same for delinquent taxpayers.

The list of delinquent taxpayers is extremely minor compared to the list of child support obligors. The legislation has now gone into effect. The difference between the two programs is that the child support program is administered by the Nebraska Department of Health and Human Services, and the taxpayer program is administered by the Nebraska Department of Revenue. However, both departments are using the same vendor, Informatix, Inc. Although the same vendor is being used, a new agreement is required because it is for a different state agency.

It is our expectation that the addition of the new obligation for data matching for delinquent taxpayers should be a minimal additional impact on your bank(s). Should duplicative workloads or undue burdens arise, please contact the NBA as soon as possible to informally resolve these issues, or, if necessary, seek legislation to make corrections.

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NBA Fraud Bills Set for Hearings
Three of the NBA's bills that make up the Fraud Free Nebraska Coalition's legislative agenda will be heard in Committee. The NBA has lined up national experts to testify on each of the bills, as well as bankers who are working on the front lines to combat fraud in Nebraska. The NBA continues to work with industry partners to protect Nebraskans from the growing threat of fraud. The bills that will be heard include:
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LB 785 - Criminalization of Unlawful Possession or Use of Mail Receptacle Keys/Locks and Related Code Harmonization
The legislation creates a new offense making it a Class IV felony to obtain, possess, duplicate, transfer or use a key or lock intended for mail receptacles (including those used by the USPS and commercial couriers) with the intent to defraud or deprive another of property. it updates several sections of the Nebraska Criminal Code to reference this new offense, ensuring that relevant penalties and forfeiture procedures are applicable. Definitions and procedural sections regarding criminal enterprise and property forfeiture are also amended to include the new offense. (NBA Position: Support)

LB 1082 - Expansion of Duties for Telecommunications Companies Regarding Unwanted Calls and Caller ID Fraud
The bill expands the Nebraska Telecommunications Regulation Act by adding a new definition for the North American Numbering Plan and assigning telecommunications companies the duty to safeguard customers from unwanted calls or texts from users of unauthenticated numbers and from fraudulent or misleading caller ID information. It modifies references within the Act to include these new sections and repeals the original versions of the amended statutes. (NBA Position: Support)

LB 1118 - Deceptive Trade Practices Act: Regulation of Social Media Advertising and Fraud
​The bill expands the definition of deceptive trade practices to include specific requirements for social media platforms that accept payment or compensation for advertising. Platforms must implement identity verification for advertisers, fraud and impersonation detection systems and provide user tools to report suspected fraud. There are new obligations for prompt investigation and removal of fraudulent ads, as well as notification to law enforcement. The bill defines key terms and enumerates platforms that are excluded from these provisions. (NBA Position: Support)

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Contentious Floor Debate

Last week featured contentious floor debate on several issues. First, the 109th Legislature (Second Session) passed its first bill, LB 258, introduced by Senator Jane Raybould (Lincoln). Pursuant to the 2022 ballot initiative, minimum wage in Nebraska increased annually from $9.00 per hour all the way to $15.00 per hour on January 1, 2026. LB 258 created a youth and training wage of $13.50 per hour. It also caps annual increases to 1.75% per year, instead of increasing pursuant to the Consumer Price Index. Due to procedural irregularities, the bill was not passed last year. Senator Paul Strommen (Sidney) prioritized the bill on Tuesday, and Speaker John Arch (La Vista) scheduled it for Final Reading on Thursday. The bill faced a filibuster and passed with a zero-vote margin of 33-16.

The Legislature also spent several days debating LB 538, introduced by Senator Brian Hardin (Gering). LB 538 would require school boards and postsecondary educational institutions to adopt a policy and provide training related to discrimination and antisemitism. After a multi-day filibuster, Speaker Arch passed over the bill following allegations by Senator Megan Hunt (Omaha) that Senator Hardin made inappropriate comments directed at her in private conversation.

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Revenue and Spending

The Appropriations Committee has released its preliminary budget. The Governor's mid-biennium proposal to close the current $471 million budget shortfall relies heavily on substantial cash fund transfers, constrained agency spending and a limited number of revenue-generating measures. In contrast, the Appropriations Committee's initial framework reflects a more measured strategy. Their preliminary budget would reduce the mid-biennium deficit to $344 million while relying less on one-time cash transfers. Over the next five weeks, the Appropriations Committees will balance these competing demands before advancing a final budget recommendation to the full Legislature by Day 40.

On the revenue front, last week the Revenue Committee heard LB 1244, introduced by Senator Dave Murman (Glenvil) at the request of Governor Pillen. The bill would add dozens of new sales taxes on services and eliminate a number of exemptions for sales taxes on products. The bill was met with significant opposition at the hearing. LB 1244 would expand the sales tax base to include a wide range of services while eliminating additional exemptions. Senator Murman also introduced AM1964, which would redirect the estimated $120 million in new revenue generated by LB 1244 to the Tier 2 property tax credit rather than the General Fund. The five-hour hearing featured extensive testimony from the business community, with concerns centered on tax pyramiding, competitiveness for service-based industries, cross-border economic impacts, and the downstream effects on consumers and small businesses. LB 1109, introduced by Senator Brad von Gillern (Omaha), was also heard by the Revenue Committee. LB 1109 takes a more measured approach, eliminating only a handful of sales tax exemptions and phasing out our adjusting certain tax credits.

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Hearings This Week

The following bills will be heard in committee this week:

LB 938 - Nebraska First-Time Home Buyer Savings Account Act
The bill creates a new class of savings accounts called First-Time Home Buyer Savings Accounts, which allow Nebraska residents to save for a down payment and closing costs for a first home. Contributions (up to $5,000 for individuals/$10,000 for joint filers per year; $25,000/$50,000 lifetime) and account earnings can be deducted from state taxable income starting in tax year 2027. The bill outlines eligibility, qualified uses, reporting, limitations, penalties for non-qualified withdrawals, and financial institution responsibilities. It amends Section 77-2716 to add and define related tax deductions and recapture rules. (NBA Position: Support)

LB 1089 - Nebraska Healthy Families and Workplaces Act Enforcement Amendments
The bill modifies section 48-3808 to expand enforcement options for violations of the Nebraska Healthy Families and Workplaces Act. It explicitly allows employees to file lawsuits for legal and equitable relief if their rights are violated, entitling prevailing employees to full judgement and attorney's fees. The bill also stipulates that relevant citations issued to employers may be admitted as evidence in such lawsuits, unless excluded by the court. Such civil actions must be filed within one year of the alleged violation. Existing administrative penalty and citation procedures remain in place. (NBA Position: Oppose)

LB 1249 - Amendments to the Nebraska Healthy Families and Workplaces Act
The bill revises the Nebraska Healthy Families and Workplaces Act by expanding employer exemptions, narrowing employee eligibility, modifying paid sick time carryover rules, and streamlining notice requirements. Notably, the bill excludes additional employee and employer categories, clarifies sick time carryover limits, and eliminates outdated provisions regarding initial notice deadlines and compliant procedures. (NBA Position: Support)