March 10, 2023

2023 SESSION, 108TH LEGISLATURE

After breaking a filibuster late last week to advance LB 77 (constitutional concealed carry handguns) to Select File, lawmakers dove headlong into another filibuster on LB 753, the Opportunity Scholarships Act, which would provide tax credits for money donated to organizations providing scholarships to students attending private and parochial schools. LB 753 was advanced to Select File after a motion for cloture received the minimum 33 votes required for adoption.

Thursday marked the deadline for submitting requests for the Speaker to designate bills as Priority bills. Individual Senator and Committee Priority bills must be designated by March 14, with the 25 Speaker Priority bills, 49 Individual Senator Priority bills and 30 Committee Priority bills expected to dominate the balance of the legislative session.

Banking Committee Priority Bill Surfaces on Agenda

It is anticipated that one of the bills (LB 214) designated as a priority by the Banking, Commerce and Insurance Committee will be debated on the floor of the legislature next week. Introduced by Senator Julie Slama (Dunbar), LB 214 would adopt changes to federal law regarding banking and finance and change provisions relating to digital asset depositories, loan brokers, mortgage loan originators and installment loans. The bill would also renew the annual bank and savings and loan “wild card” provisions. (NBA Position: Support)

Amendments adopted by the Committee incorporate provisions of the following bills, both of which are supported by the NBA:

LB 669 – Department of Banking Conditional Orders
Introduced by Senator Beau Ballard (Lincoln), LB 669 would authorize the Director of the Department of Banking to prescribe conditions for banks, trust companies, credit unions, building and loan associations, savings and loan associations, digital asset depositories, and their holding companies, if any, as part of any written order, decision or determination required to be made pursuant to the Nebraska Banking Act, Chapter 8, Article 3, the Credit Union Act, and the Nebraska Financial Innovation Act.

LB 674 – Nebraska Financial Innovation Act
Introduced by Senator Mike Jacobson (North Platte), LB 674 would make technical corrections to the Nebraska Financial Innovation Act regarding digital asset depositories.

Rural Workforce Housing Bill Advances

As introduced by Senator Tom Briese (Albion), LB 249 would have expanded the definition of workforce housing to include housing that receives federal or state low-income housing tax credits, community development block grants, home funds, funds from the National Housing Trust Fund, or funds from the Affordable Housing Trust Fund, thereby allowing for the use of such funds, together with Rural Workforce Housing Investment Funds. The bill would allow a nonprofit development organization to apply for more than one grant subject to a limitation on the maximum amount of grant funds awarded to such nonprofit development organization over a two-year period to no more than $5 million. The bill would also provide $20 million in additional funding for the Rural Workforce Housing Investment Act.

The NBA had initially opposed LB 249 based upon the proposed removal of “anti-stacking” provisions, which prohibited the mixing of certain low-income housing funds with rural workforce housing funds. Prior to advancing the bill, the Committee removed the objectionable provisions, and the NBA supports the bill as amended. Senator Teresa Ibach (Sumner) has designated LB 249 as her individual Senator Priority bill.

State Treasurer ESG Bill Moves from Committee

The Banking, Commerce and Insurance Committee has advanced LB 67 to General File on a vote of 5 to 3. Introduced by Senator Slama, the bill would require the State Treasurer to ensure that money deposited by the State Treasurer's office is not used by financial institutions for social or political causes or objectives.

The NBA has worked diligently with Senator Slama and State Treasurer Murante to craft language to address the NBA’s concerns with this legislation. No further action on the legislation is anticipated this session unless amendments are agreed upon by the NBA and the State Treasurer.

Committee Hearing Activity

The NBA presented testimony before various Committees this week in support of the following bills:

LB 69 - Life Insurance Assignment - Notice of Lapse/Termination
Senator Jacobson introduced LB 69 on behalf of the NBA, which would prohibit a policy of life insurance subject to an assignment from being terminated or lapsed by reason of default in payment of any premium unless a notice of pending lapse and termination of the policy has been provided by the insurer to any known assignee at least 30 days prior to the effective date of the lapse and termination. The bill also authorizes senior citizens to designate a third party to receive notices of cancellation, nonrenewal and conditional renewal of a life insurance policy. Many thanks to NBA member Kevin Postier (Henderson State Bank) for testifying in support of LB 69. ​(NBA Position: Support)

LB 483 - Public Funds/Credit Unions
Introduced by Senator Jane Raybould (Omaha) LB 483 would authorize a state or federal credit union to hold public deposits of the state or any political subdivision of the state. A big thank you to the many NBA members who reached out to members of the Banking, Commerce and Insurance Committee to express opposition to LB 483. (NBA Position: Oppose)​

LB 504 - Rural Workforce Housing Investment Fund Appropriations
Introduced by Senator Ray Aguilar (Grand Island), LB 504 would transfer $25 million in fiscal year 2023-24 and fiscal year 2024-25 to the Rural Workforce Housing Investment Fund. (NBA Position: Support)

LB 741 - Rural Workforce Housing
Senator Tony Vargas (Omaha) is the sponsor of the LB 741, which would appropriate $25 million in fiscal years 2023-24 and 2024-25 to the Rural Workforce Housing Investment Fund. (NBA Position: Support)

Upcoming Hearings

LB 367 - Fair Chance Hiring Act
Introduced by Senator Danielle Conrad (Lincoln), LB 367 would prohibit an employer from asking an applicant to disclose information concerning the applicant's criminal record or history until after the applicant has received a conditional offer of employment from the employer. The bill would only allow an employer to request information concerning the applicant's criminal record or history after making a conditional offer of employment if the applicant is applying for a position for which a) a criminal history record information check is required by federal or state law; or b) federal or state law specifically disqualifies an applicant with a criminal background even if the law allows for a waiver that would allow the applicant to be employed. (NBA Position: Oppose)