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109th Legislature, 2nd Session 
NBA Legislation AdvancedLast week was the most consequential week for the NBA so far during the second session of the 109th Legislature. Several key legislative proposals were advanced during floor debate. Most notably, LB 838 was advanced on a vote of 35-0. LB 838 was introduced by Senator Mike Jacobson (North Platte) and was one of the Fraud Free Nebraska coalition priorities. LB 838 amends existing elder and vulnerable adult statutes to allow financial institutions to designate an “authorized contact” in the event of an emergency, a loss of contact with the customer, or suspected financial exploitation. LB 838 was designated as the Banking, Commerce, and Insurance Committee’s banking priority bill, with several other provisions amended into it. This included LB 837, introduced by Senator Jacobson on behalf of the NBA, which allows banks and merchants to round cash transactions to the nearest nickel. During floor debate, Senator Carolyn Bosn (Lincoln) offered an amendment to LB 838 to include LB 1118. Senator Bosn introduced LB 1118 on behalf of the NBA to combat the rising use of fraudulent social media advertisements to perpetrate fraud. LB 1118 amends the Nebraska Uniform Deceptive Trade Practices Act to require social media platforms that accept paid advertising to establish programs to verify the identity of their customers, and a process for detecting, investigating, and removing fraudulent advertising. The amendment was adopted on a vote of 35-1 and is now included in LB 838. LB 838 now serves as the NBA’s key legislation for combating fraud. The advancement of the bill to Select File has resulted in a swift reaction from social media companies who oppose the legislation. The NBA will continue to fight for consumer protection measures. The bill is expected to be up for second round debate in the next few weeks. Other legislation advanced during floor debate last week includes: LB 835 – 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. LB 967 – LB 967 is the Banking, Commerce, and Insurance Committee’s insurance omnibus package, which included LB 1138, introduced by Senator Bob Hallstrom (Syracuse). LB 1138 creates the Nebraska Protection of Seniors from Insurance Exploitation Act, providing insurers and insurance producers with discretion and protection when acting to detect and prevent financial exploitation of seniors and vulnerable adults. The Act defines key terms, outlines procedures for reporting and delaying suspicious transactions, grants immunity for good-faith actions, requires training for insurance staff, establishes confidentiality provisions for records, and authorizes the Director of Insurance to promulgate rules and regulations. LB 768 – The legislation grants the Nebraska Investment Finance Authority new powers to form and manage nonprofit entities to fulfill its mission. It revises the Nebraska Affordable Housing Act by updating fund allocation processes, tightening reporting and recapture rules, and shortening application periods. The bill eliminates the housing advisory committee, adjusts rules for contracts under housing acts, and modifies which buildings must comply with the International Energy Conservation Code, exempting some grant-funded projects not owned or managed by the state. It also authorizes the Department of Economic Development to contract with non-state agents for administration of housing programs and harmonizes related statutory provisions. As amended on Select File, LB 768 also includes Senator Hallstrom’s LB 819, introduced on behalf of the NBA. As amended, the bill will extend the sunset dates for the Rural Workforce Housing and Middle Income Workforce Housing programs to 2032 and increase the cost limitations for the Rural Workforce Housing program. Currently, the programs are set to sunset in 2027 and 2029, respectively. Legislature to Debate BudgetThis week the Legislature will focus on debating the adjustments to the biennial budget. Senators will return from the short weekend on Monday to attend a briefing from Senator Clements and the staff of the Legislative Fiscal Office at 9:00 a.m., with the Legislature set to reconvene for floor debate at 10:00 a.m. Nebraska lawmakers are working to close what has grown to a $646 million mid‑biennium budget deficit, driven largely by slower‑than‑expected revenue growth and higher‑than‑budgeted costs in corrections, K‑12 education, and behavioral health. Early proposals from the Appropriations Committee include tens of millions in agency reductions, delays to previously approved program expansions, and transfers from various agency cash funds to stabilize the General Fund. Senators are also weighing whether to adjust or pause portions of the state’s multi‑year tax‑cut packages. For the business community, the most consequential decisions involve whether lawmakers will preserve Nebraska’s tax‑competitiveness strategy or scale back incentives and credits to help balance the budget. Options under discussion include trimming capital construction commitments, reducing certain aid programs, and reallocating earmarked funds. With priority bills competing for limited floor time, the budget debate will shape the remainder of the session and determine how much capacity remains for workforce, housing, regulatory, and infrastructure legislation important to Nebraska businesses. First Revenue Bill Stalls, Causes Ripple EffectsTempers flared as Nebraska lawmakers failed to overcome a filibuster to raise tobacco and nicotine taxes that would have generated roughly $50 million annually. LB 1124, introduced by Senator Tony Sorrentino (Elkhorn), and prioritized by Senator Jana Hughes (Seward), sought to increase cigarette taxes—currently among the lowest in the region—and apply higher rates to vaping products, with supporters arguing the revenue could help stabilize the General Fund while reducing long‑term health costs. Opponents countered that the tax increase would disproportionately affect low‑income consumers, hurt small retailers near state borders, and represent an unreliable revenue stream given declining tobacco use.
The vote signals that the Legislature remains reluctant to pursue measures to increase sales taxes, even as budget pressures intensify. This is reminiscent of other sales tax legislation that failed during the 2024 Session, the 2024 Special Session, and the 2025 Session. The vote has caused a divide among Republican Senators, which will likely affect unrelated legislation during the remainder of the session. The vote on the Motion to Invoke Cloture can be found here. Comments are closed.
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