May 16, 2025

​109th Legislature, 1st Session

Legislature Completes Monumental Week

The Unicameral wrapped up for the week yesterday after passing the biennial budget on Final Reading. This week was perhaps the most consequential week thus far during the 90-day session. With only 10 working days remaining, senators advanced a number of bills while also becoming mired in debate on certain bills. The week started with second round debate on budget bills on Monday before moving to more controversial items later in the week.

In dramatic fashion, LB 415, introduced by Senator Beau Ballard (Lincoln), was advanced to Final Reading on a vote of 33-14, with two present and not voting. LB 415, as amended, includes LB 698, which was introduced by Senator Paul Strommen (Sidney). The combined measure amends the Nebraska Healthy Families and Workplaces Act, also known as Initiative 436 or the Paid Sick Leave Ballot Initiative, and would do the following: (a) exempt businesses with 10 or fewer employees from being required to comply with the Act; (b) exempt owners, independent contractors, temporary and seasonal agricultural workers, and employees under 16 years old from accruing paid sick time, or counting towards the number of employees; (c) provides a method for providing paid sick leave to employees who are paid by commission, mileage or fee-for-service rather than hourly; (d) clarifies that existing vacation time and paid time off programs could be used as sick leave under the Act; (e) provides that employees do not begin accruing paid sick time until after 80 hours of consecutive employment rather than immediately; (f) provides that paid sick time provided to an employee on or after January 1, 2025, and before October 1, 2025, shall be counted toward an employer's obligations under the Act for calendar year 2025; (g) clarifies that an employer is not required to pay an employee for unused paid sick time upon the employee's separation from employment; and (h) provides additional flexibility for employers to direct how requests for paid sick leave should be made. Early in the debate, the bill was amended as part of a compromise to reinstate a private cause of action for employees and lower the exemption from 10 employees to five. However, after prolonged debate, Senator Mike Jacobson (North Platte) filed a motion to reconsider the vote taken on the amendment. The motion prevailed and senators then voted down the “compromise amendment” and thereafter advanced the bill.

Senators then took up LB 468, introduced by Senator Rob Clements (Elmwood), to pare back the Nebraska inheritance tax by increasing exemptions for relatives and unrelated parties, and decreasing the rates to have a 1% rate for all. After advancing on General File, the bill failed to overcome the filibuster during Select File, with the motion to invoke cloture failing on a vote of 31-11, with five senators present and not voting.

Senators took up LB 258, introduced by Senator Jane Raybould (Lincoln), on Wednesday. LB 258 would amend the voter-approved minimum wage law to create a youth and training wage and also cap the annual increase at 1.75%. Under current law, the minimum wage is set to increase to $15.00 per hour on January 1, 2026, and increase annually thereafter by the Consumer Price Index for all Urban Consumers (CPI-U) for the Midwest Region. Upon realizing one of the proponents of LB 258 was absent, opponents of the bill quickly halted the filibuster and moved to a final vote in the proponent’s absence. Ultimately, the bill failed to advance on a vote of 31-17, with Senator Ballard present and not voting. By doing so, Senator Ballard was able to file a motion to reconsider the final vote, which is now pending. Because the bill would amend a ballot initiative, it needs 33 votes to pass.

Additionally, the Legislature sent more than 30 other bills to the Governor’s desk for his signature. Included in the list of approvals was LB 559, introduced by Senator Carolyn Bosn (Lincoln). LB 559 adds a new definition for "skimmer device" and creates a new criminal offense for the installation of a skimmer device and for use of a skimmer device. Additionally, LB 559 would enact a "kingpin" law for organized financial crimes, allowing an aggregation of transactions to increase punishment for those in leadership positions within criminal organizations. The bill also contains provisions to combat organized retail theft.

Also included in this list was LB 474, introduced by the Banking, Commerce and Insurance Committee, which contains key provisions of LB 232, introduced by Senator Bob Hallstrom (Syracuse). As amended, LB 474 would require life insurance policies issued in Nebraska after January 1, 2026, to provide notice of lapse or termination to an assignee of the policy. This will ensure financial institutions are provided notice of a pending lapse or termination when taking a policy as collateral for a loan.

Sales Tax Debate Set for Monday

The Legislature will reconvene on Monday to debate one of the major revenue packages for the session: LB 170, introduced by Senator Tom Brandt (Plymouth). With the pending amendment, LB 170 would include LB 169 and additional sin taxes. The bill would impose new sales taxes on 18 so-called “luxury” items, and LB 170 would impose sales taxes on soda and candy. Additionally, measures have been advanced to increase taxes on cigarettes, nicotine and vape products. This measure is projected to add $100 million per year to existing property tax relief funds. However, the bill faces bipartisan opposition from senators and will likely end with a tight vote.

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