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.

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.

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.

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)

Last week marked the first full week of committee hearings, which included multiple pieces of both important and controversial legislation. A total of 86 bills, plus a number of gubernatorial appointments, were heard in committee during the week. Three separate bills introduced by Senator Kathleen Kauth (Omaha) by far took the most time. These included LB 730 (restroom and locker room use for schools and state agencies), LB 731 (Gender Transition Malpractice Accountability Act), and LB 732 (ban of cross-sex hormones and puberty-blocking drugs for minors) each drew hundreds of testifiers. However, a number of other important bills were heard in committees and detailed below.

Thursday, January 29, marked the first day of debate on 2026 legislation. Speaker John Arch (LaVista) announced that moving forward, floor debate would focus on 2026-designated priority bills and legislation already advanced from committee. The last day for bills to be designated as individual priority bills is February 19. In addition to individual Senator priority bills, the Speaker may designate an additional 25 bills as priority bills.

Hearings This Week
The following bills of interest will be heard in committee this week:

LB 819 - Expansion and Modification of Workplace Housing Investment Acts
The bill increases the maximum allowable construction costs for workforce housing units, extends the timeframe for competitive grant awards and fund transfers, adjusts reporting and return-of-funds deadlines, and expands the operational window for both the Rural and Middle Income Workforce Housing Investment Funds. It also clarifies requirements for nonprofit development organizations managing these funds and modifies matching fund requirements for urban workforce housing grants. (NBA POSITION: SUPPORT) 

LB 835 - Reform of Secretary of State Fees, Lien Registration, and UCC Filings
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. (NBA POSITION: SUPPORT) 

LB 1071 - Nebraska Biennial Budget and Appropriations Bill (FY 2025-26 and FY 2026-27)
This bill is a comprehensive budget and appropriations bill for the State of Nebraska for fiscal years 2025-26 and 2026-27. It defines appropriation periods, provides and adjusts funding for numerous state agencies and programs, details reappropriations, and repeals certain prior appropriations. Notable provisions include strict prohibitions on the use of appropriated funds for diversity, equity, and inclusion (DEI) programs in state government, the University of Nebraska, and Nebraska State Colleges. The bill makes significant changes to the allocation of funds for education, health and human services, corrections, economic development, and other core state functions. It also includes new and adjusted salary limits, reappropriation authorities, and specific programmatic directives. Several technical and substantive amendments update fund names, transfer amounts, and program structures. The act contains emergency and severability clauses and takes effect immediately upon passage. (NBA POSITION: WATCH) 

LB 1072 - Nebraska Government Funds, Transfers, and Appropriations Act (2026)
This bill is a large omnibus measure addressing Nebraska’s state government finances. It authorizes a vast array of one-time and recurring transfers from various cash, trust, revolving, and special funds to the General Fund and other designated funds for fiscal years 2025-2027. The bill creates new funds (e.g., Medical Cannabis Regulation Fund, 988 Emergency Lifeline Cash Fund) and provides for new and amended fee assessments. Numerous funds, programs, and associated laws are terminated or repealed, with explicit directions for the disposition of remaining balances. The bill adjusts or eliminates fees, modifies fund investment earnings designations, and reassigns administrative responsibilities for certain programs. Appropriations and salary payments for some offices are redirected to specific funds. The act also makes technical and harmonizing changes across dozens of statutes and provides for emergency enactment. (NBA POSITION: OPPOSE W/ AMENDMENT) 

LB 1244 - Nebraska Tax Reform and Sales/Use Tax Expansion Act
The legislation eliminates numerous sales and use tax exemptions, expands the sales tax base to include a wide array of services, and removes or narrows other tax benefits. The bill also modifies reporting and definitional requirements, clarifies the taxation of mechanical amusement devices, and accelerates the sunset for new applications under the Nebraska Job Creation and Mainstreet Revitalization Act. Several statutes are outright repealed, and the bill provides for both immediate and staged operative dates. (NBA POSITION: OPPOSE)

Monthly virtual membership updates will keep you informed on the Unicameral session and other NBA news. The next one is scheduled for March 4 at 10:00 a.m. CT.
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Senators will have until February 19 to designate a personal priority bill. Additionally, Speaker John Arch will be able to designate up to 25 Speaker Priority Bills. Given the time available and overall budget issues, bills that do not receive a priority designation are unlikely to be heard. Speaker Arch has not yet announced whether he will schedule Consent Calendar bills this year, which allows noncontroversial measures to advance quickly.

Last week, NBA General Counsel Ryan McIntosh testified in support of LB 717, the Nebraska Department of Banking's omnibus bill. Additional NBA-supported bills will also be heard this week.

LB 717 - Nebraska Banking and Finance Modernization Act (2026 Updates)
​The Nebraska Department of Banking and Finance annual omnibus bill updates references to federal laws and regulations to January 1, 2026, revises definitions and regulatory standards for various financial institutions, expands permissible activities for digital asset depositories, raises the threshold or certain loans exempt from interest rate caps, introduces new consumer disclosure requirements for loan refinancing, and raises the exemption threshold for the maximum general interest rate on loans from $25,000 to $100,000, allowing higher-value loans to exceed state interest rate caps. Notably, it expands authority to hold reserve funds of a digital asset depository institution to credit unions and out-of-state banks. (NBA POSITION: SUPPORT WITH AMENDMENT)

Hearings This Week
The following bill of interest will be heard in committee this week:

LB 783 - Adoption of Uniform Assignment for Benefit of Creditors Act & Tax Exemption for Assignments
The bill enacts the Uniform Assignment for Benefit of Creditors Act, establishing detailed rules and definitions for voluntary assignments of a debtor's assets to an assignee to satisfy creditor claims. It sets out eligibility and duties of assignees, creditor notification and claims procedures, asset management, priority of distributions, judicial oversight, and protections for parties involved. The bill also amends section 76-902 to exempt these assignments from the documentary stamp tax and provides for severability. (NBA POSITION: SUPPORT)
 
LB 836 - Revisions to Examination Charges and Assessments for Financial Institutions
The bill amends several sections of Nebraska law to modernize and broaden the Department of Banking and Finance's authority for levying assessments and examination costs on a wider range of financial entities, including both state-chartered and licensed/registered entities (such as mortgage lenders and money transmitters). It revises the methodology for calculating assessments, expands the basis for such assessments beyond asset size to include other measures (transaction volume, origination, servicing, etc.), and clarifies procedures for billing, proration, and penalties for nonpayment. Provisions relating to billing for examiner time are removed and replaced with broader director-set rates. The bill also expands the grounds for suspension or revocation of charters, licenses, or registrations for nonpayment. (NBA POSITION: SUPPORT)
 
LB 837 - Cash Transaction Rounding Requirements
This bill requires that, in most cash transactions (including cash wages), the final cent amount of the total (including taxes) be rounded either up or down to the nearest five cents, depending on the last digit of the cent value. Transactions ending in 1, 2, 6, or 7 cents may be rounded down; those ending in 3, 4, 8, or 9 cents may be rounded up. If the total is 1 or 2 cents, it must be rounded up to 5 cents. The bill exempts all non-cash payment methods from these rounding rules. (NBA POSITION: SUPPORT)
 
LB 838 - Protections Against Financial Exploitation of Vulnerable or Senior Adults
The bill adds the definition of 'authorized contact'—an adult designated by a vulnerable or senior adult to be contacted in emergencies or suspected exploitation. It updates references and definitions throughout the law to reflect this addition. The bill allows financial institutions to notify authorized contacts or other associated parties if exploitation is suspected and provides immunity from liability for financial institutions and authorized contacts under certain conditions. It clarifies that financial institutions are not required to implement authorized contact programs and are not liable for decisions not to interact with, or to implement, such programs absent gross negligence or willful misconduct. (NBA POSITION: SUPPORT)
 
LB 1067 - Nebraska Housing and Documentary Stamp Tax Reform Act
The bill increases the documentary stamp tax from $2.32 to $3.82 per $1,000 of real estate value transferred. It changes the disbursement of these funds, directing new revenues to the Rural Workforce Housing Investment Fund and the Middle Income Workforce Housing Investment Fund, in addition to existing beneficiaries. The bill also eliminates the Legislature's authority to transfer money out of the Affordable Housing Trust Fund to other specified funds. Conforming amendments are made to ensure receipt of new tax revenues by these housing funds and clarify the exclusive use of such revenues for their designated purposes. Sunset clauses are established for the Rural and Middle Income Workforce Housing Funds, after which remaining funds transfer to the General Fund. (NBA POSITION: SUPPORT)

The Nebraska Legislature wrapped up its first full week of the session on Friday. The week featured continued bill introduction and kicked off floor debate on carryover items. As of January 16, there had been more than 400 bills introduced. The week also included Governor Jim Pillen’s annual State of the State address to the Legislature.
 
In his State of the State address, Governor Pillen highlighted Nebraska’s strong economic growth and fiscal health, emphasizing pro-business policies such as the 2023 income tax cuts, regulatory reform, workforce development, and targeted incentives for companies that create high-paying jobs. Specifically, Governor Pillen called for continued tort reform, enhancements in energy production to attract power-intensive industries, and investments in education and workforce retention. He assured business leaders that Nebraska remains “open for business” and strongly competitive, aiming for continued prosperity.
 
The Legislature also added a new Senator last week. On January 12, the Executive Committee held a hearing on a resolution to expel Senator Dan McKeon of Amherst. Following the hearing, the Executive Committee unanimously advanced the resolution. As debate was set to begin on the expulsion resolution before the full Legislature, Senator McKeon submitted his resignation. Governor Pillen appointed former Senator Fred Meyer of West Point to serve for the remainder of the year for District 41. Senator Meyer previously served Legislative District 41 following Senator Tom Briese’s appointment to State Treasurer. A special election will be held to fill the remainder of the term.
 
The NBA’s remaining bills that make up the Fraud Free Nebraska legislative package were introduced last week. LB 1082 was introduced by Senator Tanya Storer of Whitman on behalf of the NBA. The bill aims to crack down on call spoofing to curb fraud. LB 1082 expands the Nebraska Telecommunications Regulation Act by 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.
 
LB 1118 was introduced by Senator Carolyn Bosn of Lincoln on behalf of the NBA. The bill is aimed at fraud perpetrated through social media advertising. LB 1118 adds a new defined practice to the Deceptive Trade Practices Act to include specific requirements for social media platforms that accept payment or compensation for advertising. Under the bill, social media platforms would be required to implement identity verification for advertisers, as well as 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, and notification to law enforcement.

Bills We're Watching
The following bill of interest will be heard in committee this week:
 
LB 717 - Nebraska Banking and Finance Modernization Act (2026 Updates)
Nebraska Department of Banking and Finance annual omnibus bill. It updates references to federal laws and regulations to January 1, 2026, revises definitions and regulatory standards for various financial institutions, expands permissible activities for digital asset depositories, raises the threshold for certain loans exempt from interest rate caps, introduces new consumer disclosure requirements for loan refinancing, and raises the exemption threshold for the maximum general interest rate on loans from $25,000 to $100,000, allowing higher-value loans to exceed state interest rate caps. Notably, it expands authority to hold reserve funds of a digital asset depository institution to credit unions and out-of-state banks. (NBA POSITION: SUPPORT WITH AMENDMENT) 

You are encouraged to sign up for the annual NBA State Government Relations Forum on January 29th at the Cornhusker Marriott Hotel in Lincoln. Headlining the program will be presentations by Governor Pillen, a panel of state senators, NBA General Counsel Ryan McIntosh and NBA Associate General Counsel Scott Smith. Nebraska Department of Banking Director Kelly Lammers will discuss Department initiatives.
​The State Government Relations Forum presents an opportunity to meet personally with your state senator during lunch to discuss issues of importance to the banking industry, your institution and your community. We look forward to seeing you on January 29!
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Stay Tuned!
Bill Summaries - estimated to begin in February provide you with a review every legislative bill of interest to the banking industry and the NBA's position for each bill listed in the document(s).

NOTE: Bill Summaries will be linked via the buttons at the top of this page.

Governor Jim Pillen has signaled his intent to continue to push for additional property tax relief. Governor Pillen has also proposed significant changes to Nebraska's economic development incentives, specifically calling for the reduction or elimination of incentives for companies with ties to foreign adversaries such as China, even when those connections are indirect. These proposals are expected to generate considerable debate as lawmakers balance economic competitiveness with fiscal and national security concerns.
 
More than 200 bills were introduced in the opening days of the session. The legislation spans a wide range of issues, including immigration enforcement, homelessness, artificial intelligence, taxation and government operations. January 21 marks the final day for bill introduction, after which the Legislature will shift its focus to public hearings and committee work. Committee hearings are scheduled to begin on January 20, priority bill designations are due by February 19, full-day floor debate begins on March 3, and the session is currently slated to adjourn on April 17.
 
In addition to the heavy policy agenda, the Legislature opened the session amid significant internal controversy. Lawmakers voted – with no dissenting votes – to suspend procedural rules in order to expedite an expulsion hearing for Senator Dan McKeon of Amherst. The Executive Board is scheduled to meet to consider a motion for expulsion, with floor debate potentially beginning as early as this week.
 
Overall, the first week of the 2026 session set a serious and high-stakes tone. Lawmakers must navigate a compressed legislative calendar, a substantial budget deficit, and politically sensitive policy debates, all while addressing unprecedented disciplinary proceedings within their own ranks. Rather than a quiet short session, the opening days suggest a Legislature facing both fiscal pressure and institutional strain, with significant decisions looming in the weeks ahead.
 
The first three days included three bills from the NBA’s affirmative legislative agenda. The first is LB 785 introduced by Senator Bob Hallstrom (Syracuse). LB 785 creates a new crime for the use or possession of a mail receptacle key or lock by an unauthorized person. This is the first bill of the NBA’s Fraud Free Nebraska legislative agenda.
 
LB 819 was introduced on behalf of the NBA by Senator Hallstrom as well. LB 819 amends the Rural Workforce Housing Investment Act by increasing the cost limitations and extending the sunset date from 2027 to 2037. The bill also extends the sunset of the Middle Income Workforce Housing Investment Act to 2037.
 
LB 837 was introduced by Senator Mike Jacobson (North Platte) on behalf of the NBA to allow rounding of transactions to the nearest nickel. Last year the federal government announced it would stop minting pennies due to the cost. As a result, businesses and individuals looked to their local bank for guidance. The NBA drafted legislation, modeled after federal legislation, to address the issue. The NBA is hopeful we will have guidance from Treasury prior to the end of the session. However, the NBA will work with other interested parties to ensure clarity for all Nebraskans.
 
In addition to the foregoing, two additional bills are expected on behalf of the NBA’s “Fraud Free Nebraska” campaign. The first bill will amend the Nebraska Telecommunications Act to provide an affirmative duty for telecommunications providers to prevent spoofing and protect their customers from unwanted calls. The second bill will require social media companies to implement procedures to know their customers and procedures to take down and remove fraudulent advertisements.
 
In addition to the foregoing, Senator Mike Jacobson introduced LB 717 on behalf of the Nebraska Department of Banking and Finance (NDBF). This bill includes standard annual updates to banking statutes. This year it also includes updates to the Nebraska Financial Innovation Act due to the passage of the GENIUS Act by Congress. The amendments include a provision that would allow credit unions to participate in issuance of stablecoin. The NBA has been in contact with the NDBF and will provide additional context in the next update.