Twelve Legislative Bills Affecting Real Estate and Energy Development Passed During 2024 Nebraska Legislative Session

The Second Regular Session of the 108th Nebraska Legislature convened on January 3, 2024, and adjourned sine die on April 18, 2024.  We previously provided two updates during bill introduction and three updates throughout the remaining fifty days of the legislative session.  Please click here, to access these prior articles. 

Throughout this legislative session, we identified and analyzed 193 legislative bills of interest, including 91 carryover bills from last session.  The Nebraska Legislature passed and signed into law 12 of those bills. 

Immediately below we analyze these passed legislative bills of interest.  Following this, we provide an update as to the remaining legislative bills we have been following this session. 

BILLS OF INTEREST THAT BECAME LAW

Legislative Bill 399 (Brewer) – Passed on April 11, 2024.

LB 399, as amended by AM 3336 (Brewer), FA 351 (Cavanaugh, J.), and AM 2702 (Natural Resources Committee) requires any energy generation facility with a generating capacity over 10 megawatts to convene a local public hearing on the proposed development.  The meeting must occur “in one of the counties in which the proposed facility will be located.”  This requirement applies to both public and private electric generation facility developers.

That meeting need not comply with the Open Meetings Act.  However, public electric suppliers must have at least 50 percent of their governing board at the meeting.  All electric suppliers must explain the need for the proposed facility and type of facility and provide county landowners “an opportunity to comment on the proposed facility.”

The bill leaves unclear whether a conditional use permit hearing will satisfy this meeting requirement.  If the developer satisfies all landowner notice requirements, such a hearing should suffice.

LB 399 underwent several amended forms.  Initially, it proposed to subject private electric energy developers to additional oversight by the Power Review Board (the “Board”).  Nebraska Revised Statutes section 47-1014.02 permits certain privately developed renewable energy generation facilities to commence construction upon filing a notice to the Board.  The initial form of this bill, however, would first require an application for such facilities and a hearing and opportunity for public comment before the Board.  After the hearing, the Board could approve or deny the application.

The Legislature passed LB 399, as amended, on April 11, 2024.  Governor Pillen signed it into law on April 16, 2024. 

Legislative Bill 569 (Bostelman) (E) – Passed on March 7, 2024.  

LB 569, as amended by AM 971 (Government, Military and Veterans Affairs Committee), requires a public notice and hearing in regard to any proposed construction of an electric generation facility where a member of a county board or planning commission has a financial interest in said project.  This applies to the member’s immediate family as well.  The bill clarifies it does not affect the validity of existing contracts.  LB 569, as initially introduced, proposed to prohibit any county board or planning commission member from having such a relationship. 

The Legislature passed LB 569, as amended, on March 7, 2024, and Governor Pillen signed it into law on March 12, 2024. 

Legislative Bill 1370 (Bostelman) – Passed on April 11, 2024.

LB 1370 requires that before a dispatchable electric generation facility may retire, its owner must certify to the Board it has (1) secured and placed on Nebraska’s electric grid a replacement dispatchable electric generation facility with a nameplate capacity equal to or greater than that facility being retired and (2) adequate transmission infrastructure to interconnect the new dispatchable electric generation facility to the state’s electric grid and transmit dispatchable electricity.  The bill defines “dispatchable electricity” as a source of electricity, generated via hydropower, coal, natural gas, hydrogen, or nuclear power that is available on demand to dispatch electricity upon a power grid operator’s request.  There have been three amendments to LB 1370 throughout this legislative session. 

First, AM 2863 (Natural Resources Committee) adds the substance of LB 956 (Bostar), in that, beginning July 1, 2025, the developer of a wind energy conversion system (“WECS”) would need to apply to the Federal Aviation Administration (“FAA”) for approval to install and operate a light-mitigating technology system.  Subject to FAA approval, the bill would also require installation of such light systems:

• On any new WECS after July 1, 2025;
• 30 days after repowering a WECS that existed before July 1, 2025;
• 30 days after executing or extending a power purchase agreement if, as of July 1, 2025, the then-existing agreement has a remaining term of five or fewer years; and
• On every WECS by July 1, 2035.

AM 2863 also incorporates the substance of LB 120 (Bostelman), as amended by AM 2489 (Bostelman).  All electric generation facilities with transmission lines over 700 volts within a ten-mile radius of any military installation would need to provide notice to the military installation.  Such notice must include, among other things, a certification that no materials or other components of the facilities came from a foreign government or adversary. 

Under AM 2863, suppliers that comply with the critical infrastructure protection requirements of the North American Electric Reliability Corporation are exempt from the above requirement.  However, AM 3245 (Bostelman) amend LB 1370 to require that all facilities must (a) be in compliance with the North American Electric Reliability Corporation’s critical infrastructure protection requirements if it is connected to the grid at 100 kilovolts or more, and (b) have a nameplate rating of 20 megavolt amperes for a single generation unit or an aggregate of 75 megavolt amperes or more.  Under AM 3245, the end result is that most suppliers will be exempt from the AM 2863 reporting requirement. 

Last, AM 3426 (Cavanaugh, J.) added certain requirements to a facility owner’s notice of decision to close or decommission the facility. 

The Legislature passed LB 1370, as amended, on April 11, 2024.  Governor Pillen signed it into law on April 15, 2024.

Legislative Bill 1120 (Hardin) – Passed on April 11, 2024

LB 1120, as amended by AM 2773 (Hardin), AM 2519 (Banking, Commerce and Insurance Committee), and AM 3029 (Hardin), will require that the purchaser of any real property located (1) within a county that does not contain a city of the primary or metropolitan class and (2) is within a ten‑mile radius of any military installation must submit to the county register of deeds an affidavit certifying that the purchaser is not affiliated with a foreign government or nongovernment person determined by federal law to be a foreign adversary.  The bill would prohibit the county register of deeds from recording any instrument to the conveyance until such affidavit is filed.  A failure to submit such affidavit would not affect marketability of title of the property. 

The Legislature passed LB 1120, as amended, on April 11, 2024, and Governor Pillen signed it into law on April 16, 2024. 

Legislative Bill 1301 (DeKay; at Governor Pillen’s Request) – Passed on April 11, 2024.

LB 1301 establishes the Foreign‑Owned Real Estate National Security Act (“Act”).  The Act prohibits any nonresident alien, excluding foreign nationals, foreign corporations, and foreign governments, from owning, acquiring title, or leasing for more than five (5) years any real estate in the State of Nebraska.  This prohibition would include easements.  A violation of the Act could result in divestment of the property. 

The Act does not apply to land used for industrial or manufacturing purposes unless if it is located within a “Restricted Area” or owned by a “Restricted Entity,” and land located within the corporate limits of cities and village or within three (3) miles thereof.  A “Restricted Area” is an area within a 10 mile radium of any military installation under the jurisdiction of the United States Air Force or the United States Strategic Command.  A “Restricted Entity” is any person, foreign government or entity identified on the sanctions list of the Office of Foreign Assets Control of the U.S. Department of the Treasury or found to have engaged in long-term conduct adverse to national security as determined by Federal law. 

AM 2594 (Agriculture Committee) added that Restricted Entities may own or lease land for oil, gas or other hydrocarbon substances, for 10 years or for as long as the substances are produced in commercial quantities.  Such Restricted Entities may not qualify as railroads, public utilities or common carriers.  AM 2594 also added to the definition of “Alien” all domestic corporations with aliens as an executive officer, manager, of a majority alien board of directors or board of trustees.

The Nebraska Department of Agriculture (“Department”) and Attorney General’s Office will enforce the Act.  The main penalty under the Act is to divest the nonresident alien of its property rights in violation of the Act.  The Department would investigate any alleged violation and, refer the case to the Attorney General if appropriate, who would then initiate a judicial divestment action against the nonresident alien. 

Last, under the Act, if a resident alien acquires title to land via devise or descent, it must dispose of the property within five years of such conveyance, or the property becomes subject to the same divestment action provided above. 

The Legislature passed LB 1301 on April 11, 2024, and Governor Pillen signed it into law on April 16, 2024. 

Legislative Bill 1344 (Wayne) – Passed on April 11, 2024.

LB 1344 amends the Nebraska Innovative Hub Act (“Act”) to allow for iHub Areas to be located within inland port districts and to include inland port authorities as iHub Partners and as eligible for iHub Designation. 

An “Innovation Hub” (or “iHub”) is a designated zone that receives funding to spur economic and entrepreneurial development by serving as a platform for startup businesses, venture capitalists, and economic development organizations.  Under the Act, an iHub must be in either an economic redevelopment area, an “Enterprise Zone” pursuant to the Enterprise Zone Act, an inland port district under LB 1344, or within 30 miles of the largest artificial reservoir constructed in the state or any county with less than 100,000 inhabitants, per AM 2361 (Urban Affairs Committee). 

There are currently three iHubs in Nebraska: two in Omaha and one in Lincoln.  The Act, as amended by LB 1344, permits six iHubs in the First Congressional District, four in the Second Congressional District, and six in the Third Congressional District. 

AM 3191 (Wayne), as amended by AM 3232 (Wayne), FA 320 (Wayne), and AM 3301 (McKinney), amended LB 1344 to include the Creating High Impact Economic Futures Act (“CHIEF Act”).  This allows certain “community betterment organizations,” such as iHubs, inland port districts, and municipalities, among others, that perform certain prescribed economic activities, to apply for tax credit status.  Such organizations must apply to the Nebraska Department of Revenue and submit a proposal, which includes documentation of local government support for the program, for consideration. 

The total allowable tax credits for 2025 and 2026 are $300,000 per congressional district per year and for 2027 and thereafter, $1,000,000 per congressional district per year.  Each program is limited to $150,000 in tax credits per year.  The CHIEF Act also authorizes tax credits for certain persons or entities that make contributions to participating program. 

The Legislature placed passed LB 1344, as amended, on April 11, 2024.  Governor Pillen signed the bill into law on April 18, 2024.  

Legislative Bill 299 (Linehan) (E) – Passed February 8, 2024.

LB 299 amends the Interlocal Cooperation Act to limit the ability of a joint entity that includes a Nebraska school district or educational service unit to issue bonds without the approval of the majority of the qualified electors within the school district or educational service unit.  The bill also imposes notice requirements and limitations on said election. 

The Legislature passed LB 299 on February 8, 2024, and Governor Pillen signed it into law on February 14, 2024. 

Legislative Bill 1118 (McKinney) – Passed March 28, 2024.

LB 1118 requires the consent of the city council of a city of the second class for its mayor to remove an officer appointed by the mayor and city council.  The Legislature passed LB 1118 on March 28, 2024, and Governor Pillen signed it into law on April 2, 2024. 

Legislative Bill 1169 (Erdman) – Passed April 11, 2024.

LB 1169, as amended by AM 2944 (Conrad), establishes the position of Director of the Nebraska State Historical Society (“Society”).  The Director would be appointed by the Governor of the State of Nebraska and confirmed by the Nebraska Legislature.  This position would be responsible for the tasks previously held by the Secretary of the Society.  This bill would also change several duties of the Society’s Board of Trustees. 

The Legislature passed LB 1169 on April 11, 2024, and Governor Pillen signed it into law on April 18, 2024. 

Legislative Bill 1088 (Linehan) – Passed on April 11, 2024.

LB 1088, Speaker of the Legislature Senator Arch’s priority bill, amends the Nebraska Advantage Act change the time period in which a taxpayer must meet the requisite levels of employment and investment to earn tax incentives under the Act.  Tier 1 and 3 projects, as well as Tier 6 projects approved prior to December 1, 2020, would need to meet the employment and investment thresholds by end of the fourth year.  Tier 2 and 4 projects, as well as Tier 6 projects approved on or after December 1, 2020, would need to meet the employment and investment thresholds by end of sixth year. 

The Legislature referred LB 1088 to the Revenue Committee on January 10, 2024.  The bill was placed on Select File on March 25, 2024.  The Legislature passed LB 1088 on April 11, 2024, and Governor Pillen signed it into law on April 18, 2024. 

Legislative Bill 1326 (Dungan) – Passed on April 11, 2024.

LB 1326 amends the Nebraska Housing Agency Act to no longer require that a real and personal property of an affiliate of a local housing agency be wholly owned by the affiliate, instead, it must only be controlled by the affiliate, in order to be exempt from taxation and special assessment. 

The Legislature referred LB 1326 to the Revenue Committee, and then passed the bill on April 11, 2024.  Governor Pillen signed the bill into law on April 15, 2024. 

Legislative Bill 644 (McDonnell) (E) – Passed on March 28, 2024.

LB 644 appropriates $80,000,000 from the Cash Reserve Fund to the Site and Building Development Fund (“Fund”) for fiscal year 2023-24 and fiscal year 2024-25.  The appropriated funds are to be placed in a subaccount and be used to support identifying, evaluating and developing large commercial and industrial sites and building infrastructure to attract major investment and employment opportunities. 

AM 1479 (Slama) amended LB 644 so that at least 78.5% of the money transferred to the subaccount is used for large commercial and industrial sites and building infrastructure, 15.5% of which to be for the western half of the State and 63% for the eastern half.  Further, 6% of the subaccount monies must be used for hiring additional Department of Economic Development (“Department”) staff and for auditing purposes, and 15.5% shall be used to support it’s providing of grants and other resources from the Fund.  

AM 2738 (McDonnell) further amended 644 to provide for an additional $500,000 from the Fund for the Department to conduct a comprehensive study to identify and evaluate large commercial and industrial sites in Nebraska to consider for further investment and development. 

On January 20, 2023, the Legislature referred this bill to the Banking, Commerce and Insurance Committee.  The Legislature placed this bill on General File on March 9, 2023.  

The Legislature passed LB 644, as amended, on March 28, 2024, and Governor Pillen signed it into law on April 2, 2024.

REMAINING LEGISLATIVE BILLS OF INTEREST

Economic Development

New Legislation Introduced in 2024:

LB 842 (McKinney) (E) proposed to amend the Municipal Density and Missing Middle Housing Act, Nebraska Affordable Housing Act, and Nebraska Housing Agency Act to adjust the income thresholds for “affordable housing,” for both residential dwellings and rental units, by redefining the terms “area median income,” “mixed-income development,” “eligible income,” and “qualifying tenants,” thus expanding eligibility for the foregoing programs. 

The Legislature placed LB 842 on General File with AM 2778 (Urban Affairs Committee) attached on March 5, 2024.  This amendment changes the definition of “affordable housing” to include residential dwelling units that (a) are affordable to a household earning no more than 120% of the area median income and (b) if rental units, place certain limitations on utility costs and rental payments the tenant pays.  There has been no further legislative action.    

LB 843 (McKinney) proposed to amend the Nebraska Middle Income Workforce Housing Investment Act to lower the required matching funds applicants provide from 50% to 25% of the working house grant awarded and to increase the maximum grant allowed from five to ten million dollars.  

The Legislature referred LB 843 to the Urban Affairs Committee on January 5, 2024, which held a hearing on January 23, 2024.  There has been no further legislative action. 

LB 881 (Ballard) proposed to amend the Middle Income Workforce Housing Investment Act to expand the definition “urban community” to areas located in counties that also include a city of the primary class, even if the area is not located within the limits of the city. 

The Legislature referred LB 881 to the Urban Affairs Committee on January 5, 2024, which held a hearing on January 23, 2024.  There has been no further legislative action. 

LB 888 (Vargas) proposed to appropriate $25,000,000.00 to the Department of Economic Development for purposes of the Middle Income Workforce Housing Investment Act. 

The Legislature referred LB 888 to the Appropriations Committee on January 5, 2024, which held a hearing on February 14, 2024.  There has been no further legislative action.

LB 897 (Lippincott) (E) proposed to appropriate $20,000,000.00 to the Department of Economic Development for Program 601 for purposes of the Workforce Housing Grant Program and an appropriate of $20,000,000.00 to the same for state aid.

The Legislature referred LB 897 to the Appropriations Committee on January 5, 2024, which held a hearing on February 14, 2024.  There has been no further legislative action.

LB 975 (Ibach) proposed to amend the Shovel-Ready Capital Recovery and Investment Act to add to the definition of “qualified nonprofit organization[s],” which are 501(3) entities eligible to receive grant funds pursuant to the act, multi-function centers that at serve at least two of the three uses: (1) early childhood learning center, (2) community event center, or (3) indoor and outdoor sports training centers. 

The Legislature referred LB 975 to the Appropriations Committee on January 9, 2024, which held a hearing on February 14, 2024.  There has been no further legislative action.

LB 1039 (Vargas) (E) proposed to appropriate $25,000,000.00 to the Department of Economic Development for purposes of the Middle Income Workforce Housing Investment Act and $25,000,000.00 for the purposes of the Rural Workforce Housing Investment Act. 

The Legislature referred LB 1039 to the Appropriations Committee on January 10, 2024, which held a hearing on February 14, 2024.  There has been no further legislative action.

LB 1043 (McKinney) proposed an act that would incentivize non-profit economic developers to invest in “underutilized tax-exempt property” in “high-poverty area[s].” “Underutilized tax-exempt property” is tax-exempt property that is “completely undeveloped or contains deteriorating structures.”  A “high-poverty area” is an area that consists of one or more continuous census tracts in which more than 30% of persons’ income is below the poverty line. 

The bill would require non-profit economic developers owning such property in these areas to (1) increase the market value of the property by at least 20% and (2) create new jobs or a new business on the property within its applicable deadline.  For non‑profit economic developers owning such described property prior to the passing of this bill, these requirements must be satisfied within two (2) years after the bill’s passage.  For non-profit economic developers acquiring such property after this bill’s passage, the requirements must be met within two (2) years of acquisition.  AM 2358 (McKinney) amends LB 1043 to exclude political subdivisions. 

If such an owner fails to meet the requirements within its applicable deadline, the Legislature would impose escalating penalties culminating in a revocation of the property’s tax-exempt status.  The escalating penalties, in order, are $500,000.00 for missing the deadline; $1,000,000.00 for non-compliance one year after the deadline; and renovation of tax-exempt status for non-compliance two years after the deadline. 

Lastly, any non-profit developer shall not sell underutilized tax-exempt property located in a high-poverty area more for more 50% above fair market value for the property.  The bill would penalize such an action by revoking the property’s tax-exempt status.

The Legislature referred the bill to the Revenue Committee on January 10, 2024, which held a hearing on February 28, 2024.  There has been no further legislative action. 

LB 1228 (Wayne) proposed to amend the Good Life Transformational Projects Act (“Act”).  Under the Act, a project site can apply to become a “Good Life District,” whereby the applicable sales tax rate is reduced to 2.75% (as compared to 5.5%).  LB 1228 proposes to limit the statewide good life districts to five.  The bill also proposes to create “qualified inland port districts.” Among other things, proposed projects within qualified inland port districts will be exempt from the limitation on Good Life Districts per county, the acreage size limitation imposed on Good Life Districts, and the categorical eligibility exclusion for projects receiving Shovel‑Ready Capital Recovery and Investment Act or the Economic Recovery Act.      

The Legislature referred LB 1228 to the Revenue Committee on January 17, 2024, which held a hearing on February 14, 2024.  There has been no further legislative action.

LB 1251 (Linehan) – proposed to amend the Sports Arena Facility Financing Assistance Act (“Act”) to include in the definition of eligible sports arena facilities “small sports facilit[ies], including concession areas, parking facilities, and onsite administrative offices connected with operating the small sports facilit[ies].”  The bill defines “Small Sports Facility” as a facility (a) located within a city of the second class or village, (b) that includes indoor and/or outdoor areas, (c) primarily used for competitive sports, and (d) contains at least two separate sports venues.

The Legislature referred LB 1251 to the Revenue Committee on January 17, 2024, which held a hearing on February 15, 2024.  There has been no further legislative action.

LB 1314 (McKinney) (E) proposed to amend the Municipal Inland Port Authority Act (“Act”) to create the Inland Port Authority Fund (“Fund”).  The Fund would use monies from the Nebraska Legislature and other Federal funding pursuant to the Act to provide assistance to qualified port authorities located within the boundaries of a city of the metropolitan class. 

The Legislature referred LB 1314 to the Urban Affairs Committee on January 18, 2024, which held a hearing on February 6, 2024.  There has been no further legislative action.

LB 1400 (Ballard; at the request of Governor Pillen) proposed to establish the Relocation Incentive Act.  Beginning January 1, 2025, an employer would receive a refundable state income tax credit equal to 50% of the expenses the employer incurred in connection to relocating a qualified employee that moves to the State of Nebraska for employment.  This credit would be limited to $5,000.00 per relocating employee.  The bill defined a “qualified employee” as a relocating employee that accepts an annual salary of $70,000.00 to $250,000.00.  This salary threshold would be adjusted, beginning 2026, in the same manner as the Internal Revenue Code of 1986 provides for calculating individual income tax brackets. 

Under the bill, if the qualified employee for which a tax credit the employer claims moves out of the State of Nebraska within two (2) years after the credit is claimed, the amount of the credit will be reclaimed by the Department of Revenue from the employer. 

Last, beginning January 1, 2025, the relocating employee may make a one-time election, within two (2) calendar years of earning Nebraska residency, to exclude its entire Nebraska-sourced income from Nebraska state income tax, subject to certain requirements.  

The Legislature referred LB 1400 to the Revenue Committee on January 18, 2024, which held a hearing on February 2, 2024.  There has been no further legislative action.

LB 1374 (Linehan) (E), as amended by AM 2957 (Linehan) proposed to enact the Good Life District Economic Development Act (“Act”).  The Act would allow a city, upon approval by a majority vote of the city’s registered voters, to establish a Good Life District Economic Development Program, thereby enabling the city to provide financial assistance to qualified applicants intending to develop within the designated Good Life District.  Such programs, under the Act, would exist for 30 years after establishment.  To fund such assistance, a city may levy a local option sales tax, a business occupation tax, and use a portion of the city’s existing local option sales and use tax, subject to statutory levy limitations.  The Act lastly prescribed parameters of the required procedures for the city to administer funding and assistance to businesses within the Good Life District. 

The Legislature referred LB 1374 to the Revenue Committee on January 18, 2024, which held a hearing on February 14, 2024.  There has been no further legislative action. 

LB 1410 (Linehan) (E) proposed to amend the ImagiNE Act to adjust the amount of tax credit a qualified taxpayer may be eligible to receive.  The bill would alter the percentage of the average new employee wage that is taken into account in the tax credit calculation formula, and, the change to the percentage is based on factors such as new employees hired, average wage of new employees, and cumulative investment. 

The Legislature referred LB 1410 to the Revenue Committee on January 18, 2024, which held a hearing on February 2, 2024.  There has been no further legislative action.

Carryover Legislation Introduced in 2023:

LB 118 (Brandt) proposed to decrease the minimum investment amount for livestock modernization or expansion to receive a refundable credit under the Nebraska Advantage Rural Development Act.  Under this bill, the minimum investment amount would decrease from $50,000 to $10,000 for all applications filed on or after January 1, 2024.  On January 10, 2023, the Legislature referred this bill to the Revenue Committee, which held a hearing on March 16, 2023. 

AM 1152 (Revenue Committee) incorporated the substance of LB 118 into LB 727 (Linehan) on June 1, 2023.  The Legislature passed LB 727, as amended by AM 1152, on June 1, 2023, and Governor Pillen signed it into law on June 6, 2023.  

LB 292 (Cavanaugh, M.) proposed to amend the Jobs and Economic Development Initiative Act, which last year appropriated funds for the Department of Natural Resources to develop a lake between Lincoln and Omaha.  This bill would prohibit political subdivisions from annexing land necessary for the lake, and it would prohibit the state from using eminent domain to acquire land for the project. 

On January 13, 2023, the Legislature referred this bill to the Natural Resources Committee, which held a hearing on February 8, 2023.  There has been no further legislative action. 

LB 424 (DeBoer) proposed to address the fragmentation of housing related issues among multiple state agencies by consolidating and creating the Department of Housing and Urban Development.  The bill would also create the Housing Advisory Commission to Department of Housing and Urban Development.  Effective July 1, 2024, all duties of the Housing Division of the Department of Economic Development and certain duties of the Department of Economic Development would transfer to the Department of Housing and Urban Development. 

On January 18, 2023, the Legislature referred this bill to the Urban Affairs Committee, which held a hearing on March 7, 2023.  There has been no further legislative action.    

LB 477 (Wayne) (E) would have appropriated $100,000,000 to the Omaha Streetcar Authority to help establish, maintain and operate the Omaha streetcar.  The bill expressed a preference for one-half of the money to go toward developing a North Omaha line. 

On January 19, 2023, the Legislature referred this bill to the Appropriations Committee, which held a hearing on February 24, 2023.  There has been no further legislative action.     

LB 481 (Raybould) proposed to adopt the Housing Incentive District Act. The Act would allow cities and counties to assist directly in the financing of public improvements that would support housing in areas that experience housing shortages.  Prior to designating a housing incentive district, the cities and counties must conduct a housing needs analysis to determine what, if any, housing needs exist within the proposed incentive district and adopt a resolution that depicts the area and the findings of the analysis. 

On January 19, 2023, the Legislature referred this bill to the Urban Affairs Committee, which held a hearing on March 21, 2023.  There has been no further legislative action.      

LB 504 (Aguilar)  (E) would have appropriated $25,000,000 in each of the next two years to the Rural Workforce Housing Investment Fund to provide workforce housing grants under the Rural Workforce Housing Investment Act.  The bill also proposed to appropriate $25,000,000 in each of the next two years to the Affordable Housing Trust Fund to finance loans, grants, subsidies, credit enhancements and other financial assistance for community affordable housing projects. 

On January 19, 2023, the Legislature referred this bill to the Appropriations Committee, which held a hearing on March 8, 2023.  There has been no further legislative action.      

LB 515 (Walz) would have adopted the Rural Economic Development Initiative Act. Under the Act the Economic Development Grant Program would be established for the issuance of grants to counties to use to hire an additional employee to assist with economic development measures in the county. 

On January 19, 2023, the Legislature referred this bill to the Banking, Commerce and Insurance Committee, which held a hearing on January 31, 2023.  There has been no further legislative action.   

LB 530 (McKinney) proposed to amend the Nebraska Housing Agency Act.  The bill required two of the seven commissioners of a local housing agency be elected by adults who receive direct assistance from the local housing agency.  The five other commissioners would remain appointed by the chief elected official of the city.  Additionally, all commissioners of a local housing agency established by a city of the metropolitan class elected or appointed would serve for a term of four years.  The bill would also require the executive director of a housing agency established by a city of the metropolitan class to be elected by adults who receive direct assistance from the local housing agency.

On January 19, 2023, the Legislature referred LB 530 to the Revenue Committee, which held a hearing on February 28, 2023.   Senator McKinney filed AM 494 on February 22, 2023, which proposed to amend the bill to provide that no person may serve as a housing agency executive director, for a city of the metropolitan class, unless if that person also lives in the county containing such city.  There has been no further legislative action. 

LB 563 (Dorn) proposed to appropriate $250,000 in each of the next two years to the State Historical Society.  The bill directed the Society to contract with programs that provide educational programming and technical expertise related to downtown or main street revitalization, business growth and historical preservation.  On January 19, 2023, the Legislature referred this bill to the Appropriations Committee, which held a hearing on March 1, 2023.  There has been no further legislative action. 

LB 621 (McDonnell) (E) proposed to expand eligible activities under the Site and Building Development Fund to include grants to governmental subdivisions and Nebraska nonprofit organizations for the construction of an outdoor soccer stadium with a capacity of no more than 10,000 seats.  The bill also proposed to appropriate $50,000,000 from the Cash Reserve Fund to the Site Building Development Fund on July 15, 2023. On January 19, 2023, the Legislature referred this bill to the Banking, Commerce and Insurance Committee, which held a hearing on January 30, 2023.  There has been no further legislative action. 

LB 622 (McDonnell) proposed to redefine “covered property” in the Sports Arena Facility Financing Assistance Act (“Act”) to include any real property, as of the date of application, is part of a project previously approved under the Act or a project previously approved under the Convention Center Facility Financing Assistance Act. The bill also proposed to expand the definition of “eligible sports arena facility” to include any large public stadium in which initial occupancy occurs on or after March 1, 2025. Last, LB 622 proposed to define “Large public stadium” as a publicly owned open-air facility that primarily includes an outdoor field that may include some indoor areas used for competitive sports.  

On January 19, 2023, the Legislature referred this bill to the Revenue Committee.  There has been no further legislative activity.

LB 623 (McDonnell) proposed to redefine “eligible sports arena facility” under the Sports Arena Facility Financing Assistance Act to include any enclosed, temperature-controlled building owned by a public entity or nonprofit organization that is primarily used for live music performances with a capacity of at least 2,500, but no more than 3,500 people. 

On January 19, 2023, the Legislature referred this bill to the Revenue Committee.  There has been no further legislative activity. 

LB 633 (McKinney) (E) proposed to require the Department of Economic Development to contract with a private contractor which has a headquarters in Nebraska to market financial incentives provided by the State of Nebraska for key industries in Nebraska.  The financial incentives to be marketed would include, but not be limited to, those created under the Business Innovation Act and the Site and Building Development Act. 

On January 20, 2023, the Legislature referred this bill to the Banking, Commerce and Insurance Committee, which held a hearing on January 30, 2023.  There has been no further legislative action. 

LB 662 (Ballard) proposed to amend the Right to Farm Act to prohibit most nuisance actions against agricultural operations.  Under the bill, the only such nuisance actions that could stand are those brought by a person who either (a) owns a majority interest in real property that is within one-half mile of the defendant and affected by the alleged nuisance or (b) can show a violation of federal, state or local law.  Commonly accepted agricultural practices, as well as employment of new technology or changes in the type of farm product produced, could not give rise to nuisance liability. 

On January 20, 2023, the Legislature referred this bill to the Agriculture Committee, which held a hearing on February 14, 2023.    Senator Hunt filed AM 1848 and AM 1849 on May 18, 2023, that proposes to broaden LB 662 so that a violation of any federal, state, or local law, as opposed to only such laws relating to agricultural operations, subject an agricultural operation to being claimed as a nuisance under the Nebraska Right to Farm Act.  There has been no further legislative action.    

LB 714 (Cavanaugh, J.) proposed to amend provisions of the Nebraska Affordable Housing Act to allow for-profit entities to receive assistance under the Nebraska Affordable Housing Act, but only for new funds as of January 1, 2023 that have been transferred from the General Fund or Cash Reserve Fund to the Affordable Housing Trust Fund. The bill would also appropriate $25,000,000 from the General Fund for fiscal year 2023-24 and fiscal year 2024-25 to the Affordable Housing Trust Fund.  On January 20, 2023, the Legislature referred this bill to the Health and Human Services Committee, which held a hearing on February 24, 2023.  There has been no further legislative action. 

Energy & Renewable Energy

New Legislation Introduced in 2024:LB 1072 (Dungan) proposed to establish a sales and use tax credit for purchased sustainable aviation fuel.  Qualifying aviation fuel must (1) either meet the American Society for Testing and Materials International Standard D7566 or the Fischer-Tropsch provisions of the American Society for Testing and Materials International Standard D1655, Annex A1; (2) if purchased before June 1, 2028, be derived from biomass resources, waste streams, renewable energy sources, or gaseous carbon oxides, and if purchased after June 1, 2028, only from domestic biomass resources; (3) not be derived from palm derivatives; and (4) has at least a 50% lifecycle greenhouse gas emissions reduction as compared to petroleum-based jet fuel as calculated by the bill.  The tax credit amount would be $1.50 per gallon of sustainable aviation fuel purchased. 

On January 10, 2024, the Legislature referred LB 1072 to the Revenue Committee, which held a hearing on January 25, 2024.  On January 24, 2024, Senator Dungan filed AM 2110, proposing to make the tax credit refundable, and, adding definitions to the bill.  There has been no further legislative action. 

LB 1119 (Dungan) proposed to prohibit any homeowner association or similar entity from enforcing or creating any restrictive covenants that disallows the placing of solar energy collectors, generators, or similar facilities, on real property.  This bill would have provided homeowners a civil cause of action for any homeowners association or similar entity that violates this bill. 

The Legislature referred LB 1119 to the Judiciary Committee on January 11, 2024, which held a hearing on January 25, 2024.  There has been no further legislative action.

LB 1140 (Erdman) proposed to make the transportation or storage of carbon dioxide a Class IV felony.  Senator Erdman withdrew the bill on January 19, 2024. 

LB 1369 (Cavanaugh, J.) proposed to prohibit a local distribution utility from denying or refusing interconnection between its local distribution system and an agricultural self-generation facility.  The bill defines such facilities as those that generate electricity via methane, wind, solar, biomass, hydropower, or geothermal resources, controlled by an owner-generator, located on the owner-generator’s land, whether owned or leased, used for agricultural purposes, with a rated capacity of no more than 100 kw, and is not used for net metering. 

The Legislature referred LB 1369 to the Natural Resources Committee on January 18, 2024, which held a hearing on January 31, 2024.  The committee filed AM 2707 on March 5, 2024, which clarified the definition of agricultural self-generation facility.  The Legislature placed LB 1369 on General File on March 5, 2024.  There has been no further legislative activity. 

Carryover Legislation Introduced in 2023:

LB 49 (Dungan) proposed to prohibit the imposition or enforcement of any covenant or other land restriction prohibiting the installation or use of solar energy infrastructure.  This bill also would find solar and wind energy sources are a necessary alternative to fossil fuels.  On January 9, 2023, the Legislature referred this bill to the Judiciary Committee. 

The Legislature referred LB 49 to the Judiciary Committee on January 9, 2023, which held a hearing on February 23, 2023.  There has been no further legislative action.

LB 255 (Brewer) proposed to limit certain public power districts’ ability to develop renewable energy resources.  This bill would prohibit Omaha Public Power District, Lincoln Electric System and Nebraska Public Power District from exercising their power of eminent domain to acquire any property for renewable energy generation.  This bill would have also limited the definition of “privately developed renewable energy generation facility” to remove any facilities that the foregoing entities own, and it would prohibit those entities from becoming a qualified owner in any new C-BED project or submitting any special generation application for renewable energy generation under Nebraska Revised Statutes section 70-1014.01.  The Legislature referred this bill to the Natural Resources Committee on January 12, 2023.  

The Legislature referred LB 255 to the Natural Resources Committee on January 12, 2023, which held a hearing on February 22, 2023.  There has been no further legislative action.

LB 450 (Brewer) proposed to amend the Integrated Solid Waste Management Act to prohibit the land disposal of wind turbine blades and their component parts.  On January 18, 2023, the Legislature referred this bill to the Natural Resources Committee, which held a hearing on February 8, 2023.  The Legislature placed this bill on General File on March 6, 2023.  There has been no further legislative action. 

LB 541 (Lowe) proposed to require for the nomination and election of public power and public power and irrigation district directors to appear on a partisan ballot.  AM 1062 (Government, Military and Veterans Affairs Committee) amended LB 541 so only public power district with more than $500 million dollars in gross annual revenue would move to the partisan ballot at the Primary Election.  Under existing law, the threshold gross annual revenue amount is $40 million dollars.  Nebraska Revised Statutes section 32-606(2). 

Despite Senator Cavanaugh’s several attempts to kill LB 541, by striking its enacting clause, via AM 234, and by striking each of LB 541’s seven sections, via FA 356, 357, 358, 359, 360, 361, and 362, the bill is currently in Select File as of January 31, 2024.  There has been no further legislative action. 

LB 566 (Bostelman) (E) proposed to direct the Natural Resources Committee to study the economic impacts of an increased reliance on intermittent renewable energy.  The Committee would need to support a report to the Legislature by November 15, 2023. 

The Legislature referred LB 566 to the Executive Board on January 19, 2023, which held a hearing on February 24, 2023.  The Legislature placed this bill on General File on March 21, 2023.   There has been no further legislative action.

LB 636 (Albrecht) proposed to prohibit political subdivisions from enacting regulations that have the effect of restricting or prohibiting the types of permissible fuel sources by natural gas utilities, natural gas transmission companies or propane providers.

The Legislature referred LB 636 to the Natural Resources Committee on January 20, 2023, which held a hearing on February 8, 2023.  The Legislature placed this bill on General File on March 6, 2023.   There has been no further legislative action.

LB 725 (Dungan) proposed to prohibit certain electric companies and electric cooperative corporations from using ratepayer proceeds to campaign or lobby in elections.  Violation of that ban could result in a criminal prosecution.  On January 20, 2023, the Legislature referred this bill to the Natural Resources Committee, which held a hearing on March 2, 2023.  There has been no further legislative action.

LB 726 (Dungan) proposed the Nebraska Electric Consumer Right to Transparency and Local Control Act.  The Act would require each electric utility to publish the following information on its website: (1) board meeting dates, times and locations; (2) board meeting agendas; (3) board meeting minutes; (4) current rate schedules and fees, rents and other charges; (5) a full and complete statement of receipts and disbursements of the electric utility; (6) the fiscal year budget; (7) service territory, if applicable; (8) a list of all board members; (9) board member district and subdistrict boundaries; and (10) a method by which to contact board members and the electric utility’s staff. 

The Legislature referred LB 726 to the Natural Resources Committee on January 20, 2023, which held a hearing on March 2, 2023.  There has been no further legislative action.

Governmental & Municipal Law

New Legislation Introduced in 2024:

LB 837 (Lowe) (E) proposed to allow for the division of voting precincts, to amend public power and irrigation district operating areas and form subdivisions that follow the newly divided voting precincts, and to remove the requirement of pre-approval by the Nebraska Secretary of State for voting precinct division. 

The Legislature referred LB 837 to the Natural Resources Committee on January 5, 2024, which held a hearing on February 8, 2024.  There has been no further legislative action.

LB 866 (Bostelman) proposed to allow a former director, officer, or employee of an electric utility or elective state officer within the last four (4) years, to serve on the Nebraska Power Review Board (“Board”).  This bill would only permit one (1) such individual to serve on the Board at a time.  This individual would have to abstain from any action involving the applicable electric utility for four (4) year after such person’s membership on the Board, and to increase the compensation of the members of the Board.  The bill also increases the compensation of Board members from $60.00 to $100.00 per day of actual and engaged participation on the Board, and increases the total amount per year from $6,000.00 to $7,000.00. 

The Legislature referred LB 866 to the Natural Resources Committee on January 5, 2024, which held a hearing on January 24, 2024.  There has been no further legislative action.

LB 947 (Day), as amended by AM 2418 (Urban Affairs Committee), proposed to amend the Building Construction Act to allow for virtual inspections by a state agency, county, city or village, if (1) the building is less than three stories and 10,000 square feet, (2) the building permit holder or applicant provides a list of personnel completing the work onsite, and (3) the virtual inspection is live.  The bill also allows for nonstructural permits and re-inspections to be conducted using video or photo documentation instead of in-person inspection.   

The Legislature referred LB 947 to the Urban Affairs Committee on January 8, 2024, and placed the bill on General File, as amended, on March 20, 2024.  There has been no further legislative activity. 

LB 950 (Linehan) proposed a new method for collecting occupation taxes where the city levying the tax will continue collection and upon January 1, 2025, the Tax Commissioner shall collect the tax concurrently with its collection of state sales and use taxes.  The Tax Commissioner would remit monthly proceeds to the imposing city after retaining a three-percent (3%) administrative fee.

The Legislature referred LB 950 to the Revenue Committee on January 8, 2024, which held a hearing on February 23, 2024.  There has been no further legislative action.

LB 951 (Linehan) proposed to enact the “Public Officials on Private Boards Open Meetings Act.” This act would require private entities, of which public officials serve on the governing board of, to publicize meetings of its governing board meetings.  This act very closely resembles the Open Meetings Act that all applies to all public bodies.

This act excludes meetings that are voted to be held privately by a majority of its voting members for certain matters.  These would include but are not limited to such as pending litigation, strategy discussion, or negotiations.  An exception would also apply for emergent situations where it would not be reasonably possible to provide the public notice and access to such a meeting, however, the nature of the emergency would need to be reflected in the meeting minutes.

The Legislature referred LB 951 to the Government, Military and Veterans Affairs Committee on January 8, 2024, which held a hearing on February 15, 2024.  There has been no further legislative action.

LB 963 (Wayne) proposed to require the Nebraska Attorney General, beginning January 1, 2025, to designate a district attorney for each of the district court judicial districts to serve as county attorney for each of the counties within the judicial districts.  Designated district attorneys and other staff similarly assigned would be full-time employees of the Office of the Attorney General. 

The Legislature referred LB 963 to the Judiciary Committee on January 8, 2024, which held a hearing on February 7, 2024.  There has been no further legislative action.

LB 988 (Linehan) (E) proposed to require that any action by a political subdivision or municipality to issue bonds, increase indebtedness, increase a tax levy or otherwise increase the property tax liability of its constituents must be on the general ballot during the State of Nebraska’s general election.  More specifically, this bill required the following items to be on the general ballot:  

• For a county, city, village, or municipality to issue aviation field bonds or increase its tax levy in lieu of the same; municipal bonds for construction of railroads, steam railroads, or electric or gas railroads, or other similar internal improvements; joint public agency bonds; general obligation bonds, excluding refunding bonds; bonds to pay for county employee wages; coupon bonds; bonds to raise money for advances and loans for those negatively impacted by catastrophic weather events; bonds by a municipality that receives assistance under the Sports Arena Facility Financing Assistance Act; bonds by a municipality that owns qualified property under the Property Assessed Clean Energy Act; bonds relating to the acquisition, construction and maintenance of bridges or jails; and issue bonds relating to the acquisition, construction, or maintenance of light and power lights, utility distribution systems, and transmissions lines after a public referendum so requires; and to increase an airport authority’s tax levy.
• For a county to take action relating to county fairs and county fair boards; to assess taxes in an aggregate amount exceeding $0.50/$100 taxable property; to issue general obligation bonds; and to accept an economic development program.
• For a school system to issue school district bonds and bonds relating to lease-purchase plans for capital construction projects exceeding $25,000 or to provide housing facilities for school employees of any Class III district; to exceed its applicable growth percentage; and for a joint entity issue bonds.
• For cities of the metropolitan class to take any action relating to the acquisition, construction, and maintenance of bridges, including issuing of bonds to pay for condemnation awards, parks, and the bridges in general; for issuance of franchise or permits, or bonds for laying of pipelines on public property within metropolitan utilities district.
• For cities of the first class to borrow money or pledge property and credit of city upon its negotiable bonds in relation to waterworks projects, parks and recreation, public grounds, pipelines, or pursuant to the Off-Street Parking District Act, or to acquire land for parks, parkways, and boulevards.
• For villages cities of the second class to borrow money and pledge property for negotiable bonds; any issuance of any bonds or indebtedness, increases in property tax levies, and decisions to exceed levy limit that requires voter approval; to issue bonds or incur indebtedness relating to flood control projects or relating to water supply; to issue bonds relating to pipelines, erection of power plants and distribution systems and transmission lines; and to acquire land for cemeteries and parks and recreation facilities.

The Legislature referred LB 988 to the Government, Military and Veterans Affairs Committee on January 9, 2024, which held a hearing on February 14, 2024.  There has been no further legislative action.

LB 1003 (Hansen) proposed to amend the Child Care Licensing Act to prohibit cities, villages, and counties from adopting rules, regulations, or ordinances that establish physical well-being and safety standards for child care centers subject to state licensure requirements that conflict with the Nebraska Department of Health and Human Services staff-to-child ratios. 

The Legislature referred LB 1003 to the Health and Human Services Committee on January 9, 2024, which held a hearing on February 2, 2024.  There has been no further legislative action.

LB 1020 (Cavanaugh) proposed to require any private entity that is a public party to a public contract to provide copies of any requested records relevant to the public contract as requested by the member of the Legislature.

The Legislature referred LB 1020 to the Executive Board on January 9, 2024, which held a hearing on February 1, 2024.  There has been no further legislative action.

LB 1112 (Clements) proposed to require all municipalities requiring a permit for the development of communications infrastructure to publish certain information relating to the permit application process on the municipality’s website, limits the permit application fee to $100.00 and the permit issuance fee to $250.00, and prohibits any moratorium on the issuance of such permits.  The bill required the municipality to provide confirmation of receipt and communication as to any incomplete application components within five (5) days of receipt, and to render a decision on the permit within thirty (30) days of receipt. 

The Legislature referred LB 1112 to the Transportation and Telecommunications Committee on January 11, 2024, which held a hearing on February 12, 2024.  There has been no further legislative action.

LB 1165 (Lowe) proposed to require counties issuing zoning regulations to consider a multitude of factors concerning growth and adequacy of utilities, and, to require cities of the metropolitan, primary and first class to regulate duplex housing in the same manner as single-family residences. 

The Legislature referred LB 1165 to the Urban Affairs Committee on January 16, 2024, which held a hearing on January 30, 2024.  There has been no further legislative action.

LB 1166 (Lowe) proposed to allow municipalities to adopt zoning regulations that allow for an “accessory dwelling unit,” defined as a secondary dwelling unit on a parcel that is smaller than the primary dwelling unit, provides adequate utilities and other necessaries and otherwise complies with all housing codes, as a use by right.  The bill imposed further restrictions on the extent that municipalities would be able to regulate and assess fees for the development of accessory dwelling units. 

The Legislature referred LB 1166 to the Urban Affairs Committee on January 16, 2024, which held a hearing on January 30, 2024.  There has been no further legislative action.

LB 1174 (Hansen), as amended by AM 2506 (Government, Military and Veterans Affairs Committee), proposed to remove the previous legislative declaration that all section lines be public roads and instead allow the county board whose zoning jurisdiction the section line is within make such declaration via resolution.  The bill would also allow county boards to, by resolution, to require the vacation or abandonment of any public road if it is in the best interest of the public. 

The Legislature placed LB 1174 on General File on February 20, 2024.  There has been no further legislative activity.

LB 1183 (Bostar) proposed to change the term of a consolidated county office that includes a county assessor from four years to two, starting on July 1 in the year following election and expiring on June 30 of the last year, beginning July 1, 2025.  The bill would also change of position of county assessor to an appointed rather than elected position, beginning July 1, 2025. 

The Legislature referred LB 1183 to the Revenue Committee on January 16, 2024, which held a hearing on February 7, 2024.  There has been no further legislative action.

LB 1191 (Conrad) proposed to remove the requirement that the Nebraska Attorney General bring an action to determine the validity of an Act of the Nebraska Legislature that the Nebraska Attorney General has opined to be unconstitutional, and, provide that the sole remedy available in such scenario is for the Attorney General to bring an action against the administrative agency charged with enforcing the unconstitutional act to enjoin it from doing so. 

The Legislature referred LB 1191 to the Executive Board on January 16, 2024.  The Legislature referred the bill to the Government, Military and Veterans Affairs Committee on January 18, 2024, which held a hearing on February 22, 2024.  The Legislature placed the bill on General File on February 23, 2024.  There has been no further legislative action.

LB 1229 (Wayne) proposed to increase the number of members of the Nebraska Investment Finance Authority (“Authority”) from nine to twelve by adding three (3) members at large.  The bill also, beginning on July 1, 2025, would transfer the following duties and functions to the Authority:

• Housing Division of the Nebraska Department of Economic Development, including the employment of all persons and any applicable appropriations and salary limitations as provided by the 108th Nebraska Legislature;
• Nebraska Department of Economic Development under the Middle Income Workforce Housing Investment Act, the Municipal Density and Missing Middle Housing Act, the Nebraska Affordable Housing Act, and the Rural Workforce Housing Investment Act;
• The authority to administer the U.S. Department of Housing and Urban Development HOME fund allocation programs; and
• The administration of Nebraska state fund allocation programs.

The Legislature referred LB 1229 to the Banking, Commerce and Insurance Committee on January 17, 2024, which held a hearing on February 6, 2024.  There has been no further legislative action.

LB 1246 (Brewer) proposed to clarify that the municipal powers of county boards shall be exercised by the Board of Supervisors for counties under township organization, by the Board County Commissioners in counties not under township organization. 

The Legislature referred LB 1246 to the Government, Military and Veterans Affairs Committee on January 17, 2024, which held a hearing on February 29, 2024.  There has been no further legislative action.

LB 1366 (Cavanaugh, J.) proposed to require that any political subdivision exercising its power of eminent domain must provide an appraisal of the property at the time of negotiations.  The bill would also require the pre-approval of a majority of the governing body of the county, city or village where the property is located before a political subdivision may condemn property outside of its boundaries or before a private entity exercises condemnation powers. 

The bill required the pre-approval of the Public Service Commission of the entire pipeline route before a private entity may condemn any portion of land for the use of a pipeline.  Lastly, the bill required that a condemner re-sell the condemned property back to the condemnee, for the same amount of the condemnation award, if the condemned property is no longer used or no longer necessary for the public use it was condemned for. 

The Legislature referred LB 1366 to the Judiciary Committee on January 18, 2024, which held a hearing on February 2, 2024.  There has been no further legislative action.

LB 1375 (Lowe; at the request of Governor Pillen) proposed to limit county boards’ discretion to deny conditional use permits within its zoning jurisdiction and to establish a review timeline.  In considering a conditional use permit, a county board may not consider nor condition its approval on the applicant’s compliance with any criteria but the county zoning regulations, specifically excluding state and federal agency rules and regulations.  If the county board determines that an applicant has satisfied the county zoning requirements, this bill required it to approve the application. 

This bill also proposed to amend the county conditional use permit application procedure.  First, the bill would allow a county planning commission to, in lieu of holding public hearings prior to issuing its recommendation to the county board, accept public written comments.  Last, the bill would impose a 90-day deadline from the county’s receipt of the conditional use permit application for it to render a decision.  If no such timely decision is made, the bill would consider the conditional use application approved. 

The Legislature referred LB 1375 to the Government, Military and Veterans Affairs Committee on January 18, 2024, which held a hearing on February 7, 2024.  There has been no further legislative action.

Carryover Legislation Introduced in 2023:

LB 21 (Wayne) proposed to increase the number of city council members in cities of the metropolitan class from seven to nine.  This increase would take effect beginning with the 2025 general election.  At least six weeks prior the filing deadline for a city council or mayoral candidate in the 2025 general election, the city council of a city of the metropolitan class would have to divide the city into nine city council districts of a “compact and contiguous territory.” 

The Legislature referred this bill to the Urban Affairs Committee on January 9, 2023, which held a hearing on January 31, 2023.  On February 10, 2023, the Legislature placed this bill on General File.  There has been no further legislative action.

LB 133 (Cavanaugh, J.) proposed to make any entity, whether public or private, that exercises the power of eminent domain a “public body” subject to the Open Meetings Act. 

The Legislature referred LB 133 to the Government, Military and Veterans Affairs Committee on January 1, 2023, which held a hearing on February 10, 2023.  There has been no further legislative action.

LB 171 (McKinney) proposed to eliminate sections in the Metropolitan Utilities District Act providing for an “outside member” on the board of directors of a metropolitan utilities district.  This bill provides that the seven members of the board of directors of a metropolitan utilities district will be chosen by the registered voters within each respective election subdivision of the district and that terms of the members will be staggered. 

The Legislature referred this bill to the Urban Affairs Committee on January 11, 2023, which held a hearing on February 21, 2023.  On March 6, 2023, the Legislature placed this bill on General File.  

LB 224 (McKinney) proposed the Aid to Municipalities Act.  The Act proposed to provide state aid to municipalities in the form of grants which may be used to pay for infrastructure projects within the municipalities.  The Act would appropriate $15,000,000 to the Department of Economic Development annually to allocate to municipalities for qualifying infrastructure projects. 

The Legislature referred LB 224 to the Urban Affairs Committee on January 12, 2023, which held a hearing on February 21, 2023.  The Legislature placed this bill on General File on March 7, 2023.  There has been no further legislative action. 

LB 246 (McKinney) proposed to subject any sanitary and improvement district within the extraterritorial zoning jurisdiction of a municipality to the municipality’s comprehensive development plan, affordable house action plan, municipal zoning regulations and other reasonable planning requirements.  In addition, the sanitary and improvement district would need to obtain prior approval from the municipality for any new plans or contracts under Nebraska Revised Statutes section 31-740. 

The Legislature referred LB 246 to the Urban Affairs Committee on January 12, 2023, which held a hearing on January 24, 2023.   The Legislature placed this bill on General File on February 10, 2023.  There has been no further legislative action.

LB 312 (Lowe) proposed to add provisions for the withholding of money due to noncompliance with budget limits and annual audits.  This bill would have codified that a governmental unit would continue to forfeit state aid until State Treasurer received notice of compliance from the Auditor of Public Accounts.  The bill would have further prohibited any governmental until to for future distributions of state aid if the government unit failed to reach compliance within twelve months after notice of delinquency.  On January 13, 2023, the Legislature referred this bill to Government, Military and Veterans Affairs Committee.  The Legislature placed this bill on General File on February 16, 2023.  

The Legislature referred LB 312 to the Government, Military and Veterans Affairs Committee on January 13, 2023, which held a hearing on February 9, 2023.   The Legislature placed this bill on General File on February 16, 2023.  There has been no further legislative action.

LB 322 (Linehan) proposed to prohibit any joint public agency created on or after October 1, 2023 from exercising any power or authority relating to tax.  On January 13, 2023, the Legislature referred this bill to the Revenue Committee. 

The Legislature referred LB 322 to the Revenue Committee on January 13, 2023, which held a hearing on March 9, 2023.  There has been no further legislative action.

LB 325 (Dungan) proposed to amend the State Tort Claims Act and Political Subdivisions Tort Claims Act to immunize the state and political subdivisions from claims alleging a failure to control or protect a person over whom the state or political subdivision has taken charge. 

The Legislature referred this bill to the Judiciary Committee on January 13, 2023, which held a hearing on February 24, 2023.  The Legislature placed LB 325 on General File, pursuant to Senator Slama’s MO 1264.  There has been no further legislative action.   

LB 360 (Cavanaugh, M.) proposed the Office of Inspector General of Nebraska Procurement Act to deter and identify fraud, waste and abuse in the state’s procurement system across all state agencies.  On January 17, 2023, the Legislature referred this bill to the Government, Military and Veterans Affairs Committee. 

The Legislature referred this bill to the Government, Military and Veterans Affairs Committee on January 17, 2023, which held a hearing on February 10, 2023.  There has been no further legislative action.  

LB 394 (Erdman) (E) proposed standardize damages calculations in eminent domain proceedings and give a premium to owners of agricultural land.  Damages presently equal the fair and reasonable market value of the damages.  Douglas Cnty. Sch. Dist. No. 10 v. Tribedo, LLC, 307 Neb. 716, 726 (2020).  This bill would codify that rule for non-agricultural land and allow for reasonable severance damages and abstracting expenses.  For agricultural land, however, this bill would set damages at two times the fair market value of the condemned property, in addition to reasonable severance damages, abstracting expenses and the replacement costs for any dwellings, garages, sheds, barns, wells, septic systems, fences and other permanent structures. 

The Legislature referred this bill to the Judiciary Committee on January 17, 2023, which held a hearing on February 23, 2023.  There has been no further legislative action. 

LB 534 (Slama) (E) proposed to appropriate $150,000,000 of federal funds from the American Rescue Plan Act of 2021 to the Department of Environment and Energy to provide grants for small and rural communities to address nitrate in drinking water.  The Department would administer the funds via the Drinking Water State Revolving Fund to facilities at which drinking water test levels are above 10 parts per million of nitrate.  On January 19, 2023, the Legislature referred this bill to the Appropriations Committee. 

The Legislature referred this bill to the Appropriations Committee on January 19, 2023, which held a hearing on March 13, 2023.  There has been no further legislative action. 

LB 559 (Blood) proposed to allow the electronic filing of statements of financial interests under the Nebraska Political Accountability and Disclosure Act.

-On January 19, 2023, the Legislature referred this bill to the Government, Military and Veterans Affairs Committee, which held a hearing on March 23, 2023.  There has been no further legislative activity. 

LB 637 (Albrecht) proposed to amend the Open Meetings Act to require public meetings, except during closed sessions, to permit members of the public to speak at each meeting.  On January 20, 2023, the Legislature referred this bill to the Government, Military and Veterans Affairs Committee, which held a hearing on February 24, 2023.

Senator Hunt filed AM 616 and AM 617 on February 28, 2023, making minimal changes to the bill.  The Legislature placed this bill on General File on March 22, 2023.   There has been no further legislative action.

LB 707 (Dungan) (E) proposed the Transforming Cities of the Primary Class Program to award up to $10,000,000 in grants to cities of the primary class for the purpose of constructing housing to address affordable housing needs.  The bill proposes to appropriate $10,000,000 to the Affordable Housing Trust Fund.  On January 20, 2023, the Legislature referred this bill to the Urban Affairs Committee.  The Legislature placed this bill on General File on March 7, 2023.  

The Legislature referred LB 707 to the Urban Affairs Committee on January 20, 2023, which held a hearing on February 21, 2023.  The Legislature placed this bill on General File on March 7, 2023.  There has been no further legislative action. 

Real Estate & Financial Transactions

New Legislation Introduced in 2024:

LB 1127 (Bosn) proposed to require that all transportation network company drivers, such as Uber and Lyft drivers, for example, may only use their personal vehicle for such activity so long as it complies with the Motor Vehicle Registration Act. 

The Legislature referred LB 1127 to the Transportation and Telecommunications Committee on January 11, 2024, which held a hearing on February 5, 2024.  There has been no further legislative action. 

LB 1217 (Bostar) proposed to exempt from property taxes “skilled nursing facilities,” “nursing facilities,” and “assisted-living facilities” that provide housing for Medicaid beneficiaries.  The exemption would be a percentage of the property taxes otherwise due.  The percentage would be equal to the average percentage of beds the facility provides to Medicaid beneficiaries over the most recent three-year period.  This bill would also exempt “common areas” of approved student housing at educational institutions from property taxes.

This bill also required that owners of rent-restricted housing file estimated income and expense reports with the Rent-Restricted Housing Projects Valuation Committee in the owner’s first year of operation.  The county assessor would then to use this figure in calculating the rent‑restricted housing’s three-year average to then determine the property’s valuation. 

Last, the bill established “sales-restricted houses” which are residential properties subject to a deed restriction that restricts the ability of the owner to sell the property.  The county assessor would use the lesser of (a) the value of the property at its unrestricted appraised value and (b) the maximum sales price allowed for the property under the deed restriction, as the property’s assessed value.

The Legislature referred LB 1217 to the Revenue Committee on January 17, 2024, which held a hearing on February 15, 2024.  There has been no further legislative action. 

LB 1219 (Cavanaugh, J.) proposed to amend the state building code to adopt Chapter 13, Energy Efficiency, of the 2021 International Building Code, which adopts by reference the 2021 International Energy Conservation Code.  The bill adopted Chapter 11, Energy Efficiency of the 2021 International Residential Code.  Both chapters regulate the design and construction of buildings as it relates to energy efficiency. 

The Legislature referred LB 1219 to the Urban Affairs Committee on January 17, 2024, which held a hearing on February 13, 2024.  There has been no further legislative action.

LB 1379 (Dover) proposed the Housing Aid Fund (“Fund”).  The Fund would be used to administer a grant program for down payment assistance for eligible homebuyers.  Eligible homebuyers would include applicants with a household income of less than or equal to 150% of the area median income.  The bill provides a schedule of grant providing percentage allocations by the type of city, as follows: Cities of the Primary Class (15%); Cities of the Metropolitan Class (30%); and Cities of the First and Second Class and villages (55%).

The Legislature referred LB 1379 to the Revenue Committee on January 18, 2024, which held a hearing on February 28, 2024.  There has been no further legislative action. 

LB 1405 (Wayne) proposed to prohibit a corporation, hedge fund, or other business from purchasing single-family housing in Nebraska unless if that entity is domiciled in Nebraska and its principal members are Nebraska residents. 

The Legislature referred LB 1405 to the Banking, Commerce and Insurance Committee on January 18, 2024, which held a hearing on February 12, 2024.  There has been no further legislative action. 

LB 1409 (Bostar) proposed to amend the Nebraska Condominium Act so that declarations of covenants that require approval of certain actions by unit owners are only enforceable with respect to actions to subdivide or that affect the mortgagees of the unit’s priority.  The bill would also allow condominium associations to rely on public information in identifying mortgagees.  Last, the bill would void any amendment to a condominium association’s declaration of covenants if a mortgagee is entitled is and did not receive adequate notice.  Any such amendments would only be void as to the mortgagee that was deprived of notice. 

The Legislature referred LB 1409 to the Banking, Commerce and Insurance Committee on January 18, 2024, which held a hearing on February 12, 2024.  There has been no further legislative action. 

Carryover Legislation Introduced in 2023:

LB 175 (Dungan) proposed to adopt the Residential Tenant Clean Slate Act.  Under the Act, a tenant could petition a trial court for an order granting “clean slate relief.”  Such relief would require the court to seal the tenant’s eviction records and prevent their dissemination. 

On January 11, 2023, the Legislature referred this bill to the Judiciary Committee, which held a hearing on March 8, 2023.  The Legislature placed the bill on General File on February 27, 2024.   Thereafter, several amendments were filed and Senator Dungan’s MO 1238, invoking cloture, failed.  There has been no further legislative activity on this bill. 

LB 186 (Cavanaugh, J.) proposed to adopt the Unlawful Restrictive Covenant Modification Act.  Under the Act, any person whose property is under a restrictive covenant that violates Nebraska Revised Statutes section 20-318 may petition the Register of Deeds to modify the covenant.  Section 20-318 enumerates discriminatory and other prohibited practices in leasing or conveying real estate.  The Register of Deeds must consult with the County Attorney and, if the modification is appropriate, replace the offending covenant with the modification. 

The Legislature referred LB 186 to the Judiciary Committee on January 11, 2023, which held a hearing on February 23, 2023.  There has been no further legislative action. 

LB 187 (Cavanaugh, J.) proposed to require that before any unrepresented tenant in Lincoln or Omaha faces a residential or mobile-home eviction proceeding, the court must appoint counsel for the tenant.  The county must pay for the cost of such counsel.  The landlord’s summons must also notify the tenant that he or she will have access to appointed counsel. 

The Legislature referred LB 187 to the Judiciary Committee on January 11, 2023, which held a hearing on March 8, 2023.  There has been no further legislative action. 

LB 208 (Bostar) proposed to prohibit counties from prohibiting the use of residential property for short-term rentals.  This bill defines short-term rentals as residential properties that tenants rent for no longer than 30 consecutive days at a time.  Under this bill, a county may only regulate such properties for a legitimate health and safety reason or to prevent illegal activity. 

The Legislature referred LB 208 to the Government, Military and Veterans Affairs Committee on January 12, 2023, which held a hearing on February 8, 2023.  There has been no further legislative action.

LB 248 (Vargas) proposed to prohibit residential landlords from discriminating against renters on the basis of any “lawful source of income.”  Under this bill, lawful source of income includes income from social security, child support, foster care subsidies, alimony, veteran’s benefits, any form of housing assistance payments or any form of government subsidy or assistance.  This bill would also create the Landlord Guarantee Program, which would provide grants to reimburse eligible landlords for unpaid rent or damages arising from residential tenancies.  The Equal Opportunity Commission would have $50,000 from which to award such grants. 

The Legislature referred LB 248 to the Judiciary Committee on January 12, 2023, which held a hearing on March 8, 2023.  There has been no further legislative action. 

LB 270 (McKinney) proposed to require residential landlords to replace any lead service lines on the premises with modern service lines.  Additionally, this bill would require any municipality that has adopted a rental registration ordinance to notify tenants of any code violations the municipality finds.  Before condemning a rental property for violations of code, the municipality would need to meet with tenants and have a plan for providing their housing, food, transportation, moving expenses, and legal services. 

The Legislature referred LB 270 to the Judiciary Committee on January 12, 2023, which held a hearing on March 8, 2023.  There has been no further legislative action. 

Community Development Law & Tax Increment Financing (TIF)

New Legislation Introduced in 2024:

LB 948 (McDonnell) proposed certain additional requirements for all redevelopment contracts utilizing tax increment financing (TIF).  For one, all contractors and subcontractors subject to a redevelopment agreement must compensate all laborers and mechanics at least at the prevailing rate for the locality of the redevelopment project.  Two, at least fifteen-percent of the redevelopment contract labor must be from qualified apprentices.  These are defined as an individual that is represented by a 501(c)(5) exempt organization and that is employed by a Nebraska, registered apprenticeship program.  Three, each redeveloper, contractor and subcontractor under the redevelopment contract that has more than four employees must employ at least one qualified apprentice.  The qualified apprentice provisions are not required if an employer requests a qualified apprentice from a registered apprenticeship program and the request is denied or the program falls to respond to the request within five days. 

Senator von Gillern filed five floor amendments to LB 948, FA 298, 299, 300, 301, and 302, and a motion to bracket, MO 1291, until April 18, 2024.  The Legislature placed the bill on General File on February 20, 2024, and there has been no further legislative activity. 

1356 (Wayne) proposed to amend the Community Development Assistance Act (“Act”) to include inland port authorities and sports facility operations as “community services” within a community development area.  The bill would also allow inland port authorities that provide community services to a community development area to be deemed a “community betterment organization,” thus enabling the authority to apply for tax credit status as provided under the Act.  The bill also proposes tax credit status application submittal requirements and the criteria which the Department of Economic Development shall use in assessing the application(s). 

The Legislature referred LB 1356 to the Revenue Committee, on January 18, 2024, which held a hearing on February 1, 2024.  The Revenue Committee filed AM 3109, seeking to implement the CHIEF Act, which was successfully amended into, and signed into law as, LB 1344.   Please see the analysis of LB 1344 earlier in this article. 

There has been no further legislatively activity on LB 1356. 

Carryover Legislation Introduced in 2023:

LB 389 (Linehan) proposed to amend the Community Development Law to prohibit the a parcel of real property to have any ad valorem taxes divided as part of a redevelopment project if such parcel’s taxes had previously been divided during the preceding fifty years. 

The Legislature referred LB 389 to the Urban Affairs Committee on January 17, 2023, which held a hearing on January 31, 2023.  There has been no further legislative action. 

LB 746 (Cavanaugh, M.) proposed to amend the Community Development Law to restrict the division of taxes if the total amount of ad valorem taxes to be generated for any redevelopment project exceeds $20,000,000, unless the question of dividing the taxes has been submitted at a primary, general or special election and approved by voters.

 The Legislature referred LB 746 to the Urban Affairs Committee on January 20, 2023, which held a hearing on February 28, 2023.  There has been no further legislative action. 

Taxation & Tax Equalization and Review Commission (TERC)

New Legislation Introduced in 2024:

LB 893 (Ibach) proposed to amend the ImagiNE Nebraska Act (“Act”) to add qualified business equipment used in the “manufacturing of liquid fertilizer or any other chemical applied to agricultural crops, or the manufacturing of any liquid additive for a farm vehicle fuel,” so long as the taxpayer qualifies as provided under the Act, to the list of property eligible for property and sales tax.  

The Legislature referred LB 893 to the Revenue Committee on January 5, 2024, which held a hearing on February 15, 2024.  There has been no further legislative action. 

LB 949 (Linehan) proposed to require county assessors to annually assess all real property in their respective county altogether, instead of by class or subclass, and to allow inspections thereto to be conducted remotely.  This bill would also remove the requirement that the county assessor assure every parcel of real property in the county is inspected every six years.

The Legislature referred LB 949 to the Revenue Committee on January 8, 2024, which held a hearing on January 26, 2024.  There has been no further legislative action. 

LB 1006 (Walz) proposed to amend the Tax Equity and Educational Opportunities Support Act (“TEEOSA”) to change a school system’s income tax fund allocation to be 2.23 percent of the local system’s income tax liability for school years prior to school fiscal year 2025-26, and 20 percent of the local system’s income tax liability for school years thereafter. 

The Legislature referred LB 1006 to the Education Committee on January 9, 2024, which held a hearing on February 27, 2024.  There has been no further legislative action. 

LB 1019 (Holdcroft) proposed to require a county assessor or county clerk to correct assessment and tax rolls after any final order of an applicable administrative body or court, in addition to any actions before the county board of equalization. 

The Legislature referred LB 1019 to the Revenue Committee on January 9, 2024, which held a hearing on February 23, 2024.  There has been no further legislative action. 

LB 1067 (Clements) (E) proposed to (1) eliminate the Nebraska inheritance tax and (2) enact the State Prisoner Reimbursement Act (“Act”).  The Nebraska inheritance tax would be phased out between January 1, 2025, and January 1, 2028, by annually reducing the percentage of property subject to the tax.  The Act would also reimburse counties quarterly that house inmates until they are either (a) transferred to a Department of Correctional Services, (b) placed on probation, or released from custody.   

Several senators filed amendments to LB 1067, but the Legislature adopted only AM 2562 (Clements).  The Legislature placed LB 1067 on General File on February 15, 2024, and there has been no further legislative activity.   

LB 1113 (Meyer) proposed to amend the ImagiNE Act to include carbon capture equipment in the definition of “business equipment” thus qualifying it for property tax exemption.  AM 2122 (Revenue Committee) amends LB 1113 to include carbon dioxide. 

The Legislature referred LB 1113 to the Revenue Committee on January 11, 2024, which held a hearing on January 31, 2024.  The Legislature placed this bill on General File on February 28, 2024. There has been no further legislative action. 

LB 1114 (Bostar) proposed to enact the Endow Nebraska Act that would provide a nonrefundable income tax credit to qualifying taxpayers that make a qualified endowment gift to an “Endow Nebraska Qualified Community Foundation.”  The amount of the tax credit would be 15% of the qualified endowment gift.  The Act would allow for a total of $5,000,000.00 in tax credits per taxable year and $50,000.00 per taxpayer per taxable year. 

The Legislature referred LB 1114 to the Revenue Committee on January 11, 2024, which held a hearing on February 7, 2024.  There has been no further legislative action. 

LB 1177 (von Gillern) proposed to amend the exemptions to the state documentary tax to expand the allowable inter-family conveyance exemption, specifically including step relationships and deeds transferring property to a corporation or limited liability company wholly owned by a single shareholder, subject to certain requirements.   

The Legislature referred LB 1177 to the Revenue Committee on January 16, 2024, which held a hearing on January 24, 2024.  There has been no further legislative action. 

LB 1218 (Bostar) (E) proposed to amend the Motor Vehicle Registration Act to include a three-cent ($.03) per kilowatt hour (kWh) excise tax on electric energy used by commercial electric vehicle charging stations.  The bill would also except such charging stations from sales and use taxes if it is subject to the excise tax described above.  Last, the bill adds certain requirements for electric charging stations operators. 

AM 2611 (Erdman) proposed to require that all components of commercial electric vehicle charging stations be produced, manufactured, and assembled in the United States in order to eligible to receive program funds from the State of Nebraska. 

The Legislature referred LB 1218 to the Revenue Committee on January 17, 2024, which held a hearing on February 22, 2024.  There has been no further legislative activity. 

LB 1319 (Linehan) (E) proposed to repeal the sales tax exemption for the purchase of food and food ingredients using electronic benefits transfer (EBT) or with food coupons regulated by the United States Department of Agriculture.  This bill would also repeal the sales tax exemption for the gross receipts from the sale, lease, or rental or and the storage, use, or other consumption of tangible personal property and services acquired by a person operating a data center within the State of Nebraska.  

The Legislature referred LB 1319 to the Revenue Committee on January 18, 2024, which held a hearing on February 1, 2024.  There has been no further legislative action. 

LB 1342 (Wayne) proposed to exempt from sales and use taxes the gross receipts from the sales and purchase of electricity and natural gas for residential use. 

The Legislature referred LB 1342 to the Revenue Committee on January 18, 2024, which held a hearing on February 29, 2024.  There has been no further legislative action. 

LB 1362 (McDonnell) proposed to change the valuation of residential property.  This bill would valuate residential property at the property’s actual value but limit the annual valuation increase by 5% per year.  This bill would require an amendment to the Nebraska Constitution, thus, it would not take effect until Governor Pillen proclaims such a constitutional amendment.

The Legislature referred LB 1362 to the Revenue Committee on January 18, 2024, which held a hearing on February 23, 2024.  There has been no further legislative action. 

LB 1367 (Cavanaugh) proposed the Property Tax Circuit Breaker Act (“Act”).  The Act included a “circuit breaker system” for the Nebraska property tax system.  Qualified taxpayers, which the Act defined as those whose principal residence is in Nebraska and which the taxpayer resides at for at least six months of the taxable year, are eligible to receive a refundable income tax credit if the taxpayer’s property tax liability exceeds 5% of the taxpayer’s federal adjusted gross income. 

Being refundable, this tax credit would result in a tax refund if the tax credit amount is greater than the individual’s federally-taxable income.  The amount of the refundable income tax credit would be 50% of the taxpayer’s property taxes paid over the taxable year less 5% of the taxpayer’s adjusted gross income. 

The bill would also limited the amount of property taxes that can be imposed on a taxpayer’s principal residence, solely for purposes of the above calculation.  This limitation would be the property tax liability for a principal residence with a valuation equal to 200% of the average assessed value of a single-family residential property in the taxpayer’s county of residence. 

The Legislature referred LB 1367 to the Revenue Committee on January 18, 2024, which held a hearing on February 21, 2024.  There has been no further legislative action. 

Carryover Legislation Introduced in 2023:

LB 113 (McDonnell) (E) proposed to appropriate an additional $10,500,000 in each of the next two years to the Department of Economic Development.  The funds would aid the Community and Rural Development Program in contracting with the Nebraska Investment Finance Authority for developments eligible under 4 percent and 9 percent federal low-income housing credits. 

On January 10, 2023, the Legislature referred this bill to the Banking, Commerce and Insurance Committee, which held a hearing on January 31, 2023.  There has been no legislative activity on LB 113 this session. 

LB 209 (Bostar) proposed to provide certain tax exemptions to data centers.  This bill exempts from personal property tax any computers and related equipment that a person operating a data center in the state acquires and uses in the operation or maintenance of the data center.  In addition, this bill exempts from sales and use tax any tangible personal property, electricity or other fuel or computers and related equipment that the data center purchases for use. 

The Legislature referred LB 209 to the Revenue Committee on January 12, 2023, which held a hearing on March 1, 2023.  There has been no further legislative action. 

LB 211 (Blood) proposed to adopt the Property Tax Circuit Breaker Act.  The Act would provide a refundable income tax credit for qualifying agriculture taxpayers and qualifying residential taxpayers with limited income available to pay property taxes.  To carry out this exemption, the Department of Revenue would receive $74,000,000 in each of 2024 and 2025. 

The Legislature referred LB 211 to the Revenue Committee on January 12, 2023, which held a hearing on March 15, 2023.  There has been no further legislative action. 

LB 213 (Slama) (E) proposed to extend the application deadline under the Nebraska Job Creation and Mainstreet Revitalization Act to December 31, 2026, and to extend allocation of such credits therein to December 31, 2031.  This bill limited eligible expenditures to costs incurred for improvement of historically significant real property located in a city of the second class or village.  The original program was available to projects throughout Nebraska.  Also, under the Rural Workforce Housing Investment Act, this bill would reduce the required percentage of matching funds for applicants in a city of the second class or village. 

The Legislature referred LB 213 to the Revenue Committee on January 12, 2023, which held a hearing on February 24, 2023.  There has been no further legislative action.

LB 235 (Wayne) proposed an amendment under the ImagiNE Nebraska Act to redefine “economic development area” as any area that (1) exceeds 150 percent of the average statewide unemployment rate and (2) falls below the poverty rate in at least 20 percent of its area.  This would entitle residents and developers in such areas to certain tax advantages, including taxpayer-sponsored childcare. 

The Legislature referred this bill to Revenue Committee on January 12, 2023.  The Legislature placed this bill on General File on March 21, 2023, and advanced it to Enrollment and Review on February 12, 2024.  There has been no further legislative activity. 

TELECOMMUNICATIONS

New Legislation Introduced in 2024:

No legislative bills introduced in this category. 

Carryover Legislation Introduced in 2023:

LB 44 (Dungan) proposed to adopt the Midwest Interstate Passenger Rail Compact.  This Act would create a commission to identify and develop opportunities for passenger-rail improvements in Nebraska.  The Act directs the commission to do so in concert with certain states, including Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, North Dakota, Ohio, South Dakota and Wisconsin.  Before Nebraska may join a compact with any of these states, the Legislature must approve such partnership via another bill. 

The Legislature referred LB 44 to the Transportation and Telecommunications Committee on January 9, 2023, which held a hearing on March 6, 2023.  There has been no further legislative action. 

LB 119 (Bostelman) proposed to define “eligible telecommunications carrier” under the Nebraska Broadband Bridge Act consistently with federal law.  Under 42 U.S.C. section 214(e), a state commission may designate a common carrier as an eligible telecommunications carrier if it offers certain services and advertises the same using media of general distribution. 

The Legislature referred LB 119 to the Transportation and Telecommunications Committee on January 10, 2023, which held a hearing on February 7, 2023.  There has been no further legislative action. 

LB 134 (Cavanaugh, J.) proposed to require any state or municipal authority, before installing small wireless facilities, to notify adjacent property owners or residents and ensure such installation complies with the Americans with Disabilities Act and is consistent with traffic and right-of-way restrictions.

The Legislature referred LB 134 to the Transportation and Telecommunications Committee on January 10, 2023, which held a hearing on February 21, 2023.  There has been no further legislative action. 

LB 166 (Bostelman) proposed amendments to the Transportation Innovation Act to require contracting agencies to disclose in their requests for proposal how they intend to evaluate proposals.  Specifically, contracting agencies would need to disclose desired criteria such as experience, available resources and historic reasonableness of costs.  Such historic reasonableness of costs must carry at least 50 percent of contracting agencies’ evaluative weight. 

The Legislature referred LB 166 to the Transportation and Telecommunications Committee on January 11, 2023, which held a hearing on March 7, 2023.  The Legislature placed this bill on General File on February 23, 2024.   There has been no further legislative action.

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Attorneys at Baird Holm LLP specialize in legislation, governmental relations, and lobbying.  After reviewing this article, if you have any questions or would like to discuss the impact of one or more of these legislative bills on your entity, please do not hesitate to reach out.