2023 SESSION, 108TH LEGISLATURE Protesters filled the rotunda on Tuesday evening as lawmakers considered an amendment to revise and combine the provisions of two contentious issues (LB 574 - restrictions on transgender surgery and LB 626 - abortion restrictions) into a single bill (LB 574). The Legislature invoked cloture, approved the amendment and re-advanced LB 574 to Final Reading. A final vote on the amended measure is expected to be conducted on Friday afternoon. Budget Receives Final ApprovalThe Legislature sent the final piece of the $10.7 billion state budget package to Governor Pillen on Thursday. Following passage of the budget, other bills with "fiscal impact' can be considered for final passage. With the Legislature having adopted additional spending measures beyond the Governor's initial proposed budget, the Governor may use his line-item veto authority to reduce spending. The Governor will have until Wednesday to sign or to veto any bill within the package or to issue line-item vetoes on specific items. The mainline budget bill (LB 814) will increase state spending by 2.3% over the next two years. Among other things, the measure provides funding for income and property tax relief, $1.25 billion for the Education Future Fund to increase state aid to schools, the Perkins County canal, construction of a new prison, $20 million for rural workforce housing, and $20 million for middle-income workforce housing. As finalized, the budget will leave an estimated $892 million in the state's General Fund for tax cuts and other uses over the next two years, and the state's Cash Reserve fund is expected to be at $779 million by June 30, 2025 (13% of annual state revenues). Wide-Ranging Revenue Bill AdvancesThe Legislature gave first-round approval to LB 727 on Tuesday. Introduced by Senator Lou Ann Linehan (Elkhorn) and designated as a Revenue Committee priority bill, the bill originally provided a sales tax exemption for certain purchases by the state and other public entities. The Revenue Committee amendment to LB 727 incorporated provisions of an additional 20 tax-related bills. A General File floor amendment inserted five additional bills to the tax package. As amended, LB 727 addresses, in part, the following bills, which were supported by the NBA.
Economic Recovery Act AdvancesThe Legislature has given second-round approval to LB 531, a bill supported by the NBA. Introduced by Senator Terrel McKinney (Omaha) and designated as a priority bill by the Urban Affairs Committee, LB 531 would provide funding for grants to multiple proposals seeking to revitalize parts of North and South Omaha. Last session, the Legislature allocated approximately $335 million to fund transformational projects in North and South Omaha. While some funds have been directed to specific projects, about $225 million in grants remain to be allocated, which will be awarded to North and South Omaha entities to be selected by the Department of Economic Development. 2023 SESSION, 108TH LEGISLATURE The 2023 Legislative Session is heading into the home stretch. Prior to adjourning for a long, four-day weekend, lawmakers took action on bills relating to the state budget (LB 814 and LB 818), K-12 education funding (LB 583), property tax relief (LB 243) and income tax relief (LB 754). When the Legislature reconvenes next Tuesday, they will consider a Revenue Committee priority bill (LB 727) containing 21 separate bills and an amendment that will combine revised versions of a bill to restrict abortions (LB 626) and a bill to restrict transgender surgery and use of hormone blockers (LB 574). Tax Relief One Step Closer to PassageIn a flurry of activity on Thursday, the Legislature advanced bills to provide extensive property tax relief (LB 243) and income tax relief (LB 754). Prior to advancing the bills, amendments were adopted to reduce the fiscal impact of each measure. As amended, the two tax relief bills, combined with Governor Pillen’s proposal to increase state aid to schools, would provide approximately $6.4 billion in tax relief over the next six years. LB 243, in part, would increase state tax credits provided against property tax payments and provide state funding for the state’s six community colleges, taking this funding off the local property tax rolls. LB 754 would reduce the maximum individual income tax rate from 6.84% to 3.99%, reduce the maximum corporate income tax rate from 7.25% to 3.99% over the next five years, as well as phase-out state income taxes on social security benefits and certain federal pension payments, among other things. To reduce the fiscal impact of the income tax cuts, amendments were adopted to eliminate a proposal to reduce income taxes on business assets and research expenditures, as well as to increase a deduction for state and local taxes paid by individual taxpayers. In addition, a package of tax credits for childcare expenses and providers were reduced to save approximately $10 million each year. Budget Bills to Final ReadingThe mainline budget bill appropriating $10.7 billion for state operations has been given second-round approval. Under the bill, state General Fund spending would grow by an average of 2.3% over the next two years. Highlights of the budget include additional funding ($95.8 million) for a new $350 million prison; $574.5 million for the Perkins County Canal; $20 million for Rural Workforce Housing; and $20 million for Middle-Income Workforce Housing. Prior to advancing the budget bills (LB 814 and LB 818), lawmakers deferred a portion of the transfer to the Cash Reserve Fund, retaining an extra $170 million in the state’s General Fund. This action leaves $896 million available for tax cuts and other uses during the biennium, rather than the $726 billion originally available. The reduction in transfers into the Cash Reserve Fund will leave the fund at $779 million (13% of annual state revenues) rather than the 16% level originally proposed. K-12 Education Funding Bill AdvancesLB 583, introduced and designated as a priority bill by Senator Rita Sanders (Bellevue), has been advanced to the final stage of debate. The legislation would use funding from a $1 billion Education Future Fund contained within the state budget bill to provide $1,500 per student in foundation aid and help cover 80% of special education costs. Other Bills of InterestA bill designed to transition Nebraska’s E-10 ethanol blend to E-15 (LB 562) was amended to include provisions of a bill (LB 116), supported by the NBA. The amendment to LB 562 contains provisions of LB 116, introduced by Senator Tom Brandt (Plymouth), which would increase the net worth requirements for individuals to be qualified as a beginning farmer or livestock producer under the Beginning Farmer Tax Credit Act from $200,000 to $750,000 (pensions, retirement, or other types of deferred benefit accounts owned by the beginning farmer or livestock producer including such accounts owned by a spouse or dependent would be excluded from the determination of a qualified beginning farmer’s or livestock producer’s net worth). The amendment limits the total amount of credits granted under the Beginning Farmer Tax Credit Act to $2 million per year. 2023 SESSION, 108TH LEGISLATURE With only 15 “working days” remaining in the 2023 Legislative Session, lawmakers have a great deal of work to do prior to adjourning for the year. Debate on the budget bills began this week and is expected to be completed early next week, after which the tax relief proposals and other bills with fiscal impact may be considered. Appropriations Committee Budget ReleasedLawmakers have given first-round approval to the mainline budget bill (LB 814) which provides $10.7 billion in state spending over the next two years. Also advancing to the second-round of debate was LB 818, which provides for various transfers from and to the General Fund and the Cash Reserve. The budget provides funding for construction of a new $350 million prison and also provides $20 million in funding ($10 million each year) over the next two years for both rural workforce housing and middle-income workforce housing. The budget retains nearly $715 million for tax relief and other uses during the biennial budget period. The package of income and property tax relief is estimated to reduce state revenues by approximately $870 million over the next two years. As a result, it is anticipated that some of the tax relief provisions may need to be pared back or the Governor may utilize his line-item veto authority to reduce spending measures. As advanced, LB 814 will increase state General Fund spending by an average of 2.3% over the next two years compared to Governor Pillen’s original budget proposal which called for 1.3% average spending growth. NBA Bill AdvancesA bill on the NBA Affirmative Legislative agenda has been proposed as an amendment to LB 157, a bill relating to temporary guardians, which has been designated as a priority bill by the Planning Committee and advanced to General File. The provisions of LB 330, introduced by Senator Wendy DeBoer (Omaha) would change provisions relating to small estate affidavits and the negotiation of checks made payable “to the estate of” by authorizing a financial institution to accept such a check endorsed by the successor named in a small estate affidavit. This clarification in the law will avoid the need to have a new check issued by the drawer of the check under such circumstances. 2023 SESSION, 108TH LEGISLATURE The Legislature adjourned on Thursday afternoon for a long, four-day weekend. Lawmakers wrapped up activity for the week with four hours of Select File debate on LB 626 ("Heartbeat" bill) with a motion to invoke cloture and cease debate falling one vote short of the 33 votes needed to break the filibuster. Banking Priority Bill Advances to Final ReadingLawmakers have given second-round approval to the Banking, Commerce and Insurance Committee priority bill (LB 92), which contains the following measures supported by the NBA: LB 207 – Trust Deeds-Location Of Trustee’s Sale Senator Brad von Gillern (Omaha) is the sponsor of LB 207, which would clarify that the sale of property pursuant to a power of sale under a trust deed may be conducted on the premises, at the county courthouse, or in any public building in which one or more county offices are located within the county in which the property to be sold is situated. LB 214 - Omnibus Department of Banking Bill Introduced by Senator Julie Slama (Dunbar), LB 214 would adopt changes to federal law regarding banking and finance and change provisions relating to digital asset depositories, loan brokers, mortgage loan originators, and installment loans. The bill would also renew the annual bank and savings and loan "wild card" provisions. LB 669 – Department of Banking Conditional Orders Introduced by Senator Beau Ballard (Lincoln), LB 669 would authorize the Director of the Department of Banking to prescribe conditions for banks, trust companies, credit unions, building and loan associations, savings and loan associations, digital asset depositories, and their holding companies, if any, as part of any written order, decision or determination required to be made pursuant to the Nebraska Banking Act, Chapter 8, Article 3, the Credit Union Act, and the Nebraska Financial Innovation Act. LB 674 – Nebraska Financial Innovation Act Introduced by Senator Mike Jacobson (North Platte), LB 674 would make technical corrections to the Nebraska Financial Innovation Act regarding digital asset depositories. Rural Workforce Housing Bill AdvancesAmong seven bills contained within the Business and Labor Committee Priority Bill (LB 191) that has been advanced to Final Reading, are the provisions of LB 249, a bill supported by the NBA. Introduced by Senator Tom Briese (Albion) and designated as a Priority Bill by Senator Teresa Ibach (Sumner), LB 249 would allow a nonprofit development organization to apply for more than one grant subject to a limitation on the maximum amount of grant funds awarded to such nonprofit development organization over a two-year period to no more than $5 million. Prior to its amendment into LB 191, provisions in LB 249 to remove "anti-stacking" provisions prohibiting the mixing of certain low-income housing funds with rural workforce housing funds (removal of which was opposed by the NBA), were dropped from the bill. Provisions which would have established an additional $20 million in funding for the Rural Workforce Housing Fund were also eliminated; however, it is anticipated that the mainline budget bill will include additional funding for Rural Workforce Housing. Appropriations Committee Budget ReleasedThe Legislature's Appropriations Committee has advanced the proposed State budget that provides for an average increase in spending of 2.3% over the next two fiscal years. Governor Pillen had previously recommended spending increases of 1.5% over the same time period. Primary distinctions between the two budget proposals involve the inclusion of an additional $80 million in the Appropriations Committee budget to increase rates for providers of Medicaid services and an increase in the University of Nebraska system budget from Governor Pillen's proposed 2% to 2.5% over the biennium. Other major items contained within the budget include funds for construction of a new prison ($366 million) and to build the Perkins County Canal ($574 million). It is anticipated that the Appropriations Committee budget plan would leave $703 million for tax cuts and other uses. With the additional cost estimates for income tax and property tax relief in the combined amount of $870 million over the next two years, lawmakers may have to consider reducing spending or revising the tax relief packages to balance the State's budget. Debate on the State budget is scheduled to begin on May 3. Forecasting Board Revises Revenue ProjectionsThe Nebraska Economic Forecasting Advisory Board made relatively minor revisions to their projections of state tax revenues through June 30, 2025, when the panel convened this past Wednesday. The revenue projections upon which the state budget is determined were reduced by $80 million for the current fiscal year, while adding a total of $80 million in the next two years. The new forecast predicts revenues of $6.635 billion in the year ending June 30, followed by revenues of $6.5 billion and $6.61 billion in the following two fiscal years. 2023 SESSION, 108TH LEGISLATURE At long last, on day 63 of the 2023 Legislative Session, the Legislature passed its first bill (LB 376). According to press reports, in the last 90-day Legislative Session (2021), lawmakers had passed 57 bills by day 63 of that session. The pace of activity increased slightly during the past week as the Legislature gave final approval to four bills, including LB 77 (concealed carry handguns), and advanced five bills from General File to Select File. Priority Bill CombosThe Legislature advanced the first of the mega "Christmas tree" Committee priority bills on Monday, which consisted of two of the bills designated as priorities by the Health and Human Services (HHS) Committee. The combined HHS priority bills ultimately consisted of 11 separate bills. The combined Banking, Commerce and Insurance Committee priority bills were also considered and advanced from General File to Select File in floor action on Tuesday. In addition to the 13 separate bills incorporated into LB 92, four separate bills were added to the package by way of floor amendments. The bill, advancing to Select File, contained the following measures supported by the NBA: LB 207 – Trust Deeds-Location Of Trustee’s Sale Senator Brad von Gillern (Omaha) is the sponsor of LB 207, which would clarify that the sale of property pursuant to a power of sale under a trust deed may be conducted on the premises, at the county courthouse, or in any public building in which one or more county offices are located within the county in which the property to be sold is situated. LB 214 - Omnibus Department of Banking Bill Introduced by Senator Julie Slama (Dunbar), LB 214 would adopt changes to federal law regarding banking and finance and change provisions relating to digital asset depositories, loan brokers, mortgage loan originators, and installment loans. The bill would also renew the annual bank and savings and loan "wild card" provisions. LB 669 – Department of Banking Conditional Orders Introduced by Senator Beau Ballard (Lincoln), LB 669 would authorize the Director of the Department of Banking to prescribe conditions for banks, trust companies, credit unions, building and loan associations, savings and loan associations, digital asset depositories, and their holding companies, if any, as part of any written order, decision or determination required to be made pursuant to the Nebraska Banking Act, Chapter 8, Article 3, the Credit Union Act, and the Nebraska Financial Innovation Act. LB 674 – Nebraska Financial Innovation Act Introduced by Senator Mike Jacobson (North Platte), LB 674 would make technical corrections to the Nebraska Financial Innovation Act regarding digital asset depositories. LB 92 has already resurfaced on the legislative agenda and could receive Select File consideration as early as next Tuesday. Rural Workforce Housing Bill AdvancesAmong seven bills contained within the Business and Labor Committee Priority Bill were the provisions of LB 249, a bill supported by the NBA. Introduced by Senator Tom Briese (Albion) and designated as a Priority Bill by Senator Teresa Ibach (Sumner), LB 249 would allow a nonprofit development organization to apply for more than one grant subject to a limitation on the maximum amount of grant funds awarded to such nonprofit development organization over a two-year period to no more than $5 million. Prior to its amendment into LB 191, provisions in LB 249 to remove "anti-stacking" provisions prohibiting the mixing of certain low-income housing funds with rural workforce housing funds (removal of which was opposed by the NBA), were dropped from the bill. Provisions which would have established an additional $20 million in funding for the Rural Workforce Housing Fund were also eliminated; however, it is anticipated that the mainline budget bill will include additional funding for Rural Workforce Housing. Moser Elected Transportation ChairWith the resignation of Senator Suzanne Geist (Lincoln), the position of the Chair of the Transportation and Telecommunication Committee was vacated. Lawmakers have elected Senator Mike Moser (Columbus) as chair of the Committee for the balance of the biennium. Senator Geist's departure also opened up a position on the Executive Board and left her committee assignments on the Transportation and Telecommunication and Judiciary Committees to be filled. Senator Beau Ballard (Lincoln) has been appointed to fill the position on the Executive Board, and newly appointed Senator Carolyn Bosn (Lincoln) will serve on the Transportation and Telecommunications and Judiciary Committees.
|
Past Legislative Updates
June 2024
Categories |
STAY CONNECTED |
nEBRASKA bANKERS aSSOCIATION233 South 13th Street, Suite 700
PO Box 80008 Lincoln, NE 68501-0008 402-474-1555 Digital Millennium Copyright Act Policy |