107th Nebraska Legislature, Second Session – Updated Activity on Bills of Interest
The Second Session of the 107th Nebraska Legislature convened January 5, 2022. Bill introduction concluded January 20, 2022. The deadline for priority bill listing was February 22, 2022. As of Wednesday, February 23, 2022, there are 30 days left in the session. The session concludes April 20, 2022.
An updated chart of all Second Session bills related to economic development, energy and renewable energy, government and municipal law, healthcare, real estate and financial transactions, taxation, and telecommunications is available here.
In our first update, available here, we addressed 45 bills from days one through seven of bill introduction. In our second update, available here, we identified 34 additional bills of interest. Below is an update select bills identified in the previous updates.
Open Meetings Act Bills
LB 742 (Erdman) proposes to amend the Open Meetings Act. The bill allows public entities to keep minutes as electronic records. On January 10, 2022, the Legislature referred the bill to the Government, Military, and Veterans Affairs Committee. On February 1, 2022, the Committee held a hearing on the bill. On February 15, 2022, the Committee advanced the bill to General File.
LB 743 (Erdman) proposes to amend the Open Meetings Act. The bill extends closed session requirements to subcommittee meetings of any public body. On January 10, 2022, the Legislature referred the bill to the Government, Military, and Veterans Affairs Committee. On February 9, 2022, the Committee held a hearing on the bill.
LB 908 (McDonnell) proposes to expand the use of virtual conferencing under the Open Meetings Act. Under this bill, a public body could hold a meeting by virtual conferencing so long as the meeting’s subject would also be the subject of a later in‑person meeting, no final action would occur at the virtual meeting, and the public received notice and an opportunity to participate. On January 11, 2022, the Legislature referred this bill to the Government, Military, and Veterans Affairs Committee. On February 16, 2022, the Committee held a hearing on the bill.
On February 22, 2022, the bill moved to General File with amendments. As amended, the bill clarifies the new authority to use virtual conferencing under LB 908 does not diminish the authority previously granted in statute for public bodies to use virtual conferencing under other circumstances.
Community Development Law Bills
LB 713 (Flood) proposes to amend the Community Development Law to prohibit the use of tax-increment financing for any redevelopment project that includes a casino or licensed racetrack enclosure. On January 10, 2022, the Legislature referred the bill to the Urban Affairs Committee. On February 8, 2022, the Committee held a hearing on the bill.
LB 725 (M. Hansen) proposes to amend the Community Development Law. The bill authorizes a city or authority to develop guidelines for the approval of redevelopment projects financed through tax-increment financing. On January 10, 2022, the Legislature referred the bill to the Urban Affairs Committee. On February 8, 2022 the Committee held a hearing on the bill.
LB 790 (Groene) proposes to amend the Community Development Law. Under the bill, redevelopment plans that receive expedited review would no longer have a 10-year restriction on tax-increment financing. The bill also expands expedited review to include redevelopment plans involving a vacant lot inside a substandard and blighted area platted at least sixty years ago. On January 10, 2022, the Legislature referred the bill to the Urban Affairs Committee. On January 19, 2022, Senator Groene withdrew the bill.
LB 796 (Urban Affairs Committee) proposes to amend the Community Development Law. Under the bill, tax-increment financing reports need to state the amount of outstanding indebtedness and expected-paid-in-full date. On January 10, 2022, the Legislature referred the bill to the Urban Affairs Committee. On January 15, 2022, the Committee held a hearing on the bill.
LB 797 (Urban Affairs Committee) proposes to amend the Community Development Law. The bill provides a process whereby areas could remove their designations as substandard and blighted or extremely blighted and substandard. On January 10, 2022, the Legislature referred the bill to the Urban Affairs Committee. On January 25, 2022, the Committee held a hearing on the bill.
LB 798 (Urban Affairs Committee) proposes to amend the Community Development Law. The bill limits area designations as extremely blighted to 25 years. On January 10, 2022, the Legislature referred the bill to the Urban Affairs Committee. On January 25, 2022, the Committee held a hearing on the bill.
On January 28, 2022, Senator Wayne filed an amendment and on February 8, 2022, the Urban Affairs Committee held a hearing on the amended bill. The amendment would require a city declaring an area extremely blighted adopt policies and procedures establishing goals that include, but are not limited to, developing affordable housing, flood mitigation, preserving historic buildings, and remediating poverty in established residential neighborhoods.
LB 836 (Hunt) proposes to amend the Community Development Law. By July 1, 2024, the bill requires every city containing an area designated as substandard and blighted or extremely substandard and blighted for more than 30 years to determine if that area remains eligible for such designation. If not, the city must remove the designation. On January 10, 2022, the Legislature referred the bill to the Urban Affairs Committee. On February 8, 2022, the Committee held a hearing on the bill.
LB 1060 (Briese) proposes to amend the Community Development Law to require a redevelopment plan’s findings are supported by clear and convincing evidence, include the governing body’s reasoning, include an analysis on the project’s return on investment with and without tax-increment financing, and are supported by at least two affidavits from experts in the field of public finance. The bill would also require anyone bringing suit, action, or proceeding involving the validity or enforceability of an agreement for a redevelopment plan that includes tax-increment financing file said suit, action, or proceeding within 30 days of the signing of the agreement. On January 20, 2022, the Legislature referred the bill to the Urban Affairs Committee. On February 8, 2022, the Committee held a hearing on the bill.
LB 1065 (Groene) proposes to amend the Community Development Law. Under the bill, redevelopment plans that receive expedited review would no longer have a 10-year restriction on tax-increment financing. The bill would also expand expedited review to include redevelopment plans involving a vacant lot inside a substandard and blighted area located within the corporate limits of a municipality for at least sixty years and platted at least sixty years ago. On January 20, 2022, the Legislature referred the bill to the Urban Affairs Committee. On February 8, 2022, the Committee held a hearing on the bill.
On February 22, 2022, the bill moved to General File with amendments. As amended, the bill strikes the increase in the maximum assessed value of property within a redevelopment project involving the revitalization of a structure included in the National Register of Historic Places that receive expedited review. It also reduces the increase in the maximum assessed value of property within a redevelopment project involving multi-family residential structures or commercial structures. Finally, it clarifies that a municipality may declare a portion of an area as substandard and blighted following a substandard and blighted study or analysis.
Other Bills
LB 695 (Blood) proposes to amend statutes relating to conditional use permits and zoning exceptions. The bill prohibits counties from issuing conditional use permits or zoning exceptions to persons who are delinquent on their real property taxes. The bill also requires any authority seeking development proposals to decline contracts with redevelopers who are delinquent in paying property taxes. On January 10, 2022, the Legislature referred the bill to the Urban Affairs Committee. On January 25, 2022, the Committee held a hearing on the bill.
On February 8, 2022, the Committee voted to place the bill on General File with amendments. As amended, the bill prohibits counties from issuing conditional use permits or redevelopment contracts if applicants are delinquent for more than 180 days on the property included in the permit application or redevelopment contract. Finally, the bill allows a city, county, or village to waive the prohibition if the delinquent taxes are in dispute, on appeal or the result of an administrative error.
LB 937 (Geist) proposes to appropriate $88,500 from the General Fund to the Legislative Council to purchase REMI Tax-PI economic modeling software. On January 11, 2022, the Legislature referred the bill to the Appropriations Committee. On February 1, 2022, the Committee held a hearing on the bill. On February 11, 2022, the Committee voted to place the bill on General File.
The Legislative Performance Audit Committee selected LB 937 as a priority bill on January 26, 2022.
LB 1045 (Bostelman) proposes to amend the qualifications for a person to serve on a public power and irrigation district’s board of directors. Against a general rule that no employee of such a district may serve on its board of directors, section 70-618(2) presently provides an exception for high level managers in limited circumstances, such as when a director has resigned or taken unpaid leave.[1] The bill would remove that exception, meaning that no district employees, including high level managers, could serve on the board of directors. On January 20, 2022, the Legislature referred the bill to the Natural Resources Committee. On February 2, 2022, the Committee held a hearing on the bill.
The Natural Resources Committee selected LB 1045 as a priority bill on February 22, 2022.
LB 1046 (Bostelman) proposes to amend the election procedure for certain public power districts’ boards of directors. Beginning in 2024, the bill would require those districts to divide their territories into four equal subdivisions. Each subdivision would then elect one board member. They would serve alongside five members at large, appointed by the Governor. These nine board members, in total, would serve staggered six-year terms. Under the bill, the Governor would also appoint a chief executive officer for each district. On January 20, 2022, the Legislature referred the bill to the Natural Resources Committee. On February 2, 2022, the Committee held a hearing on the bill.
LB 1047 (Bostelman) proposes to strengthen the Power Review Board’s energy-forecasting requirement. The bill would require that the Board include, in its biennial report, a 20-year forecast for both summer and winter peak load conditions. In addition, the bill would require any firm electric generation plant that lacks the capability to store a 45-day supply of fuel on site to identify how it plans to obtain such fuel during load periods. On January 20, 2022, the Legislature referred the bill to the Natural Resources Committee. On January 27, 2022, the Committee held a hearing on the bill.
LB 1056 (Brewer) proposes to amend statutes relating to county zoning authority. The bill would explicitly include the regulation of industrial wind turbines under county zoning authority. On January 20, 2022, the Legislature referred the bill to the Government, Military and Veterans Affairs Committee. On February 2, 2022, Senator Brewer withdrew the bill.
LB 1073 (Wayne) proposes to amend sections of Chapter 58 to establish a Department of Housing and Urban Development as an executive department of state government to address state housing needs. This bill would also create a Housing Advisory Commission who would provide an annual report on the status of housing in the state. On January 21, 2022, the Legislature referred this bill to the Urban Affairs Committee. On February 15, 2022, the Committee held a hearing on the bill.
Senator Hansen selected LB 1073 as his priority bill on February 22, 2022. On February 22, 2022, the bill moved to General File with amendment. The amendment is a white-copy amendment that replaces the bill. It would require the Governor apply for all federal funds for emergency rental assistance under the American Rescue Plan Act of 2021.
LB 1099 (Bostelman) proposes to create the Hydrogen Hub Industry Work Group. The Director of Economic Develop would appoint members from the manufacturing or industry, agriculture, transportation, and energy industries. The Work Group then would apply to the U.S. Department of Energy for designation as one of the four regional clean-hydrogen hubs authorized under the federal Infrastructure Investment and Jobs Act. On January 21, 2022, the Legislature referred the bill to the Natural Resources Committee. On February 9, 2022, the Committee held a hearing on the bill.
Senator Bostelman selected LB 1099 as his priority bill on February 14, 2022. On February 15, 2022, the bill moved to General File with amendments. The amendments remove the effective date and allows the Governor to select the members of the working group instead of the Director of Economic Development in compliance with the Nebraska State Constitution. The amendments also remove the requirement that members of the working group be members of the manufacturing or industry, agriculture, transportation, and energy industries. Finally, the amendments remove the ability to appropriate funds from the General Fund.
All bills are on the Legislature’s website at http://www.nebraskalegislature.gov/bills/. Please contact us if you have any questions about these bills or any others the Nebraska Legislature is currently considering. Thank you.
[1] All references are to the Nebraska Revised Statutes.
