108TH NEBRASKA LEGISLATURE, FIRST SESSION – LEGISLATURE ADJOURUNS SINE DIE

The First Session of the 108th Legislature adjourned sine die on June 1, 2023.  In our updates during bill introduction (available here and here), we identified 91 bills relating to economic development, energy and renewable energy, government and municipal law, real estate and financial transactions, tax increment financing, taxation and telecommunications.  This chart provides the status of those bills.  Midway through the First Session, we addressed the progress of 25 bills of interest here.

Below are summaries of ten particularly relevant bills that passed this Session.

LB 33 (Jacobson) allows the mayor of a city of the first or second class to vote on any matter requiring a majority vote of the city council if (a) the city council is divided equally or (b) the city council cannot reach a majority due to the absence, vacancy or abstention of one or more members. 

The Urban Affairs Committee adopted AM 1880, which amended LB 33 into LB 531 with a few minor language changes.  LB 531 passed on June 1, 2023.  Governor Pillen approved the bill on June 6, 2023 with an emergency clause.  Accordingly, the bill took immediate effect.

LB 45 (Dorn) establishes the Revitalize Rural Nebraska Grant Program and creates the Revitalize Rural Nebraska Fund.  This Program allows a city of the first or second class or a village to apply to the Department of Environment and Energy for a demolition grant for dilapidated commercial property.  Cities of the second class and villages receive priority.  Upon receiving a grant, the city or village must demolish the dilapidated commercial property within 24 months. 

The Urban Affairs Committee adopted AM 1880, which amended LB 45 into LB 531. LB 531 passed on June 1, 2023.  On June 6, 2023, Governor Pillen approved the bill with an emergency clause.  Accordingly, the bill took immediate effect.

LB 90 (Day) eliminates tax incentive performance audits for the Nebraska Advantage Act and the Nebraska Job Creation and Mainstreet Revitalization Act.  This bill also updates the code designations under the North American Industry Classification System, including the definitions for “high-tech firm” and “renewable energy firm.” 

The Executive Board adopted AM 1377, which amended LB 90 into LB 254. LB 254 passed on May 24, 2023.  Governor Pillen approved the bill on May 26, 2023 with an emergency clause.  Accordingly, the bill took immediate effect.

LB 98 (Jacobson) amends the Community Development Law to delay approval of certain redevelopment plans and limit cities’ indebtedness capacities.  The bill requires a city’s governing body, after first proposing a blighted and substandard designation for an area, to adopt a resolution declaring that substandard and blighted conditions exist in the area under study.  Only then can the governing body declare the area substandard and blighted.  Additionally, authorities can only incur indebtedness related to the redevelopment in the lesser of the agreed-upon costs of the redevelopment project or the amount of estimated project taxes generated over a 15-year period.  The bill also specifies certain conditions under which a governing body can deny a redevelopment plan, including (i) failure to comply with the Law’s requirements, (ii) approval would exceed the governing body’s designated annual limit and (iii) inconsistency with the city’s comprehensive redevelopment plan.

The Urban Affairs Committee adopted AM 1880, which amended LB 98 into LB 531. LB 531 passed on June 1, 2023.  Governor Pillen approved the bill on June 6, 2023 with an emergency clause.  The bill thus took immediate effect.

LB 267 (Brewer) adopts the Critical Infrastructure Utility Worker Protection Act.  The Act requires the Governor, upon declaring a civil defense emergency, disaster or emergency, to provide critical infrastructure utility workers with adequate protection and care, including priority access to personal protective equipment, medical screening, testing, preventive health services, medical treatment and any U.S. Food and Drug Administration-approved vaccines.  The Act defines “critical infrastructure utility worker” in accordance with the U.S. Department of Homeland Security’s Guidance on the Essential Critical Infrastructure Workforce, Version 4.1.

The Business and Labor Committee adopted AM 1330, which amended LB 267 into LB 191. LB 191 passed on May 24, 2023. Governor Pillen approved the bill on May 26, 2023 with an emergency clause.  While most of the bill’s provisions passed with an emergency clause, sections 1-5 (which contain the contents of LB 267) become operative on September 1, 2023.

LB 278 (Walz) requires the Investment Finance Authority, in collaboration with the Department of Health and Human Services, to apply for state and federal grants that will help in building safe, affordable and accessible housing for individuals with disabilities.

The Banking, Commerce and Insurance Committee adopted AM 1383, which amended LB 278 into LB 92. LB 92 passed on June 1, 2023.  Governor Pillen approved the bill on June 6, 2023.  While most of the bill’s provisions passed with an emergency clause, sections 73-75 (which contain the contents of LB 278) become operative on September 1, 2023.

LB 289 (Bostelman) increases agencies’ authority under the Municipal Cooperative Financing Act to include (1) owning, operating or leasing advanced metering infrastructure technology and providing for advanced metering infrastructure services and (2) providing services related to information technology, physical security, physical infrastructure management, regulator reporting and administration regarding publicly owned utility and municipal infrastructure systems.

The Natural Resources Committee adopted AM 1314, which amended LB 289 into LB 565.  LB 565 passed on May 23, 2023.  Governor Pillen approved the bill on May 26, 2023 with an emergency clause.  While most of the bill’s provisions passed with the emergency clause, section 21 (which contains the contents of LB 289) becomes operative on September 1, 2023.

LB 565 (Bostelman) appropriates $250,000 in each of the next two years to the Department of Economic Development to award grants for Nebraska Public Power District to apply for a regional clean hydrogen hub designation and associated federal funding.  This follows from Nebraska Revised Statute section 66-2301, which the Legislature adopted last year.

On March 15, 2023, the Natural Resources Committee referred this bill to the General File with amendments.  LB 565 passed on May 30, 2023.  Governor Pillen signed it into law on May 23, 2023 with an emergency clause.  Accordingly, the bill took immediate effect.

LB 567 (Bostelman) redefines “reliable or reliability” under Nebraska Revised Statutes section 70‑1001.01 to mean the ability of an electric supplier to supply the aggregate electric power and energy requirements of its electricity consumers at all times under normal operating conditions.  This is ultimately a way to make it more difficult for the Power Review Board to approve renewable energy projects, should those return to its jurisdiction.

The Natural Resources Committee adopted AM 1242, which amended LB 567 into LB 565.  LB 565 passed on May 30, 2023.  Governor Pillen signed it into law on May 23, 2023 with an emergency clause.  Accordingly, the bill took immediate effect.

LB 629 (McKinney) amends the definition of “workforce housing” in the Middle Income Workforce Housing Investment Act to include owner occupied housing units that have a “total housing construction cost” of at least $125,000 but not more than $275,000.  The bill excludes infrastructure improvements, lot acquisition and similar construction preparation costs from the calculation of “total housing construction cost.”  While an initial version of the bill would have transferred money to the Middle Income Workforce Housing Investment Fund, an amendment removed that provision.

The Urban Affairs Committee adopted AM 1880, which amended LB 629 into LB 531 with some slight changes.  LB 531 passed on June 1, 2023. Governor Pillen approved the bill on June 6, 2023 with an emergency clause.  The bill thus took immediate effect. 

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All bills are on the Legislature’s website.  Please contact us if you have any questions about these bills or any others in Nebraska.  Thank you.

Hannes D. Zetzsche
Lauren A. Dubas, Summer Associate