Update After Nebraska Legislative Day 30
The First Regular Session of the 108th Nebraska Legislature convened on January 4, 2023. As of February 20, 2023, 60 legislative days remain in the session. The deadline for priority bill listing is March 9, 2023. The Legislature will adjourn sine die on June 9, 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. An updated chart of those bills is at this link. Below are summaries of select bills that have either progressed significantly or are up for a hearing soon.
Bills of Particular Interest
LB 213 (Slama) proposes 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 would limit 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.
On January 12, 2023, the Legislature referred this bill to the Revenue Committee. The Committee will hold a hearing on the bill on February 24, 2023. Municipalities are likely to support this bill, because it would help them to raise funds for historically significant property.
LB 255 (Brewer) proposes 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 also limit 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.
On January 12, 2023, the Legislature referred this bill to the Natural Resources Committee. The Committee will hold a hearing on the bill on February 22, 2023. The public utilities are likely to oppose this bill, because it would limit their ability to use the direct-pay provisions of the federal Inflation Reduction Act and their ability to avoid local (county) zoning regulation.
LB 399 (Brewer) proposes to subject private renewable energy developers to additional oversight by the Power Review 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. 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.
On January 17, 2023, the Legislature referred this bill to the Natural Resources Committee. The Committee will hold a hearing on the bill on February 22, 2023. Renewable energy proponents are likely to oppose this bill, because it would undo the significant improvements to, and de-risking of, the state deregulatory process for renewable energy. The Legislature just adopted that process in 2016, and it has helped renewable energy to grow in Nebraska.
LB 712 (Hardin) would create the Ground Based Strategic Deterrent Deployment Fund to support incorporated municipalities and extraterritorial jurisdiction to address certain deficiencies to support the Ground Based Strategic Deterrent Deployment and Minuteman III Decommissioning and Disposal Accommodation if Nebraska is selected for the headquarters. The bill also proposes the appropriation of $20,000,000 from the Cash Reserve Fund to the Ground based Strategic Deterrent Deployment Fund.
On January 20, 2023, the Legislature referred this bill to the Government, Military and Veterans Affairs Committee. Senators Aguilar, Brewer Halloran, Lowe, and Sanders all added their names as cosponsors of this bill. The Committee will hold a hearing on this bill on February 23, 2023.
Economic Development
LB 45 (Dorn) proposes to establish the Revitalize Rural Nebraska Grant Program and create the Revitalize Rural Nebraska Fund. This program would allow 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. This bill would give priority to cities of the second class and villages. Upon receiving a grant, the city or village would have 24 months to demolish the dilapidated commercial property.
On January 9, 2023, the Legislature referred this bill to the Urban Affairs Committee. The Committee will hold a hearing on this bill on February 21, 2023.
LB 278 (Walz) would require the Nebraska 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.
On January 12, 2023, the Legislature referred this bill to the Banking, Commerce and Insurance Committee, which held a hearing on the bill on January 30, 2023. The Committee voted the bill out of Committee and, on February 2, 2023, moved the bill to General File with amendments. As amended, the bill would require additional collaboration with the Department of Economic Development in obtaining those grants. Senators Conrad, Hunt and Vargas added their names as cosponsors of the bill, as amended. On February 16, 2023, the bill advanced to Enrollment and Review Initial. This bill is on track to becomes law this Session.
LB 477 (Wayne) would appropriate $100,000,000 to the Omaha Streetcar Authority to help establish, maintain and operate the Omaha streetcar. The bill would express 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. The Committee will hold a hearing on this bill on February 24, 2023.
LB 629 (McKinney) proposes to amend the definition “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 amendment would exclude infrastructure improvements, lot acquisition and similar construction preparation costs from the calculation of “total housing construction cost.” The bill also proposes to transfer a yet to be determined amount of money to the Middle Income Workforce Housing Investment Fund.
On January 20, 2023, the Legislature referred this bill to the Urban Affairs Committee. The Committee will hold a hearing on this bill on February 21, 2023.
LB 714 (Cavanaugh, J.) would 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.
Energy and Renewable Energy
LB 49 (Dungan) would 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 5, 2023, the Legislature referred this bill to the Judiciary Committee. Senator Hunt added her name as cosponsor of this bill. The Committee will hold a hearing on this bill on February 23, 2023. Proponents of disbursed solar panel programs are likely to testify in support of this bill.
LB 267 (Brewer) proposes to adopt the Critical Infrastructure Utility Worker Protection Act. The Act would require 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.
On January 12, 2023, the Legislature referred this bill to the Business and Labor Committee, which held a hearing on the bill on January 30, 2023. The Committee voted the bill out of Committee and, on February 16, 2023, moved the bill to General File. This bill is on track to becomes law this Session.
LB 566 (Bostelman) would 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. Opponents of renewable energy would likely try to use the report in support of anti-renewable energy legislation.
On January 19, 2023, the Legislature referred this bill to the Executive Board. The Committee will hold a hearing on this bill on February 24, 2023.
Governmental and Municipal Law
LB 21 (Wayne) proposes 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 before the filing deadline for a city council or mayoral candidate in the 2025 general election, the city council would need to divide the city into nine city council districts, each of a “compact and contiguous territory.”
On January 9, 2023, the Legislature referred this bill to the Urban Affairs Committee, which held a hearing on the bill on January 31, 2023. The Committee voted the bill out of Committee and, on February 10, 2023, moved the bill to General File. This bill is on track to becomes law this Session.
LB 33 (Jacobson) would allow the mayor of a city of the first or second class to vote on any matter requiring either a majority vote of the city council if (a) the city council has divided equally or (b) the city council cannot reach a majority due to the absence, vacancy or abstention of one or more members.
On January 9, 2023, the Legislature referred this bill to the Urban Affairs Committee, which held a hearing on the bill on January 31, 2023. The Committee voted the bill out of Committee and, on February 13, 2023, moved the bill to General File. This bill is on track to becomes law this Session.
LB 171 (McKinney) proposes 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 would instead require each board members to come from one of the seven district subdivision, and it would require the staggering of board members’ terms.
On January 11, 2023, the Legislature referred this bill to the Urban Affairs Committee. The Committee will hold a hearing on this bill on February 21, 2023.
LB 224 (McKinney) would adopt the Aid to Municipalities Act. The Act would 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 has not yet referred this bill to a committee.
LB 246 (McKinney) proposes 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.
On January 10, 2023, the Legislature referred this bill to the Urban Affairs Committee, which held a hearing on the bill on January 24, 2023. The Committee voted the bill out of Committee and, on February 10, 2023, moved the bill to General File. This bill is on track to becomes law this Session.
LB 289 (Bostelman) would increase 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.
On January 13, 2023, the Legislature referred this bill to the Natural Resources Committee, which held a hearing on the bill on January 26, 2023. The Committee voted the bill out of Committee and, on February 10, 2023, moved the bill to General File. This bill is on track to becomes law this Session.
LB 299 (Linehan) proposes to require joint entities under the Interlocal Cooperation Act to obtain a majority vote of the qualified electors before issuing bonds for a Nebraska school district or educational service unit. The bill also proposes notice requirements and limitations on the election.
On January 13, 2023, the Legislature referred this bill to the Education Committee, which held a hearing on January 24, 2023. The Committee voted the bill out of Committee and, on February 7, 2023, moved the bill to General File. This bill is on track to becomes law this Session.
LB 312 (Lowe) would add provisions for the withholding of money due to noncompliance with budget limits and annual audits. This bill would codify 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 further prohibit 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, which held a hearing on the bill on February 9, 2023. The Committee voted the bill out of Committee and, on February 16, 2023, moved the bill to General File. This bill is on track to becomes law this Session.
LB 325 (Dungan) proposes 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.
On January 13, 2023, the Legislature referred this bill to the Judiciary Committee. The Committee will hold a hearing on this bill on February 24, 2023.
Real Estate and Financial Transactions
LB 186 (Cavanaugh, J.) proposes 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.
On January 11, 2023, the Legislature referred this bill to the Judiciary Committee. The Committee will hold a hearing on this bill on February 23, 2023.
Tax Increment Financing
LB 98 (Jacobson) would amend the Community Development Law to delay approval of certain redevelopment plans and limit cities’ indebtedness capacities. The bill would require the 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 could the governing body declare the area substandard and blighted. Additionally, authorities could 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 could 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.
On January 10, 2023, the Legislature referred this bill to the Urban Affairs Committee, which held a hearing on January 31, 2023. The Committee voted the bill out of Committee and, on February 10, 2023, moved the bill to General File. This bill is on track to becomes law this Session.
Taxes and Tax Equalization and Review Commission
LB 90 (Day) proposes to eliminate tax incentive performance audits for the Nebraska Advantage Act and the Nebraska Job Creation and Mainstreet Revitalization Act. This bill would also update the code designations under the North American Industry Classification System, including those definition for “high-tech firm” and “renewable energy firm.”
On January 9, 2023, the Legislature referred this bill to the Executive Board, which held a hearing on February 10, 2023. The Board approved the bill with an amendment to expand the number of updated code designations. Senator Day withdrew her name as cosponsor, and Senator Dorn replaced her. On February 15, 2023, the Committee moved the bill, as amended, to General File. This bill is on track to becomes law this Session.
Telecommunications
LB 134 (Cavanaugh, J.) would 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.
On January 10, 2023, the Legislature referred this bill to the Transportation and Telecommunications Committee. The Committee will hold a hearing on this bill on February 21, 2023.