Nebraska Legislative Update - April 19, 2024

Policy

The Nebraska Legislature adjourned its 2024 session on Thursday, April 18. While a combination of filibusters and only 60 working days limited the number of bills debated, the Center was pleased to see a much needed injection of state support for child care providers, health care affordability, and broadband development.

After successful passage by the body, Gov. Jim Pillen signed into law three bills supporting child care providers.

  • Legislative Bill (LB) 856 allows certain providers to claim a subsidy for the care of their own children. 
  • LB 874 streamlines the hiring process for child care providers by allowing employee. background checks performed within six months to carry over between positions. 
  • LB 904 creates a more equitable approach to determining child care reimbursement rates.

The governor also signed into law bills to increase reimbursement rates for health care providers accepting Medicaid patients.

  • LB 62 provides consistent reimbursement for translation and interpretation services in health care settings. 
  • LB 1087 will leverage federal funds for Medicaid and Medicare reimbursement rates.

Lawmakers continued their support for broadband accessibility, a vital component of rural economic development. LB 1389, which offers an incentive for the installation of broadband equipment in the form of a personal property tax exemption, was passed as part of the Revenue Committee’s priority bill, LB 1317.

Despite widespread efforts by opponents, the Legislature—in one of its final items of business—passed LB 1402. The legislation allocates $10 million in state funding directly to private schools and repeals and replaces LB 753, the Opportunity Scholarships Act, which was passed in 2023. The Legislature’s action could nullify a November vote on a ballot measure to repeal the earlier legislation.

The Center’s priority bill, LB 1116, did not advance out of the Agriculture Committee, but as part of a legislative resolution introduced by Sen. Teresa Ibach, we have begun work on an interim study to thoroughly examine the accessibility of fresh foods in the state. We will use the information we gather to determine the most useful action we can encourage the Legislature to take in 2025 to support small independently owned grocery stores and the rural communities they serve.

As we conclude our regular updates this year, we offer our thanks to our fellow Nebraskans who participated in the legislative process this session, especially those who traveled to Lincoln and provided testimony at the committee hearings. Directly engaging on a bill helps show senators which issues Nebraskans care most about. Your participation made a difference.

The Legislature’s regular session may be over, but senators are expected to be summoned back this summer for a special session to address property tax relief. Although the issue was a priority for Gov. Pillen this session, senators could not come to an agreement on a property tax relief plan before adjournment. We will keep you informed if and when a special session is called.  

As we look ahead to the 2025 legislative session, please do not hesitate to contact me at carliej@cfra.org or 402.687.2100 ext. 1032 to share rural issues important to you. 

Read more about the bills we followed this session and to see their final status below.

Economic development

LB 865 (Bostelman) - Support: Last year, the Legislature established the Nebraska Broadband Office via LB 683. As part of the Nebraska Department of Transportation, the office is dedicated to bringing fast, reliable internet connectivity to homes and businesses throughout the state. LB 865 will create accountability by requesting that internet providers submit an annual report to the Broadband Office detailing their advertised service plans and rates.

Final status: Signed into law by the governor on April 18 as part of LB 1031.

LB 889 and LB 1039 (Vargas) – Support: These bills sought to appropriate funds for the Rural Workforce Housing Fund, which the governor vetoed last year. Since it was established in 2018, the fund has allowed more than 45 rural Nebraska communities to add hundreds of housing units for new and existing residents.

Final status: Did not advance out of the Appropriations Committee.

LB 993 (Ibach) – Support: This legislation would have created the Apprenticeship Grant Act and provided an avenue for participants in the Supplemental Nutrition Assistance Program (SNAP) Next Step Program to receive training and education in skilled industries. The act would have incentivized businesses to partner with registered apprenticeship programs and offer a full-time job with a livable wage to an apprentice upon program completion. Businesses could have received grants for up to five apprentices each year, with funds used for wages and tuition.

Final status: Stalled on general file.

LB 1389 (Bostar) – Support: This bill will provide a personal property tax exemption for broadband equipment installed in areas receiving funds from the federal Broadband Equity, Access, and Deployment (BEAD) Program. Funding will help with the continued development of and access to reliable internet connections in rural areas by assisting with installation of the necessary infrastructure that will continue bringing high-speed internet to homes and businesses.

Final status: Passed on final reading as part of LB 1317 and awaiting the governor’s signature.

Food and agriculture

LB 321 (Brandt) – Support: Introduced last year, this bill expands the cottage food law to include refrigerated baked goods and other temperature-sensitive foods and helps reduce many of the regulatory burdens facing cottage food entrepreneurs.

Final status: Signed into law by the governor as part of LB 262 on April 18.

LB 952 (Day) - Support: This legislation would have required the Nebraska Department of Health and Human Services to implement the federal Summer Electronic Benefits Transfer Program (EBT). Modeled after the Pandemic EBT program, which ended in March 2023, the Summer EBT program provides additional food assistance while school is not in session to families with children who receive free or reduced school lunches. Families receive a pre-loaded card with $120 per child to help buy food throughout the summer.

Final status: LB 952 was not advanced after the governor announced Nebraska will participate in Summer EBT.

LB 1301 (DeKay) – Monitored: This bill, introduced at the request of the governor, adopts the Foreign-owned Real Estate National Security Act.

Final status: Signed into law by the governor on April 18.

LB 1040 (Fredrickson) – Support: Last year, LB 524 created an income tax credit program for restaurants and grocery stores that donate food to food banks and pantries. LB 1040 provides funding for the tax credit, which will help individuals and families in need access food while incentivizing businesses to reduce waste.

Final status: Passed on final reading as part of LB 937 and awaiting the governor's signature.

LB 1062 (Ibach) - Support: LB 1062 would have allowed for tuition loan repayment of up to $30,000 per year, for three years, for veterinary school graduates who provide at least 50% of their services to livestock in rural areas of the state.

Final status: Did not advance out of the Health and Human Services Committee.

LB 1116 (Ibach) - Support: This Center for Rural Affairs priority legislation would have created a grant and loan program for small Nebraska-owned grocery and convenience stores in areas where access to fresh, healthy food is limited, with priority given to low- and moderate-income communities. Under the proposal, grants or loans could be used for physical improvements to stores as well as professional services to expand or improve access to perishable or nutritious food.

Final status: Did not advance out of the Agriculture Committee.

Education

LB 1386 (Hansen) – Oppose: This bill would have given parents of children attending private schools the option to apply for an educational savings account with the state. The state would have provided each private school student $1,500 per year. Under the proposal, the estimated $40 million per year from state funds could be used for qualified education expenses like tuition, fees, and textbooks.

Final status: Did not advance out of the Education Committee.

LB 1402 (Linehan) – Oppose: This bill requires the state treasurer to establish education scholarships and eliminates the Opportunity Scholarships Act, which was approved last year under  LB 753.

Final status: Passed on final reading and awaiting the governor’s signature.

Health and safety

LB 62 (Cavanaugh, M.) – Support: Introduced last year, LB 62 provides Medicaid coverage for all necessary translation and interpretation services for eligible recipients using a medical assistance program. These services include, but are not limited to, laboratory, clinic, physician, pregnancy-related, and mental health care. Amended to LB 62 were provisions from LB 1237 and LB 871 (via AM 2878), which contain reporting requirements from Medicaid and Temporary Assistance for Need Families programs.

Final status: Signed into law by the governor on April 18.

LB 856 (Fredrickson) - Support: LB 856 allows for some child care workers the ability to receive subsidized care for their own children.

Final status: Signed into law by the governor on April 15.

LB 874 (Bostar) – Support: This legislation adjusts the regulations child care providers face to help address workforce needs. LB 874 allows providers to shift their license type at different points in the year to create more open spots. It also standardizes local regulations of where child care businesses can be located. To help address the industry’s high turnover rate, and the time it takes to complete background checks, the legislation allows certification of background checks completed within six months to be accepted by a different employer.

Final status: Signed into law by the governor on April 15.

LB 904 (DeBoer) – Support: This legislation allows the Department of Health and Human Services to use federally approved, alternative methods of determining child care reimbursement rates. It also establishes a baseline rate at the 75th percentile of the market rate. Provisions from LB 1178, which would provide grants for nursing homes to convert space in their facilities to child care centers, were amended onto the bill.

Final status: Signed into law by the governor on April 15.

LB 932 (Fredrickson) – Support: LB 932 will help address a shortage of psychologists and therapists available to treat patients seeking mental health care by expediting the approval process for recent graduates to get their provisional licensing from the Department of Health and Human Services,  which is currently backlogged. The bill also allows provisional license numbers to transfer once the required practice hours are met to obtain a full medical license.

Final status: Signed into law by the governor on April 15.

LB 1015 (Walz) - Support: This legislation would have provided tuition loan repayment of up to $60,000 per year to dentists who have been practicing for less than five years, provide care to Medicaid patients, and practice in rural areas with dental care shortages.

Final status: Did not advance out of the Health and Human Services Committee.

LB 1035 (Hughes) - Support: This legislation creates a program for pharmacies to donate non-expired and safe medications, which will then be available to patients who have difficulty affording their prescriptions.

Final status: Signed into law by the governor on April 15.

LB 1087 (Jacobson) - Support: LB 1087 will leverage federal funds to increase reimbursement rates, which could bring an additional $950 million to the state’s hospitals. The funds will help hospitals maintain quality care and keep costs down for patients with private insurance.

Final status: Signed into law by the governor on March 27.

Energy and environment

LB 399 (Brewer) – Oppose: Originally, this legislation would have required privately developed renewable energy generation facilities to file an application with the Nebraska Power Review Board, go through a public hearing process, and receive approval from the board to construct the generation facility. However, a compromise was reached via ER 130, which eliminated the need for approval from the Nebraska Power Review Board while still requiring public meetings to be held with representatives from the electric supplier in attendance.

Final status: Signed into law by the governor on April 16.

LB 541 (Lowe) – Oppose: This legislation would have changed the election of board members for OPPD and NPPD from nonpartisan to partisan.

Final status: Stalled on select file.

LB 956 (Bostar) – Support: This legislation requires the installation of aircraft detection lighting on wind turbines to lower light pollution. The light-mitigating technology would turn on only when aircraft are detected in the area.

Final status: Signed into law by the governor on April 15 as part of LB 1370.

LB 1234 (Wayne) – Support: This bill would have directed $1 million to the Nebraska Department of Energy to provide financial assistance for weatherization to low-income households. Under the proposal, the funds could be used to repair or replace insulation, windows and doors, and/or heating systems.

Final status: Did not advance out of the Appropriations Committee.

LB 1369 (Cavanaugh, J.) – Support: This bill would have allowed for energy produced by agriculture operations to be connected to local distribution facilities.

Final status: Stalled on general file.

LB 1370 (Bostelman) – Oppose: This bill requires any nuclear or fossil fuel energy plant to be replaced with a similar facility of equal or greater size.

Final status: Signed into law by the governor on April 15.

LB 1375 (Lowe) – Oppose: This bill, brought at request of the governor, would have eliminated the requirement that county planning commissions hold public hearings before submitting final decisions on permit application. It placed limitations on the kind of information a planning commission could use when granting conditional use permits. Additionally, if the board did not make a decision after 90 days of a project submission, completed applications would automatically be approved.  

Final status: Did not advance out of the Government, Military and Veterans Affairs Committee.