Nebraska Legislative Update - April 2, 2024

Policy

We are pleased to share an update on our priority legislation this session, Legislative Bill (LB) 1116, which would have created a grant or loan program for grocery and convenience stores in areas with limited grocery access to expand or improve fresh food options. While the bill did not advance out of the Agriculture Committee, last Monday Sen. Teresa Ibach introduced Legislative Resolution (LR) 374 to propose a related interim study.

As part of LR 374, the Center will work with Sen. Ibach to thoroughly examine the accessibility of fresh foods in the state and explore what action we might take next session to support small, independently owned grocery and convenience stores and ensure rural communities have local food access. We are grateful for Sen. Ibach’s continued advocacy on this critical issue.

As the legislative session enters its final days, there is also good news for local cottage food producers. LB 321, introduced last year by Sen. Tom Brandt, was amended to LB 262—an Agriculture Committee priority bill—and advanced to final reading.

Among its other components, LB 262 expands Nebraska’s cottage food law to allow for some refrigerated goods, such as cheese danishes, and sauces and dips like pesto and hummus, to be sold from home kitchens. This change offers an excellent opportunity for rural residents looking to supplement their income through cottage food sales while also providing additional food options in areas where choices are limited.

We value your input as we engage with the legislative process. If you would like to share your support, concerns, insights, or opposition with your senator, please do not hesitate to contact me at carliej@cfra.org or 402.687.2100 ext. 1032.

Below are the bills we are following, with recent updates in bold.

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 would seek to create accountability by requesting that internet providers submit an annual report to the Broadband Office detailing their advertised service plans and rates. A hearing was held on Jan. 22 before the Transportation and Telecommunications Committee. 

LB 865 was amended to LB 1031 via AM 2780. LB 1031 was placed on select file on March 25.

LB 889 and LB 1039 (Vargas) – Support: These bills would appropriate funds for the Rural Workforce Housing Fund, which the governor vetoed last year. Since its establishment in 2018, the fund has allowed more than 45 rural Nebraska communities to add hundreds of housing units for new and existing residents. Making sure our state has available and affordable housing is an essential investment for retaining and attracting residents in rural areas. A hearing was held for both bills on Feb. 14 before the Appropriations Committee. The Center submitted letters of support.

LB 993 (Ibach) – Support: This legislation would create the Apprenticeship Grant Act and provide 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 incentivize businesses that partner with registered apprenticeship programs and offer a full-time job with a livable wage to an apprentice upon program completion. Businesses can receive grants for up to five apprentices each year, with funds used for wages and tuition.

A hearing was held on Jan. 22 before the Business and Labor Committee. On Feb. 13, the bill was placed on general file with AM 2373, which reduced the number of apprentices a business could have in one year from 100 to five and placed a sunset date on the program to June 30, 2030.

LB 1389 (Bostar) – Support: This bill would provide a personal property tax exemption for broadband equipment installed in areas receiving funds from the federal Broadband Equity, Access, and Deployment (BEAD) Program. BEAD funds have been important for developing more widespread access to a reliable internet connection in rural areas throughout the state. This bill would assist with installing the infrastructure needed to continue bringing high-speed internet to homes and businesses in Nebraska. A hearing was held on Feb. 23 before the Revenue Committee. The Center submitted a letter of support.
 

Food and agriculture

LB 321 (Brandt) – Support: Introduced last year, this bill would expand the cottage food law to include refrigerated baked goods and other temperature-sensitive foods. Small food-based businesses create economic development opportunities in rural Nebraska, and LB 321 can help reduce many of the regulatory burdens facing these entrepreneurs. In order to ensure food safety, it is important for bill sponsors to work with local retailers and public health officials before and after this hearing to strike an appropriate balance. A hearing was held before the Agriculture Committee on Jan. 31, 2023. The Center submitted a statement of support.

LB 321 was amended to LB 262 via AM 2997. LB 262, the Agriculture Committee priority bill, was placed on final reading on March 25.

LB 952 (Day) - Support: This legislation would require the state’s 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 would provide additional food assistance to families with children who receive free or reduced school lunches while school is not in session. Families would receive a pre-loaded card with $120 per child to help buy food throughout the summer. An estimated 150,000 children throughout the state would be eligible. This bill was prioritized by Sen. Raymond Aguilar. A hearing was held on Feb. 1 before the Health and Human Services Committee.

Read: Center pleased to learn Nebraska will provide Summer-EBT for children

LB 1301 (DeKay) – Monitor: The Center is monitoring this bill, which was introduced at the request of Gov. Pillen. The Center has long held that our communities are strongest when the people who work our farms, ranches, and small businesses have a chance to share in their ownership. When outside investment in farmland grows, fewer people who work the land have that opportunity. Foreign ownership, especially by foreign-held multinational corporations, is one of the many threats to local ownership of Nebraska's agriculture assets. This bill was prioritized by Sen. Barry DeKay. A hearing was held on Feb. 6 before the Agriculture Committee. 

On March 26, the bill advanced to select file.

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 would provide the funding for the tax credit. This bill will help individuals and families in need access food while incentivizing businesses to reduce waste. A hearing was held on Feb. 28 before the Revenue Committee. The Center submitted a letter of support. 

LB 1040 was amended to LB 937 via AM 3206. LB 937 advanced to enrollment and review initial on March 28.

LB 1062 (Ibach) - Support: LB 1062 would allow 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. Adequate veterinary care is vital to successful livestock production, which is the top industry in Nebraska. There has been a persistent shortage of veterinarians providing rural livestock services, and LB 1062 would be one mechanism to address this need. A hearing was held on Jan. 24 before the Health and Human Services Committee.

LB 1116 (Ibach) - Support: This Center for Rural Affairs priority legislation would create 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. Funds may be used for physical improvements to stores as well as professional services to expand or improve access to perishable or nutritious food. The economic need is greatest in rural communities, where local grocers provide an essential service to residents who would otherwise be forced to travel long distances to buy food. The Center provided testimony in person. A hearing was held on Jan. 30 before the Agriculture Committee.

Read: Legislation introduced to provide financial support to small grocers
Read: Supporters encourage lawmakers to advance legislation assisting local grocery stores 
Watch: Rural Rapport: Heart of the Community: The Importance of Locally-Owned Grocery Stores
Read: ‘The lifeblood of the community’: States invest to save rural grocery stores

Education

LB 1386 (Hansen) – Oppose: This bill would give parents of children attending private schools the option to apply for an educational savings account with the state. The state would then provide each private school student $1,500 per year. The estimated $40 million per year from state funds can be used for qualified education expenses like tuition, fees, and textbooks. While parents have the right to choose to send their children to a private school, public dollars should fund public, not private, education. Additionally, the legislation would be disadvantageous for rural students, who make up only about 3% of private school students throughout the state. A hearing was held on Jan. 30 before the Education Committee.

LB 1402 (Linehan) – Oppose: Last year, the Legislature passed LB 753, which created a tax credit program for donations to scholarship granting organizations, which in turn provide tuition scholarships for primary and secondary school students. In November, voters will decide if this program will remain. LB 1402 would subvert voters’ decision if passed this year. This legislation is fundamentally the same as LB 753, but instead of providing tax credits for donors, the funds would be appropriated directly from the Nebraska Department of Education to scholarship granting organizations. This bill was prioritized by Sen. Lou Ann Linehan. A hearing was held on Feb. 6 before the Appropriations Committee. On Feb. 23, LB 1402 was placed on general file.

Health and safety

LB 62 (Cavanaugh, M.) – Support: Introduced last year, LB 62 would provide Medicaid coverage for all necessary translation and interpretation services for eligible recipients using a medical assistance program. Medicaid providers and patients in rural clinics have struggled with giving and receiving care due to a lack of available translation services. These services include, but are not limited to, laboratory, clinic, physician, pregnancy-related, and mental health. The Center testified in support. This bill was prioritized by Sen. Michaela Cavanaugh. The bill advanced to general file on Feb. 14. On March 7, LB 62 advanced to enrollment and review initial. 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.

LB 62 advanced to select file on March 15.

Read: Legislation would fund needed medical translation services

LB 856 (Fredrickson) - Support: Safe, reliable child care is one of the highest priorities for families with young children, but the state is experiencing a shortage of workers. LB 856 would eliminate income limits on eligibility for the federal child care subsidy for parents who work at a licensed child care program for at least 20 hours per week. This bill was prioritized by Sen. John Fredrickson.

A hearing was held on Jan. 26 before the Health and Human Services Committee. On Feb. 15, the bill was placed on general file. On Feb. 29, the bill was placed on select file.

LB 874 (Bostar) – Support: This legislation would adjust the regulations child care providers face and help address workforce needs. Need for child care is greater during the school year, and LB 874 will allow providers to shift their license type at different points in the year to create more open spots. It will also standardize local regulations of where child care businesses can be located. Additionally, child care is an industry with a high turnover rate, and the background check needed for each hire can take weeks to complete. This legislation allows certification of background checks completed within six months to be accepted by a different employer, shortening the time frame from application to work. LB 874 has been designated as a speaker priority bill. A hearing was held on Feb. 15 before the Health and Human Services Committee. The Center submitted a comment of support. On March 12, LB 874 advanced to general file with AM 2803, which simplified reporting requirements and removed the provision of political subdivisions from establishing residency requirements for a family care home. 

LB 874 advanced to select file on March 28.

LB 904 (DeBoer) – Support: This legislation would allow 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. Rural child care providers would benefit from this change, as the improved calculations will result in a higher reimbursement rate. This bill was prioritized by the Legislature’s Planning Committee.

A hearing was held on Feb. 14 before the Health and Human Services Committee. The Center submitted a comment of support. On Feb. 28, the bill advanced to general file with AM 2734. AM 2734 includes LB 904 along with another bill introduced this session, LB 1178, which would provide grants for nursing homes to convert space in their facilities to child care centers. On March 13, the bill advanced to select file.

LB 932 (Fredrickson) – Support: Throughout the state, there is a shortage of psychologists and therapists available to treat patients seeking mental health care. But the current system to approve recent graduates to obtain a provisional license to begin practicing is backlogged, and many providers who are qualified to begin seeing patients have to wait for approval from the Department of Health and Human Services. LB 932 would help address the need by expediting the provisional licensing process. It would also enable the provisional license number to transfer once the required practice hours are met to obtain a full medical license. LB 932 has been designated as a speaker priority bill. A hearing was held on Feb. 7 before the Health and Human Services Committee. The Center submitted a comment of support. On Feb. 15, the bill advanced to general file. On March 15, LB 932 was placed on select file. 

The bill advanced to enrollment and review for engrossment on March 26.

LB 1015 (Walz) - Support: This legislation provides 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. There are more than 340,000 people enrolled in Medicaid in Nebraska, with only 378 dental providers throughout the state. Most of these providers are concentrated in urban areas, and rural Medicaid patients face months on a waitlist and long drives to receive dental care. A hearing was held on Jan. 24 before the Health and Human Services Committee.

LB 1035 (Hughes) - Support: This legislation would create a program for pharmacies to donate non-expired and safe medications to be made available to patients who have difficulty affording their prescriptions. Currently, prescriptions are destroyed when excess stock is no longer needed. LB 1035 has widespread bipartisan support, with 42 of the state’s 49 state senators co-sponsoring the legislation. This bill was prioritized by Sen. Jana Hughes. A hearing was held on Jan. 31 before the Health and Human Services Committee.  On Feb. 21, the bill was placed on select file. On March 13, LB 1035 was placed on final reading.

LB 1087 (Jacobson) - Support: Due to inflation and low Medicare and Medicaid reimbursement rates, some rural hospitals have eliminated or reduced essential services to remain open. LB 1087 would leverage federal funds to increase reimbursement rates, which could bring an additional $950 million to the state’s hospitals. The funds would help hospitals maintain quality care and keep costs down for patients with private insurance. This bill was prioritized by Sen. Christy Armendariz. A hearing was held on Feb. 2 before the Health and Human Services Committee. On Feb. 15 the bill advanced to enrollment and review initial. On March 12, LB 1087 was placed on final reading. 

On March 27, the bill was signed by the governor.

Energy and environment

LB 399 (Brewer) – Oppose: This legislation would change the approval requirements for privately developed renewable energy generation facilities. Under this proposal, the owner of the planned facility must 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. The Nebraska Power Review Board is an unelected body appointed by the governor. We believe siting decisions should be made at the local level by individuals accountable to voters. A hearing was held on Feb. 22 before the Natural Resources Committee. The Center submitted a comment in opposition. This bill was prioritized by Sen. Bruce Bostelman. On Feb. 29, LB 399 was placed on general file with AM 2702, which adds the requirement for developers of renewable energy facilities to receive approval from the Nebraska Power Review Board to begin construction, requires public meetings with public power board members in attendance, and stipulates that the new facility cannot add duplicity or redundancy to the grid.

LB 541 (Lowe) – Oppose: This legislation would change the election of board members for OPPD and NPPD from nonpartisan to partisan. Decisions regarding power generation are complex, technological issues, not partisan issues, and therefore candidates for these positions should be considered based on their expertise, not their political affiliation. Additionally, this bill opens the door to extending partisanship to other state and local elections. This bill was prioritized by Sen. John Lowe. A hearing was held on March 15, 2023, before the Government, Military and Veterans Affairs Committee. It advanced to select file on Jan. 31.

Read: Public power, not partisan power

LB 956 (Bostar) – Support:  This legislation would require the installation of aircraft detection lighting on wind turbines. It would lower light pollution by using light-mitigating technology to turn on only when aircraft are detected in the area. A hearing was held on Feb. 7 before the Natural Resources Committee. The Center submitted a comment of support. LB 956 was amended to LB 1370 via AM 2863.

LB 1234 (Wayne) – Support: This bill would direct $1 million to the Nebraska Department of Energy to provide financial assistance for weatherization to low-income households. This includes repairing or replacing insulation, windows and doors, and/or heating systems. Weatherization efforts reduce energy usage and therefore utility bills. A hearing was held on Feb. 2 before the Appropriations Committee. The Center submitted a comment of support.

LB 1369 (Cavanaugh, J.) – Support: This bill would allow for energy produced by agriculture operations to connect to local distribution facilities. A hearing was held on Feb. 8 before the Natural Resources Committee. The Center submitted a comment of support. On March 5, the bill advanced to 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. This bill does not take into consideration numerous factors that affect a utility’s resource planning and has the potential to result in higher energy bills for customers. This bill was prioritized by the Natural Resources Committee. A hearing was held on Feb. 1 before the Natural Resources Committee. The Center submitted a comment of opposition. On March 7, the bill was placed on general file with AM 2863

LB 1370 advanced to select file on April 2.

LB 1375 (Lowe) – Oppose: This bill, brought at request of the governor, would eliminate the requirement that county planning commissions hold public hearings before submitting final decisions on permit application. It also places limitations on the kind of information a planning commission can use when granting conditional use permits. Additionally, if the board has not made a decision after 90 days of a project submission, completed applications would automatically be approved.  While these changes could expedite projects, it greatly limits a thorough, transparent, and accountable review process. A hearing was held on Feb. 7 before the Government, Military and Veterans Affairs Committee. The Center submitted a comment of opposition.