2025 Legislative Bulletin 14

109th Legislature, First Session

April 11, 2025 - Bulletin 14

ITEMS OF INTEREST TO MUNICIPALITIES Stories inside: • LB 650: Revenue Committee Priority Bill amended on General File with AM923 supported by the League; LB 650 as amended was advanced to Select File • LB 186: Entertainment district bill provisions passed by Legislature • LB 36: Natural Resources package with battery recycling and endangered species mitigation bank provisions advanced to Select File

League of Nebraska Municipalities

LEGISLATIVE BULLETIN

LB 650: Revenue Committee Priority Bill amended on General File with AM923 supported by the League; LB 650 as amended was advanced to Select File

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n April 11, LB 650 was debated on General the handout entitled “Closing the Gap: Nebraska’s Budget” is on pages 4-6 of this Bulletin.

File. The League opposed LB 650 Although AM923 incorporates provisions as originally introduced but supports of LB 458, the detrimental provisions of AM923 to LB 650, the Standing LB 458 are NOT included in AM923. In Committee Amendment to the bill. addition, provisions relating to the Sports AM 923 was amended into LB 650 with Arena Facility Financing Act and Good Life 38 ayes, 1 nay, 6 present and not voting, Districts also are not included in AM 923. and 4 excused and not voting. AM923 With adoption of AM923, the provisions of replaces the original provisions of LB LB 270 were incorporated into LB 650. LB 650. (Before AM923 was adopted, it 270 was introduced by Bellevue Sen. Victor was amended by AM1020 which does Rountree on behalf of the League, specifically not affect municipalities.) LB 650 as Sen. R. Brad von Gillern at the request of Papillion Mayor David amended was advanced to Select File with District 4 Black. As noted in the Revenue Committee 36 ayes, 2 nays, 6 present and not voting, handout, “LB 270 would allow an individual and 5 excused and not voting.

Elkhorn Sen. Brad von Gillern, Chair of the Revenue designated by a municipality to review sales and use tax Committee, briefed Senators on April 10 about the information to notify the Auditor of Public Accounts of provisions of AM923. Please review the handout any suspected sales and use tax reporting irregularities given to Senators at the Revenue Committee and discrepancies.”  briefing outlining the provisions of AM923;

LB 186: Entertainment district bill provisions passed by Legislature O n April 10, the Legislature passed LB 113, which contains the provisions of the entertainment district bill (LB 186) introduced by Sen. Robert Dover. The Legislative voted 33-13 to pass the bill.

The language contained in LB 113 changes the definition of commons area within entertainment districts. With the changes, a common area means an area: 1. Within an entertainment district designated by a local governing body; 2. Shared by authorized licensee with entertainment district licenses; 3. Abutting the licensed premises of the licensees;

4. With reasonable safety measures in place to protect pedestrians, including signage, lighting, and reduced motor vehicle speeds when motor vehicles will be near pedestrians; 5. With a prohibition on the carrying of open alcoholic liquor containers and the consumption of alcoholic liquor on any open street or highway except when necessary to cross at a designated crosswalk.

These provisions apply to all classes of municipalities.

One of the most significant changes to entertainment districts is that common areas will no longer need to be closed to vehicular traffic.

The bill was delivered to the Governor for his signature or veto. 

League Legislative Bulletin, April 11, 2025, Page 2

League of Nebraska Municipalities

LEGISLATIVE BULLETIN

LB 36: Natural Resources package with battery recycling and endangered species mitigation bank provisions advanced to Select File

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n April 9, the Legislature advanced to select file LB 2025 36, as amended by AM635. The amendment creates a “Christmas tree” package that includes the language of six bills LEGISLATIVE heard before the Natural Resources Committee. Interestingly, the original LB 36 is not one of the bills included in the SESSION package. Bills included in the package of LB 36 are: • LB 309, the Safe Battery Collection and Recycling Act. mitigation obligations for endangered species • LB 590, Authorize the Nebraska Department of and other environmental impacts under state and Transportation to establish and operate a mitigation bank federal law. The current use of a similar concept in areas where an endangered species habitat may exist. for wetlands mitigation has been very successful in • LB 344 would amend Nebraska law pertaining to ground expediting transportation projects. water allocations for municipalities and municipal-served LB 344 introduced by Sen. Tom Brandt from and self-served commercial or industrial users in the fully Plymouth would replace an existing law and a law appropriated and over-appropriated areas of the state. currently on the books set to take effect in 2026 • LB 459 would create the Home Weatherization that set the parameters of how municipal water use Clearinghouse can be regulated in a Natural Resources District • LB 562 would increase to the caps for fees charged by Integrated Management Plan (IMP) in a fully or the Game and Parks Commission over appropriated basin. LB 344 would exempt • LB 480 would give the Game and Parks Commission the most municipal water use from potential regulation authority to administer and carry out additional projects in an IMP except beginning in 2026 that any under the Water Recreation Enhancement Act at Lake NEW or EXPANDED customer with an annual McConaughy, Lewis and Clark State Recreation Area, use in excess of 25 million gallons annually could and Niobrara State Park. be subject to regulation under an IMP. However, LB 309 and LB 590 were supported by the League and the LB 344 also limits the IMP regulatory scope to League testified neutral on LB 344 to provide background some reporting and potential mitigation of the information on negotiation held in 2003/2004. “consumptive” water use by the customer which LB 309 introduced by Sen. Jana Hughes as amended into would allow some credit for wastewater flow and LB 36 adopts would require that beginning Jan. 1, 2028, other returns to the system. no producer or retailer may sell, offer for sale, or distribute Municipal water use has largely been exempted for sale in Nebraska, certain batteries or battery-containing from IMP regulation for 20 years as a result of a products unless the producer of the covered battery or negotiated measure adopted in 2005. However, battery-containing product is identified and is a member of this exemption is set to expire in January 2026. a battery stewardship organization (BSO) operated under a Under current law, the exemption will be replaced battery stewardship plan (Plan) approved by the Department by an exemption from IMP regulation for of Environment and Energy (DEE). The BSO Plan must municipal water use based on the highest use in include duties and responsibilities to provide for collection the last 20 years and ALL municipal water use sites, annual reports, and provide for collecting all costs over that amount could be subject to regulation associated with implementing the plan. and mitigation requirements in an IMP. Also, the LB 590 introduced by Sen. Mike Moser from Columbus current law does not limit the potential mitigation would give the Nebraska Department of Transportation the to consumptive use.  authority to operate a mitigation bank or in-lieu fee program by contracting with public and private parties to meet its League Legislative Bulletin, April 11, 2025, Page 3

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League of Nebraska Municipalities

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