109th Legislature, First Session May 16, 2025 - Bulletin 19
ITEMS OF INTEREST TO MUNICIPALITIES
Stories inside:
• LB 90: League bill on improvement districts for cities of the first class approved by Gov. Pillen
• LR 229: League-supported Interim Study introduced to examine the ‘Firefighter Cancer Benefits Act’ and potential changes to the act that would not include an unfunded mandate
• Legislature adopts LB 311 to clarify federal preemption of some broadband services
• LB 36: Natural Resources package with battery recycling and endangered species mitigation bank provisions adopted by Legislature
• LB 526: Amended crypto bill adopted by legislature
LB 261 and LB 264:
The Legislature passed an $11.1 billion two-year budget on May 15. LB 261 and LB 264 are the main-line budget bills; other bills relating to the budget which passed include LB 260, LB 262, LB 263, and LB 265. Unfortunately, Sections 67 and 113 of LB 264 will transfer a total of $3 million from the Civic and Community Center Financing Fund (CCCFF) to help balance the budget in the biennium: $1.5 million is swept to the General Fund in FY 25-26 and another $1.5 million will be swept to the General Fund in FY 26-27. This is in addition to the $4 million swept from the CCCFF in 2024! It is reported that LB 264 included $427 million in reductions to various government services in addition to cash fund transfers to help balance the state’s budget over the biennium. The projected deficit at one point was as high as $432 million, then was reduced to $124 million before increasing back up to $396 million due to new economic forecasting. Proponents of the budget package state that the budget for the biennium is balanced; several Senators opposing the budget package emphasized that the budget for the biennium is not balanced, and a special session may be needed.
League of Nebraska Municipalities LEGISLATIVE BULLETIN
LB 90: League bill on improvement districts for cities of the first class approved by Gov. Pillen
LEGISLATIVE SESSION 2025
Special thanks to Sen. Stan Clouse of Kearney for introducing LB 90 on behalf of the League. Thanks to Sen. Robert Clements of Elmwood and Sen. Dan Quick of Grand Island for co-introducing the bill. On May 13, Gov. Pillen signed LB 90. Since LB 90 does not have an emergency clause, it will take effect three months after the Legislature adjourns sine die.
LB 90 amends Section 16-617 to modernize and harmonize provisions dealing with improvement districts in cities of the first class.
The bill contains several provisions including:
• Clarifying the types of improvements permitted for cities of the first class and harmonizing those with permitted improvements for cities of the second class;
• Giving cities of the first class the option (like cities of the second class already have) to fund improvements in districts at public cost OR by levy of special assessments. Currently, cities of the first class are required to levy special assessments for improvements made with an improvement district; and
• Limiting the instances when property owners may dictate the types of materials to be used in the public bidding process to only when a district is formed by petition.
LR 229: League-supported Interim Study
introduced to examine the ‘Firefighter Cancer Benefits Act’ and potential changes to the act that would not include an unfunded mandate
Thanks to Sen. Stan Clouse of Kearney for introducing LR 229 on May 15 at the request of the League to examine the Firefighter Cancer Benefits Act (Sections 35-1002 to 35-1010) and potential changes to the act that would NOT include an unfunded mandate and would better serve the needs of Nebraska’s paid and volunteer firefighters. This Interim Study shall include, but not be limited to, an examination of legislation in other states with benefits similar to the Firefighter Cancer Benefits Act and how that legislation has been incentivized and implemented in those states, if it includes benefits for volunteer firefighters, and how those benefits are funded. This approach would be far better than amending workers’ compensation laws with a “rebuttable presumption” that 30+
types of cancer are work-related for paid and volunteer firefighters.
League Legislative Bulletin #18 included an article relating to LB 608 (AM1129), considered on Select File on May 8. The League strongly opposed the costly unfunded mandate in AM1129 to adopt a rebuttable presumption that 30+ types of cancer are work-related for paid and volunteer firefighters. Fremont Sen. Dave Wordekemper, a former Fremont firefighter, introduced AM1129 to LB 608 on Select File. (LB 400, introduced by Sen. Wordekemper, was advanced to General File by the Business and Labor Committee with AM702 which is identical to AM1129.) Sen. Wordekemper ultimately withdrew AM1129 so LB 608 could be advanced to
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Sen. Stan Clouse District 37
League of Nebraska Municipalities LEGISLATIVE
Final Reading; however, he and Sen. Bob Hallstrom of Syracuse stated they would try to find a path forward to offer AM1129 to another bill this session. Time may be running out this session for AM1129 (or an amendment like it) to be adopted to another bill. Unless you have already done so, PLEASE contact your Senator(s) to oppose the adoption of a rebuttal presumption for paid and volunteer firefighters relating to cancer!
BACKGROUND ON AM1129 OR A SIMILAR AMENDMENT:
If adopted, AM1129 (or a similar amendment to any other bill) would be a COSTLY UNFUNDED MANDATE on cities and villages by providing a REBUTTAL PRESUMPTION that 30+ types of cancer would be considered work-related for PAID AND VOLUNTEER FIREFIGHTERS! On May 8, the League forwarded to municipal officials an email that was sent by the League to all State Senators outlining some of the MANY concerns about this significant unfunded mandate:
than 5 years. There is no requirement that the volunteer firefighter responded to a certain number of calls or was ever called up to duty.
4. AM1129 does not provide for procedural or judicial mechanisms to rebut the presumption. It also does not outline whether an employer or insured can suspend benefits unilaterally or with court approval.
1. AM1129 (or an amendment like it) creates a rebuttable presumption that more than 30 types of cancer are work related for state and local firefighters, whether paid or volunteer. There are no rebuttable presumptions for any other injury in the Nebraska Workers’ Compensation Act. This rebuttable presumption is contrary to basic principles of the Nebraska Workers’ Compensation Act.
2. Some of the exposures listed in the amendment are entirely unrelated to work. For example, Digoxin (duh-jaak-sin) is a medication used to treat heart failure. Heart medication is unrelated to exposures in a firefighter’s occupation. Creating a rebuttable presumption that cancers associated with these exposures are work related, will bring frivolous and unfounded claims that employers and insurers will be forced to defend. Many types of cancers listed in the amendment may not be linked to work alone, but are influenced by family history, genetics, previous jobs, lifestyle, environmental causes unrelated to firefighting.
3. AM1129 provides coverage for volunteer firefighters who have acted as a volunteer for more
5. As originally introduced by Sen. Wordekemper, LB 400 has a fiscal note of over $340,000. According to the fiscal note, the State of Nebraska currently has 75 public servants (airport firefighters, investigators, and instructors under the amendment. The 75 state public servants referred to in the fiscal note DO NOT include municipal firefighters. For municipalities, the fiscal impact would be substantially more, creating an unfunded mandate that for most municipalities would be paid for with property taxes. Thanks to Sen. Mike Jacobsen of North Platte who made compelling arguments in strong opposition to AM1129 during floor debate on Select File! He reminded his colleagues that adoption of AM1129 clearly would be an unfunded mandate resulting in property tax increases! Sen. Jacobson stated he supported LB 608 as amended on General File but would oppose the bill if AM1129 was adopted. Thanks to Sen. Stan Clouse of Kearney and others who told the League they also would oppose AM1129 if it came up for a vote. The League continues to support LB 608 (as amended by AM904 on General File) to define and redefine terms to the First Responder Recruitment and Retention Act which provides a 100% tuition waiver for a first responder, a first responder’s qualifying child, an eligible disabled person, or an eligible disabled person’s qualifying child, as prescribed to state postsecondary institutions, as well as providing procedures for applications. In addition, AM904 provides for 50% tuition waivers for correctional officers or youth detention officers (and their qualifying children), eligible disabled persons (former officers and their qualifying children.)
Sen. Stan Clouse District 37
League of Nebraska Municipalities LEGISLATIVE BULLETIN
ONE HUNDRED
NINTH LEGISLATURE FIRST SESSION
LEGISLATIVE RESOLUTION 229
Introduced byClouse, 37.
PURPOSE: The purpose of this resolution is to propose an interim study to examine the Firefighter Cancer Benefits Act and potential changes to the act that would not include an unfunded mandate and would better serve the needs of Nebraska's paid and volunteer firefighters. This study shall include, but need not be limited to, an examination of legislation in other states with benefits similar to the Firefighter Cancer Benefits Act and how that legislation has been incentivized and implemented in those states, if it includes benefits for volunteer firefighters, and how those benefits are funded.
NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE ONE HUNDRED NINTH LEGISLATURE OF NEBRASKA, FIRST SESSION:
1. That the Revenue Committee of the Legislature shall be designated to conduct an interim study to carry out the purposes of this resolution.
2. That the committee shall upon the conclusion of its study make a report of its findings, together with its recommendations, to the Legislative Council or Legislature.
Legislature adopts LB 311 to clarify federal preemption of some broadband services
On May 14, the Legislature adopted LB 311 introduced by Sen. Wendy DeBoer from Omaha. According to the introducer, the purpose of LB 311 is to clarify that federal law preempts local government regulations in
managing broadband Internet access services including rates, contract terms, and conditions. LB 311 was originally supported by Charter Communications, Cox Communications, and the Nebraska Telecommunications Association. LB 311 was opposed by the Nebraska County Officials Association, the Nebraska Public Service Commission, the Nebraska Power Association, and the Omaha Public Power District. Opponents argued that the bill was written too broadly and would negatively affect
the ability of local governments and the Public Service Commission to manage right-of-way access, excavations, and other necessary government functions. After extensive negotiations, LB 311 was amended and narrowed so that the scope of the bill only clarified that local governments could only regulate broadband service rates, service, or service contract terms in a manner consistent with the federal government and other state laws. Other local government regulations would remain intact.
League of Nebraska Municipalities LEGISLATIVE BULLETIN
LB 36: Natural Resources package with battery recycling and endangered species mitigation bank provisions adopted by Legislature
OnMay 14, on a 43 – 6 vote the Legislature adopted LB 36 as amended by AM 635. The amendment creates a “Christmas tree” package that includes the language of six bills heard before the Committee. Interestingly, the original LB 36 is not one of the bills included in the package. Bills included in the package of LB 36 are:
• LB 309, the Safe Battery Collection and Recycling Act.
• LB 590, authorize the Nebraska Department of Transportation to establish and operate a mitigation bank in areas where an endangered species habitat may exist.
• LB 344 would amend Nebraska law pertaining to ground water allocations for municipalities and municipal-served and self-served commercial or industrial users in the fully appropriated and over-appropriated areas of the state.
• LB 459 would create the Home Weatherization Clearinghouse.
• LB 562 would increase the caps for fees charged by the Game and Parks Commission.
• LB 480 would give the Game and Parks Commission the authority to administer and carry out additional projects under the Water Recreation Enhancement Act at Lake McConaughy, Lewis and Clark State Recreation Area, and Niobrara State Park.
is identified and is a member of a battery stewardship organization (BSO) operated under a battery stewardship plan (Plan) approved by the Department of Environment and Energy (DEE).The BSO Plan must include duties and responsibilities to provide for collection sites, annual reports, and provide for collecting all costs associated with implementing the plan.
LEGISLATIVE
LB 309 and LB 590 were supported by the League and the League testified neutral on LB 344 to provide background information on negotiations held in 2003/2004.
LB 309, introduced by Sen. Jana Hughes as amended into LB 36 requires that beginning Jan. 1, 2028, no producer or retailer may sell, offer for sale, or distribute for sale in Nebraska, certain batteries or battery-containing products unless the producer of the covered battery or battery-containing product
LB 590, introduced by Sen. Mike Moser from Columbus gives the Nebraska Department of Transportation the authority to operate a mitigation bank or in-lieu fee program by contracting with public and private parties to meet its mitigation obligations for endangered species and other environmental impacts under state and federal law. The current use of a similar concept for wetlands mitigation has been very successful in expediting transportation projects.
LB 344, introduced by Sen. Tom Brandt from Plymouth replaces an existing law and a law currently on the books set to take effect in 2026 that set the parameters of how municipal water use can be regulated in a Natural Resources District Integrated Management Plan (IMP) in a fully or over appropriated basin. LB 344 exempts most municipal water use from potential regulation in an IMP except beginning in 2026 that any NEW or EXPANDED customer with an annual use in excess of 25 million gallons could be subject to regulation under an IMP. However, LB 344 also limits the IMP regulatory scope to some reporting
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Sen. Mike Moser District 22
Sen. Tom Brandt District 32
Sen. Jana Hughes District 24
League of Nebraska Municipalities LEGISLATIVE BULLETIN
On May 14, the Legislature unanimously adopted LB 526 introduced by Sen. Mike Jacobson from North Platte. LB 526 will be presented to the Governor for his signature. The original version of LB 526 would impose a 2.5-cent per kWh excise tax on cryptocurrency mining operations consuming over 1,000 kWh annually and allows public power suppliers to require financial assurances from these operations.
March
The bill was amended on a prior round of debate with AM 691 which removes the excise tax. The amended bill also includes municipal electric systems in the definition of public power supplier. The amended bill clarifies the authority of a public power supplier to impose requirements on any cryptocurrency mining operation for the cost of infrastructure upgrades necessitated by such operations, including, but not limited to, requiring direct payment or a letter of
credit for such cost, or imposing terms and conditions on such operation
April
As amended by AM 691, LB 526 adds some requirements on a public power supplier to conduct a load study to determine the costs, impacts, and upgrades necessitated before serving a cryptocurrency mining customer consuming over 1,000 kWh annually. The public power supplier must publicly publish on its website the number of cryptocurrency mining operations under the supplier’s jurisdiction and the annual energy usage of each operation. Also, as amended by AM 691, LB 526 allows a public power supplier to interrupt the cryptocurrency mining operations electric service according to the supplier’s established rate schedules and policies. This section seems to require that the cryptocurrency mining operation be on some form of an interruptible rate. LB 526 will take effect immediately upon the signature of the Governor.
LB 526: Amended crypto bill adopted by legislature Battery
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Legislative calendar
May
February 14
March 7, 21, 24
April 4, 7, 18, 21
May 2, 5, 16, 23
June 3, 4, 5, 6
June
and potential mitigation of the “consumptive” water use by the customer which would allow some credit for wastewater flow and other returns to the system.
Municipal water use has largely been exempted from IMP regulation for 20 years as a result of a negotiated measure adopted in 2005. However, this exemption is set to expire in January 2026. Under current law, the exemption will be replaced by an exemption from IMP regulation for municipal water use based on the highest use in the last 20 years and ALL municipal water use over that amount could be subject to regulation and mitigation requirements in an IMP. Also, the current law does not limit the potential mitigation to consumptive use.
