2025 Legislative Bulletin 19

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

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pecial 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; Sen. Stan Clouse District 37 • 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

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hanks 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

League Legislative Bulletin, May 16, 2025, Page 2

Continued on page 3

League of Nebraska Municipalities

LEGISLATIVE BULLETIN

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.

5. As originally introduced by Sen. Wordekemper, LB 400 has a fiscal note of over $340,000.

BACKGROUND ON AM1129 OR A SIMILAR According to the fiscal note, the State of Nebraska AMENDMENT: currently has 75 public servants (airport If adopted, AM1129 (or a similar firefighters, investigators, and instructors amendment to any other bill) would be a under the amendment. The 75 state public COSTLY UNFUNDED MANDATE on servants referred to in the fiscal note DO cities and villages by providing a REBUTTAL NOT include municipal firefighters. For PRESUMPTION that 30+ types of cancer municipalities, the fiscal impact would be would be considered work-related for PAID substantially more, creating an unfunded AND VOLUNTEER FIREFIGHTERS! On mandate that for most municipalities May 8, the League forwarded to municipal would be paid for with property taxes. officials an email that was sent by the League Thanks to Sen. Mike Jacobsen of North Sen. Stan Clouse to all State Senators outlining some of the Platte who made compelling arguments District 37 MANY concerns about this significant in strong opposition to AM1129 during unfunded mandate: floor debate on Select File! He reminded 1. AM1129 (or an amendment like it) creates a his colleagues that adoption of AM1129 clearly would rebuttable presumption that more than 30 types be an unfunded mandate resulting in property tax of cancer are work related for state and local increases! Sen. Jacobson stated he supported LB 608 firefighters, whether paid or volunteer. There as amended on General File but would oppose the bill are no rebuttable presumptions for any other if AM1129 was adopted. Thanks to Sen. Stan Clouse injury in the Nebraska Workers’ Compensation of Kearney and others who told the League they also Act. This rebuttable presumption is contrary would oppose AM1129 if it came up for a vote. to basic principles of the Nebraska Workers’ The League continues to support LB 608 (as amended Compensation Act.

by AM904 on General File) to define and redefine 2. Some of the exposures listed in the amendment terms to the First Responder Recruitment and are entirely unrelated to work. For example, Retention Act which provides a 100% tuition waiver Digoxin (duh-jaak-sin) is a medication used to for a first responder, a first responder’s qualifying treat heart failure. Heart medication is unrelated child, an eligible disabled person, or an eligible to exposures in a firefighter’s occupation. Creating disabled person’s qualifying child, as prescribed to a rebuttable presumption that cancers associated state postsecondary institutions, as well as providing with these exposures are work related, will bring procedures for applications. In addition, AM904 frivolous and unfounded claims that employers provides for 50% tuition waivers for correctional and insurers will be forced to defend. Many types officers or youth detention officers (and their qualifying of cancers listed in the amendment may not children), eligible disabled persons (former officers and be linked to work alone, but are influenced by their qualifying children.)  family history, genetics, previous jobs, lifestyle, environmental causes unrelated to firefighting.

LR 229: READ THE TEXT ON PAGE 4 3. AM1129 provides coverage for volunteer firefighters who have acted as a volunteer for more 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!

League Legislative Bulletin, May 16, 2025, Page 3

League of Nebraska Municipalities

LEGISLATIVE BULLETIN LR229 2025

LR229 2025 ONE HUNDRED NINTH LEGISLATURE FIRST SESSION

LEGISLATIVE RESOLUTION 229

Introduced by Clouse, 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

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n 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 -1Public 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. 

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League of Nebraska Municipalities

LEGISLATIVE BULLETIN

LB 36: Natural Resources package with battery recycling and endangered species mitigation bank provisions adopted by Legislature

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n May 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 Sen. Jana Hughes Sen. Mike Moser Sen. Tom Brandt District 22 District 32 of Transportation to establish and operate a District 24 mitigation bank in areas where an endangered is identified and is a member of a battery stewardship species habitat may exist.

• LB 344 would amend Nebraska law pertaining organization (BSO) operated under a battery stewardship to ground water allocations for municipalities plan (Plan) approved by the Department of Environment and municipal-served and self-served and Energy (DEE).The BSO Plan must include duties commercial or industrial users in the fully and responsibilities to provide for collection sites, annual appropriated and over-appropriated areas of reports, and provide for collecting all costs associated with implementing the plan. the state.

LB 590, introduced by Sen. Mike Moser from • LB 459 would create the Home Columbus gives the Nebraska Department Weatherization Clearinghouse. of Transportation the authority to operate • LB 562 would increase the caps for a mitigation bank or in-lieu fee program by fees charged by the Game and Parks contracting with public and private parties to Commission. meet its mitigation obligations for endangered • LB 480 would give the Game and species and other environmental impacts under Parks Commission the authority 2025 state and federal law. The current use of a similar to administer and carr y out additional projects under the Water LEGISLATIVE concept for wetlands mitigation has been very successful in expediting transportation projects.

Recreation Enhancement Act at Lake SESSION LB 344, introduced by Sen. Tom Brandt from McConaughy, Lewis and Clark State Plymouth replaces an existing law and a law currently on Recreation Area, and Niobrara State Park.

LB 309 and LB 590 were supported by the League the books set to take effect in 2026 that set the parameters and the League testified neutral on LB 344 to of how municipal water use can be regulated in a Natural provide background information on negotiations Resources District Integrated Management Plan (IMP) in a fully or over appropriated basin. LB 344 exempts most held in 2003/2004.

LB 309, introduced by Sen. Jana Hughes as municipal water use from potential regulation in an IMP amended into LB 36 requires that beginning Jan. 1, except beginning in 2026 that any NEW or EXPANDED 2028, no producer or retailer may sell, offer for sale, customer with an annual use in excess of 25 million gallons or distribute for sale in Nebraska, certain batteries could be subject to regulation under an IMP. However, LB or battery-containing products unless the producer 344 also limits the IMP regulatory scope to some reporting of the covered battery or battery-containing product Continued on page 6 / See Battery League Legislative Bulletin, May 16, 2025, Page 5

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n May adopted24credit25 for such cost, or16 imposing and conditions 17 terms18 19 20 21 19 14, the 20Legislature 21 unanimously 22 23 LB 526 introduced by Sen. Mike Jacobson on such operation HOLIDAY DAY 27 DAY 28 DAY 29 DAY 30 HOLIDAY DAY 9 DAY 10 DAY 11 DAY 12 from North Platte. LB 526 will be presented to the As amended by AM 691, LB 526 adds some requirements 23 to 24 26 to27 28 28The original 29 30 of31on a public power supplier Governor26 for his 27 signature. version conduct25 a load study DAY 33 DAY 34 DAY 35 DAY 32necessitated DAY 13a 2.5-cent DAY 14 DAY 15 DAY 16 tax DAY determine 17 LB 526 would impose per kWh excise the costs, impacts, DAY and 31 upgrades on cryptocurrency mining operations consuming before serving a cryptocurrency mining customer over 1,000 kWh annually and allows public power consuming over 1,000 kWh annually. The public power suppliers to require financial assurances from these supplier must publicly publish on its website the number Sun Mon Tues Wed Thur Friof cryptocurrency Sat Sunoperations Mon under Tuesthe supplier’s Wed Thur Fri operations. mining The bill was amended on a prior round of debate with jurisdiction 2 3 4 1 and the annual energy usage of1each operation.

AM 691 which removes the excise tax. The amended Also, as amended by AM 691, LB 526 allows a public DAY 54 DAY 55 DAY 56 RECESS bill also includes municipal electric systems in the power supplier to interrupt the cryptocurrency mining 6 according 7 9 10 11 4 5 amended 6 bill 7 operations 8 definition 2 of public3power supplier.

The electric service to8 the supplier’s RECESS DAY DAYseems 58 DAY 59 DAY 60 DAY 36of DAY 37 DAY 38 supplier DAY 39 RECESS clarifies the authority a public power to established rate schedules and policies.

This 57 section impose requirements on any cryptocurrency mining 13 14 mining 15 operation 16 be17 18 9 10 11 12 13 14to require 15 that the cryptocurrency operation for the cost of infrastructure upgrades on some form of an interruptible rate.

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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.

Sun Mon Tues Wed Thur Fri Municipal water use has largely 1 exempted 2 from3IMP regulation 4 5 6 been DAY RECESS RECESS RECESS RECESS for 20 years as 89 a result of a negotiated measure adopted in10 2005. However, 8 9 11 12 13 this exemption is set to expire in DAY 90 January 2026. Under current law, 15exemption 16 will17 18 by 19 20 the be replaced an exemption from IMP regulation for 22municipal 23 water 24 use25based 26 27 on the highest use in the last 20 years and ALL municipal water 29 30 use over that amount could be subject to regulation and mitigation requirements in an IMP. Also, Federal & not State the current law does limitHolidays the January 20 –toMartin Luther King Jr. Day potential mitigation consumptive use.  February 17 – Presidents’ Day

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Legislative Recess Days February 14 March 7, 21, 24 April 4, 7, 18, 21 May 2, 5, 16, 23 June 3, 4, 5, 6

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April 25 – Arbor Day** May 26 – Memorial Day

* The Speaker reserves the right to revise the sessionMay calendar.

League Legislative Bulletin, 16, 2025, Page 6

** The Legislature will be in session on Friday, April 25, the Arbor Day Holiday. Any legislative employees who work that day w receive compensatory time for hours worked on the holiday.