The 108th Nebraska Legislature, 2nd Session in Review

The 108th Legislature, 2nd Session convened on January 3, 2024, to begin their 60-day session and was scheduled to adjourn Sine Die, on April 18, 2024.

Any bills not passed, nor killed in the 2023 session automatically carried over to the 2024 session.

Being the second session of the biennium Legislature, La Vista Sen. John Arch, continued as Speaker of the Legislature, as did all the committee chairs, except for the General Affairs Committee and the Executive Board.

This was due to the departure of Senator Tom Briese who resigned to become State Treasurer, the former chair of both committees.

General Affairs Vice Chair, John Lowe was elected as Chair of the General Affairs Committee, as was the previous Vice Chair of the Executive Committee, Ray Aguliar, who was elected as Chair of the Executive Committee.

Lawmakers introduced 591 new bills this session and with the 530 that carried over from the last year, lawmakers had 1,121 great ideas to sort through.

The Legislature passed 370 bills this session but fell short of passing any additional property tax relief.

While Governor Pillen was complimentary of the Legislature for passing a fiscally conservative budget the last two years, making investments in the State's health care system, improvements to childcare access, and protecting the infrastructure from global adversaries, he also shared his disappointment in them not passing a property relief package.

He said, “With this Legislature’s failure to enact meaningful property tax relief, we’re behind at the first half, but we’ve still got a second half to go,” Pillen said. “I will call as many [special] sessions as it takes to finish the long overdue work of solving our property tax crisis.”

Additionally, the governor said he would convene a special session to enact “winner-take-all” legislation to end Nebraska’s split system of awarding electoral votes if there is sufficient legislative support.

“Enjoy halftime,” Pillen said in his closing remarks. “We’ll see you again here soon.”

For a special session on either "winner-take-all" or property tax relief, there must be a great deal of negotiation before calling lawmakers to Lincoln. Mainly, a plan that can garner 33 votes to end a filibuster in both cases.

The end of the session was the conclusion of thirteen term-limited senators and two not seeking re-election. (see article below).

With this being the end of a biennium Legislature, all bills not passed on their own accord or incorporated into other bills were Indefinitely Postponed, aka killed, and the concepts in such bills will have to be reintroduced in the 2025 session.

The first session of the 109th Legislature is scheduled to convene Jan. 8, 2025. 

Term-limited Senators

The following thirteen senators are term-limited this year, eight of which are registered Republicans and five Democrats.

Senator Joni Albrecht

District 17

Senator Carol Blood

District 3

Senator Bruce Bostelman

District 23

Senator Tom Brewer

District 43

Senator Steve Erdman

District 47

Senator Steve Halloran

District 33

Senator Lou Ann Linehan

District 39

Senator John Lowe

District 37

Senator Mike McDonnell

District 5

Senator Tony Vargas

District 7

Senator Lynne Walz

District 15

Senator Justin Wayne

District 13

Senator Anna Wishart

District 27

Not Running for Another Term

Senator Fred Meyer was appointed, by Governor Pillen, to serve the remainder of former Senator Tom Briese's term, as he resigned to become the State Treasurer.

Senator Julie Slama was appointed to the Legislature in 2019 by Governor Pete Ricketts, recently graduated from law school, got married, and had a child decided not to seek re-election.

Senator Fred Meyer

District 15

Senator Julie Slama

District 1

All odd-numbered districts are up for election or re-election this cycle, plus senators appointed since the last election.

Appointed senators running for election for the first time are Senators Ballard and Bosn, who were both appointed to the Legislature due to the departure of former Speaker Mike Hilgers, now Attorney General, and former Senator Suzanne Giest who resigned to run for mayor of Lincoln, respectively.

Nebraska's Primary Election is May 14, 2024, and the General Election is November 5, 2024.

Bills Signed Into Law This Session

Unless a bill has a specific effective date or the "emergency clause" making it law upon the Governor's signature, bills become effective 90 days after the end of the session, or July 18, 2024.

LB484 - Provide for continuing education for licensed motor vehicle dealers and authorization to conduct an educational seminar for continuing education credit and eliminate a requirement for the Nebraska Motor Vehicle Industry Licensing Board to maintain an office in the State Capitol

Begining January 1, 2026, an initial dealer applicant must complete 8 hours of continuing education, and renewal of a dealer’s license must complete 4 hours of continuing education prior to the date of applying for license renewal.

Power plant closure requirements, other measures approved

A bill containing measures intended to ensure the reliability of the electric grid received final approval from lawmakers April 11.

The provisions of LB1260, sponsored by North Platte Sen. Mike Jacobson, allow a director of a public power and irrigation district to have an interest in a residential lease or water service agreement with the district and to discuss or vote on those agreements.



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(photo courtesy of Hoefer Welker, Nebraska Crossing)

Revenue package containing good life district changes approved

Lawmakers gave final approval April 18 to a package of tax-related measures, including one under which cities may use local tax revenue to pay for the development of special retail districts.

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Full expensing provisions clear final round

Lawmakers approved a bill April 18 intended to incentivize Nebraska businesses to invest in new equipment and technology.

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LB1218 - Provide for motor vehicle registration of certain electric vehicles, impose an excise tax on electric energy used at commercial electric vehicle charging stations, provide for regulation of certain charging stations, and provide a sales tax exemption for certain electric energy

The amended provisions of LB1218, introduced by Bostar, impose an excise tax of 3 cents per kilowatt hour on the electricity used to charge electric and plug-in hybrid electric vehicles at a commercial electric vehicle charging station, beginning Jan. 1, 2028.

They also increase the additional registration fee for each motor vehicle powered by an alternative fuel from $75 to $150. The additional fee for a plug-in hybrid electric vehicle is $75.

Under LB1317, an electric supplier may own, maintain and operate a direct-current, fast-charging station for retail services only at a location that is at least 15 miles from a privately owned station and at least one mile from a federally designated alternative fuel corridor.

An electric supplier is required to conduct a right of first refusal process before beginning construction of a fast-charging station.



Those requirements for electric suppliers end Dec. 1, 2027. Effective Jan. 1, 2028, an electric supplier cannot operate a fast-charging station within 10 miles of a privately owned station that already is in operation or has a building permit and interconnection request to the electric supplier.

LB867 - Provide for a voluntary hunting and fishing guide and outfitter database, a migratory waterfowl hunting season for veterans, active-duty military state park entry permits, change provisions relating to the Nebraska Power Review Board and the Petroleum Release Remedial Action Cash Fund, and prohibit restrictions on the provision of services related to natural gas and propane.

LB867 contained the provisions of LB868 - Extend the sunset date for reimbursement for remedial action under the Petroleum Release Remedial Action Cash Fund, which Extends the sunset date in which a claim can be made to the Petroleum Release Remedial Action Cash (aka LUST) Fund from June 30, 2024, to June 30, 2028.

LB 1002 amends the Nebraska Biodiesel Tax Credit Act

Amended into LB937 by ComAM3206, the bill increases the yearly tax credits under the Act to five million dollars ($5,000,000.00) per year starting in 2025.

The amendment adjusts the amount increased under the Act to one and a half million dollars ($1,500,000) for FY 24-25, and two million dollars ($2,000,000) for FY 25-26 and beyond.

Foreign land ownership restrictions updated

Lawmakers passed a measure April 11 intended to modernize restrictions on foreign ownership of land in Nebraska.

LB1301, introduced by Niobrara Sen. Barry DeKay on behalf of Gov. Jim Pillen, adds a number of conditions to the right of foreign individuals or foreign-owned companies to own land in the state.



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Homestead exemption changes approved

Lawmakers gave final approval April 18 to a bill modifying Nebraska’s homestead exemption program.

LB126, introduced by Omaha Sen. Jen Day, allows current homestead exemption recipients to remain eligible for an exemption if a valuation increase pushes the value of their homestead above the allowed maximum.

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Additional Bills Passed Into Law this Session

• LB1200e was passed and signed into law by Governor Pillen on April 15, 2024. It contained the provisions of several bills including:
• LB900 - Change provisions of the Nebraska Rules of the Road relating to the length of vehicles. Brings Nebraska up to date with surrounding states by increasing the maximum length for a truck from 40' to 45'.
• LB891 - Redefine manufacturer under the Motor Vehicle Industry Regulation Act. Sections 55 and 56 of AM 2508 Amend the definition of “manufacturer” for purposes of the Motor Vehicle Industry Licensing Act to clarify that a manufacturer is any person who manufactures or assembles motor vehicles, regardless if they have franchised dealers. The act of manufacturing or assembling motor vehicles establishes the obligation to comply with state laws and regulations applicable to manufacturers under the act. Additionally, the amendment clarifies that a manufacturer may not own or operate a service facility to perform warranty or non warranty work on any vehicle they manufacture unless they manufacture and distribute electric vehicles and has not ever been a franchisor in Nebraska. 

• LB1158 - Adopt the Medical Debt Relief Act and provide certain income tax consequences. Amended into LB937 by ComAM3206. LB 1158 creates the Medical Debt Relief Act to have a contracted medical debt relief coordinator negotiate with healthcare providers to purchase debt for low-income taxpayers that are unable to pay such debts, thereby relieving such taxpayers of that debt. The coordinator and program is funded by donations from private donors. This program would be administered through the State Treasurer. 

• LB855 - Prohibit school districts from taking certain actions relating to outstanding debts on a school lunch or breakfast account - was amended into LB1329 by ComAM2831.

Bills That Became Law Without The Governor's Signature

LB20 - Provide for restoration of voting rights upon completion of a felony sentence or probation for a felony

Governor Pillen allowed LB20 to become law without his signature stating, "Although there are potential constitutional issues with LB20 and related provisions of existing law, I will allow LB20 and LB20A to become law with neither my signature nor my endorsement of LB20's constitutional validity. I encourage the Attorney General and the Secretary of State to promptly take such measures as are appropriate in light of the constitutional infirmities referenced above."

Bills Not Signed Into Law This Session

LB388 - Adopt the Property Tax Growth Limitation Act, the Advertising Services Tax Act, and the Property Tax Relief Act and change provisions relating to revenue and taxation.

One of the most talked about bills this session started with a 2-cent increase in the State's sales tax rate and the elimination of sales tax on several items and services previously exempt from taxation.

Governor Pillen, in his State of the State address, reaffirmed his commitment to making the Legislative Session about further property tax reform.

A short excerpt from his address:

"This legislative session, though short, holds great promise and opportunity for our state. There is a tremendous amount of the people’s work we must accomplish to make this a better, safer, and stronger place for every Nebraska kid, family, business, and farm. If we are thoughtful, principled, and keep the interests of all Nebraskans before us, I have no doubt this can be one of the most impactful legislative sessions in our history.

First and foremost, the most important economic issue we face is out of control property taxes. This crisis is not new. It has been hurting Nebraska farmers, ranchers, homeowners, and businesses for most of our lifetimes. High property taxes hurt every Nebraskan in every part of our state and must be fixed NOW. Property taxes are so out of whack, you don’t even need to own property to be impacted. They are the most regressive tax government imposes on its people. Fixed income Nebraskans who have lived, worked, and raised families here now face the prospect of being forced out of their homes due to out-of-control property taxes. That is unacceptable, but you have several proposals before you to fix it."



The full address can be read here.

As quoted in the Nebraska Unicameral Update, "Calling it the most important issue facing Nebraskans, Pillen focused on measures introduced in the Legislature this year to combat rising property taxes. Those proposals include a “hard cap” on local spending, $1 billion in new property tax credits and the removal of “special interest” tax breaks.

When combined with actions taken by the executive branch, Pillen said the goal is to cut Nebraskan’s property tax bills by 40% this year. He said the current property tax system is in “crisis” and has been for many years."

At the start of the session, the Governor's tax plan started off

• Automatic Rate Rollback and Cap - Requires an automatic rate rollback of levies in concert with the increase in valuation. Does allow for a 2% or CPI increase. There are also some exceptions.

• Additional Revenues Generation
• An increase in the State's sales tax rate of 2 cents. The current state sales tax rate is 5.5%, this would increase the State rate to 7.5%. State law allows local sales taxes up to a maximum of an additional 2%. Effective date of December 1, 2024.
• $2 per pack increase in the cigarette tax. Increase the tax from $064 per pack to $2.64.
• Tax all advertising within the State of Nebraska for companies with gross sales over $1 billion. Targeting Google, Facebook, etc. ads.
• Tax games of skill at the casino rate of 20% of gross revenue.
• Remove the tax exemption on data centers.
• Compounded Sales Tax is the amount of additional tax revenue each item will tax in with the 2 cents proposed increase in the state sales rate.

• Tax Reform Delivery - the tax reform will be delivered in two ways:

• Front-loading the LB1107 credits and state aid programs to locate taxing jurisdictions.

• New revenue generated shall be distributed on a percentage basis in accordance with the amount of property taxes collected by the following local entities: Townships, Miscellaneous Districts, Fire Districts, ESUs, NRDsa, Counties, and Cities.

LB388 moved from General File to Select File through negotiations to move the bill as a shell bill, allowing the Revenue Committee and the Governor time to come up with a tax package that could garner enough votes to one, get 33 votes on cloture and then 25 votes to pass the bill onto Final Reading.

During the Select File debate this week, the Governor cut a deal with Senator Micheala Cavanaugh to increase the state's Earned Income Tax Credit by 5%, from 10% to 15% in exchange for her pulling her amendments that were blocking the bill from adopting other meaningful amendments.

As reported in the Unicameral Update, "On select file, Linehan introduced an amendment, adopted 28-6, that replaced the bill with a proposal retaining many of the committee amendment’s provisions but leaving out the proposed rate increase.

The amendment would impose sales tax on candy and soft drinks and end exemptions for the cleaning and repair of clothing, lottery tickets, and certain veterinary services."

The amendment also retained imposing sales tax on companies doing business in the State if their gross advertising revenue exceeds $1 billion.

One new provision would end the LB1107 credit and create the Property Tax Relief Act, which would apply beginning with tax year 2024.

Under the program, the state would disburse funds to counties, which then would credit each parcel based on the school district taxes levied. The credit would appear on the parcel’s property tax statement."

The amendment increased the cigarette tax by $0.36 per pack to an even $1.00 per pack.

In addition, the tax on vape delivery devices counting 3 milliliters or less of consumable material goes from 5 cents to 10 cents per milliliter. The tax on systems that contain greater than 3 milliliters goes from 10% to 20%.

After attempts to amend the bill by Senators Erdman, Day, Conrad, and Salma the bill was advanced to Final Reading, without the need for a cloture vote, by a28-14 vote.

On Final Reading Senators Julie Slama, a Republican from Dunbar, and Daniel Conrad, a Democrat from Lincoln both opposed the bill, filibustering the bill.

Senator Slama stating the only Nebraskans who would pay less in taxes under the measure are the minority of property owners who currently do not claim the LB1107 credit.

Slama and others said the Legislature could create a better proposal to reduce property taxes in a dedicated special session.

Final Reading bills have a two-hour time limit before a cloture vote, to end debate, can be offered. Twenty minutes before the two-hour limit, Senator Linehan, the Revenue Committee Chair and introducer asked the Speaker to skip over the bill. She did this because she knew the 33 votes needed to end the filibuster were not there.

As Governor Pillen has stated early on, he plans to bring lawmakers back in a special session this summer to achieve a 40% property relief. At this point, it is rumored to be sometime in August.

Read More - Tax relief measure passed over, special session suggested

Lawmakers passed over Gov. Jim Pillen’s property tax relief proposal on final reading on April 18 without voting on it, ending consideration of the bill this session.

Read More on the Governor's closing remarks to the Legislature.

Documentary stamp tax increase passed over on final reading

Consideration of a proposal to fund additional programs and services with a tax increase on real estate transactions ended on the final round of debate on April 18 after senators passed over it without taking a vote.

The bill would have increased the documentation stamp fee by $1.00 for each $1,000 in value and directed the proceeds to several additional uses, including military-related programs, federally qualified health centers and the establishment and operation of an office to pursue and coordinate grant funding on behalf of the state.

Amend into the bill was LB1067 - Eliminate the inheritance tax, adopt the State Prisoner Reimbursement Act, and change the authorized uses of certain county funds, which would have reduced the inheritance tax rate that applies to remote relatives from 11% - *% and the rate that applies to other beneficiaries from 15% - 8%.

LB1363 would have allowed counties to retain $1.15 of each $3.25 in documentary stamp tax collected to offset lost inheritance tax revenue.

Read more

Additional Bills Not Passed this Session

• LB1308 - Eliminate certain sales and use tax exemptions and impose sales and use taxes on certain services. In addition to receding the tax exemption on accounting services, the bill would have revoked the sales tax exemption on farm equipment repair and replacement parts

• LB1213 - Require employers to provide twenty hours of paid leave per year for school-related activities. The bill would have required employers to give employees at least 20 hours of paid school activities leave per calendar year. School activities include parent-teacher conferences, disciplinary meetings, extracurricular or athletic competitions or events, volunteer activities, and orientation programs

• LB1139 - Adopt the Paid Family and Medical Leave Insurance Act

• LR7CA - Constitutional amendment to require the state to impose a consumption tax or an excise tax on all new goods and services and to provide a tax exemption for grocery items. Beginning January 1, 2026, the state shall impose a retail consumption or excise tax on all new goods and services. The legislature may authorize political subdivisions to impose the same taxes. Only exemption from such taxes is for grocery items purchased for off-premises consumption

• LR276 - Urge Congress to change the boundary of the Central Time Zone in Nebraska

• LB175 - Adopt the Residential Tenant Clean Slate Act. The bill was debated on March 7th and fell three votes short of obtaining the needed 33 votes to invoke cloture. Thus, killing the bill for the session.

Bills Vetoed This Session

LB25 - Allow claims involving child abuse or sexual assault of a child under the Political Subdivisions Tort Claims Act.

The bill was pocket vetoed, as lawmakers had adjourned Sine Die before the Governor had to decide on LB25. Thus, the Legislature had no opportunity to consider a veto override.

LB307 - Authorize syringe services programs in municipalities and counties and provide exceptions to penalties related to drug paraphernalia under the Uniform Controlled Substances Act.

Senator Hunt, the bill's sponsor, attempted to override the veto but fell three votes short of the 30 votes needed to be successful.

To see the results of a particular bill of interest review the "Bill of Interest 2024..." below.

Click on the image above to read the entire list of

Legislative Bills and Interim Studies as a PDF

Interim Study Resolutions are resolutions authorizing a committee to study an issue following adjournment of a legislative session.

Such studies are usually conducted in the fall and are scheduled at the will of the chair of the committee of jurisdiction.

Interim Studies that are of general nature, like those that are to examine the issues within the jurisdiction of a particular committee, are placeholders in case something that was not considered during the session needs to be studied over the Interim.

A few Interim Studies of interest:



LR314 - Interim study to examine adjustments to county revenue sources and elimination of unnecessary county expenses to compensate for a phaseout of the Nebraska inheritance tax by 2029

LR324 - Interim study to determine whether Nebraska statutes should be modified to provide a tax credit or consideration towards the purchase of a new or replacement vehicle for a private seller who sells a vehicle

LR358 - Interim study to examine the causes of increasing commercial insurance premiums and the impacts on Nebraska businesses

LR361 - Interim study to conduct a review of the fees that fund Nebraska's cash funds

LR367 - Interim study to examine mechanisms to slow the rise of property tax valuations during periods of rapid property value increases

LR370 - Interim study to examine the rise of retailers moving to digital-only transactions

LR384 - Interim study to examine nonprofit organizations, their nonprofit status, the way they use their nontaxable income, and the ways they use their nontaxable income for political purposes

LR417 - Interim study to provide a comprehensive examination of the funding structure of Nebraska's transportation system and to identify strategies to fund highway maintenance and construction

LR418 - Interim study to examine the current property tax valuation process

LR424 - Interim study to examine occupation taxes

LR430 - Interim study to examine the impact of artificial intelligence on Nebraska's private and public sectors, including the technology and insurance sectors

LR432 - Interim study to examine the impact of digital asset data mining on Nebraska public power districts, electric ratepayers, and communities

LR435 - Interim study to assess the loss of funding to Nebraska counties as a result of an elimination of the Nebraska inheritance task and to identify potential state funding sources to replace lost revenue

LR441 - Interim study to examine the impact of local housing regulations on Nebraska's housing supply

Click here to view the Unicam's website with links to all Interim Studies.