Banking, Commerce and Insurance Committee
January 27, 2025
Committee Chair: Sen. Mike Jacobson | Bills Heard: 3 | Full Transcript (PDF)
LB21: Uniform Law Unlawful Restrictions in Land Records Act
Introduced by: Sen. John Cavanaugh | Testimony: 3 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska moves to streamline removal of racially restrictive covenants from property records. LB21 adopts the Uniform Law Commission's model allowing homeowners to file a simple form amendment to functionally remove discriminatory deed restrictions that remain despite being unenforceable since 1948.
Why it matters: An estimated 50,000+ Nebraska properties—concentrated in Douglas County—still carry racially restrictive covenants that, while legally void, create confusion for buyers and sellers and require expensive legal intervention to remove. The bill preserves historical records for research while giving homeowners an affordable path to clean up titles.
What they're saying: - Proponents: The Omaha Spatial Justice Project has identified 2,888 racially restrictive covenant documents affecting 20,000-30,000 Douglas County properties alone. Current removal requires hiring lawyers with variable fees; LB21 lets homeowners use a form and pay a flat fee. The bill does not create new protected classes—it relies only on existing Nebraska Fair Housing Act protections. Five states and Washington D.C. have already enacted similar legislation. - Opponents: None testified.
By the numbers: 2,888 racially restrictive covenant documents identified in Douglas County; 20,000-30,000 properties affected in Douglas County; 50,000+ estimated statewide once remaining records are processed. Covenants date from 1909-1953, with some purporting to apply through 1999.
What's next: No vote was taken during the hearing. The committee received five proponent letters, zero opponent letters, and zero neutral letters.
Committee sentiment: Supportive: Sen. Riepe, Sen. Hallstrom, Sen. Bostar
Sentiment estimated from questions and comments — not stated positions.
LB187: Real Estate Licensing and Regulation Amendments
Introduced by: Sen. Robert Dover | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska Real Estate Commission seeks uniform licensing standards and increased education amid complaint surge. LB187 requires all residential real estate licensees to use written buyer agency agreements, increases pre-license education by one-third, and clarifies rules on wholesalers and out-of-state referrals.
Why it matters: The commission received 70 complaints in January 2025—nearly double the typical 35-40 annual average—driven by an influx of inexperienced agents and post-COVID market stress. Currently, 80% of Nebraska licensees (NAR members) must comply with antitrust settlement requirements for written buyer agreements, while 20% (non-NAR agents) do not, creating confusion for consumers. Uniform standards and better training could reduce complaints and protect homebuyers and sellers.
What they're saying: - Proponents: The commission attributes the complaint spike to post-2008 influx of inexperienced agents and post-COVID market volatility. Complaints center on non-disclosure of agency relationships and property defects. Increased education in law, principles and practices, and finance—not just more hours—will improve professionalism. The Realtors Association supports uniform standards so consumers don't worry about differences between Realtors and other licensed agents. One senator noted stricter requirements may deter 'fly-by-nighters' from entering the profession. - Opponents: None testified.
By the numbers: 70 complaints in January 2025 versus typical 35-40 annually. NAR members represent 80% of Nebraska licensees; non-NAR agents represent 20%. Pre-license education increases by one-third. Appropriations Committee funded an additional investigator for the commission, bringing total from one to two.
What's next: No vote was taken during the hearing. The committee received zero proponent letters, zero opponent letters, and zero neutral letters.
Committee sentiment: Supportive: Sen. Hardin, Sen. von Gillern, Sen. Hallstrom, Sen. Jacobson
Sentiment estimated from questions and comments — not stated positions.
LB139: Real Property Appraiser Act—Contingent Dismissal Agreements
Introduced by: Sen. George Dungan | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska appraiser board seeks middle ground between advisory letters and formal discipline. LB139 allows the Real Property Appraiser Board to enter contingent dismissal agreements with appraisers and appraisal management companies, providing education and remediation as an alternative to suspension or revocation for minor violations.
Why it matters: Nebraska and nationwide face significant appraiser shortages. Current law offers only advisory letters (often ineffective for minor violations) or formal discipline (which removes qualified professionals from the market). Contingent dismissal allows the board to retain trained appraisers through targeted education while maintaining quality standards and protecting consumers.
What they're saying: - Proponents: The board's regulatory intent is educational when possible. Contingent dismissal provides a necessary tool for violations that don't warrant formal discipline but exceed what an advisory letter can accomplish. Completed agreements do not appear as disciplinary actions on appraiser records, avoiding reporting to the appraisal subcommittee registry. Real-world example: A feedlot appraisal case where the appraiser met most USPAP standards but failed to adequately reconcile the income approach. Under current law, the board chose formal charges; the appraiser chose not to renew rather than face discipline. Contingent dismissal would have allowed education and retention. The board is fully funded through registration and credentialing fees with no taxpayer money. - Opponents: None testified.
By the numbers: USPAP consists of up to 73 standards. Board established in 1991 to implement federal Title XI requirements.
What's next: No vote was taken during the hearing. The committee received two proponent letters, zero opponent letters, and zero neutral letters.
Committee sentiment: Supportive: Sen. Jacobson
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair Sen. Mike Jacobson opened the hearing with procedural instructions regarding testifier sheets, the three-minute light system, and written position comment deadlines (8:00 a.m. day of hearing via nebraskalegislature.gov). Committee members present: Sen. Merv Riepe (LD12), Sen. Brad von Gillern (LD4), Sen. Eliot Bostar (LD29), Sen. Bob Hallstrom (LD1, Vice Chair), Sen. Brian Hardin (LD48), Sen. Dave Wordekemper (LD15), and Sen. George Dungan (LD26). Legal counsel: Joshua Christolear. Committee clerk: Natalie Schunk. Pages: Ayden and Kathryn (UNL students). The hearing concluded with an announcement that the committee would move into executive session. Sen. Dover noted that the Appropriations Committee funded an additional investigator for the Real Estate Commission, bringing the total from one to two.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.