Business and Labor Committee
January 27, 2025
Committee Chair: Sen. Kathleen Kauth | Bills Heard: 5 | Full Transcript (PDF)
LB308: Health Care Staffing Agency Registration Act
Introduced by: Sen. Teresa Ibach | Testimony: 5 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Nebraska advances health care staffing oversight as agencies place unqualified workers. The Business and Labor Committee heard testimony on LB308, which would require health care staffing agencies to register with the Department of Labor, verify worker credentials, and eliminate non-compete clauses.
Why it matters: Nursing homes and assisted living facilities report placing workers lacking required background checks and certifications, exposing residents to safety risks while facilities bear regulatory liability. Conversion fees ($5,000-$10,000) prevent workers from accepting permanent positions. The bill mirrors registration systems already operating in 16 states including neighboring Iowa.
What they're saying: - Proponents: "We had two people working as nursing assistants without background checks," testified Dr. Anthony Hatcher of Hillcrest Health. "We could have had someone with a felony conviction or history of elder abuse directly contacting our elders." Facilities argue they cannot adequately vet agency staff despite contractual obligations. - Opponents: Non-compete clauses are already unenforceable under Nebraska law, argued Josh Norton of the American Staffing Association. "We don't need a new law when private enterprise can take care of this issue," he said, noting bill rates have declined 40% since 2022 as the market corrected.
By the numbers: 16 states have similar legislation. Nebraska-based agencies are 100% registered in Iowa and nearly all in Missouri, showing compliance is feasible. Conversion fees range from 15-25% of first-year salary.
What's next: No vote was taken. Sen. Ibach indicated willingness to strike language requiring disclosure of average rates charged to different facilities, addressing concerns from opponents about competitive sensitivity.
Committee sentiment: Supportive: Sen. Jane Raybould, Sen. Tony Sorrentino Skeptical: Sen. Terrell McKinney Unclear: Sen. Mike Hansen
Sentiment estimated from questions and comments — not stated positions.
LB144: Military Hiring Preference Expansion
Introduced by: Sen. Victor Rountree | Testimony: 4 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska moves to support military families with expanded hiring preference. The Business and Labor Committee heard testimony on LB144, which would extend the state's military hiring preference to spouses of active duty and reserve service members, and expand preference to cover promotions and transfers.
Why it matters: Military spouses face a 21% unemployment rate due to frequent relocations, with 48% citing employment as a critical challenge during moves. The preference currently applies only to initial hiring, leaving veterans already employed by the state unable to use preference when competing for promotions against outside applicants. The bill aligns Nebraska with federal practice and supports military readiness by reducing family financial stress.
What they're saying: - Proponents: "When you anchor the spouse, you anchor the family," testified Aimee Salter of Offutt Air Force Base, describing how her spouse declined two career-advancing opportunities to prioritize her employment stability. Military spouses are highly educated—49% of active duty spouses hold bachelor's degrees—but face barriers to meaningful employment in their fields. - No opposition testified.
By the numbers: Military spouse unemployment: 21%. Active duty spouses with bachelor's degrees or higher: 49%. Reserve/guard spouses with bachelor's degrees or higher: 57%. Percentage of military spouses citing employment as critical problem during moves: 48%.
What's next: No vote was taken. The bill received four proponent letters and no opposition. Sen. Rountree indicated willingness to answer further questions.
Committee sentiment: Unclear: Sen. Mike Hansen, Sen. Terrell McKinney
Sentiment estimated from questions and comments — not stated positions.
LB100: Business Innovation and Startup Act
Introduced by: Sen. Ashlei Spivey | Testimony: 3 proponents, 1 opponents, 1 neutral | Read bill text (PDF)
Nebraska considers bold venture capital push to jumpstart startup economy. The Business and Labor Committee heard testimony on LB100, which would create an Office of Business, Entrepreneurship and Innovation and require the Nebraska Investment Council to invest 1% of state assets in Nebraska-based venture capital funds.
Why it matters: Nearly all net new jobs come from companies five years old or younger, yet Nebraska's startup formation rate has stagnated at 2.8 per 1,000 people for 25 years while other states increased. The bill aims to reverse this trend and retain talent that currently leaves for coastal innovation hubs. Four states adopted similar policy in 2024.
What they're saying: - Proponents: "We are not growing," testified Sen. Spivey. "There are lots of folks that do not start, grow businesses, because the money and investment are not there. But they have amazing ideas, and then they move." Tom Chapman, a serial entrepreneur, noted the state already invests $106 million in venture capital globally; redirecting 1% to Nebraska startups is reasonable. - Opponents: Ellen Hung, State Investment Officer, testified Section 7 violates the Nebraska State Funds Investment Act and her fiduciary duty. "Mandating us to invest 1% in a specific asset class is not fiduciary duty, because it's narrowing what we can invest in," she said. She noted 75% of venture-backed startups fail and the 1% requirement ($246 million) exceeds Nebraska's annual VC deployment ($299 million).
By the numbers: Nebraska's new business formation rate: 2.8 per 1,000 people (flat for 25 years). State VC assets currently invested: $106 million. Proposed investment: 1% of $43.5 billion in assets = $246 million. Average annual VC deployed in Nebraska: $299 million. Venture failure rate: 75%.
What's next: No vote was taken. Sen. Spivey indicated openness to working with the Investment Council and Department of Economic Development on amendments addressing fiscal note concerns and business definitions. One proponent letter and two neutral letters were submitted.
Committee sentiment: Skeptical: Sen. Tony Sorrentino, Sen. Teresa Ibach Unclear: Sen. Jane Raybould, Sen. Terrell McKinney
Sentiment estimated from questions and comments — not stated positions.
LB229: Transportation Network Company Independent Contractor Status
Introduced by: Sen. Bob Hallstrom | Testimony: 1 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Nebraska considers codifying rideshare drivers as independent contractors. The Business and Labor Committee heard testimony on LB229, which would clarify that Uber and Lyft drivers are independent contractors, not employees, and protect their ability to work flexibly.
Why it matters: Federal Department of Labor has proposed rules treating rideshare drivers as employees. California initially passed similar legislation but voters rejected it via Proposition 22. The bill aims to prevent similar reclassification in Nebraska and protect the flexible work model that allows drivers to maintain other jobs. Ridesharing also reduces drunk driving deaths by 6% nationally.
What they're saying: - Proponents: "80% of drivers on the Uber app work fewer than 20 hours a week," testified Sen. Hallstrom. Drivers choose when, where, and for how long they work with no exclusivity requirement. Kristen Hassebrook of Uber noted flexibility is critical for caregivers, retirees, and students seeking supplemental income. - Opponents: "Misclassification deprives drivers of crucial workplace protections such as unemployment insurance and worker's compensation," testified Susan Martin of the Nebraska State AFL-CIO. She argued companies exercise significant control through fare-setting, deactivation, and route control, and that flexibility can exist under employee status.
By the numbers: 21 states have passed similar legislation. 80% of Uber drivers work fewer than 20 hours weekly. Ridesharing reduces drunk driving deaths by 6% nationally and vehicle collisions by 67% in Houston. 62% of Americans across all political parties say drivers are independent contractors.
What's next: No vote was taken. No letters were submitted. Sen. Hallstrom indicated willingness to provide data on driver preferences and economic impact if Uber and Lyft exit Nebraska.
Committee sentiment: Supportive: Sen. Tony Sorrentino Skeptical: Sen. Terrell McKinney Unclear: Sen. Mike Hansen
Sentiment estimated from questions and comments — not stated positions.
LB197: Unemployment Insurance Claims Adjudication Modernization
Introduced by: Sen. Jared Storm | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska modernizes unemployment claims processing with automation and error correction. The Business and Labor Committee heard testimony on LB197, which would allow the Department of Labor to automate straightforward unemployment claims determinations and redetermine claims when the Benefit Accuracy Measurement Division identifies errors.
Why it matters: Current law requires adjudicators to manually review every claim, even identical cases like mass layoffs. Automation would reduce delays for eligible claimants and free staff for complex cases. The bill also closes a gap where BAM reviews identify errors in finalized claims but current law prevents correction. Multiple states have implemented similar systems with federal support.
What they're saying: - Proponents: "If an employer shuts down and lays off 100 employees, that is a qualifying separation reason for all 100," testified Katie Thurber, Interim Commissioner of Labor. "Currently, NDOL must manually review all 100 claims. Existing technology lets the employer tell NDOL the 100 employees impacted. We can then allow payment without staff intervention." - No opposition testified.
By the numbers: BAM conducts quarterly reviews of unemployment claims. Adjudicators remain required for fraud determinations and disputed separation reasons. Michigan was first state to pilot automation; experienced some overpayment errors but controls now prevent recurrence.
What's next: No vote was taken. Sen. Storm waived closing. No letters were submitted. The bill received support from business groups and the Department of Labor.
Committee sentiment: Supportive: Sen. Jane Raybould, Sen. Terrell McKinney
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair Kauth announced at the beginning that testimony would be limited to five minutes per testifier with a light system (green, yellow at one minute remaining, red at time expired). She later reduced the time limit to three minutes for subsequent bills. Committee members were reminded that they may come and go during hearings due to other legislative obligations. Written position comments must be submitted by 8 a.m. the day of hearing via nebraskalegislature.gov. The committee took a brief three-minute break before hearing LB100 to allow Sen. Spivey to arrive. No votes were taken on any bills during this hearing.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.