Government, Military and Veterans Affairs Committee
January 29, 2025
Committee Chair: Sen. Rita Sanders | Bills Heard: 4 | Full Transcript (PDF)
LB294: County Visitors Improvement Fund grant flexibility
Introduced by: Sen. Tanya Storer | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. Storer seeks to boost grant funding for rural Nebraska tourism projects. LB294 would increase the annual grant cap from the County Visitors Improvement Fund from 1% of lodging tax collections to the greater of 1% or $5,000—a move designed to help small rural counties fund meaningful visitor attraction improvements.
Why it matters: Nearly 60% of Nebraska counties currently have less than $2,300 annually to award for tourism infrastructure. The amendment would allow 9 additional counties to access meaningful funding, particularly benefiting Sandhills communities where ecotourism is booming. Atlas Obscura named the Nebraska Sandhills one of five outstanding U.S. destinations for 2025.
What they're saying: - Proponents: "The bill will help these counties use those funds already collected in a much more impactful manner, and in some cases, truly allow them to spend almost 10 times more than what they can do right now," said Steve Maly, Nebraska Travel Association president. - Richard Brown, representing Loup County, noted the county received an 80% federal grant for a hiking trail but was capped at $1,000 locally despite needing $2,350 for engineering costs.
By the numbers: The amendment benefits 9 additional counties beyond the original 13 that would have qualified at $2,500. Loup County's Visitors Improvement Fund holds approximately $30,000 in cash with expected annual revenue of $15,000-$20,000.
What's next: No vote was taken. The bill awaits committee action.
Committee sentiment: Supportive: Sen. Dave Wordekemper Unclear: Sen. Dunixi Guereca
Sentiment estimated from questions and comments — not stated positions.
LB373: Section line roads clarification and vacation procedures
Introduced by: Sen. Ben Hansen | Testimony: 0 proponents, 1 opponents, 2 neutral | Read bill text (PDF)
Sen. Hansen seeks to clarify ambiguous road statute and streamline county vacation procedures. LB373 addresses a decades-old inconsistency in how Nebraska interprets whether section lines must be maintained as public roads, while allowing counties to abandon unused roads without traffic studies.
Why it matters: Rural counties spend 31-33% of their budgets maintaining roads, many of which see minimal use. The clarification could ease pressure on county finances while the streamlined vacation process eliminates a procedural barrier. The bill passed committee last year as LB1174 with identical language.
What they're saying: - Sen. Hansen: "This bill was passed out of committee last year as LB1174. The language is the same with a few more suggestions from the state surveyors." - Beth Bazyn Ferrell, Nebraska Association of County Officials: County boards weigh current uses, future uses, emergency services access, and whether closure creates isolated parcels before deciding to vacate roads.
By the numbers: The bill maintains the two-thirds county board vote requirement and requires public notice via newspaper (three weeks) and mailed notice to abutting landowners.
What's next: No vote was taken. The bill awaits committee action.
Committee sentiment: Skeptical: Sen. Dave Wordekemper Unclear: Sen. John Cavanaugh, Sen. Megan Hunt, Sen. Dan Lonowski
Sentiment estimated from questions and comments — not stated positions.
LB266: Prohibition on rent control
Introduced by: Sen. Robert Dover | Testimony: 4 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Sen. Dover introduces preemptive ban on rent control despite no current efforts in Nebraska. LB266 would prohibit political subdivisions from enacting rent control on private residential rental property, making Nebraska one of 37 states with such a prohibition.
Why it matters: Proponents argue rent control discourages property maintenance and new construction, citing economist consensus and cautionary tales from St. Paul, New York, and San Francisco. However, no Nebraska city or village is currently pursuing rent control, and very few tenant protection bills introduced at the Legislature become law.
What they're saying: - Proponents: "93% of economists surveyed by the American Economic Association agree that a ceiling on rents reduces the quality and quantity of housing available," said Doug Kagan, Nebraska Taxpayers for Freedom. Lynn Fisher, Statewide Property Owners Association, cited St. Paul's 2023 experience: "Immediately, new development stopped. Rents climbed as property owners raised rents to the maximum amount allowed." - Opponents: "There are currently no political subdivisions in Nebraska seeking to enact rent control policies," testified Erin Feichtinger, Women's Fund of Omaha. She argued the bill is "a solution in search of a problem" and that local government is best positioned to address community-specific housing needs.
By the numbers: Online position comments: 37 proponents, 22 opponents.
What's next: No vote was taken. The bill awaits committee action.
Committee sentiment: Skeptical: Sen. John Cavanaugh, Sen. Dunixi Guereca Unclear: Sen. Dave Wordekemper
Sentiment estimated from questions and comments — not stated positions.
LB123: State aid withholding and redistribution synchronization
Introduced by: Sen. Rita Sanders | Testimony: 2 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
State Treasurer and Auditor seek to streamline withholding procedures for noncompliant municipalities. LB123 synchronizes how state aid is withheld and redistributed when cities or villages fail to file audits timely or violate budget limits, addressing a 27-year-old inconsistency across three statutes.
Why it matters: Current law redistributes forfeited funds differently depending on which statute applies—some go to municipalities in the same county, others statewide, resulting in mere cents per recipient. The bill also prevents endless withhold-and-redistribute cycles for persistently noncompliant municipalities, reducing administrative burden.
What they're saying: - Heidi Wallace, State Treasurer's Office: "In the 27 years I have been in my position and responsible for this process, it is generally the smaller villages that remain noncompliant past the 6-month escrow period." She cited South Bend as an example, noncompliant for roughly 5 years with over $81,000 in withheld highway allocation funds. - Jeff Schreier, Auditor of Public Accounts: The bill "provides good clarification, harmonization, and clear direction" to both the Treasurer and Auditor regarding proper withholding procedures.
By the numbers: Online position comments: 1 proponent, 1 opponent.
What's next: No vote was taken. The bill awaits committee action.
Committee sentiment: Unclear: Sen. Dunixi Guereca, Sen. John Cavanaugh
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair Sen. Rita Sanders noted that several committee members had to leave for other committee assignments: Sen. Cavanaugh (Judiciary), Sen. Andersen (Revenue), Sen. McKeon (Natural Resources), and Sen. Hunt (Judiciary). The committee used a three-minute light system for all testifiers. Written position comments submitted via the legislative website by 8 a.m. on the hearing date were included in the official record. Sen. Cavanaugh temporarily assumed chair duties during the LB123 hearing while Sen. Sanders testified as the bill's introducer.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.