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LB450:

Bill title

Adopt the Nebraska Innovation Hub Act and the Small Business Assistance Act

Program Name

  • Nebraska Innovation Hub Act
  • Small Business Assistance Act

Operative date

3 Months

Appropriation

$5,011,000

Summary

Under the Innovation Hub Act, a private nonprofit corporation can apply to DED to be designated as an iHub. To be considered, a private nonprofit organization must form a collaborative relationship with at least three iHub partners and remit a $1,000 application fee to DED. The application period is November 1, 2022 through June 1, 2023, and DED must determine whether to approve the designation by July 1, 2023. If approved, DED and the iHub will enter into an MOU, wherein DED will set guidelines for the operation and reporting of iHubs. Each iHub will be designated for five years. AM1600 also creates the Innovation Hub Cash Fund and gives DED the ability to adopt and promulgate rules and regulations to carry out the Act. DED believes that administrative responsibilities for the Innovation Hub Act can be carried out within existing resources and staff.
The Small Business Assistance Act would be administered by the Department of Economic Development. DED would create a grant program to provide assistance to small businesses or individuals. These businesses either are new businesses or businesses in existence for five years or less. In addition, DED would contract with a private entity to provide professional counseling services to businesses eligible for a Small Business Assistance grant. DED is also required to submit a detailed report on the impact of grants provided under the act every other year beginning on 10/1/2024. The bill contains intent language to appropriate $5 million each fiscal year to carry out the provisions of the act.
As amended, LB450 would provide for two types of grants, grants to individuals who wish to start a business, and small businesses that have been in existence for five years or less, with five or fewer employees. Grants for individuals may be up to $25,000 and grants to eligible businesses may be up to $12,500. Grant recipients must meet certain qualifications including, a personal net worth of less than $200,000, no ownership interest in other businesses, and individuals must have earned less than $55,000 in the previous calendar year, and businesses must not have grown more than 25% in the previous year.

DED updates:

In progress

LB598:

Bill title: Adopt the Small Business Stabilization Grant Program Act

Program Name 

  • Small Business Stabilization Grant Program
  • Business Innovation Act

Operative date

Emergency Clause (4/19/2022)

Appropriation

Summary

LB598 adopts the Small Business Stabilization Program Act. The purpose of the Small Business Stabilization Grant Program Act is to provide grant funds to eligible businesses that are experiencing loss of revenue because of a qualifying event. Qualifying event means any natural disaster, pandemic, or other event for which a state of emergency proclamation is issued by the governor. An eligible business means a for-profit business located in the state with no more than $1 million in gross revenue. If a qualifying event occurs, the department would establish a grant program to provide financial assistance to eligible businesses that have experienced a significant loss because of such qualifying event. Significant loss is a monthly decline in revenue of 50% as compared to the same period in the prior year. An eligible business may submit an application to DED with supporting documentation. Each grant approved under this section shall be no more than $12,000.

DED updates:

In progress

LB769:

Bill title: Require certain state employees to submit to fingerprinting and criminal history record checks

Operative date

3 Months

Appropriation

Summary

LB769 requires fingerprinting and background checks of any employee who directly accesses and uses state or federal tax data as part of the employee’s authorized duties. The Department of Economic Development has approximately 25 employees affected by the provisions of LB769. In addition, the average turnover rate for the agency is approximately 15%, meaning that approximately 4 employees will need to be fingerprinted annually, beginning FY2023-24. The current cost is $45.25 per employee.

DED updates:

This additional cost can be absorbed within the existing appropriation.

LB800:

Bill title: Change provisions relating to cities of the metropolitan class, sanitary and improvement districts, sanitary drainage districts, the Affordable Housing Tax Credit Act, the Civic and Community Center Financing Act and the Municipal Density and Missing Middle Housing Act. 

Program Name 

  • Affordable Housing Tax Credit Act
  • Civic and Community Center Financing Act
  • Municipal Density and Missing Middle Housing Act

Operative date

Emergency Clause

Appropriation: n/a

Summary

DED updates:

In progress

LB902:

Bill title: Adopt the Nebraska Career Scholarship Act

Program Name 

  • Nebraska Career Scholarship

Operative date

7/1/23

Appropriation

$4,000,000

Summary

LB902 seeks to codify the Nebraska Career Scholarship Act, which would put provisions of the career scholarship program—first established in the mainline budget bill, LB1008 in 2020. The bill would appropriate scholarship dollars to the Board of Trustees of the Nebraska State Colleges, the Board of Regents of the University of Nebraska, and the Nebraska Department of Economic Development (DED). Of the scholarship funds appropriated to DED, half are to be allocated to community colleges, and half are allocated to private postsecondary institutions that elect to participate. The bill has an operative date of 7/1/23. The bill seeks to appropriate $4 million to DED in FY2023-24 and FY2024-25.

DED updates:

In progress

LB927:

Bill title: Change provisions relating to the Civic and Community Center Financing Act, the Convention Center Facility Financing Assistance Act, the Property Tax Request Act, and the Sports Arena Facility Financing Assistance Act

Program Name 

  • Civic and Community Center Financing Act
  • Convention Center Facility Financing Assistance Act
  • Property Tax Request Act
  • Sports Arena Facility Financing Assistance Act

Operative date

4/18/2022

Appropriation: n/a

Summary

DED updates:

In progress

LB977:

Bill title: Appropriate federal funds to the Department of Economic Development for expanding electrical system capabilities

Program Name 

  • Site and Building Development Act

Operative date

Emergency Clause (4/18/2022)

Appropriation

$15,000,000

Summary

LB977 seeks to appropriates $29 million to DED for FY2022-23 to award a grant any city of the second class which partners with public power utilities for the purpose of expanding electrical system capacities and enhancing redundancy and resilience. The allocation is to be from federal funds allocated to the State of Nebraska from the federal Coronavirus State Fiscal Recovery Fund pursuant to the federal American Rescue Plan Act of 2021. As such, DED must coordinate and administer the provisions of LB977 in compliance with the federal American Rescue Plan Act of 2021. DED must disburse the funds appropriated to applicants until the appropriation is exhausted.

LB977 would result in additional responsibilities for DED, including the need to develop, implement, and provide the subrecipient monitoring necessarily required to comply with federal statutes and regulations related to the provision of grants to the indicated subrecipients. This would require adequate staffing and infrastructure to support the program throughout the grant program’s lifecycle. The grant program developed under LB977 would require appropriate staffing and infrastructure to support the grant program through at least 12/31/2027, and potentially record retention support through 12/31/31. The department would need to add the services of an Attorney to determine ARPA qualification issues and manage the grant program, the services of an Economic Development Consultant I, an internal auditor to assist with federal rules for monitoring subrecipients, an IT Systems Business Analyst to assist with grant management and applicants, and finally a Federal Aid Administrator to assist with the distribution of the ARPA funds. The Department will distribute the grants on a reimbursement basis, and it is expected that the funds will be distributed 10%, 15%, 30%, 30%, and 15% in FY2022-23 through FY2026-27, respectively.

DED updates:

In progress

LB998:

Bill title: Change provisions of the Municipal Inland Port Authority Act

Program Name 

  • Municipal Inland Port Authority Act

Operative date

4/18/2022

Appropriation

Summary

LB998 seeks to amend the Municipal Inland Port Authority Act to allow a nonprofit economic development corporation to apply directly to DED for the establishment of a Municipal Inland Port Authority if the respective city and/or county has not applied. If DED determines that the inland port proposed by the nonprofit economic development corporation sufficiently meets criteria, such city and/or county shall create the inland port authority.

DED updates:

In progress

LB1011: Lead Based Paint

Bill title: Lead Based Paint

Program Name 

  • Rural Projects Act
  • Rural Workforce Housing Act
  • Middle Income Workforce Housing Act

Operative date

Emergency Clause

Appropriation

$25,000

Summary

DED updates:

In progress

LB1011: Rural Projects Act

Bill title: Rural Projects Act

Program Name 

  • Rural Projects Act

Operative date

Emergency Clause

Appropriation

$50,000,000

Summary

DED updates:

In progress

LB1011: Rural Workforce Housing

Bill title: Rural Workforce Housing

Program Name 

  • Rural Workforce Housing

Operative date

Emergency Clause

Appropriation

$30,000,000

Summary

DED updates:

In progress

LB1011: Middle Income Workforce Housing

Bill title: Middle Income Workforce Housing

Program Name 

  • Middle Income Workforce Housing

Operative date

Emergency Clause

Appropriation

$20,000,000

Summary

DED updates:

In progress

LB1012:

Bill title: 

Program Name 

Operative date

Appropriation

$

Summary

DED updates:

In progress

LB1014: Rural Workforce Housing

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • Rural Workforce Housing

Operative date

Appropriation

$10,000,000

Summary

DED updates:

In progress

LB1014: Immigrant Housing

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • Immigrant Housing

Operative date

Appropriation

$8,000,000

Summary

DED updates:

In progress

LB1014: NIFA Contract

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • NIFA Contract

Operative date

Appropriation

$20,500,000

Summary

DED updates:

In progress

LB1014: Job Training & Placement

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • Job Training & Placement-Immigrants/Refugees

Operative date

Emergency Clause

Appropriation

$1,000,000

Summary

DED updates:

In progress

LB1014: Mental Health Capital Construction

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • Mental Health Capital Construction

Operative date

Emergency Clause

Appropriation

$40,000,000

Summary

DED updates:

In progress

LB1014: Feasibility study to nuclear reactors

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • Feasibility study to nuclear reactors

Operative date

Emergency Clause

Appropriation

$1,000,000

Summary

DED updates:

In progress

LB1014: Shovel-Ready Projects

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • Shovel-Ready Projects

Operative date

Emergency Clause

Appropriation

$100,000,000

Summary

DED updates:

In progress

LB1014: Meat Processing Center and Water Treatment

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • Meat Processing Center and Water Treatment

Operative date

Emergency Clause

Appropriation

$20,000,000

Summary

DED updates:

In progress

LB1014: International Competitions

Bill title: Appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

Program Name 

  • International Competitions

Operative date

Emergency Clause

Appropriation

$500,000

Summary

DED updates:

In progress

LB1024:

Bill title: Adopt the Economic Recovery Act, create the Economic Recovery & Incentives and Housing Divisions of the Department of Economic Development, change provisions of the Middle Income Workforce Housing Investment Act, provide for grants

Program Name 

  • Economic Recovery Act
  • QTC Recovery Act
  • CoronaVirus Capital Projects
  • EDA Tourism Grant
  • Middle Income Workforce Housing Investment Act

Operative date

Emergency Clause

Appropriation

$381,814,128

Summary

LB1024, as amended by AM2687 would create the Economic Recovery Act—which would include several new grant programs—, and the Economic Recovery Special Committee of the Legislature. The bill names two new divisions in DED, an “Economic Development and Incentives” division (DED-ER&I), and a “Housing” division. The bill would also create the Economic Recovery Contingency Fund cash fund in DED. The bill would also make changes to Sections 81-1238 and 81-1239, which deal with housing programs.

The Economic Recovery Act created by LB 1024, as amended, would require the special Legislative committee to issue an RFP to commission a study of potential eligible uses of federal ARPA funds or state funds within, or adjacent to, qualified census tracts located within the boundaries of a city of the metropolitan class. The study would include potential eligible uses of ARPA funds in the areas of entrepreneurship, housing, employment, job creation, and small business assistance. Copies of these studies will be made available to DED-ER&I. The bill, as amended, contains intent language to appropriate $2 million for FY2022-23 to cover the costs of the study. DED-ER&I would then develop a coordinated plan to direct and prioritize the use of grants toward the economic recovery of those communities and neighborhoods. The plan would emphasize housing needs, job training, assistance for small businesses, and business development. By 8/1/2022, DED-ER&I would submit an initial copy of the coordinated plan to the Legislative committee for review, and submit a final copy, no later than 12/1/2022. The coordinated plan may rely on the results of the studies commissioned by the Legislative committee. All grants made by DED-ER&I using ARPA funds shall be eligible uses for these funds.

LB1024 as amended by AM2687, creates the Qualified Census Tract Recovery Grant Program to provide funding to public and private entities located within any qualified census tracts (QCTs) in Nebraska. These grants would be prioritized according to the coordinated plan developed by DED with the assistance of the special Legislative committee, and funded through ARPA funds

DED updates:

In progress

LB1069:

Bill title: Amends Neb. Rev. Stat. §§ 81-1228, 81-1229, 81-1230, and 81-1231 of the Rural Workforce Housing Investment Act

Program Name 

  • Rural Workforce Housing Investment Act

Operative date

Appropriation

$

Summary

LB1069 amends Neb. Rev. Stat. §§ 81-1228, 81-1229, 81-1230, and 81-1231 of the Rural Workforce Housing Investment Act (“Act”). The bill makes minor changes to defined terms and program provisions. These include: increasing the maximum costs from $275,000 to $325,000, for owner-occupied housing units, and from $200,000 to $250,000 for rental housing units; adding the National Housing Trust Fund to the list of prohibited funding sources; eliminates a hard cap on the grant maximums and replaces it with discretion of the DED director; and reduces the minimum match requirement from a one-to-one match to a 50% match. The bill also extends the life of the Act through 6/30/27 to allow projects funded with the $10 million appropriated in LB1008 (2020) to be completed. Finally, LB1069 changes the requirement for an annual audit of nonprofit organizations receiving grants through the Act to an annual review of all financial record.

DED updates:

In progress

LB1099:

Bill title: Create the Nebraska Hydrogen Hub Industry Work Group

Program Name 

  • Nebraska Hydrogen Hub Industry Work Group

Operative date

Emergency Clause

Appropriation

LB1099 contains intent language to make an appropriation but does not specify the amount. DED estimates that the cost of hiring a consultant to assist with the grant preparation and coordinate the efforts of the work group will be $250,000.

Summary

LB1099 requires the Department of Economic Development to create the Nebraska Hydrogen Hub Industry Work Group on or before 5/1/2022. The Director of DED is required to appoint members to the work group to include representatives from the manufacturing or industry, the agriculture, transportation, and energy sectors. The work group must also include a representative of a clean hydrogen manufacturer. LB1099 contains the emergency clause.

The purpose of the work group is to develop and submit a proposal to the United States Department of Energy to be selected as one of the four regional clean hydrogen hubs authorized under the federal Infrastructure Investment and Jobs Act, Public Law 117-58. DED is authorized to contract with private consultants to create the proposal. According the federal act, the grant notice should be posted within 180 days of the passage of the act, (11/15/2021) so the grant announcement would be due on 5/14/2022. Then, the Secretary has one year to choose the regional hub sites.

DED updates:

In progress

LB1150:

Bill title: Change provisions relating to the contents of applications and agreements under the ImagiNE Nebraska Act

Program Name 

  • ImagiNE

Operative date

Emergency Clause

Appropriation

Summary

DED updates:

In progress

LB1261:

Bill title: Adopt the Nebraska Higher Blend Tax Credit Act and change provisions of the ImagiNE Nebraska Act, the Nebraska Advantage Rural Development Act, and the Urban Redevelopment Act. 

Program Name 

  • Nebraska Higher Blend Tax Credit Act
  • ImagiNE
  • Nebraska Advantage Rural Development Act
  • Urban Redevelopment Act

Operative date

Emergency Clause

Appropriation

None

Summary

DED updates:

In progress