The official site of the Nebraska Unicameral Legislature

LEGISLATIVE BILL 847
Approved by the Governor April 7, 2026

Introduced by Kauth, 31.

A BILL FOR AN ACT relating to labor; to amend sections 48-309, 48-1231,
48-1233, 48-1234, 48-1706, 48-2710, 48-2905, 81-406, 81-1210.01,
81-1210.02, 81-1210.03, 81-12,152, 81-12,154, 81-12,155, 81-12,158,
81-12,160, and 81-12,163, Reissue Revised Statutes of Nebraska, sections
29-431, 48-302, 48-303, and 48-2107, Revised Statutes Cumulative
Supplement, 2024, and sections 48-602, 48-622.01, 48-648, 48-649.01,
48-657, 81-1201.21, and 81-1210.04, Revised Statutes Supplement, 2025; to
adopt the Nebraska Registered Apprenticeship Act; to change and eliminate
provisions relating to child labor; to redefine a term; to change
provisions relating to the combined tax and the state unemployment
insurance tax rate under the Employment Security Law; to provide for an
annual administrative and operational support fee for certain employers
under the Employment Security Law; to change penalty provisions and
provide powers to the Commissioner of Labor under the Nebraska Wage
Payment and Collection Act; to change provisions relating to fees under
the Contractor Registration Act; to provide and eliminate powers of the
Commissioner of Labor and eliminate reporting requirements and the hotline
and website for reporting suspected violations under the Employee
Classification Act; to rename the Contractor and Professional Employer
Organization Registration Cash Fund and change permitted uses of the fund;
to transfer administration of student internships from the Department of
Economic Development to the Department of Labor; to change provisions
relating to legislative findings, qualified action plans, and financial
assistance programs and create a fund under the Business Innovation Act;
to state legislative intent regarding appropriations; to provide a duty
for the Revisor of Statutes; to harmonize provisions; to repeal the
original sections; and to outright repeal sections 48-307, 48-2906, and
48-2909, Reissue Revised Statutes of Nebraska.
Be it enacted by the people of the State of Nebraska,
Section 1. Sections 1 to 6 of this act shall be known and may be cited as
the Nebraska Registered Apprenticeship Act.
Sec. 2. For purposes of the Nebraska Registered Apprenticeship Act,
unless the context otherwise requires:
(1) Apprentice means a worker who is at least sixteen years of age and who
is employed to learn an apprenticeable occupation under standards of
apprenticeship fulfilling the requirements of 29 C.F.R. 29.5, as such
regulation existed on January 1, 2026;
(2) Apprenticeable occupation means an occupation that is specified by
industry and to which all of the following apply:
(a) The occupation involves skills that are customarily learned in a
practical way through a structured, systematic program of on-the-job supervised
learning;
(b) The occupation is clearly identified and commonly recognized
throughout an industry;
(c) The occupation involves the progressive attainment of manual,
mechanical, or technical skills and knowledge which, in accordance with the
industry standard for the occupation, would require the completion of at least
two thousand hours of on-the-job learning to attain; and
(d) The occupation requires related instruction to supplement the on-the-
job learning;
(3) Apprenticeship agreement means a written agreement, accepted and
recorded by the Nebraska Office of Registered Apprenticeship, between an
apprentice and an apprenticeship sponsor that contains the terms and conditions
of the apprentice's employment and training consistent with 29 C.F.R. part 29,
as such regulations existed on January 1, 2026, and the Nebraska Registered
Apprenticeship Act;
(4) Apprenticeship program means a program registered with the United
States Department of Labor, Office of Apprenticeship, or the Nebraska Office of
Registered Apprenticeship that includes terms and conditions for the
qualification, recruitment, selection, employment, and training of apprentices,
including the requirement for a written apprenticeship agreement;
(5) Apprenticeship sponsor means an entity operating an apprenticeship
program or an entity in whose name an apprenticeship program is being operated,
which entity is registered with or approved by the United States Department of
Labor, Office of Apprenticeship, or the Nebraska Office of Registered
Apprenticeship;
(6) Cancellation means the termination of the registration of a quality
pre-apprenticeship program or apprenticeship program at the request of the
apprenticeship sponsor, or the termination of an apprenticeship agreement at
the request of the apprentice;
(7) Commissioner means the Commissioner of Labor;
(8) Department means the Nebraska Department of Labor;
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(9) Employee organization means (a) any labor union, (b) any organization
of any kind, or any agency or employee representation committee, association,
group, or plan, in which employees participate and which exists for the
purpose, in whole or in part, of dealing with employers concerning an employee
benefit plan or other matters incidental to employment relationships, and (c)
any employees' beneficiary association organized for the purpose, in whole or
in part, of establishing an employee benefit plan;
(10) Employer means a person or organization employing an apprentice,
whether or not such person or organization is a party to an apprenticeship
agreement with the apprentice;
(11) Employer organization means a collective organization of
manufacturers, retailers, or other employers of wage labor which seeks to
coordinate the behavior of its member companies in matters of mutual interest;
(12) Expansion of an existing apprenticeship program means adding a new
occupation or a new employer to an existing apprenticeship program;
(13) Large apprenticeship program means an apprenticeship program with
more than three hundred fifty active apprentices;
(14) On-the-job training means training provided by an employer to which
all of the following apply:
(a) The training is provided to a paid apprentice who is engaged in
productive work in an occupation, and the work provides knowledge or skills
essential to the full and adequate performance of the occupation; and
(b) The training is limited in duration as appropriate to the occupation
for which the apprentice is being trained, based on the content of the
training, the apprentice's prior work experience, and the apprentice's service
strategy, as appropriate;
(15) Public member means a member of the Nebraska Apprenticeship Council
who is not representing an employer organization or employee organization and
who is familiar with apprenticeable occupations;
(16) Quality pre-apprenticeship program means a program or set of
strategies, registered by the Nebraska Office of Registered Apprenticeship,
including basic skills training, academic skills remediation, or introduction
to the industry, that is designed to prepare individuals for entry into an
apprenticeship program;
(17) Registered apprenticeship program means a program to which all of the
following apply:
(a) The program has been accepted and recorded by the Nebraska Office of
Registered Apprenticeship or registered with the United States Department of
Labor, Office of Apprenticeship;
(b) The program includes all of the following:
(i) Employer participation in accordance with 29 C.F.R. 29.5, as such
regulation existed on January 1, 2026;
(ii) On-the-job training;
(iii) Related training instruction;
(iv) Paid work experience; and
(v) Receipt of a portable state or nationally recognized credential; and
(c) The program is for the recruitment, selection, employment, and
training of apprentices and is developed pursuant to 29 C.F.R part 29, as such
regulations existed on January 1, 2026, and any rules and regulations adopted
and promulgated pursuant to the Nebraska Registered Apprenticeship Act;
(18) Registration agency means the state agency that is responsible for
registering apprenticeship programs and apprentices, providing technical
assistance, and conducting reviews for compliance with federal law;
(19) Related training instruction means an organized and systematic form
of instruction, other than on-the-job training, to which all of the following
apply:
(a) The instruction is designed to provide an apprentice with knowledge of
the subjects related to the apprentice's occupation; and
(b) The instruction is given in a classroom, through occupational or
industrial courses, through correspondence or online courses, or through other
forms of self-study; and
(20) Small apprenticeship program means an apprenticeship program with
three hundred fifty or fewer active apprentices.
Sec. 3. (1) The Nebraska Office of Registered Apprenticeship is
established within the department in accordance with 29 U.S.C. 50 and 29 C.F.R.
part 29, as such section and regulations existed on January 1, 2026. The office
shall be operated and managed by the commissioner or the commissioner's
designee.
(2) The office is established for all of the following purposes:
(a) To serve as the state apprenticeship agency as defined in 29 C.F.R.
29.2, as such regulation existed on January 1, 2026;
(b) To serve as the registration agency for this state;
(c) To establish standards of apprenticeship for quality pre-
apprenticeships, registered apprenticeships, and other apprenticeships;
(d) To establish requirements regarding the registration of quality pre-
apprenticeship programs, registered apprenticeship programs, and other
apprenticeship programs in the state when the sponsor of such programs chooses
to certify or register the programs with the office; and
(e) To resolve disputes between parties to an apprenticeship agreement.
Sec. 4. (1) The Nebraska Office of Registered Apprenticeship shall
develop standards to create a nationally recognized state apprenticeship
completion credential in compliance with standards established in 29 C.F.R.
29.5, as such regulation existed on January 1, 2026, for completing a
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registered apprenticeship program.
(2) The office shall approve or deny the registration of a registered
apprenticeship program, whether for a new program or expansion of an existing
apprenticeship program. The office shall provide an entity whose registration
is not approved with specific reasons for the disapproval and an option for
modifying the application for registration.
(3) The office shall establish competency-based, time-based, and hybrid
apprenticeship frameworks based on the regional and statewide collection of
valuable credentials and consistent with 29 C.F.R. 29.5(b)(2), as such
regulation existed on January 1, 2026.
(4) The office shall establish a plan to provide reciprocal approval, for
federal purposes, to apprentices, apprenticeship programs, and standards that
are registered in other states by the United States Department of Labor, Office
of Apprenticeship, or a registration agency, if such reciprocity is requested
by the apprenticeship sponsor. Apprenticeship sponsors seeking reciprocal
approval shall meet wage and hour provisions and apprentice ratio standards of
this state.
(5) The office may consider advice provided by the Nebraska Apprenticeship
Council when completing the office's duties as set forth in this section.
(6) The office shall serve as the registration agency for quality pre-
apprenticeships, registered apprenticeships, and other apprenticeships.
(7) The office shall develop a plan providing a procedure for the
cancellation or deregistration of programs and for temporary suspension,
cancellation, or deregistration of apprenticeship agreements.
(8) The office shall not require affiliation with a labor organization,
employer organization, or other limited-membership organization as a criterion
of an apprenticeship program. This subsection does not prohibit labor
organizations, employer organizations, and limited-membership organizations
from requiring membership to participate in the apprenticeship training
provided by the organization.
Sec. 5. (1) The Nebraska Apprenticeship Council is established as an
advisory council within the department pursuant to 29 C.F.R. 29.13(a)(2), as
such regulation existed on January 1, 2026.
(2) Members of the council shall be appointed by the Governor for terms of
three years.
(3)(a) The council shall include at least five voting members appointed by
the Governor. The members must be primarily based in Nebraska and familiar with
apprenticeable occupations. Familiarity with apprenticeable occupations shall
be determined by actual experience with a Nebraska apprenticeship program.
(b) The council shall have an equal number of representatives of employer
organizations and employee organizations and include public members who shall
not number in excess of the number named to represent either employer
organizations or employee organizations. The council shall be comprised of
representatives with experience in both large apprenticeship programs and small
apprenticeship programs in Nebraska.
(c) The Governor shall appoint a chairperson of the council from among the
voting members.
(d) The commissioner, or the commissioner's designee, shall serve as an ex
officio, nonvoting member.
(4) The council shall do all of the following:
(a) Advise the Nebraska Office of Registered Apprenticeship regarding the
duties set forth in the Nebraska Registered Apprenticeship Act; and
(b) Provide community outreach and education regarding the benefits of
apprenticeship.
Sec. 6. The department shall be responsible for implementation and
enforcement of the Nebraska Registered Apprenticeship Act. The department may
adopt and promulgate rules and regulations as necessary to carry out the act.
Sec. 7. Section 29-431, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
29-431 As used in sections 28-416, 29-422, 29-424, 29-425, 29-431 to
29-434, 48-1231, and 53-173, unless the context otherwise requires, infraction
means the violation of any law, ordinance, order, rule, or regulation, not
including those related to traffic, which is not otherwise declared to be a
misdemeanor or a felony. Infraction includes violations of section 60-6,267 and
beginning January 1, 2024, section 60-6,279.
Sec. 8. Section 48-302, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
48-302 (1) No child under sixteen years of age shall be employed or
permitted or suffered to work in any employment as defined in section 48-301
within this state unless the person or corporation employing the child procures
and keeps on file, accessible to the attendance officers and to the Department
of Labor and its assistants and employees, an employment certificate as
prescribed in section 48-304 and keeps one complete list of all such children
employed in the building on file in the building in which such children are
employed.
(2) Upon the termination of the employment of a child or when a child
reaches the age of sixteen so registered whose certificate is so filed , such
certificate shall be retained by the employer for at least twelve months
transmitted by the employer to the person authorizing the certificate pursuant
to section 48-303 and shall be accessible to the attendance officers and to the
Department of Labor and its assistants and employees upon request turned over
to such child upon demand.
(3) Any attendance officer or the Department of Labor or its assistants
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and employees may demand that any employer in whose place of business a child
apparently under the age of sixteen years is employed or permitted or suffered
to work, and whose employment certificate is not then filed as required by this
section, either furnish within ten days satisfactory evidence that such child
is in fact over sixteen years of age or cease to employ or permit or suffer
such child to work in such place of business. The same evidence of the age of
such child may be required from such employer as is required on the issuance of
an employment certificate as provided in section 48-304, and the employer
furnishing such evidence shall not be required to furnish any further evidence
of the age of the child.
(4) In case such employer fails to produce and deliver to the attendance
officer or the Commissioner of Labor within ten days after demand such evidence
of the age of any child as may be required under the provisions of section
48-304 and continues to employ such child or permit or suffer such child to
work in such place of business, proof of the giving of such notice and of such
failure to produce and file such evidence shall be prima facie evidence in any
prosecution brought for a violation of this section that such child is under
sixteen years of age and is unlawfully employed.
Sec. 9. Section 48-303, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
48-303 Except as otherwise provided in this section, an employment
certificate shall be approved only by the principal of the school the child
attends or by a person authorized by him or her in writing or, when there is no
principal, by a person authorized by the chief administrative officer of the
school or the superintendent of the school district in which the child resides,
except that no person authorized by this section may approve such certificate
for any child then in or about to enter his or her own employment or the
employment of a firm or corporation of which he or she is a member, officer, or
employee or in whose business he or she is interested. If a child who resides
outside of Nebraska in an adjoining state seeks to work in Nebraska, the
Department of Labor may approve the employment certificate. The officer or
person approving such certificate may administer the oath provided for therein
or in any investigation or examination necessary for the approval thereof. No
fee shall be charged for approving any such certificate or for administering
any oath or rendering any services related thereto. The school approving the
employment certificate, or the department if the department has approved the
employment certificate, shall establish and maintain proper records where
copies of all such certificates and all documents connected therewith shall be
filed and preserved and shall provide the necessary clerical services for
carrying out sections 48-302 to 48-313. The person who issued the employment
certificate shall report to the department any complaint concerning the
conditions of employment of a child for whom a certificate is in force. Upon
receipt of the report, the department shall make such investigation as it deems
advisable to protect an individual child or to promote the youth-work program.
Sec. 10. Section 48-309, Reissue Revised Statutes of Nebraska, is amended
to read:
48-309 The age and schooling certificate provided for herein shall be made
out upon blank forms prescribed and furnished in triplicate by the Department
of Labor.
Sec. 11. Section 48-602, Revised Statutes Supplement, 2025, is amended to
read:
48-602 For purposes of the Employment Security Law, unless the context
otherwise requires:
(1) Agricultural labor means services performed:
(a) On a farm, in the employ of any employer, in connection with
cultivating the soil or in connection with raising or harvesting any
agricultural or horticultural commodity, including the raising, shearing,
feeding, caring for, training, and management of livestock, bees, poultry, fur-
bearing animals, and wildlife;
(b) In the employ of the owner, tenant, or other operator of a farm, in
connection with the operation, management, conservation, improvement, or
maintenance of such farm and its tools and equipment or in salvaging timber or
clearing land of brush and other debris left by a windstorm, if the major part
of such service is performed on a farm;
(c) In connection with the production or harvesting of any commodity in
connection with the operation or maintenance of ditches, canals, reservoirs, or
waterways, not owned or operated for profit, used exclusively for supplying and
storing water for farming purposes;
(d)(i) In the employ of the operator of a farm in handling, planting,
drying, packing, packaging, processing, freezing, grading, storing, or
delivering to storage or to market or to a carrier for transportation to
market, in its unmanufactured state, any agricultural or horticultural
commodity, but only if such operator produced more than one-half of the
commodity with respect to which such service is performed, or (ii) in the
employ of a group of operators of farms, or a cooperative organization of which
such operators are members, in the performance of service described in
subdivision (1)(d)(i) of this section, but only if such operators produced more
than one-half of the commodity with respect to which such service is performed.
Subdivisions (1)(d)(i) and (ii) of this section shall not be deemed to be
applicable with respect to service performed in connection with commercial
canning or commercial freezing or in connection with any agricultural or
horticultural commodity after its delivery to a terminal market for
distribution for consumption; or
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(e) On a farm operated for profit if such service is not in the course of
the employer's trade or business;
(2) Base period means the first four of the last five completed calendar
quarters immediately preceding the first day of an individual's benefit year,
except that if the individual is not monetarily eligible for unemployment
benefits as determined pursuant to section 48-627.01 based upon wages paid
during the first four of the five most recently completed calendar quarters,
the department shall make a redetermination of monetary eligibility based upon
an alternative base period which consists of the last four completed calendar
quarters immediately preceding the first day of the claimant's benefit year;
(3) Benefits means the money payments payable to an individual with
respect to his or her unemployment;
(4) Benefit year, with respect to any individual, means the one-year
period beginning with the first day of the first week with respect to which the
individual first files a valid claim for benefits, and thereafter the one-year
period beginning with the first day of the first week with respect to which the
individual next files a valid claim for benefits after the termination of his
or her last preceding benefit year. Any claim for benefits made in accordance
with section 48-629 shall be deemed to be a valid claim for the purpose of this
subdivision if the individual has been paid the wages for insured work required
under section 48-627.01. For the purposes of this subdivision a week with
respect to which an individual files a valid claim shall be deemed to be in,
within, or during that benefit year which includes the greater part of such
week;
(5) Calendar quarter means the period of three consecutive calendar months
ending on March 31, June 30, September 30, or December 31, or the equivalent
thereof as the Commissioner of Labor may by rule and regulation prescribe;
(6) Client means any individual, partnership, limited liability company,
corporation, or other legally recognized entity that contracts with a
professional employer organization to obtain professional employer services
relating to worksite employees through a professional employer agreement;
(7) Combined tax means the employer liability consisting of contributions
and the state unemployment insurance tax;
(8) Combined tax rate means the rate which is applied to wages to
determine the combined taxes due;
(9) Commissioner means the Commissioner of Labor;
(10) Commodity means an agricultural commodity as defined in section 15(g)
of the federal Agricultural Marketing Act, as amended, 12 U.S.C. 1141j;
(11) Contribution rate means the percentage of the combined tax rate used
to determine the contribution portion of the combined tax;
(12) Contributions means that portion of the combined tax based upon the
contribution rate portion of the combined tax rate which is deposited in the
state Unemployment Compensation Fund as required by sections 48-648 and 48-649
to 48-649.04;
(13) Crew leader means an individual who furnishes individuals to perform
service in agricultural labor for any other person, pays, either on his or her
own behalf or on behalf of such other person, the individuals so furnished by
him or her for the service in agricultural labor performed by them, and has not
entered into a written agreement with such other person under which such
individual is designated as an employee of such other person;
(14) Department means the Department of Labor;
(15) Employers engaged in the construction industry means all employers
primarily engaged in business activities classified as sector 23 business
activities under the North American Industry Classification System;
(16) Employment office means a free public employment office or branch
thereof, operated by this state or maintained as a part of a state-controlled
system of public employment offices, including public employment offices
operated by an agency of a foreign government;
(17) Farm means stock, dairy, poultry, fruit, fur-bearing animal, and
truck farms, plantations, ranches, nurseries, ranges, greenhouses, or other
similar structures used primarily for the raising of agricultural or
horticultural commodities, and orchards;
(18) Fund means the Unemployment Compensation Fund established by section
48-617 to which all contributions and payments in lieu of contributions
required and from which all benefits provided shall be paid;
(19) Hearing officer means a person employed by the Department of Labor
who conducts hearings, contested cases, or other proceedings pursuant to the
Employment Security Law;
(20) Hospital means an institution which has been licensed, certified, or
approved by the Department of Health and Human Services as a hospital;
(21) Insured work means employment for employers;
(22) Leave of absence means any absence from work: (a) Mutually and
voluntarily agreed to by the employer and the employee; (b) mutually and
voluntarily agreed to between the employer and the employee's bargaining agent;
or (c) to which the employee is entitled as a matter of state or federal law;
(23) Paid vacation leave means a period of time while employed or
following separation from employment in which the individual renders no
services to the employer but is entitled to receive vacation pay equal to or
exceeding his or her base weekly wage;
(24) Payments in lieu of contributions means the money payments to the
Unemployment Compensation Fund required by sections 48-649.04, 48-652,
48-660.01, and 48-661;
(25) Professional employer agreement means a written professional employer
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services contract whereby:
(a) A professional employer organization agrees to provide payroll
services, employee benefit administration, or personnel services for a majority
of the employees providing services to the client at a client worksite;
(b) The agreement is intended to be ongoing rather than temporary in
nature; and
(c) Employer responsibilities for worksite employees, including those of
hiring, firing, and disciplining, are shared between the professional employer
organization and the client by contract. The term professional employer
agreement shall not include a contract between a parent corporation, company,
or other entity and a wholly owned subsidiary;
(26) Professional employer organization means any individual, partnership,
limited liability company, corporation, or other legally recognized entity that
enters into a professional employer agreement with a client or clients for a
majority of a client's workforce at a client worksite. The term professional
employer organization does not include an insurer as defined in section 44-103
or a temporary help firm;
(27) Standard rate means the rate assigned to category twenty for that
year under section 48-649.03. The standard rate shall be not less than five and
four-tenths percent of the employer's annual taxable payroll;
(28) State includes, in addition to the states of the United States of
America, any dependency of the United States, the Commonwealth of Puerto Rico,
the Virgin Islands, and the District of Columbia;
(29) State unemployment insurance tax means that portion of the combined
tax which is based upon the state unemployment insurance tax rate portion of
the combined tax rate and which is deposited in the Workforce Development
Program Cash Fund and the Business Innovation Cash Fund as required by sections
48-648 and 48-649 to 48-649.04;
(30) State unemployment insurance tax rate means the percentage of the
combined tax rate used to determine the state unemployment insurance tax
portion of the combined tax;
(31) Temporary employee means an employee of a temporary help firm
assigned to work for the clients of such temporary help firm;
(32) Temporary help firm means a firm that hires its own employees and
assigns them to clients to support or supplement the client's workforce in work
situations such as employee absences, temporary skill shortages, seasonal
workloads, and special assignments and projects;
(33) Unemployed means an individual during any week in which the
individual performs no service and with respect to which no wages are payable
to the individual or any week of less than full-time work if the wages payable
with respect to such week are less than the individual's weekly benefit amount,
but does not include any individual on a leave of absence or on paid vacation
leave. When an agreement between the employer and a bargaining unit
representative does not allocate vacation pay allowance or pay in lieu of
vacation to a specified period of time during a period of temporary layoff or
plant shutdown, the payment by the employer or his or her designated
representative will be deemed to be wages as defined in this section in the
week or weeks the vacation is actually taken;
(34) Unemployment Trust Fund means the trust fund in the Treasury of the
United States of America established under section 904 of the federal Social
Security Act, 42 U.S.C. 1104, as such section existed on January 1, 2015, which
receives credit from the state Unemployment Compensation Fund;
(35) Wages, except with respect to services performed in employment as
provided in subdivisions (4)(c) and (d) of section 48-604, means all
remuneration for personal services, including commissions and bonuses,
remuneration for personal services paid under a contract of hire, and the cash
value of all remunerations in any medium other than cash. The reasonable cash
value of remuneration in any medium other than cash shall be estimated and
determined in accordance with rules and regulations adopted and promulgated by
the commissioner. Wages includes tips which are received while performing
services which constitute employment and which are included in a written
statement furnished to the employer pursuant to section 6053(a) of the Internal
Revenue Code as defined in section 49-801.01.
With respect to services performed in employment in agricultural labor as
is provided in subdivision (4)(c) of section 48-604, wages means cash
remuneration and the cash value of commodities not intended for personal
consumption by the worker and his or her immediate family for such services.
With respect to services performed in employment in domestic service as is
provided in subdivision (4)(d) of section 48-604, wages means cash remuneration
for such services.
The term wages does not include:
(a) The amount of any payment, including any amount paid by an employer
for insurance or annuities or into a fund to provide for such payment, made to,
or on behalf of, an individual in employment or any of his or her dependents
under a plan or system established by an employer which makes provision for
such individuals generally or for a class or classes of such individuals,
including any amount paid by an employer for insurance or annuities or into a
fund to provide for any such payment, on account of (i) sickness or accident
disability, except, in the case of payments made to an employee or any of his
or her dependents, this subdivision (i) shall exclude from wages only payments
which are received under a workers' compensation law, (ii) medical and
hospitalization expenses in connection with sickness or accident disability, or
(iii) death;
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(b) The payment by an employer, without deduction from the remuneration of
the employee, of the tax imposed upon an employee under section 3101 of the
Internal Revenue Code as defined in section 49-801.01;
(c) Any payment on account of sickness or accident disability, or medical
or hospitalization expenses in connection with sickness or accident disability,
made by an employer to, or on behalf of, an individual after the expiration of
six calendar months following the last calendar month in which such individual
worked for such employer;
(d) Any payment made to, or on behalf of, an individual or his or her
beneficiary (i) from or to a trust described in section 401(a) of the Internal
Revenue Code as defined in section 49-801.01 which is exempt from tax under
section 501(a) of the Internal Revenue Code as defined in section 49-801.01 at
the time of such payment unless such payment is made to an employee of the
trust as remuneration for services rendered as such employee and not as a
beneficiary of the trust or (ii) under or to an annuity plan which, at the time
of such payment, meets the requirements of section 401 of the Internal Revenue
Code as defined in section 49-801.01;
(e) Any payment made to, or on behalf of, an employee or his or her
beneficiary (i) under a simplified employee pension as defined by the
commissioner, (ii) under or to an annuity contract as defined by the
commissioner, other than a payment for the purchase of such contract which is
made by reason of a salary reduction agreement, whether evidenced by a written
instrument or otherwise, (iii) under or to an exempt governmental deferred
compensation plan as defined by the commissioner, (iv) to supplement pension
benefits under a plan or trust, as defined by the commissioner, to take into
account some portion or all of the increase in the cost of living since
retirement, but only if such supplemental payments are under a plan which is
treated as a welfare plan, or (v) under a cafeteria benefits plan;
(f) Remuneration paid in any medium other than cash to an individual for
service not in the course of the employer's trade or business;
(g) Benefits paid under a supplemental unemployment benefit plan which
satisfies the eight points set forth in Internal Revenue Service Revenue Ruling
56-249 as the ruling existed on January 1, 2015, and is in compliance with the
standards set forth in Internal Revenue Service Revenue Rulings 58-128 and
60-330 as the rulings existed on January 1, 2015; and
(h) Remuneration for service performed in the employ of any state in the
exercise of his or her duties as a member of the Army National Guard or Air
National Guard or in the employ of the United States of America as a member of
any military reserve unit;
(36) Week means such period of seven consecutive days as the commissioner
may by rule and regulation prescribe;
(37) Week of unemployment with respect to any individual means any week
during which he or she performs less than full-time work and the wages payable
to him or her with respect to such week are less than his or her weekly benefit
amount;
(38) Wholly owned subsidiary means a corporation, company, or other entity
which has eighty percent or more of its outstanding voting stock or membership
owned or controlled, directly or indirectly, by the parent entity; and
(39) Worksite employee has the same meaning as the term covered employee
in section 48-2702.
Sec. 12. Section 48-622.01, Revised Statutes Supplement, 2025, is amended
to read:
48-622.01 There is hereby created in the state treasury a special fund to
be known as the State Unemployment Insurance Trust Fund. The fund terminates on
July 1, 2025, and the State Treasurer shall transfer any money in the fund on
such date to the Workforce Development Program Cash Fund. Beginning July 1,
2025, all state unemployment insurance tax collected under sections 48-648 to
48-661, less refunds, shall be paid into the Workforce Development Program Cash
Fund and the Business Innovation Cash Fund.
Sec. 13. Section 48-648, Revised Statutes Supplement, 2025, is amended to
read:
48-648 (1) With respect to wages for employment, combined tax shall accrue
and become payable by each employer not otherwise entitled to make payments in
lieu of contributions for each calendar year in which he or she is subject to
the Employment Security Law. Such combined tax shall become due and be paid by
each employer to the commissioner for the Workforce Development Program Cash
Fund, the Business Innovation Cash Fund, and the Unemployment Trust Fund in
such manner and at such times as the commissioner may, by rule and regulation,
prescribe. Such combined tax shall not be deducted, in whole or in part, from
the wages of individuals in such employer's employ.
(2) The commissioner may require any employer whose annual payroll for
either of the two preceding calendar years has equaled or exceeded one hundred
thousand dollars to file combined tax returns and pay combined taxes owed by an
electronic method approved by the commissioner, except when the employer
establishes to the satisfaction of the commissioner that filing the combined
tax return or payment of the tax by an electronic method would create a
hardship for the employer.
(3) In the payment of any combined tax, a fractional part of a cent shall
be disregarded unless it amounts to one-half cent or more, in which case it
shall be increased to one cent. If the combined tax due for any reporting
period is less than five dollars, the employer need not remit the combined tax.
(4) If two or more related corporations or limited liability companies
concurrently employ the same individual and compensate such individual through
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a common paymaster which is one of such corporations or limited liability
companies, each such corporation or limited liability company shall be
considered to have paid as remuneration to such individual only the amounts
actually disbursed by it to such individual and shall not be considered to have
paid as remuneration to such individual amounts actually disbursed to such
individual by another of such corporations or limited liability companies. An
employee of a wholly owned subsidiary shall be considered to be concurrently
employed by the parent corporation, company, or other entity and the wholly
owned subsidiary whether or not both companies separately provide remuneration.
(5) The professional employer organization shall report and pay combined
tax, penalties, and interest owed for wages earned by worksite employees under
the client's employer account number using the client's combined tax rate. The
client is liable for the payment of unpaid combined tax, penalties, and
interest owed for wages paid to worksite employees, and the worksite employees
shall be considered employees of the client for purposes of the Employment
Security Law.
(6) The Commissioner of Labor may require by rule and regulation that each
employer subject to the Employment Security Law shall submit to the
commissioner quarterly wage reports on such forms and in such manner as the
commissioner may prescribe. The commissioner may require by rule and regulation
an annual administrative and operational support fee for such reports for
employers eligible for experience rating under section 48-649.03 regardless of
their election to be contributory or reimbursable. The annual administrative
and operational support fee shall be a graduated fee based upon gross wages
paid for the prior calendar year. Each employer shall be assigned a fee
category pursuant to the table below.
Gross Wages Paid – Previous Calendar Year Category
$0 1
$0.01 to $49,999.99 2
$50,000 to $99,999.99 3
$100,000 to $249,999.99 4
$250,000 to $499,999.99 5
$500,000 to $999,999.99 6
$1,000,000 to $1,999,999.99 7
$2,000,000 to $2,999,999.99 8
$3,000,000 to $3,999,999.99 9
$4,000,000 to $4,999,999.99 10
$5,000,000 to $5,999,999.99 11
$6,000,000 to $6,999,999.99 12
$7,000,000 to $7,999,999.99 13
$8,000,000 to $8,999,999.99 14
$9,000,000 to $9,999,999.99 15
$10,000,000 or more 16
The commissioner shall remit the annual administrative and operational
support fee to the State Treasurer for credit to the Contractor, Business, and
Professional Employer Organization Registration Cash Fund. If the balance of
the Contractor, Business, and Professional Employer Organization Registration
Cash Fund reaches or exceeds fifteen million dollars at the close of any fiscal
year, the commissioner shall, by rule and regulation, ratably reduce the annual
administrative and operational support fee for the subsequent year in an amount
sufficient to maintain the fund balance at or below such amount. The
commissioner may require any employer whose annual payroll for either of the
two preceding calendar years has equaled or exceeded one hundred thousand
dollars to file wage reports by an electronic method approved by the
commissioner, except when the employer establishes to the satisfaction of the
commissioner that filing by an electronic method would create a hardship for
the employer. The quarterly wage reports shall be used by the commissioner to
make monetary determinations of claims for benefits.
Sec. 14. Section 48-649.01, Revised Statutes Supplement, 2025, is amended
to read:
48-649.01 (1) By December 1 of each calendar year, the commissioner shall
determine the state unemployment insurance tax rate for the following year
based on information available through the department.
(2) If the state unemployment insurance tax rate is determined to be zero
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percent pursuant to subsection (1) of this section, the contribution rate for
all employers shall equal one hundred percent of the combined tax rate.
(3) If the state unemployment insurance tax rate is not zero percent as
determined in this section, the combined tax rate shall be divided so that not
less than fifty eighty percent of the combined tax rate equals the contribution
rate and not more than fifty twenty percent of the combined tax rate equals the
state unemployment insurance tax rate except for employers who are assigned a
combined tax rate of five and four-tenths percent or more. For those employers,
the state unemployment insurance tax rate shall equal zero and their combined
tax rate shall equal their contribution rate.
(4) On or before December 31 of each calendar year, the commissioner shall
designate the percentage and proportion of the state unemployment insurance tax
rate that shall be remitted to the Workforce Development Program Cash Fund for
the support of workforce development programs and to the Business Innovation
Cash Fund for the support of workforce innovation programs. The department
shall execute a memorandum of understanding with the Department of Economic
Development before September 30 of each calendar year to ensure the
commissioner receives sufficient information regarding the current status of
programs administered under the Business Innovation Act, including any data
necessary for the commissioner to make an informed determination pursuant to
this section.
Sec. 15. Section 48-657, Revised Statutes Supplement, 2025, is amended to
read:
48-657 (1)(a) If any employer defaults in any payment of combined tax or
interest, the commissioner may make in any manner feasible and cause to be
filed as a secured transaction as provided in article 9, Uniform Commercial
Code, and in the real estate mortgage records of any county in which such
employer is engaged in business or owns real or personal property, a statement,
under oath, showing the amount of combined tax and interest in default, which
statement, when filed for record, shall operate as a lien and mortgage on all
of the real and personal property of the employer, subject only to the liens of
prior record, and the property of such employer shall be subject to seizure and
sale for the payment of such combined taxes and interest. Such lien on personal
property may be enforced or dissolved in the manner provided by article 9,
Uniform Commercial Code, and such liens on real estate may be enforced or
dissolved in the manner provided by Chapter 25, article 21, in the enforcing
and dissolving of real estate mortgages. This subdivision shall only apply to
liens filed prior to May 1, 1999.
(b) A lien for unpaid combined taxes filed or recorded pursuant to
subdivision (a) of this subsection shall lapse at the earlier of its expiration
date or the fifth anniversary of the filing or recording date, unless the
commissioner files a notice of continuation in the place of the original filing
or recording and with the appropriate filing officer in the manner provided for
in the Uniform State Tax Lien Registration and Enforcement Act before such lien
lapses. A notice of continuation shall include all of the information required
by the act, the date of the filing or recording of the original lien, and a
statement that the original lien is to be continued for ten years. Thereafter,
such lien shall be enforced and notices of continuation filed in accordance
with the act.
(c) On and after May 1, 1999, if any employer defaults in any payment of
combined tax or interest, the commissioner may file a lien against such
employer in accordance with the Uniform State Tax Lien Registration and
Enforcement Act. Such liens shall set forth the amount of combined tax and
interest in default and shall be continued and enforced as provided in the
Uniform State Tax Lien Registration and Enforcement Act.
(2) It shall be the duty of the State of Nebraska, or any department or
agency thereof, county boards, the contracting board of all cities, villages,
and school districts, all public boards empowered by law to enter into a
contract by public bidding for the erecting and finishing or the repairing of
any public building, bridge, highway, or other public structure or improvement,
and any officer or officers so empowered by law to enter into such contract to
provide in such contract that the person, persons, firm, or corporation to whom
the contract is awarded will pay to the Unemployment Compensation Fund of the
State of Nebraska , the Business Innovation Cash Fund, and the Workforce
Development Program Cash Fund unemployment combined tax and interest due under
the Employment Security Law on wages paid to individuals employed in the
performance of such contract.
(3) No contract referred to in subsection (2) of this section shall be
entered into by the State of Nebraska, a department or agency thereof, an
officer or officers, or a board referred to in such subsection unless the
contract contains the proviso mentioned in such subsection.
(4) Before final payment may be made on the final three percent of any
such contract awarded on or after June 1, 1957, the State of Nebraska,
department or agency thereof, officer or officers, or board awarding the
contract must have received from the contractor a written clearance from the
commissioner certifying that all payments then due of combined tax or interest
which may have arisen under such contract have been made by the contractor or
his or her subcontractor to the Unemployment Compensation Fund.
(5) The final three percent of any such contract referred to in subsection
(4) of this section may be paid if the contractor has supplied a bond with a
satisfactory surety company guaranteeing full payment to the Unemployment
Compensation Fund , the Business Innovation Cash Fund, and the Workforce
Development Program Cash Fund of all combined tax and interest due under the
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Employment Security Law.
Sec. 16. Section 48-1231, Reissue Revised Statutes of Nebraska, is amended
to read:
48-1231 (1) An employee having a claim for wages which are not paid within
thirty days of the regular payday designated or agreed upon may institute suit
for such unpaid wages in the proper court. If an employee establishes a claim
and secures judgment on the claim, such employee shall be entitled to recover
the full amount of the judgment and all costs of such suit, including
reasonable attorney's fees. If the cause is taken to an appellate court and the
employee recovers a judgment, the appellate court shall award reasonable
attorney's fees to the employee. If the employee fails to recover a judgment in
excess of the amount that may have been tendered within thirty days of the
regular payday by an employer, such employee shall not recover the attorney's
fees provided by this subsection. If the court finds that no reasonable dispute
existed as to the fact that wages were owed or as to the amount of such wages,
the court may order the employee to pay the employer's attorney's fees and
costs of the action as assessed by the court.
(2) If an employee works for an employer that is not subject to the
Nebraska Fair Employment Practice Act and such employee is aggrieved by a
violation of section 48-1235, the employee may bring a suit against such
employer in the proper court to recover the damages sustained by reason of such
violation. If an employee prevails in a suit brought pursuant to this
subsection, such employee shall be entitled to recover the full amount of the
judgment and all costs of such suit, including reasonable attorney's fees. If
the cause is taken to an appellate court and the employee recovers a judgment,
the appellate court shall award reasonable attorney's fees to the employee.
(3) An employer who fails to furnish a wage statement under subsection (2)
of section 48-1230 shall be guilty of an infraction as defined in section
29-431 and shall be subject to a fine pursuant to section 29-436.
(3) (4) If an employee institutes suit against an employer under
subsection (1) or (2) of this section, any citation that is issued against such
employer under section 48-1234 and that relates directly to the facts in
dispute shall be admitted into evidence unless specifically excluded by the
court. If a citation has been contested as described in subsection (3) of
section 48-1234, it shall not be admitted into evidence under this subsection
until after such contest has been resolved.
Sec. 17. Section 48-1233, Reissue Revised Statutes of Nebraska, is amended
to read:
48-1233 (1) The Commissioner of Labor shall have the authority to subpoena
records and witnesses related to the enforcement of the Nebraska Wage Payment
and Collection Act. The commissioner or his or her agent may inspect all
related records and gather testimony on any matter relative to the enforcement
of the act when the information sought is relevant to a lawful investigative
purpose and is reasonable in scope.
(2) In case of contumacy by or refusal to obey a subpoena issued to any
person, any court of competent jurisdiction, upon application by the
commissioner, may issue to that person an order requiring such person to appear
before the commissioner or the officer designated by the commissioner to
produce documentary evidence if so ordered or to give evidence touching on the
matter under investigation or in question. Any failure to obey the order of the
court may be punished by the court as a contempt of the court.
Sec. 18. Section 48-1234, Reissue Revised Statutes of Nebraska, is amended
to read:
48-1234 (1) The Commissioner of Labor shall issue a citation to an
employer when an investigation reveals that the employer may have violated the
Nebraska Wage Payment and Collection Act , other than a violation of subsection
(2) of section 48-1230.
(2) When a citation is issued, the commissioner shall notify the employer
of the proposed administrative penalty, if any, by certified mail or any other
manner of delivery by which the United States Postal Service can verify
delivery or by any method of service recognized under Chapter 25, article 5.
The administrative penalty shall be not more than five hundred dollars in the
case of a first violation and not more than five thousand dollars in the case
of a second or subsequent violation.
(3) The employer has fifteen working days after the date of the citation
or penalty to contest such citation or penalty. Notice of contest shall be sent
to the commissioner who shall provide a hearing in accordance with the
Administrative Procedure Act.
(4) Any employer who has an unpaid citation for a violation of the
Nebraska Wage Payment and Collection Act shall be barred from contracting with
the state or any political subdivision until such citation is paid. If a
citation has been contested as described in subsection (3) of this section, it
shall not be considered an unpaid citation under this subsection until after
such contest has been resolved.
(5) Citations issued under this section and the names of employers who
have been issued a citation shall be made available to the public upon request,
except that this subsection shall not apply to any citations that are being
contested as described in subsection (3) of this section.
Sec. 19. Section 48-1706, Reissue Revised Statutes of Nebraska, is amended
to read:
48-1706 Each application shall be accompanied by a fee. The Commissioner
of Labor shall establish the amount of the fee, which shall not exceed seven
hundred fifty dollars, by rule and regulation. The fee shall be established
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with due regard for the costs of administering the Farm Labor Contractors Act.
All fees so collected shall be deposited in the Contractor , Business, and
Professional Employer Organization Registration Cash Fund.
Sec. 20. Section 48-2107, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
48-2107 (1) Each application or renewal under section 48-2105 shall be
signed by the applicant and accompanied by a fee not to exceed forty dollars.
The commissioner may adopt and promulgate rules and regulations to establish
the criteria for acceptability of filing documents and making payments
electronically. The criteria may include requirements for electronic
signatures. The commissioner may refuse to accept any electronic filings or
payments that do not meet the criteria established. The fee shall not be
required when an amendment to an application is submitted. The commissioner
shall remit the fees collected under this section subsection to the State
Treasurer for credit to the Contractor , Business, and Professional Employer
Organization Registration Cash Fund.
(2) A contractor shall not be required to pay the fee under subsection (1)
of this section if (a) the contractor is self-employed and does not pay more
than three thousand dollars annually to employ other persons in the business
and the application contains a statement made under oath or equivalent
affirmation setting forth such information or (b) the contractor only engages
in the construction of water wells or installation of septic systems. At any
time that a contractor no longer qualifies for exemption from the fee, the fee
shall be paid to the department. Any false statement made under subdivision (2)
(a) of this section shall be a violation of section 28-915.01.
Sec. 21. Section 48-2710, Reissue Revised Statutes of Nebraska, is amended
to read:
48-2710 (1) The department shall adopt a schedule of fees for initial
registration, annual registration renewal, and limited registration, not to
exceed two thousand five hundred dollars for initial registration, one thousand
five hundred dollars for annual registration renewal, and one thousand dollars
for limited registration. Such fees shall not exceed those reasonably necessary
for the administration of the Professional Employer Organization Registration
Act.
(2) Fees imposed pursuant to this section shall be remitted to the State
Treasurer for credit to the Contractor , Business, and Professional Employer
Organization Registration Cash Fund.
Sec. 22. Section 48-2905, Reissue Revised Statutes of Nebraska, is amended
to read:
48-2905 (1) The commissioner may make such investigations as he or she
finds necessary or appropriate to determine whether there is compliance with
the Employee Classification Act. Investigations shall take place at the times
and places as the commissioner directs. For purposes of any investigation under
this section, the commissioner or any person designated by him or her may
interview persons at the worksite, take photographs, and utilize other
reasonable investigatory techniques. The conduct of the investigation shall be
such as to preclude unreasonable disruption of the operations of the worksite.
Investigations may be conducted, without prior notice, by correspondence,
telephone conversations, or review of materials submitted to the department.
(2) The commissioner or any officer designated by him or her shall have
the power to administer oaths and affirmations, issue subpoenas, compel the
attendance of witnesses, take evidence, and require the production of any
books, papers, correspondence, memoranda, agreements, or other documents or
records which the commissioner deems relevant or material to the inquiry.
(3) In case of contumacy by or refusal to obey a subpoena issued to any
person, any court of competent jurisdiction, upon application by the
commissioner, may issue to that person an order requiring such person to appear
before the commissioner or the officer designated by the commissioner to
produce documentary evidence if so ordered or to give evidence touching on the
matter under investigation or in question. Any failure to obey the order of the
court may be punished by the court as a contempt of the court.
(4) The department shall establish and operate a hotline and website for
individuals to report suspected violations of the Employee Classification Act.
The hotline and website may be operated in conjunction with the requirements of
the Contractor Registration Act. At a minimum, the department shall require the
reporting individual to provide contact information and a description of the
suspected violation including the name of the business and job site location.
Except to the extent needed in any administrative hearing, civil action, or
criminal proceeding brought to enforce the Employment Security Law, Nebraska
Revenue Act of 1967, or Nebraska Workers' Compensation Act, information
obtained by the department under this section or obtained from any individual
pursuant to the administration of the Employee Classification Act shall be held
confidential.
Sec. 23. Section 81-406, Reissue Revised Statutes of Nebraska, is amended
to read:
81-406 (1) The Contractor , Business, and Professional Employer
Organization Registration Cash Fund is created. The fund shall be administered
by the Department of Labor and shall consist of fees collected by the
department pursuant to the Farm Labor Contractors Act, the Contractor
Registration Act, and the Professional Employer Organization Registration Act ,
the annual administrative and operational support fee described in section
48-648, and such sums as are appropriated to the fund by the Legislature.
(2) The fund shall be used for:
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(a) Enforcing enforcing and administering:
(i) The Employment Security Law;
(ii) The the Farm Labor Contractors Act;
(iii) The , the Contractor Registration Act;
(iv) The , the Employee Classification Act;
(v) The , and the Professional Employer Organization Registration Act; .
(vi) The Non-English-Speaking Workers Protection Act;
(vii) The Wage and Hour Act;
(viii) The Nebraska Wage Payment and Collection Act;
(ix) The Nebraska Healthy Families and Workplaces Act;
(x) The child labor provisions found in sections 48-302 to 48-313;
(xi) The veterans preference provisions found in sections 48-225 to 48-231
and section 48-238;
(xii) The military employment provisions found in sections 55-160 to
55-166; and
(xiii) The onsite safety and health consultation program provided to
private sector employers under 29 C.F.R. part 1908;
(b) Any other purposes related to the proper administration of programs
under the Department of Labor, as determined by the Commissioner of Labor; and
(c) Workforce development grants to be used in accordance with subsection
(2) of section 81-407. No transfer from the Contractor, Business, and
Professional Employer Organization Registration Cash Fund shall be made to the
Workforce Development Program Cash Fund for this purpose except on written
authorization by the Governor at the request of the Commissioner of Labor.
(3) Any money in the fund available for investment shall be invested by
the state investment officer pursuant to the Nebraska Capital Expansion Act and
the Nebraska State Funds Investment Act. Money in the Contractor and
Professional Employer Organization Registration Cash Fund may be transferred to
the General Fund at the direction of the Legislature.
The State Treasurer shall transfer one million seven hundred thousand
dollars from the Contractor and Professional Employer Organization Registration
Cash Fund to the General Fund on or before June 15, 2018, on such dates and in
such amounts as directed by the budget administrator of the budget division of
the Department of Administrative Services.
Sec. 24. Section 81-1201.21, Revised Statutes Supplement, 2025, is amended
to read:
81-1201.21 (1) There is hereby created the Job Training Cash Fund. The
fund shall be under the direction of the Department of Economic Development.
Money may be transferred to the fund pursuant to subdivision (1)(b)(iii) of
section 48-621 and from the Cash Reserve Fund at the direction of the
Legislature. The department shall establish a subaccount for all money
transferred from the Cash Reserve Fund to the Job Training Cash Fund on or
after July 1, 2005.
(2) The money in the Job Training Cash Fund or the subaccount established
in subsection (1) of this section shall be used (a) to provide reimbursements
for job training activities, including employee assessment, preemployment
training, on-the-job training, training equipment costs, and other reasonable
costs related to helping industry and business locate or expand in Nebraska,
(b) to provide upgrade skills training of the existing labor force necessary to
adapt to new technology or the introduction of new product lines, or (c) as
provided in section 79-2308. The department shall give a preference to job
training activities carried out in whole or in part within an enterprise zone
designated pursuant to the Enterprise Zone Act or an opportunity zone
designated pursuant to the federal Tax Cuts and Jobs Act, Public Law 115-97.
(3) The department shall establish a subaccount within the fund to provide
training grants for training employees and potential employees of businesses
that (a) employ twenty-five or fewer employees on the application date, (b)
employ, or train for potential employment, residents of rural areas of
Nebraska, or (c) are located in or employ, or train for potential employment,
residents of high-poverty areas as defined in section 81-1203. The department
shall calculate the amount of prior year investment income earnings accruing to
the fund and allocate such amount to the subaccount for training grants under
this subsection. The subaccount shall also be used as provided in the
Teleworker Job Creation Act. The department shall give a preference to training
grants for businesses located in whole or in part within an enterprise zone
designated pursuant to the Enterprise Zone Act.
(4) On April 5, 2018, any funds that were dedicated to carrying out
sections 25 to 27 of this act 81-1210.01 to 81-1210.03 but were not yet
expended shall be transferred to the Intern Nebraska Cash Fund.
(5) Transfers may be made from the Job Training Cash Fund to the General
Fund at the direction of the Legislature. Any money in the Job Training Cash
Fund available for investment shall be invested by the state investment officer
pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds
Investment Act.
Sec. 25. Section 81-1210.01, Reissue Revised Statutes of Nebraska, is
amended to read:
81-1210.01 For purposes of sections 25 to 27 of this act 81-1210.01 to
81-1210.03:
(1) Department means the Department of Labor Economic Development;
(2) Internship means employment of a student in a professional or
technical position for a limited period of time, by a business in Nebraska, in
which the student:
(a) Gains valuable applied work experiences;
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(b) Increases knowledge and develops connections that assist with career
decisionmaking;
(c) Has the opportunity to match with an employer seeking talent to
evaluate, develop, and retain; or
(d) Receives credited or certified training for skilled positions that
will help resolve skilled workforce shortages and create talent pipelines for
Nebraska industries; and
(3) Student means any person who:
(a) Is in eleventh or twelfth grade in a public or private high school or
a school which elects pursuant to section 79-1601 not to meet accreditation or
approval requirements in Nebraska;
(b) Is enrolled in a college, a university, a certified training
institution, or some other institution of higher education; or
(c) Applies for an internship within twelve months following graduation
from a public or private secondary school, a school that elects pursuant to
section 79-1601 not to meet accreditation or approval requirements in Nebraska,
or a college, a university, a certified training institution, or some other
institution of higher education.
Sec. 26. Section 81-1210.02, Reissue Revised Statutes of Nebraska, is
amended to read:
81-1210.02 (1) The intent of sections 25 to 27 of this act 81-1210.01 to
81-1210.03 is to provide students with valuable internship opportunities in
order to retain such students in the State of Nebraska at institutions of
higher education, convert students to full-time employment in Nebraska, and
attract workers to Nebraska by assisting Nebraska businesses willing to provide
paid internships.
(2) A business may apply to the department for a grant to assist in
providing a student an internship if:
(a) The business certifies that the internship meets the definition of
internship in section 25 of this act 81-1210.01;
(b) The business will pay the student at least the state minimum hourly
wage for the internship;
(c) The internship will be completed within the State of Nebraska;
(d) The internship will be completed within a period of no more than
twenty-four months; and
(e) The internship will be for a duration sufficient to allow the student
to gain significant valuable work experience and knowledge.
(3)(a) The department may provide grants for internships to reimburse the
cost of wages paid to businesses with less than one hundred fifty full-time-
equivalent employees.
(b) The department may also provide grants for internships to any business
to reimburse the costs for any of the following:
(i) Tuition reimbursement for courses at institutions of higher education;
(ii) Internship housing;
(iii) Transportation expenses relating to internships; and
(iv) Internship administrative or recruitment costs.
(c) The maximum grant award per internship is seven thousand five hundred
dollars.
(4) A business may apply for no more than two grants for the same student
and shall not be awarded more than one hundred grants total in any twelve-month
period.
(5) A business may allow a student to telecommute if the business is
located in Nebraska and the college, university, or other institution of higher
education in which the student is enrolled is in Nebraska.
(6) The department shall, to the extent possible, assure that the
distribution of grants under sections 25 to 27 of this act 81-1210.01 to
81-1210.03 provides equitable access to the grants by all geographic areas of
the state.
(7) The department shall, to the extent possible, assure that the grants
awarded pursuant to sections 25 to 27 of this act 81-1210.01 to 81-1210.03 are
for internships which provide valuable learning opportunities for students who
will be seeking employment in a professional or technical field.
(8) The department shall not allocate more than one million five hundred
thousand dollars in any one fiscal year from the Job Training Cash Fund or its
subaccounts for purposes of this section. The department may receive funds from
public, private, or other sources for purposes of this section.
(9) The department shall develop a qualified action plan by January 1 of
each even-numbered year. The plan shall, at a minimum, set forth the
department's priorities and selection criteria for awarding grants for
internships. In order to encourage students from across Nebraska to pursue
internships, the plan shall also include strategies for affirmatively marketing
internships to Nebraska students in high schools, colleges, universities, and
other institutions of higher education in Nebraska. Such strategies shall place
an emphasis on marketing to underserved student populations as defined by the
department in the plan. The department shall submit the plan to the Governor
for approval.
(10) The department shall execute a memorandum of understanding with the
Department of Labor before December 31, 2022, to ensure the exchange of
available Department of Labor data throughout the continuum from
prekindergarten to postsecondary education to the workforce. The department may
utilize data and agreements under sections 79-776, 85-110, 85-309, and 85-1511.
(11) The department shall submit an annual report to the Governor and the
Legislature on or before July 1 of each year which includes, but is not limited
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to, a description of the demand for internship grants and programs under
sections 25 to 27 of this act 81-1210.01 to 81-1210.03 from all geographic
regions in Nebraska, a listing of the recipients and amounts of internship
grants awarded in the previous fiscal year, the impact of the internship
grants, and an evaluation of the internship grants and programs under sections
25 to 27 of this act 81-1210.01 to 81-1210.03 based on the documented goals of
the recipients. The report submitted to the Legislature shall be submitted
electronically. The department may require recipients to provide periodic
performance reports to enable the department to fulfill the requirements of
this subsection. The report shall contain no information that is protected by
state or federal confidentiality laws.
(12) The department may enter into a contract with a Nebraska-based
nonprofit entity for the purposes of carrying out any or all of the provisions
of sections 25 to 27 of this act 81-1210.01 to 81-1210.03.
Sec. 27. Section 81-1210.03, Reissue Revised Statutes of Nebraska, is
amended to read:
81-1210.03 The department may adopt and promulgate rules and regulations
to govern the award and disbursement of grants pursuant to sections 25 to 27 of
this act 81-1210.01 to 81-1210.03.
Sec. 28. Section 81-1210.04, Revised Statutes Supplement, 2025, is amended
to read:
81-1210.04 (1) The Intern Nebraska Cash Fund is created. The fund shall be
used to carry out sections 25 to 27 of this act 81-1210.01 to 81-1210.03 . The
fund shall consist of money transferred to the fund by the Legislature and
money donated as gifts, bequests, or other contributions from public or private
entities. Transfers may be made from the fund to the General Fund at the
direction of the Legislature. Any money in the Intern Nebraska Cash Fund
available for investment shall be invested by the state investment officer
pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds
Investment Act.
(2) The Department of Labor Economic Development, or any entity with which
the department contracts for such purpose, may use up to five percent of any
appropriation to carry out sections 25 to 27 of this act 81-1210.01 to
81-1210.03 for administrative services.
Sec. 29. Section 81-12,152, Reissue Revised Statutes of Nebraska, is
amended to read:
81-12,152 Sections 81-12,152 to 81-12,166 and section 32 of this act shall
be known and may be cited as the Business Innovation Act.
Sec. 30. Section 81-12,154, Reissue Revised Statutes of Nebraska, is
amended to read:
81-12,154 The purpose of the Business Innovation Act is to encourage and
support the transfer of Nebraska-based technology and innovation in rural and
urban areas of Nebraska in order to create high growth, high technological
companies, small businesses, and microenterprises and to enhance creation of
wealth and quality jobs. The Legislature finds that the act will:
(1) Provide technical assistance planning grants pursuant to section
81-12,157 to facilitate phase one applications for the federal grant program;
(2) Provide financial assistance pursuant to section 81-12,157 to
companies receiving phase one and phase two grants pursuant to the federal
grant program;
(3) Provide financial assistance pursuant to section 81-12,158 to
companies or individuals creating prototypes;
(4) Establish a financial assistance program pursuant to section 81-12,159
for innovation in value-added agriculture;
(5) Establish a financial assistance program for innovation in
biosciences;
(6) Establish a financial assistance program pursuant to section 81-12,160
to identify commercial products and processes;
(7) Provide financial assistance pursuant to section 81-12,161 to
companies using Nebraska public or private college and university researchers
and facilities for applied research projects;
(8) Provide support and funding pursuant to section 81-12,162 for
microlending entities, microenterprise entities, and innovation hubs; and
(9) Provide support for locally owned and operated Nebraska-based, high
growth businesses by providing technical resources to foster development,
growth, and high wage creation. For purposes of this subdivision, Nebraska-
based, high growth business means a corporation, partnership, limited liability
company, limited partnership, or limited liability partnership registered with
the Secretary of State that has two to fifty employees and has annual sales of
no less than five hundred thousand dollars and no more than two million five
hundred thousand dollars; and .
(10) Establish that any entity receiving financial assistance under the
Business Innovation Act and that employs any person in this state, whether or
not such entity is subject to the Employment Security Law, shall be required to
submit to the Department of Labor quarterly wage reports on such forms and in
such manner as the Commissioner of Labor may require.
Sec. 31. Section 81-12,155, Reissue Revised Statutes of Nebraska, is
amended to read:
81-12,155 In selecting projects to receive financial assistance under the
Business Innovation Act, the department shall develop a qualified action plan
by January 1 of each even-numbered year. The plan shall set forth selection
criteria to be used to determine priorities which are appropriate to local
conditions and the state's economy, including the state's immediate need for
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innovation development, proposed increases in jobs and investment, private
dollars leveraged, industry support and participation, and repayment, in part
or in whole, of financial assistance awarded under the act. The plan shall also
include selection criteria establishing that any entity applying for financial
assistance under the Business Innovation Act that employs any person in this
state, whether or not such entity is subject to the Employment Security Law,
shall be required to submit to the Department of Labor quarterly wage reports
on such forms and in such manner as the Commissioner of Labor may require. The
department shall submit the plan to the Governor for approval.
Sec. 32. (1) The Business Innovation Cash Fund is created. The fund shall
be used to carry out the Business Innovation Act, except that the fund shall
not be used for purposes of sections 81-12,155.01 and 81-12,163.01. The fund
shall consist of deposits to the fund as required by sections 48-648 and 48-649
to 48-649.04. Any money in the fund available for investment shall be invested
by the state investment officer pursuant to the Nebraska Capital Expansion Act
and the Nebraska State Funds Investment Act.
(2) Money in the fund shall be expended by the department for the purpose
of:
(a) Carrying out the Business Innovation Act, except that such money shall
not be expended for the purpose of carrying out the Bioscience Innovation
Program; and
(b) Payment of unemployment benefits if determined necessary by the
Commissioner of Labor.
(3) The department, or any entity with which the department contracts for
such purpose, may use up to five percent of any appropriation from the fund for
administrative expenses.
Sec. 33. Section 81-12,158, Reissue Revised Statutes of Nebraska, is
amended to read:
81-12,158 (1) The department shall establish a financial assistance
program to provide financial assistance to businesses that employ no more than
five hundred employees or to individuals for the purposes of creating a
prototype of a product stemming from research and development at a business
operating in Nebraska or a public or private college or university in Nebraska.
(2)(a) Until three months after April 20, 2022, funds shall be matched by
nonstate funds equivalent in money equal to fifty percent of the funds
requested; and
(b) Beginning three months after April 20, 2022, funds shall be matched by
nonstate funds equivalent in money equal to:
(i) Twenty-five percent of the funds requested if the applicant's
principal residence or principal place of business is located in an economic
redevelopment area within a city of the metropolitan class; or
(ii) Fifty percent of the funds requested for any other applicant.
(3) Matching funds may be from any nonstate source, including private
foundations, federal or local government sources, quasi-governmental entities,
or commercial lending institutions, or any other funds whose source does not
include funds appropriated by the Legislature.
(4) The amount the department may provide shall not exceed one hundred
fifty thousand dollars per project.
(5) A business or individual applying for financial assistance under this
section shall include a business plan that includes a proof-of-concept
demonstration.
(6) Financial assistance under this section shall be expended within
twenty-four months after the date of the awarding decision.
(7) The department may award up to six million dollars per year for
financial assistance under this section and, beginning in fiscal year 2027-28,
shall award a minimum amount per year under this section. Such minimum amount
shall be equal to the lesser of four million dollars or the total amount needed
to fund all applications that qualify for funding under this section.
Sec. 34. Section 81-12,160, Reissue Revised Statutes of Nebraska, is
amended to read:
81-12,160 (1) The department shall establish a financial assistance
program to provide financial assistance to businesses operating in Nebraska
that employ no more than five hundred employees or to individuals that have a
prototype of a product or process for the purposes of commercializing such
product or process. The applicant shall submit a feasibility study stating the
potential sales and profit projections for the product or process.
(2) The department shall create a program with the following provisions to
support commercialization of a product or process:
(a) Commercialization infrastructure documentation, including market
assessments and start-up strategic planning;
(b) Promotion, marketing, advertising, and consulting;
(c) Management and business planning support;
(d) Linking companies and entrepreneurs to mentors;
(e) Preparing companies and entrepreneurs to acquire venture capital; and
(f) Linking companies to sources of capital.
(3) Funds shall be matched by nonstate funds equal to fifty percent of the
funds requested. Matching funds may be from any nonstate source, including
private foundations, federal or local government sources, quasi-governmental
entities, or commercial lending institutions, or any other funds whose source
does not include funds appropriated by the Legislature.
(4) The department shall not provide more than five hundred thousand
dollars to any one project. The Each year the department may award up to six
million dollars per year under this section and, beginning in fiscal year
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2027-28, shall award a minimum amount per year under this section. Such minimum
amount shall be equal to the lesser of four million dollars or the total amount
needed to fund all applications that qualify for funding under this section.
(5) Financial assistance provided under this section shall be expended
within twenty-four months after the date of the awarding decision.
(6) To carry out this section, the department shall contract with one
statewide venture development organization that is incorporated in the State of
Nebraska and exempt for federal tax purposes under section 501(c)(3) of the
Internal Revenue Code.
Sec. 35. Section 81-12,163, Reissue Revised Statutes of Nebraska, is
amended to read:
81-12,163 (1) It is the intent of the Legislature to appropriate fifteen
million dollars to the department for fiscal year 2027-28 and each fiscal year
thereafter for purposes of carrying out the Business Innovation Act.
(2) (1) It is the intent of the Legislature that (a) the four million
dollars saved due to the elimination of funding for the Angel Investment Tax
Credit Act be used to increase the appropriation to the department for the
Business Innovation Act by four million dollars for fiscal year 2021-22 and
each fiscal year thereafter and (b) the one hundred thousand dollars saved due
to the reduction in tax credits authorized under the Angel Investment Tax
Credit Act for calendar year 2019 be used to increase the appropriation to the
Department of Revenue by one hundred thousand dollars for fiscal year 2019-20
to offset the costs incurred by the Department of Revenue to implement Laws
2019, LB334.
(3) (2) Up to five percent of the funds appropriated for the Business
Innovation Act may be used by the department, or by a nonprofit entity with
which the department contracts, for administrative expenses.
Sec. 36. The Revisor of Statutes shall assign sections 25 to 28 of this
act to Chapter 81, article 4.
Sec. 37. Original sections 48-309, 48-1231, 48-1233, 48-1234, 48-1706,
48-2710, 48-2905, 81-406, 81-1210.01, 81-1210.02, 81-1210.03, 81-12,152,
81-12,154, 81-12,155, 81-12,158, 81-12,160, and 81-12,163, Reissue Revised
Statutes of Nebraska, sections 29-431, 48-302, 48-303, and 48-2107, Revised
Statutes Cumulative Supplement, 2024, and sections 48-602, 48-622.01, 48-648,
48-649.01, 48-657, 81-1201.21, and 81-1210.04, Revised Statutes Supplement,
2025, are repealed.
Sec. 38. The following sections are outright repealed: Sections 48-307,
48-2906, and 48-2909, Reissue Revised Statutes of Nebraska.
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