Tax-Increment Finance Change Amended, Moves to Select File

A bill intended to make certain redevelopment projects easier advanced from general file Aug. 4.

LB 1021, as introduced by North Platte Sen. Mike Groene, would create expedited review of tax-increment financing for redevelopment projects under the state’s Community Development Law if the project:

• Involves repair, rehabilitation or replacement of an existing structure in an existing substandard or blighted area;

• Is in a county with a population of less than 150,000 or in an area that has been declared extremely blighted;

• Involves a structure that is at least 50 years old; and

• Does not exceed $250,000 for a single-family structure, $1 million for a multi-family or commercial structure or $10 million for a structure on the National Register of Historic Places.

An Urban Affairs Committee amendment would increase the minimum age of a structure to 60 years and reduce eligibility to counties with a population of less than 100,000. The decision to allow expedited review would rest with the governing body of a municipality.

Groene described the bill as a “micro-TIF” measure and said it would reduce construction costs, make workforce housing more affordable and rejuvenate blighted areas. He said it would “remove statutory and financial barriers presently in the way of urban renewal in truly blighted and substandard areas.”

Sen. Ben Hansen of Blair said the bill it would make it more difficult to abuse TIF.

“We’re putting the power back in the people’s hands,” he said.

Following adoption of the committee amendment 40-0, lawmakers advanced LB 1021 to select file on a 41-0 vote.

Managed Care Changes OK’d

A bill that changes provider notification procedures for state-contracted managed care companies that deliver Medicaid services passed Aug. 4.

LB 956, introduced by Fremont Sen. Lynne Walz, requires notice of material changes to an agreement between health care providers and a managed care organization. Under the bill, providers will receive:

• A 90-day notice of any material change;

• A proposed effective date of the change;

• A description of the change;

• Notice that the provider can accept or reject the change;

• Contact information for the managed care organization;

• The opportunity to meet with the managed care organization; and

• A copy of the entire agreement after three material changes in 12 months.

LB 956 defines a material change as one that decreases a provider’s payment or compensation, or changes the administrative procedures in a way that may reasonably be expected to significantly increase the provider’s administrative expense, including altering an existing prior authorization, precertification, notification or referral program or specific edits.

The bill also clarifies the intent of Medicaid program integrity audits and requires the state Department of Health and Human Services to notify Medicaid recipients when eligibility is discontinued or modified.

LB 956 passed on a 47-0 vote.

FAFSA Completion Requirement Bill Advanced to General File

Lawmakers gave first-round approval Aug. 4 to a bill that would require Nebraska students to submit a federal college financial aid application before they graduate from high school.

Introduced by Omaha Sen. Tony Vargas, LB1089 would, with some exceptions, require each public high school student to complete and submit a Free Application for Federal Student Aid before graduating, beginning with the 2021-22 school year.

Vargas said mandatory FAFSA filing policies in other states have increased the overall completion rate and closed the gap in completed applications between high- and low-income school districts within two years.

More than 70% of Nebraska jobs require postsecondary education or training, Vargas said, and LB1089 would benefit the state’s workforce by ensuring that more students, including those from low-income families, have the financial resources to pursue higher education.

As introduced, LB 1089 would allow the state commissioner of education or the administrator of the district in which the student is enrolled to waive the requirement under certain circumstances.

An amendment from the Education Committee, adopted 30-0, would replace the bill. Under the amendment, a student’s parent or legal guardian, or the person standing in loco parentis to the student, could submit a signed form indicating that they authorize the student to decline to complete and submit a FAFSA.

A school principal or the principal’s designee also could authorize a student to decline for good cause.

The principal or a designee would provide the number of students who completed a FAFSA or submitted the required waiver to the school district or governing authority for the high school and to the state Department of Education.

Additionally, the amendment would require the commissioner to submit a report with that information to the Legislature.

Vargas introduced an amendment to the committee amendment that would authorize a student who is 19 or older or is an emancipated minor to sign and submit the waiver. The amendment was adopted on a vote of 32-0.

Sen. Mike Groene of North Platte opposed the bill, saying it would create an unnecessary graduation requirement. Groene said he trusts school guidance counselors and administrators to help students and their families complete and submit a FAFSA if they choose to do so.

Senators voted 28-9 to advance LB 1089 to select file.

New Collection of Educational, Workforce Data Authorized

The state will more closely track educational and workforce outcomes under a bill passed by lawmakers Aug. 4.

The data collection system created under LB 1160, sponsored by Lincoln Sen. Matt Hansen, allows the state to track people as they progress through the educational system and enter the workforce.

The state Department of Labor will execute a memorandum of understanding with the data collection system before Dec. 31, 2020, to ensure the exchange of workforce data with all stakeholders.

The bill establishes data collection goals, including:

• Providing workforce outcome data to postsecondary educational institutions;

• Guiding students to education, training and career pathways that will support occupational success;

• Providing comprehensive data reports on students’ workforce results;

• Tracking workforce outcomes;

• Tracking student outcomes by race, ethnicity, gender and economic status to close educational attainment gaps; and

• Identifying long-term return on investment from early education programs.

An annual report of policy recommendations will be provided to lawmakers before Dec. 1, 2021.

The bill passed on a 33-5 vote and takes effect immediately.