PREPARED BY: Scott Danigole LB 204 DATE PREPARED: March 14, 2025 PHONE: 402-471-0055 Revision: 00 FISCAL NOTE LEGISLATIVE FISCAL ANALYST ESTIMATE ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates) FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate. LB 204 is the Biometric Autonomy Liberty Law. Section 2 provides Legislative findings. Section 3 provides definitions. Section 4 states that biometric data is the property of the individual from whom the data was originally collected and an individual may sell the right to use his or her biometric data or otherwise consent to its use. Section 5 prohibits any private or public entity from requiring or coercing any individual to be subject to any implantable device. Sections 6 and 7 prohibit a private entity from requiring or coercing any individual to wear or be subject to a device of any kind that collects biometric data or submit to the collection of biometric data. Sections 8 and 9 re quire any controller or processor that is a private ent ity from collecting or possessing biometric data in a manner that is secure and portable. Such entities shall develop and make available to the public a written policy establishing a retention schedule and guidelines for permanently destroying such data. Section 10 requires written consent from the individual or the individual’s legal guardian or legally authorized representative. Section 12 prohibits private entities from selling, leasing, trading, or using biometric data without the prior written consent of the individual. Section 18 provides for an exemption from sections 6 through 11 for biometric data possessed for a security purpose. The Department of Health and Human Services indica tes the bill would require several changes related to data collected by the Department and could jeopardize certain federal funds. There is no basis to disagree with this analysis. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 204 AM: AGENCY/POLT. SUB: Supreme Court REVIEWED BY: Jacob Leaver DATE: 3/13/2025 PHONE: (402) 471-4173 COMMENTS: Concur with the Supreme Court’s estimate of minimal fiscal impact as a result of LB 204. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 204 AM: AGENCY/POLT. SUB: Attorney General REVIEWED BY: Jacob Leaver DATE: 1/17/2025 PHONE: (402) 471-4173 COMMENTS: No basis to dispute the Attorney General’s estimate of no fiscal impact as a result of LB 204. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 204 AM: AGENCY/POLT. SUB: Department of Health and Human Services REVIEWED BY: Jacob Leaver DATE: 3/13/2025 PHONE: (402) 471-4173 COMMENTS: Concur with the Department of Health and Human Services’ indeterminable fiscal impact as a result of LB 204. ADMINISTRATIVE SERVICES STATE BUDGE T DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 204 AM: AGENCY/POLT. SUB: University of Nebraska REVIEWED BY: Jacob Leaver DATE: 1/21/2025 PHONE: (402) 471-4173 COMMENTS: Concur with the University of Nebraska’s estimate of no fiscal impact as a result of LB 204. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 204 AM: AGENCY/POLT. SUB: Department of Administrative Services REVIEWED BY: Jacob Leaver DATE: 1/23/2025 PHONE: (402) 471-4173 COMMENTS: Concur with the Department of Administrative Services estimate of no fiscal impact as a result of LB 204. Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 204 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Department of Administrative Services (DAS) Prepared by: (3) Michael Donley Date Prepared: (4) 1/16/2025 Phone: (5) 402-471-4114 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS FEDERAL FUNDS REVOLVING FUNDS TOTAL FUNDS Explanation of Estimate: LB 204 would adopt the Biometric Autonomy Liberty Law. The Biometric Autonomy Liberty Law creates certain rights and responsibilities related to biometric data (fingerprints, voice prints, retina images, iris images, other unique biological patterns or characteristics). The Department of Administrative Services (DAS) does not currently collect, store, or control biometric data. LB 204 has no fiscal impact to the Department of Administrative Services. _____________________________________________________________________________________________________ _ BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE Personal Services: POSITION TITLE NUMBER OF POSITIONS 25-26 26-27 2025-26 EXPENDITURES 2026-27 EXPENDITURES Benefits………………………………...…… Operating…………………………...………. Travel……………………………………….. Capital outlay…………………...………….. Aid…………………………………………... Capital improvements……………………... TOTAL ………………………………... .. LB(1) 204 FISCAL NOTE 2025 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION State Agency or Political Subdivision Name:(2) Department of Health and Human Services Prepared by: (3) John Meals Date Prepared 3-13-25 Phone: (5) 471-6719 FY 2025-2026 FY 2026-2027 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS SEE BELOW SEE BELOW SEE BELOW SEE BELOW Return by date specified or 72 hours prior to public hearing, whichever is earlier. Explanation of Estimate: LB204 would adopt the Biometric Autonomy Liberty Law, which sets parameters for the collection, use, and handling of biometric data. Enactment of this bill would impact the Office of Economic Assistance (OEA), Child Care and Development Fund program (CCDF), and Child Support Enforcement (CSE) program. Currently, the Department of Health and Human Services (DHHS) is required to complete fingerprint background checks to remain in compliance with federal and state laws. Under CCDF federal requirements, all childcare staff and applicable household members must complete fingerprinting for mandatory background checks to be licensed and enrolled in the childcare subsidy program. These checks, including state and federal fingerprint checks, must be performed before hiring or allowing someone to live in a childcare home and updated periodically (45 CFR §98.43(b)(1)). According to Neb. Rev. Stat. §71-1912(5)(b), staff must undergo a national criminal history check at least once every five years. Fingerprints are submitted to the Nebraska State Patrol (NSP), which sends them to the FBI for processing. Providers seeking subsidy reimbursement must comply with these background check requirements, as failure to do so may result in losing federal CCDF funding. The Division of Public Health and Occupational Licensure Unit is involved in gathering biometric data through fingerprinting for professional licenses. Findings are shared with providers and individuals. A new bill would require DHHS to update agreements for current childcare providers by removing mandatory fingerprint background checks. Additionally, updates are needed for various NAC titles and an amendment to the CCDF State Plan is required. Once amended, the department would be placed out of compliance and on a corrective action plan that could lead to a loss of up to 5% of federal CCDF funding annually; Public Health could lose access to approximately $3 million per year in funding to support child care licensing operations annually. Under CSE federal regulations, the program must be able to access Federal Tax Information (FTI) to participate in tax offset programs that allow CSE to intercept tax refunds for non- custodial parents who are behind on their child support. In FY2023, CSE collected $9.023 million for Nebraska children through this program, making it essential for DHHS. Without FTI access, DHHS could face disallowance or reductions in federal funds. CSE and a limited number of OEA eligibility staff are required to undergo a criminal background check, including fingerprinting, to access FTI. Loss of FTI would hinder DHHS’s ability to fully administer the CSE Program and verify eligibility for public assistance programs. This would also limit collections such as federal tax offset payments paid to families served by the child support program. The bill would prevent the Department of Public Health from requiring fingerprint-based background checks for licensing, impacting their ability to deny credentials based on lack of fingerprint information. To implement this bill, the department would need to take the following steps: 1. Update application forms and the DHHS website to reflect new fingerprint background check requirements. 2. Revise or repeal statutes authorizing fingerprint background checks. 3. Collaborate with the NSP and FBI to cease fingerprinting for affected professions. 4. Notify federal partners that Nebraska can no longer meet federal fingerprint requirements. 5. Inform licensure compacts that Nebraska can no longer participate in those requiring fingerprint checks The Data Office would need to assist in identify ing what biometric data could be collected and shared with or by Occupational Licensing. MAJOR OBJECTS OF EXPENDITURE PERSONAL SERVICES: NUMBER OF POSITIONS 2025-2026 2026-2027 POSITION TITLE 26-26 26-27 EXPENDITURES EXPENDITURES Benefits............................................................................................................................... Operating............................................................................................................................ Travel.................................................................................................................................. Capital Outlay..................................................................................................................... Aid...................................................................................................................................... Capital Improvements......................................................................................................... TOTAL............................................................................................................ SEE ABOVE SEE ABOVE Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 204 FISCAL NOTE State Agency OR Political Subdivision Name: (2) 05 Supreme Court Prepared by: (3) Eric Asboe Date Prepared: (4) 3/12/2025 Phone: (5) 402-326-9215 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS Explanation of Estimate: Minimal fiscal impact to provide judicial and staff education. No additional resources required. _____________________________________________________________________________________________________ _ BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE Personal Services: POSITION TITLE NUMBER OF POSITIONS 25-26 26-27 2025-26 EXPENDITURES 2026-27 EXPENDITURES Benefits…………………………… …...…… Operating…………………………...………. Travel……………………………………….. Capital outlay…………………...………….. Aid…………………………………………... Capital improvements……………………... TOTAL……………………………… ..... 0204Adopt the Biometric Autonomy Liberty Law __________________________________ EXPENDITURESEXPENDITURES NUMBER OF POSITIONS Please complete ALL (5) blanks in the first three lines. 2025 LB (1) FISCAL NOTE State Agency OR Political Subdivision Name: (2) University of Nebraska System Prepared by: (3) Anne Barnes Date Prepared: (4) 01/17/2025 Phone: (5) (402) 559-6300 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025 - 26 FY 2026 - 27 EXPENDITURES REVENUE GENERAL FUNDS 0.00 0.00 CASH FUNDS 0.00 0.00 FEDERAL FUNDS 0.00 0.00 OTHER FUNDS 0.00 0.00 TOTAL FUNDS 0.00 0.00 EXPENDITURES REVENUE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Explanation of Estimate: No fiscal impact. BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE Personal Services: POSITION TITLE Benefits.............................................. Operating........................................... Travel................................................. Capital outlay.................................... Aid................................................... Capital improvements........................ TOTAL...................................... 25 - 26 0 0 26 - 27 0 0 2025 - 26 2026 - 27