PREPARED BY: Eric Kasik LB 29 DATE PREPARED: February 10, 2025 PHONE: 402-471-0053 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 See Below See Below CASH FUNDS See Below See Below FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS See Below See Below Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate. LB 29 amends the Administrative Procedure Act . It mandates all state agencies conduct a review of existing and pending rules a nd regulations beginning in January of 2026 and ev ery 3 years thereafter. Th e reviews findings are to be submitted to the Clerk of the Legislature by June 30 th each year it is conducted. Each rule and regulation are to be evaluated in the following ways: • Is it essential for health, safety or welfare of the publ ic? • Do the costs of the rule outweigh the benefit? • Can effectiveness of the rule be measured? • Has a less restrictive alternative been considered? • Is there a supporting statute, federal mandate, or court decision? Once received by the Legislature, the reference committee is to disperse the agency’s report to the corresponding committee. Those committees are to review and electronically submit a report based on that review back to the Clerk. These reports are to contain: • Suggested legislation to clarify rules • Recommendations for clarifications to the rules. The bill suspends agency rule making during this review process unless the rule affects health, safety and welfare of the public, is time sensitive or has a state or federal deadline. This bill will have a fiscal impact. The Department of Administrative Services (DAS) submitted a fiscal note with estimates of additional costs for the Department of Correctional Services, The Department of Health and Human Services, and the Department of Environment and Energy. D AS furthermore estimates costs associated with the bill can be absorbed by the Department of Banking and Finance, th e Department of Revenue and the State Patr ol. The estimate from the Department of Health and Human Services indicates the need to hire additional FTE’s, 5 in FY2025-26 and 2 more in FY2026-27, and estimate a cost of $451,387 in FY2025-26 and 631,943 in FY2026- 27. The Real Property Appraiser Board indicated an inability to absorb the cost of this bill and estimated a cost of $18,000 in FY2025- 26 for consultants. Several other agencies indicated the ability to absorb the costs associated with this bill in their current appropriation. For some agencies, additional funds will be required. This fiscal note will be revised if additional information is received. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 29 AM: AGENCY/POLT. SUB: Secretary of State REVIEWED BY: Ryan Yang DATE: 1/12/25 PHONE: (402) 471- 4178 COMMENTS: No basis to disagree with the Secretary of State. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 29 AM: AGENCY/POLT. SUB: Department of Health and Human Services REVIEWED BY: Jacob Leaver DATE: 2/7/2025 PHONE: (402) 471-4173 COMMENTS: Concur with the Department of Health and Human Services’ estimated fiscal impact as a result of LB 29. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 29 AM: AGENCY/POLT. SUB: Department of Transportation REVIEWED BY: Jacob Leaver DATE: 1/23/2025 PHONE: (402) 471-4173 COMMENTS: Concur with the Department of Transportation’s statement that current appropriations can absorb any costs as a result of LB 29. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 29 AM: AGENCY/POLT. SUB: Nebraska Real Estate Commission REVIEWED BY: Ryan Yang DATE: 1/16/25 PHONE: (402) 471- 4178 COMMENTS: No basis to disagree with the Nebraska Real Estate Commission. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RE SPONSE LB: 29 AM: AGENCY/POLT. SUB: Nebraska Real Property Appraiser Boa rd REVIEWED BY: Ryan Yang DATE: 1/12/25 PHONE: (402) 471- 4178 COMMENTS: No basis to disagree with the Nebraska Real Property Appraiser Board. ADMINISTRATIVE SERVICES S TATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 29 AM: AGENCY/POLT. SUB: University of Nebraska System REVIEWED BY: Ryan Yang DATE: 1/15/25 PHONE: (402) 471- 4178 COMMENTS: No basis to disagree with the University of Nebraska System. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 29 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 29. Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 29 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Department of Administrative Services (DAS) - REVISED ENTERPRISE Prepared by: (3) Sarah Skinner Date Prepared: (4) 02/05/2025 Phone: (5) 402-419-4229 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS $682,102 $873,294 CASH FUNDS FEDERAL FUNDS REVOLVING FUNDS TOTAL FUNDS $682,102 $873,294 Explanation of Estimate: LB 29 proposed to implement a review of all existing and pending rules and regulations every three years beginning January 1, 2026. The agency head is to designate an individual responsible for the oversight and review and each agency is to submit a detailed report electronically to the Clerk of the Legislature on or before June 30 of the year the review is conducted. The report is to include whether the rule or regulation is essential to the health, safety or welfare of the public; whether the costs outweigh the benefits; whether the agency has a process to measure the effectiveness of the rule or regulation; whether a less restrictive alternative has been considered; and whether the rule or regulation was promulgated as a result of a statutory requirement, federal mandate or court decision. The operative date for this bill is three months after the adjournment of the Legislature. The requirements of this bill can be completed utilizing the existing resources of the Department of Administrative Services there is no fiscal impact. The Department of Banking & Finance expects to be able to absorb the additional legal resources required and would not have a fiscal impact. The Nebraska Department of Correctional Services would need to hire a legislative coordinator. The minimum salary is $ 26.509 X 40 hours X 52 weeks = $55,138.72. The Department of Health & Human Services would require additional full-time employees to complete the requirements of LB29. The total personnel costs are estimated to be $481,983 the first fiscal year and $671,505 the second fiscal year for seven staff to be added across the Agency. Current staff from across all of the Divisions would have to dedicate significant time to complete the required reviews, absorbing an estimated five hundred hours of work. Additional staff may be required if the workload cannot be sufficiently managed by the current and new staff. In accordance with Nebraska Revised Statute 84-901 (1), the Nebraska Military Department would not be subject to LB29 and there is no fiscal impact. It is estimated that there will be minimal costs to the Department of Revenue to implement this bill. LB29 would not have a fiscal impact on the Nebraska State Patrol. The table below summarizes the associated costs for agencies to hire employees to fulfill the requirements of LB29. Number of Positions Expenditures Agency Position Title FY25- 26 FY26- 27 FY25-26 FY26-27 Dept. of Correctional Services Legislative Coordinator 1.0 1.0 $55,139 $56,933 Benefits $40,733 $45,199 Operating $6.421 $4,796 TOTAL $102,293 $106,929 Dept. of Environment & Energy Attorney III 1.0 1.0 $75,400 $79,170 Benefits $23,940 $25,136 Operating $29,082 $30,116 TOTAL $128,422 $134,422 Dept. of Health & Human Services V73210 - Program Specialists 4.5 6.0 233,700 $327,181 G78791 - Program Manager I 0.75 1.0 $45,451 $63,637 Benefits $97,703 $136,784 Operating $74,533 $104,47 TOTAL $451,387 $631,943 TOTALS (GF) $682,102 $873,294 _____________________________________________________________________________________________________ _ 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) 29 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 2-7-2025 Phone: (5) 471-6719 FY 2025-2026 FY 2026-2027 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS $451,387 $631,943 CASH FUNDS FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS $451,387 $0 $631,943 $0 Return by date specified or 72 hours prior to public hearing, whichever is earlier. Explanation of Estimate: The Department of Health and Human Services (DHHS) would require additional FTEs to complete the requirements of this bill. The total personnel costs are estimated to be $4 51,387 the first fiscal year and $631,943 the second fiscal year for seven staff to be added across the Agency. Current staff from across all of the Divisions would have to dedicate significant time to complete the required reviews, absorbing an estimated five hundred hours of work. Additional staff may be required if the workload cannot be sufficiently managed by the current and new staff. MAJOR OBJECTS OF EXPENDITURE PERSONAL SERVICES: NUMBER OF POSITIONS 2025-2026 2026-2027 POSITION TITLE 26-26 26-27 EXPENDITURES EXPENDITURES K73210 – DHHS Program Specialist 4.5 6.0 $233,700 $327,181 V78791 – DHHS Program Manager I .75 1.0 $45,451 $63,631 Benefits............................................................................................................................... $97,703 $136,784 Operating............................................................................................................................ $74,533 $104,347 Travel.................................................................................................................................. Capital Outlay..................................................................................................................... Aid...................................................................................................................................... Capital Improvements......................................................................................................... TOTAL............................................................................................................ $451,387 $631,943 Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 29 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Board of Geologists Prepared by: (3) Jean Lais Date Prepared: (4) 1/16/2025 Phone: (5) 402-471-3061 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS 0 0 0 0 FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS Explanation of Estimate: The Board of Geologists does not anticipate any significant increase in expenditures or revenue as a result of the reporting requirements in LB29. _____________________________________________________________________________________________________ _ 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……………………………… ..... Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 29 FISCAL NOTE State Agency OR Political Subdivision Name: (2) State Board of Landscape A rchitects Prepared by: (3) Jean Lais Date Prepared: (4) 1/16/2025 Phone: (5) 402-471-3061 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS 0 0 0 0 FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS Explanation of Estimate: The State Board of Landscape Architects does not anticipate any significant increase in expenditures or revenue as a result of the reporting requirements in LB29. _____________________________________________________________________________________________________ _ 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……………………………… ..... Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 29 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Legislative Council Prepared by: (3) Shelley Reed Date Prepared: (4) 02/11/2025 Phone: (5) 402-471-2226 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: No fiscal impact on the Legislative Council. Current staffing would absorb these duties. _____________________________________________________________________________________________________ _ BREAKDOWN BY MAJOR OBJECTS OF EXP ENDITURE 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……………………………… ..... Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 29 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Nebraska Department of Transportation Prepared by: (3) Jenessa Boynton Date Prepared: (4) 1/16/2025 Phone: (5) 402-479-4691 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: LB29 would require each agency to conduct a review of all existing and pending rules and regulations beginning January 1, 2026 and every three years thereafter. Each agency shall submit electronically a detailed report of its findings along with any supporting documentation to the Clerk of the Legislature on or before June 30 in the year the review is conducted. If enacted, NDOT has assumed that about 30 rules and regulations will be reviewed in 2026. Based on that assumption, the agency would need to hire a consultant during FY 2025-26 and every three years thereafter to assist in review, analysis, data collection and reporting. NDOT estimates this effort would take approximat ely 300-500 hours to accomplish, the cost of the consultant would be approximately $50,000 and can be absorbed within the Department’s current appropriation. _____________________________________________________________________________________________________ _ 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…………………………...………. 50,000 Travel……………………………………….. Capital outlay…………………...………….. Aid…………………………………………... Capital improvements……………………... TOTAL……………………………… ..... 50,000 Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 29 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Nebraska Real Estate Commission Prepared by: (3) Joseph D. Gehrki Date Prepared: (4) 01/15/2025 Phone: (5) 402-471-2004 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS 0 0 FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS Explanation of Estimate: Any extra fees can be absorbed into the current agency budget. _____________________________________________________________________________________________________ _ 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……………………………… ..... Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 29 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Nebraska Real Property Appraiser Board Prepared by: (3) Tyler Kohtz Date Prepared: (4) January 10, 2025 Phone: (5) 402-471-9025 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS 18,000 0 0 0 FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS Explanation of Estimate: A significant time burden would be placed on the Board’s staff to review each rule or regulation, including any pending rule or regulation, to determine if each rule or regulation is essential to the health, safety, or welfare of the public; to determine if t he costs of each rule or regulation outweigh the benefits; to identify and report if t he agency has a process in place to measure the effectiveness of each rule or regulation; to determine and identify if less restrictive alternative have been considered for each rule or regulation; and to identify and report if each rule or regulation was promulgated as the result of a state statutory requirement, federal mandate, or court decision. As the Board ’s staff lacks the resources to conduct such review within its standard allocation of time, it is likely that the Board would have to contract with a third party to be responsible for such review. It is estimated that such review would require approximately 80 hours of work for the first report, and 20 hours of work for each report after. At a n estimated contract rate of $22 5.00 per hour for a n individual qualified to conduct such review, the cos t to the Board would be approx imately $18,000.00 for the first year, and $4,500.00 for each report year after. _____________________________________________________________________________________________________ _ BREAKDOWN BY MAJOR OBJECTS OF EX PENDITURE Personal Services: POSITION TITLE NUMBER OF POSITIONS 25-26 26-27 2025-26 EXPENDITURES 2026-27 EXPENDITURES Benefits………………………………...…… Operating…………………………...………. 18,000 0 Travel………………… …………………….. Capital outlay…………………...………….. Aid…………………………………………... Capital improvements……………………... TOTAL……………………………… ..... 18,000 0 Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 29 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Secretary of State Prepared by: (3) Joan Arnold Date Prepared: (4) 1-10-2025 Phone: (5) 402-471-2384 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: No Fiscal Impact _____________________________________________________________________________________________________ _ BREAKDOWN BY MAJOR OBJECTS OF EXPENDI TURE 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……………………………… ..... 0029Create a review process for agency rules and regulations __________________________________ 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) 01/14/2025 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: Although the University is a state agency for some purposes, it does not engage in rule and regulation making like traditional state agencies. Thus, we do not have "rules" or "regulations" that would be subject to review. 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