ONE HUNDRED NINTH LEGISLATURE - FIRST SESSION - 2025 COMMITTEE STATEMENT LB397 Hearing Date: Monday February 24, 2025 Committee On: Business and Labor Introducer: Moser One Liner: Eliminate provisions relating to workplace safety committees and a workplace safety program and terminate a fund Roll Call Vote - Final Committee Action: Advanced to General File Vote Results: Aye: 6 Senators Kauth, Hansen, Ibach, McKeon, Raybould, Sorrentino Nay: 1 Senator McKinney Absent: Present Not Voting: Testimony: Proponents: Representing: Senator Mike Moser Opening Presenter Katie Thurber Nebraska Department of Labor Ryan McIntosh National Federation of Independent Business, Nebraska for Worker's Compensation Equity and Fairness Ansley Fellers Nebraska Grocery Industry Associatoin Opponents: Representing: Guillermo Pena Nebraska Democratic Party Latinx (NDP) Brandon Brown Nebraska Association of Public Employees (NAPE) Neutral: Representing: * ADA Accommodation Written Testimony Summary of purpose and/or changes: LB 397 would amend Neb. Rev. Stat. § 44-3,158, 48-144.03, and 48-446. It would also repeal Neb. Rev. Stat. § 48-443, 48-444, and 48-445 outright. The Bill amends the Nebraska Workers’ Compensation Act (“Act”) to remove the requirement of employers subject to the Act to have a safety committee. Employers have been required to have a safety committee since 1994. The safety committees created and maintained written injury prevention programs for each employer. The safety committees are assisted and supported by the Workplace Safety Consultation Program Cash Fund (“Fund”). Committee Statement: LB397 Business and Labor Committee Page 1 181b31ba2e585423971a31ce470a99b0 As the safety committees are no longer required, employers would no longer be required to have one to be considered in good faith and entitled to be covered by workers’ compensation insurance pursuant to the Act. Additionally, the Fund would no longer have a purpose, and is being terminated. The remaining funds would then be transferred to the General Fund. Currently, notice is required to be given to the Nebraska Workers’ Compensation Court (“Court”) and the employer when a workers’ compensation insurance policy within the policy period is to be cancelled. The cancellation then cannot be effective until thirty days after the notice. The Bill would remove this notice requirement. The same notice requirements are also required for the expiration of lapse at the end of a policy period. These would also be removed as well. Finally, the exception to the thirty-day notice for cancellation or nonrenewal of other workers’ compensation policies for the failure of an employer to maintain a safety committee is removed, as the requirement to have a safety committee is being terminated with the Bill. Section-by-Section Summary: Section 1: Amends § 44-3,158 to remove the requirement of employers to establish a safety committee to be considered in good faith and entitled to be covered by workers’ compensation insurance. Section 2: Amends § 48-144.03 to remove the notice requirements of the cancellation of a workers’ compensation insurance policy during the policy period or the nonrenewal of such a policy to the Court and the employer. The exception to the thirty-day notice for cancellation or nonrenewal of other workers’ compensation policies for the failure of an employer to maintain a safety committee is removed. Section 3: Terminates the Workplace Safety Consultation Program Cash Fund under § 48-446 when the Act is effective and moves the remaining funds to the General Fund. Section 4: Repeals the original sections being amended. Section 5: Repeals outright § 48-443, 48-444, and 48-445, removing the requirement of employers subject to the Act to have a safety committee. Kathleen Kauth, Chairperson Committee Statement: LB397 Business and Labor Committee Page 2 181b31ba2e585423971a31ce470a99b0