Committee considers LB894 to change PSC fee authority and tighten grain-dealer payment rules
February 03, 2026 | 2026 Legislature NE, Nebraska
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Senator Barry DeKay introduced LB894 and an accompanying amendment (AM1953) on Feb. 5, aiming to modernize fee authority for the Public Service Commission (PSC) and strengthen protections for grain sellers.
Under current statute the grain-dealer application and renewal fee is set at $100; LB894 would allow the PSC to set the fee administratively within a statutory cap (sponsor and PSC discussed a cap of $1,500) and to phase increases gradually. The bill also revises eligibility and claim rules under the Grain Dealer Act (including payment timelines after demand) and adds an interest penalty for violations of written payment agreements.
Dan Watermeier of the PSC told the committee the change would give the agency the flexibility to recover reasonable regulatory costs; he said the PSC intends to proceed cautiously, hold workshops and hearings with industry, and report implementation plans to the legislature before fee authority takes effect (the amendment delays fee authority until July 1, 2027). "If given this authority, the commission plans to approach any fee increases cautiously and collaboratively," Watermeier said.
Stakeholders raised operational concerns. Rocky Weber of the Nebraska Cooperative Council said his group's opposition to the original draft "disappears" if the committee adopts AM1953; the council had warned the original two-day payment timeline for demands would be infeasible when third-party trucking and delivery timing are involved. The amendment readjusts payment timelines to 10 business days and clarifies when interest begins to accrue.
Committee members asked whether fees paid by dealers would go to the PSC or the general fund; committee staff cited current statute indicating dealer and warehouse fees are placed into the general fund, offsetting a portion of PSC programs; sponsors and PSC staff said they would clarify fund destinations and provide a fuller fiscal accounting during follow-up.
The hearing closed after questions and planned follow-up; no committee vote was taken the same day.
Under current statute the grain-dealer application and renewal fee is set at $100; LB894 would allow the PSC to set the fee administratively within a statutory cap (sponsor and PSC discussed a cap of $1,500) and to phase increases gradually. The bill also revises eligibility and claim rules under the Grain Dealer Act (including payment timelines after demand) and adds an interest penalty for violations of written payment agreements.
Dan Watermeier of the PSC told the committee the change would give the agency the flexibility to recover reasonable regulatory costs; he said the PSC intends to proceed cautiously, hold workshops and hearings with industry, and report implementation plans to the legislature before fee authority takes effect (the amendment delays fee authority until July 1, 2027). "If given this authority, the commission plans to approach any fee increases cautiously and collaboratively," Watermeier said.
Stakeholders raised operational concerns. Rocky Weber of the Nebraska Cooperative Council said his group's opposition to the original draft "disappears" if the committee adopts AM1953; the council had warned the original two-day payment timeline for demands would be infeasible when third-party trucking and delivery timing are involved. The amendment readjusts payment timelines to 10 business days and clarifies when interest begins to accrue.
Committee members asked whether fees paid by dealers would go to the PSC or the general fund; committee staff cited current statute indicating dealer and warehouse fees are placed into the general fund, offsetting a portion of PSC programs; sponsors and PSC staff said they would clarify fund destinations and provide a fuller fiscal accounting during follow-up.
The hearing closed after questions and planned follow-up; no committee vote was taken the same day.
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