Time is running short and tempers are running high
as the Nebraska Legislature attempts to come up with some form of tax relief in the last four days of the session.
It now appears that the Legislature will be in session until April 18th, utilizing all 60 scheduled days, in an effort to try and come to a tax relief package that can garner enough votes to end a filibuster (33 needed), and subsequently find 25 votes to advance a bill to the next round of debate and ultimately to Governor Ricketts.
Lawmakers did make progress this week advancing several bills, including the three bills (LB944, LB945, LB946) that make adjustments to the biennium budget. Subsequently the Governor signed all three bills enacting them into law on Wednesday.
Tuesday of this week saw three hours of floor debate on the Governor's tax relief package, LB947.
To start off the discussion on the Governor's comprehensive tax relief package, Senator Erdman, Bayard, introducer of LB829 (50% refundable property tax credit of K-12 property taxes paid), filled a bracket motion to kill the bill.
Erdman, who opposed the amendment, stating that other bills, including his LB829, offer more significant property tax relief. Erdman said that a 2 percent credit on an agricultural landowner's property tax bill is not enough when valuations on agricultural land have increased approximately 5.6 percent per year over the past 12 years.
After three hours of debate a vote was taken on the kill motion and lost by a vote count of 9-25. In order for Senator Erdman to seek a "reconsideration of the vote just taken" motion, he switched his vote from "yes" to "not voting", thus there were 10 "yes" votes to kill LB947.
The vote on the Erdman kill motion can be viewed as a "test vote" on the passage of LB947, but with only 25 in favor of keeping the bill alive and the assumption that they would vote to pass the bill, it still is nowhere near the anticipated 33 votes that will be needed to end a filibuster.
With all the time spent on the kill motion there was not any opportunity to get to the Revenue Committee's AM2542. LB947 was advanced by the Revenue Committee on March 21st and AM2542, which would replace the bill as introduced was filed on April 4th.
AM2542 would:
- Reduce the state's corporate income tax rate from 7.81% to 6.84% over a 5-year period;
- Allocate $5 million annually for 10 years for workforce development;
- Retain the state's existing property tax credit fund ($225 million annually);
- Provide a refundable tax credit for homeowners of 1% of property taxes paid - 20% over a 12-year period - capped at $25 the first year and a maximum of $500 annually.
- Provide a refundable tax credit for agricultural and horticultural land owners of 2% of property taxes paid, escalating over a 12-year period to 20%, with no cap on the dollar amount allowed.
The fiscal impact to the state, if implemented, would be around $600 million - $700 million by 2030.
Also debated this week was LB1103, introduced by Senator Friesen of Henderson that would have provided a minimum ($500/student) of state aid to K-12 education. The goal is to lessen the overreliance on property taxes to fund K-12 schools.
During the debate, Senator Friesen filed a motion to substitute AM2808 (Briese) for a previously filed amendment, AM2439.
AM2808, if adopted, would have replaced the contents of LB1103 with the provisions of LB1084, introduced by Senator Briese, but held in the Revenue Committee.
The intent of AM2808 is to:
- Increase the state sales tax rate by 1%, from 5.5% to 6.5%;
- Increase the cigarette tax from its current rate of $0.64/pack to $2.14/pack, a $1.50/pack tax hike;
- Impose a surtax of 2.5% on incomes over $500,000 annually and 5% on incomes over $1 million annually.
Senator Jim Smith, Papillon, who opposed AM2808 stated that the amendment would increase taxes by approximately $487 million.
Having spent three hours of floor debate, the allotted time before having to show 33 votes to end a filibuster, lawmakers moved on to the next bill on the agenda.
Frustrated with the lack of progress on finding a compromise on tax relief, Speaker Scheer addressed senators late Friday afternoon, saying that "the Legislature is in jeopardy of doing nothing this year on one of the public's top concerns."
Speaker Scheer is also quoted, by the Lincoln Journal Star, as saying, "We've killed everything that's come in front of us, and why? Because we didn't take the time to determine if we could find something that everyone could agree with," he said. "No one, and I mean no one, was willing to compromise."
He warned lawmakers that if the legislature did nothing this session on property tax relief, that the petition for property tax relief, which is already collecting signatures to place it on the November ballot, and if successfully passed, would create a $1.1 billion fiscal problem that would have to be addressed in the 2019 session. On the other hand, if the petition fails, those seeking property tax relief will have lost their political clout. Both options seem to be a high-stakes gamble for all to consider.
Originally, Speaker Scheer summoned those that had introduced bills to addresses taxing issue this session to meet in his office on Saturday morning at 9:00am to see if a compromise could be worked out.
After receiving some comments on how short a notice was given for the meeting and some senators having prior commitments, a group of senators including Speaker Scheer, Friesen, Groene, Smith, Erdman, Harr and Schumacher all meet Friday evening, but came to no consensus and plan to meet again on Sunday late afternoon.
Senators did meet late Sunday afternoon and were not able to come to agreement on any proposal.
Other Action This Week
LB389
, aka the small cell bill, saw three hours of General File debate but stalled and will now need to show the 33 votes to end a filibuster.
The most contentious issues are that of competitive advantages/disadvantages and fees to place 5g components within existing rights-of-way.
The advantage/disadvantage is one sector of the communications industry, cell carriers, having an advantage over others that provide internet services, cable companies.
The second issue being the establishing of the fees that public entities, like municipalities and power companies, can charge carriers to adhere their 5g components to collocate small cell wireless technology in public right of way.
With LB389 not being on Monday's Legislative Agenda and Monday being the last day a bill must move from General File to have time to clear the remaining two rounds of debate, it is most likely dead for the year.
The subject matter contained in LB389 will most certainly be discussed within the objectives of the task force being created in LB994, which appears on Select File on Monday and should pass this session.
LB994 creates the Rural Broadband Task Force whose purpose is study alternatives for deployment to underserved or unserved areas such as reverse auction programs, public-private partnerships, and funding for competitive deployment. Also, broadband services are defined as high-speed telecommunications capability at a minimum speed of 25 megabits per second down and 3 megabits per second up that enables users to originate and receive high-quality voice, data, and video telecommunications using any technology.
LB1089 - AM2806
(Smith) was filed on Wednesday of this week and if adopted would add language to allow the continuation of the use of 1031 exchanges for purposes of computing one's Nebraska personal property tax liability.
LB1089 was advanced to Select File on March 28th and appears on Monday's Legislative Agenda.
LB1120 - AM2784
was adopted on Tuesday of this week and adds back in several provisions initially contained in the bill, but not advanced from the General Affairs Committee.
AM2784 encompasses:
- The ability of the Liquor Control Commission to regulate bottle clubs, since they allow the consumption of alcohol (BYOB) and thus will allow law enforcement to enter these facilities to do a compliance check.
- Reallocates the shipping licenses fees, correcting an error from a couple years back in how the funds are distributed. The issue here was that the craft brewers were getting more than just the beer license fees to promote the craft beer industry. Basically, a fair amount of the license fees from wine shippers were being allocated to craft beer promotion, when it was the intention that wine fees be used for Nebraska winery promotion.
- Allows an increase in the size of growlers to 64ozs (currently 32ozs).
- Will allow someone applying for a liquor license for the first time to have the ability to appeal to the Liquor Control Commission (LCC). Under current law, only those applying for a license renewal and a subsequent denial are allowed an appeal to the LCC.
Retains the language that was advanced by the General Affairs Committee pertaining to music licensing fees changing the "late fee" to a "fine" and being a fine by the Nebraska Constitution the funds will be directed to school funding.
LB1120 was placed on Select File on Thursday and appears on Monday's Legislative Agenda
Noteable Bills on Next Week's Legislative Agenda
SELECT FILE: 2018 COMMITTEE PRIORITY BILLS
Document
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Introducer
|
Description
|
|
|
Change provisions relating to confidential tax information, refundable income tax credits,
and homestead exemptions
|
|
|
Create the Rural Broadband Task Force and exempt dark fiber from sales tax
|
|
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Appropriation Bill
|
|
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Change provisions of the Nebraska Liquor Control Act and music licensing provisions
|
|
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Change provisions under the Nebraska Workers' Compensation Act and the Employee
Classification Act
|
No Later Than 10:30 A.M. - GENERAL FILE: 2018 SENATOR PRIORITY BILL
Document
|
Introducer
|
Description
|
|
|
Provide population requirements for establishing district boundary
lines for legislative districts, Supreme Court districts, and certain
political subdivisions
|
GENERAL FILE: 2018 SENATOR PRIORITY BILL
Document
|
Introducer
|
Description
|
|
|
Authorize testing of autonomous vehicles by a city of the primary
class on its roadways
|
GENERAL FILE: 2018 SENATOR PRIORITY BILLS
Document
|
Introducer
|
Description
|
|
|
Change provisions of the Property Tax Credit Act and provide
School district property tax relief
|
|
|
Adopt the Nebraska Property Tax Cuts and Opportunities Act,
change income tax rates, and eliminate certain exemptions and
credits
|
|
|
Appropriation Bill
|
|
|
Provide a minimum amount of state aid for each school district
|
Priority Bills of Interest Updated
Prioritized
|
Bill Number
|
Introducer
|
Status
|
One liner
|
Senator Watermeier
|
|
|
Final Reading - Failed to get Cloture votes
|
Adopt the Remote Seller Sales Tax Collection Act
|
Senator Stinner
|
|
|
General File
|
Extend certain levy authority for natural resources districts. Cloture Vote failed 27-14 (needed 33) on March 7th.
|
Senator Pansing Brooks
|
|
|
General File - Failed to get Cloture votes
|
Change provisions relating to appointment of counsel for juveniles
|
Senator Lowe
|
|
|
General File Had 3hrs of floor debate 4/4/2018, will need proof of 33 votes to return to the agenda, which is doubtful
|
Adopt the Small Wireless Facilities Act
|
Agriculture Committee
|
|
|
General File
|
Prohibit certain unlawful acts as prescribed relating to the Weights and Measures Act
|
Senator Baker
|
|
|
Signed 2/28/2018
|
Change provisions relating to civil claims of four thousand dollars or less
|
Speaker Scheer
|
|
|
Placed on Final Reading 4/3/2018
|
Provide a procedure for judicial emancipation of a minor
|
Speaker Scheer
|
|
|
Presented to the Governor 4/6/2018
|
Change provisions relating to real property appraisers
|
Banking, Commerce and Insurance Committee
|
|
|
Signed 3/21/2018
|
Change provisions relating to mortgage licensing, recording of real property instruments, and rights and duties of secured creditors
|
Senator Morfeld
|
|
|
Signed 2/28/2018
|
Change provisions of the Credit Report Protection Act and the Financial Data Protection and Consumer Notification of Data Security Breach Act of 2006
|
Natural Resources Committee
|
|
|
Signed 2/28/2018
|
Provide for voluntary payments in lieu of taxes on water augmentation project lands as prescribed
|
Appropriations Committee
|
|
|
Signed 3/21/2018
|
Adopt the State Park System Construction Alternatives Act
|
Education Committee
|
|
|
General File
Cloture Vote Failed 3/22/2018
|
Require voter approval for school district building fund levies
|
Senator Erdman
|
|
|
In Committee
|
Adopt the Property Tax Relief Act
|
Speaker Scheer
|
|
|
Placed on Final Reading 4/3/2018
|
Require Director of Aeronautics to consult with the Military Department in certain structure permitting decisions
|
General Affairs Committee
|
|
|
General File
Has had 3hrs of floor debate, Needs proof of 33 votes to comeback.
|
Create a licensing exception under the State Electrical Act for certain farm building construction
|
Speaker Scheer
|
|
|
Placed on Final Reading 4/3/2018
|
Provide immunity for certain law enforcement employees administering naloxone and change provisions relating to immunity for persons reporting or experiencing alcohol overdoses
|
Senator Smith
|
|
|
General File Stalled after 3hrs of debate.
|
Adopt the Nebraska Property Tax Cuts and Opportunities Act, change income tax rates, and eliminate certain exemptions and credits
|
Business and Labor Committee
|
|
|
Advanced from Select File 4/6/2018
|
Change provisions relating to lump-sum settlements under the Nebraska Workers' Compensation Act
|
Senator Wishart
|
|
|
Had 3hrs General File debate 4/4/2018
|
Authorize testing of autonomous vehicles by a city of the primary class on its roadways
|
Transportation and Telecommunications Committee
|
|
|
Select File
|
Create the Rural Broadband Study Task Force, change provisions relating to the Nebraska Telecommunications Universal Service Fund, and change powers and duties of the Public Service Commission as prescribed
|
Natural Resources Committee
|
|
|
Presented to the Governor 4/6/2018
|
Increase amounts of liquidated damages for certain violations of the Game Law
|
Senator Hughes
|
|
|
Placed on Final Reading 4/3/2018
|
Provide a super-two rural highway classification and change maximum highway speed limits as prescribed
|
Senator Brewer
|
|
|
In Committee
|
Change provisions relating to hearings before the Nebraska Power Review Board and electric generation using wind
|
Senator Briese
|
|
|
In Committee
|
Adopt the Property Tax Request Limitation Act, provide sunset dates for certain tax exemptions and incentives, and change other revenue and taxation provisions
|
Revenue Committee
|
|
|
Select File -AMD2806 filed 4/4/2018 to extend 1031 exchanges for 2yrs.
|
Change provisions relating to confidential tax information, refundable income tax credits, and homestead exemptions
|
Revenue Committee
|
|
|
Final Reading
|
Change provisions relating to inflation adjustments, personal exemptions, and standard deductions
|
Speaker Scheer
|
|
|
Final Reading
|
Change dollar threshold for certain purchasing requirements under the County Purchasing Act
|
Senator Friesen
|
|
|
General File - had 3hrs of debate, will need 33 to comeback on the agenda
|
Provide a minimum amount of state aid for each school district
|
Senator Harr
|
|
|
In Committee
|
Authorize certain tax credits, change the sales tax rate, and provide for school foundation aid and certain grant programs
|
General Affairs Committee
|
|
|
Placed on Select File 4/5/2018. Was amended with AM2784 to include provisions removed when advanced from committee. See explanation in body of this newsletter.
|
Change provisions of the Nebraska Liquor Control Act and music licensing provisions. With the two pending amendments striking most of the bill's contents leaving only the music provisions, which would provide protections for those entities that host live music performances and are being aggressively contacted by agencies claiming to hold the copyrights to the music being performed and demanding a licensing fee.
|
Last week marked the latest date in which to introduce an Interim Study Resolution. Interim Study Resolutions are a resolution authorizing a committee to study an issue following adjournment of a legislative session and are held in the late summer to the fall of the year.
Interim Study Resolutions of Interest
2018 Interim Studies NPCA
|
Study Resolution Number
|
Introducer
|
Committee
|
On Liner
|
LR339
|
Thibodeau
|
General Affairs
|
Interim study to examine the issuance and usage of special designated licenses under the Nebraska Liquor Control Act pursuant to 53-124.11
|
LR375
|
Larson
|
General Affairs
|
Interim study to examine issues under the jurisdiction of the General Affairs Committee
|
LR382
|
Hilgers
|
General Affairs
|
Interim study to conduct a comprehensive review of state laws affecting farm wineries
|
LR386
|
Hilkemann
|
Appropriations
|
Interim study to examine the impact on state spending as a result of the use of tobacco products in Nebraska
|
LR388
|
Bolz
|
Revenue
|
Interim study to examine issues related to updating the Nebraska Advantage Act
|
LR389
|
Bolz
|
Appropriations
|
Interim study to examine criteria for economic development tools funded by the Legislature
|
LR394
|
Quick
|
Natural Resources
|
Interim study to examine policies and practices designed to assist low-income Nebraskans at risk of utility shutoffs due to overdue payments
|
LR397
|
Wayne
|
Urban Affairs
|
Interim study to examine the statutory authority for municipalities to establish port authorities
|
LR401
|
Ebke
|
Executive Board
|
Interim study to identify the lawful occupations and the occupational regulations which are subject to the Occupational Board Reform Act and to prepare for implementation of the act
|
LR416
|
McCollister
|
Agriculture
|
Interim study to examine which advertising practices should be considered unlawful acts under the Weights and Measures Act
|
LR425
|
Friesen
|
Transportation and Telecommunications
|
Interim study to examine issues under the jurisdiction of the Transportation and Telecommunications Committee
|
LR437
|
Hilgers
|
Executive Board
|
Interim study to analyze possible improvements and changes to the standing committee system of the Legislature
|
LR462
|
Briese
|
Revenue
|
Interim study to examine the possible elimination of various exemptions of goods and exclusions of services under Nebraska's sales and use tax laws
|
LR469
|
Wayne
|
Government, Military and Veterans Affairs
|
Interim study to examine the processes by which state government contracts with small businesses
|