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| February 22-23 |
2018 PACE Show (Thursday- Friday)
PACEshow.com |
| June 14, 2018 |
2018 GLW Golf Outing |
| October 3 & 4, 2018 |
2018 NPCA & NPGA Joint Convention |
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YOUR WEEKLY MEMBER NEWS LETTER:
is a service provided only to members of the Nebraska Petroleum Markers & Convenience Store Association (NPCA). If you have any key personnel that would like to be added at no additional charge, please feel free to reply to
tkeigher@npcainc.com, katie@npcainc.com or call (402)-474-6691.
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Thank You to NPCA's Partners
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HAPPENINGS IN THE NEBRASKA LEGISLATURE THIS WEEK
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It is official, the 2018 Legislative Session is now one-third complete with Friday of this week marking the 20th day of this 60-day session.
Lawmakers continue to hold floor debate on carryover bills from the 2017 legislative session and 2018 priority bills (first priority) in the mornings, and public hearings on 2018 introduced legislation in the afternoons. This process will continue through the remainder of February, with all day floor debate scheduled to begin on February 28.
With only two-thirds of the session remaining it is imperative that bills be designated as priority status if they have any hope of passing this session.
A Priority Bill is a bill that has priority status and generally is considered ahead of other bills in debate. Each senator may select one priority bill, each committee may select two priority bills, and the speaker may select up to 25 priority bills.
The deadline for a bill to be designated, or a request to be designated is:
Speaker Priority
- prior to adjournment on February 14 for senators to request a bill to be designated as a Speaker priority bill. Speaker will announce his priority selections on February 21.
Committee and senator priority
- prior to adjournment on February 20.Each senator gets one priority bill and committees can designate up to two priority bills.
Priority Designation thus far.
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Senator Priority Designation
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Bill Number
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Primary Introducer
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Status
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Description
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Senator Baker
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LB710
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Senator Baker
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General File
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Change provisions relating to civil claims of four thousand dollars or less. Up on Monday, February 5, first bill.
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Senator Brewer
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LB1054
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Senator Brewer
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Hearing 2/1/2018
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Change provisions relating to hearings before the Nebraska Power Review Board and electric generation using wind
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Senator Briese
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LB1084
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Senator Briese
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Hearing 2/8/2018
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Adopt the Property Tax Request Limitation Act, provide sunset dates for certain tax exemptions and incentives, and change other revenue and taxation provisions
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Senator Ebke
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LB299
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Senator Ebke
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General File
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Adopt the Occupational Board Reform Act and change procedures for rules and regulations
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Senator Krist
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LB368
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Senator Lowe
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General File
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Change helmet provisions, change passenger age limits, and require eye protection for operators of motorcycles and mopeds. Failed (30-15) Cloture vote (needed 33). Dead for the year.
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Senator Morfeld
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LB757
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Senator Morfeld
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Advanced from General File (2/1)
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Change provisions of the Credit Report Protection Act and the Financial Data Protection and Consumer Notification of Data Security Breach Act of 2006
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Committee Priority Designation
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Bill Number
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Primary Introducer
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Status
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Description
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Banking, Commerce and Insurance Committee
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LB743
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Senator Lindstrom
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Advanced from General File 2/1/18
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Adopt the Public Adjusters Licensing Act and change continuing education and pre-licensing education provisions
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Executive Board
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LB744
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Executive Board
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Advanced from General File 2/2/18
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Adopt the Legislative Qualifications and Election Contests Act
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Legislative Performance Audit Committee
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LB936
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Legislative Performance Audit Committee
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General File
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Change provisions relating to tax incentive performance audits under the Legislative Performance Audit Act. Appears on Monday, February 5th agenda as second bill.
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Natural Resources Committee
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LB758
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Senator Hughes
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Select File
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Provide for voluntary payments in lieu of taxes on water augmentation project lands as prescribed
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Urban Affairs Committee
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LB874
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Urban Affairs Committee
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Hearing was Jan 30th, Still in Urban Affairs Comm.
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Change the Community Development Law
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This week the Capitol was filled with Nebraskans seeking tax relief in the form of property tax, along with corporate and personal income tax relief.
They were hoping that the Governor's plan, which was contained in LB947, introduced by Senator Jim Smith on behalf of the Governor, and was heard before the Legislature's Revenue Committee this week on Wednesday.
The bill, as introduced, would adopt the "Nebraska Property Tax Cuts and Opportunities Act", change income tax rates, and eliminate certain exemptions and credits.
The bill attempts to make the following adjustments to property and income statute:
Property tax
- The bill repeals the current property tax credit program, approximately $225 million annually in funding to offset property taxes paid by Nebraskans. In place of the repeal, there would be a refundable tax credit equal to10% of what homeowners and agricultural or horticultural land owners pay in property taxes.
The homeowners' credit will initially be capped at $230 annually and could go as high as $730 annually, if state revenues come in above revenue forecasts.
The agricultural and horticultural land owner's credit will only be available to Nebraska landowners.
Income tax
- The bill also looks to reduce the top corporate and personal income rate from 7.81% and 6.84% respectively to 6.99% over a two-year period, this income tax reduction making up for the loss of property tax reductions to commercial and industrial property tax payers.
As indicated in the bills title, it also includes "opportunities", aka a jobs training component. This will be in the form of $5 million each year for the next two years for "key" jobs.
In Senator Smith's opening statement on the bill, and in Governor Ricketts' testimony in support of LB947, they both reiterated several times that this bill is a "work in progress" and there are ongoing discussions on how to bring tax relief this session between agricultural and business groups throughout the state.
During the Governor's testimony he proposed removing the tax credit triggers in the bill, as introduced, to 12% in the 2018 tax year and 14% in 2019. In the years following, the credit would increase by 2% per year on an every two-year basis, until it reaches a maximum of 30% in 2031.
Steve Nelson, president of the Nebraska Farm Bureau, testified in support of the bill on the condition that the Governor's increase to the tax credit is included in the final bill. He also stated that those organizations representing agricultural and horticultural land owners would support legislation that provides significant property tax relief, from $600 million to $1 billion, as soon as possible.
One major question that has yet to be answered is how to reduce property taxes, those that go to fund K-12, by $600 million to $1 billion and keep K-12 education financially whole. The thought process is to have state aide to K-12 schools funded more by state revenues, these revenues being sales and income taxes, or further cuts to the state's budget in other areas.
Senator Tom Briese attempts to provide the funding to offset the losses if revenue in LB947 through the introduction of LB1084. LB1084 would make several changes to some current sales tax exemptions, increase other taxes, and contains the same concept of collecting sales tax on internet sales that is also in LB44, the internet sales tax bill.
Some specifics in the bill are:
- Increase the state sales tax rate by 1/2%;
- raise cig tax $1/pack;
- places a surtax on tax payers whose adjusted federal gross income is over $500,000 of 2.5% and on incomes over $1 million a 5% surtax.
- Increase the higher income tax bracket rates;
- eliminates exemptions from sales tax such as, auto, ATV, and UTV trade in allowances, newspapers, laundromats, Telefloral deliveries, school lunches, admission to school events, fine art museum purchases, cleaning and repair of clothing, cleaning, maintenance, and repair of other tangible personal property, maintenance, painting, and repair of real property, entertainment admissions, personal care services, lawn care, gardening, and landscaping services, pet-related services, storage and moving services, taxi and limo services, other real estate services, prepaid calling arrangements, soft drinks, bottled water, plus several other items/services.
- Also places any net increase in state sales tax revenues from internet sales tax collection component in the bill into the Property Tax Credit Relief Fund.
- For taxable years beginning or deemed to begin on or after 6 January 1, 2019, under the Internal Revenue Code of 1986, as amended, residents of Nebraska who are shareholders of a small business corporation having an election in effect under subchapter of the Internal Revenue Code or who are members of a limited liability company organized pursuant to the Nebraska Uniform Limited Liability Company Act shall include in their Nebraska taxable income, to the extent includable in federal gross income, their proportionate share of such corporation's or limited liability company's federal income without any adjustments.
LB1084 is set for hearing this coming Thursday, February 8th before the Revenue Committee.
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2018 Upcoming Hearings
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Hearing Date
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Bill Number
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Introducer
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Committee
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On Liner
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2/5/18
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LB953
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Albrecht
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Business & Labor
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Change provisions relating to lump-sum settlements under the Nebraska Workers' Compensation Act. As stated in the bill's Statement of Intent: "requires the Workers' Compensation Court to approve a lump-sum settlement in cases in which (a) the employee at the time of settlement is eligible for Medicare, is a Medicare beneficiary, or has a reasonable expectation of becoming eligible for Medicare within 30 months; or (b) if medical, surgical, or hospital expenses incurred for treatment of the injury will not be fully paid as part of the settlement, if the employee's attorney affirms that the settlement is in conformity with the compensation schedule and for the best interests of the employee or his or her dependents, under all the circumstances."
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2/5/18
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LB734
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Scheer
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General Affairs
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Change provisions relating to special designated licenses under the Nebraska Liquor Control Act. Limits sales to only those products that the licensee produces. Makes changes to ensure that licenses issued under the Special Designated Liquor License (SDL) statute are limited to selling only the product that they are licensed to manufacture under their respective license.
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2/5/18
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LB1120
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Larson
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General Affairs
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Change provisions of the Nebraska Liquor Control Act and music licensing provisions.
As stated in the Statement of Intent for filed on the bill:
1. Clarifies that the fees collected for beer shippers' licenses are to be deposited in the Nebraska Beer Industry Promotional Fund. (p.2)
2. Requires third-party shippers to file annual reports with the Commission regarding the alcohol they transport. (p. 7)
3. Requires Special Designated License (SDL) applications to be received within 10 working days prior to the event, but this requirement may be waived by the Commission's Executive
Director. (p. 10)
4. Includes statutory references that were meant to be removed and would be removed in a Committee Amendment. (p. 10, lines. 18-19)
5. Allows Class C licensees with a Bottling Endorsement to increase the size of their growlers
from 32 ounces to 64 ounces. (p.11)
6. Prohibits the Commission from requiring the long-form application unless the local
governing body requests in writing a hearing to determine whether there has been a change in
circumstances to warrant requiring the long-form application. (p.11 - p.12)
7. Establishes procedures that include requiring the Commission to maintain a list of
delinquent accounts and prohibits wholesalers from selling to retailers who are more than 34
days overdue. (p. 13 - p.14)
8. Allows the Commission the discretion to suspend a license for a second and subsequent violations of the Liquor Control Act in addition to compliance check violations. (p.15 - p. 16)
9. Allows a party to apply for a rehearing when an application is denied. (p. 19)
10. Prohibits expenditures from the Nebraska Beer Industry Promotional Fund to be used for the salaries or compensation for employees of any licensee or entity representing licensees
under the Liquor Control Act. (p. 21)
11. Includes the Music Licensing Agency Act. (p. 21 - p. 26) This Act 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.
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2/5/18
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LB952
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Albrecht
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Business & Labor
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Change provisions relating to dismissals of actions under the Nebraska Workers' Compensation Act
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2/6/18
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LB1133
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Wayne
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Agriculture
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Adopt the Industrial Hemp Act, provide an exemption under the Uniform Controlled Substances Act, and eliminate a provision relating to industrial hemp research
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2/6/18
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LB735
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Blood
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Urban Affairs
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Provide for interlocal agreements regarding nuisances
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2/6/18
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LB1009
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Murante
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Transportation
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Provide a super-two rural highway classification and change maximum highway speed limits as prescribed.
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2/7/18
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LB962
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Smith
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Revenue
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Change individual income tax rates is a placeholder bill with no specific percentages for such rates, allowing the legislature to use it, if a compromise can be reached during the session on what the rates should be.
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2/7/18
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LB961
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Smith
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Revenue
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Change corporate income tax rates, like the above bill is a placeholder with no specific percentages.
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2/7/18
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LB1090
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Smith
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Revenue
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Change provisions relating to inflation adjustments, personal exemptions, and standard deductions. Was introduced as a potential offset to the recent federal tax changes. Because of the federal changes, it is estimated that Nebraskans could pay and additional $220 million in state taxes. This is the result of Nebraska, like a handful of other states that adapt many fundamentals of state tax codes to federal codes.
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2/7/18
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LB963
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Smith
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Revenue
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Change how often real property is inspected and reviewed for property tax purposes
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2/7/18
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LB1089
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Smith
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Revenue
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Change provisions relating to confidential tax information, refundable income tax credits, and homestead exemptions
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2/8/18
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LB976
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Briese
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Revenue
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Provide a reporting duty for the Beginning Farmer Board under the Beginning Farmer Tax Credit Act
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2/8/18
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LB833
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McCollister
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Judiciary
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Change provisions relating to petroleum products liens. Removes the 90-day waiting period.
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2/8/18
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LB1084
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Briese
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Revenue
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Adopt the Property Tax Request Limitation Act....Increase the state sales tax by 1/2%, raise cig tax $1/pack, raise higher income tax bracket, eliminates exemptions from sales tax such as, auto, ATV, UTV trade in allowance and any internet sales tax.
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NPCA 2018 Bills of Interest
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On Monday, the PMAA Board of Directors voted unanimously to accept the newly established Florida Petroleum Marketers Association (FPMA) as a regular state association member. The former FPMA dissolved in 2014. The new FPMA was established in November 2017 and recently requested membership in PMAA. Craig Lynch, FPMA's Chair, said, "Today's petroleum marketing class of trade is facing some significant legislative and regulatory challenges and we look forward to working with PMAA to address those challenges."
"PMAA will be stronger with FPMA's support. Now is the time to be on the offensive to remove onerous rules and regulations and having FPMA with us only furthers our ability to be successful," said PMAA Chair Mark McBride.
"The FPMA's board decision will now enable PMAA and FPMA staff to strengthen our joint lobbying efforts to work together more effectively. We are delighted with their decision," said PMAA President Rob Underwood.
Click
here
to read FPMA's press release.
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Earlier this week, EPA Administrator Scott Pruitt testified before the Senate Environment and Public Works Committee. As expected the RFS became the focal point of the hearing as Administrator Pruitt fielded questions from both parties. Senator Joni Ernst (R-IA) asked Pruitt whether the EPA can extend the summer-time RVP waiver to E10 plus blends in order to allow E15 to be sold year-round. Pruitt responded that it's a legality question and EPA is still considering whether the agency actually has the authority to extend the waiver.
Before the Senate Environment and Public Works (EPW) Committee held a hearing on legislation to extend the RVP waiver to E10 plus blends last summer, PMAA submitted a
letter
for the record to Chairman Barrasso and Ranking Member Carper highlighting its concerns with the bill. PMAA firmly believes that before Congress proceeds any further on granting a RVP waiver to blends above E10, it must first hold a hearing on the effects of ethanol blends on existing underground storage tank (UST) system infrastructure. The introduction of ethanol blends higher than 10 percent (including E15) present significant economic and legal impediments for many gasoline retailers as well as consumer awareness issues that go beyond the price of the fuel. Extending the RVP waiver to E15 at this point further exacerbates these concerns and could force many retailers to invest considerable time and money on an accelerated schedule to switch to an alternative fuel storage and distribution system to remain competitive. PMAA's letter to the EPW Committee also highlighted concerns about different names a few retailers have used to sell E15 such as "Unleaded Plus" to make it more marketable than just calling it E15.
Pruitt also fielded a question from Senator Mike Rounds (R-SD) regarding ethanol's role in meeting Corporate Average Fuel Economy (CAFE) standards for road vehicle fuel efficiency. The Senator asked if the Administration will consider ethanol as a way to boost octane needed for high compression engines being developed by automakers. Pruitt responded that the EPA is agnostic about the fuel source and that EPA is currently reviewing what octane fuels can boost vehicle efficiency. In 2012, the EPA and the National Highway Traffic Safety Administration (NHTSA) adopted rules requiring the nation's cars and light trucks to average 54.5 miles per gallon by 2025. Auto manufacturers have expressed concern that the standards are too aggressive and have urged the Trump Administration to reconsider the rule. Despite agreeing to the Obama-era CAFE standards in 2011, automakers have asked the Trump Administration and Congress to reconsider the current standards given that consumers continue to buy less fuel efficient vehicles due to lower motor fuels prices. The Administration is reviewing the Obama Administration's CAFE standards and is expected to make a determination on whether to reduce CAFE standards this Spring.
Meanwhile, in an interview with Fox Business, Administrator Pruitt partly blamed the RFS for forcing the largest oil refiner on the East Coast, Philadelphia Energy Solutions, to file for bankruptcy last month. PES has blamed RINs costs as a major factor in its bankruptcy filing. Pruitt later said that, "RIN reform is very, very important."
It's safe to say that the RFS fight isn't over for the foreseeable future. Click
here
to view the video
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The House is expected to vote on H.R. 772, known as the "Common Sense Nutrition Disclosure Act," on Tuesday, February 6.
H.R. 772 passed the House overwhelmingly in 2016 but was never voted on by the Senate. The bipartisan bill was then reintroduced last January by Reps. Cathy McMorris Rodgers (R-WA) and Tony Cardenas (D-CA) which would give retailers the flexibility they need to comply with the menu labeling regulations. The bill (S. 261) was also reintroduced in the Senate by Sens. Roy Blunt (R-MO) and Angus King (I-ME). It would allow retailers to identify a single primary menu while not having to include nutrition labeling in other areas of the store. Furthermore, the bill clarifies that advertisements and posters do not need to be labeled and provides flexibility in disclosing the caloric content for variable menu items that come in different flavors or varieties, and for combination meals. Lastly, the bill ensures that retailers acting in good faith are not penalized for inadvertent errors in complying with the rule and stipulates that individual store locations are not required to have an employee "certify" that the establishment has taken reasonable steps to comply with the requirements.
The costly menu labeling rule was scheduled to take effect last May but was delayed until May 2018. In PMAA's past comments on the menu labeling rule, PMAA highlighted the harm the rule would have to single store operators and small businesses. That is because the rule covers any retail establishment with 20 or more locations that sells food that is intended for consumption soon after being purchased. So, whether the rule applies to a business depends upon whether that business is part of a chain with 20 or more locations doing business under the same name, regardless of the type of ownership, the number of establishments owned and operated by a company/individual is not relevant to this criterion. The key is whether there are multiple locations doing business under the same name. Therefore, many operators of single stores or of only a few stores will have to comply with all of the onerous menu labeling requirements. Click
here
to read the rest of PMAA's comments to limit the menu labeling regulation's reach.
> Please reach out to your lawmakers in Congress and urge them to cosponsor the Common Sense Nutrition Disclosure Act. You can easily express your support for the legislation to your lawmakers by clicking
here
. PMAA has been supporting NACS and SIGMA on this issue in an effort to reduce menu labeling compliance costs.
Click
here
to view the vote tally from 2016.
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The 2018 PACEshow, the premier Midwest petroleum and convenience exhibition will be held Thursday, February 22nd and Friday, February 23rd in Kansas City, MO.
All successful tradeshows have 2 key components - the number and quality of exhibitors and the number and quality of attendees.As a result:
►Exhibitors. All NPCA associate members should exhibit at the 2018 PACEshow. Your competition will be there, shouldn't you be there to talk to your current clients, meet new clients and see what your competition is up to??? You can bet your competition will be doing all this and more.
►Exhibitors. Please encourage all of your vendors to exhibit at the 2018 PACEshow.
►Attendees. Please mark your calendars and make sure you attend and actively participate in the 2018 PACEshow.
►Attendees. Please encourage all of your key employees to attend and actively participate in the 2018 PACEshow.
Register today at
www.PACEshow.com.
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 DID YOU KNOW? Baker Tilly, a
NPCA member, has assisted 50 petroleum marketers claim in excess of $300 million in taxable income adjustments since 2014. If you are a Blender of Record of alternative fuels, you may also have an opportunity. Call Mike McCrumb at 608-575-1550 to set up a conference call with our petroleum team to assess your situation.
Baker Tilly Virchow Krause, LLP is one of the oldest and largest certified public accounting and consulting firms in the US. As an independent member of Baker Tilly International, the world's 9th largest network of accounting firms, we bring you access to market-specific knowledge in 147 countries. With a practice dedicated to serving the petroleum industry, we are ready to help you develop reliable, profitable solutions that will add value for years to come.
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