OMAHA COALITION MEETING Wednesday, February 13, 2019 9 a.m.

A G E N D A

I. Welcome and Introductions

II. Review of the January 23, 2019 Meeting Minutes (please contact PEM staff with corrections)

III. Guest Speaker: Jeff Soukup, DHHS Program Manager: The tobacco control movement as a model for evidence-based alcohol prevention

IV. Focus Area Updates

A. Policy i. 2019 Legislative Tracking Sheet ii. Upcoming Legislative Hearings iii. Alcohol tax fact check iv. Policy Work Group Meeting: DUIs – Tuesday, Feb. 26 @ 3:30 p.m.

B. Enforcement i. Metro Area Law Enforcement Work Group meeting, 2/13/2019 @ 10:00 ii. February 2019 Law Enforcement Training: Controlled Underage Party Dispersal

C. Youth i. February 27, 2019 LET Youth Volunteers

D. Awareness i. January 2019 Research and News Summaries available at www.projectextramile.org

V. Additional Discussion/Announcements

VI. Adjournment and Next Meeting Date: Dr. Noelle LoConte, M.D. will discuss the ASCO Policy Statement she authored on preventing alcohol-related cancers on March 13th, 9 a.m. @ UNMC College of Public Health, Room 2001

IMPORTANT UPCOMING EVENTS Law Enforcement Training Registration Deadline – February 22, 2019 Policy Work Group Meeting: DUIs – February 26 at 3:30 p.m. Law Enforcement Training – Scottsbluff: February 26 & Omaha: February 27 at 1 p.m. UNMC Grand Rounds – Addressing Alcohol’s Role in Cancer – March 13 at 12 p.m. Nebraska Liquor Control Commission Hearings – March 5 & 6, 2019 PEM Coalition Meeting (DUI Discussion Follow-up) – June 12, 2019

PROJECT EXTRA MILE

OMAHA METRO AREA COALITION MEETING MINUTES January 23, 2019

I. Call to Order: Project Extra Mile Executive Director Chris Wagner called the meeting to order at the National Safety Council, Nebraska at 9 a.m.

II. Welcome and Introductions: Welcome and introductions took place around the room. Coalition members in attendance: Ryan Lindberg, Mike Kraus, Rebecca Patlan, Virgil Patlan, Andrea Frazier, Nikki Carritt, Paul Letcher, Jeanne Bietz, Lee Polikov, Tim Owens, Jim Timm, Ed Vierk, Mark Segerstrom, Sherri Cannon, Jason Scott, Patrick Nastase, Bonnie Moore, William Acosta-Trejo, James Wrigley, Neal Bonacci, Bill Kovarik, Sharona Crittenden, Mark Magill, Bill Armbrust, Brandi Preston, Sam Petro, Don Hoes and Chris Foster. Staff members in attendance: Chris Wagner, Melissa Rotella, Liene Topko and Lex Ann Roach. III. Approval of Minutes: The minutes from the December 12th, 2018 meeting were reviewed and approved. No additions or corrections were made.

IV. Discussion

Virgil Patlan, a Nebraska Parole Board member and Burlington Neighborhood Association member, started the discussion by talking the senseless deaths of young people in the Omaha area due to drunk driving. He’s seen prisoners with 8 DUI’s who have up to 4 or 5 first offenses. It’s a problem that needs immediate attention by the judicial and legislative branches. One solution he’d like to see are harsher first-time DUI punishments. Wagner then shared DUI statistics in Nebraska and pointed to the National Academies report on getting to zero alcohol-impaired driving fatalities. Wagner reviewed the recommendations outlined in that report and then asked everyone to provide a brief summary of their efforts to prevent DUIs. a) Jeanne Bietz with DHHS and Nebraska Drive Smart Coalition spoke of a number of public education initiatives aimed at both youth and adults to prevent DUIs. b) Douglas County Deputy Attorney Ryan Lindberg spoke about working closely with law enforcement about keeping track of statistics. He commented that Douglas Co. Attorney’s Office has been very successful in getting lengthy sentences of DUI convictions, particularly for those involving a fatality. c) Interim Administrator Bill Kovarik with Nebraska Department of Transportation, Highway Safety Office remarked they’d like to rewrite Title 177, chapters 1 & 7 to help convict easier. d) Sam Petro, a prevention coordinator Know the Truth informed the group about the personal stories they’re sharing in schools to help prevent alcohol and drug use. e) Sarpy County Attorney Lee Polikov indicated he’d also like to see tougher sentences for DUIs. He also noted Sarpy County Diversion has been successful in works keeping recidivism rates low in the county. f) Don Hoes with Keystone Treatment Center praised the free ride home and tow to go programs and noted there are 700 AA meetings a week to help those with substance use disorders. g) Sgt. James Wrigley with the SCSO DUI Task Force said that the Task Force is

Omaha Coalition Meeting Minutes January 2019

conducting at least one DUI checkpoint per year. They have also had a lot of success with saturation patrols h) Sharona Crittenden with Sarpy Diversion commented on the diversion program offering an evaluation right after the arrest, requiring two AA meetings per week and six months of drug and alcohol counseling, plus interlock installed in the vehicle. i) Ed Vierk with the Attorney General’s Office conducts trainings in rural areas and noted it’s hard to get prison time for motor vehicle homicide without the big city prosecutors. He made the point that if the media and newspaper report more on the convictions the judges in the rural areas will take note and follow suit. j) Capt. Jason Scott with the Nebraska State Patrol remarked that recruiting is down but they’re doing the best they can. The paperwork for DUIs has become more extensive over the years and is time consuming. Despite the paperwork burden, he was open to sharing place of last drink data with local governing bodies and the Liquor Control Commission to help identify problem alcohol outlets. k) Chris Foster with the Gifford Park Neighborhood Association informed the coalition of the Good Neighbor Ordinance and that bars could lose their certificate of occupancy if they disobey the ordinance. Businesses that know the city’s watching are less likely to overserve their customers. He also urged the city to have a more transparent process for using the ordinance. l) Andrea Frazier with MADD informed the coalition that they are monitoring DUI court case results. They are seeing a lot of 7-day jail time and house arrest as opposed to other penalties. m) Paul Letcher with HSO notified the coalition of Project Night Life’s efforts in conducting 1,000 presentations to local high schools. n) Wagner closed noting that the problem is large and no one solution will fix the problem. The coalition needs to approach this issue from all angles if we hope to bring our DUI and DUI fatality rates down.

V. Group Discussion/Announcements i. Project Extra Mile encouraged the coalition to attend the follow-up June coalition meeting where we will again discuss DUI’s.

VI. Adjournment and Next Meeting Date: The meeting was adjourned. The next meeting will take place on Wednesday, February 13th at 9 a.m. at the National Safety Council, Nebraska.

Omaha Coalition Meeting Minutes January 2019

PROJECT EXTRA MILE 2019 Legislative Bill Tracking

Bill # Sponsor(s) Description Bill Status Additional Information Permits City and County to enter into an interlocal Blood Provide for interlocal agreements regarding Engrossment LB11 agreement for joint and cooperative action within Urban Affairs nuisances 2/11/19 extraterritorial zoning jurisdiction to prevent nuisances. Hilkemann Change provisions relating to occupant Transportation and protection system enforcement and change Requires all passengers of a vehicle to utilize a seatbelt; LB39 Telecommunications Hearing 3/4/19 certain violations from secondary to primary infraction results in a primary offense and a fine of $25. McDonnell name enforcement added Permits the Nebraska Liquor Control Commission (LCC) to Change special designated licensure deliver a special designated license (SDL) to the licensee Lowe Engrossment LB56 provisions under the Nebraska Liquor Control electronically. Reduces the number of days prior to the General Affairs 2/11/19 Act event from 21 to 12 if the local governing body has established an expedited process for SDL applications.  Permits a court to defer sentencing of a defendant pending upon successful completion of probation.  The defendant’s charge may be dismissed without judgment upon successful completion of probation and payment or waiver of all administrative & programming fees.  A defendant is not eligible for deferred judgement if: o Have previously been convicted of a felony o Have been granted deferred judgement 2 or more Wayne Provide for deferred judgments by courts as times LB91 Hearing 3/20/19 Judiciary prescribed o Had been granted deferment within the past 5 years for a felony o Are not eligible for probation o The defendant is a business entity  Court must first determine if deferred judgement will provide maximum opportunity for rehabilitation and protect the community from further offenses by the defendant  Upon judgement, the court must specify, in writing, reasons and supporting facts for decision Prepared by Project Extra Mile Last updated: 2/12/2019

 Probation limits are: o For a felony, not less than 2 years or more than 5 years o For a misdemeanor, not less than 1 year or more than 2 years o The term may be extended for up to 1 year o The term may be reduced if the purpose of probation has been fulfilled and fees paid Wishart LB110 Judiciary Adopt the Medical Cannabis Act Hearing 1/25/19 AM21 pending *Wishart priority Requires at least one hour of behavioral and mental health training for nurses, teachers, counselors, LB120 Crawford Require teacher and school staff to receive psychologists, administrators, social workers, etc. during

Support Education training on behavioral and mental health contract hours. New training topics include trauma- informed care, early detection of behavioral and mental health problems, effective responses for educators, etc. Quick; Albrecht, Increases legal age of use of vapor products to 21; Bolz, Cavanaugh, Violation will result in a Class V misdemeanor. Hilkemann, Howard, Misrepresenting one’s age in order to purchase vapor LB149 McDonnell, Pansing Change provisions relating to vapor products products shall be guilty of a Class V misdemeanor. Brooks, Vargas, Sale to an individual under 21 will result in a Class III Walz, Wishart misdemeanor. General Affairs Requires Nebraska State Patrol to research how to Brewer; Gragert, increase state criminal justice protective and investigative Pansing Brooks resources for reporting and identifying Native American Judiciary Authorize a study to improve reporting and women and children in Nebraska by working with the LB154 Select File Cavanaugh, DeBoer, investigation of missing Native American Commission on Indian Affairs and the Department of Support 2/12/19 Slama, Erdman, women Justice. Results and recommendations must be provided Hunt, McCollister to the Legislature by 6/1/2020. name added AM36 adopted

Prepared by Project Extra Mile Last updated: 2/12/2019

Appropriates $1.525M/fiscal year to the Nebraska Commission on Law Enforcement and Criminal Justice for the Office of Violence Prevention to be used for Bolz; Hilkemann State intent relating to appropriations for the increasing grant awards, developing an annual statewide LB174 Appropriations Office of Violence Prevention strategic plan, increase administrative capacity, and develop a technical assistance partnership with the University of Nebraska. This appropriation does not sunset. Prohibits the Department of Health and Human Services from denying a license application or renewal of a facility Change provisions relating to licensure under Wishart due to the use of locked doors for civil protective custody the Health Care Facility Licensure Act of E&R Initial LB200 Health & Human services, as long as they are only used while the alcoholism centers providing civil protective 2/8/19 Services individual is a danger to themselves or others. custody of intoxicated persons

AM90 adopted Restricts the ability of a person to petition to set aside an infraction, misdemeanor or felony to those sentenced to one year or less of imprisonment. A petition shall be denied if filed: 1) By any person with a criminal charge pending in any court in the United States or other country; 2) During any period in which the person is required to McCollister Provide for setting aside certain infraction, LB213 Hearing 1/25/19 register under the Sex Offender Registration Act; Judiciary misdemeanor, and felony convictions 3) For any misdemeanor or felony motor vehicle offense under 28-306 (motor vehicle homicide) or the Nebraska Rules of the Road, including reckless and willful reckless driving, driving under the influence of alcohol or drugs, or driving under a revocation period or; 4) Within 2 years after a previous petition denial. Crawford Expands the limited exception for home brewers to Change provisions relating to making and LB235** General Affairs E&R Initial participate in brew competitions to include exhibitions, serving alcoholic liquor by nonlicensed Oppose Blood, Hunt name 2/12/19 festivals and tastings, including those for nonprofit persons as prescribed added fundraisers.

Prepared by Project Extra Mile Last updated: 2/12/2019

Provide property tax relief by eliminating certain sales tax exemptions and increasing other sales and excise taxes such as those levied on alcohol and cigarettes. Taxes on all alcoholic beverages increases to the equivalent of $0.10 per standard drink.  Tax on beer increases from $0.31 to $1.38/gallon Briese; Friesen  Tax on wine increases from $0.95 to $3.51/gallon Revenue Adopt the Remote Seller Sales Tax Collection  Tax on farm wine increases from $0.06 to $2.62/gallon LB314 Brandt, Pansing Act and change revenue and taxation Hearing 2/14/19  Tax on spirits increases from $3.75 to $12.28/gallon Support Brooks, Halloran provisions  Increased revenue from alcohol taxes is diverted to name added the Property Tax Credit Cash Fund  Tax on cigarettes increases from $0.64 to $2.14/pack  Expands taxable services  Expands taxable food to include candy, soft drinks, and bottled water  Defines vaping products as tobacco products for tax purposes. Permits youth ages 15 to 17 to assist law enforcement or private contractors hired by a licensee in conducting tobacco compliance checks. Requires written parental consent, that the youth not consume the tobacco Crawford; Blood Change provisions relating to enforcement of LB322 Hearing 2/1/19 product, written notice from the contractor of the Judiciary certain tobacco restriction provisions compliance check on the outcome of the check to a licensee that refused the sale, and that prevention coalitions shall not subject a business to more than one check every 30 days.  Finds that alternatives to incarceration should be considered in order to reduce the cost to taxpayers, successfully rehabilitate offenders and ensure public safety. Authorize a 24/7 sobriety program permit for LB335* Hansen, M  Establishes a 24/7 sobriety program that requires operating a motor vehicle as a condition of Hearing 2/13/19 Support Judiciary abstinence from alcohol and other drugs for a bail specified period of time during which the individual is tested at least twice per day.  Participation in the program is voluntary by each County Sheriff or his/her designee.

Prepared by Project Extra Mile Last updated: 2/12/2019

 A test in violation of the 24/7 sobriety program will result in:  1st sanction – continuous 12-hour sanction (jail or detoxification center) & release back into program  2nd sanction – 24 hours in jail with release back into the program  3rd to 5th sanction – 48 hours served in jail and participant’s bond reset by the court  6th sanction – removal from the 24/7 sobriety program and participant shall be ineligible for further participation in the program for that case.  Participants may opt for a continuous alcohol monitoring device and be responsible for the cost of said device.  Reasonable fees not to exceed $3 per day shall be established by the sheriff or designated agency to cover costs incurred but may be waived by court if participant has demonstrated inability to pay.  If program participant is arrested for a DUI while in the program, the participant may petition the court to remain if he/she is able to demonstrate 30 consecutive days without sanctions being imposed. Hansen, B; Albrecht, Brewer, Clements, Dorn, Erdman, Friesen, Gragert, Provides an exemption for those 21 years and older to Groene, Halloran, LB378 Change helmet provisions for autocycles, not be required to wear a helmet while on an autocycle, Lowe, Murman, Hearing 2/12/19 Oppose motorcycles, and mopeds motorcycle, or moped. Requires eye protection for Slama, Wishart operators of autocycles, motorcycles and mopeds. Transportation & Telecommunications Linehan, Morfeld name added Wayne Change tax provisions for cigars, cheroots, Establishes the maximum tax on cigars, cheroots, or LB429 Revenue and stogies stogies as 50 cents for each cigar, cheroot, or stogie.

Prepared by Project Extra Mile Last updated: 2/12/2019

McDonnell; Cavanaugh, DeBoer, Requires metropolitan cities to annually report on the Groene, Halloran, collection and use of any occupation tax levied and Hilkemann, Hunt, collected under the biennial budget. Kolowski, Lathrop, Require a city of the metropolitan class to The report must include, but is not limited to: Linehan, Murman, provide an annual budget report relating to LB445 Hearing 2/26/19  Purpose for imposing the tax Slama, Vargas, use of any occupation tax levied and  Amount of tax collected Walz, Wayne, collected  Itemization of how tax was expended or budgeted to Wishart be spent Urban Affairs  Scheduled or projected termination of the tax Erdman, Brewer name added Rebuild the Cash Reserve Fund by eliminating certain sales tax exemptions and increasing other sales and Friesen; Albrecht, excise taxes such as those levied on alcohol and Bostelman, Brandt, cigarettes. Brewer, Briese,  Tax on beer increases from $0.31 to $1.38/gallon Dorn, Erdman, Adopt the School District Property Tax  Tax on wine increases from $0.95 to $3.51/gallon LB497 Gragert, Halloran, Authority Act and change revenue and Hearing 2/14/19  Tax on farm wine increases from $0.06 to $2.62/gallon Support Hughes, Murman taxation provisions  Tax on spirits increases from $3.75 to $12.28/gallon Revenue  Alcohol tax revenue continues to be deposited into the Kolterman name General Fund added  Tax on cigarettes increases from $0.64 to $2.14/pack  Expands taxable services  Terminates grocery tax exemption on 1/1/2020 Prohibit participation in pretrial diversion Allows a person who has been arrested but not yet LB500 Morfeld programs for certain driving under the Hearing 2/13/19 convicted of a first-time, non-aggravated DUI to be Oppose Judiciary influence and driver's license offenses eligible for pretrial diversion. Authorize issuance of ignition interlock LB579 Quick permits to persons who caused serious bodily Hearing 2/13/19 Oppose Judiciary injury while driving under the influence

Prepared by Project Extra Mile Last updated: 2/12/2019

 Decreases Nebraska grown grape requirement from 75% to 60%  Increases the gallonage production requirement from 30,000 to 50,000 gallons for the requirement to use a licensed wholesaler  Establishes “craft wineries” by allowing the sale of wine at the farm winery and 4 (instead of 1) branch LB584** Hilgers Change farm winery provisions and provide outlets in reasonable amounts Hearing 2/11/19 Oppose General Affairs for a promotional special designated license  Permits the farm winery to sell beer or other alcoholic beverages so long as they hold the appropriate license  Establishes a promotional special designated license for craft breweries, microdistilleries, and farm wineries to be used once in a 12-month period for sale of product at festivals, bazaars, picnics, carnivals, and similar functions conducted outside the licensed premise. Establishes a fee of $250.  Defines alcohol impact zones as geographical areas that are adversely affected by chronic public inebriation or illegal activity associated with sales or consumption of alcoholic liquor.  Permits a city council, village board of trustees, or county board to apply to the Nebraska Liquor Control Commission for the creation of an alcohol impact zone. The application must include the following information regarding the request: Provide for alcohol impact zones and provide LB591 Briese 1. A description of the issue and geographical area; duties for the Nebraska Liquor Control Support General Affairs 2. Evidence demonstrating the need for the zone and Commission how chronic public inebriation or illegal activity associated with liquor sales or consumption in the area: . How it contributes to the deterioration of general quality of life, . How it threatens the welfare, health, peace or safety of visitors and occupants of the area, . Demonstrates a pervasive pattern of public intoxication of public consumption of liquor

Prepared by Project Extra Mile Last updated: 2/12/2019

 Requires the city council, village board of trustees, or county board to submit a report to the Commission one year after the creation of the impact zone, and every 5 years thereafter, clearly demonstrating the effectiveness of the conditions or restrictions.  The impact zone shall remain in effect until the Commission repeals the creation of it. Allows the LCC, at its discretion, to require 2 days of Provide additional powers to the Nebraska mandatory closure (licensee may not elect to pay cash LB592 Briese Liquor Control Commission to suspend sales penalty) in addition to any days of suspension within the Support General Affairs of alcoholic liquor four-year lookback period for all violations of the Liquor Control Act. Provide property tax relief by eliminating certain sales tax exemptions and increasing other sales and excise taxes such as those levied on liquor and cigarettes. Crawford  Tax on spirits increases from $3.75 to $8.02/gallon LB614 Revenue Change revenue and taxation provisions  Tax on cigarettes increases from $0.64 to $2.14/pack Support Pansing Brooks  Expands taxable food to include candy, soft drinks, name added and bottled water

AM186 pending LB635** Hilkemann Change membership of the Nebraska Liquor Expands the number of Nebraska Liquor Control Hearing 2/11/19 Support General Affairs Control Commission Commissioners from three to five. Alters spirits taxes to be taxed by proof gallon, rather than by the gallon.

(Proof measures the alcohol content of spirits by LB682 Vargas multiplying the percent of alcohol by volume by two. Provide for taxing spirits as proof gallons Oppose General Affairs Converting U.S. gallons into proof gallons: 1. Multiply U.S. gallons by the percent of alcohol by volume 2. Multiply by two 3. Divide by 100.)

Prepared by Project Extra Mile Last updated: 2/12/2019

 Creates the Behavioral Health Provider Stabilization Fund to be used to leverage federal funds for Change provisions relating to tobacco behavioral health services provider rate Cavanaugh LB710 including sales, crimes, a tax increase, and reimbursement. Revenue distribution of funds  Increases taxes on cigarettes from $0.64 to $2.14 and allocates the additional $1.50 to various public health and health care funds and programs. Decreases alcohol excise taxes as follows:  Tax on beer decreases from $0.31 to $0.25/gallon Vargas; Blood, Change taxes on manufacturers and LB723  Tax on wine decreases from $0.95 to $0.90/gallon Wayne wholesalers under the Nebraska Liquor Oppose  Tax on farm wine decreases from $0.06 to General Affairs Control Act $0.05/gallon  Tax on spirits decreases from $3.75 to $3.50/gallon Hunt Requires charter bus services to be licensed by the Liquor LB734 Provide for licensure of charter bus services General Affairs Control Commission to be able to consume alcohol on Support under the Nebraska Liquor Control Act Briese name added board the bus. Establishes an annual license fee of $75. Beginning January 1, 2020:  Occupation tax or license fees may not be greater than $25 annually Murman; Halloran  Metropolitan cities may not impose an occupation tax Provide restrictions on occupation taxes, Government, or license fee on a profession or business that provides LB736 license fees, and regulation by counties and Military and good or services unless the profession or business was municipalities Veterans Affairs subject to a tax or fee on January 1, 2020  No licensing requirement shall be imposed by a metropolitan city on any profession or business which is subject to state licensing requirements

* Testimony, including submission of written comments, provided by Project Extra Mile ** Oral testimony was provided for bills

Prepared by Project Extra Mile Last updated: 2/12/2019

RESEARCH SUMMARY Date Compiled: February 2019

Key Takeaways from Included Research  An editorial from leading public health researchers states that cheap alcohol has a number of harmful health consequences, including drink-driving, decreases in life expectancy, increases in road traffic injuries, violence, and alcohol poisonings, and long-term increases in deaths from infectious diseases, circulatory diseases, and digestive diseases. The authors advocate for increasing – rather than lessening – the price of alcohol to protect public health.

 An analysis of liver disease related mortality in the U.S. during 1999-2016 found increasing cirrhosis death rates, mostly driven by alcoholic cirrhosis among young adults aged 25-34. The researchers identified increased alcohol taxes as a state level policy instrument which could help reverse this trend.  An analysis of leading liver doctors identifies a comprehensive public health approach to reducing the burden of alcohol-related liver disease, focusing on population-level policy solutions. One especially effective solution is increasing alcohol excise taxes, since they both raise revenue for governments and reduce the associated health, social and economic costs of alcohol-related harm.  A study of 5,755 young Swiss men across jurisdictions found that stricter alcohol policy environments were associated with a global shift towards lighter drinking, consistent with the basic tenet behind the universal prevention approach.

 A study looked at the length of telomeres (compound structures at the end of chromosomes) in relation to drinking patterns among 2,000 subjects. (Shorter telomere length has been found to be a good predictor of a person’s chances of dying.) The researchers found that, using telomere length as a marker of age and health: 1) Binge drinking may reduce telomere length. 2) No benefits were found for alcohol consumption, even in moderation. This adds to the doubt that the moderate use of alcohol has health benefits.

Project Extra Mile 1 February 2019 Omaha World-Herald Tuesday, January 29, 2019

Nebraska's craft brewers object to bills that would increase tax on beer to highest in U.S. Written by Paul Hammel

LINCOLN — Nebraska’s craft brewers are in a froth over two bills that would increase the state’s excise taxes on beer to the highest in the nation. Lawmakers sponsoring the proposals say that the hike would translate into only about 10 cents per mug of beer and that increasing taxes on beer, wine and liquor is part of the solution to lowering property taxes. But a craft brewers group, representing 49 small breweries across the state, say the tax increase could cause layoffs and could end some operations if they are forced to absorb what amounts to a 345 percent increase in the tax. They have been inundating state senators with complaints, which might be the first of many they hear about ideas to raise some other taxes to lower property taxes. “We’re really scared that if this passes, it will stop the growth of this industry,” said Gabby Ayala, the executive director of the Nebraska Craft Brewers Guild. “Other states that have high taxes don’t have as many breweries — it stops people from wanting to invest and expand.” Right now, the brewers complain that Nebraska’s excise tax on beer is the highest among its neighboring states at 31 cents per gallon. If it was increased to $1.38 per gallon, as proposed in two bills, the Cornhusker State would supplant Tennessee as the having the highest beer tax in the nation. But State Sens. of Albion and of Henderson, who have included identical tax hikes on beer, wine and liquor in their proposals, say that the excise tax could be easily passed along to consumers and that they doubt that a 10-cent hike for a brew would stop anyone from purchasing one. The two farmers say the estimated $121 million a year in increased revenue from the excise taxes on alcohol would help offset revenue now raised by local property taxes, which are crushing owners of agricultural property. “We do have a property tax crisis in Nebraska,” Briese said. “The responsible approach to provide immediate and substantial relief is to access other taxes.” “I’m more troubled that we have some of the highest property taxes in the country,” the senator said, adding that the burden of property taxes is forcing some farmers out of business and is making it harder for young couples to buy homes. The growth of small breweries has been an economic success story in the state. Unique beers are being produced in big cities like Omaha and Lincoln, as well as some of the state’s smallest towns, like Ohiowa and Taylor. New satellite locations of the breweries, called taprooms, seem to be opening every month. “These breweries are the only real bright spot in a lot of little towns,” said Caleb Pollard of Scratchtown Brewing Co., which churns out 1,200 gallons of beer a month in Ord, a central Nebraska farm town of 2,100. He said that the excise taxes he pays would rise from $4,800 a year to over $21,000 and that passing along that kind of increase to consumers is more complicated, and damaging, than the senators think.

Project Extra Mile – News Clippings Page 1 of 2 Omaha World-Herald Tuesday, January 29, 2019

Scratchtown, he said, competes with much, much larger breweries in other states that could more easily absorb such a tax increase. “It will severely hurt our ability to be competitive,” Pollard said. The tax increase, he said, would force Scratchtown to reconsider a planned expansion and to look at reducing staff. The brewery now employs five full-time and two part-time workers. Both Pollard and Ayala disputed that the increase would be only 10 cents a drink, saying it could be much higher. Friesen said he’s open for negotiation about the size of the increase in alcohol taxes, but he said the tax on beer, wine and liquor has to be part of the conversation by lawmakers if they are going to provide property tax relief. “Some (ideas) are going to fly and some aren’t,” the senator said. One supporter of the idea is Project Extra Mile, an Omaha-based group that opposes underage and binge drinking. Chris Wagner of Project Extra Mile said that a 10-cent increase pales in comparison to the economic ills caused by alcohol, as measured in less worker productivity and additional costs of law enforcement and health care. Those costs were estimated to be $2.05 per drink, according to a 2010 study by the Centers for Disease Control and Prevention. Wagner said another benefit of the bills would be to reduce alcohol consumption, especially among abusers, due to the higher cost. President Donald Trump, in his 2017 tax cuts, included a federal tax break for small brewers. But Pollard said that break won’t come close to matching the big hit he’d get from the tax hikes proposed in the . At least three key senators on tax issues — of Omaha, Mike Groene of North Platte and of Omaha — said they cannot support such a tax increase. But state lawmakers are just beginning the process of looking at all the property tax relief proposals, and “sin taxes,” like those on liquor, cigarettes and gambling, are sometimes a politically easy place to find new revenue. On Thursday morning, Pollard was in the Rotunda of the State Capitol, trying to persuade other senators to oppose the increased taxes on beer proposed in Legislative Bill 314, Briese’s bill, and LB 497, Friesen’s measure. “I’m a farm kid. I believe that property tax relief is long overdue, and we need some real solutions,” Pollard said. “But you don’t tax another industry to do this.”

Project Extra Mile – News Clippings Page 2 of 2 Omaha World-Herald Monday, January 28, 2019

The 4 major proposals to reduce Nebraska property taxes explained

Written by Paul Hammel

LINCOLN — The ingredients for property tax relief are on the table. So let the sausage making begin. At least four comprehensive proposals, which are described below, and a slew of other ideas have been introduced in the Legislature to reduce property taxes in Nebraska, which rank 11th highest in the country, according to the Washington, D.C.-based Tax Foundation. High property taxes are one of the longest-running complaints in the state, and farmers, squeezed by low prices for crops, and homeowners, watching their property valuations rise, are screaming louder than ever. In the 49-member Nebraska Legislature, there seems to be more momentum to do something this year. “We have the best chance we’ve ever had,” said State Sen. Mike Groene of North Platte. “In the last election, even the urban senators heard that we’ve got to have property tax relief.” Gov. has a package of proposals, as do coalitions of farm and education groups. Overall, there were 141 bills introduced this year (out of 739 total) that mention the words “property tax.” One proposal would hike taxes on liquor and tobacco to increase property tax credits. Another would freeze property taxes for four years. Still another would implement a tax on millionaires. Two of the most comprehensive proposals would dramatically alter the way the state distributes aid to K-12 education, which many believe is the real key to reducing property taxes. After all, the biggest chunk of your property tax bill goes to local schools. State Sen. Lou Ann Linehan of Omaha will be a leading senator in working out a legislative solution, which has often been compared to “making sausage” because it involves a lot of different ingredients and often isn’t such a pretty process. Linehan was recently elected chair of the Legislature’s Revenue Committee, and she says she’s planning to schedule the property tax proposals for public hearings early in the 2019 session. Groene, who has introduced a comprehensive rewrite of the state’s complicated state aid to education formula, also said he will be giving proposals that promise property tax relief an early hearing in the Education Committee, which he chairs. Linehan said she wants lawmakers to begin debating relief proposals by April, which would give them more than two months in the 2019 session to slice and dice the ideas. That will avoid a major gripe of lawmakers from last year — that property tax reduction ideas came up too late in the 2018 session to get anything done. But Linehan, a former top aide of U.S. Sen. Chuck Hagel, also voiced a cautionary note for those expecting a legislative Whopper. Don’t be disappointed if it’s a Whooper Jr., or maybe just a cheeseburger for now. “We didn’t get here in one day. We can’t get everything done in one year,” Linehan said. “It doesn’t mean we aren’t going to make significant progress.” Other senators want action now, including Albion Sen. Tom Briese, who rates his desire for property tax relief an “11” on a 1-to-10 scale. Briese, whose property tax bill fell short a year ago,

Project Extra Mile – News Clippings Page 1 of 3 Omaha World-Herald Monday, January 28, 2019 is back with a proposal backed by a coalition of 22 farm and school organizations, including the powerful Nebraska State Education Association. Nebraska farmers, he said, are facing a crisis. “I really don’t care how property tax relief gets into the hands of Nebraskans, as long as it does,” Briese said. Sen. Brett Lindstrom of Omaha said some ideas are probably already off the table, such as implementing a sales tax on food. But other senators, like Groene, normally a tax-hater, say why not tax foods like soda pop, bottled water and candy if that revenue replaces and lowers property taxes? In the end, it will be a combination of ideas — some real sausage — that will probably be advanced, said Sen. Curt Friesen of Henderson. “No one bill is going to get through,” he said. In the meantime, expect a battle royale in the Legislature among agricultural groups, who are growing tired of lack of action on significant property tax relief; the business sector, whose higher priority is passage of a tax-incentive bill; and groups that levy taxes, like school districts, cities and counties, who worry that any solution could reduce their funding to provide a good education, smooth roads and sturdy bridges. Here’s a primer on the four major plans: Gov. Ricketts’ plan What it would do: Increase state property tax credits by $51 million, giving the owner of a $100,000 home a discount of $106, about $20 more than now; require, through a new law, that at least $275 million a year in such credits are provided (the program now distributes $224 million); propose a constitutional amendment (that would have to be approved by voters) to limit property tax revenue increases by local taxing entities to 3 percent a year. The governor would also work to change the way agricultural property is valued, basing it on its income-producing potential, not on recent sales of property. Who supports it: The governor, who argues that controlling the growth of spending is key to reducing property taxes. Ricketts has said that raising or shifting other taxes is not the way to decrease property taxes, which puts him at odds with the other plans. Sen. Brett Lindstrom of Omaha said he likes that the governor’s ideas are already in his proposed budget. Who opposes it: Farm groups don’t think the plan helps enough, and say the valuation change is nice, but comes too late. Schools, cities and counties that levy property taxes think the constitutional limit is a bad idea. The Nebraskans United plan, Legislative Bill 314 What it would do: A lot of stuff, including eliminating sales tax exemptions on things like candy, soda pop, bottled water, home remodeling, haircuts and auto repairs. State sales taxes would rise by a half cent and taxes on a pack of cigarettes would go up $1.50 a pack. Taxes on beer and alcohol would about triple. Itemized state income tax deductions would go away, except for medical expenses. The bill would generate an estimated $782 million in new revenue, of which $510 million would be used for increased property tax credits for farmers, homeowners and businesses, and would increase aid to schools by about $236 million. Who supports it: Twenty-two farm, education and health groups. Farmers like it because it provides significant and immediate relief. The state teachers union likes it because it maintains funding for K-12 education. The Heart Association has wanted higher cigarette taxes for years.

Project Extra Mile – News Clippings Page 2 of 3 Omaha World-Herald Monday, January 28, 2019

While there are a lot of moving parts, the bill’s sponsor, Sen. Tom Briese of Albion, said he believes that every aspect has the support of a majority of Nebraskans. Who opposes it: The governor, who is opposed to new and increased taxes of any kind. This plan, like others that raise taxes, would need 33 votes to overcome a filibuster and 30 to overcome an almost certain veto by Ricketts. Craft brewers have already been lobbying against the hikes in beer taxes, which they argue will kill a growing industry. The State Chamber of Commerce opposes tax shifts of all kinds. Sen. Groene’s state aid for K-12 reform, LB 695 What would it do: Replace the current state formula for distributing state aid to school (TEEOSA, the Tax Equity and Educational Opportunities Support Act) to deliver more state aid to more schools. Right now, 175 of the state’s 244 school districts get no so-called equalization aid. The proposal would address that by providing every student in the state about $3,500 in foundation aid, Groene estimated. Among the changes would be eliminating an averaging adjustment that generally benefits larger schools. School budget increases could not exceed the consumer price index. The current property tax credit program would help fund the changes, though Groene said that eliminating some sales tax exemptions, like those on junk food, could also help. “We’ve got to have a shift (in taxes), we need relief now,” the senator said, insisting that it can’t be done any other way. Who supports it: A group of 10 conservative-leaning senators worked over the summer to re-craft the state aid formula. Rural schools like it, because the funding would be more reliable and they’d get state aid they don’t get now. Who opposes it: The state teachers union, because the bill slows down spending. And larger school districts will likely oppose it, because it does away with the averaging adjustment. Sen. Friesen’s plan, LB 497 What would it do: Increase state aid to schools, so that eventually every school district in the state gets at least 50 percent of its basic funding from state aid. It would lower the valuation of ag land for purposes of school taxation in steps from the current 75 percent to eventually 40 percent. The proposal would also limit spending increases by school districts. Unlike a similar bill he introduced last year, LB 497 includes $523 million in new revenue, by doing away with sales tax exemptions like groceries, house cleaning and vehicle repairs. There are also steep increases in taxes on tobacco, beer, wine and liquor. Friesen emphasized he’s willing to consider other ideas. Who supports it: A coalition of agricultural groups called Ag Leaders, which includes the Farm Bureau and groups representing growers of corn, soybeans and other crops. Fair Nebraska, a farm group seeking property tax relief, backed a similar bill last year. Who opposes it: Any group that gets a tax increase, like the craft brewers and smokers. The State Chamber opposes tax shifts, as does Ricketts. A bunch of organizations that oppose taxes on food, as well as a state senator known for blocking taxes on groceries, of Omaha.

Project Extra Mile – News Clippings Page 3 of 3 KOLN Saturday, February 2, 2019

Nebraska craft brewers fight against beer tax proposals

Written by Associated Press

LINCOLN, Neb. -- Nebraska’s craft brewers are in a froth over two bills that would increase the state’s excise taxes on beer to the highest in the nation. Lawmakers sponsoring the proposals say that the hike would translate into only about 10 cents per mug of beer and that increasing taxes on beer, wine and liquor is part of the solution to lowering property taxes. But a craft brewers group, representing 49 small breweries across the state, says the tax increase could cause layoffs and end some operations if they are forced to absorb what amounts to a 345 percent increase in the tax. They have been inundating state senators with complaints, which might be the first of many they hear about ideas to raise some other taxes to lower property taxes, the Omaha World-Herald reported. “We’re really scared that if this passes, it will stop the growth of this industry,” said Gabby Ayala, the executive director of the Nebraska Craft Brewers Guild. “Other states that have high taxes don’t have as many breweries — it stops people from wanting to invest and expand.” Right now, the brewers complain that Nebraska’s excise tax on beer is the highest among its neighboring states at 31 cents per gallon. If it was increased to $1.38 per gallon, as proposed in two bills, the Cornhusker State would supplant Tennessee as the having the highest beer tax in the nation. But state Sens. Tom Briese of Albion and Curt Friesen of Henderson, who have included identical tax hikes on beer, wine and liquor in their proposals, said that the excise tax could be easily passed along to consumers and that they doubt that a 10-cent hike for a brew would stop anyone from purchasing one. The two farmers said the estimated $121 million a year in increased revenue from the excise taxes on alcohol would help offset revenue now raised by local property taxes, which are crushing owners of agricultural property. “We do have a property tax crisis in Nebraska,” Briese said. “The responsible approach to provide immediate and substantial relief is to access other taxes.” “I’m more troubled that we have some of the highest property taxes in the country,” the senator said, adding that the burden of property taxes is forcing some farmers out of business and is making it harder for young couples to buy homes. The growth of small breweries has been an economic success story in the state. Unique beers are being produced in big cities like Omaha and Lincoln, as well as some of the state’s smallest towns, like Ohiowa and Taylor. New satellite locations of the breweries, called taprooms, seem to be opening every month. “These breweries are the only real bright spot in a lot of little towns,” said Caleb Pollard of Scratchtown Brewing Co., which churns out 1,200 gallons of beer a month in Ord, a central Nebraska farm town of 2,100.

Project Extra Mile – News Clippings Page 1 of 2 KOLN Saturday, February 2, 2019

He said that the excise taxes he pays would rise from $4,800 a year to over $21,000 and that passing along that kind of increase to consumers is more complicated, and damaging, than the senators think. Scratchtown, he said, competes with much, much larger breweries in other states that could more easily absorb such a tax increase. “It will severely hurt our ability to be competitive,” Pollard said. The tax increase, he said, would force Scratchtown to reconsider a planned expansion and to look at reducing staff. The brewery now employs five full-time and two part-time workers. Both Pollard and Ayala disputed that the increase would be only 10 cents a drink, saying it could be much higher. Friesen said he’s open for negotiation about the size of the increase in alcohol taxes, but he said the tax on beer, wine and liquor has to be part of the conversation by lawmakers if they are going to provide property tax relief. “Some (ideas) are going to fly and some aren’t,” the senator said. One supporter of the idea is Project Extra Mile, an Omaha-based group that opposes underage and binge drinking. Chris Wagner of Project Extra Mile said that a 10-cent increase pales in comparison to the economic ills caused by alcohol, as measured in less worker productivity and additional costs of law enforcement and health care. Those costs were estimated to be $2.05 per drink, according to a 2010 study by the Centers for Disease Control and Prevention. Wagner said another benefit of the bills would be to reduce alcohol consumption, especially among abusers, due to the higher cost. President Donald Trump, in his 2017 tax cuts, included a federal tax break for small brewers. But Pollard said that break won’t come close to matching the big hit he’d get from the tax hikes proposed in the Nebraska Legislature. At least three key senators on tax issues — Lou Ann Linehan of Omaha, Mike Groene of North Platte and Brett Lindstrom of Omaha — said they cannot support such a tax increase. But state lawmakers are just beginning the process of looking at all the property tax relief proposals, and “sin taxes,” like those on liquor, cigarettes and gambling, are sometimes a politically easy place to find new revenue. On a recent Thursday, Pollard was in the Rotunda of the State Capitol, trying to persuade other senators to oppose the increased taxes on beer proposed in Legislative Bill 314, Briese’s bill, and LB 497, Friesen’s measure. “I’m a farm kid. I believe that property tax relief is long overdue, and we need some real solutions,” Pollard said. “But you don’t tax another industry to do this.”

Project Extra Mile – News Clippings Page 2 of 2 NebraskaTV Thursday, January 24, 2019

$15,000 in damage at crash into Grand Island church

Written by KHGI

GRAND ISLAND, Neb. — A Grand Island church is dealing with thousands of dollars in damage after police say a man crashed a car through it early Thursday morning. An accident report lists the damage to the exterior wall at Misión Cristina Rosa Saron (Christian Mission Rosa Saron) at around $15,000, and the vehicle was totaled. The Grand Island Police Department said Efrain Sebastian, 27, of Grand Island fled the scene of the crash at 1520 Ruby Ave. and walked home. Sebastian was later taken to CHI Health St. Francis for a severe cut to his head at around 2 a.m. Police said he was drunk and combative while receiving treatment, and kicked his shoe at an intern who was riding along with officers. After being treated, he was arrested on suspicion of DUI second offense, leaving the scene of a personal injury accident, attempted third-degree assault, driving during suspension, refusal to submit post arrest, and refusal to submit to a preliminary breath test.

Project Extra Mile – News Clippings Page 1 of 1 Lincoln Journal Star Saturday, February 2, 2019

Omaha woman sentenced for crash that killed motorcyclist

Written by Associated Press

OMAHA — A 25-year-old Omaha woman has been sentenced to 18 to 20 years in prison for killing a motorcyclist in a drunken crash. Mederika Scott was sentenced Friday. She had pleaded no contest to motor vehicle homicide DUI in November in exchange for an unrelated case being dropped. In addition to her prison term, her driver's license will also be revoked for 15 years. Officers say the SUV Scott was driving Aug. 16 struck two vehicles before crossing the raised median, rolling and hitting a motorcycle operated by Joseph Dillow of Omaha. Dillow, 46, died at the scene.

Project Extra Mile – News Clippings Page 1 of 1