UNICAMERAL UPDATE

News published daily at Update.Legislature.ne.gov Vol. 42, Issue 19 / May 13 - 16, 2019 New business tax incentive program debated awmakers debated Under the new pro- a bill May 15 that gram, businesses would ap- L would create a new ply to the state Department business tax incentive of Economic Development program to replace the and enter into an agree- Advantage Act. ment with the department The application period for if they meet the program’s that program is set to end requirements. next year. Qualifying businesses Sen. of would receive a varying Seward, sponsor of LB720, combination of incen- said the new program, tives—wage credits, income called the ImagiNE Ne- tax credits, sales and use tax braska Act, would be sim- refunds and exemptions, pler and more transparent personal property tax ex- than the Nebraska Advan- emptions or real property Sen. Mark Kolterman said businesses would have to maintain required tage Act, focus on high- levels of employment and investment in order to receive incentives under tax refunds—based on their wage jobs and improve the the new program. level of capital investment state’s ability to attract new business climate that helps grow and strengthen and the number of employees they investment. Nebraska’s economy with new jobs hire at a minimum qualifying wage. “The overall tax burden in Ne- and new investment.” The incentives would be limited to braska is too high for citizens, and the A pending Revenue Committee certain business activities, including need to grow our state has never been amendment, which includes provi- manufacturing; certain testing labo- more important,” he said. “In order sions that Kolterman said are meant ratories; rail and truck transportation; to find resources to provide this tax to address concerns about the original relief, we need a competitive business proposal, would replace the bill. (continued page 2) State budget package clears second round awmakers gave second-round approval May 15 to the nical changes to the bill and would add $4 million in mainline budget bill following a successful cloture general funds to the Nebraska secretary of state’s office to L vote. Seven additional bills included in the state’s replace Americans with Disabilities Act compliant voting $9.3 billion budget package advanced to the final round equipment. of consideration May 14. The amendment also would incorporate provisions of LB294, introduced by Speaker Jim Bolz’s LB181, which she said were inadvertently left out Scheer of Norfolk at the request of of the committee amendment adopted during general file the governor, is the mainline budget debate. bill and would fund state government The provisions would use $87,500 from the Nursing for the next two fiscal years. Select Facility Penalty Cash Fund to pay for a study to examine file debate focused on an amendment demographic trends, project current and future service brought by Lincoln Sen. , vice Sen. Jim Scheer needs and provide recommendations for continued state- chairperson of the Appropriations Committee. The Bolz amendment would make a number of tech- (continued page 3)

INSIDE: Tax credits for private school scholarship donations stall • Legalization of medical marijuana stalls May 13 - 16, 2019 New business tax incentive program debated (continued from front page) insurance carriers; wired and wireless an amendment that would include potential loss of tax incentives could telecommunications services; telemar- provisions of her deter companies from locating here. keting bureaus; data processing and LB527, which “If there’s anything that businesses hosting services; computer facilities would create a pro- want, it is certainty,” Williams said. management services; and warehous- gram to provide Omaha Sen. John McCollister also ing and storage. job training grants supported LB720, saying Nebraska is Agriculture, mining, construction, to employers. Bolz engaged in an “incentive arms race” utilities and public administration said any discus- with other states. He said the propos- would not qualify for incentives. sion of business Sen. Kate Bolz al’s projected cost due to lost revenue Under the amendment, Kolterman tax incentives should include workforce does not account for the economic said, businesses would be required to development because a lack of skilled benefits of new jobs. offer health insurance to each new workers is holding back the state’s McCollister said a mechanism he employee. economic growth. proposed to help control the pro- The amendment also includes pro- Bolz also introduced an amend- gram’s cost is included in the com- visions of LB605, ment that she said would cap the pro- mittee amendment. It would require introduced by posed incentives to avoid the volatile the speaker of the Legislature, the Omaha Sen. Brett jumps in lost revenue caused by the chairpersons of the Appropriations, Lindstrom, which state’s current tax incentive programs. Revenue and Legislative Performance would create a tax “I agree that we need a tax incentive Audit committees and the state tax credit for compa- program,” she said. “But I think—just commissioner to meet each fall to nies that produce like any other aspect of our budget— review the most recently available data sustainable mate- Sen. we should establish a priority and a on the program. rials and renewable chemicals using parameter for what that investment Sen. of Bellevue also agricultural products. looks like.” supported the proposal. The com- Kolterman said the ImagiNE Ne- Sen. Matt Williams of Gothenburg mittee amendment would allow busi- braska Act would reduce state revenue supported the committee amend- nesses to use incentives they earn to by an average of approximately $106 ment. He said the Legislature should repay job training loans, she said, and million per year over 10 years. not wait until next year to replace the Lincoln Sen. Kate Bolz introduced Nebraska Advantage Act because the (continued next page) UNICAMERAL UPDATE The Unicameral Update is a free, weekly newsletter published during the legislative session. It is produced by the Clerk of the Legislature’s Office through the Unicameral Information Office. For print subscriptions, call 402-471-2788 or email [email protected]. Visit us online at Update.Legislature.ne.gov, twitter.com/UnicamUpdate and facebook.com/UnicameralUpdate.

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PAGE 2 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 13 - 16, 2019

it would make tax incentives’ impact and significant” property tax relief forgone approximately $1.5 billion in on sales and use tax collections clearer this session. revenue under existing tax incentive to cities and counties than it is under “Without property tax relief, busi- programs without seeing a commen- the Nebraska Advantage Act. ness incentives need to stall,” he said. surate increase in economic growth. Crawford said capping incentives as “Nebraskans need property tax relief a Friesen supported the Bolz amend- Bolz proposed would be difficult be- whole lot worse than businesses need ment, saying the state should focus on cause the amount a business receives this incentive package.” job training rather than job creation. depends on its performance and is not Sen. of North Platte “Our unemployment is the lowest set in advance. However, the required questioned why the Legislature would it’s been in years,” he said. “For some annual review of program data would approve a new business tax incen- reason, we want to incentivize the make it easier for the Legislature to tive program before addressing high creation of new jobs.” adjust the program’s cost, something property taxes. He said the Nebraska After three hours of debate, the senators have been reluctant to do Advantage Act mainly has helped Legislature recessed before voting on with the Nebraska Advantage Act, Lincoln and Omaha, not the state’s the committee amendment, the Bolz she said. rural areas, where low commodity amendment or LB720. Per a practice “We’re going to have to have a dif- prices, population loss and property implemented by Speaker Jim Scheer, ferent culture with [LB]720—that it’s taxes are the main concerns. the sponsor of a bill that is facing a acceptable and appropriate to change “Quit ignoring the real problem in potential filibuster must demonstrate it year to year,” Crawford said. this state,” Groene said. “It’s property sufficient support for a cloture motion Albion Sen. said he taxes.” before the measure will be scheduled would not support the proposal unless Sen. of Henderson for additional debate. g the Legislature also passes “substantial opposed the bill. He said the state has

State budget package clears second round (continued from front page) wide access to long-term care services, including nursing additional 33 were placed under receivership in 2018. facility care, for Medicaid recipients. “I think we need to be thoughtful and strategic in how Bolz said 33 skilled nursing and long-term care facili- we’re supporting our nursing facilities as our population ties in Nebraska closed between 2015 and 2018, and an ages,” she said. Omaha Sen. , chair- person of the Health and Human Ser- vices Committee, supported the Bolz amendment. She said it’s important to examine the state’s long-term care situation both from an administrative perspective and from the perspective of demographic and workforce challenges. “There is a discrete difference be- tween the two,” Howard said. “[The amendment] really gives us the op- portunity … to make sure that we, as policymakers, fully understand what is going on in our long-term care space and what is happening to that very, very vulnerable population.” Sen. Matt Williams of Gothenburg Sen. Kate Bolz said a comprehensive study of long-term care sustainability in Nebraska should be part of the state’s budget package. (continued page 4)

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State budget package clears second round (continued from page 3) also supported the amendment, saying all of the long-term make certain fund transfers. care facilities in his district are “hanging on by a thread.” The amendment would require each county treasurer He said the recent closing of two facilities is indicative of to determine the percentage of property tax credits that a “perfect storm” in rural Nebraska of an aging population are provided to Nebraska residents, or organizations that coupled with a lack of health care providers. are located in Nebraska, and the percentage of credits that “I got to see firsthand what it looks like when people are paid to nonresidents. don’t get paid, yet they still have people to take care of,” Hilkemann said that possibly as much as 40 percent of Williams said. payments from the state’s Property Tax Credit Cash Fund Elmwood Sen. Robert Clements opposed the portion may go to nonresidents of Nebraska, but that the informa- of the amendment containing provisions of LB181, which tion currently isn’t compiled. he filed an amendment to strike. “It’s about transparency, folks; let’s find out,” he said. “The Department of Health and Human Services testi- “Maybe this will open up new ideas for us, but we won’t fied in opposition to LB181, mainly because they said the know what we don’t know until we ask the question.” department already completes the long-term care redesign A report based on ZIP code data would be made to the study [so] the amendment is really not necessary,” Clements Legislature and the state Department of Revenue by Dec. said. “It places additional administrative mandates and 31, 2020. requirements on the [department].” The Hilkemann amendment was adopted on a 25-17 Sen. of Gretna spoke in support of vote, but Sen. Mike Moser of Columbus immediately of- other portions of the Bolz amendment, specifically those fered an amendment to strike it from the bill. that would provide funding for ADA compliant voting Moser said tax information could be mailed to attor- machines. neys—or to only one family member if property is owned “We have an election technology crisis in this state,” jointly—so that ZIP codes associated with tax statements La Grone said, noting that Nebraska’s current 17-year-old likely would not be an accurate representation of who is election technology has a 10-year expected life span. In ad- obtaining property tax credits from the state. dition, he said, allowing the secretary of state to purchase In addition, he said, there is no plan in place for what the expensive machines in bulk would result in cost savings. to do with the tax credit information once it is gathered. After extended debate May 14, Sen. , The Moser amendment was adopted 25-14, and LB298 chairperson of the Appropriations Committee, offered was advanced to final reading by voice vote. a motion to invoke cloture. A successful cloture motion Also advanced to final reading on voice votes were: ends debate and forces a vote on the bill and any pending • LB295, which would provide for the $12,000 annual amendments. The motion failed on a vote of 31-14. Thirty- salaries of Nebraska’s 49 state senators; three votes were required. • LB296, which would fund salaries and benefits for A second attempt at cloture after additional debate May judges and constitutional officers; 15 was successful. After voting 47-2 to invoke cloture, law- • LB297, which would appropriate funds for reaf- makers rejected the Clements amendment 21-28. Twenty- firmed and new capital construction projects; five votes were needed. • LB299, which would make a $54.7 million transfer The Bolz amendment then was adopted 40-7 and LB294 from the state’s Cash Reserve Fund to the Nebraska advanced to final reading, also on a 40-7 vote. Capital Construction Fund to cover costs for two additional high security housing units—384 beds—for Other provisions the Department of Correctional Services; and • LB464, which would provide for payment of claims The other components of the budget package advanced against the state. to the final round of debate May 14. Finally, LB293, which would adjust appropriations for Omaha Sen. offered an amendment the current fiscal year, was advanced on a 45-1 vote follow- to LB298, a bill that would repeal and create funds and ing a successful cloture motion. g

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Lincoln Sen. , also are in- losses of previous players; cluded in the bill. • the game can be controlled by These update and a source other than the person change references playing the game; Debt collection bill for to the state Depart- • the success of a player is deter- workers’ comp claims passed ment of Admin- mined by chance and cannot be istrative Services’ altered by the player’s actions; Lawmakers approved a bill May 13 risk manager and • game features that are not vis- meant to assist individuals facing col- make changes to al- Sen. Mike Hilgers ible, or known by the players, lection of certain medical debts. low for a more efficient claims process. can affect the outcome; or LB418, sponsored by Omaha Sen. LB418 passed on a 35-0 vote. • a player’s success is impacted by Machaela Cava- skills no reasonable player could naugh, prohib- exercise. its collection of The bill would require distributors a debt incurred of such games to pay a $500 applica- for treatment of tion fee, submit a sample game to the Nebraska Department of Revenue, a work-related Mechanical amusement regu- provide evidence that the device is a injury while the lation bill amended, advanced matter is pend- Sen. game of skill and provide an affidavit ing in the Nebraska Workers’ Com- The Nebraska Department of Rev- to the tax commissioner that no func- pensation Court. enue would determine in advance of tional changes would be made to the Under the bill, written notice that distribution whether certain mechani- device’s hardware or software without the matter is pending will be provided cal amusement devices are games of the commissioner’s approval after the to collection agencies seeking to col- skill or chance under a bill advanced license is granted. lect on a debt. A second notice will from select file May 13. Possession of an illegal device be sent within 30 days of the initial LB538, introduced by Omaha would be a Class II misdemeanor notice, including specific details of Sen. Steve Lath- under the bill. the debt. rop, would add LB538 also would require game The state attorney general is autho- electronic video owners to pay an annual $250 licen- rized to investigate collection agencies games of skill to sure fee per device. The bill would that do not comply with the bill’s the definition of a not apply to pickle cards, lotteries or provisions. mechanical amuse- bingo games. The measure includes provisions ment device and Lathrop offered an amendment of LB360, originally sponsored by require the depart- Sen. Steve Lathrop during select file debate that would: Lincoln Sen. . These al- ment to determine if such devices are • allow owners of mechanical low the Nebraska games of skill or chance. amusement devices to continue Workers’ Compen- “This bill is about trying to provide operating them while the de- sation Court to a practical enforcement mechanism,” partment reviews their devices; appoint a power Lathrop said. “We’re going to elimi- • establish 19 as the legal age to of attorney for a nate those machines that are essen- play such devices; and claim, settlement tially slot machines.” • bar use of a credit or debit card or disbursement of Under current law, games of chance for payment. money for nonresi- Sen. Matt Hansen other than the state lottery and certain Lathrop said Sen. of dent alien dependents if the court be- charitable enterprises are illegal. A Thurston was instrumental in drafting lieves the dependents are better served device would be considered a game the amendment, adopted 32-1, which by someone other than the consular of chance under LB538 if one of the addressed concerns she expressed dur- officer of their resident country, or if following applies: ing general file debate. no consular officer exists. • a player’s chances of winning Albrecht said she opposes gambling Provisions of LB178, sponsored by are affected by the wins and in all forms, but wanted to regulate

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 5 May 13 - 16, 2019 gaming devices as much as possible. four the number of branch outlets allow local wineries to become “super “When you pay money out, that’s that allow sampling and sale of a farm bars” that would compete unfairly what gives me heartburn. I don’t want winery’s product. with other alcohol vendors. young children starting sooner than Hilgers said the amendment would Slama’s amendment failed on a they need to and I don’t want to see encourage Nebraska wineries to expand. vote of 11-21. more machines than there have to “As these entrepreneurs keep grow- Following adoption of the commit- be,” she said. ing, they use more grapes and it be- tee amendment, LB584 advanced to A second Lathrop amendment, comes harder and harder to reach the select file on a vote of 38-0. adopted 42-0, would set a maximum 75-percent threshold,” Hilgers said. of four devices for establishments up An amendment offered by Peru to 4,000 square feet in size. Larger Sen. would have allowed establishments would be allowed one farm wineries to sell beer and other additional device per 1,000 square feet alcoholic beverages if the winery owner up to a maximum of 15 devices. also holds an appropriate retail license. Following adoption of the amend- Under current law, Slama said, Eminent domain bill approved ments, LB538 was advanced to final Nebraska wineries must apply for a reading 40-0. one-day Special Designated License Landowners have the ability to to sell alcohol other than wine when contest the use of eminent domain by Bill amended to change farm they host events. renewable energy developers under a winery definition “If you’ve got a college graduation bill passed May 13. party scheduled for Friday, [a] wedding As introduced by Gordon Sen. The definition of a farm winery scheduled for Saturday and a family , LB155 would have pro- would change under a bill advanced reunion scheduled for Sunday, they’d hibited a private to select file May 15. have to apply for a separate SDL for each entity from using LB592, as originally introduced by of those days.” She said. “This leads to eminent domain Sen. Tom Briese stacks upon stacks of paperwork.” to provide access of Albion, would Sen. Curt Friesen of Henderson to build transmis- have addressed the supported the Slama amendment, sion lines or other state Liquor Con- saying it would encourage economic infrastructure re- trol Commission’s development in small towns. lated to a privately Sen. Tom Brewer ability to close es- “They’re not going to put anybody developed wind energy project. tablishments due else out of business. They’re not going Currently, state law authorizes to violations of the Sen. Tom Briese to damage the distributors,” Friesen the use of eminent domain in those Liquor Control Act. said. “All they want is the ability for situations because it is considered a A General Affairs Committee someone to come in and have a beer public use. amendment, adopted 35-0, stripped instead of a glass of wine.” The bill was amended on general those provisions and replaced them Briese opposed the amendment, file to define the public use aspect of with portions of LB584, introduced by which he said could erode Nebraska’s such exercise of eminent domain as a Sen. Mike Hilgers of Lincoln. three-tiered liquor control system that “rebuttable presumption”—meaning The amended separates producers, distributors and that it may be challenged in court by bill would reduce retailers. an impacted landowner. from 75 to 60 the Sen. of Bellevue said Lawmakers passed LB155 on a percentage of fruit she opposed Slama’s amendment 44-0 vote. or other suitable because it would allow Nebraska win- agricultural prod- eries to sell other alcohol while non- Omnibus election bill passed uct grown in Ne- Nebraska wineries could not do the braska required to Sen. Mike Hilgers same, potentially leading to lawsuits. A bill containing several election meet the definition of a farm winery. Sen. John Lowe of Kearney also op- measures was passed by lawmakers It also would increase from one to posed the amendment, saying it would May 13.

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Sen. Jim Scheer of Norfolk in- braska Accountability and Dis- troduced LB411, closure Act from $200 to $500; which allows coun- • LB342, introduced by Gretna ty boards to place Sen. Andrew a question on the La Grone, ballot regarding a which moves Community-based disability change in county oversight of services plan required board member- metropoli- Sen. Jim Scheer ship. The bill ap- tan utilities Nebraska is required to create a plies to counties with a population of district elec- Sen. Andrew La Grone statewide plan to provide disability less than 400,000 people that are not tions from services under a bill passed May 13. under township organization. county election commissioners LB570, introduced by Sen. Lynne Under the bill, a qualifying county to the Nebraska secretary of Walz of Fremont, board may adopt a resolution by state’s office; requires the state majority vote to allow voters to alter • LB522, introduced by Elkhorn Department of the number of commissioners on the Sen. , which Health and Hu- board. Currently, such a question only authorizes man Services to can be placed on the ballot by a peti- the Doug- develop what is tion signed by at least five percent of las County known as an “Olm- registered voters in the county. Board to stead Plan,” which Sen. Also included were provisions of appoint a is a plan to provide services to quali- 10 other bills: department fied individuals with disabilities in • LB98, introduced by Sen. Jus- director and Sen. Lou Ann Linehan the most integrated community-based tin Wayne have final settings. of Omaha, say in personnel matters; DHHS is required to develop the which chang- • LB574, introduced by Brewer, plan with the University of Nebraska, es the num- which allows the members of the Equal Opportunity Commission ber of signa- a metropolitan utilities district and the state departments of Cor- tures needed to set the date of monthly rectional Services, Economic Devel- by a candi- meetings; opment, Labor, Transportation and Sen. Justin Wayne date to ap- • LB608, introduced by La Education. The plan will be completed pear on a statewide and county Grone, which removes outdated by Dec. 15, 2019. and other political subdivision language regarding electronic The bill also adds the Commission partisan ballots; voting and allows ballots to be for the Deaf and Hard of Hearing, the • LB101, also introduced by counted at polling places; Commission for the Blind and Visu- Wayne, which changes provi- • LB618, introduced by Lincoln ally Impaired and the Public Service sions of the Nebraska Political Sen. Mike Hilgers, which rede- Commission to the Olmstead Plan Accountability and Disclosure fines electioneering; and stakeholder advisory committee. Act relating to a potential con- • LB733, introduced by Sen. LB570 requires DHHS to work flict of interest by an elected Rick Kolows- with an independent consultant to office holder of certain cities ki of Omaha, assist with continued analysis and or villages or a school district; which ex- revision of the Olmstead Plan. This • LB246, introduced by Gordon pands access analysis will be provided in a report Sen. Tom Brewer, which makes to the polls to the Legislature by Dec. 15, 2021, technical changes to several elec- for voters and every three years going forward. tion procedures; with disabili- The bill passed 44-0 and takes ef- • LB280, also introduced by ties. Sen. fect immediately. Brewer, which increases the LB411 passed on a 46-0 vote and maximum fine under the Ne- takes effect immediately.

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 7 May 13 - 16, 2019

Extension of public counsel older teenagers and young adults who geographic spectrums, she said, they all authority amended, advanced are at or near the end of their time in share a common desire to help those foster care. struggling with chronic illnesses who Senators amended and advanced a The amendment would expand could be helped by medical cannabis. bill May 13 that would extend a time the program to include young adults “I introduced LB110 on behalf of the frame for the authority of the deputy who age out of the state’s juvenile countless Nebraskans who have reached public counsel for institutions. justice system. It also would limit par- out to me in favor of cannabis reform,” The public counsel—also known as ticipation in the program to Nebraska Wishart said. “These are Nebraskans the state Ombudsman’s Office—is an residents and eliminate benefits to ... who all share a common desire for independent office that handles citi- recipients who already are receiv- change because they or family and zen complaints regarding the actions ing residential funding through the friends are struggling with a chronic of administrative agencies of Nebraska home and community-based waiver illness and desperately want access to state government. program. cannabis for medicinal purposes.” Currently, the authority of the depu- Bolz said the change would “right- A pending Judiciary Committee ty public counsel for institutions extends size” the program to make the best use amendment would replace the original to individuals who have been patients at of state resources without increasing bill. As amended, it would create a new a state-owned or state-operated regional expenditures. state regulatory agency—the Cannabis center within the “This is a very narrow population Enforcement Department—that would prior 12 months. of young people who don’t otherwise be tasked with reviewing and approving LB600, intro- have a home to go to when they age out applications for medical cannabis use. duced by Fremont of the juvenile justice system and have To qualify for a medical cannabis Sen. Lynne Walz, that experience with the child welfare registration card under the bill, a per- would extend that system in their history,” she said. son must receive written certification time frame to 24 Following adoption of the amend- from a physician, nurse practitioner months. Sen. Lynne Walz ment 28-3, senators advanced LB600 or physician’s assistant with whom The bill was amended on general to final reading by voice vote. they have an established, bonafide file to include pro- relationship. visions of Lincoln The practitioner evaluating a Sen. Kate Bolz’s person would be required to perform LB330. The provi- a physical exam, including an assess- sions would elimi- ment of potential alcohol or substance nate the July 2019 abuse issues, as well as personal or Legalization of medical termination date family history of schizophrenia or cannabis stalls for the Nebraska Sen. Kate Bolz psychotic disorders. Applicants with Children’s Commission. A bill that would approve certain terminal illnesses would be subject to Under the amendment, the com- forms of cannabis for medical use a basic physical exam only. mission would become a permanent stalled on general file May 15. The certification would include a forum for collaboration among state, LB110, intro- patient’s qualifying diagnosis, which local, community, public and private duced by Lincoln could include: stakeholders in child welfare and ju- Sen. Anna Wis- • cancer; venile justice programs and services. hart, would create • glaucoma; It also would streamline the commis- a framework for • ALS; sion’s duties and shift its administra- legalizing medical • HIV or AIDS; tion to the Legislature. cannabis use in • epileptic seizures; During select file debate, Bolz of- Nebraska. Sen. • Tourette’s syndrome; fered an amendment to add provisions Wishart said a 2017 study shows • Hepatitis C; of her LB332, which would revise that over 70 percent of Nebraskans sup- • Crohn’s disease; the Youth Bridge to Independence port legalizing medical cannabis. While • Huntington’s or Parkinson’s Program—a system of supports for supporters span the political, age and disease;

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• PTSD, when at least one other coln spoke in support of the bill. Sena- pending amendments. Per a practice treatment has failed; tors should consider the treatment implemented by Speaker Jim Scheer, • autism with frequent or seri- needs of others and not simply their the sponsor of a bill that is facing a ous self-injurious or aggressive own experience, she said. potential filibuster must demonstrate behavior; “You and I might not need it, but sufficient support for a cloture motion • terminal illness with less than the parents who come here with their before the measure will be scheduled one year to live; or children who have helmets on their for additional debate. • serious medical conditions caus- heads so that during seizures they ing severe nausea or cachexia. didn’t get brain injuries need it,” Appeals of certain motions Registered medical cannabis users Pansing Brooks said. approved could purchase cannabis through Also supporting the bill was Lin- regulated in-state dispensaries or home coln Sen. . He cau- A bill allowing the immediate delivery from out-of-state suppliers. tioned senators that LB110 was the appeal of certain legal motions was Patients would be limited to no more Legislature’s last opportunity to ap- passed by the Legislature May 13. than 2.5 ounces of cannabis or canna- prove and regulate medical cannabis LB179, sponsored by Lincoln bis products containing no more than before the issue goes to 2020 general Sen. Mike Hilgers, makes an order 2,000 mg of THC. The department election voters through an initiative denying a motion could grant waivers to patients who petition drive. for summary judg- demonstrate a greater medical need. “We are making criminals out ment eligible for LB110 would prohibit any regis- of people who are simply trying to immediate appeal, tered user of medical cannabis from seek treatment,” he said. “LB110 is if the motion is driving, operating a boat, train or eminently reasonable and one of the based on an asser- aircraft, or undertaking any task that [narrowest] bills in terms of construc- tion of sovereign would be negligent or constitute mal- tion for this type of [program].” immunity or the Sen. Mike Hilgers practice while under the influence of Lincoln Sen. spoke immunity of a government official. cannabis. They also could not work on in opposition to the bill, saying state The bill passed on a 43-0 vote. transportation property, equipment senators should not be responsible for or facilities. approving a drug. Bill passed to prohibit minor The committee amendment would “This is the job of a scientist, not consent defense prohibit use of cannabis or a cannabis a citizen legislator,” she said. “There product in any vehicle, whether the is so much we do not know about Senators passed a bill May 13 that patient is the driver or a passenger. this drug.” provides stronger sexual assault protec- Smoking marijuana also would be As a former member of the Judi- tions for minors. prohibited under the amended bill. ciary Committee, Gothenburg Sen. LB478, introduced by Omaha Medical cannabis would not be Matt Williams said he heard from Sen. , makes a victim’s covered by Medicaid and private many constituents suffering from consent inadmis- insurers would not be required to chronic illnesses who support medical sible in any civil cover its costs. Any registered user who cannabis. case alleging sexual sells their medical cannabis would “I have great empathy for them, but penetration when be banned from the program and be when I think about creating public a perpetrator is 19 subject to criminal prosecution. policy ... and the direction we take our or older and the Bellevue Sen. Sue Crawford intro- state in legalizing a Schedule I drug, victim is younger duced an amendment that would pro- I can’t go there,” he said. “Legalizing than 16. Sen. Tony Vargas hibit edible cannabis products under medical marijuana is the first step tak- It also makes inadmissible a vic- LB110. She said she was concerned ing us down a path that I’m not willing tim’s consent in a civil case alleging that a child might mistakenly ingest to go [down].” sexual contact when a perpetrator is medical cannabis if it were in the form After three hours of debate, the 19 or older and the victim is younger of a brownie or gummy candy. Legislature adjourned for the day than 15. Sen. of Lin- before voting on the bill or the The bill passed on a 46-0 vote.

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 9 May 13 - 16, 2019

Human trafficking statute Pansing Brooks, would allow a traf- “In my district, there have been of limitation bill expanded, ficking victim arrests for human trafficking of a advanced to recover dam- child,” Bostelman said. “If you don’t ages for physi- think human trafficking exists in the A bill that would extend and cal and mental state or happens in your community, eliminate certain statutes of limita- pain and suffer- you’re wrong.” tion for labor and sex trafficking was ing, and the rea- Lincoln Sen. Anna Wishart intro- amended and advanced from general sonable value duced an amendment, adopted 37-0, file May 16. of medical care Sen. Patty Pansing Brooks which added portions of her LB479 LB519, introduced by Peru Sen. and supplies, transportation, housing, into the bill. As Julie Slama, would child care, lost wages and potential amended, these eliminate a statute relocation costs. would prohibit a of limitation for The amendment also included law enforcement creation of child portions of LB516, also introduced officer from us- pornography or by Pansing Brooks, which would re- ing consent as a labor or sex traf- quire the state Department of Health defense for sexual ficking of a minor. and Human Services to collect and contact with a per- Sen. Anna Wishart A fear or dis- Sen. Julie Slama report information on children who son who is detained or in custody. trust of law enforcement prevents many are reported or suspected trafficking Further, it would codify that any per- survivors from seeking help, Slama victims, the number of reports alleging son detained by law enforcement is said, and by the time they do report trafficking of a minor, the services and not able to consent to sexual contact. the crime, the statute of limitation has costs provided to minor victims, the Current state law establishes that elapsed and charges cannot be filed. number of ongoing cases opened due an inmate or parolee cannot consent “The victims of human trafficking to alleged trafficking and the number to sexual contact with a correctional need to feel like they can come forward of substantiated victims and their officer and imposes increased criminal and report the crimes against them,” demographic information. penalties for sexual contact, Wishart she said, “but many victims feel shame The committee amendment also said, but these same prohibitions do and embarrassment that they were would expand the not apply to law enforcement. trafficked, and they fear retaliation of definition of child “As of 2018, 35 states including violence against them or their families abuse to include Nebraska have a loophole in their by their traffickers if they report the placing a child in statutes that don’t specifically prohibit crime.” a situation to be a law enforcement officer from having The bill would increase the statute sexually abused or sexual contact with someone they are of limitations from three years to exploited, a pro- detaining,” she said. “This would ex- seven for labor or sex trafficking of an vision originally Sen. Steve Lathrop tend protection to all Nebraskans who adult. It also would extend the statute included in Omaha Sen. Steve Lath- are detained by law enforcement.” of limitations for possession of child rop’s LB458. The amendment would classify pornography to seven years, or seven It also would expand the definition sexual penetration of a detainee as years beyond a victim’s 18th birthday. of out-of-home child abuse to include first-degree sexual abuse, which is a Finally, LB519 would allow law cases where the perpetrator of such Class IIA felony. Conviction could enforcement to apply for wiretap abuse is not a member of the victim’s result in up to 20 years imprisonment. authorization to intercept electronic household, no longer has access to Sexual contact with a detainee communications relating to labor or the victim or is unknown or cannot would be classified as second-degree sex trafficking of adults and minors. be identified. sexual abuse, which is a Class IIIA A Judiciary Committee amend- Brainard Sen. felony. It would carry a penalty of up to ment incorporated three additional spoke in support of the bill. Human three years in prison with 18 months bills. trafficking is a serious problem, he of post-release supervision, a $10,000 Provisions of LB517, originally said, and all Nebraskans should be fine or both. introduced by Lincoln Sen. Patty vigilant. Anyone convicted under the

PAGE 10 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 13 - 16, 2019 amended provisions would be re- Attorneys Association. these new technologies,” Lathrop quired to register as a sex offender. It also allows a licensed attorney to said, “but they’ve also made it easier Following the 40-0 adoption of the act as a mediator in developing parent- for people to harass, threaten and committee amendment and a techni- ing plans, if agreed to by all parties. extort others, particularly through the cal amendment, senators advanced The bill passed on a 47-0 vote. creation and distribution of intimate LB519 to select file on a 45-0 vote. or sexually explicit images and videos.” Criminal, civil penalties for A person who violates this provi- Restorative justice bill passed ‘revenge porn’ advanced sion would be charged with a Class I misdemeanor for a first offense, pun- The use of restorative justice pro- Lawmakers advanced two bills ishable by up to one year in prison, a grams in Nebraska was expanded by a from general file May 16 that would $1,000 fine or both. Second and sub- bill passed May 13. prohibit the intentional or threatening sequent offenses would be a Class IV Restorative justice programs pro- distribution of intimate images. felony, punishable by up to two years vide an informal opportunity for a LB630, sponsored by Lincoln Sen. in prison with 12 months post-release person who causes harm to accept re- Adam Morfeld, would outlaw noncon- supervision, a $10,000 fine or both. sponsibility and for victims to describe sensual distribu- The bill also would create the the impact of the harm and identify tion of intimate offense of threatening to distribute the losses incurred. Programs can in- images and video. intimate images with the intent to in- clude mediation, conferences, panels, Morfeld said the timidate, threaten or harass a person. projects or classes. bill would ensure Violation of this provision would be LB595, introduced by Thurston that bad actors are considered a Class I misdemeanor. Sen. Joni Albrecht, specifies that any punished when it LB630 also would provide an af- restorative justice comes to sexual Sen. Adam Morfeld firmative defense for juveniles who agreement reached extortion, commonly referred to as possess a visual depiction that was between parties is “revenge porn.” knowingly and voluntarily provided considered confi- “The bill would also create more by another juvenile who is within four dential. It makes options for prosecutors to have discre- years of age of the defendant. any admission, tion to ensure the consensual sharing The bill was advanced from general confession or in- of images between two minors is ap- file on a 36-0 vote. criminating infor- Sen. Joni Albrecht propriately addressed, but does not Senators also advanced LB680, mation obtained through a restor- result in a lifetime sentence [on the] sponsored by Bennington Sen. Wen- ative justice program inadmissible as sex offender registry and a felony when dy DeBoer, which evidence against a juvenile—except as the prosecutors determine the circum- would allow plain- rebuttal or impeachment evidence—in stances do not warrant that,” he said. tiffs who prevail in any future juvenile adjudication or A Judiciary Committee amend- criminal actions criminal proceeding. ment, adopted 36-0, replaced the authorized by A judge can order an adjudicated bill. As amended, it would create the LB630 to recover juvenile to participate in a restorative offense of distributing a private image monetary damages justice program based on his or her of another person’s intimate area or of in a civil action. Sen. Wendy DeBoer age, intellectual capacity, living en- a person engaged in sexually explicit A Judiciary Committee amend- vironment or the nature of the case. conduct. ment, adopted 36-0, replaced the bill. LB595 changes membership of Omaha Sen. Steve Lathrop spoke As amended, a prevailing plaintiff the 15-member dispute resolution in support of the bill. Technological could recover economic and noneco- advisory council to include a district advances have made it possible for nomic damages proximately caused court judge, county court judge and people to create high-quality photo- by the defendant, including damages juvenile court judge, as well as repre- graphs and videos and immediately equal to any monetary gain made by the sentatives from the Office of Parole share them on the internet or through defendant and for emotional distress. Administration, Nebraska State Bar social media, he said. If the actual damages could not Association and Nebraska County “There may be some benefit to be quantified, the court could award

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 11 May 13 - 16, 2019 reasonable presumed damages—not without the entry of judgment. or diagnosed with serious mental to exceed $10,000—against each de- In examining a person’s eligibil- illness, developmental disabilities or fendant. ity for deferred judgment, the court traumatic brain injury. LB680 also would hold internet would consider if such a judgment It would not prevent NDCS from service providers liable only if actively would provide the maximum oppor- establishing secure mental health involved in the creation or distribu- tunity for rehabilitation while also housing or placing vulnerable inmates tion of the prohibited material. maintaining community safety. The in temporary segregation pending court also would consider a defen- classification. Senators advanced LB680 to select dant’s age, prior record of convictions Finally, the committee amendment file on a 39-0 vote. and deferred judgments, employment incorporated provisions of four ad- and family circumstances, mental ditional bills, including: Criminal justice reforms health, substance abuse history and • LB90, sponsored by Wayne, advanced the circumstances of the offense. which would remove a require- A defendant would not be eligible ment for post-release supervi- The Legislature advanced a bill for deferred judgement if he or she sion for Class IV felonies; from general file May 15 that would has a previous felony conviction, • LB240, sponsored by Lincoln make several changes to current crimi- has received two or more deferred Sen. Matt Hansen, which would nal justice statutes. judgments, has received a deferred allow a private LB686, as originally introduced judgment in the past five years or is contract facil- by Omaha Sen. Steve Lathrop, would ineligible for probation. ity to provide have imposed new Provisions of Wayne’s LB233 treatment requirements on also were included in the committee to criminal the Nebraska De- amendment. These would prohibit a defendants partment of Cor- person from bringing an electronic found to be rectional Services communication device into a cor- mentally in- Sen. Matt Hansen for declaring a rectional facility or providing it to an competent to stand trial; prison overcrowd- inmate. Violation of this provision • LB262, sponsored by Benning- ing emergency. Sen. Steve Lathrop would be a Class I misdemeanor, pun- ton Sen. Wendy DeBoer, which A Judiciary Committee amend- ishable by up to one year in prison, a would require ment, adopted 42-0, replaced the bill. $1,000 fine or both. the NDCS The committee heard 143 bills this Attorneys, public counsel em- director to year, Lathrop said, many of which were ployees, law enforcement and first share the an- drafted to address overcrowding issues responders would be exempt from the nual restric- at NDCS. prohibition. The amended bill also tive housing The amendment includes pro- would allow for the seizure of such report with visions of LB91, an electronic communication device. members of Sen. Wendy DeBoer originally spon- The committee amendment also the long-term restrictive hous- sored by Omaha included provisions of LB739, origi- ing work group prior to release Sen. Justin Wayne, nally sponsored by Omaha Sen. of the report; and which would allow Tony Vargas, which would prohibit • LB684, sponsored by Lathrop, a court to enter NDCS after Oct. 1, which would allow judges to a deferred judge- 2019 from placing sentence a person found to have ment for a person Sen. Justin Wayne a member of a vul- violated terms of post-release found guilty of committing a crime. nerable population supervision to a period of in- Persons granted a deferred judg- in restrictive hous- carceration equal to the length ment instead would be placed on ing. Vulnerable of his or her original term of probation. After successful comple- populations would post-release supervision. tion of the terms of probation, he or include inmates Sen. Tony Vargas Lincoln Sen. Patty Pansing Brooks she would have their charge dismissed who are younger than 18, pregnant spoke in support of LB686 as amend-

PAGE 12 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 13 - 16, 2019 ed, but cautioned that it is insuf- ers and owners of they lower the number of students at- ficient to address ongoing problems agricultural assets tending public schools. She said the at NDCS. who have partici- proposal would not reduce funding for “I believe this package [of bills] does pated in a three- Nebraska’s public schools but would not go nearly far enough ...” she said. year rental agree- give more students from low-income “This [legislative] body has continually ment are eligible families the opportunity to attend a kicked the can down the road when it to file subsequent school that best fits their needs. comes to addressing some of the issues applications for Sen. Matt Williams Students who are Nebraska resi- at the root of overcrowding problems.” different assets. The bill clarifies that dents and whose household income Senators advanced the bill to select tax credits for an asset may be issued does not exceed twice the eligible file on a 40-0 vote. for a maximum of three years. income for the federal reduced-price The bill also defines a flex or lunch program could qualify for the variable rent agreement, in which a scholarships. predetermined base rent is adjusted LB670 would limit the amount of for actual crop yield or price. tax credits available for calendar year Finally, the bill clarifies that the 2020 to $10 million. After that, the Beginning farmer tax credit credits issued under the act are re- annual limit would increase by 25 clarified fundable. percent if the tax credit amounts in LB560 passed on a vote of 46-0. the prior calendar year exceeded 90 Lawmakers passed a bill May 13 percent of that year’s cap. that clarifies the number of rental Tax credit for private school A nonprofit could apply to the state agreements beginning farmers and scholarship donations stalls Department of Revenue to become a agricultural asset owners may make certified scholarship granting organi- under an existing tax credit program. A bill that would create an income zation under the bill. The Beginning Farmer Tax Credit tax credit for those who donate money Among other requirements, an Act, adopted in 1999, provides a per- to nonprofits that grant scholarships organization would be required to sonal property tax exemption of up to students to attend a private elemen- provide the department sufficient to $100,000 and an income tax credit tary or secondary school stalled on information to show that it would of up to $500 for qualified beginning general file May 13. not limit scholarships to only one farmers or livestock producers. Under LB670, introduced by Elk- qualified school. An owner of agricultural assets— horn Sen. Lou Ann Linehan, individu- An organization also would be such as cropland, pasture or machin- als, passthrough required to show that it would give ery—is eligible for an income tax credit entities, estates, first priority to eligible students who on the rent of those assets to a begin- trusts and corpora- received an education scholarship ning farmer or producer. tions could receive during the previous year and then Lincoln Sen. Su- a nonrefundable to new applicants whose household zanne Geist, spon- income tax credit income does not exceed 185 percent sor of LB560, intro- equal to the total of the federal poverty level or who are duced the bill to ad- amount of their Sen. Lou Ann Linehan in foster care or out-of-home care. dress a Legislative contributions or 50 percent of their A pending Education Commit- Performance Audit income tax liability for the year, which- tee amendment would add two re- Committee’s audit ever is less. quirements for scholarship granting of the program. Sen. Suzanne Geist The scholarships could be used to organizations. It would require an It was replaced on general file with pay tuition and fees at a qualifying organization to limit the maximum a committee amendment containing non-governmental, privately operated scholarship awarded to any student provisions of LB623, introduced by elementary or secondary school in to the cost of tuition and fees at the Gothenburg Sen. Matt Williams. Nebraska. school the student attends. Under those provisions, qualified Linehan said similar programs in It also would require an organi- beginning farmers or livestock produc- other states have saved money because zation to limit average scholarship

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 13 May 13 - 16, 2019 amounts to no more than 75 percent She said the projected cost of the The bill gives wireless providers of the statewide average general fund credits by 2030 would be more than the right—as a permitted use not sub- operating expenditures per student. the state currently spends on aid to ject to zoning review or approval—to Sen. Mike Groene of North Platte educational service units, high-ability collocate small wireless facilities and supported the bill, agreeing with Line- learning programs, early childhood install, maintain, modify, operate and han that it would not affect funding programs, school meal programs, replace utility poles within the right for public schools. Groene said he adult education programs and several of way as long as they do not obstruct opposed similar proposals in the past others combined. or hinder usual travel or public safety because of their cost but that he now After three hours of debate, the on the right of way or obstruct its legal sees the tax credits as a way to expand Legislature adjourned for the day use by utilities. educational opportunity and improve before voting on the committee The application fee to collocate Nebraska’s workforce. amendment or LB670. Per a practice small wireless facilities on an existing “LB670 is workforce development, implemented by Speaker Jim Scheer, or replacement authority pole may another opportunity … for young the sponsor of a bill that is facing a not exceed $500 for up to five small people to seek an education that fits potential filibuster must demonstrate wireless facilities on the same applica- who they are, who their families are, sufficient support for a cloture motion tion and $100 for each additional and we need to expand educational before the measure will be scheduled small wireless facility on the same opportunities as wide and as far as we for additional debate. application. The rate to collocate a can,” he said. small wireless facility on an authority Omaha Sen. Rick Kolowski op- pole may be no more than $20 per posed LB670, saying it attempts an pole per year. “end run” around a constitutional The application fee for the installa- prohibition against directing public tion, modification or replacement of a dollars to private schools. utility pole and the collocation of an “We constantly debate how to fund Statewide regulations for small associated small wireless facility may public schools and how to administer wireless facilities approved not exceed $250 per pole. education funding,” he said. “This An authority may require a wireless bill would put even more pressure Wireless companies have the right provider to repair damage to the right on funding for public schools and to place small cell wireless facilities in of way caused by the provider’s activi- our constitutional duty to educate public rights of way under a bill passed ties. Providers also are required to re- students.” by the Legislature May 13. move any small wireless facility that is Sen. Kate Bolz of Lincoln expressed The facilities are short-range cel- not operated for a continuous period concern about the proposal’s impact lular nodes needed to support fifth- of 90 days after the initial installation. on the state budget. If the amount of generation wireless technology, or 5G, Senators voted 44-0 to pass LB184. credits increased each year, as the bill in high-traffic areas. would allow, the state would forgo Under LB184, introduced by Sen. Changes to one-call system approximately $93 million per year by Curt Friesen of Henderson, a politi- amended, advanced 2030, she said. cal subdivision, or “Foregone revenue is revenue we authority, may re- A bill that would make changes can’t use to pay the bills of the state,” quire wireless pro- to the One-Call Notification System Bolz said, “and this is foregone reve- viders to apply for Act was amended and advanced from nue through a tax credit mechanism.” and obtain per- general file May 16. Fremont Sen. Lynne Walz also mits to collocate, Great Plains One-Call Service is a opposed the bill. By reducing state or attach, small system used by excavators to identify revenue, she said, it would divert state wireless facilities Sen. Curt Friesen and locate underground facilities prior funding away from public schools at a to wireless structures and utility poles to excavation to protect the facilities time when the Legislature is trying to and to install, modify or replace a util- from damage. A notice to the service reduce Nebraska’s reliance on prop- ity pole associated with a small wireless center is required prior to performing erty taxes to fund them. facility in the public right of way. an excavation.

PAGE 14 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 13 - 16, 2019

LB462, as originally introduced islature, state fire marshal and board by Henderson Sen. Curt Friesen, of directors detailing the number of would have created a dispute resolu- complaints filed and prosecuted each tion board to hear disputes between year under the One-Call Notification excavators and operators regarding System Act. damage to underground facilities The committee amendment also in- Statewide building code adopted caused by excavation. It also would corporated provisions of LB617, origi- have required all persons locating nally introduced by Lincoln Sen. Mike A bill making the state’s building underground facilities to be licensed Hilgers, which code the default code for municipali- by the state fire marshal. would eliminate ties passed May 13. A Transportation and Telecommu- notice and hearing Currently, the state building code nications Committee amendment, ad- requirements for only applies to state-owned buildings opted 37-0, removed those provisions local telecommuni- and buildings in political subdivisions and replaced the bill. As amended, it cations companies that have adopted the state code. would allow the board of directors to if they wish to raise LB96, intro- review locator training materials and local service rates. Sen. Mike Hilgers duced by Omaha propose best practices. Cavanaugh opposed removing Sen. Justin Wayne, The board would be required to the notice and hearing requirements, makes the state assess the effectiveness of enforcement saying doing so would eliminate con- building code ap- programs and actions, as well as the sumer protections that have been in plicable in any board’s damage prevention and public county, city or vil- place since the 1980s. Hilgers then Sen. Justin Wayne awareness programs. A report of its introduced an amendment, adopted lage that does not findings would be submitted to the 37-0, to reinstate the 60-day notice adopt a building code within two years governor and Legislature no later than requirement for all local service rate of an update to the state building Dec. 1, 2021, and biennially after that. increases. code. Any building that is on a farm Finally, LB462 as amended would Following adoption of a technical or is used for farm purposes is exempt. require the state attorney general to amendment, senators advanced the Senators approved LB96 on a 39-0 g submit a report annually to the Leg- bill to select file on a 37-0 vote. vote.

Legislative Calendar: May 2019* peaker Jim Scheer announced his intention to adjust the session Scalendar May 16. The Unicameral now is scheduled to adjourn sine die May 31. The Speaker also added May 28 and 29 as recess days.

*The Speaker reserves the right to revise the session calendar.

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 15 Unicameral Information Office PRESRT STD Nebraska Legislature U.S. POSTAGE PAID P.O. Box 94604 LINCOLN, NE Lincoln, NE 68509 PERMIT NO. 212 03-23-05