UNICAMERAL UPDATE

News published daily at Update.Legislature.ne.gov Vol. 42, Issue 15 / Apr. 15 - 18, 2019

it appear as though phone calls are from Call spoofing bill advanced a trusted number—a process known as “spoofing.” The telemarketing industry generated over $23 billion in 2018 alone, Halloran said. “As a citizen and businessman, I clearly recognize that this is an important indus- try to the economy,” he said. “I don’t intend to harm the industry, but rather help [them] and protect the good people of .” As introduced, LB693 would pro- hibit any person from selling or renting a phone number to an out-of-state entity unless the telephone number is publicly listed and could be verified by a telecom- munications provider. The bill would prohibit any person working in connection with a telecom- Sens. and discuss her amendment to protect local companies munications service or internet-enabled acting in good faith. voice service from causing a caller ID bill that would authorize investigations of telemar- service to knowingly provide misleading or inaccurate in- keters who knowingly manipulate caller ID infor- formation with the intent to defraud, harm or wrongfully A mation was advanced from general file April 16. obtain anything of value. LB693, sponsored by Hastings Sen. Steve Halloran, is intended to target companies that use caller ID to make (continued page 2)

Program to license and regulate hemp industry advanced awmakers gave first-round ap- of LB657, said the way or another,” Wayne said. “We can proval April 15 to a bill that bill would fulfill either be left behind or we can lead.” L would authorize and regulate those requirements An Agriculture Committee amend- the growing, processing and handling and give Nebraska ment, adopted 37-4, would replace of hemp and hemp products in Ne- farmers and manu- the bill. It would require the state De- braska. facturers a foothold partment of Agriculture to establish, Congress legalized the cultivation in what he said is operate and administer a program to and sale of hemp with the 2018 Farm projected to be a Sen. Justin Wayne license and regulate those who culti- Bill by removing it from the federal $10 billion industry by 2025. Hemp, vate, process, handle or broker hemp, Controlled Substances Act. States that which Wayne stressed is not the same as defined as cannabis with no more wish to regulate hemp production first marijuana, can be used to make fabrics, than 0.3 percent delta-9 tetrahydro- must submit a plan to the U.S. Depart- yarn, rope, paper, drywall, industrial cannabinol (THC), the plant’s main ment of Agriculture for approval. oils and other products, he said. Omaha Sen. Justin Wayne, sponsor “[Hemp production] is coming one (continued page 3)

INSIDE: Meet Sen. La Grone • Mechanical amusement bill advanced • Support the troops license plates advanced April 15 - 18, 2019

Call spoofing bill advanced Search for Bills

(continued from front page) Learn more about bills considered The provisions of LB693 would not Opposing the bill was Omaha Sen. by the Unicameral by logging on apply to authorized law enforcement , who said it would do to www.NebraskaLegislature.gov. activity or a court order that authorizes nothing to stop telemarketing calls. caller ID manipulation. The Nebraska “You’re shooting at a moving target The Legislature’s website offers a bill search on the upper-right Public Service Commission would be and that target will move faster than portion of the homepage. Entering authorized to impose administrative you can load your gun and fire at it,” a bill number will retrieve the bill’s penalties on violators, not to exceed he said. text, fiscal note, statement of $2,000. Omaha Sen. Megan Hunt intro- intent, votes, transcripts and more. Halloran introduced an amend- duced an amendment that would ment, adopted 42-0, which would exempt local telecommunications You also can search current laws authorize the state attorney general to companies from the bill’s provisions using the keyword search found investigate violations of the bill under as long as they are acting in accordance below the bill search. the Consumer Protection Act. These with federal law. The amendment violations would not give cause for would hold harmless local companies, private civil action. she said, and make sure they are not Sen. of Lincoln sup- penalized for the actions of bad actors. ported the bill, but expressed concern Hilgers opposed the Hunt amend- that it could harm legitimate tele- ment, saying that it could prevent the marketing businesses. He suggested attorney general from properly inves- that the Legislature take a “national tigating violations. He said he would perspective” when addressing telecom- work on drafting an amendment with munications issues. the attorney general’s office before “We want to avoid a conflicting select file debate. patchwork of laws [across the country] Following the 29-11 adoption of and potential conflicts with regula- the Hunt amendment, senators ad- tions at the federal level,” Hilgers said. vanced LB693 to select file on a 40-1 “This bill could become a model for vote. g other states, so we want to get it right.”

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PAGE 2 • UNICAMERAL UPDATE • 106TH LEGISLATURE April 15 - 18, 2019

Program to license and regulate hemp industry advanced (continued from front page) psychoactive compound. result in the legal growth, manage- chinery needed to harvest hemp plants. Among other requirements, license ment, marketing and use of the state’s “I don’t think it’s going to be a holders would have to be at least 18; hemp industry. A fee on hemp seed panacea,” he said, “but we have a not have had a cultivator, processor- and hemp fiber sold or delivered in chance to get in, probably not on the handler or broker license revoked in Nebraska would fund the commission. bottom floor, but at least near the the five years preceding the applica- Sen. Tom Brandt of Plymouth bottom floor.” tion; and not have been convicted of supported LB657, saying hemp is a Kearney Sen. John Lowe opposed a felony related to a controlled sub- drought-resistant cash crop that fits the bill. He said South Dakota Gov. stance within the preceding 10 years. into farmers’ existing crop rotation. Kristi Noem vetoed similar legislation License holders would consent to He said Kansas, Iowa, Missouri and last month on the grounds that it background checks; entry onto and Wyoming have legalized the growth would have complicated law enforce- inspection of all sites where hemp and sale of hemp. ment searches and provided a defense would be cultivated or processed; “We are lagging behind our neigh- for those breaking the state’s drug laws. testing of hemp samples; destruction boring states who are our competitors Lowe said he feared that authoriz- of hemp found to have THC concen- in this emerging market,” Brandt said. ing the production and sale of hemp tration greater than that allowed by Peru Sen. also sup- would put Nebraska on a path toward the act; and annual inspections by the ported the bill, saying it would give legalizing marijuana. department to verify that hemp is be- farmers an alternative crop. “We’re opening a cavern, a cavern ing grown in accordance with the law. “Our Nebraska farmers will not that we will not be able to crawl out of The bill would require the depart- live or die on the passage of this bill, once this is passed,” he said. ment’s director to submit a state but it provides them another option Sen. of Bayard regulatory plan to the U.S. Secretary of to diversify their crops,” she said. “All also opposed the bill. He, too, cited Agriculture no later than Dec. 31, 2019. you have to do is look at commodity Noem’s veto message, which claimed The plan would describe practices prices for corn and soybeans right now that legislation authorizing hemp to maintain information regarding to understand why that’s important.” production is part of a larger effort to land where hemp is cultivated, handled Sen. Dave Murman of Glenvil also legalize marijuana for recreational use. or processed; procedures governing supported the bill, saying it would help Senators voted 37-4 to advance the sampling and testing of hemp; manufacturers that build special ma- LB657 to select file. g procedures for destroying hemp plants or products that violate the act; proce- dures for implementing the act’s en- Find Legislative Documents forcement provisions; and a procedure Committee hearing schedules, daily agendas and more can be for conducting annual inspections of a viewed using the calendar on www.NebraskaLegislature.gov. random sample of hemp cultivators. Prior to the state plan’s approval, Clicking the “Calendar” link on the left side of the website’s a person with a valid licensing agree- homepage will open a calendar that is constantly updated ment with the state Department of with new information. Agriculture could cultivate, handle or process hemp as part of the depart- ment’s agricultural pilot program, which federal law authorized in 2014. Finally, the bill would create a com- mission that periodically would report to the governor and the Legislature on policies and practices that would

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 3 April 15 - 18, 2019 Meet the Senator New senator brings experience to the Legislature ndrew La Grone is a first-year senator but he’s not pro-life values and providing for our military members,” new to the Capitol or issues of public policy. La Grone said. A The Gretna senator reviewed the state budget Murante encouraged La Grone to apply for the seat when he was a senior at Millard South High School. The when he resigned after being elected state treasurer. La Great Recession of 2008 led to numerous cuts in federal Grone was appointed to serve District 49 in December of funding, leaving the Nebraska School Distributive Educa- 2018. In his first year, he has introduced bills to improve tion Clubs of America, of which he was a member, without security at Offutt Air Force Base and help parents save for money. their children’s college education. La Grone and other DECA members lobbied state While at UNL, La Grone served as chairman of the senators to restore funding, but the group was given a chal- Nebraska Federation of College Republicans and attended lenge—find something else to cut from the state budget. the 2012 Republican National Convention. The process proved educational. “To see so many people come from all different parts of “I was taken aback by some of the things the state spent the country around the ideas of freedom, hard work and money on,” La Grone said. “These are taxpayer dollars. achievement, that was an amazing experience,” La Grone This is time spent away from their families. This is an op- said. “America is an idea, right? We’re a melting pot. We portunity to take their kid out to dinner that they no longer don’t have a common heritage in that sense, but what we have because that money came into the state.” have is a heritage of ideas.” g La Grone, presi- dent of the Gretna Optimists, returned to the Legislature in 2015 after earning a law degree from the University of Nebras- ka. He worked for three years as legal counsel for the Gov- ernment, Military and Veterans Affairs Committee chaired by then-Sen. . “It was incredibly helpful to learn about the internal processes of the body but also to work for some- one who had those same Nebraska val- ues I had—ensuring we provide adequate funding for educa- tion, standing up for Sen. is a freshman senator but a familiar face in the Capitol hallways.

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tility report in even-numbered years, by skills no reasonable player a budget stress test in odd-numbered could exercise. years and a long-term budget for major The bill would require distributors programs every four years. of electronic video games to pay a Senators voted 49-0 to pass LB713. $500 application fee, submit a sample ATM fee changes approved game to the Nebraska Department of Revenue, provide evidence that the Lawmakers passed a bill April 18 device is a game of skill and provide an that changes certain ATM fees. affidavit to the tax commissioner that LB603, intro- no functional changes would be made duced by Omaha to the device’s hardware or software Mechanical amusement Sen. Brett Lind- without the commissioner’s approval regulation bill advances strom, removes a after the license is granted. requirement that The Nebraska Department of Rev- Possession of an illegal device financial institu- enue would determine in advance of would be a Class II misdemeanor tions must charge distribution whether certain mechani- under the bill. Sen. the same automat- cal amusement devices are games of LB538 also would require game ic teller fees to all other financial skill or chance under a bill advanced owners to pay an annual $250 licensure institutions. to select file Apr. 15. fee per device. The bill would not apply The bill affects default interchange LB538, introduced by Omaha to pickle cards, lotteries or bingo games. fees that are charged between institu- Sen. Steve Lath- Lathrop said he introduced the tions during an ATM transaction. It rop, would add bill to provide a front-end process to does not change a bank customer’s electronic video determine if a device is a game of skill ATM fees. games of skill to or chance. He added that there are an Senators approved the bill on a the definition of a increasing number of electronic video 49-0 vote. mechanical amuse- games in Nebraska that claim to be ment device and games of skill but are not. require the depart- Sen. “The term ‘touch-skill’ is in many ment to determine if such devices are cases a misnomer,” Lathrop said. “A games of skill or chance. large number of these games involve Under current law, games of chance no skill at all. They are basically video Additional budget reports other than the state lottery and certain slot machines.” required charitable enterprises are illegal. A Sen. Justin Wayne of Omaha spoke device would be considered a game against the bill. He said LB538 could Lawmakers gave final approval of chance under LB538 if one of the make a person guilty of a crime at the April 18 to a bill that requires the following applies: time they submit a device for approval. Legislature to analyze long-term fiscal • a player’s chances of winning Wayne asked if gun owners would be sustainability by adding a new step to are affected by the wins and comfortable sending a firearm to the the budget process. losses of previous players; government for inspection and pos- LB713, spon- • the game can be controlled by sible confiscation. sored by Omaha a source other than the person “I’m self-incriminating just by going Sen. , playing the game; through the process,” Wayne said. “No- requires the leg- • the success of a player is deter- where else in our statutes do we take islative fiscal ana- mined by chance and cannot be away your right to not self-incriminate.” lyst to create ad- altered by the player’s actions; Albion Sen. supported ditional revenue • game features that are not vis- the bill, saying that it would add clar- Sen. Tony Vargas and budget reports ible, or known by the players, ity when determining which games throughout the biennium. can affect the outcome; or are legal. The reports include a revenue vola- • a player’s success is impacted “It will help make this more of an

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 5 April 15 - 18, 2019 objective process,” Briese said. because it is considered a public use. arrangement,” McCollister said. Sen. Steve Erdman of Bayard said Brewer introduced an amendment Lawmakers voted 37-1 to adopt he was concerned about the bill’s that would define the public use aspect the Brewer amendment and 40-1 to ability to keep up with a distributor’s of such exercise of eminent domain as advance the bill to select file. potential ability to alter a game’s com- a “rebuttable presumption”—meaning puter programming. that it could be challenged in court by Teleconferencing open “It’s like trying to catch the wind,” an impacted landowner. meeting changes approved Erdman said. “These are very sophis- “I would think all of us would, at the ticated machines, and I have a tough very least, want to have our day in court Lawmakers passed a bill April 18 time understanding how we’re going before a private company can take our intended to use technology to create to regulate those machines that can be land,” Brewer said. “The people get to more efficient and transparent govern- changed in an instant.” have this status under the compromise.” ment public meetings. Sen. of Thurston said On Feb. 27, LB155 failed to ad- LB212, introduced by the Govern- she would like to see the bill exclude vance on a 23-8 vote—two votes short ment, Military and Veterans Affairs credit cards as a method of payment of the number required. Committee, applies to risk manage- for such games. Lathrop later said he The bill was given a priority desig- ment pools, organizations created would consider such an amendment nation by Elmwood Sen. Robert Cle- under the Municipal Cooperative prior to select file debate. ments, which allowed it to be placed Financing Act and organizations cre- After approving amendments of- on the agenda for further debate. ated under the Interlocal Cooperation fered by Lathrop and the General Sen. of Lin- Act that sell electricity or natural gas at Affairs Committee that made a series coln said the proposed amendment wholesale on a multi-state basis. of clarifying and technical changes to “wasn’t perfect” but that it strength- The bill allows those organizations the bill, lawmakers advanced LB538 ened the bill and helped broker com- to designate a nonvoting individual, on a 34-0 vote. promise between the two sides. not included as part of the quorum, to “The [new] language makes it be present at a site where a public hear- stronger for landowners,” Pansing ing is being held to keep the site open Brooks said. for members of the public who wish to Bennington Sen. Wendy DeBoer attend the public hearing by telephone supported the amendments, saying the conference or videoconference. Legislature is not nimble enough to The bill allows qualified entities Eminent domain compromise respond quickly to issues of eminent to hold more than 50 percent of advances domain. That authority is better exer- their meetings by telephone or video- cised by the courts, she said. conferencing as long as at least one Landowners would have the ability “Every piece of land is completely meeting is not held in that manner. to contest the use of eminent domain unique. It’s not like a coffee cup where It also extends the allowed length of by renewable energy developers under a typically you can substitute one for a telephone conference call from two bill that advanced to select file April 17. another,” DeBoer said. “Land is not hours to no more than five hours. As introduced by Gordon Sen. substitutable so we must protect land- LB212 was amended to include , LB155 would have pro- owner interests, and we want to have provisions of two additional bills. hibited a private a way also to be limber enough to ac- Provisions of LB191, introduced by entity from using commodate public utilities and their Gretna Sen. An- eminent domain use of eminent domain in those rare drew La Grone, har- to provide access circumstances where it is important.” monize bond defi- to build transmis- Sen. John McCollister of Omaha nitions and delete sion lines or other initially opposed LB155 but felt the obsolete language infrastructure re- amendment did enough to bring the regarding financial lated to a privately Sen. Tom Brewer two sides together. instruments ap- developed wind energy project. “We may not be singing ‘Kumbaya’, proved and agreed Sen. Andrew La Grone Currently, state law authorizes the use but we did come up with an acceptable to prior to July 1, 1999. The provisions of eminent domain in those situations

PAGE 6 • UNICAMERAL UPDATE • 106TH LEGISLATURE April 15 - 18, 2019

limit to one year the period for which complaints at licensed children’s resi- they receive Medicaid and are accessing a governmental unit may exceed the al- dential facilities in Nebraska. health care, are able to work and earn lowable growth percentage if approved LB59, introduced by Sen. Mach- income. The program allows them to pay by voters at a meeting. aela Cavanaugh of Omaha, mandates a premium on a sliding scale in order to The provisions also change the that the state maintain Medicaid coverage, she said. publication requirement prior to a Department of “This [bill] gives the state more flex- budget hearing from five calendar days Health and Hu- ibility in our ability to provide coverage to four and define such days to include man Services for working individuals with disabilities the day of publication but not the day respond within and streamlines the eligibility process of the hearing. five days to all while retaining current income eligibil- Provisions from complaints of ity standards,” Crawford said. LB239, introduced child abuse or Sen. She said a similar change in Kansas by Adams Sen. My- neglect made at a facility licensed resulted in a 41 percent drop in Medic- ron Dorn, amend under the Children’s Residential aid expenditures over a four-year period. the County Bud- Facilities and Placing Licensure Act. As introduced, the bill would have get Act to mirror If a complaint leads to an inves- removed asset limitations in the pro- the four-day notice Sen. Myron Dorn tigation, the department would be gram. A Health and Human Services language in the Nebraska Budget Act. required to issue a report within 60 Committee amendment, adopted 37-0, LB212 passed on a vote of 49-0. days. The requirement could be ex- would retain current asset limitations. tended to 90 days if DHHS files an It also would retain the 7.5 percent pre- Tourism promotion bill passes interim report by the 60-day deadline. mium cap specified in the original bill. Senators approved the bill on a Crawford said the changes outlined The Legislature passed a bill April 18 49-0 vote. in the amendment should eliminate that allows the Nebraska Tourism Com- the bill’s fiscal impact. mission to sell promotional products. Medicaid buy-in program Omaha Sen. , chairper- LB637, intro- changes advanced son of the committee, said the Medicaid duced by Sen. John buy-in program simply would be easier Stinner of Gering, Lawmakers advanced a bill from to administer under the amended bill. authorizes the com- general file April 15 that would make “[The amendment] does not mission to develop changes to a program meant to help change the eligibility levels,” Howard and approve state individuals with disabilities maintain said. “To be eligible for the Medicaid marketing cam- employment while retaining Medicaid buy-in program, the family income paigns and develop Sen. coverage. for a person with disabilities must still and sell tourism products. Revenue gen- LB323, introduced by Bellevue Sen. be below 250 percent of the federal erated by any sales will be credited to the , would update eligibil- poverty guidelines.” commission’s promotional cash fund. ity standards for Following adoption of the commit- LB637 passed on a 49-0 vote and Nebraska’s Medic- tee amendment, lawmakers voted 40-0 takes effect immediately. aid Insurance for to advance LB323 to select file. Workers with Dis- abilities program— commonly referred to as the Medicaid buy-in program— Sen. Sue Crawford from federal Balanced Budget Act Regulations approved for use Timeline tightened for abuse standards to more recent federal Ticket of jailhouse informants complaint reviews to Work and Work Incentives Improve- ment Act standards. A bill that requires increased Lawmakers passed a bill April 18 Crawford said the program applies to transparency in the use of jailhouse that requires a timely response to individuals with disabilities who, because informants was passed by the Legisla-

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 7 April 15 - 18, 2019 ture April 18. beginning Jan. 1, 2021. penalties for witness and jury tampering. Under LB352, introduced by The MOU will include training LB496, sponsored by Omaha Lincoln Sen. , if a requirements for all school resource Sen. Justin Wayne, prosecutor intends officers or security guards employed would make wit- to use the testimo- by a district as well as at least one ness, informant ny of a jailhouse administrator. The training will in- or jury tampering informant, he or clude at least 20 hours focused on a Class II felony she is required to school-based law enforcement, student when the underly- provide certain in- rights, understanding students with ing criminal charge formation to the special needs and disabilities, conflict is a Class II felony Sen. Justin Wayne defense, including: Sen. Adam Morfeld de-escalation techniques, ethics for or higher. A Class II felony carries a • the informant’s known criminal school resource officers, teenage brain penalty of one to 50 years in prison. history; development, adolescent behavior, People can tamper with witnesses • any benefit requested, offered implicit bias training, diversity and now and receive only two years of pro- or provided to the informant in cultural awareness, trauma-informed bation, Wayne said. If witnesses then exchange for testimony; responses and violence prevention in refuse to testify, criminals could go free, • the specific statements the school settings. he said, which incentivizes tampering. defendant allegedly made to A school district is required to “We need to send a message that the informant that will be used maintain records of each student we no longer are going to tolerate against the defendant; referral for prosecution by a school outside influence from criminals and • other cases in which the infor- resource officer, including the reason those facing criminal sanctions in our mant testified or intended to for each referral and federally identi- communities,” Wayne said. testify; and fied demographic characteristics of A Judiciary Committee amend- • any case in which the informant each student. ment, adopted 39-0, would reduce recanted testimony against a A district also is required to iden- the tampering penalty to a Class I defendant. tify when a parent or guardian will be misdemeanor when the underlying A prosecutor who offers any benefit notified if a student is questioned or criminal proceeding alleges a Class II or plea deal to a jailhouse informant interrogated, and under what circum- misdemeanor or lower. A Class I mis- first is required to notify any victim of stances a student will be advised of demeanor carries a penalty of up to one a crime committed by the informant. their constitutional rights. Each MOU year in prison, a $1,000 fine or both. The bill passed on a 48-1 vote. will include a complaint process for Omaha Sen. Steve Lathrop said students and parents to express con- the amended bill is a step in the right Best practices adopted for cern about a school resource officer or direction. school resource officers his or her practices. “It is important to preserve the School districts have the option to sanctity of jury trials and the criminal Lawmakers passed a bill April 18 develop individual MOUs, but they justice system,” he said. that establishes statewide standards must be substantially similar to the Senators advanced the bill to select for school resource officers. one distributed by the department. file on a 38-0 vote. LB390, introduced by Lincoln Sen. Any district required to adopt an Patty Pansing Brooks, requires the MOU, also is required to provide a state Depart- copy to the department or publicly ment of Educa- post it to the school district’s website. tion to develop The bill passed on a 48-0 vote. a model mem- County funds for motor vehicle orandum of Increased judicial tampering sales tax collection advanced understanding penalties advanced to govern the A bill that would reinstate a commis- use of school Sen. Patty Pansing Brooks Lawmakers gave first-round approval sion counties receive in return for their resource officers or security guards, April 16 to a bill that would increase collection of state motor vehicle tax was

PAGE 8 • UNICAMERAL UPDATE • 106TH LEGISLATURE April 15 - 18, 2019 advanced from general file April 16. Crawford introduced an amend- County sales tax to pay certain Bellevue Sen. Sue Crawford, spon- ment, adopted 33-2, that would allow federal judgments authorized sor of LB237, said counties to withhold 0.5 percent of all county treasurers amounts in excess of $6,000 remitted A county may impose a sales tax to currently may with- each month rather than $3,000. She help pay a federal judgment against hold 2.5 percent said the change would ensure that it under a bill passed by lawmakers of the first $3,000 no counties lose revenue under the April 18. in state motor ve- proposal. Introduced by Adams Sen. Myron hicle sales and use Sen. Megan Hunt of Omaha sup- Dorn, LB472 au- tax that they remit, Sen. Sue Crawford ported the bill. According to the thorizes a county which amounts to $75 per month. Douglas County treasurer, she said, board to adopt a Under LB237, counties also could state motor vehicle tax collection is one resolution to im- withhold 0.5 percent of all amounts of the most labor intensive services that pose a sales and in excess of $3,000 remitted each his office is required to provide. Last use tax of 0.5 per- month. Seventy-five percent would be year, Douglas County remitted more cent on transac- deposited in the county general fund than $60 million in motor vehicle tax tions within the Sen. Myron Dorn and 25 percent would be deposited in revenue to the state, she said. county to pay a qualified judgment, the county road fund. “The total amount that they get which the bill defines as a judgment Crawford said the Legislature elimi- from the state to do the work of col- rendered against a county by a federal nated the 0.5 percent commission on lecting all those taxes is only $900,” court for a violation of federal law. amounts over $3,000 during a state Hunt said. Dorn has said the proposal is in- budget crisis in the early 2000s. She Gering Sen. John Stinner said he tended to help the residents of Gage said counties collect more than $200 was concerned about the proposal’s County. In 2016, a federal judge million in state motor vehicle sales effect on cities. Under Crawford’s awarded more than $28 million in tax each year and need the additional amendment, he said, counties either damages to the six men and women commission to cover the cost of col- would receive additional revenue or be wrongfully convicted of the rape and lecting that tax. held harmless. Cities, however, would homicide of a Beatrice woman in According to the state Department lose approximately $400,000 in distri- 1985. The individuals, commonly of Revenue, LB237 would cut revenue butions from the Highway Allocation known as the “Beatrice Six,” had sued to the state’s Highway Allocation Fund, he said. Gage County in federal court after Fund, which in turn would decrease Stinner said he also felt conflicted DNA evidence exonerated them. the amount of those funds distributed about cutting revenue to the state’s The state tax commissioner will to cities and counties. However, the Highway Cash Fund, which is used administer the tax and collect any sales department estimates that counties to fund state highway construction and use tax imposed under LB472 in would receive a net revenue increase projects. the same way that state sales and use of $467,000 in fiscal year 2019-20 and Sen. of North Platte tax is collected. The commissioner $1.2 million in FY2020-21 due to the opposed LB237, saying the additional will remit the monthly proceeds to additional commission. commission is unnecessary. Counties the county after deducting a 3 percent A Revenue Committee amend- already receive enough property tax rev- administrative fee. ment, adopted 36-0, would require enue to fund their operations, he said. The tax will end after the judgment county treasurers in counties with a Thurston Sen. Joni Albrecht also is paid or after seven years, whichever is population of 150,000 or more to opposed the bill. She introduced an earlier, and it may be used only to pay remit $1 of the collection fee for each amendment that would have directed judgments of more than $25 million. of the first 5,000 motor vehicles, semi- 50 percent of the revenue from the Counties currently may impose trailers or trailers registered on or after proposed 0.5 percent commission to a sales and use tax to pay for public Oct. 1, 2019, to the state treasurer, a county’s road fund, rather than 25 safety services and interlocal agree- who would credit the amount to the percent. It failed on a vote of 21-6. ments. LB472 prohibits a county from department in order to defray the bill’s Senators voted 29-6 to advance imposing that tax if it imposes the one implementation cost. LB237 to select file. authorized by the bill.

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 9 April 15 - 18, 2019

The bill requires any county that payment equal to 25 percent of the state match would encourage more imposes a sales and use tax in order matching contributions made during low-income families to save for their to pay a qualified judgment to set the preceding year, up to $2,000 per children’s college education and help its property tax levy at the 50-cent employee per year. attract young families to the state. maximum for each year it imposes the The state treasurer could approve Beginning in 2022, the state trea- sales and use tax. The county must up to $250,000 in incentive payments surer would transfer from the state use revenue from that levy to pay the each year, but Lindstrom said states general fund to the program’s cash judgment. with similar programs spend only fund the amount necessary to meet Senators voted 43-6 to pass LB472. $15,000 to $40,000 per year. matching obligations for the preceding “If we do get to the $250,000 cap, calendar year, minus any private con- College savings incentives it’s probably a good thing because it tributions received during that year. advanced means we have more kids going to The treasurer then would direct the college,” he said. money in the cash fund to the college A bill that would provide a cash in- Beginning in 2022, the state trea- savings plan program fund for deposit centive for employers who contribute surer would determine the amount of into the appropriate accounts. to an employee’s state college savings incentive payments approved for the The state treasurer could approve plan advanced from general file April year and transfer that amount from up to $250,000 in matching scholar- 16 after lawmakers amended it to in- the state general fund to the program’s ships each year. clude another college savings proposal. cash fund. Wishart said her intent is that no As introduced by Omaha Sen. Sen. of Lincoln state general funds would be used for Brett Lindstrom, LB610 would have introduced an amendment, adopted the program. State Treasurer John allowed Nebraska 29-0, that includes provisions of her Murante has said the program can be taxpayers to claim LB547. Under the amendment, the funded using private donations and a nonrefundable state would match contributions to the treasurer’s current cash funds, income tax credit NEST accounts made on behalf of she said. for a matching beneficiaries who meet certain income “I feel very comfortable with the contribution to an requirements. fact that we will be able to manage this employee’s college Participants would be eligible for program without having any general savings account Sen. Brett Lindstrom the program if the beneficiary for fund impact,” Wishart said. established under the Nebraska edu- whom contributions are made is part Elkhorn Sen. cational savings plan trust. of a family whose household income supported the bill, saying research has A Revenue Committee amend- is not more than 250 percent of the found that having a college savings ment, adopted 30-0, would replace federal poverty level. Wishart said that account leads to better educational the bill. It would create a cash fund equates to an income of approximately outcomes for students. administered by the state treasurer to $67,000 for a family of four. “If there is a savings account to go provide incentive payments to employ- The state would match the partici- to college, you think you have a future, ers that make matching contributions pant’s contribution if the beneficiary’s and having a future gives you hope,” to employees’ NEST accounts. household income is between 200 and she said. “This is a very important Lindstrom said the proposal is 250 percent of the federal poverty bill that can make a big difference to intended to help more Nebraska level. The match would be equal to young people’s lives across Nebraska.” children attend college and to do so 200 percent of the participant’s contri- Sen. Patty Pansing Brooks of Lin- with less student debt. It also would be bution if the beneficiary’s household coln questioned how the programs an additional benefit that companies income is not more than 200 percent would be funded given the state’s fiscal could offer their employees, he said. of the federal poverty level. Matches constraints, including its obligation to Beginning in 2022, an employer would be limited to $1,000 per ben- help rebuild roads and bridges dam- could apply to the state treasurer to eficiary per year. aged by recent flooding. receive the incentive payments. An Wishart said postsecondary educa- Senators voted 31-0 to advance employer whose application is ap- tion is more critical—and more expen- LB610 to select file. proved would receive an incentive sive—than ever. She said the proposed

PAGE 10 • UNICAMERAL UPDATE • 106TH LEGISLATURE April 15 - 18, 2019

The specialty plates would be avail- plates for $70 if they are for a cause able effective Jan. 1, 2021. that they support,” Blood said. The committee amendment also Bennington Sen. Wendy DeBoer incorporated provisions of LB696, spoke in support of the Blood amend- originally introduced by Brainard ment. She initially voted for the fee Support the troops license Sen. Bruce Bostel- decrease as a member of the commit- plates advanced man, which would tee, she said. substitute Army “The committee, I think, right- Senators advanced a bill from National Guard fully considered the state interest of general file April 15 that would create and Air Nation- wanting uniformity of license plates several new specialty license plates. al Guard license and license plate fees and that’s why LB138, sponsored by Bellevue Sen. plates for the I voted for this uniformity in the first , would current National Sen. place,” DeBoer said. “But Sen. Blood authorize the state Guard Military Honor plates. is raising money for veterans’ causes Department of Provisions of LB697, introduced and we should, even if for no other Motor Vehicles to by Bostelman, also were incorporated cause, make an exception for veterans. create several spe- under the committee amendment. When we’re weighing the balance of cialty license plates These would eliminate application uniformity, I think the veterans should including designs and renewal fees for Purple Heart, win every time.” honoring people Sen. Carol Blood ex-POW, Pearl Harbor Survivor and Opposing the fee increase was Peru who have served in the armed forces in Disabled American Veteran license Sen. Julie Slama. She said she was Iran, Afghanistan, the Persian Gulf War plates effective Jan. 1, 2021. concerned that the $70 fee would be and the Vietnam War. Similarly, there would be no ap- unaffordable to people wanting to It also would create a “Support plication fee for a Gold Star personal- show their support. Our Troops” plate available to those ized message license plate, however a “Looking at this bill, it’s evident to who have not served, but would like $5 renewal fee still would apply. The me that [veterans] and their families to show support for the armed forces. license plate would be considered are more likely to buy them,” Slama “The [“Support Our Troops” permanent as long as the vehicle to said. “I want to make sure our veterans license plate] is designed to not only which it is attached remains registered and their families can afford to have show support for our troops, but also by the applicant. these plates.” to generate revenue that will increase “A modest [fee revenue] gain ... The Blood amendment was ad- our efforts to recruit this highly skilled should not outweigh the policy of opted 35-6. workforce to stay and work here in Ne- recognizing and supporting these vet- Lincoln Sen. Patty Pansing Brooks braska upon retirement,” Blood said. erans and their families and one way to introduced an amendment that A Transportation and Telecom- do this would be to allow these plates would incorpo- munications Committee amendment, to be available to such individuals rate provisions adopted 35-0, would add a fifth license without a fee,” Bostelman said. of her LB626, plate design honoring those who have The committee amendment also which would served in the Global War on Terror. would have reduced the application direct the state There would be a $5 fee for any of fee for a “Support Our Troops” license Department of the bill’s specialty alphanumeric plates plate from $70 to $40; however, Blood Veterans Affairs and a $40 fee for a personalized mes- introduced an amendment to main- to create a job Sen. Patty Pansing Brooks sage plate. The alphanumeric fee and tain the $70 application fee outlined search website specifically for veterans. $30 of the personalized message fee in her original bill. She said a higher The provisions of the Pansing would be dedicated to the Veterans fee for the plates was justified because Brooks amendment would be funded Employment Program Fund. The re- the funds raised would go to support through revenue raised by sales of the maining portion of the personalized an important cause. “Support Our Troops” license plates. message fee would be credited to the “We’ve seen that people are more Pansing Brooks said she met with veter- DMV cash fund. than willing and are eager to purchase ans who believe that neighboring states

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 11 April 15 - 18, 2019 are doing a better job of direct outreach stalled on general file April 17. Whether it is property, sales or to veterans and service members who LB550, as introduced by Omaha Sen. occupation taxes, Wayne said, Ne- might wish to stay in Nebraska. Tony Vargas, would require a municipal- braskans should have more of a say “I believe that this [amendment] ity to secure voter in the matter. acts as a beacon to veterans and tran- approval before im- “At the end of the day, we have sitioning service members, welcoming posing any local tax some of the highest taxes around,” them to Nebraska and acknowledging or fee on wireless he said. “For a simple majority vote at the fact that we want them here so that services. Vargas said the local [government] level to increase they can become vital members of our other Midwestern taxes, I think is not proper.” workforce,” she said. states provide the Opposing the bill was Sen. Matt La Vista Sen. John Arch expressed same services at a Sen. Tony Vargas Williams of Gothenburg. Allowing concern about using license plate rev- much lower cost to consumers. municipalities to levy taxes on wireless enue to fund an ongoing state program. “[The bill] provides greater trans- services helps level the funding playing “My concern is that if we start some- parency for voters who will better field, he said. thing with special funding ... and for understand how much of those taxes “It seems much [fairer] to those whatever reason enough plates are not they’re paying for, what the money community leaders to have a small sold, then suddenly we’re back to the funds and [would allow] each person occupation tax on cell phones because general fund to maintain the website to consider whether or not they sup- those community [members] who and keep the program going,” he said. port it,” he said. have moved there almost all carry After adopting the Pansing Brooks The bill would have made addition- cell phones,” Williams said. “Those amendment 31-0, senators voted 37-0 al changes to taxes and fees imposed people use the streets that the city to advance the bill to select file. on wireless services, including: pays for, they use the water, the sewer • lowering the enhanced wireless system and they certainly use the po- Expanded high-speed broad- 911 surcharge from 70 cents to lice protection that is offered. This is band availability approved 35 cents; a way to have them contributing to • eliminating the prepaid wireless that cost.” Lawmakers passed a bill April 18 surcharge; and Lincoln Sen. Adam Morfeld also that makes it easier for customers to • exempting wireless service from a opposed LB550. Lincoln would lose switch to a new telecommunications surcharge used to fund the state’s $4 million of its $178 million budget if company. telecommunications relay system. the bill becomes law, he said, and that LB268, sponsored by Henderson Vargas introduced an amendment money most likely would be replaced Sen. , that would have replaced the bill and with property tax revenue. allows a customer simply required municipalities to seek “We elect city councilors and elect- who currently is voter approval for any occupation tax ed representatives to represent our not receiving high- on wireless services, including exist- interests, make decisions, have public speed broadband ing taxes. Any existing occupation tax hearings and come to conclusions,” services to switch would be suspended until approved Morfeld said. “If we start having public to a company in by voters. votes on this occupation tax, why not a different local Sen. Curt Friesen Vargas withdrew the amendment have public votes on every single tax?” exchange to receive such services. so that senators could consider an The Legislature moved on to The bill passed on a 48-0 vote. alternative approach. the next item on the agenda before Omaha Sen. Justin Wayne then voting on LB550 or any of the pend- Bill to require voter approval introduced an amendment that would ing amendments. Per a practice for wireless taxes stalls replace the bill. If adopted, it would implemented by Speaker , require a municipality to seek voter the sponsor of a bill that is facing a After debate spanning two days, a approval only on new occupation taxes potential filibuster must demonstrate bill that would require municipalities or increases in existing occupation sufficient support for a cloture motion to seek voter approval before levying taxes on wireless and prepaid wireless before the measure will be scheduled additional taxes on wireless services services. for additional debate.

PAGE 12 • UNICAMERAL UPDATE • 106TH LEGISLATURE April 15 - 18, 2019

manages and develops vacant and buying this property—developing tax-delinquent properties—under the property, working in the community Nebraska Municipal Land Bank Act. in competition with the private sec- Currently, only municipalities in tor—be accountable to citizens of that Preference for opportunity Douglas and Sarpy counties are eligible community, don’t vote for this bill,” zones approved under state law to create land banks. Hilgers said. “There is very little ac- Under the bill, only a metropolitan countability and [land banks] have a Senators passed a bill April 18 class city could create a stand-alone tremendous amount of power.” designed to rejuvenate economically land bank. Currently, Omaha is the Also speaking in opposition was disadvantaged areas. state’s only metropolitan class city. Kearney Sen. John Lowe. He said he LB87, introduced by Omaha Sen. The bill also would specify that a was concerned that land banks would Justin Wayne, re- land bank is prohibited from levying result in more property removed from quires that the property taxes. the tax rolls. state Department An Urban Affairs Committee “We’re worried about our property of Economic De- amendment would allow cities of the taxes and yet we’re trying to pass a velopment provide primary class to form their own land bill where property is tax exempt,” a preference for banks. Lincoln is currently the only Lowe said. grant applications primary class city in Nebraska. Sen. Carol Blood of Bellevue spoke at least partially Sen. Justin Wayne Quick said land banks can address in support of the bill, saying that many located within an opportunity zone a lack of affordable housing and of the objections to land banks were as designated by the federal Tax Cuts rehabilitate properties that private inaccurate. and Jobs Act. companies cannot, some which are “To say a land bank is not account- Projects that meet the program unsafe eyesores with broken windows able is ridiculous,” Blood said. “Land requirements for the Affordable and sprawling weeds. banks are policy-driven, they’re trans- Housing Trust Fund, the Business “The builders in my community parent, all transactions are publicly Innovation Act, the Job Training see land banks not as competition, accountable.” Cash Fund and the Site and Building but as part of the process,” Quick Sen. Matt Williams of Gothenburg Development Fund and are located in said. “These are properties that they said he’d been contacted by officials an opportunity zone are given prior- do not want to acquire and are not on from the four largest towns in his ity consideration for funding under the tax rolls.” district, and each expressed concern the bill. Sen. John Stinner of Gering sup- about blighted properties. Lawmakers approved LB87 on a ported the bill, which he said would “And they have no solution to how 49-0 vote. address abandoned and dilapidated to correct that situation,” Williams properties—a persistent issue in his said. Land bank expansion stalls district exacerbated by a downturn The Legislature moved on to the in farm incomes and recent flooding. next item on the agenda without voting A bill that would allow municipali- “Rural Nebraska needs [land on LB424 or pending amendments. ties throughout Nebraska to create or banks] worse than Omaha,” Stinner Per a practice implemented by Speaker join land banks stalled on general file said. “Rural Nebraska [towns] need Jim Scheer, the sponsor of a bill that April 17. another tool to help make their com- is facing a potential filibuster must LB424, as introduced by Grand munity look the best that it can look.” demonstrate sufficient support for a Island Sen. Dan Sen. Mike Hilgers of Lincoln said cloture motion before the measure will Quick, would allow he opposed the bill because board be scheduled for additional debate. any municipality in members of a land bank could live Nebraska to join outside the communities in which they Ballot measure for TIF repay- an existing land exist and could benefit financially from ment extension approved bank—a tax-exempt projects under the land bank’s purview. political subdivi- “If you think it is important to Voters will determine whether to sion that acquires, Sen. ensure that the members who are extend the maximum length of time

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 13 April 15 - 18, 2019 to repay tax-increment financing indebtedness in certain cases under a measure approved by lawmakers April 18. LR14CA, introduced by Sen. Justin Wayne of Omaha, will place a pro- posed amendment to the Nebraska Constitution on the November 2020 general elec- tion ballot. Sen. Justin Wayne If approved, the amendment will authorize the Legislature to extend the maximum repayment period for TIF indebtedness from 15 to 20 years if, due to a high rate of unemployment combined with a high poverty rate as determined by law, more than half of the property in a project area is desig- nated as extremely blighted. State law defines an extremely blighted area as a census tract with an average unemployment rate that is at least 200 percent of the average state unemployment rate and an average poverty rate of more than 20 percent according to the most recent federal Unicameral Youth Legislature decennial census. Lawmakers voted 43-2 to approve registration open LR14CA. g igh school students with an based on legislation considered during Hinterest in law, government, the current legislative session. leadership or public speaking are Registrants are encouraged to ap- encouraged to register for the 2019 ply for a Speaker Greg Adams Civic Unicameral Youth Legislature, which Scholarship award, which covers the Committee will convene June 9-12. full cost of admission. Applicants The Unicameral Youth Legislature must submit a short essay. Other $100 Hearing is a four-day legislative simulation con- scholarships also are available. ducted at the State Capitol Building The University of Nebraska–Lincoln’s Wednesday, April 24 and coordinated by the Clerk’s Office Extension 4-H Youth Development Of- Joint hearing: of the Nebraska Legislature. Student fice coordinates housing and recreational Revenue Nebraska Retirement Systems senators will sponsor bills, conduct activities for the camp as part of their Education committee hearings, debate legisla- Big Red Summer Camps program. Room 1510 - 4:00 PM tion and discover the unique process Registration forms can be obtained AM1381 to LB289 (Linehan) Change of the nation’s only unicameral. from the Legislature’s Unicameral provisions relating to county assessor Students will learn about the inner Youth Legislature page: www.Nebras- inspections of real property for workings of the Legislature directly kaLegislature.gov/uyl. property tax purposes from senators and staff. Bills will be The registration deadline is May 15.

PAGE 14 • UNICAMERAL UPDATE • 106TH LEGISLATURE April 15 - 18, 2019 How a Bill Becomes Law

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

Former state senators were invited to the George W. Norris Legislative Chamber April 17 to be recognized by the Legislature.