UNICAMERAL UPDATE Stories published daily at Update.Legislature.ne.gov Vol. 40, Issue 16 / Apr. 18 - 21, 2017 Tax cuts, new ag land valuation method debated he Legislature debated a bill April 21 that would change the Tway agricultural land is assessed and cut the state’s top income and corporate tax rates if projected state revenue growth meets certain targets. As introduced by Sen. Jim Smith of Papillion, LB461 proposed a technical change to state tax law. A Revenue Committee amendment would replace the bill and incorporate provisions from several other bills, including: • LB338, introduced by Bancroft Sen. on behalf of Gov. , which would change the state’s method for valu- Revenue Committee chairperson Sen. Jim Smith (right), sponsor of LB461, confers with Sen. ing agricultural and horticultural , Appropriations Committee chairperson, during floor debate April 21. land to an income-based approach; sonal exemption amounts. • LB337, introduced by Smith also Smith said the proposed tax cuts would grow the state’s on behalf of the governor, which economy by helping compete with its neighbors would use economic growth rates when attracting and retaining businesses and workers. to trigger income tax cuts; and Changing the state’s method of valuing agricultural land • LB452, introduced by Omaha Sen. would, over the long term, help to relieve the dispropor- , which would tionate burden of property taxes on farmers and ranchers, change income tax rates and per- Sen. Brett Lindstrom he added. (continued page 3) Lethal injection drug provider privacy discussed bill that seeks confidentiality for certain records threats, while still making the identity of the drug and any relating to the state’s lethal injection protocol was lab analysis publicly available. A considered by lawmakers on general file April 19. “Only the identity of the individual or the entity [would Under LB661, introduced by Heart- remain] confidential,” Kuehn said, adding that 15 of the 31 well Sen. , records contain- states with a lethal injection protocol have such shield laws. ing any information that reasonably Harassment by death penalty opponents has resulted in would lead to the identity of any the commercial unavailability in the U.S. of certain drugs person or entity that manufactures, used in lethal injection, he said, so a shield law regarding supplies, compounds or prescribes the the identity of drug providers could increase the availability substances, medical supplies or medical of such drugs for other purposes as well. equipment used to perform a lethal in- Sen. John Kuehn “LB661 is written specifically only to address public jection would be confidential and exempt from disclosure records statutes,” he said. “It does not affect the judicial under the state’s public records laws. application, sentencing or court processes regarding the Kuehn said the bill would protect providers of drugs death penalty.” used in a lethal injection protocol from harassment and Venango Sen. Dan Hughes supported the bill, noting (continued page 2)

INSIDE: Meet Sen. Hilgers • Bill enabling early teacher retirement advanced • Medical cannabis bill stalls April 18 - 21, 2017 Lethal injection drug provider privacy discussed (continued from front page) that he was involved in the initiative said the state already deviates from the public has a right to know how petition process that overturned the the principle of transparency in gov- that money is spent. Legislature’s 2015 abolition of the ernment when there is a compelling “[This bill] is designed to deprive death penalty. Voters have clearly in- reason to do so. Full disclosure of the public of information it ought to dicated their desire to have the death drug manufacturers has led to a lack have about how its government is car- penalty carried out in Nebraska, he of high quality drugs with which to do rying out the most solemn, the most said, and lawmakers have a duty to the state’s business, he said. consequential, act that a government make that happen. “Transparency is a core operating can perform,” Chambers said. “I was one who carried a petition principle for our government but it’s Sen. of Lincoln raised to get this issue back on the ballot,” not a universal principle,” Hilgers questions regarding the ability of the Hughes said. “During that process said. state Department of Correctional the pledge that I made to those that I Kuehn agreed, noting that current Services to properly administer lethal talked to was that the law was not bro- deviations from full transparency in- injection drugs without knowing their ken, the process was broken,” Hughes clude correspondence between state source. said. “And if indeed the voters of the senators and their constituents, names A recent state audit uncovered state of Nebraska gave us this law back, of stockholders in companies that re- serious mismanagement of existing I would do whatever I could to fix the ceive tax incentives and the identity of pharmaceutical procedures within the process.” finalists for some high-paying state jobs. department, Bolz said, which should Sen. of Lincoln “We all know and can agree that be a cause of concern regarding how opposed the bill. Manufacturers and there are instances where that pri- the new lethal injection protocol pharmacies involved in lethal injection vacy [interest] outweighs the need would be carried out under the bill. are not private actors whose privacy for transparency and full disclosure,” “Can we trust this [agency] to should be protected, he said, but rath- Kuehn said. implement these medications as they er entities that should be considered Omaha Sen. op- should be, especially when there is “agents of the state” who must comply posed the bill and offered a series of not clarity and transparency about the with public records laws. amendments in an effort to extend source of these drugs?” Bolz said. “In “When the state is executing its debate. The courts have stated that other words, is this the right time to own citizens, the process should be as open records laws should be applied discuss this policy change?” transparent as possible,” Morfeld said. liberally when it comes to the expendi- The Legislature adjourned for the But Lincoln Sen. ture of public funds, he said, because day without taking action on LB661. g 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 and follow us on Twitter.com/UnicamUpdate.

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PAGE 2 • UNICAMERAL UPDATE • 105TH LEGISLATURE April 18 - 21, 2017 Tax cuts, new ag land valuation method debated (continued from front page) “We have a tax problem in the until the rate reaches state,” Smith said. “The answer is not 5.99 percent. simple and can only be found through Beginning in 2018, a compromised and consistent effort. agricultural and hor- And it must be both reasonable and ticultural land would affordable to meet the standards of be assessed using an Nebraska’s businesses and Nebraska’s income-based ap- citizens.” proach instead of the The bill would collapse the bot- current market value tom two personal income tax brack- approach. ets — with rates of 2.46 percent and A new committee 3.51 percent, respectively — into one led by the state tax bracket, which would pay a rate of 3.25 commissioner would percent, in 2019. The bill also would establish capitaliza- decrease the state’s top corporate tion rates for each income tax rate from 7.81 percent to class of agricultural 7.59 percent that year. or horticultural land, To help pay for those cuts, the bill including irrigated Sen. Lydia Brasch said the income-based valuation method would eliminate income tax exemp- cropland, dryland would be a more fair and accurate way to assess agricultural tions for some high earners, Smith cropland, grassland and horticultural land. said. LB461 also would suspend two used for grazing, grassland use for capitalization rate set by a committee. tax credit programs: the New Markets haying, wasteland, nurseries, feedlots Even though LB461 is not perfect, he Job Growth Investment Act and the and orchards. said, it would provide needed relief to Nebraska Job Creation and Mainstreet The committee would ensure that the state’s agriculture industry. Revitalization Act. aggregate agricultural use value for “Right now, property taxes are kill- Nebraska’s top individual income each class of land is between 55 and 65 ing our No. 1 industry,” Hughes said. tax rate would be reduced in eight percent of the actual value and the bill Sen. Burke Harr of Omaha op- increments by roughly 0.1 percent per would cap annual growth in aggregate posed the bill, saying that a recent year beginning in 2020 if the expected agricultural use value at 3.5 percent. report commissioned by the state De- rate of revenue growth from year to Brasch supported the proposal, say- partment of Economic Development year exceeds 3.5 percent. Assuming ing that income-based valuations would recommended that the Legislature cuts were triggered every year, the rate better reflect farmers’ ability to pay their focus on improving education, health would drop from 6.84 percent in 2020 taxes and provide them some relief from care, housing and workforce develop- to 5.99 percent in 2027, for a total the high property taxes they have paid in ment for economic growth. It did not reduction of 0.85 percent. the last decade due to increasing valua- recommend tax cuts, he said. The bill would give tax credits to tions. Income-based valuation methods “Do you really think that’s going to low-income earners and increase the — which are used in nine other states, drive [growth]?” Harr said. “Or do we earned income tax credit from the cur- including Nebraska’s neighbors — are want to be focused like a laser and say rent 10 percent to 11 percent in 2019 tried and sound, she said. we want to incentivize high-demand, and 12 percent in 2020. “Had it been done 10 years ago, high-skill, high-wage jobs?” Also beginning in 2020, the bill we wouldn’t be standing here in this Lincoln Sen. Kate Bolz also spoke would reduce the top corporate in- situation today,” Brasch said. against LB461, saying that it would be come tax rate by 0.2 percent per year Venango Sen. Dan Hughes also financially irresponsible to tie income if the projected rate of state revenue supported the bill, although he said he tax cuts to projected growth rather growth exceeds 4 percent for the next is concerned that the proposed valu- than actual growth. fiscal year. The cuts would continue ation method relies on an arbitrary “Revenue projections are more art (continued page 12)

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 3 April 18 - 21, 2017 Meet the Senator Hilgers follows his heart back to Nebraska en. Mike Hilgers doesn’t take the sometimes conten- Since coming back to Nebraska, Hilgers and his wife tious nature of legislative floor debate personally. As have started a family and are the parents of three young Sa practicing litigator for the past 13 years, the Omaha girls: 5-year-old Alice, 2-year-old Elsie and 7-month-old native has learned that those who oppose you one day may Clara Jane. With two active parents, it’s a juggling act, be on your side the next. he said. “In my line of work, people are literally paid to oppose “The youngest is my alarm clock now,” Hilgers said, me and my client’s interests,” Hilgers said. “It is a great adding that the couple has learned to cut out anything training ground to learn that you can respect your op- extraneous in their lives. For his part, the senator has de- ponents and have collegial veloped a motto for getting relationships no matter how through session: “If it’s not adversarial the situation an emergency, I’ll see you in gets.” June.” That focus on harmoni- When asked if there’s ous relationships started anything he might enjoy long before his current pro- doing when session finally fessional or legislative ca- does end, Hilgers offered an reers. As the middle child animated response. in a family of high-achieving “I’m excited to take my siblings – including several oldest daughter on a trip doctors and lawyers – Hilg- around the state to see the ers found ways to develop sights and the history,” he strong family ties. So much said. “The best trip my fam- so that all five siblings at- ily ever took was several tended Baylor University as years ago when my siblings undergraduates. and I all piled into an SUV Turns out, though, it and spent a week hitting the wasn’t necessarily academics backroads of Nebraska. We that were the draw. had no plan and only two “My brothers were there rules: avoid interstates and and the weather was warm big cities – the trip was the – it wasn’t a sophisticated destination. I’m excited to calculus,” he laughed. “But, share that experience with I did meet my wife Heather her.” there, so it was the best deci- Sen. Mike Hilgers, his wife Heather and their three daughters attended an The best part, he said, was Easter egg hunt at North American Martyrs Catholic Church in Lincoln. sion I could have made.” having no cell phone service Though they met and were friends in college, the two and really connecting with family. They took photos of didn’t date until meeting again several years later in Dallas small town signs, stopped at neglected historical markers after he’d graduated from law school at the University of and went where the road took them. Chicago. She also is an attorney and, by the new senator’s “People tend to take for granted how beautiful and estimation, an “all-star” at juggling career, family and ex- full of history this state is,” he said. “I don’t want to do tensive community involvement. And he appreciates how that. With young children and a growing small business, lucky he is. I want to spend my time in the Legislature making sound “Convincing a Texan to move to Nebraska is maybe my decisions that enhance the quality of life in Nebraska.” g biggest achievement,” he joked.

PAGE 4 • UNICAMERAL UPDATE • 105TH LEGISLATURE April 18 - 21, 2017

He said it represents a compromise by Sen. of Albion, which between balancing the state budget would remove a and maintaining education funding, budget and levy but he said such small increases in limitation exemp- Adjustments to state aid to education spending are unsustainable. tion for the money schools amended, advanced “We cannot sustain just 1 or 2 per- a school district cent increases in education spending agrees to pay teach- Lawmakers amended and advanced and maintain the high-quality educa- ers and administra- a bill April 19 that would adjust the tion that we’ve been able to provide to tors in exchange for Sen. Tom Briese state’s school funding formula to our children,” Morfeld said. voluntary termination of employment. match budget projections. Gering Sen. John Stinner also spoke He said placing voluntary termination As introduced in support, saying that the modification payments within a school district’s by Sen. Mike to the state’s school aid formula is neces- levy and budget limits would provide Groene of North sary to match the 2.1 percent increase more control of and accountability for Platte, LB409 in education funding in the Appropria- school spending. would modify two tions Committee’s budget proposal. Briese introduced an amendment, components of the “Our support of … school funding adopted 33-0, that would — for fiscal year formula the state is still the most significant increase in 2018-19 — exempt from budget and levy uses to distribute Sen. our budget,” he said. “It remained a limits the amounts levied to pay for 75 money to school districts. top priority.” percent of the funds used for voluntary The base limitation rate — the rate Sen. of Elkhorn termination agreements. That would at which school budgets are allowed also supported the amendment and decrease to 50 percent for FY2019-20 to grow from year to year — currently the bill, but she said the Legislature and 25 percent for FY2020-21. is 2.5 percent. LB409 would decrease needs to re-examine its school aid Briese said the amendment is a com- that rate and increase the local effort formula, which she said directs much promise that would give school districts rate, which accounts for a district’s of the state funding to a few school at or near their levy and budget limits property tax capacity. districts and little to the rest. time to move voluntary termination An Education Committee amend- “Supporting this today does not payments back under those limits. ment, adopted 34-0, replaced the bill mean that we don’t need changes,” she Omaha Sen. Burke Harr supported and would reduce the base limitation said. “We do need changes.” the amendment but said that it would rate for school fiscal year 2017-18 and Senators then voted 38-0 to ad- too strictly limit a tool that school FY2018-19 to 1.5 percent and increase vance the bill to select file. districts use to save money by encour- the local effort rate to approximately aging older, higher-paid teachers to $1.02. It also would calculate net op- Levy exemption for teachers’ retire. He said the measure is used tion funding by multiplying the net early retirement advanced predominantly by urban districts that number of option students by 95.5 have reached their levy limit. percent of the statewide average basic Senators advanced an education Harr introduced an amendment funding per student for those years. omnibus bill April 18 after amending that would allow school districts al- Groene said the bill would increase a proposal to place voluntary termina- ready at their maximum levy to exempt state aid to schools by 2.1 percent — or tion agreements under school district from budget and levy limitations up to approximately $20.8 million — next levy and budget limits. $35,000 of payments for a teacher’s year. He said the amendment also As introduced by the Education voluntary termination agreement that includes community achievement Committee, LB512 was drafted to is not part of a collective bargaining plan aid for schools in the Omaha make several technical changes to edu- agreement. learning community that lost funding cation law. A committee amendment Sen. of Bellevue after the elimination of the learning adopted on general file incorporated supported the amendment. She said community’s common levy. the provisions of several other educa- voluntary termination agreements Sen. Adam Morfeld of Lincoln sup- tion-related bills into LB512. help growing school districts that ported the amendment and the bill. These included LB457, introduced already are at their levy limits to hire

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 5 April 18 - 21, 2017 more teachers by paying older, higher but it is not defined. Introduced by Lin- to withhold from paid teachers to retire early. coln Sen. , LB645 the public the resi- “This is a really important tool for would define dys- dential address of those districts in areas where the popula- lexia, in part, as a a law enforcement tion is growing rapidly,” Crawford said. learning disability officer who applies Briese opposed the amendment, with a neurobio- and pays a $25 fee saying it contradicts the original intent logical origin that unless the address of his bill, which is to reduce property is characterized is requested in writ- Sen. taxes by controlling school spending. by difficulty with ing. Officers would be required to re- “Either these amounts should be accurate or fluent Sen. Patty Pansing Brooks new their applications every five years. within the levy lid or budget limits or word recognition and by poor spelling Wishart said the nature of law they shouldn’t,” he said. “I don’t care and decoding abilities. enforcement officers’ work sometimes what amount we’re talking about — they Pansing Brooks said adding the puts officers and their families in danger. should be within the lid and limits.” definition to state statute would send a The bill would prevent someone from Senators voted 30-6 to adopt Harr’s clear message that dyslexia is a specific simply looking up an officer’s address amendment. learning disability that needs attention. on a county assessor’s website, she said. Lincoln Sen. Adam Morfeld intro- “It is my hope that LB645 will be the “The added step of having to duced an amend- first step in a more ambitious effort to request the address in writing will ment, adopted 33-0, later provide assessments and early in- hopefully make a person with bad that would modify tervention to improve reading outcomes intentions stop and think twice about provisions of his for our kids in the state of Nebraska.” what they are doing,” Wishart said. LB175, which also Sen. Lou Ann Linehan of Elkhorn “A request made in writing would was incorporated supported the bill, saying it is a small also take away the anonymity that the into LB512 on step toward ensuring that schools internet provides.” general file. These Sen. Adam Morfeld identify dyslexic students early and A Government, Military and would prohibit operators of websites, give them the help they need. Veterans Affairs Committee amend- online services or mobile or online ap- “Most kids that have difficulty read- ment, adopted 34-0, eliminated the plications from using student data for ing — if they are exposed to intensive proposed fee. targeted advertising or creating student phonics early — will do quite well,” Lawmakers voted 32-0 to advance profiles for non-educational purposes. she said. the bill to select file. The amendment would exclude Senators adopted a technical from that prohibition any websites amendment and then voted 32-0 to and online services operated by a post- advance the bill to select file. secondary institution with a physical presence in Nebraska. Lawmakers then adopted a techni- cal amendment and advanced LB512 Prescription drug monitoring to final reading on a voice vote. changes advanced

Bill defining dyslexia in Withholding of law enforcement Lawmakers advanced a bill April 18 education law advanced officer addresses advanced that would make changes to the state’s drug monitoring Lawmakers gave first-round ap- A law enforcement officer could program. proval April 20 to a bill that would apply to have his or her home address Heartwell Sen. provide a legal definition for dyslexia, withheld from the public under a bill John Kuehn, spon- which causes difficulty in acquiring advanced from general file April 20. sor of LB223, said and processing language. Introduced by Sen. Anna Wis- the bill would make Dyslexia currently is included as a hart of Lincoln, LB624 would direct technical and pro- specific learning disability in state law, county assessors and registers of deeds cedural changes to Sen. John Kuehn

PAGE 6 • UNICAMERAL UPDATE • 105TH LEGISLATURE April 18 - 21, 2017 the law governing the state’s Pre- port of LB223. The bill strengthens “They are there to help anyone that scription Drug Monitoring Program and builds upon a law first passed in calls them, and they will never turn (PDMP) system, established in 2016 2011 by her mother who was then a down a 911 call,” he said, but they to enable prescribers and pharmacies state senator, she said, two years after need funds to pay for fuel, replace to check for suspected abuse. the death of Howard’s sister due to an equipment and train responders. Kuehn said the bill would continue opioid overdose. LB578 would enable departments to to ensure successful implementation She said the bill would keep Ne- recoup more of their costs, he said. of the PDMP in Nebraska and fur- braska “light years ahead” of other A Health and Human Services ther the program’s goals of improved states in dealing with opioid addiction. Committee amendment, adopted patient safety and the promotion of “Right now we have one of the best 34-0, became the bill. As amended, information sharing and best practices prescription drug monitoring pro- LB578 would require the state Depart- among providers. grams in the country,” Howard said. ment of Health and Human Services A Health and Human Services Following adoption of the amend- (DHHS) to design and implement an Committee amendment, adopted 40- ment, LB223 advanced to select file intergovernmental transfer program 0, replaced the bill. Kuehn said the on a 38-0 vote. relating to Medicaid managed care to amendment reflected additional work increase capitation payments in order done since LB223 was introduced. More federal funds for emer- to increase reimbursement to eligible “[The amendment] represents a gency transports advanced providers. number of people working together The program would apply to pro- to ensure continued implementation A bill that would allow public and viders owned or operated by the state of this major undertaking to ensure nonprofit emergency medical trans- or a city, county, rural or suburban patient health and safety,” Kuehn said. porters to be reimbursed by Medicaid fire district, hospital district, federally As amended, the bill would require at the same rate as hospitals and other recognized Indian tribe or other unit of individuals to be trained before ac- medical providers was advanced to government. Participation by local gov- cessing the PDMP. Training would select file April 18. ernment entities would be voluntary. be conducted by the statewide health LB578, introduced by Omaha Sen. DHHS would be required to sub- information exchange. The bill would Mike McDonnell, mit a state plan amendment by Jan. 1, strengthen provisions requiring that would establish a 2018, to provide for a supplemental information transmitted to the ex- Ground Emergency reimbursement rate and to submit change meet Health Insurance and Transport Program necessary materials to the federal Portability and Accountability Act in Nebraska to al- government annually. (HIPAA) standards. low eligible pro- Bellevue Sen. Sue Crawford sup- If a patient opts out of the state- viders to receive ported the bill, saying it would allow wide health information exchange, supplemental Med- Sen. Mike McDonnell emergency responders to be reim- prescription information regarding icaid reimbursement for ground bursed for a “dry run” – in which that patient would not be accessible emergency medical transport services. first responders are able to stabilize a by participants in the statewide health McDonnell, who served 24 years patient when called to a location with- information exchange. as a firefighter, said several states out having to transfer the individual The bill also would allow members have established similar programs as to a hospital. of a patient care team to access the a way to capture higher reimburse- “LB578 is part of an important step PDMP on behalf of a prescriber, if ment rates for ground transport of to rethink how we reimburse [emergen- he or she is a licensed or registered Medicaid patients in emergency situ- cy medical] services to recognize that health care professional who is cre- ations. Currently, the supplemental those services that are given to stabilize dentialed in Nebraska. Veterinarians reimbursement is available only to a someone – and not have to transport would be required to report dispensed hospital, physician or nursing facility. them – are very valuable and deserve to controlled substances under the bill Most of the state’s emergency be reimbursed,” Crawford said. beginning July 1, 2018. responders are financially strapped, Ralston Sen. , chair- Omaha Sen. , who answering an average of 350 calls per person of the Health and Human prioritized the measure, spoke in sup- day across Nebraska, McDonnell said. Services Committee, said some ques-

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 7 April 18 - 21, 2017

tion remains regarding whether the into the bill provisions of Hansen’s Medicaid reimbursement from federal government will allow the LB145, which would require a court to hidden assets advanced reimbursement authorized by the bill. determine a defendant’s ability to pay As a result, Riepe said, he would be a fine before imposing a jail sentence Before lawmakers passed LB72 withholding support until a determi- for nonpayment. If the defendant is in 2015, the state could recover only nation could be made. found to be unable to pay the fine, that assets from a probate estate to settle The bill advanced to select file 36-0. court could authorize an installment a Medicaid debt. That bill adopted payment plan or community service as the federal definition of an estate to an alternative to payment of the fine. include additional assets in an attempt Hansen said this would address the to combat the hiding of assets. problem of unnecessary detention in Senators advanced a bill from gener- county jails and help counties reduce al file April 19 that would provide guid- Bills considering defendants’ costs of these prolonged jail sentences. ance on implementing the expanded ability to pay fines advanced “There are people sitting in jail for asset recovery pro- offenses that carry no jail time, simply gram. Introduced A bill that would expand the because of their inability to pay fines by Columbus Sen. authority of county courts to deter- and fees,” he said. “This amounts to jail Paul Schumacher, mine a person’s competency to stand time that is de facto based on income.” LB268 specifically trial was amended April 19 to include The committee amendment incor- itemizes which as- provisions of several bills addressing porated provisions of two additional sets would be eli- defendants’ ability to pay fines. bills. gible for recovery Sen. Paul Schumacher Currently, if a party files a motion LB526, introduced by Lincoln by the state Department of Health and to determine a defendant’s compe- Sen. Adam Morfeld, would prohibit Human Services (DHHS). tency to stand trial in county court, a the detention of Schumacher said the bill would separate civil motion is filed in district a debtor unless he provide clarity and address ethical di- court. The criminal case is put on hold or she is found to lemmas faced by estate planners when while the competency determination be willfully in con- asked to hide their clients’ assets. is made by a district court judge. tempt of court. It “If you have money, it should first Judges who hear a criminal case also would require go to paying your bills at the nursing in district court, however, have the court appointed home,” he said. “Only after those bills authority to consider a competency counsel for indi- Sen. Adam Morfeld are paid, should it go to the heirs.” challenge similar to any other motion. gent debtors in the event of a con- Under the bill, a person applying LB259, introduced by Lincoln tempt hearing that could result in for Medicaid assistance would be Sen. , imprisonment. required to disclose all interest in real would allow coun- Also introduced by Morfeld and estate, trusts, corporations, limited li- ty court judges to added by the amendment is LB395, ability corporations or other entities, determine com- which would require judges to con- as well as any income derived from petency without sider a defendant’s ability to pay as a them. Failure to disclose such interests filing a separate factor in setting bond. Morfeld said it would result in any received assistance civil motion in dis- is unfair to detain people because of being declared illegally obtained and trict court. It also Sen. Matt Hansen financial restraints. subject to recovery by the state. would allow city attorneys to question “This will make it so that nonvio- If an applicant for assistance retains a defendant’s competency. lent criminals who may not be able to an interest in an asset that has been Hansen said allowing county courts pay their fines, but would otherwise, transferred to a relative for less than to determine competency would be would not be held in jail for 30 or 60 a commercially reasonable price, the more efficient and protect the defen- days,” he said. income derived from the asset transfer dant’s right to a speedy trial. Following the adoption of a techni- also would be subject to recovery. A Judiciary Committee amend- cal amendment, senators advanced the DHHS could bring an action to ment, adopted 26-3, incorporated bill to select file on a 26-4 vote. recover unlawfully obtained medical as-

PAGE 8 • UNICAMERAL UPDATE • 105TH LEGISLATURE April 18 - 21, 2017

sistance against the estate of a Medicaid charges related to the preservation, sale that the intended use of the knife recipient within five years after his or or disposition of the personal property. should be considered when charging her death and any remaining spouse. Harr said currently self-storage facil- a person with a crime. LB268 would define a recipient’s ity owners operate under the same con- He said carrying a knife in a tackle estate as any real estate, personal tract provisions as traditional landlord box or picnic basket could result in property or other asset in which the rental agreements to resolve disputes. a felony charge for possession of a recipient had any legal title or interest Establishing lien procedures specific deadly weapon under current statute. at or immediately prior to the time of to the storage industry would help LB558 would correct this by taking the recipient’s death, including insur- Nebraska modernize its system, he said. into consideration a person’s intended ance policies and annuities in which “This would provide clarity for use of such a knife when determining the recipient had an interest. self-storage operators as to the process whether or not to file criminal charges, Gothenburg Sen. Matt Williams they need to follow,” Harr said. “That Schumacher said. supported the bill, saying recovery of will benefit both the renters and the The bill was advanced to select file assets has been a difficult issue facing facility [operator].” on a 34-0 vote. Nebraska for years. Estate planners Under the bill, self-storage rental often are asked to place their clients’ agreements would include language Legalization of medical personal interest above professional notifying a renter of the lien and its cannabis stalls ethics. enforcement if a renter is found to be A Judiciary Committee amend- in default for more than 45 days. The A bill that would approve certain ment adopted 29-0, clarified that facility operator would be required to forms of cannabis for medical use assets eligible for recovery under the give written notice to the renter of de- stalled on general file April 19. Can- bill would include securities, bank fault and allow the renter an additional nabis is a plant that produces tetra- accounts, intellectual property rights, 45 days to pay all delinquent charges. hydrocannabinol (THC), a chemical contractual or lease rights and other If the charges are not satisfied with- compound known to have a variety of similar types of assets. The amend- in that time frame, the facility operator psychological and physiological effects ment also provides a mechanism may conduct a commercially reason- on the human body. to appeal any DHHS decision as to able sale of the personal property. LB622, as introduced by Lincoln whether a transfer of assets is com- Omaha Sen. Bob Krist supported Sen. Anna Wishart, would authorize mercially reasonable. the bill, saying it would benefit active the state Depart- Senators advanced the bill to select duty military members who may un- ment of Health file on a 37-0 vote. intentionally miss payment deadlines and Human Ser- due to their deployment. vices to register Self-storage lien modernization Following the adoption of a techni- only one cannabis advanced cal committee amendment, senators manufacturer in advanced the bill to select file on a each of the state’s A bill that would allow self-storage 31-0 vote. three congressio- Sen. Anna Wishart facility owners to impose liens on nal districts. Each manufacturer personal property was advanced from Bill to consider intent for knife would be required to contract with an general file April 20. possession charge advanced independent laboratory — subject to LB492, introduced by Omaha Sen. approval by DHHS — to test the safety Burke Harr, would A bill that would clarify the intent of and efficacy of its product. allow an operator Nebraska’s deadly weapon statute was Additionally, DHHS could register of a self-storage fa- advanced from general file April 20. up to four cannabis dispensaries in cility to impose a Currently, Nebraska statute consid- each congressional district. All medi- lien on all of an oc- ers possession of any knife with a blade cal cannabis would be dispensed by a cupant’s personal longer than 3.5 inches to be a deadly licensed pharmacist. property located at weapon, regardless of the owner’s in- Any county, city or village govern- the facility to recov- Sen. Burke Harr tent. LB558, sponsored by Columbus ing body would be authorized to adopt er delinquent rent, late fees and other Sen. Paul Schumacher, would clarify a resolution or ordinance prohibiting

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 9 April 18 - 21, 2017 the operation of a manufacturer or dis- one patient unless they reside in the would not lead to a drastic increase in pensary or both within its boundaries. same home and would pass a criminal recreational use. Medical cannabis has Wishart said commonly prescribed background check. Parents and legal very low levels of the hallucinogenic drugs such as opioids have become guardians would not be required to compound THC, she said, which causes one of the leading causes of accidental register with the department but would the high that marijuana is known for. deaths in the United States. However, be subject to a background check. “Medical cannabis will not cause in states that have legalized medical Lincoln Sen. Mike Hilgers opposed people to become weed smokers,” cannabis, she said, opioid overdose the bill, saying there is no significant Craighead said, “But there is a number deaths have decreased by 25 percent. scientific evidence to back up the of cancer patients and people suffer- “It would be unreasonable, arbi- anecdotal evidence given by its sup- ing from seizures who could benefit trary and capricious for the [federal porters. It would be premature for the from it.” Drug Enforcement Agency] to stand Legislature to act, he said, before the Manufacturers and dispensaries between people suffering and medical Federal Drug Administration (FDA) would pay a $25,000 application fee cannabis,” Wishart said. has adequately studied the issue. to be remitted to a Medical Cannabis A pending Judiciary Committee “We currently have a process to de- Regulation Fund to offset the cost amendment would permit cannabis termine what types of drugs should be to implement the bill. The fund also only in liquid, oil, pill or vaporized available for public consumption and would collect annual operating fees of form. A seven-person, governor- that process is through the FDA,” he no more than $75,000 from manufac- appointed Medical Cannabis Board said. “This Legislature is not equipped turers and $25,000 from dispensaries, would advise the department regard- to make this type of clinical determi- to be collected by DHHS. ing medical cannabis regulations. nation.” Under a proposed amendment Patients with qualifying conditions Sen. Adam Morfeld of Lincoln presented by Wishart, manufactur- could apply to DHHS for enroll- supported the bill, saying that the ers would be replaced by up to 10 ment on a proposed patient registry. lack of evidence is a result of politi- cannabis producers and 10 proces- Qualifying medical conditions would cal pressure. Withholding a medical sors in each congressional district. include amyotrophic lateral sclerosis treatment from a patient who could Additionally, the amendment would (ALS) or severe and persistent muscle receive relief from medical cannabis authorize up to eight dispensaries, in spasms, including those associated is impossible to justify, he said. each congressional district. A $40,000 with multiple sclerosis (MS); epilepsy “There is no reason why a Ne- annual fee would be imposed on each and seizures; pain, nausea and wasting braskan mother or father should risk producer and processor. associated with cancer; glaucoma; HIV going to prison to help their children Senators moved on to other bills or AIDS; Crohn’s disease; Tourette’s based on the advice of their doctor,” on the agenda without taking action syndrome; post-traumatic stress disor- Morfeld said. “That is exactly what is on the bill. der; anxiety; and any other illnesses for happening right now.” which cannabis provides relief as de- In opposition to the bill, Gothen- termined by a health care practitioner. burg Sen. Matt Williams said empathy Also eligible would be terminally ill for suffering people cannot outweigh patients with a probable life expectancy what is best for all Nebraskans. Legal- of under one year if the illness or its izing a Schedule I drug like cannabis Repeal of tax exemption for treatment produces severe or chronic is a slippery slope that could lead to political events advanced pain, nausea, severe wasting, hepatitis unintended consequences, he said. C, lupus, Huntington’s disease, Parkin- “One of the concerns I have is the Food and admissions fees at politi- son’s disease, Lyme disease, spinal cord fact that every state that has legalized cal events no longer would be exempt injury or opioid addiction. medical marijuana has now either from sales taxes under a bill advanced A designated caregiver administer- legalized or has pending legislation from general file April 20. ing the drug to a patient would be at to legalize recreational marijuana,” Introduced by Sen. Jim Scheer of least 21, agree to possession of cannabis Williams said. Norfolk, LB63 would eliminate a sales only for purposes of assisting the pa- But Omaha Sen. Joni Craighead and use tax exemption for admission, tient, not be a caregiver for more than said legalizing cannabis for medical use fees and food sold at political events held

PAGE 10 • UNICAMERAL UPDATE • 105TH LEGISLATURE April 18 - 21, 2017 by ballot question valuations on agricultural land have the bill, saying that it would channel committees, inde- increased over the last decade, he said, more state aid to some rural districts pendent commit- rural schools have received less and less that have more resources and away tees and political state aid because they can rely on prop- from poorer districts. In his district, party committees. erty taxes to meet their needs. This has he said, Tri County Public Schools Scheer said the placed a disproportionate burden on outside DeWitt would receive prop- bill likely would rural property taxpayers, Groene said. erty tax relief aid under LB640 even have a small finan- Sen. Jim Scheer “[LB640] puts equity back into though its tax levy is far less than that cial impact because hosts of political funding of our schools for every single of Beatrice Public Schools. events often pay sales taxes on food property tax payer in the state,” he said. “This is like a reverse Robin-Hood anyway. A pending Revenue Committee bill,” Baker said. “But I think if we as politicians amendment would replace the bill, Lincoln Sen. Kate Bolz also op- and legislators are going to try to have reducing the maximum levy for school posed the bill. By directing all of the others work on our budget problems, districts from $1.05 per $100 of tax- money in the property tax credit fund then we should be part of the solution able valuation of property in a district to school aid, Bolz said, LB640 effec- as well,” he said. to 98.7 cents per $100 beginning in tively would increase property taxes on Sen. Mike Groene of North Platte fiscal year 2018-19. homeowners in her district. supported the bill. He said an often- For tax year 2017, $224 million “I’m struggling to understand how I heard complaint among Americans would be transferred from the prop- could talk to my neighbors about why is that politicians exempt themselves erty tax credit fund to the school aid this legislation works for them and how from the laws they make. fund. A school district could qualify I can keep my commitment to that “This is just a simple message to for property tax relief aid if its property property tax credit program,” she said. the people of Nebraska [that] we don’t tax receipts exceed 55 percent of its Sen. Dan Hughes of Venango, who exempt ourselves from the taxes that total revenue. A school district that supported the bill, acknowledged that they pay,” Groene said. receives property tax relief aid would property taxes in some urban districts LB63 advanced to select file 32-0. decrease the amount of property taxes could increase if LB640 is imple- it collects by the same amount. mented, but he said property taxes on Property tax fund for For years in which a temporary agricultural land in many cases have additional school aid debated reduction in aid is in place, a district doubled in the last five years. could levy up to an additional 3 cents “I don’t think that asking for a The Legislature debated a bill April above the maximum levy after a public little bit of that shift back from the 18 that would direct more state aid to hearing and approval by two-thirds of urban homeowner is out of line,” schools that rely on property taxes for the district’s board. Hughes said. more than 55 percent of their general Henderson Sen. The Legislature adopted a technical fund revenue. supported the bill and the commit- amendment but moved on to other As introduced by Sen. Mike Groene tee amendment. Friesen said that no bills on the agenda without voting on of North Platte, LB640 would decrease schools in his district receive equaliza- the committee amendment or LB640. the maximum levy tion aid, which is state aid intended for school districts to cover the needs of school districts and direct money in that cannot be met by other resources, a property tax credit such as property taxes. He said LB640 fund — which is fund- would be a small way to address the ed by state income shift in state aid from rural districts and sales taxes — to to urban districts. New mowing restriction Sen. Mike Groene increase state aid to “If [LB640] would go into effect, it advanced districts that lose money as a result. would bring more state aid to all those Groene said the bill is intended to non-equalized districts that currently A bill that would help encourage more fairly distribute funding under receive none,” he said. wildlife habitat growth and fight soil the state’s school aid formula. As Sen. of Lincoln opposed erosion got first-round approval from

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 11 April 18 - 21, 2017 the Legislature April 20. adopted 37-0, would require landown- at the beginning of a project then is LB584, introduced by Henderson ers to mow roads and drainage ditches repaid through a special assessment Sen. Curt Friesen, at least twice annually, in July and levied upon property owners located would prohibit September of each year. within the special assessment district. counties and town- The bill advanced to select file on Currently, special assessments ships from mow- a 36-0 vote. of more than $5,000 must be paid ing ditches before within 10 years. LB159, introduced July 1 each year. by Omaha Sen. John McCollister, Friesen said the would extend the bill could result in Sen. Curt Friesen repayment period a cost savings to counties while benefit- to 20 years. He said ting local wildlife. Bill to extend infrastructure the expanded time “It would encourage the growth of repayment period advanced frame would make habitat for upland birds, pollinators it easier for prop- and song birds,” he said. “It also could Lawmakers advanced a bill from erty owners, in help reduce soil erosion and create general file April 20 that would allow conjunction with Sen. John McCollister bioswale buffers, which help reduce certain cities more time to repay spe- the city, to repay city infrastructure silt and pollution runoff water.” cial assessments levied for infrastruc- projects. The bill would not prohibit private ture projects. The first installment payment landowners from mowing roadside Cities can create a special assess- would be due 50 days after the initial vegetation on road shoulders, intersec- ment district to finance infrastructure levy date, with subsequent payments tions or entrances. projects including improvement of due after one year and annually after A Transportation and Telecom- streets, alleys, storm sewers and side- that. g munications Committee amendment, walks. Financing provided by the city Tax cuts, new ag land valuation method debated (continued from page 3) than science some years,” she said. “In fact, we rarely get it close to target.” Bolz said the proposed triggers would have cut income taxes in 2002 when the state faced a $750 million shortfall and again in 2008 when the shortfall reached $377 million. Also in opposition to the bill was Sen. Patty Pansing Brooks of Lincoln. She said she would be in favor of the proposed tax cuts if the state were not facing a large bud- get shortfall and if the cuts would not disproportionately benefit wealthy Nebraskans. “I do appreciate the fact that Sen. Smith is trying to add the [earned income tax credit] in … but in relation to what’s happening to the wealthy people, it’s a crumb,” Pansing Brooks said. Sen. Burke Harr said it is not clear that the proposed tax cuts would Sen. Bob Krist of Omaha said he is concerned about lead to economic growth and that the state instead should focus on the complexity of the proposal and that it could shift the developing its workforce. tax burden from agricultural landowners to residential and Committee for additional work, saying that a vote on the commercial taxpayers. motion could be seen as a test of the bill’s support. The “My biggest concern is the shift in tax to our residential motion failed 15-29. Thirty-three supporters are needed areas,” he said. “In some of your small towns, in some of to break a filibuster of the bill. your counties, there is nothing to shift to.” Lawmakers adjourned for the week before taking further Krist filed a motion to recommit the bill to the Revenue votes. Several amendments are pending. g

PAGE 12 • UNICAMERAL UPDATE • 105TH LEGISLATURE April 18 - 21, 2017 LEGISLATIVE DISTRICTS

For larger versions of these and other district maps, visit the maps clearinghouse page on the Legislature’s official website: www.nebraskalegislature.gov/maps

Lincoln* Omaha and vicinity*

See enlarged versions on pages 14-15. *

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 13 April 18 - 21, 2017 Metro-Area Legislative Districts

For larger versions of these and other district maps, visit the maps clearinghouse page on the Legislature’s official website: www.nebraskalegislature.gov/maps LINCOLN

PAGE 14 • UNICAMERAL UPDATE • 105TH LEGISLATURE April 18 - 21, 2017 Omaha Island Grand

105TH 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 senators were invited to the Norris Chamber April 19 to be recognized for their service to the state.