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January 11, 2019 Keigher & Associates, LLC 1320 Lincoln Mall, Suite 10, Lincoln, Nebraska 68508 KK Timothy P. Keigher [email protected] Phone: (402)-474-3810 Weekly Legislative Report for January 11, 2019 HAPPENINGS IN THE NEBRASKA LEGISLATURE THIS WEEK The 106th Legislature, 1st Session, commenced on Wednesday, January 9, 2019 to begin their 90-day session (aka, Long Session). The 2019 Session began by welcoming 13 new members to the body, 11 whom were elected last November and two that we appointed to fill seats that were vacated by senators who were elected to other offices. The new senators are: District 14 John Arch of La Vista, Executive vice president for Boys Town. District 32 Tom Brandt of Plymouth, Farmer. District 6 Machaela Cavanaugh of Omaha, Non-profit employee. District 10 Wendy DeBoer of Omaha, Attorney. District 30 Myron Dorn of Adams, Farmer, former Gage County board chairman. District 40 Tim Gragert of Creighton, Retired U.S. Natural Resources Conservation Service Employee, retired Army National Guard officer District 16 Ben Hansen of Blair, Chiropractor, small-business owner. District 8 Megan Hunt of Omaha, Small-business owner. District 49 Andrew La Grone of Gretna, was appointed to replace Senator Murante who was elected State Treasurer. Attorney, former legal counsel for the Legislature’s Government Committee District 12 Steve Lathrop of Omaha, Trial attorney. District 22 Mike Moser of Columbus, Small-business owner, former Columbus mayor. District 38 Dave Murman of Glenvil, Farmer. District 1 Julie Slama of Peru, was appointed to fill Dan Watermeier's seat as he as elected to the PSC. Para-professional at Auburn Public Schools. These newly elected thirteen joined 13 members who were re-elected to the Legislature. The 2019 Legislature is made up of 30 senators who identify with the Republican party, 18 who affiliate with the Democratic party and one who is an independent. The 106th Nebraska Legislature convened Jan. 9 for its 90-day first session. Thirteen new members and 13 re-elected senators were sworn into office, and lawmakers elected chairpersons of the Legislature’s standing committees. As with the beginning of each new legislature, the first day was spent electing a Speaker and committee chairs. Senator Jim Scheer, Norfolk, was elected to a second term as Speaker by his colleagues. Unlike two years ago when Republicans banded together to take over chairmanship of all but one committee, this year the committee chair elections were more evenly distributed. COMMITTEE ON COMMITTEES FINAL REPORT Senator Hilkemann offered the following Committee on Committees report: Agriculture (8) Rm. 1524 - Tuesday Halloran (C), Blood, Brandt, Chambers, Hansen, B., Lathrop, Moser, Slama Appropriations (9) Rm. 1003 - Monday, Tuesday, Wednesday, Thursday, & Friday Stinner (C), Bolz, Clements, Dorn, Erdman, Hilkemann, McDonnell, Vargas, Wishart Banking, Commerce and Insurance (8) Rm. 1507 - Monday & Tuesday Williams (C), Gragert, Howard, Kolterman, La Grone, Lindstrom, McCollister, Quick Business and Labor (7) Rm. 1524 - Monday Hansen, M. (C), Chambers, Crawford, Halloran, Hansen, B., Lathrop, Slama Education (8) Rm. 1525 - Monday & Tuesday Groene (C), Brewer, Kolowski, Linehan, Morfeld, Murman, Pansing Brooks, Walz General Affairs (8) Rm. 1510 - Monday Briese (C), Arch, Blood, Brandt, Hunt, Lowe, Moser, Wayne Government, Military and Veterans Affairs (8) Rm. 1507 - Wednesday, Thursday, & Friday Brewer (C), Blood, Hansen, M., Hilgers, Hunt, Kolowski, La Grone, Lowe Health and Human Services (7) Rm. 1510 - Wednesday, Thursday, & Friday Howard (C), Arch, Cavanaugh, Hansen, B., Murman, Walz, Williams Judiciary (8) Warner Chamber - Wednesday, Thursday, & Friday Lathrop (C), Brandt, Chambers, DeBoer, Morfeld, Pansing Brooks, Slama, Wayne Natural Resources (8) Rm. 1525 - Wednesday, Thursday, & Friday Hughes (C), Albrecht, Bostelman, Geist, Gragert, Halloran, Moser, Quick Nebraska Retirement Systems (6) Rm. 1525 - At call of Chair Kolterman (C), Bolz, Groene, Kolowski, Lindstrom, Stinner Revenue (8) Rm. 1524 - Wednesday, Thursday, & Friday Linehan (C), Briese, Crawford, Friesen, Groene, Kolterman, Lindstrom, McCollister Page 2 of 6 Weekly Report January 11 2019 NLICA.doc Transportation and Telecommunications (8) Warner Chamber - Monday & Tuesday Friesen (C), Albrecht, Bostelman, Cavanaugh, DeBoer, Geist, Hilgers, Hughes Urban Affairs (7) Rm. 1510 - Tuesday Wayne (C), Arch, Briese, Crawford, Hansen, M., Hunt, Lowe Committee on Committees (13) Hilkemann (C) District 1: District 2: District 3: Bostelman Howard Erdman Hilgers Lathrop Friesen Pansing Brooks Lindstrom Groene Morfeld (VC) Vargas Murman Enrollment and Review (1) Slama (C) Reference (9) Hilgers (C), Vargas (VC), Bolz, Chambers, Hughes, Kolterman, Lowe, McCollister, Scheer, Stinner (nonvoting ex officio) Rules (6) Crawford (C), Erdman, Howard, Hansen, M., Lathrop, Scheer (ex officio) Executive Board of the Legislative Council (9) Hilgers (C), Vargas (VC), Bolz, Chambers, Hughes, Kolterman, Lowe, McCollister, Scheer, Stinner (nonvoting ex officio) The first day of legislative bill introduction saw 135 bills introduced with an aggregate of 218 introduced this week. Bill introduction will continue for another seven legislative days or January 23. Other Key dates in the 2019 Legislative Session are: January 22 • (Tentative) Begin debate of motion to adopt permanent rules* • Public Hearings begin at 1:30 p.m. January 23 • Last day of bill introduction March 14, Prior to Adjournment • Deadline to submit a letter to the Speaker requesting designation of a bill as a 2019 speaker priority bill March 19, Prior to Adjournment • Deadline for designation of committee and senator priority bills March 20 • Speaker priority bills announced prior to adjournment March 28 • Date to complete committee public hearings on introduced bills Page 3 of 6 Weekly Report January 11 2019 NLICA.doc April 2 • Full-day floor debate begins April 29th to June 6th • Sometime during mid-April a “lunch hour and late nights” schedule will be announced. Senators are requested to keep their session day lunches and evenings open beginning April 29th for extended floor debate. May 2 • Deadline for budget bills to be on General File. May 22 • Deadline to have budget bills passed. May 22 • 90th Legislative Day and scheduled Sine Die adjournment. As in past years, a major topic of the session will be property tax relief, along with personal and corporate income tax relief. Add to this crafting a new biennium budget of approximately $9 billion that must be a balanced budget, throwing in other issues like the recent voter approved Medicaid Expansion, an estimated $95 million budget shortfall, and how the state decides to implement the 2018 U.S. Supreme Court ruling allowing the collection of sales tax on internet sales, plus other bills that will include the need for funding, the definition of a “long session” could live up to its name. A few of the 218 bills that are of interest: Constitutional Amendment, LR5CA, introduced by Senator Brewer, would not allow more than 33% of K-12 education to come from property taxes. Similar to Senator Brewer’s bill, Senator Erdman introduced LR3CA, which would provide state income tax credits equal to 35% of local property taxes paid. Constitutional Amendments require passage by the Legislature of 30 votes to be placed on an election ballot. Senator Wishart introduced, LB110, a bill to Adopt the Medical Cannabis Act, like the one she introduced last session and has already designated it as her Senator Priority Bill for the 2019 Session. Senators and committees have till March 19, 2019 to designate their respective priority bills. While there have been a few bills introduced thus far that look to make changes to tax policy, there are certainly many more to come, but here are a few notable ones. 2019 Tax Related Bills Bill Introducer On Liner Number LB18 Briese Adopt the Remote Seller Sales Tax Collection Act. Earmarks the collections to the property tax credit cash fund. LB50 Vargas Change individual income tax brackets and rates. Increases the top personal income tax bracket from 6.84% to 7.84% for individuals, which affects businesses that are pass- through entities. Adds surtax of 1% - $1 million plus, 2% - $2 million plus LR3CA Erdman Constitutional amendment to provide income tax credits for property taxes paid. Would provide state income tax credits equal to 35% of local property taxes paid. Like LB829 introduced by Erdman in 2018. Estimates of $500 million. LB182 Bolz Adopt the School District Local Option Income Surtax Act. Would allow an income Page 4 of 6 Weekly Report January 11 2019 NLICA.doc 2019 Tax Related Bills Bill Introducer On Liner Number surtax of up to 20% for 5yrs to reduce property taxes, for construction, remodel, or acquire real estate. LB183 Briese Change the valuation of agricultural land and horticultural land for purposes of certain school district taxes. With the exception of the repayment of bonds, ag and horticultural land would be valued at 1% for property tax purposes. Speaking of tax relief, the one issue that always accompanies the discussion is how does the state pay for such tax relief. One group, Nebraskan’s United for Property Tax Reform and Education has put out the following recommendations on how to raise the funds needed to fund tax relief and you can read the details of their plan at Nebraskans United Recommendations. Nebraskan United for Property Tax Reform and Education, as stated on their website, is (We are) a coalition of homeowners,
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