UNICAMERAL UPDATE

News published daily at Update.Legislature.ne.gov Vol. 42, Issue 20 / May 21 - 31, 2019 Legislature adjourns sine die Senators override he first ses- veto; regional public sion of the 106th Leg- transit approved T awmakers successfully overrode islature adjourned a veto May 31 of a bill that sine die May 31, adopts the Regional Metropoli- the 84th day of the L tan Transit Authority Act. scheduled 90-day Under LB492, introduced by session. Sen. Justin Wayne Speaker Jim of Omaha, an ex- Scheer of Norfolk isting transit au- said among the ac- thority that serves complishments this one or more mu- session, senators nicipalities located passed a strategic within the same and balanced bud- metropolitan sta- Sen. Justin Wayne get and enacted leg- tistical area or combined statistical islation to assist ac- area can convert to a RMTA. Omaha tive duty and retired Speaker Jim Scheer told fellow senators that many of the measures has the only transit authority created military families, in- approved this session will make a meaningful difference in the lives under existing state law that falls un- crease government of individual Nebraskans. der the bill’s provisions. transparency, spur economic develop- however, Scheer noted that several An ordinance to create, join or ment and address ongoing problems major issues were left on the table. leave a RMTA will require a two-thirds with the state’s corrections system. “It certainly was not all blue skies,” vote of the governing authority of each “Thanks for all your hard work, he said. municipality involved. If a RMTA is your dedication to this session,” he Two of the most contentious pro- created, it will be governed by a seven- said. “It will pay off. The citizens of Ne- posals were not brought to final votes person board and have the power to braska were well served and they will this year. LB183, a property tax relief issue revenue bonds. be better off than when we started.” proposal, and LB720, which would LB492 passed final reading 32-11 The speaker congratulated senators create a new business tax incentive on May 24. on collaborating with other branches program, were subjected to filibusters. In his veto message, Gov. Pete of government, most notably on a Bill sponsors were unable to garner Ricketts said the bill creates a new package of bills developed with the the 33 votes necessary to cease debate political subdivision with broader state treasurer to expand access to on either bill. taxing authority. and strengthen the state’s college sav- “Instead of working together to “LB492 amounts to an incredible ings plan. ensure that both sides could achieve a $17 million property tax increase for “Because of the multi-branch col- victory, when one bill failed the other all residents of Omaha and Douglas laboration, children will quickly followed,” Scheer said. “In the County because it moves the transit now have a 529 account opened for end, we all walked away empty-handed authority’s property tax levy authority each one of them at birth … to help again.” outside of the city and county tax lids kickstart their own college savings He encouraged senators to spend and authorizes the new authority to plan,” he said. time learning to trust one another double its existing property tax levy Despite passing 294 of the 739 bills introduced in an “ambitious” session, (continued page 2) (continued page 2)

INSIDE: Hemp industry framework authorized • Restraints for pregnant prisoners, detainees prohibited May 21 - 31, 2019

Legislature Senators override veto; regional public adjourns sine die transit approved (continued from front page) (continued from front page) before the Legislature convenes next amount.” tion was Norfolk Sen. Jim Scheer. He January so that they are able to tackle He added that residents in neigh- said city leaders in the Omaha metro tough issues during the 2020 session. boring Sarpy County could see their area should be allowed to determine “I ask all of you to take a step back property taxes increased if a RMTA whether joining a RMTA would ben- over the interim and get to know each were created. efit their communities. other again,” he said. Wayne filed a motion to override “This bill is permissive,” Scheer Gov. , in his address the veto, saying public transportation is said. “It’s not a tax increase. We’re to the Legislature, thanked senators essential to economic growth. Property allowing local entities to determine if for taking time away from their fami- taxes would not increase, he said, be- they want to participate.” lies to serve their fellow citizens. He cause a RMTA’s taxing authority would Sen. of North Platte also applauded their efforts to help be subject to an elected oversight board. opposed the motion to override. Omaha Nebraskans recover from the year’s “In order for Omaha to move needs expanded mass transit, he said, historic floods. forward, we need this,” Wayne said. but he could not support creating an- Ricketts thanked senators for pass- “Public transit is the lifeline of every other entity with the power to raise taxes. ing a bill to provide property tax relief community.” “We have too many elected boards for victims of natural disasters and Sen. of Omaha sup- in this state,” Groene said. “This is a providing a total of $11 million in aid ported the veto override motion. He huge, huge increase in government.” to the governor’s disaster program. said that residents in his South Omaha Also opposing the motion was Sen. “Because of [those] efforts, we will district have lower labor participation of Albion. He said local rebuild bigger, better and stronger rates because they do not have access political subdivisions in Nebraska are than ever before,” he said. “I know to reliable transportation. too dependent upon property taxes to that when you go home, you’ll con- “I need people in my community to fund programs and projects. tinue to work to help the people of get back to work and have opportuni- “Find me a different funding solu- your districts [to] recover.” ties,” Vargas said. “If you don’t think tion for what we’re trying to do here Senators voted 37-9 to adjourn sine regional transit and public transit aids and I’m all in,” Briese said. die. The second session of the 106th with that, then I implore you to come Senators voted 33-16 to override Legislature is scheduled to convene down to my district.” the governor’s veto. Thirty votes were Jan. 8, 2020. g Also supporting the override mo- needed. 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, twitter.com/UnicamUpdate and facebook.com/UnicameralUpdate.

Clerk of the Legislature: Patrick J. O’Donnell Editor: Kate Heltzel; Writers: Kyle Harpster, Ami Johnson, Mike Malloy; Photographer: Bess Ghormley

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PAGE 2 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019

grown in accordance with the law. provide the required documentation. The bill requires the department’s Failure to produce documentation will director to submit a state regulatory constitute probable cause to believe plan to the U.S. Secretary of Agricul- that the hemp may be marijuana or Hemp industry framework ture no later than Dec. 31, 2019. any other controlled substance, which authorized The plan will describe practices to could result in arrest of the individual maintain information regarding land and seizure of the substance. Nebraskans may grow, process and where hemp is cultivated, handled Any person intentionally violat- handle hemp and hemp products in or processed; procedures governing ing the law will be guilty of a class the state under a bill passed by the the sampling and testing of hemp; IV misdemeanor and fined not more Legislature May 24. procedures for destroying hemp plants than $1,000. Congress legalized the cultivation or products that violate the act; proce- The amendment also authorizes and sale of hemp with the 2018 Farm dures for implementing the act’s en- the department to use two existing Bill by removing it from the federal forcement provisions; and a procedure cash funds to defray the act’s imple- Controlled Substances Act. States that for conducting annual inspections of mentation costs. wish to regulate hemp production first a random sample of hemp cultivators. After voting 44-2 to adopt Wayne’s must submit a plan to the U.S. Depart- Prior to the state plan’s approval, amendment, senators advanced the ment of Agriculture for approval. a person with a valid licensing agree- bill to final reading by voice vote. LB657, sponsored by Omaha ment with the state Department of LB657 passed 43-4 and takes effect Sen. Justin Wayne, requires the Agriculture may cultivate, handle or immediately. state Department process hemp as part of the depart- of Agriculture to ment’s agricultural pilot program, establish, operate which federal law authorized in 2014. and administer a Finally, the bill creates a commission program to license that periodically will report to the gover- and regulate those nor and the Legislature on policies and Budget bills approved who cultivate, pro- practices that result in the legal growth, cess, handle or bro- Sen. Justin Wayne management, marketing and use of the Lawmakers gave final approval May ker hemp, defined as cannabis with state’s hemp industry. A fee on hemp 21 to the state’s $9.3 billion, two-year no more than 0.3 percent delta-9 seed and hemp fiber sold or delivered budget package. tetrahydrocannabinol (THC), the in Nebraska will fund the commission. Among the measures passed was plant’s main psychoactive compound. Senators voted May 22 to return LB294, the mainline budget bill, which Among other requirements, license the bill to select file to consider an funds state government for the next two holders must be at least 18; not have amendment offered by Wayne, which fiscal years. The bill was introduced by had a cultivator, processor-handler or he said resulted from negotiations re- Speaker Jim Scheer of Norfolk at the broker license revoked in the five years lated to interstate commerce with the request of the governor and includes: preceding the application; and not attorney general’s office and the Ne- • LB174, sponsored by Lincoln have been convicted of a felony related braska County Attorneys Association. Sen. , which increases to a controlled substance within the The amendment requires any per- general funds to the state Of- preceding 10 years. son other than a hemp cultivator or fice of Violence Prevention by License holders must consent to processor-handler who is transporting $300,000 per year in the next background checks; entry onto and hemp to carry a bill of lading indicating two fiscal years; inspection of all sites where hemp will the hemp’s owner, its point of origin • LB327, also sponsored by Bolz, be cultivated or processed; testing of and its destination, as well as documen- which increases behavioral hemp samples; destruction of hemp tation affirming that it was produced in health provider rates by $1.5 found to have THC concentration compliance with federal law. million in FY2019-20 and $3.6 greater than that allowed by the act; It authorizes a peace officer to detain million in FY2020-21; and and annual inspections by the de- anyone carrying or transporting hemp • LB403, sponsored by Gering partment to verify that hemp is being in Nebraska if the person does not Sen. , which chang-

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 3 May 21 - 31, 2019

es the Medicaid rate calculation ing, lawmakers passed a bill May 24 advanced the bill to final reading by for nursing facilities. intended to increase financial assis- voice vote. LB334 passed May 24 on Bayard Sen. offered tance to startup companies. a 47-0 vote. a motion to return LB294 to select file LB334, sponsored by Gering Sen. to consider an amendment that would John Stinner, eliminates the Angel Brain injury bill passed reduce the appropriation to the Uni- Investment Tax versity of Nebraska by $7.3 million. Credit, which is Lawmakers passed a bill May 24 The motion failed 13-34. Twenty-five scheduled to ter- that establishes a trust fund for brain votes were needed. minate in 2022. injury research and advocacy in Ne- After an hour of discussion, Ap- As introduced, the braska. propriations Committee chairperson bill would appro- LB481, as originally introduced Stinner offered a motion to invoke priate the $4 mil- by Lincoln Sen. cloture or cease debate and vote on lion cost savings Sen. John Stinner Kate Bolz, would the bill. The motion was adopted 39-8 to the state Department of Economic have stated intent and LB294 passed on a vote of 35-12. Development to fund programs under regarding how the Additional budget measures ap- the Business Innovation Act. state Department proved were: Elkhorn Sen. of Health and • LB293, which adjusts appro- offered an amendment during select Human Services priations for the current fiscal file debate, adopted 37-0, that instead administers the Sen. Kate Bolz year, passed 45-2; directs the $4 million to the state Mili- federal Title X Program. • LB295, which provides for tary Department—in fiscal year 2020- An Appropriations Committee the $12,000 annual salaries of 21 only—for the governor’s emergency amendment, adopted 26-7 during Nebraska’s 49 state senators, program. general file debate passed 43-4; “This amendment is brought to May 21, stripped • LB296, which funds salaries provide additional, faster relief due those provisions and benefits for judges and con- to flooding this spring,” Linehan said. from the bill. The stitutional officers, passed 47-0; Funds will be directed to the Busi- amendment in- • LB297, which appropriates ness Innovation Act beginning in stead incorporat- funds for reaffirmed and new FY2021-22. ed LB642, intro- capital construction projects, The bill also requires DED and the duced by Omaha Sen. Mike McDonnell passed 38-9; Appropriations Committee to assess Sen. Mike McDonnell. • LB298, which repeals and cre- and evaluate the financial status and The bill now creates the Brain ates funds and makes certain economic impact of programs funded Injury Trust Fund, which will consist fund transfers, passed 46-2; under the Business Innovation Act of grants, general fund appropriations • LB299, which makes a $54.7 going forward. and transfers authorized by the Legisla- million transfer to cover costs LB334 includes provisions of ture and any contributions designated for two additional high security LB452, sponsored by Elmwood Sen. for the purpose of the fund. housing units for the Depart- Robert Clements, The bill transfers $500,000 annu- ment of Correctional Services, which transfer ally to the Brain Injury Trust Fund passed 43-4; and Cass County from from the Nebraska Health Care Cash • LB464, which provides for pay- its current plan- Fund, beginning in fiscal year 2020-21. ment of claims against the state, ning and devel- McDonnell said that more than passed 46-1. opment region to 36,000 Nebraskans are living with a Region 8. The pro- brain injury, and that his proposal Bill to end tax credit amended, visions also place Sen. Robert Clements will provide a wide range of support approved a moratorium on future boundary to victims and families. Individuals changes until July 1, 2020. who have sustained a traumatic brain After amending it to provide aid to Following adoption of the Line- injury often encounter problems with Nebraskans affected by recent flood- han amendment May 21, lawmakers medical care and employment, he

PAGE 4 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019 said, as well as financial burdens and Brain Injury Oversight Committee an impairment diagnosed by an otolar- emotional distress. that will: yngologist with an auditory assessment “Brain injury can happen to any- • develop criteria for expendi- completed by a licensed audiologist. A one, anywhere at any time,” McDon- tures from the trust fund; hearing aid must be purchased from nell said. “It is not an occurrence • provide financial oversight and a licensed audiologist with medical that anyone plans for and, far too direction to UNMC in manage- clearance from an otolaryngologist in often, the extent of the injury can go ment of the trust fund; and order to be covered. undiagnosed for days, months and • represent the interests of indi- Small business group health plans even years.” viduals with a brain injury and are exempt from the bill’s provisions. Omaha Sen. opposed their families through advocacy, Insurance companies that can show the amendment, saying the Nebraska education, training, rehabilita- that expenses associated with hearing Health Care Cash Fund, which was tion, research and prevention. aids would exceed 1 percent of pre- created with tobacco settlement The committee amendment origi- mium dollars collected per year will funds, pays for a wide variety of health nally fell two votes short of adoption, be exempt for one plan year. programs for the state and must be but Sen. of Lincoln LB15 caps covered expenses at protected. She said a 2018 report by filed a successful motion to reconsider $3,000 over four years and will take the state’s chief investment officer that vote. Following adoption of the effect Jan. 1, 2020. indicated that the fund’s sustainability amendment May 21 on the second Lawmakers passed the bill on a is at risk at current expenditure levels. attempt, LB481 advanced to select 48-0 vote. “We are fiscal stewards in this file 32-1. state,” Howard said. “We have got to Senators passed the bill May 24 on stop taking money out of the Health a vote of 41-1. Care Cash Fund.” Bolz supported the amendment, saying the Health Care Cash Fund is Bill to authorize restraint, in good fiscal shape and can afford removal of students pulled to provide the $500,000 annually to from committee the Brain Injury Trust Fund. She said the Appropriations Committee has Hearing aid coverage for A bill that would give teachers legal studied the fund sufficiently and that children approved protection for defending themselves the bill will be a good investment for and others against violent students the state. Lawmakers gave final approval May was advanced to general file May 21 “While the caution is appropriate 23 to a bill that requires most health after a successful procedural motion. regarding the use of the Health Care insurance plans to pay for hearing aids As introduced by North Platte Sen. Cash Fund, people with traumatic for young Nebraskans. Mike Groene, LB147 would authorize brain injuries—if they have escalating LB15, introduced by Bellevue Sen. a teacher or admin- needs—are at risk of reaching an insti- , adopts the Children istrator to “use the tutional level of care that can be more of Nebraska Hear- necessary physical expensive,” she said. ing Aid Act. The contact or physical The Brain Injury Trust Fund will bill requires most restraint” to con- be administered through a contract health plans to trol a student who with the University of Nebraska cover expenses as- becomes physically Medical Center for administration, ac- sociated with hear- violent and autho- Sen. Mike Groene counting and budgeting purposes and ing aids for Ne- rize a teacher to have a disruptive used to pay contracts for assistance to braskans younger Sen. Carol Blood student removed from the classroom individuals with brain injuries. No than 19, including evaluation, fitting, under certain circumstances. more than 10 percent of the fund may programming, repairs and auditory A teacher or administrator would be used for administration. rehabilitation and training. not be subject to legal action or ad- The bill also creates a 12-member A hearing impairment is defined as ministrative discipline if he or she

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 5 May 21 - 31, 2019 was acting in a “reasonable manner.” er leader in this body try to subvert the of the residents are diagnosed with a Groene filed a motion to place the work of his own committee,” she said. mental illness. bill on general file, even though the Fremont Sen. also op- Walz said the State Licensed Care Education Committee has not voted posed the motion. She said the Educa- Oversight Committee, which issued a to advance it. Senators voted 25-14 to tion Committee discussed fewer than report to the Legislature in December adopt the motion, which requires a half the bills referred to it this session of 2018, should be continued. The majority vote of the Legislature. and that the committee spent more time committee arose from concerns that Groene said the motion was appro- on LB147, which was designated a com- many facilities across Nebraska that priate because the committee is split mittee priority, than any other proposal. are licensed by the state Department 4-4 on whether to advance LB147 to “I find it very disheartening—out of of Health and Human Services are the full Legislature. all the issues facing the education system not meeting residents’ basic needs, “At the end of the day, we came to an in Nebraska—that this is the one we have she said. impasse along political [and] ideological prioritized, while at the same time we Concerns remain, Walz said, in- lines,” he said. “This situation, I believe, have so many other good bills to discuss cluding a lack of adequate oversight is why the pull motion is in our rules.” sitting in committee,” Walz said. staffing at DHHS and unsanitary and Sen. Lou Ann Linehan of Elkhorn Sen. of Lincoln unsafe living conditions. supported the motion. She said ad- said she would not support Groene’s “We must do everything possible vancing the bill to general file would motion because stakeholders did not to ensure assisted living facilities are pressure the state teachers’ union and have enough time to reach a compro- clean, safe and healthy places where an organization representing school mise. She said she was, however, willing residents are treated with respect and administrators to reach a compromise. to work with Groene on a proposed provided the necessary care and sup- Linehan said she successfully used interim study on school safety. ports that will allow them to live the the motion in a previous session to free a “I thought we were going to get most dignified life possible,” she said. reading proficiency bill that was stuck in there this year on LB147, but we need The committee is tasked with the Education Committee. After the bill more time,” Pansing Brooks said. examining the lack of adequate con- reached the floor, she said, stakeholders “Important policies cannot be made ditions at state-licensed care facilities, worked harder to reach a compromise, without deliberation.” the treatment of individuals residing which passed the following year. LB147 was not scheduled for gen- in such facilities, the effectiveness of “I think this is the same process,” eral file debate this session. DHHS regulation and licensure and Linehan said. “It focuses everybody— how the department implements and they will have to sit down at a table administers its behavioral health ser- and figure out what we’re going to do.” vices through the behavioral health Glenvil Sen. Dave Murman also regions. supported the motion, saying LB147 is An Executive Board amendment, important enough to warrant pulling Continuing legislative oversight adopted 45-0, changed the proposed it from committee. authorized for care facilities committee from an investigative to an “I think it’s time that we have this oversight body. broader discussion on the floor,” he The Legislature voted May 30 to re- Sen. of Lincoln, said. authorize a special legislative commit- chairperson of the Executive Board, Sen. Sara Howard of Omaha op- tee to examine certain state-licensed said the amendment also changed posed the motion, saying it would care facilities. the resolution to mirror that of the undermine the Legislature’s committee LR104, spon- previous committee by removing refer- process. Howard, chairperson of the sored by Fremont ences to hiring outside legal counsel, Health and Human Services Commit- Sen. Lynne Walz, consultants and investigators and tee, said senators are subject matter reauthorizes a leg- eliminating the committee’s ability to experts on the issues that come before islative committee issue subpoenas. their committees and that the rest of the that was approved The seven members of the State- Legislature relies on them to vet bills. in 2018 to study Sen. Lynne Walz Licensed Care Facilities Oversight “I think it’s concerning to see anoth- assisted living facilities where many Committee will be appointed by the

PAGE 6 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019

Executive Board. The committee will LB538, introduced by Omaha Sen. trol Commission’s ability to close issue a report to the Legislature by , adds establishments due to violations of Dec. 15, 2019. electronic video the Liquor Control Act. The resolution was adopted on a games of skill to the Those provisions were removed 42-0 vote. definition of a me- and replaced with portions of LB584, chanical amusement introduced by Sen. Mike Hilgers of device and requires Lincoln, which re- the department to duce from 75 to 60 determine if such Sen. Steve Lathrop the percentage of devices are games of skill or chance. fruit or other suit- Vaping, smoking ages raised Device distributors will pay a $500 able agricultural application fee, submit a sample game product grown in A bill intended to reduce the use to the Nebraska Department of Rev- Nebraska required of vaping products by minors passed enue, provide evidence that the device to meet the defini- Sen. Mike Hilgers May 24. is a game of skill and provide an affi- tion of a farm winery. LB149, introduced by Grand Island davit to the tax commissioner that no The bill also increases from one Sen. , functional changes will be made to the to four the number of branch outlets raises the legal age device’s hardware or software without that allow sampling and sale of a farm from 18 to 19 for the commissioner’s approval after the winery’s product. purchasing and pos- license is granted. LB592 passed on a vote of 47-0. sessing electronic LB538 also requires game owners to nicotine delivery pay an annual $250 licensure fee per de- systems, flavored vice and sets a maximum of four devices liquids containing Sen. Dan Quick for establishments up to 4,000 square nicotine and tobacco products. feet in size. Larger establishments are Individuals younger than 19 who allowed one additional device per 1,000 purchase or use tobacco, electronic square feet up to a maximum of 15. Census committee bill narrowed, nicotine delivery systems or flavored Possession of an illegal device approved liquids containing nicotine will be will be a Class II misdemeanor. Me- guilty of a Class V misdemeanor, and chanical amusement device owners A bill intended to increase Ne- an individual selling or providing are allowed to continue operating braska’s participation in the 2020 U.S. such products to those under 19 will existing devices while the department census passed May 31. be guilty of a Class III misdemeanor. conducts its review. LB436, as introduced by Sen. Matt The bill does not apply to alterna- The bill establishes 19 as the legal Hansen of Lin- tive nicotine products or devices that age to play such devices and bars use coln, would cre- are not sold in combination with a of credit or debit cards for payment. ate the Complete substance containing nicotine, to- LB538 was approved on a 44-0 vote. Count Commis- bacco or tobacco derivatives. sion consisting of LB149 was approved on a vote of Farm winery definition changed Nebraska’s speaker 45-0. of the Legislature, Nebraska farm wineries were rede- governor, secretary Sen. Matt Hansen of state and other leaders from around Mechanical amusement fined under a bill the state. regulations approved passed May 24. LB592, as origi- The 17-member commission would The Nebraska Department of Rev- nally introduced create an outreach strategy involving enue will determine in advance of dis- by Sen. Tom Briese state agencies, schools, nonprofits tribution whether certain mechanical of Albion, would and other organizations to encourage amusement devices are games of skill have addressed the Nebraskans to provide accurate infor- or chance under a bill passed May 23. state Liquor Con- Sen. Tom Briese mation to census workers. It would be

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 7 May 21 - 31, 2019 required to submit an interim report sary because the governor could, by “I would like a little more time over to the Legislature by Dec. 1, 2019, and executive action, create such a commis- the interim to make sure that we are a final report by Dec. 31, 2020. sion. Erdman assured the Legislature introducing a sound, fiscally respon- A Government, Military and Vet- that Gov. Pete Ricketts would do so. sible bill and I do not want this to erans Affairs Committee amendment, “This is irrelevant,” Erdman said. impede the progress of the underlying adopted 39-2 on May 24, replaced “[LB436] should have never seen the bill,” he said. the bill. As amended, LB436 instead light of day.” Following adoption of the amend- simply grants the Nebraska State Data The bill advanced to select file on ment, senators advanced LB511 to Center program the authority to form a 39-2 vote May 24 and passed final final reading by voice vote. The bill a commission that may solicit private reading May 31 on a vote of 38-4. then passed on a 48-0 vote May 24. funds to carry out its duties. That au- thority will terminate on Jan. 1, 2021. State employee volunteerism Alternative construction method During select file debate, Hansen bill narrowed, approved approved said each missed Nebraskan would cost the state millions in funding State employee work schedules may Nebraska’s largest counties and before the next census, adding that be adjusted to allow participation in cities are allowed to use an alterna- 46 other states have formed similar approved youth mentoring programs tive design method for transportation commissions. under a bill passed May 24. projects under a bill passed May 24. “It does one thing—it makes sure Under LB511, introduced by Gordon LB583, introduced by Lincoln we have an officially designated com- Sen. , a Sen. Mike Hilgers, plete count,” Hansen said. “This is manager may allow allows counties of something the United States Census up to one hour per 150,000 or more Bureau recommends each state does.” week for a state em- residents and met- Sen. Tom Brewer of Gordon, ployee to participate ropolitan and pri- chairperson of the committee, said in an approved pro- mary class cities to an accurate census count would help gram. Paid leave for use a design-build Nebraska maintain its representation this purpose is not Sen. Tom Brewer method for proj- Sen. Mike Hilgers in Congress. authorized under the bill. ects that fall under the Transportation Also in support was Omaha Sen. The state director of personnel Innovation Act. Tony Vargas. He said about 1 percent is required to develop a process and Currently, Douglas, Lancaster and of Nebraska’s population was omitted criteria to approve programs based on Sarpy counties meet that threshold. from the 2010 census, costing the state nationally recognized standards for The bill was approved on a 47-0 vote. an estimated $20 million in federal quality youth mentoring. dollars. Vargas added that Nebraska The bill was narrowed during select receives nearly $4 billion a year from file debate May 21 when lawmakers the federal government to fund Med- accepted an amendment offered by icaid, Pell Grants, road construction Blair Sen. Ben Hansen. The amend- and other programs. ment, adopted 35-1, “It is essential, not only for the removed provisions Mobile massage therapy work of the [Legislature’s] Planning of his LB381, which approved Committee, but more importantly were incorporated for the future of our state to ensure into the bill on gen- Mobile massage therapy estab- that everyone living in Nebraska is eral file and would lishments are allowed to operate in counted,” Vargas said. “If not every- have changed the Nebraska under a bill passed May 23. one living in our state is counted in travel reimburse- Sen. Ben Hansen LB244, sponsored by Bayard Sen. the 2020 census it could have drastic ment method for state employees. Steve Erdman, authorizes such mobile implications for years to come.” Hansen said his decision was based units to be operated by individuals Sen. Steve Erdman of Bayard spoke on concerns that the provisions would licensed under the Massage Therapy against the bill, saying it was unneces- not be cost neutral. Practice Act.

PAGE 8 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019

Among other Currently, Nebraskans who qualify of the federal Social Security Act. requirements, ser- for child care subsidies become eligible Lincoln Sen. Kate Bolz offered vices may be per- for transitional child care assistance if an amendment, formed only while their income exceeds 130 percent of adopted 35-0, to a mobile massage the federal poverty level. The bill also remove provisions therapy unit is le- eliminates the program’s 24-month of her LB328 that gally parked and eligibility limit. were added to the a unit cannot con- Sen. Steve Erdman LB460 was approved on a vote of bill on general file. duct business within 300 feet of a 48-0 and takes effect immediately. Bolz said concerns brick and mortar licensed massage were raised by the Sen. Kate Bolz therapy establishment. Medicaid managed care bill state Department of Health and Hu- LB244 passed on a 45-0 vote. amended, approved man Services between the two rounds of debate and that she would like to Residential child care The transition of long-term care study the issue more before next session. background checks approved facilities to the state’s Medicaid man- “This [amendment] is trying to sup- aged care program will be delayed port the Walz bill and to work in good Residential child care workers must under a bill passed May 24. faith with the Department of Health submit to a new federally mandated LB468, introduced by Fremont and Human Services,” she said. background check under a bill ap- Sen. Lynne Walz, prohibits long-term Following adoption of the Craw- proved May 24. care and supports— ford and Bolz amendments, senators LB460, sponsored by the Health including skilled advanced LB468 to final reading May and Human Services Committee, nursing facilities, 21 by voice vote. The bill passed May mandates that any adult employed nursing facilities, 24 on a vote of 43-1. at a residential child-caring agency assisted living facil- pay for fingerprinting and a national ities and home and Anatomical board provisions criminal history record information community-based updated check at least once every five years. An services—from be- Sen. Lynne Walz employee also will be checked against ing added to the state’s Medicaid man- Senators gave final approval May state sex offender, criminal and child aged care program before July 1, 2021. 23 to a bill that updates state law to abuse and neglect registries. During select file debate, Sen. incorporate provisions of the Revised The bill requires all prospective of Bellevue offered an Uniform Anatomical Gift Act. child care staff members to submit to a amendment to in- LB559, sponsored by La Vista criminal history record check prior to clude provisions of Sen. John Arch, makes a number of employment, beginning Sept. 1, 2019. her LB566, which changes to laws related to the State Child care staff currently employed was adopted 31-0. Anatomical Board. Among other will have until Sept. 1, 2021. The provisions re- provisions, the bill details who may The bill includes provisions of quire notification receive an anatomical gift under a LB341 introduced and a hearing of variety of circumstances and names by La Vista Sen. the Banking, Com- Sen. Sue Crawford the board as an approved recipient of John Arch, which merce and Insurance Committee if an anatomical gift. allow families to the state Department of Insurance The bill also removes a requirement continue to receive submits an innovation waiver to the that the board must hold any dead hu- transitional child federal government under section man body that it receives for 30 days care if their income 1332 of the . from the date of delivery and repeals a is below 185 per- Sen. John Arch Notification and a public hearing requirement that public entities must cent of the federal poverty level as long of the Health and Human Services immediately notify the board of any as the family’s income does not exceed Committee during the public com- dead human body that has not been 85 percent of the Nebraska median ment period also are required for a claimed within a certain time frame. income for a family of the same size. waiver submitted under section 1115 LB559 passed on a vote of 43-0.

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 9 May 21 - 31, 2019

Public counsel authority, program to Nebraska residents and the attending physician, any complica- children’s commission extended eliminates benefits to recipients who tions experienced and other relevant already are receiving residential fund- medical information. Senators passed a bill May 23 that ing through the home and communi- The information will be included extends a time frame for the authority of ty-based waiver program. in the annual DHHS report on abor- the deputy public counsel for institutions. LB600 passed 39-0 and takes effect tion in Nebraska. The public counsel—also known as immediately. Bellevue Sen. Carol Blood offered an the state Ombudsman’s Office—is an amendment May 23 during select file independent office that handles citi- debate, adopted 43-3, which exempts zen complaints regarding the actions breastfeeding from the state’s public of administrative agencies of Nebraska indecency statutes. Following adoption state government. of the amendment, the bill advanced to Currently, the authority of the dep- Medication abortion bill amend- final reading on a 36-9 vote. uty public counsel for institutions ex- ed, approved after cloture After more than an hour of final tends to individuals who have been pa- round debate May 30, Albrecht filed tients at a state-owned or state-operat- Senators passed a bill May 30 that a motion to invoke cloture, or cease ed regional center requires medical professionals to pro- debate and vote on the bill. The mo- within the prior 12 vide additional information to women tion prevailed 36-12. Senators then months. LB600, seeking medication abortions. passed LB209 on a 36-12 vote. introduced by Fre- LB209, introduced by Thurston mont Sen. Lynne Sen. , Salary increases approved for Walz, extends that requires medical state judges time frame to 24 providers to inform months. Sen. Lynne Walz a woman seeking Senators gave final approval May The bill includes provisions of Lin- an abortion that 21 for judicial pay raises. coln Sen. Kate Bolz’s LB330 that elimi- the first of two LB300, sponsored by Omaha Sen. nate the July 2019 termination date for drugs administered Steve Lathrop, in- the Nebraska Chil- during a medical Sen. Joni Albrecht creases Nebraska dren’s Commission. abortion—mifepristone—is not always Supreme Court The commis- effective in ending a pregnancy. judges’ salaries for sion will become a In addition to other information fiscal year 2019-20 permanent forum already required under existing law, and FY2020-21. for collaboration the bill requires a provider to inform The current salary among state, local, a woman that if she changes her mind is $173,693. Sen. Steve Lathrop community, public Sen. Kate Bolz and wants to continue a pregnancy District, county, juvenile, appellate and private stakeholders in child wel- after taking mifepristone, she may con- and workers’ compensation court judges’ fare and juvenile justice programs and sult the state Department of Health salaries statutorily are based on a percent- services. The commission’s administra- and Human Services’ website. age of the Supreme Court judges’ salaries tion will be shifted to the Legislature. The bill directs DHHS to publish and will be adjusted accordingly. Also included are provisions of information on the agency’s website Salaries will increase by 3 percent Bolz’s LB332, which revise the Youth about the effectiveness of mifepristone each fiscal year, totaling $181,588 in Bridge to Independence Program—a in ending pregnancy as well as contact FY2019-20 and $187,036 in FY2020-21. system of supports for older teenagers information for medical assistance. The bill was passed on a 43-0 vote. and young adults who are at or near DHHS will collect data from medi- the end of their time in foster care. cal providers every time a woman at- Additional district court judge The bill expands the program to tempts to continue a pregnancy after approved include young adults who age out taking an initial dose of mifepristone. of the state’s juvenile justice system. The data collected will include the Lawmakers passed a bill May 23 It also limits participation in the woman’s age, facility location, name of that increases the number of district

PAGE 10 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019 court judges in Douglas County. the Uniform Disposition of Unclaimed and potential relocation costs. LB309, introduced by Omaha Property Act if returned undeliverable Pansing Brooks also introduced Sen. Steve Lathrop, adds one district or if the deposit remains outstanding LB516, which requires the state De- court judge, increasing the number in 30 days after the initial mailing. partment of Health and Human Ser- Douglas County to 17. Following adoption of the Hansen vices to collect and report information The bill passed on a 46-0 vote. amendment May 21, the bill advanced on the trafficking of minor children. to final reading by voice vote. LB433 Provisions of LB458, introduced Landlord requirements passed May 24 on a 39-1 vote. by Omaha Sen. Steve Lathrop, expand amended, updated the definition of child abuse to in- Human trafficking, sexual clude placing a child in a situation to A bill requiring landlords to return abuse bill passed be sexually abused or exploited. It also security deposits more quickly passed expands the definition of out-of-home May 24. Senators passed a bill May 24 to child abuse to include cases where LB433, sponsored by Lincoln Sen. extend and eliminate certain statutes of the perpetrator of such abuse is not Matt Hansen, re- limitation for labor and sex trafficking. a member of the victim’s household, quires landlords auto- LB519, introduced by Peru Sen. Julie no longer has access to the victim or matically to provide Slama, eliminates is unknown or cannot be identified. the balance due on a statute of limita- Finally, portions of LB479, intro- a security deposit to tion for creation of duced by Lincoln Sen. , a tenant within 14 child pornography prohibit a law en- days of termination or labor or sex traf- forcement officer of a rental agreement. Sen. Matt Hansen ficking of a minor. from using con- If a landlord fails to return the secu- The bill increas- sent as a defense rity deposit within 14 days, the tenant es the statute of Sen. for sexual contact could recover any property or money limitations from three years to seven with a person who due to him or her, as well as liquidated for labor or sex trafficking of an adult. is detained or in damages equal to one month’s rent plus It extends the statute of limitations custody. The pro- Sen. Anna Wishart costs and reasonable attorney’s fees. for possession of child pornography visions also codify that any person If a government entity deems a to seven years, or seven years beyond detained by law enforcement is not residence to be uninhabitable due to a victim’s 18th birthday. able to consent to sexual contact. negligence, the tenant could not be It also allows law enforcement to Sexual penetration of a detainee will held liable for any damage as a direct apply for wiretap authorization to be considered first-degree sexual abuse, result of forcible removal. intercept electronic communications which is a Class IIA felony. Conviction The bill includes provisions of relating to labor or sex trafficking of could result in up to 20 years imprison- Hansen’s LB434, which extend the adults and minors. ment. Sexual contact with a detainee period of time for payment of rent The measure includes provisions will be classified as second-degree sexual after a notice of intent to terminate of four additional bills. abuse, which is a Class IIIA felony. It from three to seven days. LB517, originally introduced by carries a penalty of up to three years in Hansen introduced an amendment Lincoln Sen. Patty Pansing Brooks, prison with 18 months of post-release on select file, adopted 43-1, that allows allows a traf- supervision, a $10,000 fine or both. a tenant to recover liquidated damages ficking victim Anyone convicted under these equal to one month’s rent or twice the to recover dam- provisions will be required to register amount of the security deposit—which- ages for physi- as a sex offender. ever is less—if the landlord’s failure to cal and mental LB519 passed on a 46-0 vote. return the security deposit was willful pain and suffer- and in bad faith. ing, and the rea- Bill to clarify protection order Sen. Patty Pansing Brooks It also directs landlords to remit sonable value of process passed any unclaimed security deposit to the medical care and supplies, transporta- state treasurer for disposition under tion, housing, child care, lost wages Lawmakers passed a bill May 24

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 11 May 21 - 31, 2019 that updates application procedures distribution of intimate images. 26-14, to remove the provisions of for harassment, sexual assault and LB630, spon- LB510 from the underlying bill. He domestic abuse protection orders. sored by Lincoln said the provisions would create a LB532, intro- Sen. Adam Mor- disparate level of treatment depend- duced by Oma- feld, creates the of- ing on where a crime was committed. ha Sen. Mach- fense of distribut- Objecting to the amendment was aela Cavanaugh, ing a private image Omaha Sen. Steve Lathrop. He said harmonizes the of another person’s Nebraska should use its own legal application pro- intimate area or of Sen. standard when determining registry cedures for the a person engaged in sexually explicit requirements. three types of Sen. conduct. Following adoption of the Hilgers protection orders authorized under A person who violates this provi- amendment May 22, the bill advanced state law: harassment, sexual assault sion will be charged with a Class I to final reading by voice vote. Law- and domestic abuse. misdemeanor for a first offense, pun- makers passed LB630 on a 47-0 vote If an application for a temporary ishable by up to one year in prison, May 24. protection order is dismissed, it will a $1,000 fine or both. Second and be dismissed without prejudice. This subsequent offenses are a Class IV Monetary damages approved allows the petitioner for the protection felony, punishable by up to two years for victims of ‘revenge porn’ order to correct any missing informa- in prison with 12 months post-release tion and resubmit the application for supervision, a $10,000 fine or both. A victim of the intentional or consideration. The bill creates the offense of threatening distribution of intimate The petition for a protection order threatening to distribute intimate images could seek damages under a must include the events and dates, images with the intent to intimidate, bill passed May 24. or approximate dates, of the alleged threaten or harass a person. Violation LB680, sponsored by Bennington assault or abuse, including the most of this provision is a Class I misde- Sen. Wendy DeBoer, allows a pre- recent and most severe incidents. meanor. vailing plaintiff to The court where the petition is filed LB630 also provides an affirmative recover economic can decide to issue a temporary protec- defense for juveniles who possess a and noneconomic tion order “ex parte,” or without giving visual depiction that was knowingly damages proxi- notice to the respondent, if the peti- and voluntarily provided by another mately caused by a tioner believes the respondent poses an juvenile who is within four years of defendant, includ- immediate and significant safety risk. age of the defendant. ing damages equal If the court rejects an application The committee amendment ad- to any monetary Sen. Wendy DeBoer for a sexual assault or domestic abuse opted on general file incorporated pro- gain made by the defendant and for protection order, LB532 requires that visions of LB510, originally sponsored emotional distress. an evidentiary hearing be held within by Omaha Sen. John McCollister. If actual damages cannot be quanti- 14 days. The court will be required Under the provi- fied, the court can award reasonable to admit the original petition and af- sions, a person re- presumed damages—not to exceed fidavit into evidence. quired to register $10,000—against each defendant. Finally, the petitioner for a protec- as a sex offender LB680 also holds internet service tion order cannot be found to be in in another state as providers liable only if actively in- violation of his or her protection order. the result of a juve- volved in the creation or distribution The bill passed on a 47-0 vote. nile adjudication of the prohibited material. would have been Sen. John McCollister The bill passed on a 47-0 vote. Criminal penalties for ‘revenge required to register in Nebraska only porn’ amended, approved if the crime also requires registration Omnibus criminal justice under Nebraska law. reform bill approved Lawmakers passed a bill May 24 that Lincoln Sen. Mike Hilgers offered prohibits the intentional or threatening an amendment on select file, adopted The Legislature approved a bill May

PAGE 12 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019

24 that makes several changes to cur- can exempt certain staff members as • LB684, sponsored by Lathrop, rent criminal justice statutes. necessary. Seizure of an electronic which allows judges to sentence LB686, as introduced by Omaha communication device is authorized. a person found to have violated Sen. Steve Lathrop, would have The measure also includes provi- terms of post-release supervi- imposed new re- sions of LB739, sponsored by Omaha sion to a period of incarceration quirements on the Sen. Tony Vargas, which prohibit equal to the length of his or her Nebraska Depart- NDCS, after March original term of post-release ment of Correc- 1, 2020, from plac- supervision. tional Services for ing a member of a The bill was passed on a 46-0 vote. declaring a pris- vulnerable popula- on overcrowding tion in restrictive Prohibition on restraints for emergency. The Sen. Steve Lathrop housing. Vulner- pregnant prisoners, detainees bill was replaced with provisions of able populations approved several additional bills. include inmates Sen. Tony Vargas Among these is LB91, sponsored who are younger than 18, pregnant Pregnant incarcerated women are by Omaha Sen. Justin Wayne, which or diagnosed with serious mental afforded additional protections under allows a court to illness, developmental disabilities or a bill passed May 24. enter a deferred traumatic brain injury. LB690, introduced by Omaha judgement for a The bill does not prevent NDCS Sen. Machaela Cavanaugh, prohibits person found from establishing secure mental health the use of restraints on a pregnant guilty of com- housing or placing vulnerable inmates prisoner or detainee unless she poses mitting a crime. in temporary segregation pending an extraordinary flight or security risk. Persons granted a classification. Under the bill, if restraints are used deferred judgment Sen. Justin Wayne Finally, LB686 incorporates provi- on a pregnant prisoner or detainee, it instead can be placed on probation. sions of four additional bills, includ- must be in the least restrictive manner After successful completion of the ing: necessary. The administrator of the terms of probation, he or she will • LB90, sponsored by Wayne, detention facility must notify relevant have their charge dismissed without which removes a requirement medical staff of the risks and dangers the entry of judgment. for post-release supervision for of removing the restraints from the A defendant will not be eligible Class IV felonies; specific prisoner or detainee. for deferred judgement if he or she • LB240, spon- A detention center administrator has a previous felony conviction, sored by Lin- must document the extraordinary has received two or more deferred coln Sen. circumstances that necessitated the judgments, has received a deferred Matt Hansen, use of restraints within 10 days of an judgment in the past five years or is which allows incident. ineligible for probation. a private con- Restraints are to be removed im- Provisions of Wayne’s LB233 also tract facility to mediately if a health care professional are included in the bill. These prohibit provide treat- Sen. Matt Hansen treating a pregnant woman requests a person from bringing an electronic ment to criminal defendants it, and restraints are prohibited with- communication device into a cor- found to be mentally incompe- out exception during active labor or rectional facility or providing it to an tent to stand trial; childbirth. inmate. Violation of this provision will • LB262, sponsored by Benning- LB690 also allows a prisoner or de- be a Class I misdemeanor, punishable ton Sen. Wendy DeBoer, which tainee who is improperly restrained to by up to one year in prison, a $1,000 requires the NDCS director bring a civil action under the Political fine or both. to share the annual restrictive Subdivisions Tort Claims Act or the Attorneys, public counsel em- housing report with members State Tort Claims Act. ployees, law enforcement and first of the long-term restrictive hous- The bill passed on a 41-0 vote. responders are exempt from the ing work group prior to release prohibition. The NDCS director also of the report; and

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 13 May 21 - 31, 2019

located in an extremely blighted area if the purpose of school bond issues. it is his or her primary residence and was Briese introduced an amendment not purchased from a family member. on select file that would replace the The credit is subject to recapture bill. He said the amendment is a sim- by the state Department of Revenue plified version of LB289, introduced Housing assistance priority if the individual claiming the credit by Elkhorn Sen. Lou Ann Linehan. for extremely blighted areas sells the residence or stops using it as That bill, which approved his or her primary residence within stalled on general Affordable housing projects in five years. file, is meant to re- extremely blighted areas will receive LB86 also in- duce property taxes first priority for state assistance under cludes provisions by raising the state a bill passed by the Legislature May 24. of LB694 and sales tax rate and Introduced by Omaha Sen. Jus- LB737, both in- directing the ad- Sen. Lou Ann Linehan tin Wayne, LB86 troduced by Sen. ditional revenue to requires the state Tony Vargas of Nebraska’s public schools. Department of Omaha. Sen. Tony Vargas Briese said his amendment would Economic Devel- Under those provisions, only for- provide property tax relief for all opment to give first profit entities are required to provide Nebraskans and help modernize the priority to projects matching funds to receive assistance state’s sales tax code while avoiding located in an area from the Affordable Housing Trust contentious debate about school fund- that has been de- Sen. Justin Wayne Fund. Political subdivisions, local ing reform. clared extremely blighted when select- housing authorities and nonprofit or- “Most importantly,” he said, “it will ing projects for Affordable Housing ganizations are not required to provide give us an opportunity to show Nebras- Trust Fund assistance. matching funds. kans that we care about their plight, The fund is used to increase the The bill also requires the state De- that we hear their concerns and that supply and improve the quality of the partment of Economic Development we’re going to do something about the state’s affordable housing stock. to include more information in its property tax crisis in Nebraska.” The bill requires the governing body annual status report on the Affordable The amendment would include of a city that intends to build workforce Housing Trust Fund. The report is several measures also included in housing in an extremely blighted area required to include the total amount LB289. It would repeal a personal under the state’s Community Develop- of funds for which applications were property tax exemption and impose ment Law—or intends to declare an area received, the year-end fund balance sales tax on bottled water, candy, soft as extremely blighted for purposes of and an explanation of why any remain- drinks and ice. funding decisions under the Affordable ing funds have not been committed. It also would impose state sales tax Housing Trust Fund—first to adopt a LB86 passed on a vote of 47-0. on approximately 20 services, includ- resolution that the area is extremely ing motor vehicle maintenance and blighted after a public hearing. Final push for property tax repair; maintenance, painting and State law defines an extremely relief stalls repair of single-family homes; com- blighted area as a census tract with an mercial lawn care; dry cleaning; beauty average unemployment rate that is at A scaled-down property tax relief and personal care services; wedding least 200 percent of the average state proposal stalled in the Legislature May planning; personal training; and stor- unemployment rate and an average 22 after a failed age, moving, plumbing, HVAC and poverty rate of more than 20 percent cloture vote. certain veterinary services. according to the most recent federal As introduced The amendment would increase decennial census. by Albion Sen. a state refundable income tax credit The bill includes provisions of Tom Briese, LB183 based on the federal earned income Wayne’s LB88 that will provide a $5,000 would reduce the tax credit, which is intended to benefit nonrefundable income tax credit to any valuation of farm working people with low to moderate Sen. Tom Briese individual who purchases a residence and ranch land for incomes. The state credit would in-

PAGE 14 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019 crease from 10 percent to 13 percent Bayard Sen. Steve Erdman said he College savings proposal, of the federal credit. was concerned that passing Briese’s military housing tax exemption The proposal would direct the state proposal would lead some senators to approved treasurer to credit sales and use tax claim that the Legislature has solved revenue generated by the bill’s changes the property tax problem when it has A bill that exempts military hous- to the state’s Property Tax Credit Cash not. He said the amendment lacks ing units from property taxation Fund. It also would set the amount of spending controls and would provide and allows an income tax deduction credits granted by the fund to at least too little property tax relief. against employer contributions to state $275 million per year beginning in “This is not a significant amount to college savings accounts received final tax year 2019. anybody, anytime, anyplace,” he said. approval in the Legislature May 30. Briese said the changes would gen- “We are at the end … of the session, As introduced by Gretna Sen. erate approximately $100 million in and we’re now grasping at straws try- , additional revenue each year. ing to figure out how to get property LB470 would have Linehan supported the amend- tax relief.” allowed individu- ment, saying the major changes in After three hours of select file de- als to claim a state her LB289 proved “too heavy a lift” bate, Briese filed a motion to invoke income tax deduc- to accomplish all at once. Briese’s cloture, or cease debate and vote on tion on contribu- amendment would be a smaller step any pending amendments and the bill. tions they make toward addressing high property taxes The motion failed 23-7. Thirty-three to any Nebraska Sen. Andrew La Grone and school funding, she said. votes were needed. LB183 remains educational savings plan trust account. “It’s a step in the right direction— on select file. The plan provides tax-advantaged not as big a step as I would like—but at 529 accounts meant to encourage sav- least it’s a step,” Linehan said. Certain public power equipment ing for postsecondary education costs. Lincoln Sen. Kate Bolz said she was exempted from sales tax Contributions grow tax-deferred, and hesitant to support the amendment withdrawals are exempt from state and because the proposed increase in the Streetlights and power poles owned federal taxes as long as they are used state credit based on the EITC would by a city are exempt from state sales for a beneficiary’s qualified higher not offset the regressive effects of re- and use tax under a bill passed by education expenses. moving sales tax exemptions. lawmakers May 23. Currently, individuals other than Only working individuals with LB218, introduced by Omaha Sen. a NEST account’s participant, or families qualify for the credit, she said, , registered owner, are ineligible for the meaning some low- and moderate- adds electric gen- state income tax deduction on contri- income Nebraskans could end up pay- eration, transmis- butions they make to the account and ing more in taxes under the proposal. sion, distribution must open a separate account in order Sen. Mike Groene of North Platte and street lighting to receive the deduction. opposed Briese’s amendment, saying structures or fa- During select file debate May 21, the Property Tax Credit Cash Fund cilities owned by La Grone introduced an amendment, is unfair because it distributes credits a political subdivi- Sen. Brett Lindstrom adopted 40-0, that removed his pro- based on valuations, not taxes paid. sion to the definition of real property, posal from the bill. He said the state He said he supported the proposed thereby making those items exempt could not afford its implementation tax increases in LB289 because the bill from state sales and use tax. cost this year. also would more fairly distribute state It also excludes from the definition As amended on general file, LB470 aid to schools. of “gross receipts” the gross income includes provisions of two other bills: “I will vote for a tax increase if it is received by political subdivisions for LB444, sponsored by Omaha Sen. based on good, sound policy,” Groene the lease or use of those structures or Mike McDonnell, and LB545, intro- said. “As a fiscal conservative, I will not facilities, making that income exempt duced by Sen. Justin Wayne, also of vote [for] anything that throws money from state sales and use tax. Omaha. at something—this throws money at a LB218 passed on a vote of 48-0 and McDonnell’s proposal exempts problem.” takes effect immediately. military dwelling complexes from prop-

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 15 May 21 - 31, 2019 erty taxation but Sponsored by Elkhorn Sen. Lou Ann curs on or after Jan. 1, 2019, and before requires the owners Linehan, LB512 makes several technical July 1 of the current assessment year. of those dwelling changes to state tax It defines significant property dam- complexes to make law requested by age as damage exceeding 20 percent of payments in lieu the state Depart- a property’s assessed value in the cur- of taxes to local ment of Revenue. rent tax year if the property is located school districts, the The bill was in a disaster area and has been deemed county in which Sen. Mike McDonnell amended on gen- uninhabitable. the complex is located and an infra- eral file to include Following adoption of the Erdman structure maintenance trust fund used a proposal by Sen. Sen. Lou Ann Linehan amendment May 21, LB512 was ad- for capital repairs, maintenance and Steve Erdman of Bayard that would vanced to final reading by voice vote. improvement of the complex. have required a county assessor to The bill passed May 24 on a 45-0 vote Under Wayne’s measure, an in- report to the county board of equaliza- and takes effect immediately. dividual’s federal tion all real property that is destroyed adjusted gross in- by fire or other natural disaster be- College savings proposals come is reduced tween Jan. 1 and Oct. 1 of any year. approved by the amount The county board then would have contributed to the adjusted the value of the destroyed A bill creating three new state col- individual’s NEST property based in part on the portion lege savings programs received final account by his or of the year during which the property approval in the Legislature May 24. her employer, not Sen. Justin Wayne was intact. LB610, introduced by Omaha to exceed $5,000 per married filing During select file debate, Erdman Sen. Brett Lindstrom, creates a cash separate return or $10,000 for any filed an amendment, adopted 34-0, fund administered other return. that he said will address problems iden- by the state trea- It also prohibits a government tified in an attorney general’s opinion surer to provide program administered by any state regarding the bill’s constitutionality. incentive payments agency that provides benefits or aid The amendment instead requires to employers that to individuals based on financial need the owner of destroyed real property make matching from taking employer contributions to file a report with the county assessor contributions to into account when determining a and county clerk before July 15 of the employees’ college Sen. Brett Lindstrom person’s income. current assessment year. savings accounts established under La Grone’s amendment also au- The county board of equalization the Nebraska educational savings thorizes a cash transfer from the state then will adjust the assessed value of the plan trust. treasurer to the state Department of property to its assessed value on the date The trust provides tax-advantaged Revenue to pay an expense related to it suffered significant damage and the 529 accounts meant to encourage sav- Wayne’s proposal. county assessor will correct the current ing for postsecondary education costs. After adopting the amendment, year’s assessment roll. Any change in the Contributions grow tax-deferred, and senators advanced LB470 to final assessed value of destroyed real property withdrawals are exempt from state and reading May 21 by voice vote. is for the current assessment year only. federal taxes as long as they are used The bill passed May 30 on a vote It also requires the board of equal- for a beneficiary’s qualified higher of 43-2 and takes effect immediately. ization to give notice of the destroyed education expenses such as tuition, real property’s assessed value to the books, supplies and room and board. Valuation adjustment for record owner or agent at his or her Beginning in 2022, an employer destroyed property approved last known address. may apply to the state treasurer to The bill defines destroyed real receive the incentive payments. An em- Lawmakers passed a bill May 24 property as real property that suffers ployer whose application is approved intended to provide tax relief to those significant property damage as a result will receive an incentive payment equal whose property has been destroyed by of a calamity—a fire, earthquake, flood, to 25 percent of the matching contribu- a natural disaster. tornado or other natural event—that oc- tions made during the preceding year,

PAGE 16 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019 up to $2,000 per employee per year. Each year the treasurer will dis- Business tax incentives stall The state treasurer may approve tribute the previous year’s investment on second round up to $250,000 in incentive payments income from an associated trust fund each year. to the accounts opened during the An effort to create a new business The bill includes provisions of previous year. The fund will consist of tax incentive program to replace the LB547, introduced private contributions and any funds Nebraska Advantage Act stalled on by Sen. Anna Wis- transferred or appropriated by the Leg- select file May 24 after a failed cloture hart of Lincoln, un- islature. The bill prohibits the transfer vote. der which the state of state general funds to the trust fund. Sen. Mark Kolt- will match contribu- If funds from an account opened erman of Seward, tions to NEST ac- under the program are not disbursed sponsor of LB720, counts made on be- before the qualified individual reaches said the new pro- half of beneficiaries Sen. Anna Wishart age 30, they will be transferred to the gram, called the who meet certain income requirements. trust fund. Disbursed funds may be ImagiNE Nebras- Participants are eligible for the used only to pay the qualified higher ka Act, would be program if the beneficiary for whom education expenses associated with simpler and more Sen. contributions are made is part of a attending a college or university in transparent than the Nebraska Advan- family whose household income is not Nebraska. tage Act, focus on high-wage jobs and more than 250 percent of the federal The bill also adds to an existing improve the state’s ability to attract poverty level. definition of nonqualified withdraw- new business investment. The state will match the partici- als the distribution from a NEST “The overall tax burden in Ne- pant’s contribution if the beneficiary’s account to pay the costs of attending braska is too high for citizens, and the household income is between 200 and kindergarten through grade 12. need to grow our state has never been 250 percent of the federal poverty lev- Sen. Patty Pansing Brooks of more important,” he said. “In order el. The match will equal 200 percent Lincoln supported the amendment, to find resources to provide this tax of the participant’s contribution if the saying it includes additional changes relief, we need a competitive business beneficiary’s household income is not meant to ensure that the new pro- climate that helps grow and strengthen more than 200 percent of the federal grams could not be used to pay private Nebraska’s economy with new jobs poverty level. Matches are limited to K-12 education expenses. and new investment.” $1,000 per beneficiary per year. She said a recent federal change A Revenue Committee amend- The treasurer may approve up to allows 529 distributions to be used to ment, adopted 34-7 during general $250,000 in matching scholarships pay expenses associated with attend- file debate May 22, would replace the each year. ing a private elementary or secondary bill. Under the new program, qualify- During select file debate May 21, school, which current state law does ing businesses would receive a varying Wishart introduced an amendment, not allow. The amendment will ensure combination of incentives—wage cred- adopted 45-0, to include provisions that a future Legislature could not its, income tax credits, sales and use of LB544, sponsored by Elkhorn Sen. make a simple change to match the tax refunds and exemptions and per- Lou Ann Linehan, that create a pro- federal statute, Pansing Brooks said. sonal property tax exemptions—based gram under which each enrolled child Linehan supported Wishart’s on their level of capital investment and will have a NEST account opened for amendment, saying 529 accounts are the number of employees they hire at him or her. in wide use among the wealthy but not a minimum qualifying wage. Under the program, the treasurer among low-income Nebraskans. She The amendment also includes will send a notification explaining the said her proposal will give more Ne- provisions of LB605, introduced by program to the parent or legal guard- braska children hope for their future. Omaha Sen. Brett Lindstrom, which ian of each Nebraska resident born After adopting the Wishart amend- would create a tax credit for companies on or after Jan. 1, 2020. The parent ment May 21, senators advanced that produce sustainable materials and or legal guardian may exclude his or LB610 to final reading by voice vote. renewable chemicals using agricultural her child from the program. Any child Senators passed the bill May 24 on a products. not excluded will be deemed enrolled. 48-0 vote. Kolterman said the ImagiNE Ne-

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 17 May 21 - 31, 2019 braska Act would reduce state revenue calendar years. existing businesses are asking instead by an average of approximately $106 If the estimate exceeds a “base for workforce development. million per year over 10 years. authority” of $125 million for any “We as a Legislature only get a Senators adopted two additional calendar year from 2020 to 2023, the chance to review these programs every amendments on DED director could not approve any five or 10 years,” Brandt said, “so let general file. The additional applications unless the us get it right.” first, adopted 28- Legislature’s Executive Board approves Albion Sen. Tom Briese also op- 10, was offered by the director’s request for additional posed the bill, saying it would be an Lincoln Sen. Kate authority. “irresponsible reversal of priorities” Bolz to add provi- Stinner, who supported LB720, for the Legislature to advance business sions of her LB527, said the changes would make it easier tax incentives without also providing which would create Sen. Kate Bolz for the Legislature to budget for the property tax relief. a program to provide job training forgone tax revenue. He said business Briese said he changed his mind grants to employers. tax incentives are a long-term invest- and voted to advance LB720 from Sen. Anna Wishart, also of Lin- ment that benefit the state by spurring general file with the understanding coln, offered the second, adopted growth and investment that lead to that senators also would advance his 30-13, which would require that new new property, income and sales tax LB183, a property tax relief proposal. employees be full-time as defined in revenue. With LB183 stalled, he said, LB720 the Affordable Care Act in order for Also in support of the bill was should go no further. their hours to count toward the pro- Gothenburg Sen. Matt Williams, North Platte Sen. Mike Groene posed wage credits. who said he has seen firsthand how said that by abating taxes on certain A qualifying company also would Nebraska’s current business tax incen- businesses, LB720 would raise the be required to provide sufficient tives have helped communities across burden on other taxpayers to fund benefits—such as medical insurance, the state. Allowing the Nebraska government services. Groene opposed profit sharing plans and child care Advantage Act to sunset without re- the bill, saying the proposed incentives services—for employees, she said. placing it with a new program would mostly would benefit existing busi- After six hours of general file de- deter business investment because nesses and regular business activity. bate over two days, Kolterman filed a companies plan years in advance for “Any economic development pro- motion May 22 to invoke cloture, or major projects, he said. gram that uses any of our limited tax cease debate and vote on the bill. The Sen. John McCollister of Omaha dollars … must assure the public that motion succeeded 37-8. Thirty-three also supported LB720, saying it would every dollar used is maximized for new votes were needed. be a vast improvement on the Ne- economic growth, not squandered on Senators then voted 29-5 to ad- braska Advantage Act. He said it is a the normal growth of existing indus- vance LB720 to the second round of “sad fact of life” that Nebraska needs tries,” he said. debate. tax incentive programs to compete Groene said business tax incentives During select file debate May 24, with other states when trying to attract need to be part of a comprehensive Gering Sen. John Stinner introduced new businesses. package that includes the provisions an amendment, adopted 32-12, that “All of us want to keep Nebraska of Sen. Lou Ann Linehan’s LB289, he said was meant to address senators’ … economically healthy,” McCol- which was designed to provide prop- concerns that the bill would not cap lister said. “LB720 heads us in that erty tax relief through increased state the amount of tax incentives approved direction.” aid to public schools. each year. Plymouth Sen. Tom Brandt op- After three hours of select file de- The amendment would require posed the bill, calling it a “corporate bate May 24, Kolterman filed a motion the director of the state Department welfare program” that would reduce to invoke cloture in an effort to move of Economic Development to submit total state revenue by 3 percent each the bill to the final round of debate. to the Legislature an estimate of the year. He said the incentives would not The motion failed 30-18. Thirty-three amount of sales and use tax refunds help farmers or small businesses in a votes were needed. to be paid and tax credits to be used meaningful way and are focused on LB720 remains on select file. under the act for each of the next three business recruitment at a time when

PAGE 18 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 21 - 31, 2019

effectiveness of enforcement programs years to the 211 and actions, as well as the board’s Information and damage prevention and public aware- Referral Network. ness programs. A report of its findings The grant will will be submitted to the governor and be used to create Changes to one-call system Legislature no later than Dec. 1, 2021, a website to edu- approved and biennially after that. cate users about LB462 also requires the state at- and connect them Sen. Mike McDonnell A bill that makes changes to the torney general to submit a report with available services. The grant also One-Call Notification System Act was annually to the Legislature, state fire can be used to provide 24/7 service passed May 24. marshal and board of directors detail- through telephone and online access. Great Plains One-Call Service is a ing the number of complaints filed The Nebraska Public Service Com- system used by excavators to identify and prosecuted each year under the mission will accept applications from and locate underground facilities prior One-Call Notification System Act. potential providers each year and ap- to excavation to protect the facilities The bill passed on a 46-0 vote. prove a program administrator based from damage. A notice to the service on its ability to update the informa- center is required prior to performing Grant funds approved for 211 tion and referral services annually, an excavation. service geographically index such services LB462, intro- by county and meet all accreditation duced by Hender- Lawmakers approved a bill May standards set by the Alliance of Infor- son Sen. Curt Fri- 23 that provides grant funding to a mation and Referral Systems. esen, allows the statewide health and human services LB641 also expands the reach of board of directors referral program. 211 services to include disaster and to review locator LB641, introduced by Omaha Sen. emergency response. training materials Sen. Mike McDonnell, transfers $300,000 The bill passed on a 41-0 vote. g and propose best practices. annually from the Nebraska Health The board is required to assess the Care Cash fund for the next two

This is the final weekly issue of the Unicameral Update for 2019.

Look for our session review issue next month.

106TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 19 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