Vol. XXXIV, No. 21 UNICAMERAL May 23 - 26, 2011

THE LEGISLATURE’S WEEKLY NEWS PUBLICATION Stories published daily at update.legislature.ne.gov UPDATE Legislature adjourns three days early Norfolk Sen. Mike Flood, Speaker of the Legislature, said a balanced budget was passed this session because of the committees’ hard work and compromises that were made. Lawmakers began the session fac- ing a projected budget shortfall of nearly $1 billion. The session ended with $575 mil- lion worth of general fund savings and nearly $300 million was set aside in the state’s cash reserve, Flood said. “It is easy to dismiss the budget [shortfall] as a major issue because [the committees] did such a good job,” he added. Sens. Tom Hansen (left) and Bill Avery (right) with Gov. Dave Heineman after his address to Gov. Dave Heineman thanked the Legislature May 26. senators for making difficult budget he 102nd Legislature, first session, adjourned sine decisions. die May 26, 2011. Senators adjourned on the 87th “We knew this would be a challenging budget,” he said. Tday of the scheduled 90-day session. “We knew we would have to make tough budget decisions (continued on page 3) Congressional redistricting plan amended, approved enators amended and approved Omaha Sen. Scott Lautenbaugh during general file debate regarding a bill this week that sets new offered an amendment on select file population deviations and division Sboundaries for the state’s three May 23, adopted 36-10, which altered of cities in Sarpy County under the congressional districts. boundary lines slightly. The amend- committee’s proposal. He said the new As amended on general file, LB704 ment moved a small portion of Gage map would lower the overall deviation placed all of Merrick County in Con- County, which shifted from District 1 back to zero and avoid dividing the cit- gressional District 3 to avoid dividing to District 3 under the committee pro- ies of Bellevue, Papillion and La Vista. the county between districts. That posal, back to District 1. The amend- “I think [this map] addresses the change increased the overall popula- ment also placed the entire cities of two main concerns that were voiced tion deviation in the Redistricting Papillion and La Vista in District 2. last week,” he said. Committee’s proposal from zero to Lautenbaugh said the change re- Omaha Sen. Bob Krist supported 0.06 percent. flected concerns raised by opponents the amendment, saying it would result

(continued on page 4)

INSIDE: Labor commission reform passed • Vetoes sustained on horse racing and food financing programs May 23 - 26, 2011 AFinal CLOSER Day Photos LOOK

Clockwise from top-left: Senators recognized Sen. John Wightman, who was hospitalized during part of the session due to surgery; Sens. (left) and Kathy Campbell; Sens. Steve Lathrop and Annette Dubas; Sen. is interviewed by a reporter; Sens. Paul Schumacher (left) and Jim Smith; Sens. Tony Fulton (left) and .

Page 2 • Unicameral Update • 102nd LEgislature May 23 - 26, 2011 A CLOSER LOOK Legislature adjourns three days early (continued from front page) — and we did by working together.” LB389 provides up to $3 million in annual tax credits Flood also thanked senators and staff for their service for investments made in a business with at least 51 percent to the Unicameral. of its work force and payroll in Nebraska and 25 or fewer “We have a lot to be proud of and we have a lot to employees primarily engaged in researching, developing or celebrate,” he said. using products and services in the high-tech field. Lawmakers passed 272 bills this session. Of those bills, Some of the more contentious bills this session, how- several sought to invest in and develop education and busi- ever, involved redistricting, labor dispute reform and roads ness initiatives. funding. One of those investments was included in LB377, a bill The Legislature is responsible for setting new boundar- that appropriates $25 million from the Nebraska Capital ies for the state’s congressional, legislative, judicial, Public Construction Fund to the University of Nebraska to finance Service Commission, University of Nebraska Board of the renovation of the 4-H Building and construction of a Regents and Board of Education districts every 10 years Food, Fuel and Water Research Building. Both projects are after the decennial census. part of Lincoln’s Nebraska Innovation Campus. LB704, the most contested of the redistricting measures, “This proposal will jump start and accelerate the devel- shifts a number of counties from Congressional District 1 opment of Innovation Campus,” Heineman said. to District 3 to account for population shifts from western LB345 established the Small Business Innovation Act. to eastern Nebraska. District 3 now reaches from border Under the bill, the state Department of Economic De- to border across the northern and southern boundaries velopment will administer a pilot program to assist up to of the state. 40 Nebraska-based growth businesses, at least one half of The bill also shifts areas of eastern Sarpy County from which will be located in counties with fewer than 50,000 District 2 to District 1, and western areas of the county inhabitants. from District 1 to District 2. Opponents argued the changes would violate the redistricting principle of maintaining the core of existing districts and would dilute the voting strength of the minority voting populations. Among proposals ranging from reform mea- sures to abolishing the Commission on Industrial Relations (CIR) — the state’s arbiter of labor disputes between public sector employees and government employers — was a bill that brokered a compromise between private and public sector employers. LB397 includes a formula that allows wages to be adjusted over a three-year period to bring them within a range of between 98 percent and 102 percent of the average of an array, or between 95 percent and 100 percent during periods of recession. From left: Sens. Greg Adams, Tony Fulton, Scott Price, Lavon Heidemann and Flood said CIR reform was a major accom- Beau McCoy say their farewells at the close of session. plishment of the Legislature because all affected (continued next page) 102nd LEGISLATURE • Unicameral Update • Page 3 May 23 - 26, 2011 A CLOSER LOOK Legislature adjourns three days early (continued from previous page) parties worked together to address their concerns. “We did it better than anyone else in the nation because we found a pathway through a very difficult issue,” he said. Finally, LB84 directs sales tax dollars to roads projects from fiscal year 2013-14 through FY2032-33. Eighty-five percent of these funds will be deposited in a new State Highway Capital Improvement Fund. The remaining 15 percent of the new revenue will go to the Highway Allocation Fund. Supporters said the state is slipping toward a crisis situ- ation due to inadequate revenues derived from the state’s gas tax and the bill is needed to provide sufficient funding for roads projects and infrastructure. After indefinitely postponing bills amended into other bills this session, the adjourned sine From left: Sens. Kate Sullivan, Kathy Campbell and Annette Dubas die May 26. g visit during the last day of session.

Congressional redistricting plan amended, approved (continued from front page) in two congressional representatives future attempts to close it. pisek of Wilber offered an amend- who are “Offutt-smart” and could sup- Lincoln Sen. Bill Avery opposed the ment that would have shifted Saline port the air force base should there be amendment, saying it would unneces- County from District 3 to District 1. sarily dilute the He said the change would correct a voting strength wrong from the last round of redistrict- of the minority ing in 2001. voting population “My point on this is to put Saline of District 2 by County back in the 1st Congressional moving approxi- District where I feel it should have mately 8,645 mi- been 10 years ago,” he said. nority citizens to Karpisek’s amendment instead District 1. would have divided Colfax County “It is not legal between the 1st and 3rd congressional to draw a map districts in order to achieve population that dilutes the equality among the districts. voting strength “We’re going to have to see a of any minority county split one way or the other if population,” he we’re going to get to zero deviation,” said. he said. Sen. Russ Kar- Sens. Russ Karpisek (left) and Bill Avery opposed the committee’s (continued next page ) congressional district proposal.

Page 4 • Unicameral Update • 102nd LEgislature May 23 - 26, 2011 A CLOSER LOOK Congressional redistricting plan amended, approved (continued from previous page) Malcolm Sen. Ken Haar supported the Legislature’s nonpartisan the Karpisek amendment, saying it office of legislative research. would move far fewer Nebraskans to The map was similar to the new congressional districts than the committee proposal but kept committee’s proposal. most areas of Papillion, La “Every time you separate someone Vista and Bellevue in Congres- from an elected official that they’ve sional District 2. gotten to know … you’re breaking part Mello said drawing district of the political process. I think it’s lines is the most partisan proj- important to displace as few people ect undertaken by the officially as possible from their current elected nonpartisan Legislature, and officials,” he said. should be done in a way that is The amendment failed 16-28. Kar- not subject to the influence of pisek offered a motion to reconsider the state’s governor, congres- the vote, saying the amendment had sional delegation or political not been fully considered at the time parties. that the initial vote was taken. The Sen. Danielle Conrad of Sen. Scott Lautenbaugh supported the committee’s work on the maps. motion was defeated 16-31. Lincoln supported Mello’s Omaha Sen. also amendment, saying those opposed to amendment. offered an alternative map, which the committee’s proposal had been The amendment returned the two he said was the base map drawn by left out of the process. A redistricting small portions of Gage County back to proposal should reflect the con- District 3 and moved an area in Dixon cerns of both sides of the political County around the city of Emerson to spectrum, she said. the 1st District. Langemeier said the “The state of Nebraska is changes preserve the goal of zero devia- turning its back on 40 years of tion and have clearer boundary lines. redistricting history,” Conrad Sen. Norm Wallman of Cortland said. “Why? The only answer is supported the amendment, saying the because of partisan advantage.” new map follows existing boundary The Mello amendment failed lines along roads, rather than creating on a 14-30 vote. arbitrary divisions by “plucking parts After five hours of discussion, out of Gage County.” Sen. Chris Langemeier of Schuy- Senators voted 40-1 to return the ler offered a motion to invoke bill to select file and adopted the cloture and cease debate. The amendment 39-1. motion was adopted on a 33-15 Lawmakers then re-advanced vote and LB704 advanced from LB704 to final reading by voice vote select file on a 36-10 vote. and gave the bill final approval May 26 Langemeier offered a motion by a vote of 35-11. The bill contains Sen. Heath Mello proposed an alternative to the May 24 to return LB704 to se- the emergency clause and takes effect map passed this session. lect file for consideration of an immediately. g

102nd LEGISLATURE • Unicameral Update • Page 5 May 23 - 26, 2011 ISSUES UPFRONT

Agriculture

Veto sustained on healthful food financing program

The governor’s veto of a bill that would have provided a financing pro- its second vote on final reading May 18. LB152, introduced by Omaha Sen. gram to improve access to healthful In his veto message, the governor Steve Lathrop, reimburses a hospital foods in underserved communities said the bill would have duplicated 160 percent of its Medicare rate for was sustained after a motion to over- assistance that currently is available inpatient trauma care. ride the veto failed May 25. through 19 federal programs that Under the bill, additional com- LB200, introduced by Omaha Sen. support the development of projects pensation is provided for the outlier Brenda Council, would have directed that address access to healthful foods. trauma cases that require unusual the Rural Develop- Council offered a motion to over- expenses. The stop loss threshold for ment Commission ride the governor’s veto. LB200 was such cases is 1.25 times the basic reim- to create a financ- designed to leverage federal and pri- bursement rate. If the billed charges ing program to vate funds, she said, adding that many are greater than the stop loss threshold increase access to of the programs mentioned by the amount, hospitals will be reimbursed fresh fruits, veg- governor require nonfederal matches the basic reimbursement rate plus an etables and other Sen. Brenda Council or address only the acquisition of additional 65 percent of the amount nutritional foods healthful foods, not their availability. above the stop loss threshold. in low-income areas with limited ac- “The existence of federal or other The bill passed on a 45-0 vote. cess to healthful food retailers. nonstate funds is not — nor should Projects eligible for financing would it every be — the standard by which Labor commission reforms have included new construction of this Legislature determines the need passed grocery retail structures, grocery store to appropriate funds,” Council said. renovation, expansion and infrastruc- Council’s motion to override the Lawmakers gave final approval May ture upgrades, establishment of farmers veto failed on a 20-19 vote. Thirty votes 25 to a bill that makes changes to the markets, community gardens, mobile were needed. Nebraska Commission on Industrial markets and delivery projects that Relations (CIR), the state’s arbiter of would have increased the capacity of labor disputes between public sector food retailers to obtain fresh produce. Business & Labor employees and gov- The bill would have been funded ernment employers. with annual transfers of $150,000 from Medical fees for workers’ Introduced by the general fund and a reduction of the compensation revised Omaha Sen. Steve maximum tax credits offered under the Lathrop, LB397 in- Community Development Assistance Senators passed a bill May 24 that cludes a formula Act from $350,000 to $200,000. changes medical fee schedules for that allows wages to LB200 was approved 30-16 during workers’ compensation. be adjusted over a Sen. Steve Lathrop

Page 6 • Unicameral Update • 102nd LEgislature May 23 - 26, 2011 ISSUES UPFRONT three-year period to bring them within utilities; and In his veto message, the governor a range of between 98 percent and 102 • requires a public vote on the said the bill was an attempt to cir- percent of the average of an array, or last, best offer of either a union cumvent a constitutional requirement between 95 percent and 100 percent or public employer before a dis- that racetrack licensees host live horse during periods of recession. pute may be taken to the CIR. racing in order to conduct parimutuel A recession is defined as two con- LB397 passed on a 48-0 vote. wagering. He added that the bill also secutive quarters in which net state is an expansion of gambling beyond sales and use tax, individual income what Nebraska voters have authorized. tax and corporate income tax receipts General Affairs Karpisek disagreed that the bill are less than the same quarters for the may be unconstitutional, saying any prior year. Attempt to override horse new facility built in Lincoln still would The bill also: racing veto fails have to be licensed by the State Rac- • removes the rule of evidence ing Commission to conduct simulcast requirement; Senators declined May 25 to over- racing. He said the measure was not • provides a preference for geo- ride the governor’s veto of a bill that an attempt to circumvent the consti- graphic proximity; would have clarified State Racing tution, but rather to allow Lincoln’s • eliminates use of a special mas- Commission members’ terms of office horse racing industry time to build a ter in education labor disputes; and attempted to assist Lincoln’s horse new track that would have live racing. • authorizes appeals directly from racing industry. “They want to run live horse races the CIR to the Nebraska Su- Introduced by Wilber Sen. Russ in Lancaster County as soon as pos- preme Court; Karpisek to harmo- sible,” he said. • incorporates health insurance nize the terms of Sen. Jeremy Nordquist of Omaha and pension benefits into an two new State Rac- supported the override motion, say- hourly rate value; ing Commission ing lawmakers should help the horse • requires that wage information members, LB256 racing industry. The Legislature made be adjusted to reflect Nebras- included provisions the decision to move the state fair ka’s cost of living; of LB299, also in- to Grand Island to make way for In- Sen. Russ Karpisek • removes consideration of ability troduced by Kar- novation Campus, he said, which is to pay from provisions govern- pisek. the reason the current Lincoln racing ing schools; The bill would have allowed a race- facility must close. • requires that three CIR com- track licensee to contract with another “We need to help untie the hand missioners be involved in cases licensee to conduct all but one day that we tied behind their back,” Nor- regarding wage disputes; of live race meetings on its behalf, dquist said. “This industry needs the • lowers the preferred array size and allowed a racetrack licensee in a second biggest market in the state.” from between seven and 13 to county with a city of the primary class Sen. Beau McCoy of Omaha op- between seven and nine. to contract with another licensee to posed the override motion. McCoy • specifies a 70 percent match conduct all live race meetings on its said Karpisek’s commitment to the of duties performed and time behalf. horse racing industry was admirable, spent performing those duties; Lincoln is the state’s only primary but that the state should not take on • sets criteria for the size of com- class city. the financial burden of defending an parable out-of-state cities and LB256 was given final approval unconstitutional law. metropolitan statistical areas; May 18 on a vote of 26-17, one vote The override motion failed on a • removes provisions allowing more than the minimum needed for 21-23 vote. for public and private wage passage. It subsequently was vetoed by comparisons, except for public Gov. Dave Heineman.

102nd LEGISLATURE • Unicameral Update • Page 7 May 23 - 26, 2011 ISSUES UPFRONT

not subject to the supervision of • make motor Judiciary the Jail Standards Board; vehicle ho- • removes the duty to review, micide and Community correction analyze, produce and update a DUI-serious changes pass report of all homicide cases in b o d i l y i n - the state; and jury separate Senators passed a bill May 26 re- • clarifies the structure and opera- crimes from lated to community corrections. tion of the Community Trust. DUI; Sen. Mike Flood Omaha Sen. in- The committee amendment was • increase the 12-year look-back troduced LB390, a adopted 27-0 on May 23. Technical limitation to 15 years in the bill containing new amendments were adopted on general DUI enhancement statutes; jail standards and and select file and the bill passed May • create penalties regarding boat- community correc- 26 on a 47-0 vote. ing while under the influence; tions provisions. • create the enhanced punish- A Judiciary Com- Remotely administered ment of a Class III-A felony mittee amendment chemical abortions banned and a minimum of 30 days im- Sen. Brad Ashford replaced the bill’s prisonment for procuring when provisions and, among other changes: Senators passed a bill May 23 that it proximately causes serious • provides new duties to the prohibits chemical abortions from be- bodily injury or death; executive director of the Ne- ing administered from remote satellite • revise the administrative license braska Commission on Law locations. revocation (ALR) process and Enforcement and Criminal LB521, introduced by Sen. Tony make ignition interlock devices Justice to establish a community Fulton of Lincoln, a condition of bond; corrections division, appoint makes it a Class IV • make ignition interlock devices and remove the director of the felony for a physi- mandatory for first and second training center and appoint cian to knowingly DUI offenses; and and remove the director of the or recklessly use or • create penalties for tampering Office of Violence Prevention; prescribe any instru- with an ignition interlock de- • provides a new duty that the ment, device, medi- vice if it is required under ALR. probation administrator collab- cine, drug or other Sen. Tony Fulton Under the bill, a person who is orate with the new Community substance to perform, induce or attempt driving under an ignition interlock Corrections Division and the an abortion without being physically permit and has no prior DUI convic- Office of Parole Administration present in the same room as the patient. tions can operate a vehicle only for in developing rules governing The bill passed on a 38-9 vote. purposes of employment, education, the participation of parolees substance abuse treatment, parole or in community corrections pro- DUI-related provisions revised probation supervision, health care for grams operated by probation; themselves or their dependents, court- • limits the ability of the Police Senators passed a bill May 24 that ordered community service obliga- Standards Advisory Council to revises provisions related to driving tions and ignition interlock servicing. delegate powers and duties to under the influence (DUI). The bill passed on a 46-0 vote. the director of the Nebraska Law LB667, introduced by Norfolk Sen. Enforcement Training Center Mike Flood, will: Court provisions revised and to supervise the director; • create a new offense of motor • provides that nationally certi- vehicle homicide of an unborn Senators passed a bill May 23 that re- fied correctional facilities are child; vises state and county court provisions.

Page 8 • Unicameral Update • 102nd LEgislature May 23 - 26, 2011 ISSUES UPFRONT

LB669, introduced by Norfolk Sen. obtaining input from the clerk of parents, the consent of a grandparent Mike Flood, will: the county court, a district court would suffice. • expand the state Supreme Court’s judge, a county court judge and An unauthorized person providing options for funding sources to the county attorney; and consent would be guilty of a Class III compensate court interpreters; • allow for a divorce decree to misdemeanor. • provide for clerks and staff of the be entered without a hearing if During select file debate May 23, district and country courts to as- both parties have certified that Lincoln Sen. Danielle Conrad, an sist one another on court services; they have made every reason- opponent of the bill, filed a motion • create a new position of Judicial able effort to reconcile. to recommit the bill to the Judiciary Hearing Officer and allow the The bill passed on a 47-0 vote and Committee. She said the bill had tech- court to appoint officers as takes effect immediately. nical problems that should be worked needed; on further, specifically naming privacy • provide courts greater schedul- Parental consent for minors’ concerns with regard to the notary. ing flexibility; abortions approved Brasch said the notary requirement • clarify the authority for delivery of would ensure that a parent or guard- service by a commercial courier; A minor must obtain parental con- ian is involved in the process, adding • provide various deadlines for fil- sent before having an abortion under a that it is working in the other states ing a jury demand in civil cases bill passed by the Legislature May 26. that require it. depending on the role of the LB690, introduced by Sen. Lydia “Consent has been tried in 24 litigant doing the filing; Brasch of Bancroft, other states,” Brasch said. “We are • eliminate the requirement that requires notarized not navigating into unchartered leg- divisions of a county court be written consent islation.” located outside the county seat from a minor’s par- Conrad later withdrew her motion. and that certain cases be filed ent or guardian be- Omaha Sen. Tanya Cook brought an with the county court clerk in fore the minor can amendment to shorten the time allowed the county seat; have an abortion, for a court to rule on whether or not • authorize a court to order that a except in cases of Sen. the minor could have the procedure. It juvenile be placed directly with medical emergency. The bill replaces proposed narrowing the seven-day time the state Department of Health the previous requirement that the frame to 48 hours. Cook said the bill and Human Services to obtain parent or guardian be notified of the otherwise would delay a procedure that a pre-adjudication evaluation; procedure by registered or certified must be performed within 20 weeks’ • clarify the responsibilities of mail with return receipt requested. gestation and could require a rushed the county and the state for Under the bill as amended, the decision to meet the deadline. covering costs incurred during consent requirement can be waived if “This [bill] is another way to a juvenile’s detention period a judge finds, by clear and convincing prolong the decision-making process prior to adjudication; evidence, that a minor is both suf- beyond the legal deadline for legal • allow the electronic filing of ficiently mature and well informed to abortion in Nebraska,” she said. complaints and information in decide whether to have the abortion. The amendment failed on an 8-30 criminal cases; The abortion may still be performed if vote. • require that agreements between a court finds by clear and convincing Omaha Sen. Burke Harr said he the district courts and county evidence that an abortion is in the best supported the idea of parental con- clerks be signed and stipulated interest of the pregnant minor even sent but thought the process should to by the state court administra- in the absence of parental consent. If be simplified. tor, the county board and the the pregnant woman declares that she “We need to do this in a careful, clerk of the district court after is a victim of abuse by either of her conscientious way,” he said, adding

102nd LEGISLATURE • Unicameral Update • Page 9 May 23 - 26, 2011 ISSUES UPFRONT that the bill’s potential to violate a and vegetation. 228,293. Changes to both maps in- minor’s privacy was of concern. “If The bill also permits local govern- clude moving Knox and Pierce counties we fix this it would be a good bill--it ments and state agencies to pursue com- from District 6 to District 3 and Custer would be a great bill.” pensation from a pipeline company to County from District 6 to District 7. In Brasch said the requirement that pay for maintenance and repair of roads, addition, Butler County moves from the consent form be signed by a notary bridges or other infrastructure affected District 3 to District 5 and Washington should not be problematic. by pipeline construction and operation. County from District 2 to District 3. “There are 34,000 notaries in the Lawmakers approved LB629 on a The three bills were approved on state, so they’re easy to find and I trust 47-0 vote. 47-0 votes. their confidentiality,” she said. Harr later brought an amendment Legislative redistricting that he said would address the issue. Redistricting proposal passes Adopted 41-0, the amendment added a requirement that notaries keep in- Education, PSC redistricting Senators gave final approval May formation about the abortion consent bills approved 26 to a bill that sets new boundaries form confidential. Notaries disclosing for the state’s 49 single-member legisla- such information would be subject to Senators gave final approval to tive districts. losing their license. three redistricting bills May 25 that LB703, introduced by the Redis- A technical amendment from draw new district boundaries for the tricting Committee, makes numerous Brasch was adopted and LB690 ad- Public Service Commission, Univer- boundary changes across the state to vanced from select file 35-4 on May 23. sity of Nebraska Board of Regents and account for population shifts. Chang- The bill passed on final reading the state Board of Education. es include making Scotts Bluff County May 26 on a 41-6 vote. District boundaries must be re- a single district and moving District drawn every 10 years to reflect popu- 49 from northwestern Nebraska to lation changes throughout the state. Sarpy County. Natural Resources LB700, introduced by the Redis- Among other changes, the bill also tricting Committee, redraws boundary shifts Dawes, Sheridan and Grant Land restoration requirement lines for the five districts of the Public counties from District 49 to District for interstate oil pipelines Service Commission. 43. Boyd and Rock counties move passes According to the 2010 census, the from District 43 to District 40, Custer ideal population for each district is County moves from District 43 to Pipeline companies are responsible 365,268. Changes include moving District 36 and Gosper County moves for restoring land disturbed during the Antelope, Greeley, Howard, Knox and from District 38 to District 44. construction or operation of an inter- Wheeler counties from District 5 to LB703 passed on a vote of 37-9 and state oil pipeline under a bill passed District 4 and moving Burt, Cuming, takes effect immediately. by the Legislature May 26. Dodge and Thurston counties from Restoration costs covered in District 3 to District 4. LB629, introduced LB701 and LB702, also introduced Revenue by Cedar Rapids by the committee, redraw boundary Sen. Kate Sullivan, lines for the eight districts of the Uni- Lawmakers pass NRD include those in- versity of Nebraska Board of Regents property tax extension and curred to rehabili- and the state Board of Education. SID bond provision tate real and person- Maps for the two entities are identical. al property, natural According to the 2010 census, the Select natural resources districts resources, wildlife Sen. Kate Sullivan ideal population for each district is will have more time to levy a special

Page 10 • Unicameral Update • 102nd LEgislature May 23 - 26, 2011 ISSUES UPFRONT property tax under a bill passed by the licenses, tobacco sales, cigarette taxes, The bill authorizes the state to ne- Legislature May 25. the state directory of cigarettes, escrow gotiate a compact with Native Ameri- LB400, amended to contain provi- deposits under the Master Settlement can tribes regarding tobacco products. sions introduced by Holdrege Sen. Tom Agreement and reporting require- Agreements must include provisions Carlson, extends to ments. to require that tribal taxes are imposed fiscal year 2017-18 The Master Settlement Agreement equally on all cigarettes and other the sunset date for was entered into on Nov. 23, 1998, tobacco products. Agreements also a property tax of- between the state and tobacco product must require that all cigarette packages fered to NRDs in manufacturers. Tobacco manufacturers bear the state stamp or a tribal stamp overappropriated or who are not party to the agreement are and prohibit the sale of cigarettes not fully appropriated called nonparticipating manufacturers. included in the state directory unless basins. The 3-cent Sen. Tom Carlson Among other provisions, enforce- the cigarettes include a tribal stamp per $100 of taxable value property tax is ment measures in the bill include: and the tribe makes escrow deposits. used for costs of administering and im- • requiring nonparticipating Senators voted 48-0 to pass LB590. plementing ground water management manufacturers to post bond activities and integrated management and certify they have posted Revenue identification activities under the Nebraska Ground such bond; contracts approved Water Management and Protection Act • holding importers liable for that exceed the amount budgeted for escrow deposits of nonpartici- The state Department of Revenue such activities in FY2005-06. pating manufacturers; is authorized to contract with busi- The bill also changes state statute • requiring nonparticipating nesses to identify uncollected revenue governing property tax levies and manufacturers to make escrow under a bill passed by the Legislature exceptions, specifically a subsection payments on a quarterly basis; May 23. addressing bonds secured by a property • increasing the frequency of LB642, introduced by Bellevue tax levy. The bill replaces bonded in- stamping agent reports and Sen. Abbie Cornett, allows the de- debtedness with a definition of bonds holding agents liable for non- partment to use rev- that includes any bonds, notes, interim participating manufacturers es- enues identified by certificates, evidences of bond owner- crow payments if their products such businesses for ship, bond anticipation notes, warrants are stamped; fees associated with or other evidence of indebtedness. • revoking stamping agent li- revenue identifica- Lawmakers passed LB400 on a censes for inadequate reporting, tion services. Ten 47-1 vote. outstanding escrow deposits or percent of revenues sales of unstamped cigarettes; collected as a re- Sen. Abbie Cornett Cigarette regulations pass • requiring cigarette manufactur- sult of the revenue ers and importers to report all identification contracts will be depos- Regulations intended to keep the sales into Nebraska within 15 ited in the Department of Revenue state in compliance with an agree- days; Enforcement Fund for purposes of ment with tobacco • removing manufacturers from identifying nonfilers, underreporters, manufacturers were the state directory that fail to nonpayers and improper or fraudulent approved May 23. submit required reports; and payments. LB590, intro- • revoking stamp agent licenses Lawmakers approved LB642 on a duced by Grand and removing manufacturers 37-4 vote. g Island Sen. Mike from the state directory for Gloor, changes laws violations of similar laws in regulating tobacco Sen. other states.

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