UNICAMERAL UPDATE Stories published daily at Update.Legislature.ne.gov Vol. 40, Issue 20 / May 15 - 23, 2017 Legislature adjourns mid-biennium he first session of the 105th Legislature adjourned sine die TMay 23, the 86th day of the scheduled 90-day session. Speaker Jim Scheer said among their many accomplishments this session, senators passed legislation to add a juvenile court judge in Douglas County, authorize new economic development districts on riverfronts and add a definition of dyslexia to the state’s education law. Most importantly, he said, the Leg- islature addressed the budget shortfall and passed a balanced budget that does not raise taxes. “I think it’s fair to say that not a single member of this body was com- Speaker Jim Scheer said that, despite the session’s slow start, the Legislature was able to pletely happy with the final budget,” debate all bills advanced by committees and address a nearly $1 billion budget shortfall. Scheer said. “Many wanted more cuts, debate all the bills advanced to general changed significantly with the replace- some wanted fewer cuts, but we did file by the committees. ment of two-thirds of the senators who what we were able and what we had Scheer admitted that there were were in office when he was elected, to do.” times when the session seemed never- but he said the body is now in a better Despite the session’s slow start, ending, while other times it seemed position to address tough issues. Scheer said, the Legislature was able to too short. He said the body has “As a body, there is a greater push (continued page 2) Governor’s line-item budget vetoes sustained awmakers declined to override any of the governor’s would return the level of funding for provider rates to the line-item vetoes of the state budget package May 17. amounts recommended in his budget proposal. Ricketts L Several bills comprising the $8.9 billion, two-year said that prudent fiscal management calls for less general budget package were passed last week and sent to Gov. Pete fund spending in light of a recent downturn in state tax Ricketts. The governor vetoed $56.5 million in line items revenue. from the budget. The Appropriations Committee offered Gering Sen. , chairperson of the Appropria- override motions on two of those vetoes. tions Committee, offered a motion to override $32.4 mil- Among the provisions vetoed in LB327, the mainline lion of those cuts to provider rates for Medicaid, behavioral budget bill, was $33.6 million in general funds that lawmak- health and developmental disability providers. ers had approved for Medicaid, child welfare, behavioral While a 3 percent cut may seem reasonable, Stinner health and developmental disability providers. The gover- said, rates for Medicaid providers are the sixth nor’s veto amounts to a 3 percent cut in provider rates in lowest of all the states that provide such information. Nurs- the four categories. ing homes – particularly in rural areas of the state – are In his May 15 veto message, the governor said the change stressed financially by those low rates, he said. (continued page 3)

INSIDE: Meet Sen. Briese • Corrections oversight committee named • City bankruptcy tied to pension funds May 15 - 23, 2017 Legislature adjourns mid-biennium (continued from front page) to challenge the status quo, to take a “Working together, we did some- and corporate tax rates and change step back and ask: ‘Why are we doing thing that was unprecedented,” Rick- the way agricultural land is valued in this,’ or ‘Why don’t we do things this etts said. “No one can ever remember an effort to reduce property taxes. The way?’” Scheer said. when we have passed two budget bills bill failed to advance from general file Gov. , in his address to in one legislative session.” this session. the Legislature, thanked senators for Ricketts said the biennium budget “We need to continue to work taking time away from their families prioritizes funding for public schools, on how we’re going to provide that to serve their fellow citizens. property tax relief and correctional tax relief to our Nebraska families,” He said the executive and legisla- services reform without raising taxes. Ricketts said. tive branches worked together this He said he would work with senators The second session of the 105th session to grow Nebraska’s economy over the interim to modify a proposal Legislature is scheduled to convene and make government more efficient to cut the state’s top personal income Jan. 3, 2018. g by creating a grant program to build workforce housing in rural counties, passing occupational licensing reform and combining the state Roads and Aeronautics departments. Ricketts thanked the Appropria- tions Committee and its chairperson, Gering Sen. John Stinner, for their work in making cuts to the current fiscal year’s state budget and in pass- ing a balanced budget for the next two fiscal years after facing a $900 million shortfall earlier this year. He especially appreciated the speed with which the committee recommended the initial round of budget cuts made in early February to begin addressing the shortfall. Gov. Pete Ricketts greets senators as he departs the Norris Chamber after his speech. 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.

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PAGE 2 • UNICAMERAL UPDATE • 105TH LEGISLATURE May 15 - 23, 2017 Governor’s line-item budget vetoes sustained (continued from front page) “With an aging population, nurs- she said. “But if we take [the cash re- Sen. of Lincoln sup- ing homes need to be preserved at least serve fund] down to 2.5 percent and ported the override motion, saying the at a flat rate,” Stinner said, which the have to come back in October and governor had an unlimited number bill as passed by the Legislature would make the very cuts that we’re doing of choices in how to re-balance the have done. today – painful as they are – they’re budget with his line-item vetoes but Sen. of Seward not going to be less painful in October. chose cuts that impact individuals who supported the motion, saying an over- They’ll be more painful,” she said. cannot advocate for themselves. ride was warranted in this case. Many “We have to face the reality that we’re “The governor had his choices and critical access hospitals and nursing in. We aren’t broke, but we shouldn’t he made them,” Hansen said. “And I homes in rural areas are the largest let ourselves get quite so close.” hope he is comfortable with [it].” employers in their towns, he said, and The motion failed on a vote of The motion failed on a vote of some are in danger of failing because 27-21. Thirty votes were required for 27-21. of Medicaid provider rates. adoption. A number of additional motions “How are we going to recruit people The other committee motion were offered and withdrawn, includ- to an area where the largest employer would have restored $300,000 vetoed ing motions to override vetoes of: in many cases is struggling to keep their from the Office of Probation Services. • $5.8 million for the University doors open?” Kolterman said. Stinner said the amount reflects a 0.5 of Nebraska; Omaha Sen. percent across-the-board cut to most • $1.3 million for child welfare also supported the override motion, state agencies that was included in the provider funding; saying the state is not “broke” and governor’s line-item vetoes. • $716,00 for juvenile justice should not balance its budget by cut- “Probation services provides con- transportation funding; and ting rates to providers who take care structive change through rehabilita- • $26,800 in general funds for the of the state’s most vulnerable. tion, collaboration and partnership to state’s specialized court system. “Even if we do this override, we’re enhance and maintain the safety of our Following a vote on a second still going to have $350 million in our communities,” Stinner said. “Bringing motion to override the veto of child rainy day fund,” he said. “To what an additional cut to those services will welfare funding, which failed 19-23, end? It’s a rainy day.” not serve the mission of Nebraska.” all of the governor’s line-item vetoes Sen. of Fremont said Crete Sen. Laura Ebke supported were sustained. it has taken 200 years of advocacy to the motion. A robust probation system Among other vetoes was a $6.5 open doors to employment, education with sufficient services is important million reduction to the Highway and housing for people with develop- to avoid expensive lawsuits related to Cash Fund appropriation contained mental disabilities. Speaking in sup- prison overcrowding and the possible in LB327. Ricketts said the change port of the override motion, she said need to construct additional prison – along with a $15 million line-item Nebraska parents and providers have facilities, she said. reduction in transfers from the Roads long fought against abuse and neglect “It’s important for us to keep our Operations Cash Fund to the General and for community acceptance and eyes on the big picture,” Ebke said. Fund in LB331 – would prevent an access to services. The motion failed 23-25. increase in the state’s variable gas tax. “What a step backward – for Omaha Sen. Bob Krist then offered The governor also line-item vetoed families, for advocates and for people a motion to override $6.4 million in $11 million in general funds appropri- needing services due to a disability,” cuts to developmental disability aid. ated in fiscal year 2018-19 in LB330 for Walz said. He said the funds provide important the ongoing Capitol building heating, Elkhorn Sen. support and services to the state’s ventilating and air conditioning sys- opposed the override motion, saying most vulnerable residents in every tem renovation project. Ricketts said she does not believe that the state’s legislative district. the veto would not cancel or delay economic condition will improve “This is the essence of what we are the project. anytime soon. in business to do – to protect the in- No motions were offered to over- “These are hard, difficult votes,” nocent,” he said. ride those vetoes. g

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 3 May 15 - 23, 2017 Meet the Senator Farmer returns to Lincoln for lawmaking or a farm kid from Albion, even the promise of a Farm Service Agency Committee and the Boone Central lucrative law career could not deter Sen. School Board. Ffrom a life working the land. After decades of farming and raising his family, he Following high school graduation, Briese had moved finally felt that the time was right to make good on his to Lincoln to earn his degree in agricultural economics teenage ambitions and run for a seat in the Legislature. from the University of Nebraska-Lincoln. He earned The daily life of a state senator can be hectic, but he his law degree from UNL three years later, clerking for welcomes the opportunity to listen and learn. Briese said a federal judge and practicing law, before returning to he is here to represent his constituents and understands his first love. the great importance of having an open mind. “Once agriculture gets “I believe we make in your blood, it never better decisions when we disappears,” Briese said. are educated on all sides He returned home to the of an issue,” he said. “I am Boone County family farm always willing to listen.” and never looked back. Despite his full legisla- Briese — a fourth-gener- tive schedule, he contin- ation farmer — and his wife ues to stay engaged in Joan continue their fam- civic organizations that ily’s agricultural tradition, are important to him, growing corn and soybeans like the Boone County outside of Albion. Being Foundation Fund and outdoors with his wife, two Boone County Philan- children — son Adam and thropy Council. daughter Ashley — their Briese is busy wrapping spouses and his two grand- up his first session in the sons is where Briese is Legislature, but true to happiest. Besides farming, form, he already is look- he loves to hunt and fish. ing ahead. He says he has Golfing is another fa- made progress on some is- vorite past time, but he ad- sues this year, but is work- mits he will never be con- ing on future legislation to fused for a professional. address concerns brought “I have fun, that’s all to him by constituents, in- that matters,” he laughed. cluding property tax relief. Briese’s interest in Achieving compromise running for office began with 48 fellow senators is in high school, when he rarely easy, but at the end regularly kept up with of the day Briese remem- the legislative action in bers the advice his parents Lincoln. He has been ac- gave him: tive in his community for “Always work hard and years, including serving Sen. Tom Briese and wife Joan love spending time with their family — do your best. It really is including grandson Jaxson — on their farm outside of Albion. on the Boone County that simple.” g

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mission on Postsecondary Education to assess a fee on for-profit post- secondary institutions in the state and direct the proceeds to a cash fund. The Education omnibus bill approved commission then may receive, evaluate Special investigative committee and pay claims to students to recover approved to oversee Corrections An education omnibus bill that lost tuition and fees resulting from restricts a levy limit exemption for the closure of a for-profit institution. The Legislature adopted a resolu- teachers’ voluntary termination agree- LB175, introduced by Sen. Adam tion May 18 that will establish another ments received final approval from the Morfeld of Lin- committee to oversee the state Depart- Legislature May 16. coln, prohibits ment of Correctional Services. The As introduced by the Education technology compa- Executive Board heard testimony on Committee, LB512 was drafted to nies that contract the resolution May 16. make several technical changes to with schools from LR127, as introduced by Omaha education law. As amended, it in- using student data Sen. Bob Krist, proposed a new cludes the provisions of several other for targeted adver- Nebraska Justice education-related bills. tising or creating Sen. System Special In- LB457, introduced by Sen. Tom student profiles for non-educational vestigative Com- Briese of Albion, purposes. mittee to study the restricts a budget LB235, introduced by Sen. Lynne issues addressed by and levy limita- Walz of Fremont, previous investi- tion exemption for authorizes recipi- gative committees the funds a school ents of a grant un- and review the role Sen. Bob Krist district agrees to der the Summer of state agencies and their involvement pay teachers and Food Service Pro- in the justice system. administrators in Sen. Tom Briese gram to spend a The Legislature had authorized the exchange for voluntary termination of grant’s full amount Department of Correctional Services employment. when starting or Sen. Lynne Walz Special Investigative Committee in 2013 As amended, it exempts from bud- expanding a summer food program. to study the circumstances of Nikko Jen- get and levy limits the amounts levied As amended, the bill reduces the kins’ incarceration and release, as well to pay for 75 percent of the funds used amount of money appropriated to the as the administration of good time laws, for voluntary termination agreements program from $140,000 to $100,000 policies relating to inmate segregation for fiscal year 2018-19. That would per year. and the availability of rehabilitative and decrease to 50 percent for FY2019-20 LB398, introduced by Omaha mental health programs. The committee and 25 percent for FY2020-21. Sen. Justin Wayne, was re-authorized in 2015 to continue its The bill also allows school districts requires that some- work until Jan. 19, 2017. already at their maximum levy to one currently certi- Despite the work of the previous exempt from budget and levy limita- fied in first aid, investigative committees, Krist said tions up to $35,000 of payments for a CPR and drown- in the May 16 hearing, issues such as teacher’s voluntary termination agree- ing risk prevention staffing, overcrowding, mental and ment that is not part of a collective be present at every behavioral health, programming and bargaining agreement. swimming pool Sen. Justin Wayne restrictive housing continue to plague Provisions of owned, rented, leased or otherwise the department. LB123, intro- used by a school district for practice, “This is an attempt to gain a greater duced by Lin- competition or other school function. understanding of state agencies and coln Sen. Patty The bill passed 47-0. their involvement in the [depart- Pansing Brooks, ment’s] programs and policies,” he authorize the Co- said. “This is critical since the work ordinating Com- of these agencies impacts the [depart- Sen.

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 5 May 15 - 23, 2017 ment] on a daily basis.” said that another one of these commit- Mike Marvin, executive director of tees will just continue to take time and the Nebraska Association of Public resources away from the department Employees, testified in support of the that could be used to fix the issues resolution. He said excessive amounts that are there.” of staff overtime, combined with prison Sen. Patty Pansing Brooks of Lin- State boards and commissions overcrowding, has created a perpetually coln, who served as chairperson of the modified, eliminated unsafe environment for corrections former special investigative committee, staff, inmates and the general public. supported LR127. She said the issue Various state-established boards “This would continue to hold the is not whether there is faith in Frakes’ and commissions are modified or department accountable,” Marvin ability, but the fact that the problems eliminated by a bill passed May 18. said. “It would ensure that the safety facing the department have become LB644, intro- of the public, inmates and staff is more serious and pronounced. duced by Gretna continued to be looked over.” “I don’t have faith that we have the Sen. John Muran- Opposing the resolution at the necessary resources to help [Frakes] do te, is the result of a hearing was Scott Frakes, director of his job,” she said. “There is continuing statutorily-required the Department of Correctional Ser- overcrowding, which leads to under- review of all state vices. He said the department already staffing, which leads to a difficulty in boards and com- has implemented many of the recom- hiring sufficient people and potential missions that is Sen. mendations suggested by previous harm to the staff.” designed to determine which of them investigative committees. Lincoln Sen. also spoke are outdated or obsolete. “I recognize the importance and in favor of the resolution. She said it is Boards and commissions elimi- value of legislative oversight of our the Legislature’s responsibility to take nated include the: community gar- branch, but all of this is currently a broader view of the issues facing the dens task force; advisory committee being accomplished without a special department. Not taking into account for value-added agricultural pro- committee,” Frakes said. how the various state agencies impact motion and development; Carbon The committee voted May 17 to ad- the department and incarceration is Sequestration Advisory Committee; vance the bill to general file on a 6-3 vote. short-sighted, Bolz said. Perfusionist Committee; Nebraska An Executive Board amendment, The Legislature voted 28-11 to Exchange Stakeholder Commission; adopted 26-7 on general file May 18, adopt the resolution. Intergovernmental Poverty Task Force; changed the proposed committee On May 23, the Executive Board Health Advisory Board; Medicaid from one with investigative author- appointed the following seven mem- Reform Council; Aging Nebraskans ity to one with oversight authority, bers of the Legislature to serve on the Task Force; Nursing Home Advisory removing the committee’s ability to committee: Council; and Health Care Data Base issue subpoenas. It also established • Sen. Laura Ebke of Crete (as Advisory Committee. the chairperson of the Legislature’s chairperson); The bill passed 48-0. Judiciary Committee as chair of the • Sen. Kate Bolz of Lincoln; special oversight committee. • Sen. of Gordon; Norfolk veterans’ home park O’Neill Sen. op- • Sen. of Lincoln; gift accepted posed the resolution, saying that the • Sen. of Lincoln; department still is implementing rec- • Sen. Dan Hughes of Venango; A resolution to approve a gift from ommendations from previous investi- and the Norfolk Veterans’ Home Founda- gative committees. Patience and faith • Sen. Justin Wayne of Omaha. tion for construction of a park was in Department Director Scott Frakes The committee will brief the Judi- approved by lawmakers May 16. is what is needed at this point, he said. ciary and Appropriations committees LR251, introduced by Gretna “They are doing what we’ve asked in December 2017 and 2018 and issue Sen. John Murante, accepts the gift them to do and sometimes it takes a final report of recommendations to of $300,000 in material, labor and time to continue on that path,” Larson the Legislature before disbanding Jan. in-kind services so that a World War said. “[Frakes] was very clear when he 19, 2019. II and Korean War Memorial may be

PAGE 6 • UNICAMERAL UPDATE • 105TH LEGISLATURE May 15 - 23, 2017

added to the Flag Plaza at the entrance program, at a savings of approximately The provisions also require that of the Norfolk Veterans’ Home. $7.4 million over representatives of the following orga- Murante said the project would be two years. The bill nizations be added to the state Advi- completed with no cost to the state was introduced by sory Committee on Developmental and would improve the quality of life Ralston Sen. Merv Disabilities: for veterans served by the home. Riepe on behalf of • Nebraska’s designated protec- “These memorials will serve as a Gov. Pete Ricketts tion and advocacy organization; constant reminder of the sacrifices our as part of his pro- • the Nebraska Planning Council service men and women have made in posed budget modi- Sen. on Developmental Disabilities; the name of freedom,” he said. fication program. and Norfolk Sen. Jim Scheer supported Omaha Sen. Bob Krist expressed • the University Center for Ex- the resolution, noting that most of the concern during general file debate cellence in Developmental funds were raised in the Norfolk area April 26 that elimination of the pro- Disability Education, Research and all were private funds. gram would result in counties being and Service. “[It] is a tribute to those individuals responsible for the financial support Also included in the commit- who are staying in the veterans’ home of individuals with short-term dis- tee amendment were provisions of there,” he said. “It gives them a place abilities. LB495, which clarifies funding priori- to go out and reflect.” “This will put an unfunded man- ties for individuals with developmen- The resolution was adopted on a date on your counties,” he said. tal disabilities who are eligible for 34-0 vote. Krist offered an amendment dur- services through the DHHS Medicaid ing debate May 15, adopted 44-0, that and community-based services waiver. retained the State Disability Program. These provisions update defini- The amendment left intact provisions tions for developmental and intellec- from two additional Riepe bills that tual disabilities and pause for two years were added through a Health and Hu- a state entitlement program for high man Services Committee amendment. school graduates with developmental Developmental disability The committee amendment, adopt- disabilities under the waiver program. changes amended, approved ed 42-0, added provisions from LB417 Riepe said the changes will ensure that change requirements for DHHS that the state is in compliance with Senators approved a bill May 18 from coordinating quality review federal regulations. Currently, Ne- that makes several changes related to teams to coordinating the develop- braska has a state-funded program that services for individuals with develop- ment and implementation of a quality prioritizes high school graduates with mental disabilities. management and improvement plan developmental disabilities and enrolls Under current law, the state De- for individuals with developmental them into the waiver immediately partment of Health and Human disabilities. upon eligibility, he said. Services (DHHS) must perform an The amendment requires DHHS “The current acting waiver, sub- independent medical review of an to develop and implement a plan to mitted and approved under the prior individual’s disability if he or she is promote and monitor the quality of administration, does not have priori- denied benefits by the federal Social services and quality of life for people tization categories approved by CMS Security Administration based on the with developmental disabilities. The [Centers for Medicare and Medicaid duration of the disability. plan will rely on data gathered by in- Services],” he said. “We are out of An individual may then qualify for dependent evaluators collected from compliance.” and receive short-term assistance from people who receive services and their Riepe offered an amendment dur- the State Disability Program for up to families. ing select file debate May 16, adopted 12 months. The program currently The plan will be delivered to the 36-0, to ensure that the high school has 16 active participants and includes Legislature by Sept. 30, 2017, and – graduate entitlement program does not medical and cash assistance. beginning in 2018 – annual reports expand to include more individuals. LB333 originally would have elimi- regarding outcomes and improvement Bellevue Sen. sup- nated the state’s short-term disability priorities will be provided. ported the amendment, which she

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 7 May 15 - 23, 2017 said would continue the state’s com- beneficiary enrolled under a contract a probate estate to settle a Medicaid mitment to the families of those with and based on the actuarially sound debt. That bill adopted the federal developmental disabilities while being capitation rate for the provision of ser- definition of an estate to include ad- compliant with federal regulations. vices under the state plan, and which ditional assets in an attempt to combat “It will allow us to maintain entitle- the state makes regardless of whether the hiding of assets. ment language for those students who the particular beneficiary receives A bill passed May 16 provides guid- are leaving our high schools – in our services during the period covered by ance on implementing the expanded statutes – with a date of July 1, 2019, the payment. asset recovery program. Introduced so we are sure that we can come back The program applies to providers by Columbus Sen. Paul Schumacher, and make sure that those kids are owned or operated by the state or a LB268 specifically taken care of,” Crawford said. city, county, rural or suburban fire itemizes which Following adoption of the Riepe district, hospital district, federally assets are eligible amendment, LB333 advanced to recognized Indian tribe or other unit for recovery by the final reading by voice vote. Senators of government. Participation by local state Department then passed the bill May 18 on a vote government entities is voluntary. of Health and of 48-0. DHHS is required to submit a state Human Services plan amendment by Jan. 1, 2018, to (DHHS). Sen. Paul Schumacher Bill seeking more federal provide for a supplemental reimburse- Under the bill, a person apply- funds for emergency medical ment rate and to submit necessary ing for Medicaid assistance will be transports passed materials to the federal government required to disclose all interest in real annually. estate, trusts, corporations, limited li- A bill that allows public and non- The bill passed on a 41-0 vote. ability corporations or other entities, profit emergency medical transporters as well as any income derived from to be reimbursed by Medicaid at the them. Failure to disclose such interests same rate as hospitals and other medi- will result in any received assistance cal providers passed May 16. being declared illegally obtained and LB578, introduced by Omaha subject to recovery by the state. Sen. Mike McDonnell, establishes Additional juvenile court judge If an applicant for assistance retains a Ground Emer- approved an interest in an asset that has been gency Transport transferred to a relative for less than Program in Ne- A bill increasing the number of a commercially reasonable price, the braska to allow juvenile court judges in Omaha was income derived from the asset transfer eligible providers passed by the Legislature May 16. also will be subject to recovery. to receive supple- LB10, introduced by Omaha Sen. DHHS can bring an action to mental Medicaid Bob Krist, adds one recover unlawfully obtained medical reimbursement for Sen. Mike McDonnell juvenile court judge assistance against the estate of a Med- ground emergency medical transport in counties with icaid recipient within five years after services. populations of at his or her death and any remaining The bill requires the state Depart- least 400,000 peo- spouse. ment of Health and Human Services ple. Douglas County LB268 defines a recipient’s estate (DHHS) to design and implement an currently is the only as any real estate, personal property intergovernmental transfer program county to qualify. Sen. Bob Krist or other asset in which the recipient relating to Medicaid managed care to The bill passed on a 43-3 vote. had any legal title or interest at or increase capitation payments in order immediately prior to the time of the to increase reimbursement to eligible Medicaid reimbursement from recipient’s death, including insurance providers. hidden assets approved policies and annuities in which the Capitation payment is defined as recipient had an interest. a payment the state makes periodi- Prior to legislation passed in 2015, Assets eligible for recovery under cally to a contractor on behalf of each the state could recover only assets from the bill include securities, bank ac-

PAGE 8 • UNICAMERAL UPDATE • 105TH LEGISLATURE May 15 - 23, 2017 counts, intellectual property rights, vious order to ensure there is no gap contractual or lease rights and other in protection. A renewed order will similar types of assets. Determinations be effective for a period of one year, by DHHS as to whether a transfer of commencing on the first day following assets is commercially reasonable can expiration of the previous order. be appealed. Provisions of LB178, originally Omnibus retirement bill The bill passed on a 37-11 vote. introduced by Lincoln Sen. Kate Bolz, approved allow a victim of Stronger human trafficking sexual assault to file A bill that makes numerous chang- penalties adopted for civil protection es to the state’s retirement plans orders against the received final approval May 18. Lawmakers passed a bill May 16 perpetrator. The LB415, introduced by Seward Sen. that addresses the rise in human traf- order will prohibit Mark Kolterman, creates a new “Rule ficking in the state. a perpetrator from of 85” with a mini- LB289, introduced by Lincoln Sen. contacting or com- Sen. Kate Bolz mum retirement Patty Pansing municating with the victim. age of 60 for new Brooks, increas- Provisions of LB188, originally in- school employees. es penalties for troduced by Omaha The change applies a number of Sen. , only to employees crimes, including allow for the parent hired on or after pandering and of a child conceived July 1, 2018. Un- Sen. Mark Kolterman human traffick- as a result of a sexu- der the rule, an employee may retire ing for labor or Sen. Patty Pansing Brooks al assault to petition at age 60 if their age plus their years of sexual exploitation. for termination of creditable service equal 85 or higher. The penalties for pandering or parental rights of Sen. Sara Howard Also included are provisions of trafficking of an adult increase from the perpetrator. six additional measures introduced a Class III to a Class II felony, punish- The bill passed on a 48-0 vote. by Kolterman that make changes to able by 1 to 50 years in prison. the various state retirement plans, The bill imposes even stronger Judicial salary increase including: penalties for sex trafficking offenses approved • LB31, which makes changes involving a minor. Previously a Class in the school employees retire- II felony, sex trafficking or solicitation Judges will receive a pay raise under ment plan related to creditable of a minor is categorized as a Class a bill passed by the Legislature May 16. service; IB felony, punishable by a minimum LB647, introduced by Lincoln Sen. • LB32, which changes the fre- of 20 years in prison to life imprison- Patty Pansing Brooks, increases by 1 quency and method of calcula- ment. percent the salary of Nebraska Su- tion of county prior service an- The definition of sex trafficking preme Court justices, effective July 1. nuity payments in the County also is updated to include solicitation. The raise will result in an annual salary Employees Retirement Act; Provisions of three additional bills of $173,694 annually. An additional • LB110, which eliminates the dealing with sexual assault and domes- 1.5 percent raise will take effect Jan. obligation of political subdivi- tic violence are included in LB289. 1, 2019, increasing the justices’ salary sions to file annual reports The first is LB191, originally in- to $176,299. on defined contribution plans troduced by Pansing Brooks, which The salaries of lower-court judges after Dec. 31, 2017, and delete prohibits the withdrawal of a petition are tied to those of the Supreme Court the requirement for the Public for a protection order except upon or- justices and will increase by the same Employees Retirement Board to der of the court. A victim of domestic percentages. design and provide the annual abuse can file a petition and affidavit The bill passed on a 42-1 vote. reporting form; to renew a protection order up to 30 • LB278, which clarifies the days before the expiration of the pre- definition of disability in the

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 9 May 15 - 23, 2017

county, state and school plans; ment plan from filing for bankruptcy solvent and stable so we don’t have • LB413, which makes technical unless the plan’s funded ratio reaches to worry about bankruptcy,” Kolter- and clean-up changes to the a certain percentage. The ratio will man said. judges and state patrol retire- increase incrementally from approxi- Sen. Sue Crawford of Bellevue sup- ment plans; and mately 52 percent for any petition filed ported the amendment but said that • LB532, which makes changes between 2020 and 2023 to 90 percent Omaha and Lincoln do not because it regarding military service in the after Jan. 1, 2038. could have unintended consequences judges and state patrol plans. Schumacher said the rules deter- for those cities’ bond ratings. Also included are provisions of mining which of a city’s creditors get “The city of Omaha and the city of LB219, introduced by the Nebraska paid first in the event of bankruptcy Lincoln have good bond ratings and Retirement Systems Committee, are unclear, creating uncertainty for are able to get bonds right now,” she which make changes related to autho- a city’s bondholders and pensioners. said. “It’s not a concern they have and rized benefit elections and actuarial The amendment will reduce that un- we don’t want to create that problem assumptions. certainty by removing a city’s ability to for them.” The bill passed 48-0 and takes ef- declare bankruptcy unless it follows a After adoption of the amendment fect immediately. path toward a higher level of pension May 15, senators advanced LB72 to funding, he said. final reading by voice vote. “Don’t follow it, continue under- The bill then passed May 18 on a funding your pensions, and you’re 41-4 vote. going to be stuck without the right to declare bankruptcy under our law,” City bankruptcy tied to Schumacher said. pension funding level The proposal will protect bond- holders, pensioners and the state if Cities with pension plans not either of its two largest cities would Tax incentive for workforce funded to a certain level may not file go bankrupt, he added. Lincoln’s housing construction stalls for bankruptcy under a bill passed by pension plan is approximately 75 the Legislature May 18. percent funded, Schumacher said, A bill that would allow certain Introduced by Columbus Sen. but Omaha’s is only about 50 percent cities to use tax increment financing Paul Schumacher, funded, which he said is too low. (TIF) to support the construction of LB72 initially pro- The amendment also will allow a workforce housing stalled after a failed posed a statutory city or village without a pension plan cloture motion May 16. lien on government — which Schumacher said is typical Introduced by Gering Sen. John bonds to ensure of most cities and villages in the state Stinner, LB496 that bondholders — to declare that its general obligation would authorize cit- are paid first if the bonds would be equally and ratably ies of the first and issuing government Sen. Paul Schumacher secured by property taxes levied from second class and entity goes bankrupt. Current law year to year by the city or village. Those villages to include authorizes counties, cities, villages and bonds would have a first lien on the the construction other Nebraska political subdivisions to property taxes levied. of single-family or file a petition in U.S. bankruptcy court. Sen. Mark Kolterman of Seward multi-family hous- Sen. John Stinner Senators had expressed concern supported the amendment, saying ing as part of a redevelopment project during general file debate about that it would help address the issue of eligible for tax increment financing. prioritizing bondholders over a city’s underfunded city pension plans. He The bill would require a municipal- pensioners and services. said the Legislature should continue to ity to conduct a housing study, prepare So Schumacher introduced an discuss pension reform because several an incentive plan for the construction amendment on select file, adopted Nebraska cities have plans that are of housing meant for new or existing 30-0, that instead will prevent a city only 50 to 60 percent funded. workers and hold a public hearing on or village with a defined benefit retire- “It’s all about keeping these plans the plan.

PAGE 10 • UNICAMERAL UPDATE • 105TH LEGISLATURE May 15 - 23, 2017

After the hearing, the municipal- divert property tax revenue from pub- every contractor is fully employed.” ity would be required to determine lic schools, natural resources districts Sen. Matt Williams of Gothenburg that the plan is necessary to prevent and other entities. It also would distort supported the bill, saying that TIF the spread of blight and substandard a community’s property valuations helped draw four Fortune 500 com- conditions within the municipality, and make it difficult for builders that panies to the Gothenburg area. He would promote additional safe and do not use TIF to compete with those said using TIF for housing projects suitable housing for people employed that do, he said. Friesen said he sup- is intended to benefit communities, there and would not result in the ports the use of TIF for residential not increase profits for bankers and unjust enrichment of any individual projects only if it is used for infrastruc- realtors. or company. ture such as streets and sewer systems. “I have yet to see a case where any- Stinner said the final provision “Now we’re taking it one step fur- one has seen any unjust enrichment would ensure that the incentive pro- ther and we’re starting to subsidize from a [TIF] project,” Williams said. gram cannot be used to pad builders’ the building itself,” he said. “And He also filed an amendment on profits. that’s where I think we take the wrong select file that would define workforce “This standard ensures that the direction.” housing as an owner-occupied home funding is used to buy down the home Friesen introduced an amend- that costs no more than $275,000 to price or absorb some of the risk of ment on select file that would allow build or a rental housing unit that building spec housing,” he said. only the property taxes collected by costs no more than $200,000 to build. Bellevue Sen. support- a city or village to be diverted for the The definition was used in other leg- ed the bill, saying that using TIF to construction of a workforce housing islation passed this session. build housing would boost economic project using TIF. After general file debate May 15, development. She said Bellevue has Also in opposition was Sen. Mike Stinner filed a motion to invoke clo- used TIF for several projects — includ- Groene of North Platte, who said the ture, or cease debate and vote on the ing apartment complexes, a retirement bill is designed to help developers bill. It succeeded 33-9. community and a business park — af- maximize their profits. He said his Senators then adopted a technical ter ensuring that they were viable and constituents are asking for property amendment and voted 31-8 to advance would benefit the community. tax relief, not additional housing. the bill to select file. “Whether you like it or not, [TIF] “Do you care how [LB]496 looks Stinner again filed a cloture motion is one of the few [economic develop- to the landowners out there and the on the second stage of debate May 16. ment] tools that we have,” she said. average property tax payer?” Groene It failed 32-9. Thirty-three votes were Sen. of Henderson said. “You are giving an incentive in needed. The bill remains on select opposed the bill, saying that it would tough times to an industry [in which] file. g

105TH LEGISLATURE • UNICAMERAL UPDATE • PAGE 11 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