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March 28-31, 2017 UNICAMERAL UPDATE Stories published daily at Update.Legislature.ne.gov Vol. 40, Issue 13 / March 28 - 31, 2017 Suspension of tax credits considered he Revenue Committee held a special hearing March 28 on Tan amendment to a bill that is intended to help the state make up its current budget shortfall. As introduced by Sen. Jim Smith of Papillion, LB233 initially was draft- ed to make several technical changes to state tax law. Smith brought an amend- ment, AM707, to the Sen. Jim Smith hearing, which would replace the bill’s provisions and suspend Sen. John Stinner said suspending three tax credits would save more than $20 million over three planned tax credits: one for child the next year, helping to balance the state’s budget. care and education providers and staff, was John Cavanaugh of the Holland this year, he added. another for investors in early-stage com- Children’s Movement. Cavanaugh “If you are looking for revenue, this panies and a third for property owners. said the suspension of the credit for is not the place to find it,” he said. Gering Sen. John Stinner, chairman child care and education providers “If you are looking to do real damage of the Appropriations Committee, said would set back efforts to increase to an effort underway to raise quality in his testimony that suspending the the quantity and quality of child care standards for child care in Nebraska, credits would save the state approxi- programs across the state. Only 39 this is certainly the place to start.” mately $21.7 million over the next year. programs currently qualify for the Susan Snow, director of the Morn- Testifying in opposition to the bill credit, which only became available ing Star Preschool and Child Care (continued page 2) Tourism commission restructure advanced bill that would revamp the Nebraska Tourism Com- commission to adopt written policies governing expendi- mission received first-round approval March 28. ture of appropriated funds and stipulate that contracts A LB222, introduced by Gering Sen. John Stinner, awarded by the commission follow rules established by the would expand the commission’s membership from nine to state Department of Administrative Services. 11 governor-appointed members. Four would be required Stinner said the commission’s fiscal problems came to to have professional, volunteer or public service experience a head in 2016 when its director was fired for misuse of related to the governance duties of the commission and state-appropriated funds following a “scathing” state audit seven would be affiliated with the tourism industry. report. The commission has since begun taking steps to Thirty days after passage, the bill would dissolve the rectify those problems, he said, and the bill would help current commission membership and create 11 districts by diversifying the board and increasing professionalism. based on geography and tax lodging revenues to ensure “LB222 is part of a long-standing effort to integrate statewide representation. Members would serve four-year oversight measures into the structure of the Nebraska terms and be limited to two successive terms. Tourism Commission,” Stinner said. The bill also would clarify grant guidelines, require the The bill also would redefine what must be contained (continued page 2) INSIDE: Stronger human trafficking penalties advanced • Aeronautics, Roads Dept. merger advanced March 28 - 31, 2017 Suspension Tourism commission restructure advanced of tax credits (continued from front page) in the commission’s strategic plan to an amendment that would have re- considered include: moved a mandate in existing law that (continued from front page) • marketing strategies for promot- the commission develop a statewide Center in Omaha, also testified in ing tourism; strategic plan and instead would allow opposition to the bill. Snow said that • methods to expand existing the commission to review, amend or finding qualified staff members is diffi- tourism capacity; replace provisions of the strategic plan. cult because of the child care industry’s • an examination of best manage- The state has paid $109,000 for an low pay. Suspending the tax credit for ment practices for the tourism existing strategic plan, she said, and child care and education providers industry; should work within it to improve tour- would make it even harder, she added. • a review of revenue in the State ism in Nebraska. The only flaw in the “With these credits, we could do Visitors Promotion Cash Fund existing plan is that the commission’s more for our families, our children available for tourism develop- staff did not implement it, Blood said, and our staff,” Snow said. ment at the state level; and adding that she was in support of the John Cederberg, speaking on • recommended strategies to underlying bill. behalf of the Nebraska Chamber of provide technical assistance, “Once you have a strategic plan, Commerce and Industry, the Greater marketing services and state aid you have a foundation,” she said. “So Omaha Chamber of Commerce and to local governments and the it is your job not to constantly rewrite the Lincoln Chamber of Commerce, tourism industry in Nebraska. the strategic plan, but to revisit and provided neutral testimony on the Sen. Robert Clements of Elmwood amend as necessary.” bill. He said the chambers support supported the bill, saying that state- Sen. John Murante of Gretna op- the three tax credits that would be wide representation and the addition posed the amendment. Removing suspended but understand that the of members of the business commu- the existing strategic plan mandate state is in a tough financial spot. nity would improve the commission. also would make permissive all of the “If you must go this way, for good- “I see the tourism industry as a other mandates currently in state law ness’ sake don’t let it become perma- major industry in our state and we had relating to the commission, he said. nent,” Cederberg said. a problem with this commission that The amendment failed on a vote The amendment will be considered needed attention,” Clements said. of 10-20. The bill then advanced to by the Legislature once the bill is Bellevue Sen. Carol Blood offered select file 32-1. g scheduled for floor debate. g UNICAMERAL UPDATE The Unicameral Update is a free, weekly newsletter published during the legislative session. It is produced by the Clerk of the Legislature’s Office through the Unicameral Information Office. For print subscriptions, call 402-471-2788 or email [email protected]. Visit us online at Update.Legislature.ne.gov and follow us on Twitter.com/UnicamUpdate. Clerk of the Legislature: Patrick J. O’Donnell Editor: Heidi Uhing; Writers: Kyle Harpster, Kate Heltzel, Ami Johnson; Photographer: Bess Ghormley Printed copies of bills, resolutions and the Legislative Journal are available at the State Capitol room 1104, or by calling 402-471-2709 or 800-742-7456. Status of bills and resolutions can be requested at that number or can be found on NebraskaLegislature.gov. Live video of hearings and floor debate can be viewed on NET2 and at NetNebraska.org/capitol. Senators may be contacted by mail at this address: Senator Name, District #, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604 Assistance provided by the Clerk of the Legislature’s Office, the Legislative Technology Center, committee clerks, legal counsels, journal clerks, pages, transcribers, mail room and bill room staff and the State Print Shop. The Unicameral Update is available as an audio recording from the Nebraska Library Commission’s Talking Book and Braille Service. Call (800) 742-7691 for more information. THE NEBRASKA LEGISLATURE’S OFFICIAL NEWS SOURCE SINCE 1977 PAGE 2 • UNICAMERAL UPDATE • 105TH LEGISLATURE March 28 - 31, 2017 is an example — albeit a small one — grow, Nebraska must advance priori- of how the Legislature can increase a ties that advance innovation entrepre- county’s expenses, forcing it to raise neurship,” Morfeld said. property taxes. Sen. Matt Williams of Gothenburg Injunctions for hybrid seed “If this is a state concern, then spoke in support of the bill, saying it corn violations advanced shouldn’t the state pay the bill for would help kick-start new biotechnol- injunctive action?” he said. ogy companies, which generally need A restraining order or injunction Lawmakers adopted a technical large amounts of capital. could be imposed against anyone who amendment and then advanced the “I would submit that this rather sells or represents corn seed as a hybrid bill to select file 39-0. small investment of $2 million in ex- variety that does not meet identity isting cash funds is that type of small standards under a bill advanced from investment that can lead to larger general file March 30. benefits in the future,” he said. Under LB276, introduced by Sen. Sen. Paul Schumacher of Colum- Joni Albrecht of Thurston, anyone bus opposed the bill, saying it does violating that pro- not include a review process by which hibition would be Funding for biotech startups the Legislature can determine whether guilty of a Class advanced the funding is effective. Additionally, III misdemeanor. he said, the Legislature’s Bioscience In addition to the Lawmakers advanced a bill March Steering Committee, created last year, criminal penalty, 28 that would provide financial assis- has not yet completed a strategic plan a district court in tance to the state’s bioscience industry. for expanding the bioscience economy the county where Sen. Joni Albrecht LB641, introduced by Lincoln Sen. in Nebraska. the violation occurs would have juris- Adam Morfeld, would create the Bio- “What are we doing when we’re diction to grant a restraining order or science Innovation training businesses that the first place a temporary, permanent or mandatory Program under the they should stop for a little extra boost injunction against that person.
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