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Weekly Legislative Report for March 13, 2020

Quick Links: Unicameral Website 2019/2020 Standing Committees 2020 Legislative Calendar

2020 Hearing Schedule Legislative Daily Calendar Senators’ Web Pages

Link to NET - view live committee hearings and floor debate 2020 Priority Bills

HAPPENINGS IN THE THIS WEEK

It has been a wild week in the Nebraska Legislature this week. With no Consent Calendar this year lawmakers have been amending bills into other bills in an attempt to try and pass bills that were not prioritized and ones that may be considered noncontroversial. I say, should be considered noncontroversial because there have been a few bills that have become controversial.

For example, LB912 - Change provisions relating to examination of witnesses by telephonic, videoconferencing, and similar methods, Senator Brandt’s bill, prioritized by Judiciary Committee Chairman, , attempted to amend four other bills (LB271, 1027, 868, and 869) into LB912.

All but LB271 - Change provisions relating to releases, covenants not to sue, or similar agreements on joint and several liability were agreeable to by more than half the body.

LB271, as stated in the bill’s Statement of Intent: “….the reasons for this bill and the purposes which are sought to be accomplished thereby: The held in Tadros v. City of Omaha that when multiple defendants are jointly and severally liable, the joint and several liability is destroyed when settling with and releasing one or more co-defendants leaves only one defendant liable.

LB271 reverses this decision by clarifying that a release, covenant not to sue or similar agreement entered into by a claimant and a person liable does not abrogate the joint and several liability of remaining persons liable.”

When the provisions of LB271 drew tremendous opposition from Senators Le Grone and Hilgers the question (bill) was divided into two parts. One part with just the contents of LB271 and the remaining all the contents within the other bills, including LB912 itself. The provisions in LB271 were not successfully adopted to LB912. The remainder of LB912 and the provisions of the other bills amended into it were moved from General File. With the failure of the provisions of LB271 being adopted, they are most likely done for the session. Although, it is possible there could be an attempt to adopt them into another bill later in the session, although unlikely. This week also saw extended debate on LB910 - Provide for, change, eliminate, and change distribution of fees and funds of the Secretary of State.

Unlike other bills that had multiple bills amended into them, LB910 was a standalone, single subject bill that saw fierce opposition by some that felt there were too many fees (67) being increased in the bill without each of them being addressed individually in their own separate bills.

There was also a great deal of debate about the difficulty in increasing some fees by just $1 in the past and in LB910 there were a multitude of fees effecting business that would go up as much as 100%.

LB910 saw its three hours of General File debate and then was passed over. Following the Speaker’s practice, it will now be up to the bill’s sponsor, Senator , to show that he has 33 votes to end a filibuster before the bill sees further General File debate and subsequent cloture vote, followed by a vote to advance(25) or kill the bill.

LB1008 - Provide, change, and eliminate provisions relating to appropriations & LB1009 - Provide for, change, and eliminate fund transfers, change use of funds, and eliminate a fund; both bills that make proposed adjustments to the biennium budget that approved last year saw extended debate this week on Thursday.

The proposed changes would result in a 3% overall growth in the state’s spending and increase the state’s Cash Reserve Fund, aka, rainy-day fund to $731.1 million. The adjustments also leave almost $134 million available for new spending. This is a result of state revenues coming in well over projects the last several months.

As reported in the Unicameral Update, March 13th, “Omaha Sen. Justin Wayne raised objections over some of the bills and provisions contained in the committee amendment, questioning the priorities outlined in the proposal. For example, Wayne said lawmakers should not provide $10 million for rural workforce housing when no direct appropriation for urban workforce housing has been approved during his time at the Legislature.

“There are some fundamental issues that will not allow me to go forward with this budget,” he said. “This budget places rural over urban [interests] and increases the rural and urban divide.””

Typically, on the last Legislative workday of the week the Legislature’s goal is to adjourn around noon. This week lawmakers were anxious to adjourn midday, on Thursday, to begin a four-day weekend. With the filibuster initiated by Senator Wayne and aided by Senator Chambers lawmakers were in session for over six hours, not adjourning till 5:37 p.m. A cloture vote needed to end debate on both bills as well.

If you would like to read more details about the entire debate on the adjustments to the budget, go to the Unicameral Update for additional coverage.

Lawmakers will be returning to Lincoln on Tuesday; March 17 following their four-day weekend and will begin their “late nights” schedule on Wednesday. Senators will work “late nights” the remainder of the 2020 Session.

There has also been some discussion with all that is happening around the world and locally with the coronavirus as to whether the Legislature will take a lengthy recess.

One item that must be addressed prior to an extended recess is the passage of the adjustments to the biennium budget, which has two more rounds of debate to pass. After that, it is possible the Legislature could take an extended recess and reconvene later this summer or fall.

The issue of property tax relief is still front and center on a large number of Nebraskan’s minds.

On Monday, the Revenue Committee, Chaired by Senator Linehan approved a new version of property relief in LB1106, Speaker Scheer’s 2020 priority bill.

The first attempt, LB974, has stalled between an urban and rural split over the bills impact on the state’s larger schools.

LB1106 has yet to be reported out of the Revenue Committee so no Committee Statement is available.

According to media reports, the new effort “relaxes” some of the spending and taxing controls on schools that were contained in its predecessor, LB974.

As reported in the Lincoln Journal Star, Senator Linehan stated that LB1106 admits that schools may still oppose the changes, which would almost ensure another filibuster.

2020 Legislative Races

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This year is also an election year, and the slate is set for the 2020 Nebraska Legislative primary races. February 18 was the date incumbents had to declare their intent to run either for reelection or for a different office in the state. March 2 was the deadline for new candidates for office to declare their intent to run.

There are six Senators who are term-limited out of the Nebraska Legislature, and so, the 2020 session will be their last. Of these six open seats four are located in Omaha, one in Lincoln and one in Madison County.

• LD9, Omaha, currently held by Senator

• LD11, Omaha, currently held by Senator

• LD19, Madison County, currently held by Senator

• LD29, Lincoln, currently held by Senator

• LD31, Omaha, currently held by Senator

• LD45, Bellevue. currently held by Senator

That leaves an additional 19 races across the state with an incumbent running. Five incumbents were lucky enough to see no formally filed opponents.

Below is a listing of the 2020 Legislative candidates. You may also view all candidates for any race in the 2020 election by clicking on the Statewide Candidate List on the Nebraska Secretary of State Office website.

2020 Primary Election - Legislative Candidates

1 , Peru (incumbent) 25 , Lincoln (incumbent) Dennis Schaardt, Steinauer Stephany Pleasant, Lincoln Janet Palmtag, Syracuse 27 , Lincoln (incumbent) 3 , Bellevue (incumbent) Brenda Bickford, Lincoln Rick Holdcroft, Bellevue 29 Neal Clayburn, Lincoln 5 Mike McDonnell, Omaha (incumbent) Jennifer Carter, Lincoln Gilbert Ayala Michael Connely, Lincoln Eliot Bostar, Lincoln 7 , Omaha (incumbent) Jacob Campbell, Lincoln Jorge Sotolongo, Omaha Lisa Lee, Lincoln

9 Marque Snow, Omaha 31 Alexander Martin, Omaha John Cavanaugh, Omaha Tim Royers, Omaha Mark Vondrasek, Omaha Mark Gruenewald, Omaha Rich Pahls, Omaha 11 Dennis Womack, Omaha 33 , Hastings (incumbent) Terrell McKinney, Omaha Teela Mickles, Omaha 35 , Grand Island (incumbent)

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Fred Conley, Omaha Ray Aguilar, Grand Island Cornelius Williams, Omaha John Sciara, Omaha 37 John Lowe, Kearney (incumbent) Gwen Easter, Omaha Mercadies Damratowski, Kearney

13 Justin Wayne, Omaha (incumbent) 39 , Elkhorn (incumbent) Allison Heimes, Elkhorn 15 , Fremont (incumbent) David Rogers, Fremont 41 , Albion (incumbent)

17 , Thurston (incumbent) 43 , Gordon (incumbent) Sheryl Lindau, Wayne Tanya Storer, Whitman

19 Mike Flood, Norfolk 45 Susan Hester, Bellevue Rita Sanders, Bellevue 21 , Lincoln (incumbent) Joseph Couch, Lincoln 47 , Bayard (incumbent) Brodey Weber, Lincoln 49 , Gretna (incumbent) 23 , Brainard (incumbent) , Omaha Helen Raikes, Ashland

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Note: if you would like to view the entire bill, the fiscal note, committee statement, etc. go to Nebraska Legislature and type the bill number in the "box" under "Search Current Bills" (located in the upper right of the homepage).

Any bills not passed or indefinitely postponed (killed) automatically carried over to the 2020 Legislative Session. New bills for the 2002 Session start with LB740.

NLICA 2019 2020 Bill Hearing Current AMD 2019/2020 Priority Introducer On Liner Committee Number Date Status into Bills LB18 1/31/2019 Briese Adopt the Remote Seller Sales Tax Collection Act. Revenue Committee Committee Earmarks the collections to the property tax credit cash fund. LB40 3/4/2019 Hilkemann Change provisions related to provisional operator's Transportation and Committee permits, LPD and LPE learner's permits, and Telecommunications interactive wireless communication devices Committee LB41 2/4/2019 Hilkemann Change provisions relating to transfers and uses of Appropriations General certain gaming taxes Committee LB50 1/23/2019 Vargas Change individual income tax brackets and rates. Revenue Committee Committee Increases the top personal income tax bracket from 6.84% to 7.84% for individuals, which affects businesses that are pass-through entities. Adds surtax of 1% - $1 million plus, 2% - $2 million plus LB71 1/23/2019 Hansen, M. Eliminate a cause of action for damages for shoplifting Judiciary Committee Gov. Signed LB99 2/20/2019 Wayne Change requirements of the Prompt Payment Act. Government, Military Committee Definition of small business references the North and Veterans Affairs American Industry Classification System Codes. + Committee language that requires pit within 15 days of goods delivered or services rendered by small business. LR3CA 2/7/2019 Erdman Constitutional amendment to provide income tax Revenue Committee Committee credits for property taxes paid. Would provide state

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NLICA 2019 2020 Bill Hearing Current AMD 2019/2020 Priority Introducer On Liner Committee Number Date Status into Bills income tax credits equal to 35% of local property taxes paid. Similar to LB829 introduced by Erdman in 2018. Estimates of $500 million. LB137 3/4/2019 Blood Adopt the Fantasy Contests Act and provide a General Affairs General gambling exception Committee LB139 1/28/2019 Kolterman Change provisions relating to a data base of Business and Labor Gov. contractors under the Contractor Registration Act Committee Signed LB151 2/20/2019 Brewer Adopt the Government Neutrality in Contracting Act. Government, Military Committee Has to do with public bid lettings. Adhering to and Veterans Affairs collective bargaining agreements. No discriminating Committee terms against a bidder by the entity seeking bids. LB155 2/7/2019 Brewer Eliminate authority for eminent domain by certain Natural Resources Gov. Brewer political subdivisions Committee Signed LB182 2/13/2019 Bolz Adopt the School District Local Option Income Surtax Revenue Committee Committee Act. Would allow an income surtax of up to 20% for 5yrs to reduce property taxes, for construction, remodel, or acquire real estate. LB183 1/24/2019 Briese Change the valuation of agricultural land and Revenue Committee Select Briese horticultural land for purposes of certain school district taxes. With the exception of the repayment of bonds, ag and horticultural land would be valued at 1% for property tax purposes. LB217 2/11/2019 Pansing Prohibit retaliation against employees for Business and Labor Gov. Brooks communicating about wages Committee Signed LR5CA 2/12/2019 Brewer Constitutional amendment to limit the percentage of Education Committee Committee funding for schools that comes from property taxes.

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NLICA 2019 2020 Bill Hearing Current AMD 2019/2020 Priority Introducer On Liner Committee Number Date Status into Bills Limits funding to 33% from local resources. LB237 2/22/2019 Crawford Change provisions relating to sales and use tax Revenue Committee Gov. Speaker collection fees. Would allow county treasurer and Signed DMV to increased collection allowance. All retailers get a max of $75 per month. Bill allows collection of 1/2% of by counties/DMV on amounts over $3k LB242 2/22/2019 Lindstrom Adopt the Infrastructure Improvement and Revenue Committee Committee Replacement Assistance Act and provide for a turnback of state sales tax revenue. Allow municipalities to keep a portion of the sales tax they collect on sewer and water to be used for infrastructure improv. LB254 2/4/2019 McCollister Adopt the Fair Chance Hiring Act. Has to do with when Business and Labor Final a potential employer can ask an applicant about their Committee criminal history. LB270 2/4/2019 Friesen Change licensing, registration, and titling provisions Transportation and Gov. for motor vehicles, etc.. Allow application for title to Telecommunications Signed contain the name as it appears on the driver’s license Committee or state ID card, or the TIN of the owner. Allow seller of a MV to change records at the LB276 2/13/2019 McCollister Change provisions relating to the taxation of income Revenue Committee Committee from certain small business corporations and limited liability companies LB288 2/1/2019 Linehan Change income tax rates. Shell bill with placeholders Revenue Committee General Revenue for potential changes to income tax rates. LB293 2/26/2019 Speaker Provide, change, and eliminate provisions relating to Appropriations Gov. Scheer appropriations Committee Signed

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NLICA 2019 2020 Bill Hearing Current AMD 2019/2020 Priority Introducer On Liner Committee Number Date Status into Bills LB298 2/26/2019 Speaker Repeal funds and authorize, provide, change, and Appropriations Gov. Scheer eliminate fund transfer provisions Committee Signed LB299 2/26/2019 Speaker Change Cash Reserve Fund provisions Appropriations Gov. Scheer Committee Signed LB305 2/4/2019 Crawford Adopt the Healthy and Safe Families and Workplaces Business and Labor General Act. Mandated paid time off for sick or safe time off Committee LB311 2/4/2019 Crawford Adopt the Paid Family and Medical Leave Insurance Business and Labor General Cavanaugh Act Committee LR8CA 2/27/2019 Linehan Constitutional amendment to limit the total amount Revenue Committee Committee of property tax revenue that may be raised by political subdivisions. Limits increases to 3% over prior year, unless a vote of the people approves LB314 2/14/2019 Briese Adopt the Remote Seller Sales Tax Collection Act and Revenue Committee Committee change revenue and taxation provisions. Multiple provisions to increase taxes - sales tax 1/2%, beer tax $1.07 per gallon, cig tax $1.50, wine $2.56, remove exemption on soda and bottled water, etc. LB361 2/11/2019 Hansen, M. Prohibit retaliation under the Nebraska Wage Business and Labor Select Payment and Collection Act and the Wage and Hour Committee Act LB362 2/11/2019 Hansen, M. Require payment of unpaid wages for violations of the Business and Labor Committee Nebraska Wage Payment and Collection Act Committee LB462 2/11/2019 Friesen Change provisions of the One-Call Notification System Transportation and Gov. Transportation and Act. Seems to coincide with changes to Title 155 being Telecommunications Signed Telecommunications proposed. Bills gives authority and direction to Fire Committee Marshal's office.

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NLICA 2019 2020 Bill Hearing Current AMD 2019/2020 Priority Introducer On Liner Committee Number Date Status into Bills LB482 2/27/2019 Erdman Provide for an adjustment to the assessed value of Revenue Committee Committee destroyed real property LB483 2/21/2019 Erdman Change the valuation of agricultural land and Revenue Committee General Erdman horticultural land. Changes to productivity/income basis. LB497 2/14/2019 Friesen Adopt the School District Property Tax Authority Act Revenue Committee Committee and change revenue and taxation provisions. Multiple provisions to increase taxes - sales tax 1/2%, beer tax $1.07 per gallon, cig tax $1.50, wine $2.56, taxes food LB520 2/26/2019 McDonnell Provide requirements for safety standards and Urban Affairs Committee General operating procedures for road construction and maintenance in cities of the metropolitan class LB583 3/1/2019 Hilgers Provide powers for certain counties under the Government, Military Gov. Arch Transportation Innovation Act Has to do with design- and Veterans Affairs Signed build and manager-general contractor contract Committee LB604 2/4/2019 Lindstrom Authorize High-Wage Jobs and Capital Investment Business and Labor General Creation Fund entities and provide grants, loans, and Committee economic assistance to such entities LB616 2/11/2019 Hilgers Provide for build-finance projects under the Build Transportation and Gov. Hilgers Nebraska Act and the Transportation Innovation Act. Telecommunications Signed Adds definitions for: "Build-finance" project, Financing Com plan. LB620 3/4/2019 Kolowski Provide for enforcement of handheld wireless Transportation and Committee communication devices as a primary action Telecommunications Com LB664 2/20/2019 Friesen Provide for certain income tax deductions. To adjust Revenue Committee Committee

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NLICA 2019 2020 Bill Hearing Current AMD 2019/2020 Priority Introducer On Liner Committee Number Date Status into Bills for federal tax cuts made last year. 9% NE Credit for production activities, aka, section 199. LB785 1/21/2020 Friesen Change vehicle size, weight, and load provisions, Transportation and General provide for stinger-steered automobile transporters Telecommunications and towaway trailer transporter combinations, and define emergency vehicle LR279CA 1/22/2020 Scheer Constitutional amendment to authorize an increase in Executive Board Committee the number of members of the Legislature LR280CA 2/18/2020 Wayne Constitutional amendment to change legislative term Executive Board Committee limits to three consecutive terms LR284CA 2/21/2020 Brewer Constitutional amendment to eliminate the state Revenue Committee income tax over a four-year period LB871 1/22/2020 Crawford Change unconscionability provisions under the Judiciary Committee Uniform Deceptive Trade Practices Act LB891 2/5/2020 Hilgers Provide an income tax credit for overtime pay Revenue Committee LB892 2/12/2020 Hilgers Change individual income tax brackets Revenue Committee LB923 1/30/2020 Lindstrom Change sales tax provisions relating to gross receipts Revenue General Speaker LB926 1/27/2020 Business and Change provisions relating to violations of the Business and Labor General Labor Employee Classification Act Committee LB930 2/21/2020 Briese Require a minimum amount of tax relief under the Revenue Committee Briese Property Tax Credit Act LB946 2/26/2020 Briese Change the sales tax rate and impose sales tax on Revenue Committee additional services LB974 1/22/2020 Revenue Change taxation and school funding provisions. Revenue General Revenue Committee Property tax relief bill. Uses state dollars to replace

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NLICA 2019 2020 Bill Hearing Current AMD 2019/2020 Priority Introducer On Liner Committee Number Date Status into Bills some property tax funding for schools. LB987 2/13/2020 Pansing Impose sales and use tax on dating and escort Revenue Committee Brooks services and provide for the use of the revenue LB989 2/13/2020 Wayne Impose sales and use taxes on digital advertisements. Revenue Committee ..., digital advertisement means an advertising message delivered over the Internet that markets or promotes a particular good, service, or political candidate or message." LB990 2/10/2020 Wayne Adopt the Games of Skill Act and use proceeds to General Affairs Committee reduce school district property tax levies LB1014 2/4/2020 Lindstrom Change provisions of the Multiple Employer Welfare Banking, Commerce and Final Arrangement Act Insurance LB1016 2/3/2020 Hansen, M. Change the Nebraska Wage Payment and Collection Business and Labor Final Act LB1033 1/31/2020 Friesen Change the distribution of sales tax revenue and Revenue General authorize the use of funds for certain infrastructure projects. 7/1/2020 sales and use tax on the sale and lease of aircraft goes to the DOT Aeronautics Capital Improvement Fund, created in the bill. LB1035 2/18/2020 Friesen Change the number of legislative districts. From 49 to Executive Board Committee 50. LB1042 1/29/2020 La Grone Authorize and provide tax deductions for Revenue Select contributions to the Nebraska educational savings plan trust by employers and persons other than participants as prescribed LB1109 2/13/2020 Chambers Provide a sales tax exemption for the furnishing of Revenue Committee

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NLICA 2019 2020 Bill Hearing Current AMD 2019/2020 Priority Introducer On Liner Committee Number Date Status into Bills water service LB1116 2/11/2020 Morfeld Adopt the New School Construction and Water Access Urban Affairs Committee Act LB1179 2/20/2020 Wayne Adopt the ImagiNE Small Business and Urban Revenue Committee Revitalization Act LB1201 2/5/2020 Bostelman Create the Flood Mitigation and Planning Task Force Natural Resources General LB1202 2/19/2020 Linehan Adopt the Opportunity Scholarships Act and provide Revenue Committee for tax credits LB1211 2/5/2020 Hansen, B. Change requirements for the preparation of proposed Government, Military Committee budget statements under the Nebraska Budget Act and Veterans Affairs LB1213 2/27/2020 Hansen, B. Change tax and school funding provisions Revenue Committee LR300CA 2/12/2020 Erdman Constitutional amendment to prohibit all forms of Revenue Committee taxation other than a consumption tax

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