The Legislature spent three full mornings of floor debate on Legislative Bill 10 (Presidential Elections-Winner Take All) without taking a vote on advancement of the bill. The body finished the week by giving final approval to a series of bills on Final Reading.
During the past week, testimony was presented on behalf of NFIB on each of the following bills:
Workers’ Compensation
- Legislative Bill 133–Workers Compensation–Interest Rate on Awards: Introduced by Sen. Laura Ebke (Crete), LB 133 would base the interest rate applicable to awards of WC benefits on appeal (14 percent) upon the same standard applicable to other money judgments. (NFIB Position–Support)
- Legislative Bill 134–Workers Compensation–Confidentiality of First Injury Reports: Sen. Jerry Johnson (Wahoo) is the sponsor of LB 134, which would make first injury reports relating to workplace injuries confidential, unless the employee waives confidentiality to allow the report to be made available for public inspection. (NFIB Position–Support)
- Legislative Bill 566–Workers’ Compensation–Exclusive Remedy: LB 556, introduced by Sen. Rick Kolowski (Omaha), would waive workers’ compensation as the exclusive remedy if an employer is guilty of willful negligence. The measure would also deem a finding by the Nebraska Workers’ Compensation Court that an employee has been injured by reason of the willful negligence of the employer to be determinative and binding on the parties in any subsequent action for damages at law. (NFIB Position–Oppose)
Income Tax
Legislative Bill 523–Income Taxation: Introduced by Sen. Kate Sullivan (Cedar Rapids), LB 523 would increase income tax rates to facilitate increases in state support for public education, shifting some of the tax burden for education from property taxes to income taxes.
Beginning January 1, 2016, the bill would:
- increase the lowest individual income tax bracket from 2.46 percent to 2.56 percent
- the second lowest income tax bracket from 3.51 percent to 3.65 percent
- the third lowest income tax bracket from 5.01 percent to 5.21 percent
- and the highest individual income tax bracket from 6.84 percent to 7.11 percent.
The measure would also, beginning January 1, 2016, increase the corporate income tax rate from 5.58 percent to 5.80 percent on the first $100,000 of taxable income and from 7.81 percent to 8.12 percent on all taxable income in excess of $100,000. (NFIB Position–Oppose)
Property Taxes
- Legislative Bill 309–Property Tax Credit Cash Fund: Sen. Al Davis (Hyannis) introduced LB 309 which would appropriate $25 million from the General Fund to the Property Tax Credit Cash Fund for fiscal years 2015-16 and 2016-17. (NFIB Position–Support)
- Legislative Bill 364–Property Tax Credit Cash Fund: Introduced by Sen. Dan Watermeier (Syracuse), LB 364 would transfer $60 million from the General Fund to the Property Tax Credit Cash Fund in fiscal years 2015-16 and 2016-17. (NFIB Position–Support)
- Legislative Bill 387–Property Tax Credit Cash Fund: Senator David Schnoor (Scribner) has introduced legislation (LB 387) that would transfer $60 million from the Cash Reserve Fund to the Property Tax Credit Cash Fund on or before December 15, 2015. (NFIB Position–Support)
Upcoming Hearings
NFIB will be presenting testimony in the upcoming week on a series of workers’ compensation bills to be heard before the Business and Labor Committee and will also testify in support of legislation to exempt all tangible personal property from property taxation.
March 2 – Business and Labor Committee
- Legislative Bill 158–Workers Compensation–Employee Misrepresentation: Sen. John McCollister (Omaha) is the sponsor of LB 158, which would reinstate the defense of employee misrepresentation for employers to avoid having to pay benefits resulting from an injury or condition relating to misrepresentations given by the employee when applying for a position with the employer. (NFIB Position–Support)
- Legislative Bill 363–Workers’ Compensation–Medical Payments Penalty: Under LB 363, introduced by Sen. Jeremy Nordquist (Omaha), all medical payments under the Workers’ Compensation Act would be payable within 30 days after notice has been given or within 30 days after the entry of a final order, award, or judgment of the court. Medical payments remaining delinquent for 30 days or more would require payment to be made to the employee in an amount equal to 50 percent of the delinquent medical payments. (NFIB Position–Oppose)
- Legislative Bill 388 – Workers’ Compensation – Total Disability Benefits: Sen. Matt Hansen (Lincoln) has introduced legislation LB 388 that would provide annual adjustments for total disability benefits in a proportion equal to annual increases resulting from the determination of the state’s average weekly wage. (NFIB Position–Oppose)
- Legislative Bill 600 – Workers’ Compensation – Self Insured Trust Funds: Senator Laura Ebke has also introduced legislation that would authorize trust funds which are required to be established under the Workers’ Compensation Act to be invested in the same manner authorized for insurers under the Insurers Investment Act. Currently, under Neb.Rev.Stat. Section 48-145, self-insured’s are require to post financial security in an amount set by the Workers’ Compensation Court, to provide reserves for the self-insured’s anticipated claims for that year. The financial security requirement can be satisfied by purchasing a bond securing the amount required by the Court, or by creating a trust that holds the full amount required by the Court. The Court has placed significant restrictions on the investments that can be made with the funds held in trust and LB 600 would allow the funds to be invested in the same manner, and under the same regulatory restrictions, that apply to insurer’s investing their reserves under the Insurer’s Investment Act. (NFIB Position–Support)
March 5 – Revenue Committee
- Legislative Bill 398 – Personal Property Tax: Sen. Burke Harr (Omaha) has also introduced legislation (LB 398) that would exempt all tangible personal property from property taxation, effective January 1, 2017. (NFIB Position–Support)
Small Business Day at the Capitol
NFIB/Nebraska will co-sponsor Small Business Day at the Capitol, March 31, in Lincoln.
NFIB’s co-sponsors are the Nebraska Chamber of Commerce and Industry, the Greater Omaha Chamber of Commerce, the Lincoln Chamber of Commerce, the Lincoln Independent Business Association and Nebraskans For Workers’ Compensation Equity and Fairness.
Small Business Day gives NFIB members an opportunity to network with other small business owners. Gov. Pete Ricketts is expected to speak, and there will be a legislative briefing by state senators.
Details on the time and location of Small Business Day at the Capitol will be released soon. Check www.NFIB.com/NE for the latest information.
Past Reports
