NFIB/Nebraska State Director Bob Hallstrom reports on the end of the first half of the 104th Legislature
The gavel has dropped on the 2015 Legislative Session, as lawmakers adjourned Friday, May 29. Adjournment occurred after day 59, rather than the scheduled June 5 date for adjournment. Lawmakers will reconvene the 2016 Legislative Session on January 6, 2016, at which time floor debate on carryover bills and introduction of new bills will commence.
Victories for Small Business
NFIB supported a number of positive measures that were enacted into law this session, including the following:
Legislative Bill 156 – Angel Investment Tax Credit: Legislation introduced by Sen. John Stinner (Gering) will increase from $3 million to $4 million the amount of tax credits allowed annually under the Angel Investment Tax Credit Act.
Legislative Bill 226 – Securities Act/Crowd Funding: LB 226 will allow small businesses to seek start-up capital through new avenues under legislation introduced by Sen. Colby Coash (Lincoln). The legislation will allow all projects attempting to raise money to proceed without registration under state and federal securities laws and would require approval from the state Department of Banking and Finance.
Legislative Bill 259 – Personal Property Tax Relief: Nebraska businesses will receive relief from personal property taxes under LB 259. Introduced by Sen. Mike Gloor (Grand Island), the measure will exempt the first $10,000 of personal property from taxation. The bill is estimated to provide an annual savings of $162 per business taxpayer and aggregate tax relief of $19.6 million.
Legislative Bill 480 – Workers’ Compensation: LB 480, introduced by Sen. Burke Harr (Omaha), contains the provisions of a workers’ compensation compromise package, including:
- Interest Rate on WC Awards – These provisions will reduce the interest rate currently applicable to awards of WC benefits on appeal from 14 percent to approximately 8 percent (T-bill rate plus 6 percent).
- Employee Misrepresentation – The defense of employee misrepresentation will be reinstated to allow 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.
- Balance Billing of Employees – Will clarify that the prohibition against “balance billing” an employee for medical expenses in excess of the workers’ compensation fee schedule extends to finance charges and late penalties.
- Self-Insured Trust Funds – Will authorize trust funds required to be established under the Workers’ Compensation Act to be invested in the same manner authorized for corporate trustees holding retirement or pension plans for the benefit of current or former employees of political subdivisions.
Bad for Small Business Bills Stall
NFIB was also successful in helping to stall action on the following measures that would have been detrimental to small business owners.
- Legislative Bill 83 – Prohibition on Employee Wage Disclosure: LB 83, introduced by Sen. Tanya Cook (Omaha), would prohibit an employer from requiring non-disclosure of wages as a condition of employment and prevent an employer from requiring an employee to sign a waiver or other document purporting to deny an employee the right to disclose the employee’s wages. The measure would also prohibit an employer from taking any adverse employment action against an employee for disclosing an employee’s own wages or discussing another employee’s wages that have been disclosed voluntarily. Finally, the bill would establish a cause of action under the Nebraska Wage and Payment and Collection Act for violations by an employer with the employee entitled to receive reinstatement, back pay, restoration of loss service credit, money damages and costs and reasonable attorney’s fees.
- 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.
- Legislative Bill 388 – Workers’ Compensation – Total Disability Benefits: Sen. Matt Hansen (Lincoln) 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.
- Legislative Bill 493 – Healthy and Safe Families Workplace Act: Introduced by Sen. Jeremy Nordquist (Omaha), LB 493 would allow employees to accrue a minimum of one hour of paid sick and safe time (provided to employees who are victims of domestic violence) for every 30 hours worked, up to 40 hours per year.
- Legislative Bill 556 – 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.
- Legislative Bill 494 – Minimum Wage: LB 494, introduced by Sen. Jeremy Nordquist (Omaha), would gradually increase the state minimum wage rate for “tipped” employees from the current rate of $2.13 per hour to $2.35 per hour in 2015 and to $2.64 per hour in 2016.
A Look Ahead
A number of issues of significance to NFIB will be carried over to the 2016 Legislative Session. In addition, Gov. Pete Ricketts has indicated that additional property tax relief and individual and corporate income tax rate reductions will be among his priorities next session.
Past Reports
May 22 Report–Property Tax Relief Contained in State Budget signed Into Law
May 15 Report–Legislature Overrides Governor’s Fuel Tax Increase
For the legislative week ending May 8
For the legislative week ending May 1
For the legislative week ending April 24
For the legislative week ending April 17
For the legislative week ending April 10
For the legislative week ending April 3
For the legislative week ending March 27
For the legislative week ending March 20
For the legislative week ending March 13
For the legislative week of March 6
For the legislative week ending February 27
For the legislative week ending February 20
For the legislative week ending February 13
For the legislative week ending February 6
For the legislative week ending January 30
For the legislative week ending January 23
For the legislative week ending January 16
For the legislative week ending January 9
