04/11/2008
Session enters home stretch
As lawmakers adjourned for the four-day weekend recess, only three days remained in the 2008 legislative session. Tuesday, April 15, will be the final day on which bills may advance from Select File and still receive final consideration this session. Among the major issues still pending are Legislative Bill 895 (the so-called Super Advantage Act, calling for higher incentives for businesses that create high-paying jobs), LB 846 (the roads funding formula) and LB 1116 (State Fair relocation).
Corporate income tax relief adopted
Gov. Dave Heineman has signed LB 888, a measure reducing corporate income taxes.
LB 888, introduced by Sen. Carroll Burling (Kenesaw), and designated as a priority bill by Sen. Scott Lautenbaugh (Omaha), increases from $50,000 to $100,000, the income threshold for the states highest corporate income tax bracket.
LB 888, which was supported by NFIB, marks the first change in the corporate income tax threshold since 1975. Nebraska had the second-highest nominal rate among surrounding states with a corporate income tax.
The legislation takes effect with the 2008 tax year. During the LB 888 bill signing ceremony, Gov. Heineman thanked NFIB and other business organizations for their support of the bill throughout the legislative process.
Workers' compensation bill fails to advance
In floor action Thursday, lawmakers failed to garner the 25 votes necessary to advance LB 1082 to Select File. The failure of the bill to advance should signal an end to this measure for the year, although efforts could still be made next Tuesday to amend the provisions of LB 1082 into another bill on Select File or Final Reading.
LB 1082, opposed by NFIB, was a measure introduced by Sen. Abbie Cornett (Bellevue), and designated as a priority bill by the Business and Labor Committee. As drafted, LB 1082 would have allowed recovery of workers' compensation benefits for mental injuries and mental illness unaccompanied by physical injury for employees who were the victim of or witness to a violent criminal act and for employees who are "first responders."
During the past week, it was one step forward and two steps back for LB 1082 as lawmakers gave first round approval to the measure on Monday, April 7. During General File debate, a number of senators expressed concerns regarding the costs associated with LB 1082 and its effect on workers' compensation premiums for employers, suggesting that the measure would also lead to significant increases in litigation expenses. Notwithstanding these concerns, lawmakers adopted an amendment limiting the expanded coverage for mental-mental claims to employees who are "first responders."
When the bill came up for Select File debate on Thursday, the body moved, without debate, to a vote on the measure. LB 1082 fell short of the 25 votes required to advance to Final Reading on the following vote of 22-18:
- Yes (22): Sens. Ashford, Avery, Cornett, Dierks, Dubas, Flood, Friend, Howard, Janssen, Karpisek, Kopplin, Kruse, Lathrop, McGill, Nantkes, Pirsch, Preister, Rogert, Schimek, Synowiecki, Wallman, White
- No (18): Sens. Adams, Burling, Carlson, Christensen, Engel, Erdman, Fischer, Fulton, Gay, Hansen, Harms, Johnson, Langemeier, Louden, McDonald, Nelson, Stuthman, Wightman. A "NO" vote was in accord with the NFIB position on this issue.
- Present and not voting (five): Sens. Aguilar, Chambers, Pahls, Pankonin, Raikes
- Excused and not voting (four): Sens. Heidemann, Hudkins, Lautenbaugh, Pedersen
Job training funds
A bill supported by NFIB that would make revisions to existing law governing the Job Training Cash Fund in the Department of Economic Development has advanced to Final Reading. Under LB 956, introduced by Sen. DiAnna Schimek (Lincoln), Economic Development would be required to create a sub-account within the Job Training Fund earmarked for companies employing 25 or fewer employees, as well as for businesses in rural parts of the state.
Regulatory fairness forum reminder
Last week, we gave notice of the Regulatory Fairness Forum, which will be held in Omaha on Tuesday, April 15. While small business owners have been invited to testify on their experiences regarding federal regulatory compliance and enforcement, you need not testify to attend. SBA National Ombudsman Nicholas Owens will be in Omaha on the April 15 to visit with small business owners. Please consider this opportunity to voice your concerns regarding federal regulations and the enforcement thereof to the SBA representatives.
Registration begins at 8:30 a.m., with the formal hearing scheduled for 9-11 a.m. Small business owners interested in testifying regarding federal regulatory actions taken against them may register in advance by calling 402-221-7212 at the Nebraska District Office, or send an email to Barbara.Foster@SBA.gov.
For more information, visit the Office of the National Ombudsman's Web site or call Jose Mendez at 202-205-6178.
