NFIB Members Called to Action on Legislative Bill 487

Economic Forecasting Board predicts $110 million less in state revenues

State Director Bob Hallstrom reports from Lincoln on the legislative week ending March 1

On the heels of the Appropriations Committee submitting its preliminary budget on Wednesday, the Nebraska Economic Advisory Forecasting Board predicted on Thursday that the state will collect $110 million less than previously expected between now and June 2021. The Forecasting Board prediction will add an extra $39 million to the existing budget shortfall of $95 million.

NFIB Members Urged to Take Action

Legislative Bill 487 comes up for hearing Monday, March 4, and NFIB is putting out the call to its members to phone or email senators on the Business and Labor Committee and urge their support for the measure, which would put a serious dent in the opioid problem in Nebraska by setting up a drug formulary for workers’ compensation claims.

A special story on the NFIB Nebraska webpage has been posted with further information and the contact information for senators on the committee.

Other Workers’ Compensation Bills

The Business and Labor Committee will also hold March 4 hearings on the following bills of interest to NFIB:

Legislative Bill 408 – Workers’ Compensation – Death Benefits
Sen. Dan Quick (Grand Island) is sponsoring legislation (LB 408) that would provide, upon the death of an employee, if there is no spouse, child, or other dependent entitled to benefits, that $25,000 is to be paid to the personal representative of the estate of the decedent. (NFIB Position – Opposed)

Legislative Bill 448 – Workers’ Compensation – Burial Benefits
Sen. Mike McDonnell (Omaha) has introduced legislation (LB 448) that would revise the manner in which an employer’s responsibility for burial expenses is determined by setting the burial expense at 14 times the state’s average weekly wage to be automatically adjusted annually. (NFIB Position – Opposed)

Legislative Bill 526 – Workers’ Compensation – Temporary Disability
Introduced by Sen. McDonnell, LB 526 would provide that temporary disability shall continue until the later of (a) any permanent disability, as measured by permanent impairment for a scheduled member injury, has been determined or, in the event of a claim payable under loss of earning capacity, until a loss of earning capacity evaluation has been issued or (b) thirty days after the employee has been given notice of termination of temporary disability benefits.

Upon termination of temporary disability benefits, the employer would be required to provide copies of all evidence relied upon in making the determination to cease benefit payments and if evidence from outside of the treating physician has been relied upon, the employee shall be entitled to seek a medical finding by an independent medical examiner to be paid for by the employer, with such independent medical examiner to be chosen by the employee. (NFIB Position – Opposed)

Committee Activity

NFIB submitted testimony in support of the following bills of interest which were heard during the past week:

Wednesday, February 27 – Revenue Committee

Legislative Bill 303 – Property Tax Credit Act:
Sen. Brett Lindstrom (Omaha) is the sponsor of legislation (LB 303) that would establish, for tax year 2019 and each tax year thereafter, the amount of relief granted under the Property Tax Credit Act in an amount not less than $275 million. (NFIB Position – Support)

Legislative Resolution 8CA – Cap on Annual Property Tax Increases
Sen. Lou Ann Linehan (Elkhorn) has introduced a constitutional amendment (LR8CA) to limit the growth of local property taxes. Under the measure, the ability of schools, counties, cities, and other local governments to increase property taxes would be limited. Property tax increases could not be more than 3 percent greater than the amount raised the prior fiscal year. (NFIB Position – Support)

NFIB also joined forces with a coalition of business interests in opposing the following bills that were heard by the Revenue Committee on March 1:

Legislative Bill 507 – Tax Shifts for Property Tax Relief
LB 507, introduced by Sen. Tom Briese (Albion), would expand the sales tax on services to include, among many other services, the following: labor for repair or maintenance services performed on motor vehicles; pet-related services; cleaning of tangible personal property; storage and moving services; investment advice; personal care services including hair care, nail services, spa services, and tattoo services; limousine, taxi, ridesharing and other transportation services; lawn care, gardening, and landscaping services; parking services; legal services other than services performed for a for-profit business enterprise; accounting and tax preparation services, other than for a for-profit business enterprise; labor of a contractor for any major addition, remodeling, restoration, repair, or renovation of owner-occupied residential housing; and interior design services.

The bill would also eliminate several sales tax exemptions and impose a tax on soft drinks, candy, and bottled water. Net revenues resulting from the taxes imposed by the bill would be credited to the Property Tax Credit Cash Fund. (NFIB Position – Oppose)

Legislative Bill 508 – Tax Shifts for Property Tax Relief
LB 508, also introduced by Senator Briese, would impose the sales tax on certain services, eliminate sales tax exemptions and use the increased revenue for property tax relief. Among the services for which sales tax would be imposed, include the following: investment advice; hair care services; maintenance, painting, and repair services for single-family housing; limousine, taxi, and other transportation services; plumbing services; and lawn care, gardening, and landscaping services. The legislation would also impose a tax on soft drinks and candy. (NFIB Position – Oppose)

Wage Payment Bill Advances

The Business and Labor Committee has advanced Legislative Bill 217 to General File for consideration by the full Legislature.

LB 217 – Nebraska Wage Payment and Collection Act
Introduced by Sen. Patty Pansing Brooks (Lincoln), LB 217 would prohibit an employer from discharging or in any other manner retaliating against any employee because the employee inquired about, discussed, or disclosed comparative compensation information. The bill would not apply to instances in which an employee who has authorized access to the wage information of other employees as a part of such employee’s job functions discloses the wages of such other employees to an individual who does not otherwise have authorized access to the information, unless such disclosure is in response to a charge or complaint or in furtherance of an investigation, proceeding, hearing, or other action, including an investigation conducted by the employer. (NFIB Position – Oppose)

Floor Action

In somewhat unexpected fashion, Legislative Bill 306 failed to advance on Final Reading on a vote of 20-15 (25 votes required for passage). Introduced by Sen. Sue Crawford (Bellevue), the bill would treat an individual leaving his or her employment to care for a family member with a serious health condition as having good cause for voluntarily leaving employment under the Unemployment Insurance Act.

Earlier in the session, the Legislature adopted an amendment to address concerns raised by NFIB and other business representatives to ensure that an employee makes “all reasonable efforts (e.g., taking a leave of absence or considering an alternative work schedule) to preserve employment” prior to voluntarily leaving employment to care for a family member with a serious health condition.

It is expected that a motion to reconsider the vote will be filed to allow another Final Reading vote to be taken on the measure.

Check out the Unicameral’s website for senator contact information.