11 Late-Night Sessions Scheduled for Legislature

Action on four NFIB-backed bills expected in last quarter

State Director Bob Hallstrom reports from Lincoln on the small-business agenda for the legislative week ending March 16

With nearly three-fourths of the 2018 Legislative Session behind us, much work remains to be completed. More than 50 priority bills have yet to receive first-round debate. Two rounds of debate on the budget remain and filibusters are expected on a number of priority bills awaiting Select File consideration.

As the session winds down, lawmakers will be burning the midnight oil. The speaker of the Legislature has released a schedule of potential late-night sessions in which floor debate will run until at least 9 p.m., or as late as 11:59 p.m. Late nights are scheduled for the following dates:

Tuesday, March 20
Wednesday, March 21
Thursday, March 22
Monday, March 26
Tuesday, March 27
Wednesday, March 28
Tuesday, April 3
Wednesday, April 4
Thursday, April 5
Monday, April 9
Tuesday, April 10.

State Budget

The Legislature has given first-round approval to a package of budget bills. The state’s $8.8 biennial budget is contained within:

Legislative Bill 944 (mainline budget bill)
Legislative Bill 945 (funds transfers)
Legislative ill 946 (state’s cash reserve).

The revised budget limits spending increases to a half-percent for the remainder of this fiscal year and next.

While Gov. Pete Ricketts had proposed across-the-board budget cuts for state agencies of 2 percent this year and 4 percent next year, the Appropriations Committee adopted 2 percent cuts for next year. Reductions for the University of Nebraska, state and community colleges are limited to 1 percent in fiscal year 2018-19.

After all of the budget adjustments, the state’s cash reserve fund will fall to approximately $296 million.

Small Business Bills of Interest

The Legislature has taken action on each of the following bills, both of which are supported by NFIB:

Legislative Bill 1090 – Income Taxation: The Legislature advanced LB 1090 to Final Reading, March 15. Introduced by Sen. Jim Smith (Papillion) and designated as a priority bill by the Revenue Committee, LB 1090 would make adjustments to state tax laws in order to neutralize effects resulting from federal tax reform. The measure would:

retain the personal exemption credit against Nebraska income taxes
increase the Nebraska standard deduction
continue indexing the standard deduction, personal exemption, and tax brackets based on the Consumer Price Index.

It is estimated that an additional $227 million will flow into the state’s coffers as a result of federal tax reform. The cash windfall results from elimination of personal and dependency exemptions for federal tax purposes, along with other changes in the federal tax code to which Nebraska’s tax system is connected. LB 1090 will allow Nebraska taxpayers to retain these funds.

Legislative Bill 299 – Legislative Review of Occupational Licensing Laws: The Legislature has given first-round approval to LB 299, which would require the legislature to regularly review Nebraska’s occupational licensing laws. Introduced and designated as a priority bill by Sen. Laura Ebke (Crete), LB 299, as amended, would require legislative committee staff to evaluate the effects of proposed legislation on occupational licensing, compare it with policies enacted in other states and issue a report on the legislation to the relevant committee.

Under the bill as amended, each standing committee would be required to review and analyze approximately 20 percent of the occupational regulations under the committee’s jurisdiction each year, with the committee required to complete the review process for all regulations under their jurisdiction every five years.

The committees would also be required to analyze whether the regulations meet the least-restrictive standards contained within LB 299 and to submit an annual report to the Clerk of the Legislature that includes the committee’s recommendations on whether the occupational regulation should be terminated or modified. The legislation would also accelerate the process by which those with criminal histories could determine whether their conviction disqualifies them from obtaining an occupational license.

Workers’ Compensation

The following workers’ compensation bills, supported by NFIB, and designated as committee priority bills, are waiting to be placed on the legislative agenda for first-round debate.

Legislative Bill 953 – Workers’ Compensation – Approval of Lump Sum Settlements: Introduced by Sen. Joni Albrecht (Thurston), LB 953 would address issues relating to the approval of lump-sum settlements by the Workers’ Compensation Court. The bill would establish a conclusive presumption that the lump-sum settlement is made in conformity with the compensation schedule and for the best interests of the employee or his or her dependents under all of the circumstances, if the employee’s attorney affirms these facts in the application for an order approving the settlement.

The conclusive presumption would apply to cases in which (a) the employee is eligible for Medicare, is a Medicare beneficiary or has a reasonable expectation of becoming eligible for Medicare within 30 months of executing the settlement, or (b) medical, surgical, or hospital services provided to the employee are not paid by the employer, or any person other than Medicaid, who has made any payment to the supplier of medical, surgical, or hospital services provided to the employee, is not reimbursed by the employer.

Legislative Bill 1015 – Workers’ Compensation – Confidentiality of WC First Injury Reports: The Government, Military and Veterans Affairs Committee has designated LB 1015 as a committee priority bill. Introduced by Sen. Tom Briese (Albion), LB 1015 would prohibit access to first reports of injury which reveal the identity of the employee who is the subject of the report.