Nebraska legislators start preparations for reduced state revenues
State Director Bob Hallstrom reports from Lincoln on the legislative week ending February 8
While most bills continue to move quickly through General File consideration, the past week saw the first extended floor debate on a few bills, such as LB 66, which would require cities to include an early childhood element in comprehensive plans. The bill failed to advance, falling short of the votes needed to move to Select File.
Appropriations Committee Chairman John Stinner (Gering) has painted a bleak picture for bills with a “fiscal impact,” suggesting that there may be no funding for such bills in light of revenue receipts falling short of the projections upon which the current budget is based. Speaker Jim Scheer (Norfolk) has also suggested that senators considering bills to “prioritize,” should consider the “fiscal impact” of such bills, and that all such bills will be held on Final Reading until after the state budget has received final approval.
Floor Action
Advancing to Select File during the past week on a vote of 29-11 was Legislative Bill 306. 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.
Prior to advancing the bill, the Legislature adopted an amendment to address concerns raised by NFIB and other business representatives during the committee hearing 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.
Committee Activity
State Director Bob Hallstrom presented testimony in opposition to the following bills which were heard before the Business & Labor Committee February 4.
Legislative Bill 254 – Fair Chance Hiring Act/Ban the Box
Introduced by Sen. John McCollister (Omaha), LB 254 would prohibit public and private employers and employment agencies from asking an applicant to disclose, orally or in writing, information concerning the applicant’s criminal record or history, including any inquiries on any employment application, until the employer or employment agency has determined the applicant meets the minimum employment qualifications. The bill would apply to employers with 15 or more employees. (NFIB Position – Oppose)
Legislative Bill 305 – Healthy and Safe Families and Workplace Act
Introduced by Sen. Sue Crawford (Bellevue), LB 305 would allow employees to accrue a minimum of one hour of paid sick time for every 30 hours worked, with a maximum of 40 hours of paid sick time accrued in a calendar year. Under the measure, employees would be entitled to use accrued paid sick time beginning on the 60th calendar day following commencement of employment. Paid sick leave would be authorized for: (a) an employee’s mental or physical illness, injury, or health condition; (b) an employee’s need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; (c) an employee’s need for preventative medical care; (d) care of a family member with a mental or physical illness, injury, or health condition; (e) care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; (f) care of a family member who needs preventative medical care; or (g) absence necessary due to domestic abuse, sexual assault, or stalking. (NFIB Position – Oppose)
Legislative Bill 311 – Paid Family Medical Leave Insurance Act
Introduced by Senator Crawford, LB 311, beginning July 1, 2021, would establish a statewide paid family medical leave insurance program similar to Nebraska’s unemployment insurance system and managed by the state Department of Labor. Employers would be required to contribute up to 1 percent of gross wages paid to covered employees to pay for the family medical leave benefit, to pay all other benefits to which an employee would have been entitled in the absence of the leave, as well as all other benefits offered to the employee (vacation, sick leave, etc.) and to allow the employee to return to his or her position after exercising the right to family medical leave. (NFIB Position – Oppose)
Upcoming Hearings
Business and Labor Committee (February 11, 2019)
Legislative Bill 383 – Minimum Wage
Sen. Dan Quick (Grand Island) has introduced LB 383, which would, beginning on January 31, 2020, and each year thereafter, provide for adjustment of the minimum wage by an amount determined by the state treasurer at the end of the preceding calendar year to reflect the average annual percentage change in the Consumer Price Index the most recent five–year period for which data is available. The measure would limit the annual increase to no more than 3½ percent. (NFIB Position – Oppose)
Legislative Bill 400 – Minimum Wage for Tipped Employees
Introduced by Sen. Megan Hunt (Omaha), LB 400 would increase the state minimum wage for tipped employees from the current rate of $2.13 per hour to $3.60 on August 1, 2019, and to $4.50 on January 1, 2020. The bill would also require the summary of the Wage and Hour Act posted by employers to include a summary of the minimum wage amounts in effect under the Act. (NFIB Position – Oppose)
Legislative Bill 362 – Nebraska Wage Payment and Collection Act
Introduced by Sen. Matt Hansen (Lincoln), LB 362 would require an employer, under the Nebraska Wage Payment and Collection Act, in cases in which a citation is issued, to pay employees that were the subject of the violation underlying such citation any unpaid wages due to such employees and found to be due and owing by the commissioner. (NFIB Position – Oppose)
Legislative Bill 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 for the purpose of determining whether the employer is compensating any employee in a manner that provides equal pay for equal work. 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)
Legislative Bill 361 – Nebraska Wage Payment and Collection Act/Wage and Hour Act
Introduced by Senator Hansen LB 361 would prohibit an employer from retaliating or discriminating against an employee or applicant for employment because the employee or applicant (a) files a compliant under either the Wage and Hour Act or the Nebraska Wage Payment and Collection Act or (b) testifies, assists, or participates in an investigation, proceeding, or action concerning a violation of either Act. The legislation would authorize the court to grant such legal or equitable relief as it deems appropriate to effectuate the purposes of the Wage and Hour Act, including temporary or permanent injunctive relief and general and special damages. (NFIB Position – Oppose)
Revenue Committee (February 13, 2019)
Legislative Bill 182 – School District Local Option Income Surtax Act
Sen. Kate Bolz (Lincoln) has introduced LB 182, which would authorize school districts to adopt a local option income surtax for property tax reduction, or building construction, remodeling and site acquisition. (Local option income surtax would be equal to the individual’s state income tax liability, less any amount of nonrefundable credits allowed to such individual under state law, multiplied by a rate determined by the school board, not to exceed 20 percent.) The legislation would require approval of a local option income surtax by a majority of the registered voters in the school district and would limit the duration of the local option income surtax to a period not to exceed five years. (NFIB Position – Oppose)
Revenue Committee (February 14, 2019)
Legislative Bill 314 – Remote Sellers Sales Tax Collection Act
A comprehensive tax reform package (LB 314) has been introduced by Sen. Tom Briese (Albion). The legislation would impose new and expanded taxes to provide approximately $470 million in property tax relief and significantly increase funding for state aid to schools. Various state taxes would be increased by an estimated $780 million.
The measure would a) increase the state sales tax from 5.5 percent to 6 percent; b) eliminate the tangible personal property tax exemption; c) eliminate itemized deductions; and d) increase alcohol and cigarette taxes.
In addition, the bill would also increase income tax collections by:
- Ending Nebraska’s S Corporation/LLC exclusion on out-of-state earnings
- Repealing the state’s special capital gains and extraordinary dividends exclusion
- Reinstating the alternative tax on high-income earners
- Adding a 7.84 percent surcharge on income over $250,000 for individuals and $500,000 for couples.
The following series of sales tax exemptions would be repealed:
- Candy, soft drinks, and bottled water
- Tangible personal property repair (motor vehicles)
- Pet-related services
- Real property remodeling, painting and repair and interior design for residential housing
- Personal care services including hair care, massage, tanning, nail, spa and tattoo services
- Storage and moving services
- Parking fees
- Clothing cleaning and repair
- Travel agency services
- Membership and admissions to zoos and aquariums
- Dating and escort services
- Taxi, limousine, and other transportation services
- Lawn care, landscaping and gardening
- Tele-floral
- Tour operators
- Historic automobile museums
- Swimming pool cleaning and maintenance
- Music, dance, golf and other recreational services
- Ride-sharing services (Uber and Lyft)
- Airbnb type services
The measure will also terminate the New Markets Job Growth Investment Act and earmark new sales tax revenues from online retail sales to property tax relief. (NFIB Position – Oppose)
Legislative Bill 497 – State Aid to Schools – Tax Shifts to Fund Property Tax Relief
Introduced by Sen. Curt Friesen (Henderson), LB 497 would guarantee every public school to receive state support equal to 50 percent of its basic education funding needs; increase cigarette and alcohol taxes; eliminate certain sales tax exemptions; extend sales tax to certain services; eliminate the personal property tax exemption; and transfer $150 million from the General Fund to the state’s Cash Reserve Fund. (NFIB Position – Oppose)
Previous State Capitol Reports
February 1—Hearings on Paid Sick Time, Family Medical Leave Coming Up
January 25—Bill Introduction Deadline Passes; Committee Hearings Commence
January 18—Will Bill Introductions Set a Record?
January 15—Comment on Today’s State-of-the-State Address
January 11—Nebraska Legislature Convenes; Committee Chairmen Elected
