Budget Bill, Tax Relief Await Senators After Easter Recess

Date: April 01, 2018

NFIB-backed workers’ compensation measure advances

State Director Bob Hallstrom reports from Lincoln on the small-business agenda for the legislative week ending March 30

Lawmakers adjourned March 29 for the long, four-day Easter recess. Upon their return next Tuesday, final action on the mainline budget bill awaits and first-round debate on the Gov. Pete Ricketts’ tax relief package will commence. Only eight working days remain in the legislative session, with a slew of contentious priority bills yet to receive first-round debate.

Debate on Tax Relief Plan on Tap

With a filibuster anticipated, at least three hours of General File debate are expected on Governor Ricketts’ tax relief package (Legislative Bill 947) when the Legislature reconvenes April 3.

Introduced by Sen Jim Smith (Papillion), LB 947, as amended, would retain the state’s existing Property Tax Credit Cash Fund ($224 million annually), while establishing a refundable income tax credit to offset property taxes paid by residential and agricultural landowners. The measure would also reduce the top corporate income tax rate from 7.81 percent to 6.84 percent in five annual increments and increase funding for workforce development by $5 million annually.

Under the bill, agricultural landowners would receive a refundable income tax credit starting at 2 percent of property taxes paid and increasing annually until they reached 20 percent of property taxes paid by 2027. The income tax credit for residential landowners would start at 1 percent of property taxes paid, up to a cap of $25 the first year and growing to a maximum of 25 percent, or $500, by 2030.

Provisions contained within the original bill, have been removed, that would have (a) reduced the top individual income tax rate from 6.84 percent to 6.69 percent and (b) repealed the $10,000 personal property tax exemption.

Budget Bill Advanced to Final Reading

After failing to advance the mainline budget bill from Select file on two separate occasions, the Legislature agreed to a compromise regarding reproductive healthcare funding and advanced Legislative Bill 944 to Final Reading on a vote of 44-4. Final passage of the full budget package of bills is expected next April 3.

Workers’ Compensation Electronic Payments Bill Advances

The Legislature has given first-round approval to the following bill which is supported by NFIB:

Legislative Bill 957 – Workers’ Compensation – Electronic Payment of Benefits: Introduced by Sen. John Lowe (Kearney), LB 957 would authorize, upon agreement of an employer or insurer and an employee entitled to compensation under the Workers’ Compensation Act, payments to be made by electronic means (direct deposit, prepaid card, or similar electronic payment system).

Debate on Other Workers’ Compensation Bills Continues

The Legislature continues to process a series of workers’ compensation bills supported by NFIB and designated as committee priority bills. General File debate is expected in the coming week on the following bills:

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: Introduced by Sen. Tom Briese (Albion), LB 1015 would provide confidentiality for first reports of injury that are filed with the Workers’ Compensation Court.

Other Bills of Interest

The Legislature took affirmative action during the past week on the following bills, both of which are supported by NFIB:

Legislative Bill 738 – Income Taxation – Social Security Benefits: The Legislature has given first-round approval to LB 738. Introduced by Sen. Brett Lindstrom (Omaha), LB 738 would utilize an index for inflation for taxation of social security benefits – similar to the system in place for Nebraska’s state income tax brackets.

Legislative Bill 1058 – Faithful Delegate to Federal Article V Convention Act: The Government, Military and Veterans Affairs Committee has advanced LB 1058 to General File on a vote of 6-2. Introduced by Sen. Steve Halloran (Hastings), LB 1058 would allow designated elected officials to represent the state before an Article V convention. The act would ensure that Nebraska’s delegates to any future convention are held accountable and only allowed to discuss and vote on the amendments or amendments authorized by the Nebraska Legislature. All Nebraska delegates would be required to swear (under oath) to abide by the strict limits placed on them at the convention. The bill’s provisions serve to limit the possibility of rogue delegates by including the ability for a delegate to be disqualified and the possibility that a vote by a delegate could be declared to be invalid.

Previous Reports and News Releases

March 23 Report—NFIB Members Urged to Push for Passage of Three Workers’ Comp Bills

March 16 Report—11 Late-Night Sessions Scheduled for Legislature

March 9 Report—Nebraska Legislature Gives First-Round Approval on State Tax Bill

March 2 Report—NFIB Rallying Troops for Support of Workers’ Compensation Bill

February 23 Report—Three NFIB-Backed Workers’ Compensation Bills Advance

February 16 Report—NFIB Working on Data Breach, Credit Reporting Bill

February 9 Report—Senator Seeks to Reverse Legislature’s Call for Constitutional Convention

February 2 Report—Session a Third Complete, Tax Reform Still on Front Burner

January 26 Report—Floor Debate Coming up on Minimum Wage, Ban the Box

January 19 Report—Deadline for Bill Introduction Passes in Lincoln

January 17 Guest Editorial—Nebraska Congressional Delegation Thanked

January 12 Report—NFIB Scores Victory in First Week of Session

January 12 News Release—Comment on Gov. Ricketts’ State-of-the-State Speech

January 5 Report—Nebraska Legislature Opens for 2018 Business

[Tile photo courtesy of Unicameral Update, “The Nebraska Legislature’s official news source since 1977.”]

 

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