Committee hears six hours of testimony on property tax relief
State Director Bob Hallstrom reports from Lincoln on the legislative week ending February 15
With almost one-third of the 2019 legislative session completed, lawmakers continue to process legislative bills with remarkable speed. Thus far, just over 100 bills have been advanced from Committee with 14 bills awaiting action on Final Reading, 23 bills resting on Select File, another 30 bills having received first-round approval and 13 bills on General File.
The initial selection of priority bills has commenced with bills relating to medical marijuana (Legislative Bill 110) and economic development incentives (Legislative Bill 720), among the early designations. The deadline for designating individual senator and committee priority bills is March 19, with requests for Speaker priority bills to be made by March 14. Committee hearings will be completed on March 28, with full-day floor debate to commence on April 2.
Ban-the-Box Bill Advances
The Business and Labor Committee on a vote of 5-0 has advanced the following legislation, which is opposed by NFIB, to General File.
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.
Floor Action
Advancing to Select File during the past week on a vote of 42-0 was Legislative Bill 139. Introduced by Sen. Mark Kolterman (Seward), the bill would expand the existing Contractor Registration Act to require the database of contractors registered under the Act to include the following information with respect to each registered contractor: (a) whether the contractor carries workers’ compensation insurance in accordance with the Workers’ Compensation Act; (b) whether the contractor is self-insured; and (c) whether the contractor is not required to carry and does not carry workers’ compensation insurance.
The bill would create a presumption of no coverage that may be rebutted by an insurer acknowledging coverage for a claim-covered event in cases in which the contractor is not required to carry and does not carry workers’ compensation insurance.
Prior to advancing the bill, the Legislature adopted an amendment to LB 139, clarifying that the “presumption of no coverage” applies solely for the purpose of establishing premiums for workers’ compensation insurance and does not affect liability under the Nebraska Workers’ Compensation Act.
NFIB Committee Activity
NFIB State Director Bob Hallstrom presented testimony in opposition to the following bills which were heard before various committees during the past week.
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 are 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: LB 400, introduced by Sen. Megan Hunt (Omaha), 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: LB 361, introduced by Senator Hansen, 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. LB 361 was advanced to General File by the Business and Labor Committee with an amendment to remove “applicants” from coverage under the bill. (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 – Tax Shifts to Provide Property Tax Relief: The Revenue Committee heard over six hours of testimony on a comprehensive tax reform package (LB 314) introduced by Senator Tom Briese (Albion) that would impose new and expanded taxes to provide approximately $470 million in property tax relief and 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; (e) repeal a number of sales tax exemptions; and (f) extend the sales tax to a series of new services.
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.
While acknowledging the impact of real property taxes on small-business owners, State Director Bob Hallstrom noted that NFIB members desire tax relief, rather than tax shifts, and that controls on local spending are an essential component of any solution to the existing property tax problem. (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 and News Releases
February 11 News Release—Small Business Testifies Against Minimum-Wage Bill
February 8—NFIB Amendment on Unemployment Insurance Bill Adopted
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
[Photo of Sen. Tom Briese testifying before the Revenue Committee, February 14, courtesy of Unicameral Update, the Nebraska Legislature’s official news source since 1977]
