NFIB-Supported Amendment Adopted in Fair Chance Hiring Act

Fall in state revenues expected to deepen

State Director Bob Hallstrom reports from Lincoln on the legislative week ending February 22

With the Nebraska Economic Advisory Forecasting Board scheduled to meet next week, the revenue forecast upon which the 2019-2020 state biennium budget is to be based, will be established. Based on revenue receipts from the past few months, the current estimated budget shortfall of $95 million is expected to rise. The Appropriations Committee will submit its preliminary budget to the full legislature on March 4.

Floor Action

The Legislature took action during the past week on the following bills of interest to NFIB:

Legislative Bill 254 – Fair Chance Hiring Act/Ban the Box
Legislation introduced by Sen. John McCollister (Omaha) was amended and advanced to Select File during the past week. As originally introduced, LB 254 would have prohibited private employers (with 15 or more employees) 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.

Prior to advancing the bill, an amendment supported by NFIB and promoted by Sen. Ben Hansen (Blair), was adopted by the Legislature. Under the amendment, employers may ask applicants for employment to disclose, orally or in writing, information concerning the applicant’s criminal record or history, including any inquiry on any employment application, and must afford the applicant an opportunity to explain the information and the circumstances regarding any convictions or other criminal history, including the applicant’s rehabilitation.
(NFIB Position – Watch)

Legislative Bill 361 – Nebraska Wage Payment and Collection Act/Wage and Hour Act
The Legislature also gave first-round approval to Legislative Bill 361 introduced by Senator Matt Hansen (Lincoln), which would prohibit an employer from retaliating or discriminating against an employee for employment because the employee (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 – Watch)

Workers’ Compensation Bills Set for Hearings

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

Legislative Bill 408 – Workers’ Compensation – Death Benefits
Sen. Dan Quick (Grand Island) is sponsoring Legislative Bill 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 418 – Workers’ Compensation – Debt Collection
Under Legislative Bill 418, introduced by Sen. Michaela Cavanaugh (Omaha), collection agencies would be required to cease attempts to collect a debt if a case is pending in the Nebraska Workers’ Compensation Court and the debt is alleged to be subject to Section 48–120 (medical, surgical and hospital services). (NFIB Position – Watch)

Legislative Bill 448 – Workers’ Compensation – Burial Benefits
Sen. Mike McDonnell (Omaha) has introduced Legislative Bill 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 487 – Workers’ Compensation – Evidenced-Based Drug Formulary
Sen. Andrew La Grone (Gretna) has introduced legislation that would establish an evidence-based drug formulary consisting of Schedule II, III, IV and V prescription drugs in connection with workers’ compensation claims with a date of injury on or after January 1, 2020. Over-prescribing of opioids is an epidemic which brings about delays in the ability of employees to return to work as a result of addiction and dependencies resulting from over-utilization of pain killers. (NFIB Position – Support)

Legislative Bill 526 – Workers’ Compensation – Temporary Disability
Introduced by Senator 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) 30 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 on the following bills of interest which were heard by the Revenue Committee February 20.

Legislative Bill 615 – Income and Property Tax Relief
Sen. Mike Hilgers (Lincoln) has introduced legislation Legislative Bill 615, which is designed to provide guaranteed, fiscally responsible income tax and property tax relief on an annual basis. The bill would establish a minimum balance of $500 million for the state’s Cash Reserve Fund at the end of each fiscal year. Upon establishing and maintaining a strong cash reserve position, the bill would authorize 1-to-1 tax relief for income taxpayers and property taxpayers. Under the bill, income tax relief would result from rate reductions with property tax relief delivered through additional funding of the Property Tax Credit Cash Fund. The bill establishes a goal of gradually reducing the top rates for both Nebraska’s individual income tax and corporate income tax to 5.99 percent. (NFIB Position – Support)

Legislative Bill 661 – Income Tax Increases for Property Tax Relief
LB 661, introduced by Sen. Curt Friesen (Henderson), would eliminate the existing inflation adjustment for income tax brackets, change provisions relating to personal exemptions and provide for additional income tax liability. Net revenues derived from the income tax increases would be credited to the Property Tax Credit Cash Fund for property tax relief. (NFIB Position – Oppose)

Legislative Bill 664 – Federal Tax Conformity – Qualified Production Income
LB 644, also introduced by Senator Friesen, would amend Nebraska’s tax statutes to place manufacturing and other production businesses in the same relative tax position as they were prior to enactment of the federal Tax Cuts in Jobs Act by restoring Nebraska’s favorable tax treatment of income derived from manufacturing, mining, construction and certain other production businesses (deduction equal to 9 percent of qualified production income subject to certain limitations) with the deduction to be an “above-the-line” deduction included in computing adjusted gross income. (NFIB Position – Support)

Upcoming Hearings

State Director Bob Hallstrom will give testimony on the following bills to be heard next week before the Revenue Committee.

Wednesday, February 27

Legislative Bill 303 – Property Tax Credit Act
Sen. Brett Lindstrom (Omaha) is the sponsor of 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)

Friday, 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 haircare, nail services, spa services, and tattoo services; limousine, taxi, ridesharing and other transportation services; lawncare, 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 lawncare, gardening, and landscaping services. The legislation would also impose a tax on soft drinks and candy. (NFIB Position – Oppose)

Legislative Bill 614 – Tax Shifts for Property Tax Relief
Sen. Sue Crawford (Bellevue) is the sponsor of LB 614, which would increase the alcohol tax and cigarette tax; impose sales and use taxes on candy, soft drinks and bottled water; increase the state’s earned income tax credit; eliminate exemptions provided under the Personal Property Tax Relief Act; change provisions relating to certain extraordinary dividends and capital gains, certain S Corporation and limited liability company income and itemized deductions; provide for a property tax relief allowance and increase allocated income tax funds under the school aid formula. (NFIB Position – Oppose)