Veto cmd+Z (Override)

The 2022/2023 mid biennium budget is adopted. Have you heard? Spending was unprecedented because ARPA funds and significant tax revenues drove the frenzy. Senators chose to override several vetoes by Governor Ricketts, but no harm, no foul. Said Speaker Hilgers, “Lawmakers were able to fund the state’s priorities, provide the largest tax cut in state history and leave $1.3 billion in the cash reserve.”

Four days remain on the legislative calendar, yet this collection of senators will likely not go gentle into that good sine die. Needless filibusters and partisan debates have denied consideration of too many bills still on the legislative calendar. So this week, Speaker Hilgers intends to drag as many bills as he can across the finish line and onto the Governor’s desk by the end of day Wednesday.

Monday’s schedule is filled with bills on Select File. Procedurally, it’s the last day that bills on Select File can move to the Governor’s desk with the assurance that the Legislature has an opportunity to override his vetos on April 20 (Day 60). Look for the Speaker to keep the kids in the Legislative Chamber late into that good night.

Tuesday is Final Reading Day! Ninety-two bills were earlier parked on Final Reading, waiting for senators to advance them to the Governor. He then has five days to give a thumbs up or down vote on each bill. Each bill he chooses to veto returns to the Legislature for their shot at a veto override. Barring delays, this pile of Final Reading bills will take 8 hours.

Wednesday appears to be another round of Final Reading for Select File bills that advanced on Monday and any unfinished bills or resolutions from Tuesday.

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Presented to the Governor

LB873 (Friesen Priority) A multi-level tax cut bill.
- Estimated $886 million in property tax relief for property taxes paid to K-12 schools, property, and community colleges.
- Corporate income tax rate reduction from 7.1 percent to 5.84 percent over five years.
- Individual income tax rate reduction from 6.84 percent to 5.84 percent over five years.
- Eliminates income tax on Social Security benefits over four years.
LB1014 (Speaker Hilgers at the Request of the Governor) Appropriations Committee Priority. The Governor’s recommendation to appropriate federal funds in the American Rescue Plan Act of 2021 (“ARPA”). The State and Local Fiscal Recovery Program (“SLFRP”) allocated funding to state and local governmental entities. The State of Nebraska, 93 counties, four metro cities, and 525 localities identified as “non-entitlement units of government” were eligible for a total award of $1.7 billion. The State of Nebraska received $520 million. An additional $520 million is expected by May 2022.
- Support Public Health Response for COVID-19 mitigation efforts.
- Negative Economic Impacts on workers, families, small businesses and non-profits, etc.
- Replace Revenue Loss for government services in general fund revenue reductions.
- Premium Pay for Essential Workers – Support for workers who bear the most significant health risks.
- Water, Sewer, and Broadband Infrastructure for clean drinking water, wastewater, and stormwater infrastructure; provide new and expanded broadband access.

Final Reading

LB91 (Brandt) Monitor – Expands the date after germination or viability testing that native flower and grass seeds may continue to be sold or offered for sale without retesting and allowing seed viability testing instead of germination rate testing for certain seeds. Defines native and nonnative plant species, seed germination, storage, testing, viability, and sales.
LB805 (Hughes) (Agriculture Committee Priority) Changes provisions relating to the Noxious Weed Control Act and management of black-tailed prairie dogs.
LB925 (Gragert Priority) Resilient Soils and Water Quality Act to accelerate the use of best management practices for healthy soil. Appropriates $250,000 per year for five years.
LB1023 (Hilgers) McDonnell Priority STARWARS Lower Platte River Lake Development: construction of a combined reservoir within the floodplain that will create a 4,000-acre lake to provide new development, recreation, and flood control, and water quality. Lewis and Clark State Recreation Area: marina projects to expand water access and recreational opportunities. Lake McConaughy: marina projects to expand water access and recreation. Niobrara State Park: A new event center and lodge.

Select File

LB939 (Linehan) Amended into LB825 (Revenue Committee Priority) – Income tax cuts:
- Corporate income tax: 5.58% under $100,000. Above $100,000: 7.5% in 2022, 7.0% in 2023, 6.5% in 2024, 6.14% in 2025, 5.84% in 2026.
- Personal income tax: Above the top rate of $58,000 (married filing jointly): 6.84% in 2022, 6.34 in 2023, 6.14 in 2024, and 5.84% in 2025.
LB1014 (Speaker Hilgers at the Request of the Governor) Appropriations Committee Priority. The Governor’s recommendation to appropriate federal funds in the American Rescue Plan Act of 2021 (“ARPA”). The State and Local Fiscal Recovery Program (“SLFRP”) allocated funding to state and local governmental entities. The State of Nebraska, 93 counties, four metro cities, and 525 localities identified as “non-entitlement units of government” were eligible for a total award of $1.7 billion. The State of Nebraska has received $520 million. An additional $520 million is expected by May 2022.
- Support Public Health Response for COVID-19 mitigation efforts.
- Negative Economic Impacts on workers, families, small businesses and non-profits, etc.
- Replace Revenue Loss for government services in general fund revenue reductions.
- Premium Pay for Essential Workers – Support for workers who bear the most significant health risks.
- Water, Sewer, and Broadband Infrastructure for clean drinking water, wastewater, and stormwater infrastructure; provide new and expanded broadband access.

General File

LB290 (M. Cavanaugh) Oppose – Adopts the Paid Family & Medical Leave Insurance Act.
LB543 (Brandt Priority) Support – Agricultural Equipment Right-To-Repair-Act. See AM1800.
LB730 (Lindstrom) Revenue Committee Priority See AM2087 An employer who employs a qualified apprentice or trainee for at least seven months of a taxable year is allowed a $1,000 nonrefundable credit against the income tax paid.
LB806 (Bostelman) Provisions relating to land drainage by a landowner. See AM1979 “landowner shall not drain such landowner’s land using any pump or powered system if such drainage system would cause injury or harm to any other person.”
LB986 (Briese Priority) Failed to Advance Limits the property tax request for a school district by its property tax request authority. The limit does not apply to the tax request required to retire bonded indebtedness.
LR264CA (Erdman Priority) Constitutional amendment prohibits the imposition of taxes other than retail consumption taxes and excise taxes.

Held In Committee

LB52 (Lathrop) Monitor – Immunity for injury or death from COVID-19 exposure.
LB79 (Briese) Monitor – Changes the minimum amount of relief provided in the Property Tax Credit Act.
LB329 (Wayne) Monitor – The minimum average wholesale gasoline price would be $2.44.
- AM411 Employer tax incentives for hiring felons, including those on parole or probation.
LB422 (Briese) Monitor – Reduces state sales tax from 5.5 cents to 5 cents and eliminates several sales tax exemptions.
LB483 (J Cavanaugh) Monitor – Creates a $250,000 climate change study and plan.
LB622 (Friesen) Monitor – Limits growth in property valuations and provides adjustments to assessed values.
LB694 (Blood) Provides a statute of limitations for exposure to hazardous or toxic chemicals, prescription drugs, or medical devices.
LB761 (Dorn) The Precision Agriculture Infrastructure Grant Act provides $10 million for agricultural producers to lead the nation in precision ag connectivity, sustainability, traceability, and autonomy. In addition, to provide high-speed internet service to high-cost and remote areas.
LB941 (Slama) Sales and use tax exemption for net wrap.
LB987 (Briese) Prohibits school districts from raising property taxes beyond 3% growth.
LB1030 (Friesen) Exempts all tangible personal property from property tax.