Priority Bill Selections Made
The Legislature has completed 35 business days on the legislative calendar, as the 60-day session now enters its second half. Last week was the last full week of committee hearings. All-day floor debate begins Monday, March 1. Much of the remainder of the session will be dedicated to the 101 priority bills selected by senators, committees and the speaker.
This year's list of priority legislation includes several measures related to business and economic development issues, including:
Nebraska Advantage/Super Advantage Update: LB918, prioritized and introduced by Senator Galen Hadley of Kearney, is the session's key economic development bill. LB918 would modernize the Nebraska Advantage Act by allowing sales of software over the Internet and adding data centers to the list of activities eligible for incentives. Also, the bill would amend the Nebraska Super Advantage Act to ensure that "wages paid" includes employee benefits such as health insurance and retirement contributions made by the employer - a change that would likely help communities in their efforts to recruit high-paying jobs.
Workers' Comp. - Mental Injuries: LB780, prioritized by Senator Norm Wallman of Cortland, would make mental injuries unaccompanied by a physical injury eligible for compensation for "first responders." Currently, the Nebraska Workers' Compensation Act indicates that mental injuries are compensable only when tied to a compensable physical injury. Opposes LB780 as it would raise workers' compensation costs for employers and could allow for a similar policy to be applied to the private sector in the future.
Successor Liability: LB763, prioritized by Senator Abbie Cornett of Bellevue, would establish the Successor Asbestos-Related Liability Act. Under current law, the rule of successor liability provides that when a predecessor business merges with another business, the successor can be held liable for the torts of the dissolved predecessor, even if the successor did nothing wrong and the activity of the predecessor that created the liability was terminated before the merger. LB763 would establish award limits for plaintiffs who were allegedly harmed by a predecessor corporation, while allowing the successor to receive credit for settlements or judgments it has paid or committed to pay since the merger. Support LB763.
Small Business Regulation: LB709, prioritized by Senator Robert Giese of South Sioux City, would create a nine-member board to oversee state regulations that might negatively impact small businesses. Regulations that could have an adverse economic impact on small businesses - defined as companies with 500 or fewer full-time employees or gross annual sales of less than $6 million - would be reviewed by the board. State agencies would be required to issue a public notice of any rule that might negatively impact small businesses and solicit public comment from such businesses. LB709 will be monitored but on principle the association opposes it because it creates another layer of governmental intervention .
Contractor Employee Classification Act: LB563, prioritized by the Business and Labor Committee, would define "contractor" and establish criteria to determine whether an individual is an employee or an independent contractor. Under the bill, any person with an interest in compliance with the Act and who is aggrieved by a violation of the Act - including an employee - may bring an action in district court.
Fire Sprinklers Bill Moving Forward
The Norfolk Daily News reports that "New homes built in Norfolk would have to have fire sprinklers under a future code revision being weighed by city officials." This is because in 2009, "the International Residential Code, used by Norfolk and other Nebraska communities, was amended to require newly constructed one- and two-family homes to have an approved sprinkler system starting in 2011." Currently pending in the Nebraska Legislature "is a bill (LB949) to prohibit the mandating of fire sprinklers," according to the story. "Introduced by Sen. Mike Gloor of Grand Island, LB949 would allow the 2009 revisions minus the provision on sprinklers."
"Putting sprinker systems in would reduce fires, but I was concerned the cost would have a chilling effect on home building at a point when we're trying to stimulate it in this country, as opposed to discouraging it,'' Gloor said.
The story notes that home builders were distressed about the added cost of sprinklers, while "others are convinced sprinklers are a plus" and "cost-effective, too."
LB949 is listed as a priority bill.
Housing Fund Considered to Balance Budget
On February 10 the Lincoln Journal Star wrote
this article after covering the Appropriations Committee. According to the article, the Committee has had numerous discussions about using the Affordable Housing Trust Fund to balance the state's fund. Danielle Hill, executive director of the Nebraska Housing Developers Association circulated the article to her members encouraging them to write letters to their hometown papers. As stated in the article, many communities rely on this fund to stablize their areas by making affordable housing available.
Bill To Tax 60 Additional Services Scheduled For Hearing
During the Revenue Committee hearing, Senator Dierks told the Revenue Committee his bill was introduced as a way to reduce property taxes imposed by local government entities. Committee member Senator LeRoy Louden commended Senator Dierks for his efforts, but suggested a better approach would be to first address local spending, which spurs the need for property tax increases.
Ron Sedlacek, Vice President-General Counsel for the State Chamber, testified in opposition to the bill. He informed the committee that the bill would create a third or fourth layer of taxation in some cases. He also noted that LB1066 would hinder Nebraska's economic competitiveness by adding new tax burdens on business-to-business transactions - thereby adding to the cost of doing business and likely leading to "border bleed," where Nebraska consumers would seek less expensive goods and services from nearby states.
To view the bill, go to Neb Legislature LB1066
Our thanks to Nebraska Chamber of Commerce for giving us permission to use their news information.
Paula Siewert