Legislative Newsletter
Senator Tom Carlson-District 38
April 25, 2013

On the 66th day of the 90 day long session, the bills predicted at the beginning of the session to be difficult have started first round debate. The budget must be placed on General File by the 70th legislative day, which is May 1.

We spent two days debating the Medicaid Expansion Bill. LB 577 would require the state department of Health and Human Services to add the adult population newly eligible under the federal Patient Protection and Affordable Care Act to the state’s Medicaid state plan amendment. Under that program, low income adults ages 19 to 64 with incomes of up to $15,856 would be eligible for Medicaid if a state chooses to extend benefits to them.

The federal government would cover that amount for three years, beginning in 2014. The federal money would then decrease and level off at 90% beginning in 2020. Part of the difficulty with LB 577 is that by 2020, when we assume 10% of the cost, we don’t know what that amount of money will be. It is hard to commit the state to something in seven years, and we don’t know what the cost will be. As expected, there were comments concerning both sides of this bill. In the end, the legislature moved on without taking a vote. The bill remains on General File.

Debate on another bill, LB 407, which we must pass in some form, sets school aid for the coming year. Funding for schools, nearly $1 billion, is the largest item in the state budget. State aid is designed to help schools make up the difference between what they need to educate students and how much they can raise through property taxes and other local sources.

Historically, this formula becomes a rural vs urban discussion. The large schools, with high tax levies, but low per student cost, want more money. In recent year the smaller schools, with high per student cost, have seen their state aid decrease as the value of farmland has skyrocketed and local property taxes follow the upward trend.

Approximately 100 of the state’s 249 school districts now receive no additional state aid. Under LB 407, the number of school receiving no aid would grow to 114. The day’s debate ended with an amendment, allowing a 7.4 % increase in school aid next year followed by 2.5% the following year, losing by 2 votes. A compromise amendment was being debated as I sent this letter.

A bill I introduced on behalf of the Department of Economic Development was advanced to Select File with a vote of 26-0. The bill modifies the Intern Nebraska Act to allow more flexibility for students and businesses. An amendment by the Business and Labor Committee encourages the department to recruit students from distressed areas and reimburse businesses more if the intern is a Pell Grant recipient.

Each June the Clerk of the Legislature’s office offers a four day youth experience with a mock legislative session. The deadline for applications is May 15th. More information can be found at the Nebraska Legislature web site: www.nebraskalegislature.gov/education/unicamyouth.php.

Legislative Newsletter
Senator Tom Carlson-District 38
April 5, 2013

The legislature is now debating both morning and afternoon and soon it will be into the evenings.
I have been very busy presenting and defending my priority legislation as well as bills forwarded by the Natural Resources Committee. In that case, the introducing senator takes the lead but it is my responsibility, as chair, to explain the committee position and assist with questions during debate.

LB 517, my priority bill, had nearly three hours of debate before the Easter weekend recess. The bill creates a state water funding and sustainability task force, and I believe this is important for our state. I included in my introduction, “the United States and Nebraska will find alternative energy sources if oil and gas run out. But, if water runs out, we will die.”

The task force would identify water resources programs, projects, and activities in need of funding in order to meet long term goals of preserving and perhaps expanding the state’s water supply. Our water resources consist of the Ogallala Aquifer, rain and stream inflows. We can’t predict rain, so we need to properly manage the water resources we have.

While there was much discussion of the bill and some legitimate concerns, most senators agree that we must commit to working with many groups to accomplish the goal. Senator Heath Mello, chair of the Appropriations Committee, is concerned about the cost of the task force, and we are addressing that issue. It is my belief that we can have this study completed in time for bill introduction in January of 2014. The bill moved to the second round of debate on a vote of 36-0.

The second Natural Resource bill that warranted lengthy discussion this week was LB 57, introduced by Senator Larson. The bill would put into statute the policies of the Environmental Trust Board, including requiring written permission of the board to approve any real property transactions if the property was purchased with grant or revolving funds. Another section of the bill would ensure that any time land is purchased with grant money and then sold or otherwise turned over to the federal government, county property tax dollars must be fully replaced with in-lieu-of-tax payments or a permanent endowment fund.

This issue has been the subject of previous legislation introduced by me and town hall meetings in Clay Country and Lincoln. Our rural areas depend on property tax being taxed at the highest and best use rate to ensure county tax bases are not eroded. After several amendments, the bill advanced to Select File.

A third Natural Resources bill debated this week was LB 388, which advanced on a vote of 30-0. The bill would preserve state authority over electric transmission lines in light of a federal order which would allow any qualifying company to build lines instead of deferring to incumbent utilities. Existing companies have 90 days to decide whether or not to construct, own, or maintain a line if the line will connect with another that they own.

The legislature faces at least three more important issues during the last third of this session. Education funding, medicare, and the state’s budget still wait and we will be working hard to finish these required state responsibilities.

Legislative Newsletter
Senator Tom Carlson-District 38
March 20, 2013

We have passed the half way point of this long, 90 day session. Hearings are winding down and all day debate will begin next week. Morning debate so far has dealt with housekeeping bills and a few others that have been advanced by committees.

LB 613 has been the focus of debate for 8 hours the past three mornings. The bill provides authority to form The Tax Modernization Commission to consider possibilities for any appropriate changes to Nebraska tax policy. Points of the study could include: How to make our tax system fair for all and what must be true for our systems to be competitive with other states?
It should be simple, understandable, easy to follow, have good stability and not be prone to unpredictable fluctuations. It should provide adequate revenue to fund critical state services and
properly address the inter-relationships of various revenue sources within the state system.

A report of the commission findings is due by December 15, 2013. I believe it is imperative that any new tax system be completely fair with agriculture, our number one industry. It should also be fair with manufacturing, through which new businesses and jobs are created.

Senators and Committees, as well as the Speaker, have designated this session’s Priority Bills. Each senator chooses one, each committee chooses two bills, and the speaker chooses 25 bills. The priority designation does not guarantee a bill will be debated, but it does put it ahead of those without priority status.

As mentioned before in this column, my priority bill for this session is LB 517, to create the Water Sustainability Task Force. The task force would be made up of 28 members from across the state who represent all major interests in the proper management of our ground and surface water resources. Representing all water interests and areas of the state is critical to ensure fair and balanced water funding, which focuses on both water quantity and water quality.

The task force’s challenges will be to bring together all work that has been done in the past ten years, evaluate projects that have been proposed, include possible new projects, and evaluate and prioritize order for completion of projects, along with accurate cost estimates. All of those factors must be put together in an organized, believable 20 year strategic plan for water policy in Nebraska. The plan is due to the Governor and legislature by January 31, 2014. I hope to present the plan to the Legislature, through LB 516, in 2014 and request 20-year funding. Remember, water is our most valuable and precious natural resource.

The Business and Labor Committee has chosen LB 476 as a committee priority, which I also introduced. That bill would modify the provisions of the InterNE program to allow more flexibility for businesses, educational institutions, and students.

This intern program is managed through the Department of Economic Development to provide quality professional and technical internships for college age students. The program has been in place for nearly two years with good success. However, to attract more businesses and students, the bill would increase the number of students eligible for internships and eliminate weekly and hourly requirements. Businesses are reimbursed for the cost of the programs.

Legislative Newsletter
Senator Tom Carlson-District 38
February 27, 2013

The Legislature is now at the 1/3 mark of the 90 day session. Afternoon hearings were postponed last week due to the storm in western and central Nebraska and the impending storm in Lincoln. Those bills will be heard the morning of March 5th.

The Central Plains Irrigation Conference in Kearney asked me to be on the February 26th program. I talked about Senator Christensen’s bill, LB 185, which involves a loan from the cash reserve to allow construction of pipelines from Lincoln County to the Republican and Platte Rivers. The work, to begin in 2013, is needed for compliance reasons and river recovery. I also talked about LB 517, the bill I introduced to create the Water Sustainability Task Force. The task force will use the LR 314 report as a basis and, with input from groups concerned with water issues, recommend a strategic 20 year water plan for Nebraska.

LB 515, which I will introduce in front of the Government, Military and Veterans Affairs Committee tomorrow, would expand the definition of “electors” of irrigation districts to acknowledge different types of land ownership interests that might not have been in effect when the original law was passed. Examples would be joint tenants, tenants in common, corporate interests, and life estates, among others. The bill would also allow irrigation districts to conduct elections by mail to provide cost savings and hopefully increase participation in elections.

Of interest to counties and cities is LB 363, which clarifies how the public can access government records. The bill proposes that a public agency or other political office can charge a fee for making copies of public records, but it can not exceed the actual and reasonable cost of making the copies. The bill specifies that charges will not commence until staff spends up to four hours searching, identifying, and copying the records. There was extended discussion on the measure before it advanced to the second round of debate on a vote of 35-1.

As widely publicized in the media, the Governor asked the Revenue Committee to kill his package of tax bills. I appreciate all the emails and other communications to my office concerning your anxiety about our agriculture and manufacturing segments, should any part of those bills pass.

A bill introduced by Senator Schumacher would establish the Tax Modernization Commission to review and recommend updates to Nebraska’s tax code. LB 613 was endorsed by the chair of the Revenue Committee, Senator Hadley of Kearney. Most agree that Nebraska’s tax code is in need of study and equitable reform.

I believe a study which puts all tax exemptions up for consideration is appropriate. The truth is, it is easier to give a tax exemption than it is to take it away. We live in the real world and must be aware of and consider what states around us are doing in the tax arena.

We should want to be the best. To attain that position we need a tax policy that is friendly and understanding to agriculture, our number one industry. Other segments of our economy must also be considered so our citizens can thrive and experience the “Good Life” we all desire.

Legislative Newsletter
Senator Tom Carlson-District 38
February 13, 2013

Last week I indicated I would report on the Governor’s tax package. The two bills were heard in front of the Revenue Committee on separate days and were among the longest in legislative history. Testimony on LB’s 405 and 406 lasted nearly 14 hours.

LB 405, which would eliminate Nebraska’s individual and corporate income taxes in exchange for increased sales taxes, lasted 10 hours. Over 50 opponents spoke out both days, while very few supporters testified in support. LB 405 and 406 both appear to shift a large tax burden to agriculture, ag related businesses and most manufacturing businesses.

If you haven’t already checked it out, figure how much in sales tax you would have paid for inputs, including machinery purchases, and energy to apply the inputs. Compare these figures to state income taxes you would not pay. This will inform you about the effect of LB 405 and LB 406 on your operation.

Today I will introduce LB 517 in front of the Natural Resources Committee. This bill would create the Water Sustainability Project Task Force. The group would consist of 22 voting members. They would be charged with making recommendations to beneficial use of Nebraska’s water resources through research and data gathering, conjunctive management of water, improving existing infrastructure, and providing information to policymakers to justify a stable source of project funds for the next twenty years. The work of the task force would be completed by December 31, 2013.

The task force will forward a report to the Legislature by January 31, 2014. It will be a short period to gather information and formulate a listing of programs, projects, and activities in each river basin of the state. I believe LB 517 is a step in the right direction for a comprehensive, twenty-year state water policy.

Proper management of our water resources is absolutely essential for agriculture today and agriculture for many generations into the future as we fulfill our mission to feed the world.

A bill introduced in the Agriculture Committee by its chairman, Senator Schilz of Ogallala, would create an interest free loan program for counties deemed “livestock friendly.” LB 550 would allow those counties to borrow money at no cost to build roads, bridges, and other infrastructure used to haul livestock. The loans would have to be repaid within five years. Twenty one counties are presently designated livestock friendly by the Nebraska Department of Agriculture.

Legislative Newsletter
Senator Tom Carlson-District 38
February 7, 2013

This is the 21st day of the 90 day Session. We meet for morning debate as a body and afternoon hearings have full agendas.

Last week, Senator Mark Christensen introduced LB 185 in front of the Appropriations Committee. The bill would provide state assistance to implement stream flow projects and I was happy to testify in favor of the legislation. The bill is necessary due to four NRD’s pooling resources to purchase land in Lincoln County to pipe water to the Republican River and Platte Rivers. A lawsuit has, for now, stalled efforts to bond the project, but LB 185 would provide temporary funds to allow construction to proceed.

Under the bill, $40 million would be transferred from the Cash Reserve Fund to the Water Contingency Cash Fund. The state Dept of Natural Resources would loan the funds upon request by the NRD’s and these loans would have to be repaid to the state by June 30, 2018.

I have introduced two bills concerning the future of Nebraska water. LB 517 would create the Water Sustainability Project Task Force. The group would consist of 22 voting members. They would be charged with making recommendations to beneficial use of Nebraska’s water resources through research and data gathering, conjunctive management of water, improving existing infrastructure, and providing information to policymakers to justify a stable source of project funds for the next twenty years. These recommendations would be completed by December 31, 2013.

The task force shall forward a report to the Legislature by January 31, 2014. It will be a short period to gather information and formulate a listing of programs, projects, and activities in each river basin of the state.

The second bill is LB 516, the Nebraska Water Legacy Act. This bill is a companion to LB 517 and could earmark a portion of sales tax revenue for a new Nebraska Water Legacy Fund. The funding request would be for adequate funds to enable completion of the twenty year plan.

Hearings on the Governor’s tax package begin yesterday and continued into the late evening. There will be a second bill heard this afternoon. I will review those hearings in my next report.

Legislative Newsletter
Senator Tom Carlson-District 38
January 29, 2013

This, my 7th year in the Legislature, may be the most important to my constituency and Nebraskans in general. I was elected chair of the Natural Resources Committee for the next two years, which will complete my second, four-year term. Water issues that I have championed come before this three day committee and I look forward to continuing my emphasis on this most important state resource.

A three day committee has additional staff members and also caused an office change for me.
Barb DeRiese continues as my Administrative Assistant and answers my office phone, which remains the same (402-471-2732). Barb also maintains my daily calendar and greets visitors to the office. You may also contact me by email at tcarlson@leg.ne.gov or write to me at the Capitol. My office is located in Room 1210, which is in the far southeast corner of the first floor.

Nanette Hessee is also from my original staff as Legislative Aide. Nanette is beginning her 21st session with the legislature. She is an attorney and is the primary staff person on my personal legislation as well as constituent matters. Barb Koehlmoos, the Natural Resources Committee Clerk, is a long term staffer and the committee benefits from her expertise. Barb schedules hearings and does the recordings resulting in transcripts that comprise the legislative history of all bills.

Laurie Lage is the Committee Counsel. Laurie, also an attorney, works with me and special interest groups to determine legislation and also drafts legislation concerning natural resources. She has worked for several committees during her legislative career. I am very blessed to have such a competent, professional, friendly staff ready and able to serve you.

My second committee assignment is the Banking, Commerce, and Insurance Committee, which meets on Monday and Tuesday. I have served on this committee previously and look forward to legislating in these areas once again.

Significant bills among the 655 introduced for this 90-day session include water issues, gun control, and tax exemptions. In addition to bills referenced to the Natural Resources Committee, I have introduced eight personal bills that will be heard in the Agriculture, Education, Revenue, and Appropriations Committees.

The Governor’s tax package will be introduced as LB’s 405 and 406. The hearings are scheduled for February 6th and 7th in front of the Revenue Committee. LB 405 provides for the elimination of individual and corporate income taxes. Twenty-seven sales tax exemptions totaling approximately $2.4 billion would also be eliminated to attempt to make the bill revenue neutral.

I’m convinced the measure needs to be revenue neutral for the agriculture and manufacturing segments of our state economy. From what I have seen so far, ag and manufacturing are taking the brunt of the loss of sales tax exemptions. LB 406, the second part of the Governor’s package, would end the corporate income tax and would lower income taxes on Social Security checks and pension income. This bill predicts those taxes would be made up through the elimination of nine sales tax totaling $395 million dollars a year. The question is the same with LB 406. How does it impact agriculture and manufacturing?

Legislative Newsletter
Senator Tom Carlson-District 38
April 20, 2012

The last day of the 102nd Legislature, Second Session, was delayed a week. While it is unusual, it is not unprecedented that the 60 days were not consecutive in order to have the opportunity to override bills that were passed on the later days of the session and then vetoed by the Governor.

There were three major bills to consider over-riding. LB 806, to allow betting on historical horse races was viewed by opponents, including myself, as expanding gambling in our state. Proponents claimed the bill was a jobs bill, not a gambling bill. The override was defeated on a vote of 28-20. Senator Lauhtenbaugh moved to reconsider the vote, which is a procedural move to extend the debate. That motion failed, also on a vote of 29-20, and the veto held.

LB 357 was the second bill reconsidered for override. Introduced by Senator Brad Ashford of Omaha, the bill would allow local sales tax to be increased by 1/2 percent with 70% approval of the municipality’s governing body before the proposed increase can appear on the ballot for approval by voters in primary or general elections. Such sales tax increases in District 38 would be earmarked for public infra-structure projects. I view this issue as a matter of local control. Local governmental entities and the local voters should decide this matter, not the Legislature.

There are also sunsets in the bill so increases can not last indefinitely. Cities can presently add up to1.5 cents to each dollar spent. The Nebraska League of Municipalities reported that 86 of the 194 Nebraska cities that impose a sales tax have reached the 1.5 percent maximum. The override motion was successful on a vote of 30-17.

LB 599, to restore prenatal care benefits to pregnant women, including some not legally in the United States, was the last bill considered. I toured the state last week with Speaker Flood and other pro-life senators to meet with health officials in Scottsbluff, Kearney, and Grand Island.

All agreed that lack of prenatal care for low income pregnant women can lead to many health issues for newborns, including increased risk of birth defects, low birth weight, and slowed mental development. The medical community believes that each dollar spent on prenatal care prevents four dollars from being spent on babies with serious health issues. As I have written in previous news, I believe this bill is a pro life bill and an economic bill. I voted in favor of bringing healthy babies into this world, who will be Nebraskans and U.S. citizens.

The session ended with farewell comments from nine retiring Senators. The legislature will miss their experience and leadership. I will be spending much of the interim working on informing Nebraska citizens about LR358CA, the Constitutional Amendment to extend term limits to three consecutive four year terms. You will decide this issue on the November ballot. I introduced this legislation and will be working hard for its passage.

Margo and I look forward to visiting the 38th District communities, as we have in the past. In the meantime, my Lincoln office staff will be available to assist you with any Nebraska state issues.