I am here before you this afternoon to introduce LB405 on behalf of the Governor.

Or, as we otherwise refer to it in our office, the Lobbyist Full Employment Act of 2013….

Now with all seriousness, I want to thank all of the Nebraskans here at the Capitol today along with all of those across our state watching the hearing on television and online.

Thanks to the many citizens who have contacted me by letter, email and phone and for those who have taken time out of their busy lives to participate.

Governor Heineman, Senator Ashford and myself asked for a serious and robust discussion on tax reform and today is the first public forum of the many conversations that have already begun.

Today marks the first time in nearly fifty years that our Legislature has taken up the issue of fundamental tax reform to simplify our tax system, make it more fair, and modernize it for our sons and daughters.

The last few weeks I’ve had a number of folks ask me why it’s been so long since we have had a conversation.

My answer is that in many ways it’s ironic that an issue as fundamental to our daily lives as taxes can also be so incredibly complex and difficult to address.

I came to the Legislature, as we all do, determined to make a difference and vowing not to shy away from the most important and substantive issues that affect the lives of Nebraskans.

The four most important reasons why I am enthusiastically engaged on the issue of tax reform sat across from my wife and I at breakfast this morning.

I want our four kids, and all children across Nebraska, to have more and better opportunities than we have had to live, start a business and raise a family in our state.

I want our retirees, like my parents, and retired veterans to stay in Nebraska and continue to contribute to our communities.

Can anyone tell me with a straight face that our current system of keeping our young people and retirees here in Nebraska is working as well as it could and should?

It is time to get serious about this, and this is an important part of the solution.

Tax and business rankings are important, but tax reform really is about the next generation of Nebraska’s leaders; our sons, daughters and grandchildren.

They’re only going to be the leaders of tomorrow if we have the great jobs and lower taxes to keep them here.

We are making significant progress in Nebraska, but we can, and we must do better. If better is possible, good is not enough.

There is a reason why Nebraska is “The Good Life.”  We have the ability, opportunity and responsibility to create positive change and make Nebraska, “The Best Life.”

This tax reform discussion can help our state turn the corner and propel our economy well into the 21st century.

Today is about our future, it’s about our young people, our retirees and our hard-working families and small business owners and workers.

I have full faith and confidence in the citizens of our state. They care about our future, and they will engage in this statewide conversation about tax reform.

We need those speaking today to not only share what they may be for or against in the tax reform plan, but also to share suggestions to make our state more competitive and to thrive.

A problem clearly stated is often a problem already half solved.

If you oppose or have concerns about our plan to totally eliminate the individual and corporate income taxes by lifting the sales tax exemptions on $2.4 billion, what list of exemptions would you use?

What does fundamental tax reform look like to you?

I’ve said many times the list we’re using isn’t graven in stone, it’s not the Ten Exemptions.

We will be listening intently this afternoon and we respect and value the varying opinions that will be outlined here today.

But we need to insure the 1.8 million hard working Nebraskans that deserve tax reform are not forgotten.

Let me address a couple of important points regarding what we are discussing today.

LB405 today and LB406 that will be discussed tomorrow represent a one-of-a-kind approach to tax reform that is unique to Nebraska and fundamentally different from the plans being discussed currently in a number of state capitals around America.

I want to be clear, we are not proposing to raise the sales tax rate, and we are not proposing to place sales tax on services.

The fact is that the data specific to Nebraska proves that the sales tax in our state has been a more stable source of revenue than the income tax.

If you look at the graph on the handout distributed to you earlier titled “Growth of General Fund Revenue by Sources” you will see that the blue line representing sales tax has fewer dips and valleys than the red line representing income tax.

The second chart on the reverse side of the handout shows the actual revenue numbers from FY 2002-2003 to FY 2011-2012.

Please direct your attention to FY 2008-2009 when the individual income tax swing was negative by 17.6%, the sales and use tax swing was only negative by 6%.

To determine where we want our state to be revenue wise and economically in the future requires us to closely examine what our state revenue picture looks like now.

Agriculture and manufacturing are huge components of our economy and I know this discussion isn’t easy or maybe even welcome for these industries.

I have a unique perspective on how vital agriculture is to our state as a senator that represents the western suburbs of Omaha and also the small communities and rural areas of Douglas County.

I’m a small business owner in the construction field now, but I was born and raised as a fourth generation ranch kid on our family’s cattle ranch near the Nebraska/Colorado border.

I grew up in the same sod house in which my great-grandparents raised their eight children.

Fixing fence, putting up hay and calving heifers were part of my daily life just like they are today for many Nebraskans.

They say you can take the country boy out of the country, but you can never take the country out of the boy.

It’s true. Agriculture is in my blood, it’s part of who I am.

My family came to America like many of yours, driven to make a better life through hard work and limitless opportunities.

Growing up in agriculture, I learned a good work ethic and the value of working hard until the job is done.

When I was sixteen, I didn’t buy a car, I bought a tractor. I did this so that my brothers and I could start our own haying business and put ourselves through college.

Farming and ranching are not just industries in our state, they are a proud way of life and the bedrock of Nebraska.

We should do everything we can to protect and promote agriculture and manufacturing through this tax reform discussion, and we will.

It is vital that agriculture and manufacturing are at the table as we continue these discussions.

Our citizens are not afraid of tackling tough issues.

We’ve weathered a great number of challenges in our state’s history because we have smart people who will keep working to make Nebraska even better.

Recently, we have faced a few issues in the Legislature when a solution seemed impossible, but people stayed at the table and didn’t give up until the job was done.

I’m ready to roll up my sleeves and work together with you, my fellow committee members, our colleagues and citizens across Nebraska to better our state.

Thank you for your time and attention, Chairman Hadley, and I would be happy to entertain any questions.

Please feel free to contact me with any issues or concerns you may have regarding public policy or your state government, and let me know how I may assist you. If you live in the 39th legislative district, I would like to have your contact information and email address in order to communicate with you.

My staff in my State Capitol office in Lincoln look forward to hearing from you and assisting you. Please feel free to contact me using the contact information on the right.

Sincerely,
Sen. Beau McCoy

Read the Unicameral Update’s feature article on Senator McCoy.

In short, the best way to contact your senator is any form of communication that is directly from you and in your own words. A letter or email allows a senator to refer back to your comments, but the important factor is that you took the time to contact them.

Will it make a difference? Yes!

As your state senator, we may not agree on every issue all the time, but I value and appreciate hearing your thoughts and concerns.

There is a lobby full of people who are more than happy to speak with me, trying to convince me to vote a certain way or support a specific issue. I want to hear from you, the constituents of Legislative District 39. I represent you, and your voice is the one I want to hear most clearly.

In the four short years I have been your state senator, the volume of emails I receive has increased dramatically. My first year in office I received a few letters, a fair number of phone calls and emails that were sent by concerned citizens who shared their thoughts on a particular issue.

Since the special session in 2011, things have changed.

Most of my emails come from special interest groups where a person can go to a website, sign onto a form email that is then automatically sent to me. It may or may not have their name and address, possibly be sent to the wrong elected official and in the case of one group, will only allow me to respond to the sender through their website.

The carefully worded form email uses catch words that have been carefully vetted, but a short, simple email directly from a constituent to an elected official is much more powerful.

I choose to reply to my constituents by letter with my signature at the bottom; not an autopen or electronic signature; assuring that the response is from me. This is why it is helpful to include your address along with your name in emails and letters.

Another recent tool employed by special interest groups are robocalls or solicitation calls that ask where you stand on a particular issue. If you agree with them, they patch you through to our office.

The majority of people who receive these calls are confused on how they ended up talking with a senator’s office, or think we called them.

I can not stress enough, you do not need to go through a group or website to share your thoughts or concerns with your elected officials. You don’t need to be concerned with making it sound important or official.

Sharing your thoughts in your own words is the most powerful and valued message you can send your elected officials.

If you have any questions or if I can be of assistance, you can email me personally at bmccoy@leg.ne.gov or call my office at the State Capitol at 402-471-2885. I assure you, I read every letter and email sent to me and receive all messages.

“The Salvation of the State is Watchfulness in the Citizen.”

To date, the Banking, Commerce and Insurance Committee has held two interim studies and two legislative hearings where stakeholders and the public testified, plus four public briefings by the Department of Insurance. Several more briefings are in the planning stages and a third interim study will be scheduled for a hearing soon.

The most recent briefing that took place on July 19th was an important mile marker for our state. It was the first time we were able to hear from our Department of Insurance since the U.S. Supreme Court decision.

The Court ruled the individual mandate contained in the Affordable Care Act is constitutional, but it is a tax, not a penalty, as promoted by President Obama. The mandate has been called the largest middle class tax increase in history.

One portion struck down by the court is the required Medicaid expansion. States are now allowed to opt out of expanding Medicaid without fear of losing all Medicaid funding.

One thing that has not changed is the amount of questions that remain to be answered by the U.S. Department of Health and Human Services. Rules and regulations continue to be developed, with estimates of 1300 pages for every page of the 906 page Affordable Care Act.

We learned the National Governors Association along with the National Association of Medicaid Directors have formally submitted questions that are essential to answer and all of the states are in the same boat.

Everyone is needing answers.

Setting up a health care exchange is no small undertaking. In fact it is the largest non-defense IT project in the history of our country. Officials estimate it will cost Nebraska between $50 – $90 million to set up the system and $17 – $18 million to operate it on a yearly basis.

One criticism I have heard bantered about is how Nebraska is lagging behind other states in implementing an exchange. When a state announces they will run a state exchange, it does not mean they are more prepared than Nebraska. It means they chose to make a decision with less input from their citizens and fewer answers from the federal government.

It goes without saying that everyone wants as many Nebraskans as possible to have access to qualified health care and insurance coverage. The question is, how do we get to that point and make it affordable for our state and our citizens?

Nebraskans rightfully demand their elected officials make sound decisions on how they spend tax-payer’s hard earned money. Waiting for fundamental questions to be answered before our state makes this final decision is the “Nebraska way.”

There are a lot of questions yet to be answered, but I am confident that we are on the right path towards finding a solution that is in the best interest of our state and our citizens.

You can watch the briefings and hearings live at nebraskalegislature.gov by clicking the live streaming video link. If you need assistance, please contact my office at 402-471-2885. We would be happy to guide you through the state website.

“The Salvation of the State is Watchfulness in the Citizen.”

Each senator is allowed to choose one bill as their priority to be debated by the full legislature. In 2009, I choose LB 675, a bill that ensures anyone seeking an abortion be provided with necessary information regarding certain additional medical procedures; particularly the availability of a free ultrasound and the ability to view the ultrasound image.

In 2010, my priority bill was LB 742, requiring local government to open up the settlement process. I believe Nebraskans deserve to know how government spends their hard-earned tax dollars, and a closed settlement process when tax dollars are involved made no sense to me. With LB 742 now law in Nebraska, we have taken a large step towards a more accountable government.

Last year I prioritized my bill, LB 22, the“Mandate Opt Out and Insurance Coverage Clarification Act.” LB22 accomplishes two things. First, it affirmatively opts out Nebraska from allowing health insurance plans that cover abortions from participating in our potential health insurance exchanges.

Second, LB22 prohibits private health insurance sold in Nebraska from providing elective abortion coverage, except through an optional rider where the premium is paid solely by the insured. The only exceptions allowed in LB22 are to prevent the death of the mother or treat medical complications arising from an abortion.

This year I have chosen LB 970, introduced by Senator Abbie Cornett from Bellevue, at the request of the Governor. LB 970 lowers the individual state income tax, the corporate income tax and the inheritance tax.

The last few years have been financially challenging for the state and for Nebraskans. I am proud that the legislature chose to respond by cutting spending instead of increasing the tax burden on our citizens.

As Nebraskans, we responded to the economic downturn just as we have in the past. We worked together, lived within our means, and cared for our neighbors.

Now that revenue has stabilized, we need to lower the tax burden instead of increasing government spending. Nebraska is one of only eight states that has the inheritance tax and Forbes recently named Nebraska as a state “Where Not to Die in 2012.”

People joke that Nebraska is the “tax me” state. I want to change that perception.

We need to change the way we think in government. Instead of assuming that adding more money to an agency or program will produce improvements, we must be innovative and results oriented. Instead of the status quo, we must focus on outcomes and never forget that it is the tax-payers money.

Permanent tax relief was a strong component of my campaign to represent District 39 in the Legislature and I remain committed to this goal. I have and will continue to support legislation that brings tax relief to the citizens of Nebraska.

I encourage you to be an active participant as Nebraska’s “second house.” You can watch proceedings in person from the balcony in the chamber, or watch live video streaming at www.nebraskalegislature.com.

If you have any questions or I can be of assistance, you can email me personally at bmccoy@leg.ne.gov or call my office at the State Capitol at 402-471-2885.

“The Salvation of the State is Watchfulness in the Citizen”.

With the beginning of the legislative session, the Nebraska State Capitol is full of activity and senators are busy reviewing proposed legislation. One of my bills has gathered the attention from some of my fellow senators.

LB 944 prohibits campaigns from paying elected officials for personal services; personal services can include campaign managers, consultants or fundraisers. LB944 is needed to close a current loophole in law that allows an elected official to financially profit through another candidate’s campaign.

The potential for abuse is enormous.

An elected official who is looking to make money off of their position can sign on to be a consultant or employee of a campaign, then approach lobbyists and interest groups to donate to the campaign. This money could then be funneled back to the elected official.

It is important to remember this same elected official decides the fate of legislation supported or opposed by the same lobbyists and interest groups who they solicited for a donation.

I found myself asking, what if the elected official tries to sell their vote to the lobbyists and interest groups? What if the elected officials says they will do everything in their power to go against the lobbyist or interest group if they do not donate to the campaign?

The above scenario must not be allowed to happen.

Nebraskans expect and demand their elected officials to conduct themselves with integrity; including their actions outside their official duties.

As your state senator, I swore an oath of office to “faithfully and impartially perform the duties of the office.” I take this oath very seriously and is the reason why I introduced LB 944.

I have also introduced a bill that will hopefully lower the amount of paper we receive in the senator’s offices. LB 782 will require every report that is submitted to the legislature to be submitted electronically.

In preparing this bill, we found 256 statutes that need to be changed which makes LB 782 382 pages long. The irony that it takes a large number of pages to reduce the amount of paper used is not lost. In fact, it gives a small taste of how much paper, ink, and man hours can potentially be saved by requiring reports to be submitted electronically.
Even though LB 782 is long, it is a common sense, simple bill that is need in our legislature.

I encourage you to be an active participant as Nebraska’s “second house.” You can watch proceedings in person from the balcony in the chamber, take part in committee hearings, or watch live video streaming at www.nebraskalegislature.com.

If you have any questions or I can be of assistance, you can email me personally at bmccoy@leg.ne.gov or call my office at the State Capitol at 402-471-2885.

“The Salvation of the State is Watchfulness in the Citizen”.

The last couple of months have been very busy at our State Capitol. I received phone calls and emails from many of you regarding the special session and TransCanada’s Keystone XL pipeline. The original proposed route would have taken the pipeline through the Nebraska sandhills.

As the call went out for a special session to begin November 1st, the ability for the legislature to find a legal solution did not look promising.

Fellow senators introduced 6 bills, 4 which received public hearings in the Natural Resources Committee, on which I serve. Though the days were long and there were strong opinions on both sides, I am grateful I had the chance to hear first hand from fellow citizens and experts from Nebraska and across our nation.

Just as the full legislature began what looked like a long and divisive debate, TransCanada agreed to move the portion of the route that would have crossed the sandhills. This set the stage for the passage of two bills that were signed into law on November 22nd.

LB1 puts into place the Major Oil Pipeline Siting Act. Major oil pipelines will now be required to go through an application process that will be approved or denied by the Nebraska Public Service Commission.

LB4 authorizes the State of Nebraska to perform a Supplemental Environmental Impact Statement (SEIS) on the new route to be proposed by TransCanada for the Keystone XL. The SEIS will be paid for by the state, and therefore owned by the citizens of Nebraska. Recently, the Department of Environmental Quality announced it selected the Omaha engineering company HDR to assist with the SEIS.

With the end of the special session, senators and staff are back to preparing for the new session set to begin January 4th.

One of the bills I plan to introduce may only change a couple of lines in statute, but will affect everyone who lives in the 3-mile extra territorial zoning jurisdiction (ETJ) around Omaha. The bill clarifies the mayor of a metropolitan class city does not have the authority to enforce taxes outside the city limits, including the ETJ.

I strongly believe this is a matter of fairness. If a city has the authority to tax a person, that person should be able to enjoy all the rights and privileges of citizenship, including the right to vote in that city’s elections.

This bill, along with all the bills introduced in the legislature affect the daily lives of Nebraskans.

I encourage you to be an active participant as Nebraska’s “second house.” You can watch proceedings in person from the balcony in the chamber, take part in committee hearings, or watch live video streaming at www.nebraskalegislature.com.

If you have any questions or I can be of assistance, you can email me personally at bmccoy@leg.ne.gov or call my office at the State Capitol at 402-471-2885.

“The Salvation of the State is Watchfulness in the Citizen”.

Last week the Banking, Commerce and Insurance Committee received a briefing by the Nebraska Department of Insurance. The topic was the mandated health care exchanges created in the Federal Patient Protection and Affordable Care Act.

Although the federal health care act provides the basic framework for creating the exchanges, significant issues are being resolved through the U.S. Department of Health and Human Services, who are still developing the rules and regulations.

At a minimum, each exchange must implement procedures to certify health plans, assign a rating to each plan and standardize the format for presenting options, inform individuals of eligibility for Medicaid and determine eligibility for federal insurance premium subsidy programs.

They must be deemed a “Qualified Health Plan” and provide “minimum essential benefits.” Unfortunately we have not yet learned what “minimum essential benefits” means.

With all this uncertainty, the deadlines have not changed. Each state’s health care exchange must be certified by the Secretary of the U.S. Health and Human Services by January 1, 2013, be operational by January 1, 2014 and self-sustaining by 2015.

This means any changes need to current Nebraska state statutes must happen this next session. Nebraska must build a plan without a foundation in place.

With each new briefing it becomes clearer just how much of a massive undertaking creating a health care exchange will be, not only for Nebraska, but all states.

I encourage you to learn more about the Federal Patient Protection and Affordable Care Act and tell us, who represent you, your questions and concerns. I know Congressman Lee Terry, Senator Ben Nelson and Senator Mike Johanns value your input, as I do.

One of the more common questions my staff and I receive is “Do you work when the legislature is not in session?” Yes, we do!

Interim, the time between legislative sessions, is filled with assisting constituents and researching issues facing our state to prepare for the next session.

One concern is the abuse of “bath salts.” Like K2, it is a designer drug sold at head shops, convenience stores and on the internet. It has many names, including Ivory Wave, Mr. Nice Guy and Mystic. The powder can be white to light brown in color and contains Methylenedioxypyrovalerone (MDPV.) To achieve a high, the powder is snorted, smoked or injected.

MDPV is a psychoactive drug, producing effects similar to cocaine and amphetamines. A few of the possible symptoms include rapid heart rate, high blood pressure, severe paranoia and extreme anxiety and agitation.

Senator Ken Schilz from Ogallala is currently working with the Attorney General’s office on legislation to ban “bath salts” in Nebraska.

As Vice-Chairperson of the Banking, Commerce and Insurance Committee, I, along with my fellow committee members, continue to learn what impact the Federal Patient Protection and Affordable Care Act (PPACA) will have on Nebraska.

One of the many uncertainties facing states involves the health care exchanges.

Each state’s health exchange plan must be certified by the Secretary of the U.S. Health and Human Services by January 1, 2013, be operational by January 1, 2014 and self-sustaining by 2015.

Nebraska has many questions surrounding the health exchanges that the U.S. Department of Health and Human Services has been able to answer. This means as a state, we must build a plan without a foundation.

We have a significant challenge before us, but I am committed to putting in the necessary time and effort to find the best policy options for our state and our citizens.

I have only mentioned two of the many issues facing our state and welcome your questions, concerns or suggestions. I want to hear from you, the constituents of Legislative District 39. Please do not hesitate to contact me at my office at the State Capitol. My office number is 402-471-2885 or you can email me personally at bmccoy@leg.ne.gov.

“The Salvation of the State is Watchfulness in the Citizen”.

Today Governor Heineman signed my priority bill into law. LB 22 is the “Mandate Opt Out and Insurance Coverage Clarification Act” and accomplishes two things.

First, LB22 affirmatively opts out Nebraska from allowing health insurance plans that cover abortions from participating in our potential health insurance exchanges. This opt-out is permitted under a compromise secured by Nebraska Senator Ben Nelson and is listed in section 1303 of the Federal Patient Protection and Affordable Care Act.

Seven states have passed similar “opt-out” laws; Arizona, Idaho, Louisiana, Mississippi, Missouri and Tennessee and Virginia. 19 states have introduced bill that are currently in the legislative process.

Second, LB22 prohibits private health insurance sold in Nebraska from providing elective abortion coverage, except through an optional rider where the premium is paid solely by the insured. The only exceptions allowed in LB22 are to prevent the death of the mother or treat medical complications arising from an abortion.

Currently Idaho, Kentucky (1984), Missouri (1983), North Dakota (1979), and Oklahoma (2007) have laws limiting private insurance coverage for elective abortions. All five states allow an optional rider, as proposed in LB22.

In the court case Coe v. Melahn, 1992 our 8th Circuit Court of Appeals upheld the Missouri law which is mirrored in LB22. The court ruled the law did not pose an undue burden and states are permitted to prohibit coverage of abortions in private health insurance.

This is not a new concept for Nebraska. In fact out law states it is “…the will of the people of the State of Nebraska and the members of the Legislature to provide protection for the life of the unborn child whenever possible.”

30 years ago the Nebraska Legislature passed LB125 which prohibits the use of public funds to pay for health insurance coverage for abortions. I believe LB22 continues what LB125 began; Nebraskans who morally object to abortion should not be forced to pay for an elective procedure that ends the life of an unborn child through their tax dollars or insurance premiums.

My hope is by the time you read this, LB22 will have been signed into law.

There are two other pro-life bills currently being debated by the Legislature. LB521 was introduced by Senator Tony Fulton of Lincoln and requires the physical presence of the physician who performs, induces or attempts abortion.

LB690, introduced by Senator Lydia Brasch of Bancroft, requires parental consent for a girl under the age to 18 before she is allowed to have an abortion. No matter your stance on the issue, we can all agree that a young girl should never be allowed to go through such a life altering experience alone.

LB690 contains provisions to protect the girl if she is being abused at home or is being coerced to have an abortion.

As a co-introducer of both bills, Senator Brasch and Senator Fulton have my full support.

I encourage you to follow the Unicameral as we progress through the 102nd Legislature. “The Salvation of the State is the Watchfulness of the Citizen”.
If I can be of assistance, do not hesitate to contact me at my office at the State Capitol. My office number is 402-471-2885 or you can email me personally at bmccoy@leg.ne.gov.