This past week was a busy one at the Legislature. All the standing committees held morning and afternoon hearings, which will continue again this week. A total of 133 bills had public hearings, including several controversial issues such as voter ID, constitutional carry, abortion restrictions, criminal justice reform, tax cuts, and education issues. These issues will consume much of the remaining time in this session.

There are 97 bills scheduled for hearings this week before we return to our normal schedule – morning floor debate and afternoon hearings, on Monday, February 13. The final day for committee hearings will be March 24. At that time, the Legislature will go to all-day floor debate.

Speaker Arch will have to carefully schedule bills to ensure we have a productive session. We can expect filibusters for many of the controversial issues I mentioned above, plus the Unicameral tries to at least debate all of the Senator, Committee, and Speaker priority bills, which go to the front of the queue ahead of other legislation. The Speaker will also mix in bills that qualify for “consent calendar,” which are bills that receive a unanimous committee vote, have no opponents (or an amendment that resolves the opposition’s issues), and have no fiscal note.

Since each Senator has one personal priority, each committee has two priorities, and the Speaker has 25 priorities, the total number of priority bills grows to just well over 100 bills. It will be difficult to get through all of the priority bills this session and it will be very unlikely that nonpriority bills will be heard if they do not qualify for consent calendar. With this in mind, it will be important for bill sponsors to work with other Senators to try to amend their bills into another priority bill, including committee priority bills. This of course can get tricky because you do not want to allow someone else’s bill to sink yours. However, there are advantages to combining bills, because the other bill sponsor can bring additional supporters to your combined bill package.

I introduced 12 bills this year. Some should qualify for consent calendar, others could get merged into a committee omnibus bill, and a couple may get to the floor early and move forward without a priority designation. However, I will ultimately need to choose between two or three bills that are important to me for priority status. Since everyone is focused on getting their portion of the Cash Reserve surplus, it is critical to focus on funding bills that have a likelihood of passage. Next year will likely be too late to get a bill with a significant fiscal note approved. Over the next couple of weeks, the rest of my bills will be heard in committee. At that time, I will be in a position to finalize my plan to move the bills forward.

I have several bills with upcoming committee hearings:

• LB32, February 7 at 9:00 a.m., Banking, Commerce, and Insurance Committee. Requires insurers to supplement insurance policies or certificates relating to coverage of individuals under 65 years of age who are eligible for Medicare by reason of disability or end-stage renal disease.
• LB433, February 7 at 9:30 a.m., Health and Human Services Committee. Provides requirements for distributing funding for behavioral health regions and would restore funding to the 17-county Region II Behavioral Health District headquartered in North Platte.
• LB434, February 10 at 1:30 p.m., Health and Human Services Committee. Requires the Department of Health and Human Services to enroll long-term care hospitals as providers under the medical assistance program.
• LB281, February 15 at 1:30 p.m., Natural Resources Committee. Creates a grant program through which $30 million could be awarded to rebuild the State 4-H Camp at Halsey.
• LB31, March 6 at 1:30 p.m., Transportation and Telecommunications Committee. Requires two-person crews on trains and light engines.

I will continue to keep you informed each week regarding the upcoming bills of interest that will be heard. Please provide your input directly to me at mjacobson@leg.ne.gov or 402-471-2729, make plans to testify, or submit your thoughts on the public comment portal available at the top of every bill page at NebraskaLegislature.gov.

This week, the Legislature hosted Governor Jim Pillen to give his State of the State address. The Governor proposed a very austere budget that provides for a 1.3% annual average increase in State spending during the two-year period ending June 30, 2025. He also cited the unprecedented $2.3 billion cash reserve expected to exist by fiscal year 2025 based on the latest revenue forecast. The Governor has proposed significant tax cuts and additional state funding for K-12 education. In addition, he has proposed setting aside funds for a new state prison, the Perkins County canal, and increased funding for building state roads.

In his education plan, the Governor envisions creating a new Education Future Fund which will require an initial investment of $1 billion and $250 million in additional funding each year thereafter. The increased state aid to schools would be coupled with a 3% cap on school district property tax revenue growth. The Education Future Fund would be used to provide $1,500 per student for all schools in the state and to increase special education funding in the future. On the tax relief side, Governor Pillen is asking for maximum individual and corporate income tax rates to be reduced to 3.99% by 2027 and to accelerate the elimination of income taxes on Social Security from the existing 3-year sunset to a total elimination in 2024.

The Legislature also commenced committee hearings this week and bills have begun to advance to the floor. In the coming two weeks, the Legislature will begin all-day hearings after briefly checking in to receive motions, amendments, and committee reports. Speaker Arch hopes hearing more bills in committees early in the session will allow bills to move more quickly and give Senators a chance to better examine which bill they may want to prioritize. On February 13, the Legislature will return to morning floor debate followed by afternoon committee hearings. All committee hearings will be completed by March 24.

Given the number of bills introduced this year, and the push by some of the progressive members to slow down the Legislative process, Senators will need to find a priority for legislation that doesn’t qualify for the consent calendar. Bills are eligible for each Senator’s personal priority, one of a committee’s two priorities which generally include an omnibus amendment, or can sometimes be attached to a priority bill on the floor. It is important each Senator use their priority designation wisely.

The Banking, Commerce, and Insurance Committee has scheduled two bills that I sponsored to be heard this week. The first bill, LB674, is scheduled for the morning of Monday, January 30. This bill would update the regulations surrounding digital currencies. I coordinated with the Nebraska Department of Banking and Finance on this bill in an effort to help safeguard the public and give the Department the tools necessary to better regulate this service as the industry continues to mature. The second bill, LB628 is scheduled to be heard on the morning of Tuesday, January 31. I worked with the Secretary of State to bring this bill to update provisions dealing with Limited Liability Companies, and other forms of corporate structures. I am hopeful both of these bills will be considered for inclusion in a committee omnibus amendment. If this happens, the bill should move to passage without having to carry them as standalone bills.

LB33, my bill to clarify when a mayor of a city of the first class may break a tie, and LB98, which updates the Micro-TIF statutes, will also be heard in the Urban Affairs Committee on the afternoon of Tuesday, January 31.

I will keep you informed each week regarding the upcoming bills of interest that will be heard so you can provide your input to me directly and provide testimony or comments to the Legislature. As always, if you are interested in joining the North Platte Area Chamber and Development Corporation’s weekly call, please contact the Chamber at (308) 532-4966 for times and call-in information.

As legislation and issues arise, please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!

Bill introduction came to an end last week with 812 bills and over two dozen constitutional amendments introduced. We also adopted the permanent rules for how the Legislature will operate this biennium. Although there were many proposed changes, those advanced from the Rules Committee were fairly non-controversial; however, there may be two more rule changes offered in the coming weeks which will be highly contested. Until then, we are moving on to committee hearings. Unlike many states, all bills get a public hearing in the Nebraska Legislature. On Monday, January 23, committees will begin taking comments on the bills in their jurisdiction. Committees must complete all hearings by March 24. Hearings must be scheduled a week in advance and the public may participate by testifying in person or submitting comments through the Legislature’s website.

The Urban Affairs Committee has scheduled two of my bills for hearing on January 31. The first bill is LB33, a clean-up bill that clarifies when the mayor of a city of the first class (population of 5,001-100,000) can vote to break a tie. This issue came to my attention when the City of North Platte was voting to place the recreation center bond issue on the November ballot. LB33 would clarify a mayor may break a tie when one or more of the council members are absent, but does not allow the mayor to vote to create a super-majority.

The second bill is LB98. This bill makes three changes to the Micro-TIF statutes. First, the bill would permit cities other than Lincoln and Omaha to conduct a large “blight and substandard” study but then only declare certain individual lots as blighted and substandard to allow the TIF funds to be more targeted. Second, LB98 allows a city to limit the number of redevelopment plans approved in any one year. Third, and most importantly, the bill directs TIF proceeds to the holder of the note instead of the owner of the home. This is a necessary change so the developers who remodel a home under this program can retain the TIF proceeds if they subsequently sell the home. If the proceeds go to the note holder, the developer can then pledge the note to a lender just as they can with the other TIF programs and have those funds available to use to complete the project. In the past, updates to the Micro-TIF program have gotten strong support in the Legislature. With a large group of incoming Senators, it will be important that everyone understands how the program works now and the many benefits of my proposed changes.

I am pleased to have early hearing dates for both LB33 and LB98 and do not expect either bill to be controversial. I am hopeful that these bills will either be eligible for the consent calendar or be included in a committee omnibus bill so I can use my priority bill designation on another proposal.

I will keep you informed each week regarding upcoming bill hearings of interest. I would also invite you to join my weekly call with the North Platte Area Chamber and Development Corporation. Please contact the Chamber directly at 308-532-4966 to get the updated times and call-in information.

Although things are somewhat slow at this point, that will soon change. From January 30 to February 10, we will hold bill hearings in the morning and afternoon, after which we will begin floor debate in earnest. I remain focused on delivering results for District 42 and look forward to a busy session!

As legislation and other issues arise, please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!

It has been a busy week in the Legislature. The Unicameral kicked off the week by picking up with the debate regarding approving the Committee on Committees report, which makes committee membership assignments. The tone of the debate is an early indication of the strong divisiveness that we are seeing in the body. Although the Legislature is nonpartisan, there will be a clear divide between the 32 conservatives and 17 progressives on controversial issues. And, since it takes 33 votes to invoke cloture (stop a filibuster), controversial bills may have a hard time getting to a vote. A motion for cloture is only accepted after full and fair debate, which is eight hours on the first round of debate (general file). The more filibusters we have, the slower things get done. This makes it important to get any relatively non-controversial bills out of committee and on the floor early.

Once the Committee on Committees report was approved, the committees could begin their business. I am happy to report that I will be serving on two standing committees: the Banking, Commerce, and Insurance Committee and the Natural Resources Committee. I was also appointed to the Performance Audit Special Committee and the Statewide Tourism And Recreational Water Access and Resource Sustainability (STAR WARS) Special Committee. I was very honored to be selected by my fellow committee members as Vice Chair of both the Banking, Commerce, and Insurance Committee and the Performance Audit Special Committee. I look forward to working on bills related to economic development, health insurance, water, energy, tourism, and state agency oversight through my service on these committees.

The Legislature also continued with bill introduction this week. To date, over 460 bills have been introduced and two days remain to introduce legislation. If history is any indication, we could see 200-300 bills introduced on Day 9 and Day 10. In addition to statutory changes, over a dozen constitutional amendments have been submitted. If passed by the Legislature, a constitutional amendment would then appear on a ballot to be considered by the voters. Remember, all bills will get a public hearing and committees will start holding bill hearings on January 23.

Senators and committees have until March 14 to select their priority bills. Each Senator gets one priority and each committee two priorities. Speaker Arch will also get to designate up to 25 bills as Speaker priorities. Because there is such a limited number of priority bills, it is important not to waste your designation by prioritizing a bill that will stall in committee. Furthermore, it is sometimes possible to attach a bill to another priority bill through an amendment without having to designate the bill individually as a priority. I will be looking for paths to a priority designation for all of my legislation and need your help in supporting my initiatives.

I have introduced ten bills and co-sponsored another 14. I have tried to focus my efforts on issues that will have a direct impact on District 42. As promised, the first bill that I introduced was LB31 which is the two-person train crew bill. LB31 will face opposition from the railroads, so I encourage those who support this bill to provide oral testimony or submit written comments once a hearing is scheduled by the Transportation and Telecommunications Committee. I am already reaching out to the committee members to encourage them to advance this important bill to the full Legislature so we can debate the merits of this important legislation.

Although bill introduction will not end until Wednesday, January 18, any bill language sent to the bill drafters next week will likely not have enough time to be put into final bill form. However, please continue to reach out with specific issues you would like reviewed. It may be possible to get these issues addressed by amending an introduced bill, or it may be our first great idea for 2024.

In this column, I will share important updates on my legislation and other bills of interest. The public is also invited to join my weekly call with the North Platte Area Chamber of Commerce and Development, where I will answer questions and provide live updates. If you are interested in joining this call, please contact the Chamber at (308) 532-4966. The first call will be held at 8:30 a.m. on Thursday, January 19. Subsequent call times may change as participants settle on the best day to meet. If others would like to schedule a regular forum in your area, please contact me to discuss times. It is important to me to hear from my constituents so I can better work on your behalf.

I look forward to a very busy session. As legislation and issues arise, please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!

The first week of the Legislature is under our belt and we got a good taste of how the session might go. After all the ceremonial activities, we spent the first day approving temporary rules and electing the new leadership and committee chairs.

I was happy to be elected by my peers in the third caucus to serve on the Committee on Committees. This committee consists of 13 members, one chairperson and four from each of the three caucuses (generally aligning with Nebraska’s three Congressional Districts). The role of the Committee on Committees is to determine committee membership for the next two years. This can be a complicated process because committees meet on different days of the week and each Senator must have a committee assignment for each day of the week. In addition, there needs to be representation from each caucus on all of the committees.

As a general rule, committee assignments are based on committee preferences submitted by each Senator, seniority, expertise, and membership balance among the caucuses. Although the Legislature is a non-partisan body, there has always been a tendency to balance committees based on the conservative or liberal leanings of the individual committee members for key committees. Caucuses add members on a rotating basis as the Committee on Committees does its work. For example, if the chair of a committee is from the third caucus, the first caucus will have the first selection for the next member of that committee. This is followed by the second and the third caucuses, until the committee is filled. After this process is completed, the entire Committee on Committees votes to release a preliminary report. The next day, the Committee meets again to make any final adjustments based on trades that the members of the Legislature may have requested since the initial report was released. Political jockeying can make this process controversial; in the end, however, the Committee must approve any changes by a majority vote.

This year, the final report from the Committee on Committees was released for approval by the Unicameral on Friday. The report cannot be amended on the floor, so the Unicameral can either vote to accept the report or return it to the Committee for changes. This session, there was a motion to return the report to the Committee because some Senators were unhappy with the Committee’s handling of change requests and the Legislature adjourned on Friday with this issue still unresolved.

The Legislature will take the final Committee on Committee report back up on Monday. I expect the full body to ultimately approve the report. Once finalized, committee chairs can set up initial meetings of their committees to select vice-chairs and prepare for upcoming hearings.

In addition to leadership and committee selection, Senators and Committees begin introducing the bills that will be considered in 2023. In the first week, 145 bills and seven constitutional amendments were filed. I introduced five bills, including one to require two-person train crews, and have at least a couple more to file. Senators and Committees can continue to introduce bills through Day 10, which is scheduled to fall on January 18. As bills are introduced, the Reference Committee meets to assign bills to the standing committee with jurisdiction over the topic. From there, committee chairs will schedule hearings for all of the bills referred to their committee sometime between January 23 and March 24.

Although every bill gets a committee hearing, not every bill will be voted on by a committee, much less advance to the floor for consideration by the full Legislature. If you are interested in a specific bill, I encourage you to participate in the hearing process by testifying, submitting written comments for the record, or watching the bill’s hearing. All floor debates and committee hearings are live-streamed by Nebraska Public Media.

After a busy week, Julie and I had the privilege of attending the Inaugural Ball for Governor Jim Pillen. I look forward to working with Governor Pillen and his staff as we move forward together to do the people’s work. The theme of the Governor’s address was Day by Day, based on a message that he heard from Coach Tom Osborne when Governor Pillen was a member of the Husker football team. I would like to join Governor Pillen in thanking Governor Pete Ricketts for all of his work done on behalf of the State of Nebraska, particularly through the COVID-19 pandemic. He did an outstanding job of leading our state over the past eight years and left the state in a great fiscal position. I wish him the best in his future endeavors.

In closing, I want to acknowledge all the ranchers who have been dealing with the winter storms in recent weeks. My prayers are with you and your operations; please know I remain available to help facilitate any additional assistance you may need to get access to feed and care for your cattle. Both Governor Ricketts and Governor Pillen have been helpful in mobilizing additional state resources to clear county roads. Governor Pillen has assured me that they will continue to have your backs.

I look forward to hearing from constituents about the bills we will be working on this year. Please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729 with your opinions and stories.

The 108^th biennium of the Nebraska Legislature begins at 10:00 a.m. on Wednesday, January 4, 2023. The first item of business will be to appoint temporary presiding officers (the Clerk and Sergeant at Arms), then escort the Chief Justice in to swear in all the newly elected members of the Legislature. We will then adopt “temporary rules” which will be used to conduct the first day’s business and typically mirror the rules adopted by the previous legislature.

Once sworn in, the Legislature will elect a new Clerk of the Legislature, as Patrick J. O’Donnell is retiring, as well as the Assistant Clerks and the Chief Sergeant at Arms. This will be followed by the election of the new Speaker of the Legislature and members of the Executive Board. Next, Chairs of the Unicameral’s 14 Standing Committee Chairs and additional Special and Select Committee Chairs will be elected. Senators will also have the opportunity to introduce bills on Day 1.

The Committee on Committees cannot meet to work out which Senators will serve on which committees until the Chairs of the Committees have been selected. In addition, office assignments depend on Chair selections, so there will be much reshuffling during the first few days of the Legislative Session.

Senators must have all their bills introduced by Day 10, which is scheduled to fall on January 18. As bills are introduced, they are referred to the committee of jurisdiction by the Referencing Committee, which consists of the members of the Executive Board. All bills will have a public hearing at which the public, stakeholders, and industry can weigh in on the merits of the bill. Although every bill gets a hearing, not every bill gets a vote. Ultimately, the chair determines what bills the committee votes on, and the members of the committee decide whether the bill advances to the full legislature for consideration. The chair also determines which bills receive the committee’s two priority designations. Although most bills advance from a committee before they are debated on the floor, it is possible for the body to “pull” a bill from a committee with 30 votes. This mechanism is used rarely, and usually for controversial legislation stalled in committee.

If a bill is voted out of committee, the bill advances for debate by the whole legislature. Those with a priority designation, either from an individual Senator, a committee, or the Speaker, move to the top of the queue. However, the Speaker of the Legislature ultimately sets the agenda for each day and often schedules bills out of order to better manage the body’s schedule. A bill must then pass three rounds of debate (General File, Select File, and Final Reading) before it becomes law. It takes 25 votes (a majority) to advance a bill, but 33 votes to end a filibuster. Any bills that fail to advance during this coming 90-day session will be carried over to next year’s 60-day session.

Currently, I plan to introduce six bills, including a bill to require railroads to maintain a two-person crew while moving freight along the rail system. Although I am a business person who believes in the free market and limited government interference, I believe this policy is necessary to ensure public and worker safety. The railroads want to experiment with stationary conductors working from their homes along the track, but this plan fails to account for problems that could arise if the engineer has a health issue along the route. It also will not provide a short enough response time if there is a time-sensitive emergency; for example, being the first responder at an accident or taking care of the duties involved in “breaking” a train to unblock a rail crossing should the train need to stop for an extended period of time.

Blocked crossings create public safety issues when first responders and the general public cannot access one, two, or three crossings at the same time. Additionally, there have been multiple reports of children dragging their bicycles under the train to get through. Any sudden movement of the train at that point could result in disaster. In the end, safety should be a priority and should not and cannot be compromised. Every regulated business (banks, hospitals, nursing homes, power plants, packing plants, manufacturers, and many others) are required to maintain safety protocols for their workers and customers. The railroads should be no exception.

I will spend the next few weeks updating you on bills of interest and will look forward to your input. I also encourage you to be engaged in the committee review process by testifying or submitting comments in support or opposition to legislation.

It is an honor to serve as your District 42 State Senator. Please feel free to reach out to my office at 402-471-2729 or by email at mjacobson@leg.ne.gov. My door is always open!

As the Legislature readies for the 108^th biennium, many have their wish list of goals completed for the coming two years. As a rural Senator, I have heard loud and clear the call to further reduce property taxes. I hear it from farmers, I hear it from seniors, and I hear it from businesses. I have also read articles suggesting that the Legislature needs to “find the courage” to reduce property taxes. So, let me be clear; I hear you!

The first step to tax reform is understanding what we are already doing, including how property taxes are assessed, who assesses them, and what role the Legislature can and cannot play in reducing property taxes.

The State of Nebraska does not assess or collect a property tax. Property taxes are ONLY assessed by LOCAL political subdivisions. School districts account for the largest portion of the property tax requests and, generally, for more than 50% of the property tax bill. Although conservative spending is important for reducing taxes, many local school boards will tell you they face many challenges when crafting a responsible budget.

A huge portion of school district budgets are consumed by payroll costs to hire the teachers and administrators. Nebraska’s teacher shortage means sometimes districts have no choice but to enhance teacher salaries and benefits to fill the void. In addition, salaries must meet certain minimums to avoid an appeal to the Court of Industrial Relations and there are multiple Federal and State mandates that public schools also must meet. Of course, the cost of maintaining facilities, buses, and activities are also necessary components of the budget.

So, what can the Legislature do to help? The best thing we can do is work hand-in-hand with local governments, educational institutions, and industries to grow Nebraska’s economy. That includes ensuring we have a skilled workforce, creating a climate to start and grow small businesses, and expanding opportunities to attract and expand major corporations.

As we work to grow our state, there are other measures we can also take to ease the burden on property tax payers. First, the Legislature can fix the TEEOSA formula to provide more state aid to rural “equalized” school districts. This of course will mean either taking aid from urban schools, which would require the support from urban senators, or create a mechanism to provide additional aid. If we do the latter, where will the funding come from? If that answer is to raise the sales tax rate or reduce sales tax exemptions, then how much do we increase the sales tax or what exemptions do we eliminate? How do th​​ose new taxes impact seniors and farmers? We could also raise income taxes, but since our income tax rates are by far the highest of any state in the region, this is clearly a nonstarter if you are planning to get 33 votes to force a vote.

As an alternative to increasing state funding for schools, the Legislature could reduce state mandates such as requiring certain course work to be offered outside of core subjects like reading, writing, math, and science. In many cases, additional mandated courses require more teachers to be hired even when they are already in short supply or not available at all.

Finally, we could try to rebalance how we tax real estate. Ideas could include: reducing the rate at which agricultural land is taxed (currently 75% of market value). We could also look at taxing all real estate based on income produced from the land instead of based on its value. Ranchers are especially feeling the burden of property taxes this year because rainfall is short and they cannot maintain normal stocking rates. Additionally, dryland farmers in years like this literally produce no crop, but continue to pay property taxes as if the land was producing.

No matter what the plan,​​ it must be able to elicit wide support. Although it takes 25 votes to pass a bill, 33 votes are required to end a filibuster. If history is any indication, we can expect any changes to sales tax rates, school funding, or property taxes to attract a filibuster. This will mean taking strategic steps to create a plan and rally votes from a div​​erse group of senators.

Fortunately, we know it can be done. The Legislature’s passage of LB​873​ in 2022 made huge strides in reducing the net tax liability for all Nebraskans. Not only did we approve the full phase-out of the state tax on Social Security, but the Legislature also approved a reduction in the top income tax rate for individuals and corporations over the next few years. Most importantly, the Legislature approved an income tax rebate based on the amount of property taxes paid toward the relevant public school and community college. In 2022, property tax payers could receive a 30% rebate, up from 25% in 2021. The rebate must be claimed when you file your income tax paperwork. If you do not file an income tax return, you can go to the Nebraska Department of Revenue’s and download a form to claim the rebate.

In the end, I will do all I can to accomplish further reductions in your tax liability. It has nothing to do with “courage” but everything to do with “perseverance” and strategy. If you have any questions or comments regarding property taxes or the income tax rebate, please feel free to reach out to me at 402-471-2729, or email me at mjacobson@leg.ne.gov. My door is always open!

​You may have heard of the term “ESG” and wondered what does it mean? That answer is important for everyone to know, as we see this movement gaining steam. ESG is the acronym for Environmental, Social, and Governance. Certain investors and large, publicly-traded financial institutions are using ESG scores or ratings to determine whether a corporation is “socially responsible” and therefore whether they are worthy of investing in or offering services to.

The key focus of ES​G​ is to advance the United Nations Sustainable Development Goals, which include climate action, clean energy, gender equality, and responsible consumption and production. Although we all can agree that we want to protect the environment, stop discrimination, and encourage diversity ESG goes well beyond simply recommending that companies follow these principle​s. Instead, ESG is being used to force corporate policy changes, even if it is at the expense of an investment or financial firm’s fiduciary duty to its clients.

ESG suggests that two princip​le​s should exist in corporate America: (1) Corporate officers and directors should advance the interests of all corporate “stakeholders,” not just “shareholders,” and (2) Corporate performance should be evaluated by a “new measure of shared value creation” that explicitly includes ESG​​ goals in addition to traditional financial metrics. But who decides which ESG factors should be imposed? How do we know whether a corporation is complying? Should corporations prioritize the interests of society over the interests of its shareholders?

When calculating the scores, the “E” asks how corporations interact with the environment. Specific criteria include corporate impact on climate change, greenhouse gas emission air pollution, and water usage. Often, companies are expected to have set goals in line with the 2015 Paris Agreement for climate action. The “S” focuses on social issues such as labor standards, human rights, social dialogue, pay equity, workplace diversity, access to health care, and racial justice, to name a few. The “G” refers to how the corporation is internally governed and how its leadership acts. Factors include corporate fraud, anti-corruption efforts, board diversity, and potential illegal activity.

How are you feeling at this point about the likely scores generated by midwest production agriculture, oil and gas producers, and energy networks that include coal and natural gas assets?

It is important to know that the ESG movement is creating several legal concerns. First, ESG investing presents legal issues for fiduciaries responsible for investing other people’s money. For example, imagine an investment firm is responsible for investing retirement or pension accounts. The firm’s chief responsibility is to provide the best return for the individuals who will rely on these accounts for their future income. However, if the firm has adopted an ESG policy, the investment portfolio for the accounts may not include the most profitable companies because the companies do not align with the firm’s ESG standards. That means retirees could lose out because the investment firm is prioritizing advancing an agenda over its responsibility to its account holders.

In addition, concerted ESG-based collusion and coercion against disfavored businesses raises serious legal questions under federal and state antitrust laws. Finally, ESG threatens to change the workplace in ways that might cause employees to violate federal and state employment laws.​

It is important to remember that the Nebraska Investment Council oversees the investment activity of more than $23 billion in state funds, including the assets of the retirement systems administered by the Public Employees Retirement Board. The Investment Council’s voting members must “discharge their duties with respect to the assets of the retirement system solely in the interests of the members and beneficiaries of the retirement system and for the exclusive purposes of (1) providing benefits to members, and members’ beneficiaries, and (2) defraying reasonable expenses incurred within the limitations and according to the powers, duties, and purposes prescribed by law.” The Investment Council recognizes that the benefits it seeks are financial in nature, identifying its “mission” as “delivering investment management services to provide direct financial benefit exclusively to the owners of the funds entrusted to the Council.

As the ESG movement continues, you can be assured that the Nebraska Legislature will be watching closely. If necessary, the Unicameral will act to prevent businesses and individuals in Nebraska from discrimination and to protect state employee pension funds.

If you have any questions or comments regarding ESG or ideas for legislation​​, please feel free to reach out to me at 402-471-2729, or email me at mjacobson@leg.ne.gov. My door is always open!

I mentioned last week that I will be working with Senator Brewer and all the interested parties to determine the future of the former State 4-H Camp that was destroyed by the Bovee Fire. Senator Brewer and I are very focused on getting this facility replaced, either on the old site or adjacent to the old site. Any reconstruction would be built outside of the primary fire risk area. This week, I will be meeting with the head of the Nebraska Extension. My goal is to determine the extent to which the University of Nebraska and the 4-H Foundation are committed to rebuilding the facility and offer our help in getting the necessary funding and support.

My fascination for this area started when I attended the 4-H camp as a young boy. Like many raised in other parts of the state, it was my first experience seeing the Nebraska Sandhills and seeing the Nebraska National Forest near Halsey which has only recently been surpassed as the largest man-made forest in the world. The 4-H camp has played host to countless Nebraska residents over the years. In addition to hosting the camps for the 4-H program, the State 4-H Camp has also played host to the Rotary Youth Leadership Awards (RYLA) Camp, wedding receptions, family reunions, and corporate, artistic, and nature retreats.

The uniqueness of the Sandhills and the Nebraska National Forest should not remain a secret. And I believe we can do more to draw in-state and out-of-state residents to District 42 if we are willing to take some risks. Just look at what has occurred with the Sand Hills and Dismal River Club golf courses. When the founders of the Sand Hills golf course chose a location off the beaten path to build a golf course where no one had gone before, many wondered if they were crazy. Yet, the first year it was opened it was rated as one of the best in the world and memberships were sold out and a waiting list continues today. All too often we don’t dream big enough.

The trick to a successful venture is to have a destination, atmosphere, and easy access. We already know the Sandhills and the Nebraska National Forest are two of our state’s greatest treasures. If we rebuild with the right services and design, we can continue to grow the number of visitors to the Halsey area. Highways 2, 83, and 97 all provide good driving access to the area. In addition, the Thedford airport has a newly constructed concrete runway that is ideal for landing many corporate aircraft as well as smaller single-engine piston aircraft. This airport could be a great asset for those coming to a new and improved conference facility located less than 20 miles away near Halsey. If the Lied Lodge can be successful at Nebraska City, why can’t a facility in the middle of the Nebraska Sandhills and next to a 90,000-acre National Forest not also be a draw?

During my time as your District 42 State Senator, I have been clear that I intend to bring more resources to our area. It begins with not allowing existing facilities to leave and get relocated elsewhere in the eastern part of the state. Along the campaign trail, I was asked what I will do as your State Senator to bring economic growth to all areas of the District and not just North Platte. This is one example of how I believe we can grow our area. Amidst the tragedy of the Bovee Fire, we have an opportunity to not only rebuild, but rebuild bigger and better than before.

I am committed to working with Senator Brewer and anyone wanting to join the fight to make reconstruction of the State 4-H Camp a reality. If you are interested in helping with this effort, or have ideas for 2023 legislation, please reach out to me at mjacobson@leg.ne.gov or 402-471-2729 with your ideas. My door is always open!