Sen. Ken Schilz
District 47

Contested Issues

March 25th, 2011

We have just come off of a week that had some highly contested and hotly debated issues.  In the beginning of the week, we debated LB698 introduced by Senator Christensen.  LB698 would change labeling requirements for alcohol-blended fuel.  It eliminates the current provision that requires pump labeling when dispensing product containing 1% or more ethanol by volume.  The Agriculture Committee offered an amendment, AM650, which would retain the labeling requirement for alcohol-gasoline blends but only when the alcohol content exceeds 11% of product by volume.  I have received much correspondence in opposition to removing labeling alcohol-blended fuel.  During the debate on General File, it was brought forward that people want to know what is in their gasoline.  I did vote to move the bill to Select File, where we will get to see an amendment that is being worked on at this time.  I am waiting to see what the amendment will do but I am inclined to vote for not changing the labeling requirements at this time.

On Wednesday, LB105 was debated on Select File.  LB105 is a bill I introduced, which would require anyone born after December 31, 1985 to successfully complete a boating safety course and acquire a valid boating certificate to operate a motorboat or personal watercraft.  There was a bit of opposition to this on the floor in the floor of an amendment, AM818 that would have changed the date from 1985 to 1990.  A floor amendment was also offered FA10, which would make the age requirement the same as the age-of-majority.  This floor amendment did not hold up under scrutiny and was withdrawn.  I introduced an amendment, AM763, which is clean-up language that was suggested to us while the bill was in Enrollment and Review (E&R).  Enrollment and Review is where a bill goes after being passed on General File and Select file to make sure it is fluid within the current statute, and to clean up and clarify language.  This amendment passed, and the bill advanced to Final Reading by a majority voice vote.

Thursday and Friday the Legislature debated LB84, introduced by Senator Fischer.  LB84 creates the State Highway Capital Improvement Fund and directs a half-cent of existing state sales tax to the Fund to be used for construction of high-priority highway projects. It is estimated that a half-cent of sales tax generates approximately $125 million per year.

The revenue would be split between the state (83%) and cities and counties (17%). Local governments would allot their portion as provided through the current Highway allocation formula and would be required to use the revenue for road and street purposes. The diversion of the existing sales tax would begin in 2013 and continue for twenty years until 2033. The Department of Roads, in conjunction with the State Highway Commission, would be authorized to issue up to $500 million in highway bonds to accelerate construction of high priority, high-dollar projects. Any bonds would be required to issue by 2018 and paid off within twenty years (2038). Debt service would be capped at $25 million per year paid off through the Capital Improvement Fund. The bill would require at least $15 million per year in the Fund be used for the construction of the expressway system as determined by the department.

There was quite a bit of opposition and heated debate on this issue for the full eight hours it was debated.  Multiple amendments were introduced to filibuster the bill, as well as a motion to bracket the bill. I support LB84 because investing in our infrastructure is critical for growth and economic development, which is a great need in western Nebraska.

Thank you for taking interest in your Nebraska Legislature.  As always, feel free to contact me by phone: (402) 471-2616 (office), by mail at: State Capitol, District 47, PO Box 94604, Lincoln, NE 68509, or by email at kschilz@leg.ne.gov where you can also ask to be added to my personal email list for updates.

 

End of Committee Hearings, Full Day Debate Begins

March 17th, 2011

This past week marks the end of Committee hearings.  Starting Tuesday, March 22, we will begin all day debate.  I have introduced quite a few bills this year, many in response to concerned constituents, and I believe we could see as many as eight of these bills get passed this year.

LB 105, which I have mentioned previously, would change restrictions on the operation of motorboats and personal watercraft.  This bill passed the first round of debate and is currently on Select File to be debated a second time.  LB 106 is a bill that would expand existing county sales tax so it can be used for transportation and infrastructure.  The Revenue Committee has offered an amendment so that the use of the county local option sales tax will be limited to crime prevention, offender detention, and police services.  Senator Louden prioritized LB 106 as amended, and the bill will be scheduled for debate on General File.  LB 394 would change Dry Bean Commission membership provisions.  This bill has also been amended by the Agriculture Committee so that if a seat remains vacant for more than one year, the Governor can appoint someone to that position.  The other change in the amendment requires 10 petition signatures rather than 25.  LB 394 was voted out of committee as amended and placed on General File.  Since this bill has not been prioritized, there is a chance that we will not debate until next session.  LB 459 would limit the adoption of any law by a political subdivision regarding the ownership of an animal.  This bill was also amended by the Agriculture Committee to clarify the language, and voted on to General File.  LB 684 formalizes the Tourism Division advisory committee, and develops a statewide strategic plan to cultivate and promote tourism in Nebraska.  I offered an amendment, which will become the bill that cleans up and clarifies the language.  It was placed on General file and prioritized by Speaker Flood, so we will debate this bill this session.  LB 687 would provide for the issuance of a veterinarian locum tenens in Nebraska. Locum tenens is a person who temporarily fulfills the duties of another. The bill would allow the department, with recommendation of the board, to issue a veterinarian locum tenens to an individual who holds an active license to practice veterinary medicine and surgery in another state, with equal requirements as Nebraska. A veterinarian locum tenens would be issued for a period not to exceed ninety days in any twelve month period.

The Legislature will be debating priority legislation as we take on full day debate.  A Senator may choose only one priority bill, Committees can choose two priority bills, and the Speaker can designate up to 25 bills for priority status.  Any bill must also have the consent of the principle introducer to be designated as a priority bill.  This allows the principle introducer the first opportunity to designate the bill as a priority bill.  Late April through mid-March we will be debating budget bills, and mid-late March we will start debating redistricting bills.

I would like to take this time to inform you of a great opportunity for our youth.  The Nebraska Agricultural Youth Institute will be held in Lincoln from July 11-15, 2011.  The selection of delegates to the Institute is based on the application form which is available online at www.agr.ne.gov.

Thank you for taking interest in your Nebraska Legislature.  As always, feel free to contact me at my Lincoln office either by phone: (402) 471-2616 (office), by mail at: State Capitol, District 47, PO Box 94604, Lincoln, NE 68509, or by email at kschilz@leg.ne.gov .

Legislative Update

March 15th, 2011

Good  Afternoon,

I wanted to apologize for not getting more Legislative Updates out this year. The number of bills I introduced this year kept me pretty busy.  I now have introduced all of the bills in committee.  I believe we could see as many as 8 of those bills to get passed this year.

This year is my 3rd year in the Legislature.  It has been a great experience and an honor to serve the 47th district in your Legislature.  Every year I am taking on more and more.  I am currently serving as the Vice Chair of the Natural Resources Committee.  This year we are hearing quite a few controversial bills.  Everything from pipelines to water funding bills.

http://nebraskalegislature.gov/bills/view_bill.php?DocumentID=12063

For example,  LB 229 would redirect funds from the Environmental Trust to the Water Resource Cash Fund to help with the states water issues.  Water issues are some of the biggest environmental problems that our state needs to address.  Issues with the Republican basin with their lawsuit with Kansas to the Platte River Recovery Program on the Platte system to maintain licenses for Kingsley Dam and Gerald Gentleman Plant.  As well as to provide certainty to all of the various water users on the Platte System.  Municipalities, Irrigation Districts, Recreation areas could all see impacts if we cannot comply with what we have obligated ourselves to in the program.  The clock is ticking and we will have to find ways to fund all the various water issues.  This would be one avenue for that funding without raising taxes.

I am also very fortunate to have been  appointed  to the Redistricting Committee.  Redistricting encompasses many of the elected positions within the state from Regents,  to congressional districts and ,  of course ,  the Legislative redistricting.  It is my goal and my charge to maintain our western representation so we do not lose seats in western Nebraska.  I think this is possible.  I will do my best to protect Western Nebraska.

Thank you for the opportunity to serve you as your senator.  I am humbled and honored by your support.  If you have any questions or comments please feel free to contact me.

Ken’s Column: Constitutional Amendment and Priority Bill

March 4th, 2011

The constitutional amendment that I introduced, LR 9CA, was heard publicly before the Revenue Committee on Thursday.  I introduced this amendment in response to the trends that are occurring in Nebraska’s agriculture land valuations.  LR 9CA would allow agricultural and horticultural land to be split into separate and distinct classes of property for purposes of taxation, and to provide for different percentages of taxation within those subclasses.  This is also in response to the Interim study on valuations that was held in Scottsbluff and Hyannis as well as constituent concerns from the district.

To be fair to participants within the agricultural community, it is necessary to have a policy framework that allows for different methods of taxing across the sub-classes of agricultural and horticultural land. If that were the case, a logical adjustment would be to have pasture land assessed a somewhat lower percentage of market value than the current percentage (75%) that is standard for all the classes. Until such time there is a constitutional amendment to allow this type of refinement across classes, owners of pasture land will continue to be assessed (and taxed) at rates approaching twice the earnings ratios of their cropland counterparts.

The fiscal impact of LR9CA is not under our purview. However, it is our general observation that this proposed constitutional change would essentially open up the opportunity to level the playing field within the agricultural community itself. Any type of tax transfer from agricultural land to commercial and residential classes would tend to be relatively minor (some shifting of state-aid-to-education flows towards rural school districts where pasture represents high proportions of assessed values).

This year I have chosen LB 389 as my priority bill, introduced by Senator Cornett.  Legislative Bill 389 adopts the Angel Investment Tax Credit Act.  The Act sets forth an application process and related procedures for certification as a “qualified small business” by the Department of Economic Development sets forth an application process and related procedures for certification as a “qualified fund” by the department; and sets forth an application process and related procedures for certification as a “qualified investor” by the department. A $500 application fee is required of a qualified fund and a $250 application fee is required of a qualified investor.  A qualified investor and a qualified fund are eligible for a refundable income tax credit equal to 30 percent of its qualified investment in a qualified small business. Allocation of the credits by the department cannot exceed $3 million in a calendar year for all qualified investors and qualified funds (unallocated credits will not be carried forward to future calendar years). The total maximum amount of credits allocated to a qualified investor for the investor’s cumulative qualified investments and as an investor in a qualified fund is limited to $350,000 for a married couple filing a joint income tax return and $300,000 for all other filers. But the department cannot allocate more than $1 million in credits over all taxable years for making qualified investments in any one qualified small business.

I think this is essential legislation to help Nebraska, both rural and urban communities in attracting the necessary capital to our state to turn the tide and create the economic development that we need to not only grow our economy but to also stem the tide of rural population decline.

I welcome your comments on the issues we are facing.  Please contact me at my Lincoln office either by mail: Sen. Ken Schilz, District 47, P.O. Box 94604, Lincoln, NE 68509-4604; by email: kschilz@leg.ne.gov; or by phone: (402) 471-2616.