The
count down has begun as there are only 7 working days left in the 100th
Legislature, Second Session. Once again this week lawmakers worked well
into the evening hours in an effort to complete their work as they are
scheduled to adjourn sine die on April 17, 2008.
Senators advanced a bill (LB 1116),
by a 44-3 vote, to move the State Fair to Grand Island this week after
nearly 7 hours of debate. The Legislature also spent several hours
debating LB 1174, the
I-300 replacement, before it was bracketed (left to die politely) till
April 17th.
Action of interest was taken on the following bills:
LB 959,
the budget bill was signed by Governor Dave Heineman with a line item
veto in that he redlined the increase to Department of Roads in the
amount of $14.5 million for increases in health care cost and salaries.
A motion to over ride the Governors
veto appears on the agenda for Monday April 7, 2008.
LB 1004
amends sections 77-2753 and 77-2790, to change the assumed minimum
withholding amount from 3 percent of the gross wages minus qualified
deductions to 1˝ percent. Under current law, withholding from employees
is to be at least this minimum amount unless the employee provides
satisfactory evidence that a lower amount is justified. This applies to
employers employing 25 or more people.
LB 895,
the Nebraska Super Advantage Act, was advanced to Final Reading on
Thursday. The bill which amends the 2005 Nebraska a Advantage Act
provides incentives to business that create jobs paying at least 150
percent of the state’s average wage, or 200 percent of the average wage
in the county where the business is located, whichever is greater. The
program would sunset in 2015. Qualifiers of the
Super
Advantage program could receive a 10 percent jobs credit and a 15
percent investment credit.
Companies would qualify for the tax credits by investing at least $10
million and creating 75 high-wage jobs or investing $100 million and
creating at least 50 high-wage jobs.
LB 846 -
AM 2602 was offered by Senator Phil Erdmann but
lost 17 yes and 25 no. The amendment basically would have taken out of
the cash reserve the road fund dollars in the budget bill ($14.5 million
for salaries and health care increased cost at the NE Dept of Roads) and
the amount appropriated in LB 846A ($16.2 for 08-09) This is the
appropriation accompanying bill, that appropriates (I.e. gives the
authority to spend) the funds generated in LB 846. Without an
appropriation (LB 846A) the mechanism of LB 846 (5% wholesale tax) would
raise more funds but if not appropriated would result in variable mft
decreasing. Senator Erdman offered this amendment so the NE Dept of Roads would have more dollars to spend but
without any increase in the motor fuel tax rate.
LB 846 (26 yes, 14 No, 8 present but not voting) & 846A
(25 yes, 17 No, 6 present but not voting) both advanced to Final Reading.
There is talk that Governor Heineman may veto either 846 or 846A and
possibly both, as he is against raising taxes on motor fuel at a time
when gas prices are so high, and having a significant impact on the
citizens of the state already.
LB 1001,
LB 1175 (amended into LB
1001) would create a new 5 percent withholding requirement for any
contractor making payments of more than $600 for construction services
to a contractor or a person that is not an employee. This requirement
would not apply if the payee shows that any income that is earned would
not be subject to income tax because of a treaty obligation of the
United States, or that the payor determines that the payee is a
contractor that is registered under the Contractor Registration Act –
which was passed earlier this year under LB204 by Senator John
Synowiecki of Omaha. Under LB1001, the state Revenue Department would
create a database of licensed contractors, which would be accessible on
the department’s Web site. The bill was advanced to Final Reading on
Tuesday.
LB 1082
would provide workers compensation coverage for mental injuries that
involved no physical injury to victims of violent criminal acts. A
recent example of this would be those employees at Von Marr that were
not physically injured but were traumatized by the recent shooting
incident. This bill remains on General File but appears, once again, on
Monday’s agenda.
LB 1016
is a bill that attempts to level the playing field in relation to
improperly classifying construction workers as independent contractors
when in fact they are not. Senator Lathrop, the bills sponsor, is
attempting to level the playing field for those in the construction
industry that are paying the proper taxes on those who are actually
employees of theirs and not really outside contractors.
The
Act would prohibit employers from misclassifying employees as
independent contractors. Individuals who have been misclassified would
have a cause of action in District Court to Recovery. Recovery would
include the following amounts that should have been paid if the employee
had been properly classified: the amount of combined taxes, state income
taxes, the difference in pay or $100 for each week that the employee
was misclassified (whichever is greater), and attorney’s fees and
costs. In the case of unlawful retaliation, all legal and equitable
relief is available. It appears again on the agenda for Monday.
