ARPA funds dominated 107th session

The final gavel and the adjournment of the second session of the 107th Nebraska Legislature occurred last Wednesday, April 20. The last day of a session is referred to as “Sine Die,” Latin for “without a day.” This was a sixty-day session, but it was packed full of issues, chief among them the allocation of the federal ARPA funds.

As I’ve done in previous years, I would like to update you on the bills that I introduced or prioritized that made it across the finish line this session and were passed into law.

“Rural Health Education Debt Repayment” Many people in District 38 recognize the challenge of recruiting health care professionals to the region. LB 1269 (amended into LB 1014) and LB 1007 will fund and modify an existing program, the “Rural Health Systems and Professional Incentive Act” by allocating $5 million dollars from federal ARPA funds to incentivize health care professionals (e.g., physicians, nurse practitioners, dentists, pharmacists, physical therapists, psychologists, and other mental health practitioners) to practice in rural Nebraska. This program provides funds for student loan repayment to health professionals who commit to practice in rural health shortage areas for 3-4 years. (If they break this commitment, they are required to pay back the funds they borrowed.) LB 1007 eliminated the local match requirement for the time period that these federal funds are used. There is a lot of interest in this program and I hope that it draws new healthcare professionals into District 38.

“Living Donor Protection Bill” There is a great need for organs to be donated. In Nebraska alone, last year there were over 300 people waiting for an organ transplant. Kidneys (and other organs) may be donated by living individuals in good health, but the National Kidney Foundation reports that living donors have historically faced discrimination in the form of difficulty getting insurance, denial of coverage, or higher premiums. LB 955 (amended into LB 863) removes barriers to organ donations by living individuals by prohibiting insurance companies from denying or limiting life, disability and long-term care insurance to such living donors or by imposing higher insurance premiums on such individuals based solely on their status as a living donor.

“Nebraska Advantage Rural Development Act” The goal of this legislation is to promote investment in Nebraska agriculture (through livestock modernization or expansion) and to encourage businesses to locate in rural Nebraska. LB 1261 did this by raising the maximum amount of credits allowed for approved projects each calendar year ($1 million to $10 million) and increasing the credit cap for an approved application (10% of the investment not to exceed $150,000 to 10% of the investment not to exceed $500,000 per application). It also extends the sunset date an additional five years. LB 1261 also included Senator Joni Albrecht’s LB 596, which creates the Nebraska Higher Blend Tax Credit Act.

The language of this bill establishes incentives for petroleum retailers to increase higher ethanol-blended gasoline sales from the current E10 blend to blends between E15 and E85. The incentives would be 5 cents per E15 gallon sold and 8 cents per gallon sold for E25 and higher blends. The total amount of incentives available is capped and the incentives sunset after 5 years. In a time of extreme inflation, pain at the pump, and uncertainty around the globe, this Act brings lower prices at the gas station to hardworking Nebraska families, increases demand for our corn growers, while also improving air quality and helping America establish its energy independence.

“Tax Package” – This year I designated Senator Tom Briese’s LB 723 as my priority bill. This bill protected property tax relief for Nebraskans under the refundable income tax credit created in LB 1107 (2020) for a portion of property taxes paid for K-12 education, and ensures that this credit will continue to be funded at a larger level. LB 723 was amended into LB 873 which also included:

-- Individual income tax credit for a portion of property taxes paid to community colleges.

-- A phase out of state income taxation of Social Security income in four annual steps.

-- The top corporate income tax rate would also be cut to attract new businesses to Nebraska.

-- The top individual income tax rate will gradually be cut in several steps.

-- While I am generally pleased with a lot of what was accomplished during this session (especially the tax cuts), the process was at times frustrating with the hours and hours of filibustering that prevented a lot of good ideas from being fairly debated and advanced. I very much respect the rules of the legislature, but at times a minority of senators can dictate whether a bill can be presented to the full legislature, and if it is, whether it can receive a reasonable debate.

Having said that, I am optimistic about the 2023 session. With term limits, we do lose several years’ worth of legislative experience.

But there are also good indications that the face of the legislature will change to a more conservative body. Bills that deal with abortion, the 2nd Amendment, religious freedom, and tax reform should be able to see the light of day and have a fair and honest hearing.

I welcome any comments, questions, or ideas you may have on this or any other issue. Please feel free to email me at dmurman@leg.ne.gov or call my office at 402-471-2732.