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Legislative Issues
2007 Legislative Wrap-up
By Pete McClymont
The 100th Nebraska legislative session began with much anticipation for many reasons – 22 freshmen senators, a governor elected after a highly contested primary, probable tax cuts due to a healthy state economy, much needed water management and many more.
With all those reasons in mind, Nebraska Cattlemen was involved long before the session began on Jan. 3 with the swearing in of those 22 new senators and the governor.
In early summer 2006, NC interviewed all winners of the contested May primaries. In an attempt to establish a relationship with the candidates, NC established policy and made it known that Nebraska Cattlemen was a credible association willing to work with any elected official to further the interests of the beef industry and the state of Nebraska. NC met with the vast majority of the final candidates long before the Nov. 7 general election. Michael Kelsey, NC executive vice president, and Duane Gangwish, vice president of environmental issues, allowed significant time for the candidate interview process.
As a result, NC was up and running with the senators, not playing catch-up when the session had already begun. Newly elected Sen. Steve Lathrop from Omaha would always greet NC staff at the Capitol with, “How are the Cattlemen today? Are we selling a lot of beef?”
As is customary, NC leadership made the commitment to the legislative review process, giving the much-needed direction to staff on individual bills referencing NC policy. On Jan. 24 in Lincoln, the NC Board of Directors convened as the NC Legislative Committee to review over 700 bills. President-Elect Larry Smith, chairman of the NC Legislative Committee, did a terrific job of keeping the committee on point and maintaining constructive discussion in what can be a lengthy process. Committee chairmen and vice chairmen also did an excellent job thoroughly analyzing bills crafted in legal language that can be difficult to comprehend.
Out of the daylong process, the NC Legislative Committee condensed 700 bills down to 70 bills with either support or opposition. Another 50 bills were designated to be monitored in case amendments were made that could affect how the beef industry or NC policy is carried out.
The NC Legislative Committee established four priority bills for staff to achieve. The first priority was the elimination of the state estate tax, which exempts the first $1 million of an estate, but imposes a 16 percent tax on the remainder. The second priority was for greater property tax relief. Property tax relief has been and will always be an NC priority because of the unfair and over-proportioned tax burden it places on the state’s cattle producers. The third priority was LB 677, which addressed late fees for livestock operation inspection. The fourth priority was LB 550, which would allow the sale of prescription drugs to animal owners.
After attending and testifying at numerous Unicameral committee hearings, meeting with senators and their staff, conferring with other affected trade groups and individuals, NC efforts are summarized with the conclusion of the 100th session of the Nebraska legislature on May 31.
After a cooperative effort by many trade groups, the state estate tax died a decisive death with LB 367, the total tax reduction package. With escalating land values and livestock trading at a higher plateau than four years ago, it wouldn’t take what was once a significant estate to approach $2 million dollars. Furthermore, the estate tax – whether federal or state – is double taxation, especially within agriculture, which has traditionally been asset rich and cash poor. Now, the next generation of Nebraska agriculture families doesn’t have the heavy burden of managing around the state estate tax. This is simply a huge win for Nebraska Cattlemen members.
Property tax was much talked about, especially by recently elected senators claiming that property tax reduction was the single biggest issue they heard on the campaign trail. With the public calling for lower property taxes, a good reduction was ratified within LB 367. More relief was sought, but 8 cents for every $100 valuation was passed that will ultimately be seen on a property tax payer’s statement as a credit.
LB 677 was another tremendous win for the beef industry. Nebraska Cattlemen penned the bill, which Sen. Annette Dubas from Fullerton introduced. Throughout the process, LB 677 was well received due to the efforts of leadership, staff and other Senators who saw the need to rectify unfair late fees assessed to producers who previously had been off the scope of regulation. One note of interest, LB 677 received no opposing votes as the bill moved all the way to the governor’s desk. This bill will save late fees ranging from $4,500 to $45,000, depending on the size of the operation.
The final priority bill from the NC Legislative Committee was LB 550, which would rectify language in the sale of prescription drugs to livestock operators. In working through the process, it was determined that there was a need to change two state statutes. In order to address all facets of this issue, the Unicameral will need to revisit it next year to correctly amend these statutes.
The legislative year in review shows a healthy batting average of .750. Major victories included full repeal of the state estate tax and passage of LB 677, reducing the potential of high, if not completely unfair late fees in applying for request of inspection of a ranching operation. These are examples of why members pay their hard-earned money to NC for results. Hopefully, you’ll view NC as an excellent return on your investment. Y Pete McClymont is NC’s vice president of Legal Affairs.
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