LEGISLATIVE UPDATE

The 2008 session of the Nebraska Unicameral has already passed the halfway point. Here is an update on the issues that may have a direct effect on your bottom line.

Statewide Smoking Ban (Support) - This is a complicated and controversial issue. In the past, the position of the Nebraska Restaurant Association has been to oppose any attempt at a statewide smoking ban. However, with the recent success of local smoking bans in Lincoln and Omaha combined with rumors of similar efforts in Grand Island, Kearney and other cities, our legislative committee determined it prudent to support a comprehensive statewide ban so that we don't end up with a “Swiss cheese” situation and unfair competition by creating inconsistent exemptions across the state. The bill passed as a comprehensive statewide ban, was signed by the governor, and will go into effect June 1, 2009.

Remove $100 Gift Card/certificate Limit (Support) - Prior to our successful efforts, unused Nebraska gift cards/certificates over three-years-old became “unclaimed property.” This means the issuer (restaurant) was required by law to send this money to the state treasurer. In 2006, we were successful in exempting gift certificates/gift cards “under $100” with no fees and no expiration date from becoming unclaimed property. Senator Carol Hudkins introduced the original bill, which was successful but got amended with the “under $100” language. LB 668, which removes the $100 limit, passed the legislature in the 2008 session and was signed by the governor. As a result, all gift cards and gift certificates issued by Nebraska businesses will be exempt from becoming unclaimed property if they have no expiration date and no fees.

Storm Water (Oppose) - This issue comes up each year. So far we have been successful in stopping it. Senator Dianna Schimek of Lincoln introduced LB 534. We oppose this effort because if enacted, it would give authority to certain cities, counties and Natural Resource Districts to assess a storm water utility fee based on impervious surface. The bottom line is that anyone with a roof and parking lot would pay a significant fee. Traditionally, storm water control has been funded by property tax, and we believe property tax is the most efficient method. When calculated, the fee to businesses could be more than double the potential addition to their property tax. The Legislature has ordered an “interim study” on the storm water issue. LB 534 was killed by the Natural Resources Committee.

Dram Shop (Oppose) - This has been an ongoing issue. The term “dram shop” refers to legislation that could hold negligent servers or sellers of alcohol liable of injury, death or damage resulting from selling to or serving an intoxicated person or serving a minor. As introduced, LB 573 included potential liability for serving intoxicated persons and minors. It passed the legislature in 2007 but we were successful in getting the “intoxicated person” language removed so that it only applied to those who sell or serve to minors. In an attempt to put the “intoxicated person” language back into the law, Senator Kruse introduced LB 810 in the 2008 session and designated it as his personal priority bill. The bill is still being considered by the Judiciary Committee and has not been advanced to the floor of the Legislature. We will continue to work in opposition.

Common Sense Consumption (Support) - Frivolous lawsuits are a growing concern to all business. Any business that sells food of any kind should be concerned. Food is quickly becoming the next frontier for “regulation through litigation” lawsuits, a tactic that began with tobacco litigation in the early 1990s. We are very appreciative to Senator Pat Engel of South Sioux City for introducing LB 625. This bill labels claims as “frivolous” if they result from weight gain or obesity due to the long-term consumption of food. It prohibits liability to manufacturers or providers of food if the consumer eats more than is healthy for him/her to consume. The attempts to get this done at the federal level have been unsuccessful. We hope to get the bill advanced to the floor of the Legislature to be
considered by the entire body.

Increase sales tax collection allowance (Support) - Restaurants do the state of Nebraska a significant service by collecting and remitting sales tax. Several years ago, in lean budget times, the sales tax collection allowance to businesses was severely cut back. In 2007, Senator Carrol Burling introduced LB 423, which would restore the collection allowance to its previous level. Since the Revenue committee did not advance the bill, Senator Carol Hudkins introduced a similar bill (LB 1010) in the 2008 session. Once again, the Revenue
Committee killed the effort. We will continue this fight next session.

For more information about legislative issues, please contact us at dineout@alltel.net or 402.488.3999. Continue visiting
www.nebraska-dining.org for issue updates.