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Dist. 40 R eport
Dist. 40 Report
Last week, the Agriculture Committee heard two bills at a public hearing, LB646 and LB665.
LB646 by Sen. Ibach would exempt feedlots within the brand inspection area from mandatory brand inspection unless those feedlots request to the Nebraska Brand Committee to remain a registered feedlot.
LB646 is the latest bill introduced attempting to address concerns among some members of the state’s cattle industry, particularly cattle feeders, who have questioned the utility and value of mandatory inspection.
These concerns have led to some instability in the brand law as mandatory brand inspection has, in the recent past, been the subject of a lawsuit and legislation introduced in 2020 to end mandatory brand inspection. The intent of LB646 is to try to bring uniformity in treatment across the state for feedlots. LB646 would still keep brand inspection in place for cow/calf producers in the brand inspection area.
This legislation would also not impact anyone’s ability to use brands or own brands.
LB646’s public hearing was well attended and resulted in lengthy discussion by both the supporters and the opponents. At this time, however, LB646 will require more work before it has a chance to be advanced out of committee.
For example, the Nebraska Brand Committee is a cash funded agency that operates on a $5.8 million budget, and exempting the feedlots in the brand inspection area would result in a loss of revenue of about $1.6 million for the agency.
I want to emphasize that although all eight members of the Agri culture Committee did cosponsor LB646, we each reserve the right to also not support this legislation.
We all agree we need to revisit the brand laws given the current instability and conflicts between feedlots and cow/calf producers in the brand inspection area. Ensuring the Brand Committee has sufficient revenue is one of my greatest concerns both for Nebraska and personally since I rely on brand inspection for my own cow/calf operations in western Knox County.
If Sen. Ibach is not able to make changes to LB646 to my satisfaction, then I reserve the right to both withdraw my name as a cosponsor and to not support this legislation.
LB665 by Sen. Storer would allow producers to voluntarily use livestock electronic IDs, provided that those IDs are not manufactured by an entity with direct or indirect ties to any federally-designated foreign adversary, which will help to preserve the integrity of Nebraska’s livestock management.
The intent of this legislation is to try to find a balance between accurate disease traceability and livestock management with the protection of the state’s food supply from potential foreign tracking and surveillance, which could pose risks to national security. From the hearing, I anticipate an amendment will be needed to address a number of technical concerns that were brought up during testimony.
Meanwhile, the Education Committee heard LB303, a bill introduced by Senator Hughes at the request of the Governor.
LB303 would make a number of changes to school funding, including increasing Foundation Aid to schools from $1,500 per formula student to $1,590 per formula student, dropping the maximum levy for schools from $1.05 to $1.02 per $100 of taxable valuation, and creating a base levy adjustment set at $0.30 per $100 of taxable valuation. Additionally, the bill would create the School Finance Reform Commission.
The Commission will be tasked with providing the Legislature with annual recommendations to adjust school funding to ensure stable state aid to schools. LB303 received broad support from a number of groups including the Nebraska Rural Community Schools Association, Nebraska Farm Bureau, and Nebraska Farmers Union.
This bill offers an incremental pathway to ensure our schools receive more money from the state, thereby reducing their need for property taxes.
However, LB303 is currently projected to cost roughly $60 million a year and will need alternate funding in order to pass since the state is currently faced with a $432 million budget shortfall.
As bills are heard and debated, I would appreciate your input. Call my Capitol office telephone number at (402) 471-2801 or send email to [email protected]. My mailing address is: Senator Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
