Nebraska LB 115: Impose sales tax on candy and soft drinks and provide for distribution of proceeds

Bill Text

LEGISLATURE OF NEBRASKA
ONE HUNDRED SEVENTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 115

Introduced by McCollister, 20.
Read first time January 07, 2021
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend sections1
77-2704.24 and 77-27,132, Reissue Revised Statutes of Nebraska, and2
section 71-7611, Revised Statutes Cumulative Supplement, 2020; to3
impose sales and use taxes on candy and soft drinks; to distribute4
sales tax proceeds to the Nebraska Health Care Cash Fund as5
prescribed; to harmonize provisions; to provide an operative date;6
and to repeal the original sections.7
Be it enacted by the people of the State of Nebraska,8
LB115
2021
LB115
2021
-1-

Section 1. Section 71-7611, Revised Statutes Cumulative Supplement,1
2020, is amended to read:2
71-7611 (1) The Nebraska Health Care Cash Fund is created. The State3
Treasurer shall transfer (a) sixty million three hundred thousand dollars4
on or before July 15, 2014, (b) sixty million three hundred fifty5
thousand dollars on or before July 15, 2015, (c) sixty million three6
hundred fifty thousand dollars on or before July 15, 2016, (d) sixty7
million seven hundred thousand dollars on or before July 15, 2017, (e)8
five hundred thousand dollars on or before May 15, 2018, (f) sixty-one9
million six hundred thousand dollars on or before July 15, 2018, (g)10
sixty-two million dollars on or before July 15, 2019, (h) sixty-one11
million four hundred fifty thousand dollars on or before July 15, 2020,12
and (i) sixty-one million one hundred thousand dollars on or before every13
July 15 thereafter from the Nebraska Medicaid Intergovernmental Trust14
Fund and the Nebraska Tobacco Settlement Trust Fund to the Nebraska15
Health Care Cash Fund, except that such amount shall be reduced by the16
amount of the unobligated balance in the Nebraska Health Care Cash Fund17
at the time the transfer is made. The state investment officer shall18
advise the State Treasurer on the amounts to be transferred first from19
the Nebraska Medicaid Intergovernmental Trust Fund until the fund balance20
is depleted and from the Nebraska Tobacco Settlement Trust Fund21
thereafter in order to sustain such transfers in perpetuity. The state22
investment officer shall report electronically to the Legislature on or23
before October 1 of every even-numbered year on the sustainability of24
such transfers. The Nebraska Health Care Cash Fund shall also include25
money received pursuant to sections section 77-2602 and 77-27,132. Except26
as otherwise provided by law, no more than the amounts specified in this27
subsection may be appropriated or transferred from the Nebraska Health28
Care Cash Fund in any fiscal year.29
The State Treasurer shall transfer ten million dollars from the30
Nebraska Medicaid Intergovernmental Trust Fund to the General Fund on31
LB115
2021
LB115
2021
-2-

June 28, 2018, and June 28, 2019.1
Except as otherwise provided in subsection (6) of this section, it2
is the intent of the Legislature that no additional programs are funded3
through the Nebraska Health Care Cash Fund until funding for all programs4
with an appropriation from the fund during FY2012-13 are restored to5
their FY2012-13 levels.6
(2) Any money in the Nebraska Health Care Cash Fund available for7
investment shall be invested by the state investment officer pursuant to8
the Nebraska Capital Expansion Act and the Nebraska State Funds9
Investment Act.10
(3) The University of Nebraska and postsecondary educational11
institutions having colleges of medicine in Nebraska and their affiliated12
research hospitals in Nebraska, as a condition of receiving any funds13
appropriated or transferred from the Nebraska Health Care Cash Fund,14
shall not discriminate against any person on the basis of sexual15
orientation.16
(4) The State Treasurer shall transfer fifty thousand dollars on or17
before July 15, 2016, from the Nebraska Health Care Cash Fund to the18
Board of Regents of the University of Nebraska for the University of19
Nebraska Medical Center. It is the intent of the Legislature that these20
funds be used by the College of Public Health for workforce training.21
(5) It is the intent of the Legislature that the cost of the staff22
and operating costs necessary to carry out the changes made by Laws 2018,23
LB439, and not covered by fees or federal funds shall be funded from the24
Nebraska Health Care Cash Fund for fiscal years 2018-19 and 2019-20.25
(6) It is the intent of the Legislature to fund the grants to be26
awarded pursuant to section 75-1101 with the Nebraska Health Care Cash27
Fund for FY2019-20 and FY2020-21.28
Sec. 2. Section 77-2704.24, Reissue Revised Statutes of Nebraska, is29
amended to read:30
77-2704.24 (1) Sales and use taxes shall not be imposed on the gross31
LB115
2021
LB115
2021
-3-

receipts from the sale, lease, or rental of and the storage, use, or1
other consumption in this state of food or food ingredients except for2
prepared food and food sold through v