Senators Pass Military Retirees Tax Break, LGBT Resolution

The Nebraska Legislature gave final approval Wednesday to tax breaks for military retirees. And senators approved a resolution endorsing a U.S. Supreme Court decision against employment discrimination based on sexual orientation or gender identity.

The tax break for military retirees was contained in a bill Sen. Tom Brewer introduced for Gov. Pete Ricketts. It would exempt half of military retirement pay from the state income tax. The exemption will start in 2022. It’s estimated to cost the state just over $13 million in its first full year of implementation. As is usually true of bills up for a third and final round of voting, there was no debate before senators voted 46-0 to pass the measure.

Another bill approved by senators was Sen. Machaela Cavanaugh’s proposal requiring public colleges and universities in the state to report to the Legislature every two years on sexual harassment and what they are doing to combat it. Lawmakers voted 41-1 in favor of that bill.

One measure that did stir some debate and opposition was a resolution by Sen. Patty Pansing Brooks, affirming the United States Supreme Court decision earlier this year prohibiting employment discrimination based on sexual orientation and gender identity. Pansing Brooks has tried for years to get the Legislature to pass a law forbidding that, but has not succeeded.

She said Wednesday the Supreme Court decision effectively brings about the protections she wanted, although she still thinks it would be good for them to be put into state law. And she said people were still watching what the Legislature does on the subject.

“Current and prospective employers are paying attention to what we are doing. Future workers are paying attention and looking for places to bring their talents, and paying attention to what we are doing. And young Nebraska kids – watching at home today, wondering where they belong in this state, whether our state supports them and cares about them – they are paying attention to what we are doing,” Pansing Brooks said.

Sen. Rob Clements opposed the resolution, referring to one of its provisions.

“Be it resolved, number one, says the Legislature affirms the Supreme Court decision. I’m not in agreement with that 5-4 decision. My concern is that it may conflict with Nebraska Constitution, Article I, Section IV -- religious freedom,” Clements said.

Sen. Dave Murman also spoke against the resolution, suggesting the Supreme Court decision misinterpreted the Civil Rights Act of 1964.

“The Civil Right Act of 1964, when it was passed, was aimed at addressing racial discrimination, and also discrimination because of sex. But ‘sex’ at that time, of course, meant only two sexes – male and female – the only two that actually exist,” Murman said.

In his majority opinion in the Supreme Court case, Justice Neil Gorsuch wrote “An employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of a different sex. Sex plays a necessary and undisguisable role in the decision, exactly what Title VII forbids.” Title VII is part of the Civil Rights Act of 1964.

And in her statement ending the debate, Pansing Brooks argued against the idea the decision threatens religious freedom, referring to a case that protects religious employers’ rights in hiring.

“There are protections already so that religious people can continue to discriminate against LGBT (individuals) if they choose. But this case speaks strongly about the fact that these are Americans and citizens and Nebraskans. And we will support them and be kind to them and welcome them, and it is -- it is what we must do as a kind and civil society,” she said.

Following the debate, senators voted 28-8 in favor of Pansing Brooks’ resolution.

Also Wednesday, senators paid tribute to six of them who are being forced out of office by term limits and are ineligible to run for reelection this year. They include Speaker of the Legislature Jim Scheer, and Sens. Sara Howard, Kate Bolz, Sue Crawford, Rick Kolowski and Ernie Chambers. It is the second time Chambers has been term limited – he was also forced out 12 years ago, but the law allows someone to sit out one term and then run for election again, which he did.

The Legislature is scheduled to meet for the final day of its session for this year on Thursday, with final votes expected on bills including tax measures and abortion restrictions.