Tuesday, June 16, 2009

Session Review: General Affairs

Lawmakers approved a cigar bar exemption to the statewide smoking ban that passed in 2008 and took effect June 1.

LB355, introduced by Omaha Sen. Scott Lautenbaugh, allows an exemption for cigar bars that hold a Class C liquor license and earn at least 10 percent of their gross revenue from the sale of cigars and other tobacco-related products, excluding cigarettes.

The bill also:

  • prohibits cigarette smoking in cigar bars;
  • requires a $1,000 n0n-refundable application fee;
  • prohibits cigar bars from selling food;
  • requires that a walk-in humidor be on the premises;
  • prohibits discounting alcohol in conjunction with cigar sales;
  • requires that proof of qualifying revenue be submitted to the Nebraska Liquor Control Commission; and
  • prohibits counties and cities from passing resolutions or ordinances prohibiting cigar smoking in cigar bars.
Senators passed the bill on a 27-22 vote.

Senators also passed a bill requiring cigarettes sold in Nebraska to meet fire safety requirements.

According to Platte Center Sen. Arnie Stuthman, sponsor of LB198, reduced ignition propensity cigarettes are manufactured with additional layers of paper so the tip does not maintain enough heat to ignite other materials if left unattended. Such cigarettes carry an “FSC” stamp or other approved marking signifying fire standard compliance.

Penalty provisions from LB404, introduced by Bellevue Sen. Abbie Cornett, were amended into LB198.

The bill provides a fine for retailers of $500 for a first offense of knowingly violating the act and $2,000 for subsequent offenses. Fines increase if the number of noncompliant cigarettes offered or sold exceeds 1,000.

LB198 passed on a 47-0 vote and becomes effective January 1, 2010.

The distribution of the monies collected from the state lottery and pickle cards will be affected by a bill passed this session.

LB286, introduced by Wilber Sen. Russ Karpisek, removes the sunset date for directing transfers from the State Lottery Operation Trust Fund to the Education Innovation Fund, the Nebraska Scholarship Fund, the Nebraska Environmental Trust Fund, the Nebraska State Fair Board and the Compulsive Gamblers Assistance Fund. The bill also provides that the amount transferred be the greater of the dollar amount transferred in fiscal year 2002-03 or at least 22 percent, but not more than 25 percent, of annual lottery ticket sales.

The bill authorizes the tax commissioner and lottery director to transfer available funds exceeding 25 percent of sales.

The bill contains provisions of LB287, also sponsored by Karpisek, that permits licensed organizations to use up to 12 percent of pickle card profits to pay for allowable expenses. Of the 12 percent, no more than 6 percent of the profit may be used for compensation to sales agents for the marketing, sale or delivery of pickle card units.

LB286 passed on a 46-0 vote.

Nebraska community colleges with culinary education programs are allowed to attain catering and Class I liquor licenses under a bill given final approval by lawmakers.

LB232, sponsored by Omaha Sen. Jeremy Nordquist, allows alcohol sales only at events held by a culinary education program on a community college campus or at events catered by such a program as part of the program’s educational requirements.

The bill passed on a 47-0 vote.

Lawmakers also gave final approval to a bill that changes provisions relating to municipal cemeteries in Nebraska.

Under LB500, introduced by Karpisek, a mayor, city council or board of trustees can set aside donations, bequests and proceeds from the sale of lots as a perpetual fund.

Income from such a fund may be used for the general care, management, maintenance, improvement, beautifying and welfare of the cemetery. No more than 20 percent of the principal may be used for such purposes in any fiscal year and no more than 40 percent in any period of 10 consecutive fiscal years.

LB500 passed 48-0.