Proposals to give a tax break to first-time homebuyers and to change the state’s Medical Cannabis Commission were introduced in the Legislature Friday. And a senator’s action in temporarily removing a poster display drew criticism, and an apology.

Sen. Bob Hallstrom introduced a proposal (LB938) for State Treasurer Joey Spellerberg to let first-time homebuyers establish savings accounts to cover expenses like down payments and closing costs, and deduct those contributions on their income taxes. Hallstrom described how much people could deduct.

“It provides a little bit of an incentive for first time home buyers by allowing them to take contributions, $5,000 annually for individuals, up to $10,000 for couples filing jointly, and a cap of $25,000 for individuals, $50,000 for married filing jointly, they can put that money away has to be used for specific purposes related to the purchase or construction of a home by a first time home buyer,” he said.

Hallstrom was asked if the state can afford whatever the revenue loss would be, considering its currently projected budget shortfall.

“I think we’re just going to have to see how the budget process comes out,” he said. “There’s a lot of areas of need, and this is one of them, with regard to home ownership… and I think it’s just something that we need to make the investment in today’s conditions, to spur the supply that we have and to encourage the American dream of home ownership.”

Also Friday, Sen. John Cavanaugh introduced a bill (LB934) to require members of the state’s Medical Cannabis Commission be elected, rather than appointed by the governor. Voters approved medical cannabis in 2024, but the commission has been criticized for slow-walking its implementation. Cavanaugh said he wants to correct that.

“Elected officials are directly accountable to the people who elect them. So if the voters vote 70-some percent for medical cannabis, and then the governor is frustrating that desire through his appointments, people deserve to have cannabis commission that is reflecting the will of the people, and they will be accountable to the people who vote for them, they will have to represent those districts, and they will be more closely tied, as opposed to having the governor appoint, the legislature approve, and then having that complicated hurdle in between the people and the commission,” he said.

Changes to Medicaid were the focus of legislation (LB929) introduced by Sen. John Fredrickson. Fredrickson said additional costs authorized by Congress in legislation passed last year would be limited by his bill.

“It delays the state’s implementation of the federal changes until the latest date possible by federal guidelines,” he said. “So in other words, it says we can’t start charging folks before we absolutely have to charge them. But second, it ensures that patients cannot be denied care if they are unable to pay those co pays. And third, it allows for MCOs (managed care organizations) to cover the copay or deductible payments for the patients if they’re unable to pay them themselves,” he said.

Regulation of carbon dioxide pipelines would be tightened under a proposal (LB916) by Sen. Glen Meyer. Meyer said constituents in his northeast Nebraska district are concerned about a pipeline proposed by Summit Carbon Solutions that would transport carbon dioxide from ethanol plants in five states, including Nebraska, to a storage facility in North Dakota. Meyer’s bill would require approval from the state’s Oil and Gas Commission, and would prohibit use of eminent domain for carbon dioxide pipelines.

“I’m primarily focused on protecting the rights of private landowners, because I think given some of the easement, the wording of the easements, and to some extent the heavy handedness of those that are proposing the pipeline, I think that they’re imposing on the individual rights of private landowners, and that’s my primary focus,” he said.

In another development Friday, Sen. Jared Storm asked the Legislature’s internal governing body, the Executive Board, to discipline Sen. Machaela Cavanaugh. On Wednesday, Cavanaugh removed posters produced by Prager University, a conservative advocacy group, for the 250th anniversary of the Declaration of Independence.

Cavanaugh said at the time she did not know the display had been approved by the Capitol Commission. Commission staff then retrieved the posters from her office and put them back on display.

Storm criticized Cavanaugh’s action.

“The conduct in question is not a minor political protest. It is a serious lapse of decorum, judgment and respect for the rules of the institution, norms of the state Capitol. We encourage the executive board to review Sen. Machaela Cavanaugh’s behavior and take action to hold her accountable, including considering censure or any other discipline if deemed appropriate,” he said.

Cavanaugh spent the next two hours going around speaking to her colleagues, then took to the microphone to apologize.

“I am very sorry for what I did. I hope to do better. I appreciate the grace that you all have given me this morning in talking with me, and I hope that we can move forward in a productive way for the remainder of this session. I don’t want to be what stands between us and good policy for the people of Nebraska, and I see that what I did on Wednesday is currently doing that,” she said.

Members of the Executive Board met Friday afternoon and discussed the situation, but did not decide on any action. Chairman Ben Hansen said they would make a decision Monday. That’s also when the board will hold a public hearing on the recommended expulsion of Sen. Dan McKeon, accused of groping a legislative staffer – a charge he denies.

That hearing on Sen. McKeon will be streamed live on our website at 9 a.m. CT.

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