Bill > LB1037

This bill modifies existing Nebraska law regarding agreements between the Governor and federally recognized Indian tribes concerning cigarette and other tobacco product taxes collected on sales within tribal lands, known as "Indian country." Specifically, it mandates that upon receiving a written request from a tribe, the Governor must enter into good-faith negotiations for an agreement on how these taxes are collected and distributed, with negotiations needing to commence within sixty days and continue with regular sessions until an agreement is reached or an impasse is declared. The bill clarifies that the Governor cannot refuse or delay negotiations based on unrelated tribal governmental actions, such as cannabis regulation, and that the scope of negotiations includes tax collection, allocation, refunds, and escrow payments related to tobacco products, even if obligations under the Master Settlement Agreement (a legal agreement between states and tobacco manufacturers) are involved. The bill also outlines the required components of such agreements, including their duration, purpose, administration, remittance of taxes, division of proceeds, termination methods, dispute resolution, and reporting, while also specifying that tribal taxes must be applied equally to all tobacco products and that all cigarette packages must bear either a state or tribal stamp. Furthermore, it allows for agreements to permit the sale of certain cigarettes not on a state directory, provided they carry a tribal stamp and account for escrow deposits, and prohibits tribes from authorizing sales that violate these agreements. Finally, the bill amends provisions related to tax refunds for exempt transactions on tribal lands and allows for the use of tribal stamps in lieu of state stamps as part of these agreements, ultimately repealing the original sections of law it amends.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=63029