Bill would double late-filing fees, add principals to Nebraska disclosure regime

Senator Sandersopened the Government, Military and Veterans Affairs Committee hearing on LB1002, which would raise several late-filing fees charged under Nebraska law and extend penalties to 'principals' who hire lobbyists.

Margaret Buck, a legislative aide introducing the bill on behalf of Senator Makayla Kavanaugh, told the committee LB1002 doubles a $25-per-day late fee (currently capped at $750) to $50 per day with a new maximum of $1,500, raises out-of-state contribution late fees from $100 per day to $200 per day, and increases the filing fee for committee statements of organization from $100 to $150. Buck said the increases reflect roughly 25 years of inflation and that the NADC retains authority to reduce or waive fees in specified circumstances.

Scott Danigole, executive director of the Nebraska Accountability and Disclosure Commission, testified the measure comes from the commission and said the fee structure has not been adjusted in about 25 years. Danigole said the agency estimates LB1002 would raise about $30,000 a year in cash-fund receipts but added that the estimate assumes increased compliance will reduce the total number of late-filing events even as the fee levels rise. "We believe it'll decrease the number of late filings, but we believe there will be an overall increase in the dollars collected," Danigole said.

Kent Rogert, representing his firm and clients, testified in opposition to the increase in the statutory maximum penalty. Rogert said he did not object to increasing the per-day fee but urged the committee to consider a grace period or other adjustment because, in his experience, filers often learn about missing filings only after they have already accumulated the maximum penalty. "Most times I've ever had a client that got in trouble with that, they're already in the whole $750," Rogert said, adding that doubling the cap to $1,500 could be unduly punitive.

The bill also adds principals to filers who may be assessed late fees; proponents said principals often influence legislation and current law provides the NADC limited means to compel timely filing from principals other than reminders. Danigole told the committee there are more than 150 principals with overdue filings and that including principals in the late-fee regime would incentivize compliance.

The committee did not vote on LB1002; the hearing record shows proponents, one opponent and some position comments were filed before the committee closed the hearing. No formal committee action was taken at the hearing.