History Nebraska is out of control. So, one of the bills I introduced this year, LB 1169, is a bill to make History Nebraska a code agency, bringing the Society under the control of the Governor. This bill has become necessary due to the way state revenues have been misused by the agency in the past and how History Nebraska has been organized …or should I say, disorganized.

Last year a Nebraska State Auditor’s report alleged that History Nebraska misused and misappropriated state funds. Trevor Jones, the former director of History Nebraska, was accused of embezzlement, theft, and official misconduct after he deposited a check for $270,000 into a bank account for the History Nebraska Foundation, a competing foundation that he helped create. Because the money had been appropriated as part of the American Rescue Plan Act (ARPA), the check should have been deposited with the State Treasurer.

If any of this sounds confusing – well, it should. The Nebraska State Historical Society is chaotically organized. The Nebraska State Historical Society members changed the name of the agency to History Nebraska in 2019. Although the Society became a state agency back in 1994, the Society’s organization has lacked accountability to the State. The Society is run by a board of trustees consisting of twelve members appointed by History Nebraska members and only three members appointed by the Governor. The members also appoint their own director. Making matters even more convoluted is the fact that each member can accept gifts on behalf of the agency and the History Nebraska Foundation operates independently from the State. So, when monies were deposited into an account for the History Nebraska Foundation, a red flag automatically went up at the State Auditor’s office.

I introduced LB 1169 to fix these many problems with History Nebraska. First, the bill makes History Nebraska a code agency, instead of merely being a state agency with loose ties to the State. This is accomplished by having the Governor appoint the director, at the approval of the Legislature. The director would run the agency’s operations and finances and serve at the pleasure of the Governor. The director would be forbidden to serve on the board of any other organization which makes contributions to History Nebraska. Consequently, the director would be held accountable to the Governor for all of the operations and actions taken by the Society.

The bill diminishes the role of the members of the board of trustees. The director would no longer take orders or directions from the board of trustees. Instead, the board of trustees would merely take on an advisory role with the director.

The bill puts strict limitations on how History Nebraska can accept gifts. The bill strips the members of the board of trustees of their authority to accept any gifts on behalf of the agency. Only the director would be allowed to accept gifts, provided that the gift is under $10,000. Gifts of money and real estate valued over $10,000 would require the approval of the Governor.

The bill creates financial transparency for the Society. All deposits would be made through the State Treasurer. Each year the director would hold an annual meeting and prepare an annual report. The director would prepare a financial report of all of the agency’s transactions for the year. The report would include the dissemination of any materials sold or disposed of by the Society.

Finally, the bill reestablishes the Nebraska State Historical Society Collections Trust Fund. However, the fund would be administered by the director and the proceeds from any materials sold by the agency would be deposited by the State Treasurer into the fund. Furthermore, revenues in the fund would be invested as per the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

I share these things with you today because Nebraskans need to know how their hard-earned money is being spent by the State of Nebraska. The State of Nebraska can no longer afford to spend money frivolously. Corrupt and reckless financial practices by state agencies must be reined in. LB 1169 seeks to accomplish that objective. A public hearing will be held on LB 1169 at the State Capitol on February 1; however; members of the public can write online comments about the bill through the Legislature’s website at: www.nebraskalegislature.gov.