Government, Military and Veterans Affairs Committee
February 5, 2025
Committee Chair: Sen. Rita Sanders | Bills Heard: 4 | Full Transcript (PDF)
LB345: Adjust salaries for state constitutional officers
Introduced by: Sen. Rita Sanders | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska hasn't raised constitutional officer salaries since 2007—and it's costing the state. Sen. Rita Sanders introduced LB345 to adjust pay for the state's six constitutional officers, whose salaries have been frozen for 18 years while inflation eroded their value. The bill deliberately omits specific dollar amounts, inviting the committee to benchmark against neighboring states.
Why it matters: These positions oversee essential state functions. Without competitive salaries, Nebraska risks losing qualified candidates to other states. State Auditor Mike Foley warned that the Legislature must act this biennium or wait until 2031 for adjustments to take effect.
What they're saying: - Foley: "Every 20 years or so, it's appropriate for the Legislature to revise the salaries for the constitutional officers of the state of Nebraska." - Sanders: Nebraska pays constitutional officers "a lower amount than their colleagues in neighboring states. In some ways, we pay less than 50% of the prevailing wage." - Sen. Andersen: Even at the neighboring-state average of $121,800 for auditors, Nebraska would rank in the bottom 20% nationally.
By the numbers: Current salaries range from $75,000 (Lieutenant Governor, Public Service Commissioner) to $95,000 (Attorney General). Online position comments: 0 proponents, 2 opponents, 0 neutral.
What's next: No vote was taken. Sen. Sanders waived closing, noting the decision rests with the full Legislature.
Committee sentiment: Supportive: Sen. John Cavanaugh Skeptical: Sen. Bob Andersen Unclear: Sen. Dan Lonowski
Sentiment estimated from questions and comments — not stated positions.
LB529: Exempt Nebraska Investment Council from procurement restrictions
Introduced by: Sen. Mike Jacobson | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska's investment council needs flexibility to compete for top-tier investment deals—and the Legislature is poised to grant it. Sen. Mike Jacobson introduced LB529 to exempt the Nebraska Investment Council from procurement restrictions that inadvertently hamper its ability to negotiate investment contracts. The NIC manages $43.5 billion across 32 programs.
Why it matters: Investment contracts operate under different rules than standard procurement. Rigid requirements on contract duration, indemnification, and jurisdiction can disqualify the NIC from competitive opportunities in private equity and other high-return investments. The exemption maintains Attorney General oversight while giving the NIC negotiating flexibility.
What they're saying: - Ellen Hung, NIC Director: "If we start saying, you can't do this, we can't do that [to private equity funds], they'll just tell us to go somewhere else." - Sen. Cavanaugh: The exemption removes only 2024 restrictions, not pre-existing requirements.
By the numbers: NIC manages $43.5 billion in state assets across 32 investment programs.
What's next: No vote was taken. One proponent testified; no opponents or neutral parties. Amendment AM27 was distributed for committee consideration.
Committee sentiment: Supportive: Sen. John Cavanaugh Skeptical: Sen. Bob Andersen
Sentiment estimated from questions and comments — not stated positions.
LB183: Modernize unclaimed property newspaper publication requirements
Introduced by: Sen. Barry DeKay | Testimony: 1 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Nebraska's unclaimed property office wants to modernize how it notifies owners—but the press wants to pump the brakes. Sen. Barry DeKay introduced LB183 to overhaul the state's unclaimed property newspaper publication process, which the Unclaimed Property Division says is logistically impossible under current law. The division returned a record $23 million to owners in 2024.
Why it matters: Current statute requires publishing owner names in all 93 Nebraska counties within a 10-day window—a feat the division says is impossible. Modernizing the process would allow more efficient outreach and direct owners to a website updated daily. But the Nebraska Press Association worries that removing printed notices eliminates a crucial accountability mechanism in an era of digital hacking and disinformation.
What they're saying: - Meaghan Aguirre, Unclaimed Property Director: Only 7% of specific properties published are claimed as a result of the ad, supporting efficiency arguments. - Jerry Raehal, Nebraska Press Association: Louisiana data shows a "40-plus-40% increase" in website traffic during newspaper notice periods, proving print drives engagement.
By the numbers: $23 million returned in 2024; 6,309 claims filed during the four-week ad period; only 7% of published properties claimed as a result of the ad.
What's next: No vote taken. Amendment AM109 was presented; both the Treasurer's office and NPA indicated they can accept it. Sen. DeKay indicated willingness to facilitate summer stakeholder discussions on comprehensive public notice modernization.
Committee sentiment: Unclear: Sen. Dunixi Guereca, Sen. John Cavanaugh, Sen. Dave Wordekemper
Sentiment estimated from questions and comments — not stated positions.
LB445: State Building Alternatives Act—allow alternative construction procurement methods
Introduced by: Sen. Brad von Gillern | Testimony: 2 proponents, 9 opponents, 1 neutral | Read bill text (PDF)
A bill to modernize state building contracts has become a proxy war over public art—and the arts community is winning the hearing. Sen. Brad von Gillern introduced LB445 to allow state agencies to use design-build and construction management methods alongside traditional design-bid-build procurement. The bill also raises the architect/engineer threshold and eliminates the 1% for Art program. But nine opponents—mostly artists, arts organizations, and a construction trades council—testified against it, while only two proponents spoke in favor.
Why it matters: Alternative procurement methods are standard in the private sector and already used by political subdivisions and state universities. Proponents say they can reduce costs 6-20% by involving contractors in design, avoiding bid busts like the $8.7 million overrun on the Bellevue Readiness Center. But opponents worry the bill creates vague qualification criteria, lacks transparency, and could favor larger companies. The 1% for Art fight overshadowed the procurement debate.
What they're saying: - Lee Will, DAS Director: "Having the contractor involved in the design, you can really scope what you actually truly believe the cost of the project is going to be." - Jon Nebel, Building Trades: "We're taking away what I believe to be the fairness of the bidding process... we could create an unfair position based on... discrimination practices." - Matt Mason, Former State Poet: "Public art is made by us to reflect who we are... that tiny investment pays back." - Sen. von Gillern (closing): "I listened a whole lot more [today]. I believed it was a full 1% of the projects, and the information about it being 0.15% was shared with me about an hour before the hearing."
By the numbers: 1% for Art costs 0.15% of capital construction appropriations ($2.479 million annually); maintains 800+ artworks worth $7 million; affects only 3-4 projects per year. Estimated cost savings from alternative methods: 6-20%.
What's next: No vote taken. Sen. Hunt has drafted an amendment removing the 1% for Art elimination and indicated she will drop it if von Gillern agrees. Von Gillern said he is "very open" to learning more about the art program and working with Hunt. An amendment addressing procurement process details is forthcoming.
Committee sentiment: Skeptical: Sen. John Cavanaugh Opposed: Sen. Megan Hunt Unclear: Sen. Dave Wordekemper, Sen. Rita Sanders, Sen. Dunixi Guereca
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The committee heard four bills. LB345 and LB529 proceeded without opposition or extensive debate. LB183 generated substantive discussion between the Unclaimed Property Division and the Nebraska Press Association, with an amendment (AM109) offered as a compromise. LB445 drew the largest crowd and longest hearing, with 32 written opponent comments and extensive testimony on both the procurement provisions and the 1% for Art elimination. Committee Chair Sanders noted approximately 50 people waiting in an overflow room. Sen. Hunt indicated she has drafted a kill motion on LB445 due to the art provision and an amendment to remove it. Sen. von Gillern acknowledged he had not fully researched the art program before the hearing and expressed openness to amendment discussions.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.