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1966 Blue Book

	DEPARTMENT OF JUSTICE	337

      The State Treasurer may invest not more than sixty per cent of the money of the state funds in warrants of this state or of any county of this state at par whenever he deems it proper and carry the same at their value as cash. He shall invest current funds not needed for daily needs in United States Bonds, United States notes, bills, and certificates of indebtedness, or bonds and debentures issued either singly or collectively by any of the twelve federal land banks, the twelve intermediate credit banks, or the thirteen banks for cooperatives under the supervision of the Farm Credit Administration.

     The State Treasurer is a member of the following boards: Board of Canvassers and Board of Equalization and Assessment.

Total number of employees: 13. Publications: Biennial Report; Briefs; Opinions.

     The office of Attorney General grew out of specific legislative acts authorizing the Governor to employ counsel to perform legal duties for the state. An Act of 1869 provided for the election of an Attorney General. There was opposition to the continuance of the office in the Constitutional Convention of 1875, but the office was included with the constitutional elective offices in that instrument.

     The Legislature of 1919 passed an act creating the Department of Justice, with the Attorney General as the head of the department. This department has "general control and supervision of all actions and legal proceedings in which the State of Nebraska may be a party or be interested, and has charge and control of all legal business of all departments and bureaus of the state, or of any office thereof, which requires the services of attorney or counsel in order to protect the interests of the state."

     At the general election of November, 1966, and every four years thereafter, the Attorney General shall be elected by the people for a four-year term.

     The Attorney General has the same powers and prerogatives in each of the several counties of the state as the county attorneys have in

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their respective counties. He is required: 

1. To appear and defend actions and claims against the state.
2. To consult with and advise the county attorneys, when requested by them, in all criminal matters and in matters relating to public revenue.
3. To give, when required, without fee, his opinion in writing upon all questions of law submitted to him by the Governor, or the head of any executive department, or by the Legislature.
4. At the request of the Governor or the head of any executive department to prosecute or defend for the state all actions and proceedings, civil or criminal, relating to any matter connected with their departments.
5. To enforce the proper application of moneys appropriated by the Legislature to the various funds of the state, and prosecute breaches of trust in the administration of such funds.
6. To prepare, when requested by the Governor or other executive officers, proper drafts for contracts, forms or other writings which may be wanted for use by the state.
7. To appear for the state and prosecute and defend all actions and proceedings, civil or criminal, in the Supreme Court in which the state is interested or a party; and when requested by the Governor or the Legislature, to appear for the state and prosecute or defend any action or conduct any investigation in which the state is interested or a party, before any court, officer, board, tribunal or commission.

      The Attorney General is a member of the following boards and commission: Board of Canvassers; Board of Pardons; Sundry Claims Board; State Records Board and Nebraska Commission on Intergovernmental Cooperation.

     The Constitution of 1875 provided for eight executive officers and the Board of University Regents. Section 26 of Article V of that constitution expressly forbade the creation of any other executive offices. In time new functions of government were assumed and the prohibition of the constitution was evaded by the creation of various boards and commissions having for their nominal heads one or more of the constitutional state officers while the real work was done by deputies. In 1918 a plank in the Republican platform pledged the party to the enactment of a Civil Administrative Code. The party was successful at the election and the Legislature of 1919, after a very fierce and prolonged contest in which party lines were considerably broken, enacted an administrative code. A referendum petition against this act was circulated but owing to failure to comply with certain legal requirements the referendum

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failed to secure a place upon the official ballot and the code went into effect in July, 1919. This code eliminated eleven boards and commissions and ten other subdivisions of departments. It created the following six administrative departments: Finance, Agriculture, Trade and Commerce, Labor, Public Works, and Public Welfare.

     The code continued to be an issue in succeeding state elections. In 1922 it was a political issue but a divided Legislature failed to make any material amendment to the law. In 1929 the Department of Finance was abolished and its duties given to the State Tax Commissioner. It was also provided that the Secretary of Labor should be ex officio Secretary of Public Welfare. These departments were administered by secretaries appointed by the Governor with the consent of the House and Senate. In 1931 Governor Bryan decided to operate the activities of the Departments of Agriculture, Labor and Public Welfare without the appointment of secretaries.

     The Legislature of 1933 complied with the recommendations of Governor Bryan and rearranged the administrative agencies into the following six departments: Agriculture and Inspection, Labor, Health, Roads and Irrigation, Banking, and Insurance. The amendments of 1933 did not change the duties of the several agencies materially. In 1945 the Department of Aeronautics was established as one of the administrative departments, and in 1947, the Department of Veterans Affairs was designated an administrative department. In 1957 the Department of Roads and Irrigation was divided into two administrative departments, namely: The Department of Roads and the Department of Water Resources. In 1957 the Division of Motor Vehicles was also made an administrative department. In 1962 the Department of Public Institutions and the Department of Public Welfare were established as administrative departments. The Department of Administrative Services was established by legislative act in 1965 and the office of the Tax Commissioner was also designated an administrative department. The salaries and wages of all employees including the heads of these departments are fixed by the Governor. Though the Adjutant General's office is not actually an administrative department, it does function as such and is therefore included in this section. The heads of the administrative departments comprise the unofficial cabinet of the Governor.

     The following pages give an account of the administrative departments as they now exist in law, together with a brief history of each activity as it existed prior to the enactment of the administrative code.

      This department, created by the enactment of LB 173 by the 1965 Legislature, was approved August 4, 1965, and became operative October 1, 1965.

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     The coordination and administration of the activities of the four divisions that make up the department are the responsibility of the Director. The four divisions are:

Accounting Division

Pre-Audit and Control Section
Systems Section Data Processing
Service Bureau Social Security Bureau

Budget Division
Purchasing Division
Building Division

      The responsibility of this department is best described by reciting the five purposes set forth in the act:

(1) Provide for the development and maintenance of a modern system of budgetary, inventory and financial accounting;
(2) provide for development and maintenance of such modern and economical methods and systems for record keeping, accounting, expenditure planning and control as may be possible through timely adoption of modern technological developments;
(3) provide for centralized direction of services and service agencies;
(4) assure the development and operation of organizational and procedural innovations as may be expected to provide acceptable internal control of the handling and processing of public funds; and
(5) focus responsibility for execution of the financial policies of this state on the chief executive and provide assistants having the necessary technical skills for the achievement of that end.

Total Number of Employees: 18.

     This division, created by the 1965 Legislature, has four areas of activity. At the administrative level is the Control and Pre-Audit of Vouchers Section and the Systems Section. The third unit is the Data Processing Service Bureau and the fourth unit is the Social Security Bureau.

     The State Accountant placed in operation a new system of accounting procedure for State Agencies as of October 1, 1965, as pro

	DEPARTMENT OF ADMINISTRATIVE SERVICES	341

vided in the act, and, through the Systems Section, will install, over the period of the- first 24 months of operation, new procedures including a double entry accrual system which will improve the fiscal accounting and record keeping and afford a greater measure of control of the expenditures that are provided for in the approved budgets.

     The Pre-Audit and Control Section is administrative in accounting operation; will up-date the accounting process and maintain the Accounting Manual. This section will have the General Ledger activity.

     The Pre-Audit and Control Section will review and approve all vouchers for payment and he responsible for drawing warrants on the State Treasurer for their payment.

Total number of employees: 45.

     This bureau, established by the 1965 Legislature as a part of the Accounting Division, was transferred from the Tax Commissioner. It is the successor organization to the Central Accounting Office.

     The bureau installed one of the very latest and most sophisticated data processing installations in mid-March, 1966, which became operative May 1, 1966. This installation is the principal tool and the central activity in unification of accounting processes for the State and provided the data for accomplishing the controls delegated to the Department of Administrative Services.

     In addition to processing the work involved in accounting and fiscal matters, the bureau will also provide service to agencies of State Government in production of all types of records, statistics and projects involving research.

Total number of employees: 4.

     The Social Security Bureau serves as a liaison agent between the state agencies and political subdivisions on the one hand and the Federal Security Administration on the other. In performing this function it is the responsibility of the bureau to:

1. Interpret and administer federal and state statutes with respect to social security for public employees in Nebraska.
2. To review and approve enabling actions and plans submitted by political subdivisions whereby social security is to be extended to their employees.

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3. Each calendar quarter to recapitulate and consolidate wage reports from all state agencies and political subdivisions in which social security coverage has been adopted and to receive their remittances. After such compilation to transmit to the Department of Health, Education, and Welfare a composite report, together with a remittance for the proper amount of tax owed by the state agencies and political subdivisions for each quarter.

      The 1965 session of the Legislature transferred the responsibility for Social Security from the Tax Commissioner to Department of Administrative Services and established the activity as a bureau within the Accounting Department.

     The Social Security Bureau reports on approximately 3,501 different public entities, made up of:

     This activity results in the collection and remittance of approximately $32,000,000 each biennium.

Total number of employees: 5.

      The Budget Division headed by the Budget Officer, is an activity transferred from the office of the Tax Commissioner under the provisions of the Department of Administrative Services Act. The legislation gives the Budget Officer new status and authority in budget matters.

     The act prescribes principal functions and duties as:

 1. The Budget Officer shall see to the preparation of the Executive Budget in accordance with the wishes and policies of the Governor. The Budget Officer shall prescribe the forms and the procedures to be employed by all departments and agencies of the state in compiling and submitting their individual budget requests.
 2. Following passage of appropriations legislation by the Legislature, the Budget Officer shall be responsible for the administration of the approved budget as provided by law.
 3. Subject to the approval and direction of the Director, the Budget Officer shall engage in systems and procedures, studies

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and organizational studies of the operations of any department and -agency of the state for the purposes of (a) work simplification and increased efficiency; (b) mechanization of operations which might result in improved efficiency and reduction of operating costs; (c) development of standards governing the allocation of staff, supplies, equipment and office space for the economical and efficient production of services required of any department or agency of the state or for use in making appropriations, requests, or both; and (d) developing staffing patterns for all agencies and departments of the state.
 4. The Budget Officer shall cooperate with other divisions of the Department of Administrative Services in undertaking and completing such projects respecting the finances and financial management of the state as the Governor or the Director may require.
 5. The Budget Officer shall supervise the filing of budget requests of all departments and agencies of the state and for this purpose shall develop a schedule for the preparation and submittal of budget requests. The Budget Officer must issue instructions for budget preparation not later than July 15 in the year preceding the regular legislative session. Budget requests must be filed net later than September 15 of the same year, except in special cases in which the Governor has granted an extension not to exceed thirty days.

      The first budget to be prepared under this new authority and procedure will be the Executive Budget which will be submitted to the 1967 Legislature and will be for the 1967-69 biennium.

     It is expected that the 1967-69 budget will be approved on a "program" basis which will aid and assist the Budget Officer in exercising the authority and control, as provided in the act, of the expenditures provided for in the new appropriation bill.

Total number of employees: 19.

     The functions of the former Bureau of Printing and Supplies were transferred to the Division of Purchase and Supplies by the Civil Administrative Code in 1919, and the division was made the purchasing agent of the state. The history of the Bureau of Printing and Supplies is as follows:

     A territorial act approved March 15, 1855, provided that the Secretary of the Territory should print and distribute the laws and joint

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resolutions. On January 29, 1857, Robert W. Furnas was elected Public Printer, and a joint resolution approved February 13, 1857, authorized the printer to print the session laws and the journals of each house. The earliest state law in reference to state printing is one approved June 18, 1867. This act provided that the Auditor, Treasurer and Secretary of State should advertise for bids for state printing. An act approved February 25, 1875, required state officers to deliver their reports to the State Printer and have them ready for distribution at the beginning of the Legislature. The earlier act was repealed by an act approved February 24, 1883, and a State Printing Board, consisting of the Auditor, Treasurer and Secretary of State, with duties almost identical with those required by the early law was created. The Legislature of 1897 substituted a new act which required the Printing Board to let contracts for printing, stationery and supplies for all state departments, and allowed $1,000 a year as salary for an expert printer to attend to the actual duties of the board. An act approved April 3, 1909, provided that the Printing Board should consist of the Governor, Auditor and Secretary of State and gave the Governor power to appoint a secretary. The Legislature of 1911 repealed the existing law and created a Bureau of Printing, and made the Governor the Commissioner of the Bureau with power to appoint a deputy at a salary of $1,500 a year. The Legislature of 1917 enacted a new public printing law similar to that of 1911. The functions of the Bureau of Printing were transferred to the Division of Purchase and Supplies in 1919.

      In 1943 the Legislature provided that the Purchasing Agent should be appointed by the Governor with the consent of the Legislature for a four-year term at an annual salary of $3,600. The 1945 Legislature increased the Purchasing Agent's salary to $4,000 a year. The 1951 Legislature provided that the salary of the Purchasing Agent should be fixed by the Governor at not to exceed $4,600 a year. The 1957 Legislature provided that the salary of the Purchasing Agent should be $7,500.00 a year. The 1963 Legislature increased the Purchasing Agent's salary to $8,500.00 a year.

     The State Purchasing Agent was also given by the 1943 Legislature the administration of the central mailing service for the state. A postage metering machine was installed and since July 1, 1943, all official outgoing mail of any state officer, department, commission, board, bureau, court or other agency located in the state capitol, is delivered to the central mailing service where it is metered and dispatched.

     The Purchasing Agent has exclusive authority to make all purchases of articles used by or needed by the state and its agencies. The 1947 Legislature provided that the Purchasing Agent should have authority to sell and dispose of state surplus property.

     The 1965 Legislature transferred this agency from the Tax Commissioner to the Department of Administrative Services as the Purchasing Division and in so doing placed the purchasing departments

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of the State University and the State Normal Schools under the jurisdiction of the State Purchasing Agent.

     The Purchasing Department's volume of work per biennium is represented in these figures:

Total number of employees: 78 regular and 12 part-time.

     In 1939 the Governor became the custodian of the capitol under the provisions of a law enacted in 1937. From 1929 to 1939 the Commissioner of Public Lands and Buildings had this power but with the abolishment of the office by constitutional amendment adopted in 1936 and by legislative enactment effective in January 1939, the responsibility for the administration of the capitol building and grounds then devolved upon the Governor.

     The State Engineer in 1955 was made the consulting engineer for the State Capitol building for the purpose of providing professional engineering services required for the preservation and beautification of the capitol building and grounds, to provide plans, working drawings, and specifications required for all repairs, improvements and new construction for the State Capitol building and grounds, and to render professional engineering advice and consulting engineering services to the Governor regarding his duties as custodian of the State Capitol building and grounds.

     The 1965 session of the Legislature named the Building Division as a unit of the Department of Administrative Services transferring the custody of the capitol and grounds from the Governor to the Director of Administrative Services as Custodian.

     To aid in the performance of his duties as custodian, the Director appoints a Superintendent of Buildings and Grounds who has complete control and all powers necessary to properly maintain the capitol and capitol grounds, Governor's Mansion and grounds, and all lands adjacent to the capitol grounds owned by the State of Nebraska.

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DEPARTMENT OF AERONAUTICS

Total number of employees: 28.

Publications: Annual Report; Nebraska Airport Directory; Aeronautical Chart; PIREPS (Bimonthly Newsletter to Airmen).

     The Department of Aeronautics was established as one of the administrative departments in 1945 when the Legislature rewrote the Law of 1935 which had created the Aeronautics Commission. The new law provides for the department, with a director appointed by the Governor with the consent of the Legislature and for an advisory commission, the Nebraska Aeronautics Commission. The Director of Aeronautics is the secretary of the Aeronautics Commission when it is in session.

     Funds for the department are derived from a tax upon gasoline sold in the state for use in airplanes. Ordinarily no monies derived from state property taxes are appropriated by the Legislature for the function of the department or for grants to aid Nebraska's airports and related aeronautical development. However, the 1965 Legislature made an exception and appropriated funds to aid Nebraska's airports for the 1965-67 biennium.

     The Aviation Safety Division formulates regulations consistent with federal regulations and is responsible for their enforcement. The principal function of fostering aviation safety is accomplished through a symposium type Pilot Upgrading program carried on throughout the state, relating new regulations and piloting procedures to Nebraska airmen. Integrated instrument training is given to qualified pilots utilizing the most recent developments in simulated flight equipment. Other responsibilities of this division consist of: coordinating the Air Age Education program with the University of Nebraska; airmen and aircraft registrations; and the responsibility of distributing safety bulletins.

     The Aviation Services Division is responsible for the inspection and licensing of all airports in this state. Airport management consultation is given to municipal and commercial facilities and coordination of proposed airport improvement projects between municipalities and the Department's Engineering Division.

     This division is responsible for aviation safety through the formulating of regulations consistent with federal rules, and the enforcement

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of these regulations including accident and violation investigation. Safety materials are provided pilots, operators and managers. Other responsibilities include departmental public relations and promotional projects; coordination of the Traffic Stimulation program; editing bimonthly publication of PIREPS; Aeronautical Chart and Airport Directory publication; registration of airmen and aircraft; coordinating the State's Air Marking program; Civil Defense program for aviation; and departmental reports.

     This division is charged with supervision and planning of construction for new airports, and conducts preliminary surveys, detail preparation of construction plans, specifications and estimates. Coordination of planning and construction with the Federal Aviation Agency is also accomplished by this division. The State Airport Engineer also acts as Assistant Director of Aeronautics.

     During the period July 1947 through June 1967 the division supervised the construction of airports totaling approximately $18 million for Nebraska municipalities. A total of twenty-two projects programmed for the FAA fiscal year of 1967 will total approximately $3 million.

     The Flight Standards Division is headed by the Chief Pilot for the department utilized as the principal pilot for state governmental transportation. This division also has the responsibilities of coordinating the Air Age Education program with the University of Nebraska, symposium type Pilot Upgrading program, maintenance of aircraft and aircraft records and automotive records maintenance.

     The responsibility of this division is to maintain the Nebraska State Aeronautical Radio and Teletypewriter System consisting of seven radio (VOR) communications and navigational facilities located at Amsworth, Alliance, Beatrice, Columbus, Hastings, Kearney, and McCook; thirteen Homers (H facilities) located at Alliance, Broken Bow, Burwell, Chadron, Columbus, Gordon, Hastings, Holdrege, Imperial, Mullen, Oshkosh, Scottsbluff, and Valentine. Eight stations are tied into the State Teletypewriter Weather Reporting System (Ainsworth, Alliance, Beatrice, Broken Bow, Hastings, Kearney, McCook and Valentine). This division is also responsible for the maintenance and installation of other air navigational facilities, including the two 75 mc fanmarkers at Norfolk and Kearney, lighted beacons on various airports, State Lighting program, surplus equipment and state weather equipment.

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AGRONOMY DIVISION

     The Agronomy Division is responsible for the facility and utility maintenance, commercial leasing, agricultural supervision and property inventory for the five state-owned airports, (Bruning, Fairmont, Harvard, McCook and Scribner). This division also handles aerial applicator waivers and the annual short course for aerial applicators dealing with new methods, laws and procedures for the application of material by aircraft.

     This division is responsible for carrying on Nebraska's unique Traffic Stimulation program and assisting in the handling of airline proceedings before the Civil Aeronautics Board.

     The members of the Nebraska Aeronautics Commission are appointed by the Governor, and they serve for five-year terms. They receive no salary but are reimbursed for their necessary expenses incurred in the performance of duties. The commission acts in an advisory capacity to the Director of Aeronautics and in addition has the following specific duties:

1. Supervises and directs the allocation of state and federal funds to be spent for construction and maintenance of airports.
2. Designates locations and sites for airports.
3. Authorizes the purchase of aircraft for the state.
4. Selects and approves pilots to be employed by the state.
5. Assists the Director in formulating the regulations and policies to be carried out by the department.

DEPARTMENT OF AGRICULTURE AND ECONOMIC DEVELOPMENT

Director-Elmer Schlaphoff, Waverly
Assistant Director-B. H. Jones, Omaha

	AGRICULTURE AND ECONOMIC DEVELOPMENT	349

BUREAUS AND DIVISIONS

Total number of employees as of August 1, 1966: Full time, 129; part time, 26.

Publications: Biennial Report; Eradicator News Letter; Nebraska Weeds; Nebraska on the March (monthly); Nebraska Agricultural Statistics (annual).

     The Department of Agriculture was one of the six administrative departments created by the Civil Administrative Code Law of 1919. As created it was divided into the following bureaus and divisions: Bureau of Animal Industry; Bureau of Food, Drugs and Oil; Bureau of Markets and Marketing; Division of Game and Fish; and Clerical and Records Division. Many changes have been made in the duties of the department since 1919. The Division of Game and Fish was separated from the department in 1929. Many regulatory functions have been added to its duties such as the collection of state gasoline and special fuels taxes, the regulation and licensing of petroleum transport trucks, and the administration of the Agricultural Refund Law which was passed in 1941. These are in addition to the original laws providing for the official inspection of all petroleum fuels being offered for sale within the state. Other additions are the licensing of livestock sale rings and the licensing of frozen food lockers. The name of the department was changed in 1933 to the Department of Agriculture and Inspection. Drug inspection was removed from the department in 1941. In 1945 the Division of Potato Development was added to the department.

     The 1947 Legislature added two new divisions to the department, the Cigarette Tax Division and the Nebraska Resources Division. It also

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made provision for the inspection of slaughterhouses by the Bureau of Animal Industry and for the testing of anti-freeze by the laboratory.

     Licensing of itinerant merchants was removed from the department in 1955. The 1955 Legislature passed laws that added two new divisions to the department, the Oil and Gas Severance Tax Division and the Division of Wheat Development, Utilization and Marketing.

     The 1957 Legislature created the Weather Control Commission and assigned its administrative functions to this department. This commission is inactive.

     The 1959 Legislature created the Agricultural Products Research Advisory Committee and authorized a special levy for the support of a program of agricultural products utilization research.

     In 1961 the Legislature created the Auction Livestock Market Board to assist the Bureau of Animal Industry in administering the auction market licensing laws. Corrective legislation in 1963 made several changes including a minor change of name to the Livestock Auction Market Board.

     Also in 1963, the department's name was changed to the Department of Agriculture and Economic Development.

     In 1965 the Legislature removed petroleum tax collection and inspection, along with Cigarette and Oil and Severance Tax collections from the Department of Agriculture and Economic Development. In other 1965 action the Unicameral established the Division of Dairy Trade Practices to prevent dairies from selling under cost and prohibit disruptive practices in the dairy industry.

     The 1965 Legislature created a Rural Rehabilitation Corporation Scholarship program to aid needy farm and ranch children in their education beyond the high school level. This program is financed by the return on interest on Nebraska funds being held by the federal government. In other action the Legislature created a Predatory Animal Control program to allow the department to contract with the United States Department of Interior to control predatory animals.

     The 1959 Legislature established the Nebraska Agricultural Products Research Advisory Committee to aid and advise the Director of the Department of Agriculture and Economic Development in carrying out research and development of new, additional and improved uses for agricultural products.

     The committee consists of four appointed members, serving fouryear terms, and two ex officio members. Of the members appointed by the Governor, one must be a landowner engaged in growing wheat,

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one a landowner growing corn, one a landowner raising livestock, and one a person of recognized business ability. Members, except the two ex officio, receive $20.00 a day and all necessary expenses but not to exceed $3,000 a person a year. The members of the committee are as follows:

     L. B. 722, which created the Advisory Committee, also provided for a levy of one-tenth mill per dollar assessed valuation on all tangible property. This brings in slightly over $300,000 per year, most of which is expended for laboratory research projects and market feasibility studies undertaken by outstanding research institutions.

     The earlier research program was widely diversified as to subject and location, with the University of Nebraska College of Agriculture and Home Economics high on the list of contracted institutions. Current work is along fewer lines than originally, being largely limited to extensions of already proven or extremely promising results, the goal being the final translation of Nebraska research findings into products or processes that can stand alone in competitive industry. The state has already acquired a number of patents and others are in process.

     Some of the successful and promising results of the program to date:

     (1) the "Nebraskit" emergency or survival biscuit; (2) a new water-soluble packaging film shortly to be produced from high amylose cornstarch in a plant being constructed at Central City; (3) new and more voluminous uses for starch in making paper; (4) "soft" detergents from various agricultural bases; and (5) the most recent development authorized by the committee was Freedom Meal. The cereal is the answer to President Johnson's call for a food for peace that is nutritious. It utilizes Nebraska farm products, thereby providing benefits for Nebraska farmers as well as the hungry people of the world.

     A small portion of research funds has been put into the experimental raising of promising new crops. Castorbeans, first raised in this state in 1960 with assistance from the research fund, now are on their own with producers and the oil processors working together on details such as prices for the beans, and total acreage that can be accommodated.

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