The Franklin Credit Union Investigating Committee (Nebraska Legislature, 1989-91)
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The Nebraska legislature voted, on the record, that its own investigators had found evidence of child abuse tied to the credit union.
Who they are
The Franklin Credit Union Investigating Committee, set up by the Nebraska Legislature on 11 January 1989.
What they do
Seven senators, subpoena power, $100,000, chaired by Loran Schmit with Ernie Chambers as his deputy.
How it works
Its brief was the collapse of the credit union and what went with it, 'including alleged physical and sexual abuse of foster and adopted children'. A year later the legislature voted 37-3 to continue it and add $200,000, and the resolution said why: 'the committee has uncovered evidence which would tend to substantiate that child abuse, homosexual activity, and drug abuse were associated with the credit union, its principals, and others.'
Why it matters
Two things people get wrong. John DeCamp, whose book made the case famous, was never on this committee — he had left the legislature in 1987. And the famous suppressed final report was never written: the committee was only ever required to produce an interim report, delivered two of them in January 1990, and then simply lapsed when that legislature ended.
The engine's record — word for word
[Report #193] Created by LR 5, 91st Legislature 1st Session, adopted 11 January 1989 by 32-0 and signed by the Speaker the following day. NOTE: a differently-numbered LR 5 of the 90th Legislature's 1st Special Session (18 November 1988) directed the Executive Board to investigate and did NOT create the committee; the two are routinely conflated, and the 'December 1988' creation date in circulation is unsupported by any Journal.
MEMBERSHIP, seven: Loran Schmit (chairperson), Ernie Chambers (vice-chairperson), Jerome Warner, Bernice Labedz, Dan Lynch, Dennis Baack, Jim McFarland. JOHN DeCAMP WAS NOT A MEMBER — he had left the Legislature in 1987, before the credit union failed. He appears in the Journals of this period in the registered-lobbyist lists, not the roll call. His actual roles were private attorney, lobbyist, later appellate counsel to Alisha Owen and counsel to Paul Bonacci, and author of The Franklin Cover-up (1992). Chambers resigned the vice-chairmanship in July 1989.
MANDATE, from the resolution: investigation of the credit union failure and associated issues 'including alleged physical and sexual abuse of foster and adopted children', to determine '(1) What happened; (2) How it happened; (3) Who was involved and responsible...; and (4) What could or should have been done, and by whom, to prevent it.' Subpoena power; $100,000 appropriated. Only an interim summary report was ever required.
WHAT THE LEGISLATURE ITSELF ADOPTED. LR 232, adopted 4 January 1990 by 37-3, continued the committee and added $200,000. Its recital: 'WHEREAS, the committee has uncovered evidence which would tend to substantiate that child abuse, homosexual activity, and drug abuse were associated with the credit union, its principals, and others'.
THE 'SUPPRESSED FINAL REPORT' — there was never a final report to suppress. Two reports were received on 3 January 1990, an interim and an annual report; the texts are not available online. The phrase 'final report' appears nowhere in the 1988-1991 Journals in connection with this committee. The committee was not disbanded by vote: it lapsed with the 91st Legislature and was struck from the rules on 14 January 1991 by 28-0.
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