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DEVELOPING: EARNS-UNION PACIFIC

ADDS: HALLUCINOGENIC PLANT,

SECURITIES PROBE

OMAHA—Nebraska officials are investigating an alleged Ponzi scheme by a Grand Island company that recently filed bankruptcy listing up to $500 million in debt. Attorney General Jon Bruning on Tuesday authorized the State Patrol’s investigation into First Americans Insurance Service. The patrol is working with the departments of insurance and banking to piece together how more than $100 million disappeared. By Jean Ortiz. Eds: Moving on state and national news and financial lines.

XGR–PETITION DRIVES

LINCOLN—Questionable signature gathering could sideline an entire petition if Nebraska lawmakers adopt a bill introduced Wednesday. Sen. Kent Rogert of Tekamah said he wants to make sure questions about petition drives get resolved before voters consider an issue. But petition organizers say Rogert’s bill (LB575) would be just another roadblock thrown in the way of people trying to petition the government. By Anna Jo Bratton.

XGR–HALLUCINOGENIC PLANT

LINCOLN—Scott Ferguson of Lincoln told state lawmakers Wednesday that he’s smoked or chewed the plant Salvia divinorum a dozen times in the past five years, and called it “a unique visionary substance.” He disagreed with those who said it was dangerous, and he said a law banning it was premature and unnecessary. By Anna Jo Bratton.

With:

— XGR–HANDICAP PARKING—Fines for illegally parking in spots reserved for the handicapped could rise by hundreds of dollars in Nebraska.

— XGR–GANG INITIATION—A Nebraska lawmaker wants to fight gang activity by making their initiation customs illegal.

— XGR–SMOKING BAN—Nebraskans could vote to allow smoking in restaurants and bars in their cities or counties despite a statewide smoking ban, under a bill state lawmakers will consider.

— NATIONAL POPULAR VOTE—Nebraska lawmakers may consider linking the state’s Electoral College votes to the national popular vote when electing the president.

— ABORTION PREVENTION—A Nebraska lawmaker opposed to abortion thinks he has come up with a way to help prevent them in the state.

— STATE VEHICLES—A Nebraska lawmaker concerned that state employees are using state-owned cars inappropriately wants to track them with satellite technology.

— PET INSPECTIONS—Pet stores would have to cut through red tape to sell dogs and cats, under a proposal meant to put unsafe puppy mills out of business.

— SENATE COMMITTEES—Republican Mike Johanns will serve on the Senate’s Agriculture Committee, among other assignments. By Anna Jo Bratton.

— SPREADING AIDS—Having sex with the intention of spreading a deadly disease like AIDS would be a felony in Nebraska under a proposal in the state Legislature.

— GUN PENALTIES—A Nebraska lawmaker is pushing back against rising gun violence in Omaha with a measure that would implement stiff, mandatory prison sentences.

BUSINESS:

EARNS-UNION PACIFIC

OMAHA—Union Pacific Corp. will release its fourth-quarter earnings report Thursday morning. Investors will be looking to see how much shipping volume has dropped at the railroad and how profitable Union Pacific remains. By Business Writer Josh Funk Developing from 7 a.m. CST release of report.

BLUES-NEW COMPANY

FARGO, N.D.—Blue Cross Blue Shield of North Dakota says it’s joining Blue Cross and Blue Shield of Nebraska in a new health care technology company that is expected to bring jobs to Fargo and Omaha. A Blues statement says the Fargo-based company will be called CoreLink Administrative Solutions and will process health claims from North Dakota, Wyoming and Nebraska.

ALSO:

— EATON-CUTS—Industrial parts maker Eaton Corp. is reportedly slashing another 5,200 jobs, including some in Nebraska.

— SPEEDWAY MOTORS-ACQUISITION—A Lincoln-based manufacturer and retailer of racing products has announced that it’s buying the street rod-related assets of Wallingford, Conn.-based Total Performance, Inc.

SPORTS:

T25-NEBRASKA-OKLAHOMA

NORMAN—No. 6 Oklahoma (17-1, 3-0 Big 12) attempts to become the nation’s first team with 18 wins Wednesday night when it hosts Nebraska (12-4, 2-1). The Sooners have won five straight games. Developing from 8 p.m. start. By Jeff Latzke.

ALSO GETTING ATTENTION:

— SALMONELLA RECALL—Grocery store operator Nash Finch is recalling bakery products distributed in Nebraska and seven other states because they included peanut butter that may be contaminated with salmonella.

— AIR FORCE CYBERCOMMAND—Air Force officials have released a list of six bases that are finalists to house the new Cyberspace Command. Offutt Air Force Base near Omaha is one of the finalists.

— DAUGHTER CHARGED—North Platte police have arrested a 70-year-old woman for allegedly abusing her 91-year-old mother.

— FIRE FATALITY—Lincoln Fire Chief Niles Ford says a 65-year-old woman has died in a fire in a high-rise apartment building near the Capitol.

— SEX CHARGE—A 37-year-old man from Mitchell accused of having sex with a 15-year-old girl has pleaded no contest to attempted second-degree sexual assault.

— COMMUNITY COLLEGE LAWSUIT—Western Nebraska Community College in Scottsbluff is suing the company it says improperly installed a water softening system in a dorm, as well as the company that built the dorm.

— COUNCILMAN ARRESTED—Police have arrested a Beatrice City Councilman on suspicion of driving under the influence.

— CUBAN CIGAR SMUGGLING—A southwest Florida man with Nebraska ties has been sentenced to three years of probation for smuggling 42 bottles of rum and more than 28,000 Cuban cigars into the United States.

— SEX ASSAULT-DEATH—Scottsbluff police have found the body of a Mitchell man who was set to appear in court on child sex assault charges.

— CO-OP BURGLARIES—Lancaster County authorities are investigating a rash of break-ins at farmers cooperatives.

— DAUGHTER CHARGED—North Platte police have arrested a 70-year-old woman for allegedly abusing her 91-year-old mother.

— CROP INSURANCE FRAUD—A 66-year-old Loup City man has been sentenced to one year and one day in federal prison after pleading guilty to reporting false information to the Federal Crop Insurance Corp.

— ALEGENT CUTS—Nebraska’s largest health care company, Alegent Health, has announced it will cut nearly 300 jobs by March 3.

The AP, Omaha.

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