LB 474 — Change and eliminate provisions relating to installment sales and installment loans and the Nebraska Money Transmitters Act, rename the Nebraska Installment Sales Act, transfer provisions of and eliminate the Nebraska Installment Loan Act, and change provisions of the Medicaid Access and Quality Act

The rate of interest on any loan of money shall be determined and computed upon the assumption that the debt will be paid according to the agreed terms and in the event the loan is paid or collected by court action prior to the term of the loan, any payment charged, received, or taken as an advance or forbearance which is in the nature of and taken into account in the calculation of interest, shall be spread over the stated term of the loan for the purpose of determining the rate of interest.

Any amounts paid or contracted to be paid by persons other than the borrower shall not be considered interest and shall not be taken into account in the calculation of interest.

Interest may be paid on escrow accounts held for the payment of taxes, insurance, and similar payments, if agreed to in writing by the borrower and association.

Loans may be made by an association under a license granted it pursuant to the Nebraska Installment Loan and Sales Act, to borrowing members whose loans are secured by real estate, to the same extent and in the same amount as such loans may lawfully be made to nonborrowing members.

The association shall furnish a loan settlement statement to each borrower, -2- LB474 LB474 2025 indicating in detail the charges and fees such borrower has paid or obligated himself or herself to pay to the association or to any other person in connection with such loan.

A copy of such statement shall be retained in the records of the association.

An association may charge and receive interest, on property improvement loans including loans made under Title I of the National Housing Act, as amended, and unsecured loans authorized in section 5(c) of the Home Owners' Loan Act, as amended.

Sec.

3.

Section 8-601, Reissue Revised Statutes of Nebraska, is amended to read:

8-601 The Director of Banking and Finance may employ deputies, examiners, attorneys, and other assistants as may be necessary for the administration of the provisions and purposes of the Credit Union Act, Delayed Deposit Services Licensing Act, Interstate Branching and Merger Act, Interstate Trust Company Office Act, Nebraska Bank Holding Company Act of 1995, Nebraska Banking Act, Nebraska Financial Innovation Act, Nebraska Installment Loan and Sales Act, Nebraska Installment Sales Act, Nebraska Money Transmitters Act, Nebraska Trust Company Act, and Residential Mortgage Licensing Act;

Chapter 8, articles 3, 5, 6, 7, 8, 13, 14, 15, 16, 19, 20, 24, and 25;

and Chapter 45, articles 1 and 2.

The director may levy upon financial institutions, namely, the banks, trust companies, building and loan associations, savings and loan associations, savings banks, digital asset depositories, and credit unions, organized under the laws of this state, and holding companies, if any, of such financial institutions, an assessment each year based upon the asset size of the financial institution, except that in determining the asset size of a holding company or digital asset depository, the assets of any financial institution or holding company otherwise assessed pursuant to this section and the assets of any nationally chartered financial institution shall be excluded.

The assessment for digital asset depositories under the Nebraska Financial Innovation Act shall be in an amount to offset the costs of supervision and administration of the Nebraska Financial Innovation Act.

The assessment shall be a sum determined by the director in accordance with section 8-606 and approved by the Governor.

Sec.

4.

Section 8-602, Revised Statutes Cumulative Supplement, 2024, is amended to read:

8-602 The Director of Banking and Finance shall charge and collect fees for certain services rendered by the Department of Banking and Finance according to the following schedule:

(1) For filing and examining articles of incorporation, articles of association, and bylaws, except credit unions, one hundred dollars, and for credit unions, fifty dollars;

(2) For filing and examining an amendment to articles of incorporation, articles of association, and bylaws, except credit unions, fifty dollars, and for credit unions, fifteen dollars;

(3) For issuing to banks, credit card banks, trust companies, and building and loan associations a charter, authority, or license to do business in this state, a sum which shall be determined on the basis of one dollar and fifty cents for each one thousand dollars of authorized capital, except that the minimum fee in each case shall be two hundred twenty-five dollars;

(4) For issuing to digital asset depositories under the Nebraska Financial Innovation Act a charter to do business in this state, the sum of fifty thousand dollars;

(5) For issuing an executive officer's or loan officer's license, fifty dollars at the time of the initial license, except credit unions for which the fee shall be twenty-five dollars at the time of the initial license;

(6) For affixing certificate and seal, five dollars;

(7) For making substitution of securities held by it and issuing a receipt, fifteen dollars;

(8) For issuing a certificate of approval to a credit union, ten dollars;

(9) For investigating the applications required by sections 8-117, 8-120, 8-331, and 8-2402 and the documents required by section 8-201, the cost of such examination, investigation, and inspection, including all legal expenses and the cost of any hearing transcript, with a minimum fee under (a) sections 8-117, 8-120, and 8-2402 of two thousand five hundred dollars, (b) section 8-331 of two thousand dollars, and (c) section 8-201 of one thousand dollars.

The department may require the applicant to procure and give a surety bond in such principal amount as the department may determine and conditioned for the payment of the fees provided in this subdivision;

(10) For the handling of pledged securities as provided in sections 8-210 , 8-2727, and 8-3022 at the time of the initial deposit of such securities, one dollar and fifty cents for each thousand dollars of securities deposited and a like amount on or before January 15 each year thereafter.

The fees shall be paid by the entity pledging the securities;

(11) For investigating an application to move its location within the city or village limits of its original license or charter for banks, trust companies, and building and loan associations, two hundred fifty dollars;

(12) For investigating an application under subdivision (6) of section 8-115.01, five hundred dollars;

(13) For investigating an application for approval to establish or acquire a branch pursuant to section 8-157 or 8-2103 or to establish a mobile branch pursuant to section 8-157, two hundred fifty dollars;

(14) For investigating a notice of acquisition of control under subsection (1) of section 8-1502, five hundred dollars;

-3- LB474 LB474 2025 (15) For investigating an application for a cross-industry merger under section 8-1510, five hundred dollars;

(16) For investigating an application for a merger of two state banks, a merger of a state bank and a national bank in which the state bank is the surviving entity, or an interstate merger application in which the Nebraska state chartered bank is the resulting bank, five hundred dollars;

(17) For investigating an application or a notice to establish a branch trust office, five hundred dollars;

(18) For investigating an application or a notice to establish a representative trust office, five hundred dollars;

(19) For investigating an application to establish a credit union branch under section 21-1725.01, two hundred fifty dollars;

(20) For investigating an applicant under section 8-1513, five thousand dollars;

(21) For investigating a request to extend a conditional bank charter under section 8-117, one thousand dollars;

and (22) For investigating an application to establish a branch office, for a merger or an acquisition of control, or for a request to extend a conditional charter for a digital asset depository, five hundred dollars.

Sec.

5.

Section 8-820.01, Reissue Revised Statutes of Nebraska, is amended to read:

8-820.01 It is hereby declared to be the public policy of the State of Nebraska that for purposes of applying the federal most-favored-lender doctrine, the bank credit card rate contained in section 8-820 is not comparable or analogous to the small loan rate found in section 70 of this act sections 45-1024 and section 45-350 45-1025.

The Legislature finds that the institutions making small loans and the institutions administering a bank credit card are categorically different.

The transactions carried on by these institutions are categorically different.

The Legislature finds that small loan borrowers and bank credit card users are not synonymous or comparable.

In establishing a small loan rate, the Legislature has recognized a risk factor that is different and greater than other financial transactions and therefor justifies the charging of a higher interest rate than installment loans, personal loans, retail revolving credit plans, or bank credit card interest rates.

Sec.

6.

Section 8-2701, Reissue Revised Statutes of Nebraska, is amended to read:

8-2701 Sections 8-2701 to 8-2742 8-2747 shall be known and may be cited as the Nebraska Money Transmitters Act.

Sec.

7.

Section 8-2702, Reissue Revised Statutes of Nebraska, is amended to read:

8-2702 For purposes of the Nebraska Money Transmitters Act:

, the definitions found in sections 8-2703 to 8-2723 shall be used.

(1) Acting in concert means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement;

(2) Applicant means a person filing an application for a license under the Nebraska Money Transmitters Act;

(3) Authorized delegate means a person designated by the licensee to engage in money transmission on behalf of the licensee;

(4) Average daily money transmission liability means the amount of the licensee's outstanding money transmission obligations in this state at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time.

For purposes of calculating average daily money transmission liability under the Nebraska Money Transmitters Act for any licensee required to do so, the given period of time shall be each calendar quarter;

(5) Closed loop stored value means stored value that is redeemable by the issuer of such stored value only for goods or services provided by the issuer or affiliates of such issuer or franchisees of the issuer or affiliates of such franchisees, except to the extent the stored value is required by applicable law to be redeemable in cash for the cash value of the stored value;

(6)(a) Control means:

(i) Direct or indirect power over the vote of at least twenty-five percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee;

(ii) The power to elect or appoint a majority of key individuals, executive officers, managers, directors, trustees, or other persons that have managerial authority of a person in control of a licensee;

or (iii) The power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.

(b) For purposes of determining the percentage of a person controlled by any other person, the person's interest shall be aggregated with the interest of any other immediate family member, including the person's spouse, parents, children, siblings, mothers-in-law, fathers-in law, sons-in-law, daughters-in- law, brothers-in-law, and sisters-in-law, and any other person who shares such person's residence;

(7) Department means the Department of Banking and Finance;

(8) Director means the Director of Banking and Finance;

(9) Eligible rating means a credit rating of any of the three highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers such as plus or minus for Standard and -4- LB474 LB474 2025 Poor's Corporation or the equivalent for any other eligible rating service.

Long-term credit ratings are deemed eligible if the rating is equal to A- or higher by Standard and Poor's Corporation, or the equivalent from any other eligible rating service.

Short-term credit ratings are deemed eligible if the rating is equal to or higher than A-2 or SP-2 by Standard and Poor's Corporation or the equivalent from any other eligible rating service.

In the event that ratings differ among eligible rating services, the highest rating shall apply when determining whether a security bears an eligible rating.

(10) Eligible rating service means any nationally recognized statistical rating organization approved by the Securities and Exchange Commission and any other organization designated by the director by rule or order;

(11) Federally insured depository financial institution means a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company organized under the laws of the United States or any state of the United States, when such bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company has federally insured deposits;

(12) In this state means at a physical location within this state for a transaction requested in person.

For a transaction requested electronically or by telephone, the provider of money transmission may determine if the person requesting the transaction is in this state by relying on other information provided by such person regarding the location of the individual's residential address or the entity's principal place of business or other physical address location and any records associated with such person that the provider of money transmission may have that indicate the location of the individual's residential address or the entity's principal place of business or other physical address location, including, but not limited to, an address associated with an account;

(13) Individual means a natural person;

(14) Key individual means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director, or trustee;

(15) Licensee means a person licensed under the Nebraska Money Transmitters Act;

(16) Material litigation means litigation, that according to United States generally accepted accounting principles, is significant to a person's financial health and would be required to be disclosed in the person's annual audited financial statements, report to shareholders, or similar records;

(17) Model Money Transmission Modernization Act means the Model Money Transmission Modernization Act approved for state adoption by the Conference of State Bank Supervisors Board of Directors that sets nationwide standards, including net worth, surety bond, and permissible investments requirements, to modernize the supervision and regulation of money transmitters;

(18) Monetary value means a medium of exchange, whether or not redeemable in money;

(19) Money means a medium of exchange that is authorized or adopted by the United States or a foreign government.

Money includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments;

(20)(a) Money transmission means any of the following:

(i) Selling or issuing payment instruments to a person located in this state;

(ii) Selling or issuing stored value to a person located in this state;

and (iii) Receiving money for transmission from a person located in this state.

(b) Money transmission includes payroll processing services.

Money transmission does not include the provision solely of online or telecommunications services or network access;

(21) Multistate licensing process means any agreement entered into by and among state regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations, or notice and information requirements for a change of key individuals;

(22) Nationwide Mortgage Licensing System and Registry means the Nationwide Mortgage Licensing System and Registry, also known as the Nationwide Multistate Licensing System and Registry, developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry LLC, or any successor or affiliated entity, for the licensing and registration of persons in financial services industries;

(23)(a) Outstanding money transmission obligation means:

(i) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee or has been escheated in accordance with applicable abandoned property laws;

or (ii) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender or has been escheated in accordance with applicable abandoned property laws.

(b) For purposes of subdivision (23) of this section, in the United States -5- LB474 LB474 2025 includes, to the extent applicable, a person in any state, territory, or possession of the United States;

the District of Columbia;

the Commonwealth of Puerto Rico;

or a United States military installation that is located in a foreign country;

(24) Payment instrument means a written or electronic check, draft, money order, traveler's check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable.

Payment instrument does not include stored value or any instrument that:

(a) Is redeemable by the issuer only for goods or services provided by the issuer or affiliates of such issuer or franchisees of the issuer or affiliates of such franchisees except to the extent the instrument is required by applicable law to be redeemable in cash for the cash value of the instrument;

or (b) Is not sold publicly but issued and distributed as part of a loyalty, rewards, or promotional program;

(25) Payroll processing services means receiving money for transmission pursuant to a contract with a person to deliver wages or salaries, make payment of payroll taxes to state and federal agencies, make payments relating to employee benefit plans, or make distributions of other authorized deductions from wages or salaries.

Payroll processing services does not include an employer performing payroll processing services on the employer's own behalf or on behalf of an affiliate of the employer;

(26) Person means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the director;

(27) Receipt means a paper receipt, electronic record, or other written confirmation;

(28) Receiving money for transmission or money received for transmission means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means;

(29) Remit means to make direct payments of money to a licensee or a representative of a licensee authorized to receive money or to deposit money in a bank in an account specified by the licensee;

and (30) Stored value means monetary value representing a claim against the issuer of the stored value evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services.

Stored value includes, but is not limited to, prepaid access as defined by 31 C.F.R.

1010.100.

Notwithstanding the foregoing, stored value does not include a payment instrument or closed loop stored value, or stored value not sold publicly but issued and distributed as part of a loyalty, rewards, or promotional program.

Sec.

8.

Section 8-2703, Reissue Revised Statutes of Nebraska, is amended to read:

8-2703 The Nebraska Money Transmitters Act does not apply to:

(1) An operator of a payment system to the extent that such operator provides processing, clearing, or settlement services, between or among persons exempted from the Nebraska Money Transmitters Act under this section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearinghouse transfers, or similar funds transfers;

(2) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission, provided to the payor by the payee, provided that:

(a) There exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the behalf of the payee;

(b) The payee holds the agent out to the public as accepting payments for goods or services on the behalf of the payee;

and (c) Payment for the goods or services is treated as received by the payee upon receipt by the agent so that the payor's obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee;

(3) A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender, and the sender's designated recipient, provided that the entity:

(a) Is properly licensed or exempt from licensing requirements of the Nebraska Money Transmitters Act;

(b) Provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction;

and (c) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the designated recipient of the sender;

(4) The United States or any department, agency, or instrumentality thereof or any agent of the United States or any department, agency, or instrumentality thereof;

(5) Money transmission by the United States Postal Service or by an agent of the United States Postal Service;

(6) A state, county, or city or any governmental agency, political subdivision, or instrumentality of a state, or any agent of a state, county, or city or any governmental agency, political subdivision, or instrumentality of a -6- LB474 LB474 2025 state;

(7) A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Banking Act of 1978, corporation organized pursuant to the Bank Service Company Act, or corporation organized under the Edge Act;

(8) Electronic funds transfer of governmental benefits for a federal, state, county, or other governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or on behalf of a state, county, or other governmental subdivision, agency, or instrumentality thereof;

(9) A board of trade designated as a contract market under the Commodity Exchange Act or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of such person's operation as or for such a board;

(10) A person registered as a futures commission merchant under the federal commodities laws to the extent of such person's operation as a merchant;

(11) A person registered as a securities broker-dealer under federal or state securities laws to the extent of such person's operation as a broker- dealer;

(12) An individual employed by a licensee, authorized delegate, or any person exempted from the licensing requirements of the Nebraska Money Transmitters Act when acting within the scope of employment, under the supervision of the licensee, authorized delegate, or exempted person, as an employee and not as an independent contractor;

(13) A person expressly appointed as a third-party service provider to or agent of an entity exempt under subdivision (7) of this section, solely to the extent that:

(a) Such service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform;

and (b) The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser's or holder's money or monetary value by the service provider or agent;

(14) A person, firm, corporation, or association licensed in this state and acting within this state within the scope of a license:

(a) As a collection agency pursuant to the Collection Agency Act;

(b) As a credit services organization pursuant to the Credit Services Organization Act;

or (c) To engage in the debt management business pursuant to sections 69-1201 to 69-1217;

(15) A charter issued under the Nebraska Financial Innovation Act;

and (16) A person exempt by regulation or order if the director finds such exemption to be in the public interest and that the regulation of such person is not necessary for the purposes of the Nebraska Money Transmitters Act.

Applicant means a person filing an application for a license under the Nebraska Money Transmitters Act.

Sec.

9.

Section 8-2704, Reissue Revised Statutes of Nebraska, is amended to read:

8-2704 The director may require that any person claiming to be exempt from licensing under the Nebraska Money Transmitters Act pursuant to section 8-2703 provide information and documentation to the director demonstrating that such person qualifies for exemption.

Authorized delegate means an entity designated by the licensee or an exempt entity under the Nebraska Money Transmitters Act to engage in the business of money transmission on behalf of the licensee or exempt entity.

Sec.

10.

Section 8-2705, Reissue Revised Statutes of Nebraska, is amended to read:

8-2705 (1) In order to carry out the purposes of the Nebraska Money Transmitters Act, the director may, subject to subsections (1) and (2) of section 8-2706:

(a) Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations in order to improve efficiencies and reduce regulatory burden by standardizing methods or procedures and sharing resources, records, or related information obtained under the Nebraska Money Transmitters Act;

(b) Use, hire, contract, or employ analytical systems, methods, or software to examine or investigate any person subject to the Nebraska Money Transmitters Act;

(c) Accept, from other state or federal governmental agencies or officials, licensing, examination, or investigation reports made by such other state or federal governmental agencies or officials;

and (d) Accept audit reports made by an independent certified public accountant or other qualified third-party auditor for an applicant or licensee and incorporate the audit report in any report of examination or investigation.

(2) The director shall have the broad administrative authority to administer, interpret, and enforce the Nebraska Money Transmitters Act, to adopt and promulgate rules or regulations implementing the act, and to recover the cost of administering and enforcing the act by imposing and collecting -7- LB474 LB474 2025 proportionate and equitable fees and costs associated with applications, examinations, investigations, and other actions required to achieve the purposes of the act.

Breach of security of the system means unauthorized acquisition of data that compromises the security, confidentiality, or integrity of the information maintained by the Nationwide Mortgage Licensing System and Registry, its affiliates, or its subsidiaries.

Sec.

11.

Section 8-2706, Reissue Revised Statutes of Nebraska, is amended to read:

8-2706 (1) Except as otherwise provided in subsection (2) of this section, all information or reports obtained by the director from an applicant, licensee, or authorized delegate, related to an examination or investigation, on behalf of, or for the use of the director, are not public record and are not subject to disclosure pursuant to sections 84-712 to 84-712.09.

(2) The director may disclose information not otherwise subject to disclosure under subsection (1) of this section to a representative of state or federal agencies who promises in a record that the representative will maintain the confidentiality of the information or if the director finds that the disclosure is reasonably necessary for the protection and interest of the public pursuant to sections 84-712 to 84-712.09.

(3) This section does not prohibit the director from disclosing to the public a list of all licensees or the aggregated financial or transactional data concerning those licensees.

(4) Information contained in the records of the department that is public record and may be made available to the public either on the department's website, upon receipt by the department of a written request, or in the Nationwide Mortgage Licensing System and Registry shall include:

(a) The name, business address, telephone number, and unique identifier of any licensee;

(b) The business address of any registered agent of a licensee for service;

(c) The name, business address, and telephone number of all authorized delegates;

(d) The terms of, or a copy of, any bond filed by a licensee, provided that confidential information, including, but not limited to, prices and fees for such bond is redacted;

(e) Copies of any nonconfidential final orders of the department relating to any violation of the Nebraska Money Transmitters Act or the rules and regulations implementing the act;

and (f) Imposition of an administrative fine or penalty under the act.

Control means the power, directly or indirectly, to direct the management or policies of a licensee, whether through ownership of securities, by contract, or otherwise.

Any person who (1) has the power to elect a majority of executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or any person in control of a licensee, (2) directly or indirectly has the right to vote ten percent or more of a class of stock or directly or indirectly has the power to sell or direct the sale of ten percent or more of a class of stock, (3) in the case of a limited liability company, is a managing member, or (4) in the case of a partnership, has the right to receive, upon dissolution, or has contributed, ten percent or more of the capital, is presumed to control that licensee.

Sec.

12.

Section 8-2707, Reissue Revised Statutes of Nebraska, is amended to read:

8-2707 (1) The director may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by the Nebraska Money Transmitters Act or by a rule or regulation adopted and promulgated or an order issued under the act as reasonably necessary or appropriate to administer and enforce the act, rules and regulations implementing the act, or other applicable law, including the Bank Secrecy Act and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.

The director may:

(a) Conduct an examination as the director may reasonably require;

(b) Conduct an examination in conjunction with an examination conducted by representatives of other state agencies or agencies of another state or of the federal government;

(c) Accept the examination report of another state agency or an agency of another state or of the federal government, or a report prepared by an independent accounting firm, which on being accepted, is considered for all purposes as an official report of the director;

and (d) Summon and examine under oath a key individual or employee of a licensee or authorized delegate and require the person to produce records regarding any matter related to the condition and business of the licensee or authorized delegate.

(2) A licensee or authorized delegate shall provide, and the director shall have full and complete access to, all records the director may reasonably require to conduct a complete examination.

The records shall be provided at a location and in a format specified by the director.

The director may utilize multistate record production standards and examination procedures when such standards will reasonably achieve the requirements of this subsection.

(3) Upon receipt by a licensee, an authorized delegate, or any other person of a notice of investigation or inquiry request for information from the department, the licensee, authorized delegate, or other person shall respond within twenty-one calendar days after receipt.

Failure to respond is a -8- LB474 LB474 2025 violation of the Nebraska Money Transmitters Act.

Each day a licensee, authorized delegate, or other person fails to respond shall constitute a separate violation of the act.

(4) If the director finds, after notice and opportunity for hearing in accordance with the Administrative Procedure Act, that any person has violated the Nebraska Money Transmitters Act pursuant to subsection (3) of this section, the director may order such person to pay an administrative fine of not more than five thousand dollars for each separate violation and the costs of investigation.

(5) Unless otherwise directed by the director, a licensee shall pay all costs reasonably incurred in connection with an examination of the licensee or the licensee's authorized delegates.

Controlling person means any person in control of a licensee.

Sec.

13.

Section 8-2708, Reissue Revised Statutes of Nebraska, is amended to read:

8-2708 (1) The director is authorized to participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank Supervisors and Money Transmitter Regulators Association and any affiliates and successors thereof for all licensees that hold licenses in this state and other states.

As a participant in multistate supervision, the director may:

(a) Cooperate, coordinate, and share information with other state and federal regulators in accordance with section 8-2706;

(b) Enter into written cooperation, coordination, or information-sharing contracts or agreements with organizations, the membership of which is made up of state or federal governmental agencies;

and (c) Cooperate, coordinate, and share information with organizations, the membership of which is made up of state or federal governmental agencies, provided that the organizations agree in writing to maintain the confidentiality and security of the shared information in accordance with section 8-2706.

(2) Nothing in this section constitutes a waiver of the director's authority to conduct an examination or investigation or otherwise take independent action authorized by the Nebraska Money Transmitters Act or a rule or regulation adopted and promulgated or an order issued under the act to enforce compliance with applicable state or federal law.

(3) A joint examination or investigation, or acceptance of an examination or investigation report, does not waive an examination assessment provided for in the Nebraska Money Transmitters Act.

Department means the Department of Banking and Finance.

Sec.

14.

Section 8-2709, Reissue Revised Statutes of Nebraska, is amended to read:

8-2709 (1) A person may not engage in the business of money transmission or advertise, solicit, or hold such person out as providing money transmission unless the person is licensed under the Nebraska Money Transmitters Act.

(2) Subsection (1) of this section does not apply to:

(a) A person that is an authorized delegate of a licensee under the Nebraska Money Transmitters Act acting within the scope of authority conferred by a written contract with the licensee;

or (b) A person that is exempt pursuant to section 8-2703 and does not engage in money transmission outside the scope of such exemption.

(3) A license issued under section 8-2713 is not transferable or assignable.

Director means the Director of Banking and Finance.

Sec.

15.

Section 8-2710, Reissue Revised Statutes of Nebraska, is amended to read:

8-2710 (1) To establish consistent licensing between Nebraska and other states, the director is authorized to:

(a) Implement all licensing provisions of the Nebraska Money Transmitters Act in a manner that is consistent with other states that have adopted a version of the Model Money Transmission Modernization Act or multistate licensing processes;

and (b) Participate in nationwide protocols for licensing cooperation and coordination among state regulators provided that such protocols are consistent with the Nebraska Money Transmitters Act.

(2) In order to fulfill the purposes of the Nebraska Money Transmitters Act, the director is authorized to establish relationships or contracts with the Nationwide Mortgage Licensing System and Registry or other entities designated by the Nationwide Mortgage Licensing System and Registry to enable the director to:

(a) Collect and maintain records;

(b) Coordinate multistate licensing processes and supervision processes;

(c) Process fees;

and (d) Facilitate communication between Nebraska and licensees or other persons subject to the Nebraska Money Transmitters Act.

(3) The director is authorized to utilize the Nationwide Mortgage Licensing System and Registry for all aspects of licensing in accordance with the Nebraska Money Transmitters Act, including, but not limited to, license applications, applications for acquisitions of control, surety bonds, reporting, criminal history background checks, credit checks, fee processing, and examinations.

(4) The director is authorized to utilize the Nationwide Mortgage Licensing System and Registry forms, processes, and functionalities in -9- LB474 LB474 2025 accordance with the Nebraska Money Transmitters Act.

In the event the Nationwide Mortgage Licensing System and Registry does not provide functionality, forms, or processes for a provision of the act, the director is authorized to implement the requirements in a manner that facilitates uniformity with respect to licensing, supervision, reporting, and regulation of licensees which are licensed in multiple jurisdictions.

(5) The director is authorized to adopt and promulgate rules and regulations, or issue an order, to establish requirements for participation by applicants and licensees in the Nationwide Mortgage Licensing System and Registry upon the department's determination that each requirement is consistent with law, public interest, and the purposes of this section.

Electronic instrument means a card or other tangible object for the transmission or payment of money that contains a microprocessor chip, magnetic strip, or other means for the storage of information, that is prefunded, and the value of which is decremented upon each use.

Electronic instrument does not include a card or other tangible object that is redeemable by the issuer or its affiliates in goods or services of the issuer or its affiliates.

Sec.

16.

Section 8-2711, Reissue Revised Statutes of Nebraska, is amended to read:

8-2711 (1) Applicants for a license shall apply in a form and in a medium as prescribed by the director.

Each such form shall contain content as set forth by rule, regulation, instruction, or procedure of the director and may be changed or updated by the director in accordance with applicable law in order to carry out the purposes of the Nebraska Money Transmitters Act and maintain consistency with Nationwide Mortgage Licensing System and Registry licensing standards and practices.

The application shall state or contain, as applicable:

(a) The legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting the applicant's business;

(b) A list of any criminal conviction of the applicant and any material litigation in which the applicant has been involved in the ten-year period next preceding the submission of the application;

(c) A description of any money transmission previously provided by the applicant and the money transmission that the applicant seeks to provide in this state;

(d) A list of the applicant's proposed authorized delegates and the locations in this state where the applicant and its authorized delegates propose to engage in money transmission;

(e) A list of other states in which the applicant is licensed to engage in money transmission and any license revocation, suspension, or other disciplinary action taken against the applicant in another state;

(f) Information concerning any bankruptcy or receivership proceeding affecting the applicant or a person in control of an applicant;

(g) A sample form of contract for authorized delegates, if applicable;

(h) A sample form of payment instrument or stored value, as applicable;

(i) The name and address of any federally insured depository financial institution through which the applicant plans to conduct money transmission;

and (j) Any other information the Director or the Nationwide Mortgage Licensing System and Registry reasonably requires with respect to the applicant.

(2) If an applicant is a corporation, limited liability company, partnership, or other legal entity, the applicant shall also provide:

(a) The date of the applicant's incorporation or formation and state or country of incorporation or formation;

(b) If applicable, a certificate of good standing from the state or country in which the applicant was incorporated or formed;

(c) A brief description of the structure or organization of the applicant, including any parents or subsidiaries of the applicant, and whether any such parents or subsidiaries are publicly traded;

(d) The legal name, any fictitious or trade name, all business and residential addresses, and the employment, as applicable, of each key individual and person in control of the applicant in the ten-year period preceding the submission of the application;

(e) A list of any criminal convictions and material litigation for a person in control of the applicant that is not an individual that has been involved with the applicant in the ten-year period preceding the submission of the application;

(f) A copy of audited financial statements of the applicant for the most recent fiscal year and for the two-year period preceding the submission of the application or, if determined to be acceptable to the director, certified unaudited financial statements for the most recent fiscal year or any other period acceptable to the director;

(g) A certified copy of unaudited financial statements of the applicant for the most recent fiscal quarter;

(h) If the applicant is a publicly traded corporation, a copy of the most recent report filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934;

(i) If the applicant is a wholly owned subsidiary of:

(i) A corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation's most recent report filed pursuant to the Securities Exchange Act of 1934;

or -10- LB474 LB474 2025 (ii) A corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;

(j) The name and address of the applicant's registered agent in this state;

and (k) Any other information the director reasonably requires with respect to the applicant.

(3) A nonrefundable application fee of one thousand five hundred dollars must accompany an application for a license under this section.

(4) Other than the nonrefundable application fee, the director may waive one or more requirements of this section or permit an applicant to submit other information in lieu of the required information.

Executive officer means the president, chairperson of the executive committee, senior officer responsible for business decisions, chief financial officer, and any other person who performs similar functions for a licensee.

Sec.

17.

Section 8-2712, Reissue Revised Statutes of Nebraska, is amended to read:

8-2712 (1) Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and any key individual shall furnish to the director, through the Nationwide Mortgage Licensing System and Registry, the following items:

(a) The individual's fingerprints for submission to the Federal Bureau of Investigation and the director for purposes of a national criminal history background check unless the individual currently resides outside of the United States and has resided outside of the United States for the last ten years;

and (b) The individual's personal history and experience in a form and in a medium prescribed by the director, including the following:

(i) An independent credit report from a consumer reporting agency unless the individual does not have a social security number, in which case, this requirement shall be waived;

(ii) Information related to any criminal conviction or pending charges;

and (iii) Information related to any regulatory or administrative action and any civil litigation involving any claim of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.

(2) If the individual has resided outside of the United States at any time in the last ten years, the individual shall also provide an investigative background report prepared by an independent search firm that meets the following requirements:

(a) The firm shall, at a minimum:

(i) Demonstrate that the firm has sufficient knowledge and resources and employs accepted and reasonable methodologies to conduct the research of the background report;

and (ii) Not be affiliated with, or have an interest with, the individual it is researching;

and (b) The investigative background report shall be written in the English language and shall contain the following, at a minimum:

(i) If available in the individual's current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and areas where the individual resided and worked;

(ii) Criminal record information of the individual for the past ten years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of law in the countries, provinces, states, cities, towns, and areas where the individual resided and worked;

(iii) Employment history of the individual;

(iv) Media history of the individual, including an electronic search of national and local publications, wire services, and business applications;

and (v) Financial services-related regulatory history of the individual, including, but not limited to, money transmission, securities, banking, insurance, and mortgage-related industries.

(3) The director may use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting information from and distributing information to the United States Department of Justice or any other governmental agency in order to reduce the points of contact which the Federal Bureau of Investigation may have to maintain for purposes of this section.

Key shareholder means any person or group of persons acting in concert owning ten percent or more of any voting class of an applicant's stock.

Sec.

18.

Section 8-2713, Reissue Revised Statutes of Nebraska, is amended to read:

8-2713 (1) When the director determines an application for an original license under the Nebraska Money Transmitters Act appears to include all the items and addresses all of the matters that are required, the application is complete.

The director shall promptly notify the applicant in a record of the date on which the application is determined to be complete.

The director shall approve, conditionally approve, or deny the application within one hundred twenty days after the completion date.

The director may for good cause extend such one-hundred-twenty-day period.

(2) A determination by the director that an application is complete and is accepted for processing means only that the application, on its face, appears to include all of the items, including the criminal history background check -11- LB474 LB474 2025 response from the Federal Bureau of Investigation, and address all of the matters that are required, and is not an assessment of the substance of the application or of the sufficiency of the information provided.

(3) When an application is filed and considered complete under this section, the director shall investigate the applicant's financial condition, financial responsibility, financial and business experience, character, and general fitness.

The director may conduct an investigation of the applicant, the reasonable cost of which the applicant must pay.

The director shall issue a license to an applicant under this section if the director finds that all of the following conditions have been fulfilled:

(a) The applicant has complied with sections 8-2711 and 8-2712;

and (b) The financial condition, financial responsibility, financial and business experience, competence, character, and general fitness of the applicant and the competence, experience, character, and general fitness of the key individuals and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.

(4) The director shall issue a formal written notice of the denial of a license application within thirty days after the decision to deny such application.

The director shall set forth in the notice of denial the specific reasons for the denial of the application.

An applicant whose application is denied by the director under this section may appeal within thirty days after receipt of the written notice of the denial.

The appeal shall be in accordance with the Administrative Procedure Act.

(5) If an applicant for a license under the Nebraska Money Transmitters Act does not complete the license application and fails to respond to a notice or notices from the department to correct a deficiency or deficiencies for a period of one hundred twenty days or more after the date the department sends the initial notice to correct the deficiency or deficiencies, the department may deem the application as abandoned and may issue a notice of abandonment of the application to the applicant in lieu of proceedings to deny the application.

(6) The initial license term shall begin on the day the application is approved.

The license shall expire on December 31 of the year in which the license term began, unless the initial license date is on or after November 1 and on or before December 31, in which instance the initial license term shall run through December 31 of the following year.

Licensee means a person licensed pursuant to the Nebraska Money Transmitters Act.

Sec.

19.

Section 8-2714, Reissue Revised Statutes of Nebraska, is amended to read:

8-2714 (1) A license under the Nebraska Money Transmitters Act shall be renewed annually.

(2) An annual renewal fee of seven hundred fifty dollars shall be paid no more than sixty days before the license expiration.

(3) The renewal term shall be for a period of one year and shall begin on January 1 of each year after the initial license term and shall expire on December 31 of the year the renewal term begins.

(4) A licensee shall submit a renewal report with the renewal fee, in a form and in a medium prescribed by the director.

The renewal report shall state or contain a description of each material change in information submitted by the licensee in its original license application which has not been reported to the director.

(5) The director may, for good cause, grant an extension to when the submission of the renewal fee and report is due for renewal for a licensee.

(6) The director is authorized to utilize the Nationwide Mortgage Licensing System and Registry to process license renewals provided that such functionality is consistent with this section.

Material litigation means any litigation that, according to generally accepted accounting principles, is deemed significant to an applicant's or licensee's financial health and would be required to be referenced in an applicant's or licensee's annual audited financial statements, report to shareholders, or similar documents.

Sec.

20.

Section 8-2715, Reissue Revised Statutes of Nebraska, is amended to read:

8-2715 (1) If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license, the director may suspend or revoke the licensee's license in accordance with the procedures established by the Nebraska Money Transmitters Act or other applicable state law for such suspension or revocation.

(2) An applicant shall demonstrate that the applicant meets or will meet, and a licensee shall at all times meet, the requirements of sections 8-2730, 8-2731, and 8-2732.

Monetary value means a medium of exchange, whether or not redeemable in money.

Sec.

21.

Section 8-2716, Reissue Revised Statutes of Nebraska, is amended to read:

8-2716 (1) Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall obtain the written approval of the director prior to acquiring control.

An individual is not deemed to acquire control of a licensee and is not subject to this section when that individual becomes a key individual for a licensee in the ordinary course of business.

-12- LB474 LB474 2025 (2) A person, or group of persons acting in concert, seeking to acquire control of a licensee shall, in cooperation with the licensee:

(a) Submit an application in a form and in a medium prescribed by the director;

and (b) Submit a nonrefundable fee of one thousand five hundred dollars with the request for approval.

(3) Upon request, the director may permit a licensee or the person, or group of persons acting in concert, to submit some or all information required by the director pursuant to this section without using the Nationwide Mortgage Licensing System and Registry.

(4) The application required by this section shall include the information required by section 8-2712 for any new key individuals that have not previously completed the requirements of section 8-2712 for a licensee.

(5) When the director determines an application for acquisition of control under this section appears to include all the items and address all of the matters that are required, the application shall be considered complete and the director shall promptly notify the applicant in writing of the date on which the application was determined to be complete.

(6) The director shall approve or deny the application within sixty days after the completion date and, if the application is not approved or denied by the director within sixty days after the completion date, the application is deemed approved and the person, or group of persons acting in concert, are not prohibited from acquiring control of the licensee.

The director may for good cause extend such sixty-day period.

(7) A determination by the director that an application is complete and is accepted for processing means only that the application, on its face, appears to include all of the items and address all of the matters that are required, and is not an assessment of the substance of the application or of the sufficiency of the information provided.

(8) When an application is filed and considered complete under this section, the director shall investigate the financial condition, financial responsibility, financial and business experience, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control.

The director shall approve an acquisition of control pursuant to this section if the director finds that all of the following conditions have been fulfilled:

(a) The requirements of subsections (1) and (2) of this section have been met, as applicable;

and (b) The financial condition, financial responsibility, financial and business experience, competence, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control and the competence, experience, character, and general fitness of the key individuals and persons that would be in control of the licensee after the acquisition of control indicate that it is in the interest of the public to permit the person, or group of persons acting in concert, to control the licensee.

(9) The director shall issue a formal written notice of the denial of an application to acquire control within thirty days after the decision to deny the application.

The director shall set forth in the notice of denial the specific reasons for the denial of the application.

An applicant whose application is denied by the director under this section may appeal within thirty days after receipt of the written notice of the denial.

The appeal shall be in accordance with the Administrative Procedure Act.

(10) The requirements of this section do not apply to any of the following:

(a) A person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in control of a licensee;

(b) A person that acquires control of a licensee by devise or descent;

(c) A person that acquires control of a licensee as a personal representative, custodian, guardian, conservator, or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law;

(d) A person that is exempt under subdivision (7) of section 8-2703;

(e) A person that the director determines is not subject to this section based on the public interest;

(f) A public offering of securities of a licensee or a person in control of a licensee;

or (g) An internal reorganization of a person in control of the licensee where the ultimate person in control of the licensee remains the same.

(11) Persons described in subdivisions (10)(a), (b), (c), (d), (f), and (g) of this section, in cooperation with the licensee, shall notify the director within fifteen days after the acquisition of control.

(12) Before filing an application for approval to acquire control of a licensee, a person may request in writing a determination from the director as to whether the person would be considered a person in control of a licensee upon consummation of a proposed transaction.

If the director determines that the person would not be a person in control of a licensee, the proposed person and transaction is not subject to the requirements of this section.

Money transmission means the business of the sale or issuance of payment instruments or stored value or of receiving money or monetary value for transmission to a location within or outside the United States by any and all means, including wire, facsimile, or electronic transfer.

Notwithstanding any other provision of law, money transmission also includes bill payment services not limited to the right to receive payment of any claim for another but does -13- LB474 LB474 2025 not include bill payment services in which an agent of a payee receives money or monetary value on behalf of such payee.

Sec.

22.

Section 8-2717, Reissue Revised Statutes of Nebraska, is amended to read:

8-2717 (1) A licensee adding or replacing any key individual shall:

(a) Provide notice in a manner prescribed by the director within fifteen days after the date the key individual's appointment became effective;

and (b) Provide the information required by section 8-2712 within forty-five days of the date after the key individual's appointment.

(2) Within ninety days after the date on which the notice provided pursuant to this section was determined to be complete, the director may issue a notice of disapproval of an added or replacement key individual if the director determines that, given the competence, experience, character, or integrity of the individual, permitting the individual to be a key individual of such licensee would not be in the best interest of the public or the customers of the licensee.

(3) A notice of disapproval shall contain a statement of the basis for disapproval and shall be sent to the licensee and the disapproved individual.

A licensee may appeal a notice of disapproval within thirty days after receipt of such notice of disapproval.

The appeal shall be in accordance with the Administrative Procedure Act.

(4) If the notice provided pursuant to this section is not disapproved within ninety days after the date on which the notice was determined to be complete, the key individual is deemed approved.

Nationwide Mortgage Licensing System and Registry means a licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of mortgage loan originators, mortgage bankers, installment loan companies, and other state-regulated financial services entities and industries.

Sec.

23.

Section 8-2718, Reissue Revised Statutes of Nebraska, is amended to read:

8-2718 (1) Each licensee shall submit a report of condition within forty- five days after the end of a calendar quarter, or within any extended time as the director may prescribe.

(2) The report of condition shall include:

(a) Financial information at the licensee level;

(b) Nationwide and state-specific money transmission transaction information in every jurisdiction in the United States where the licensee is licensed to engage in money transmission;

(c) A permissible investments report of the licensee;

(d) Transaction destination country reporting for money received for transmission, if applicable;

and (e) Any other information the director reasonably requires with respect to the licensee.

(3) The director is authorized to utilize the Nationwide Mortgage Licensing System and Registry for the submission of the report required by this section and is authorized to update as necessary the requirements of this section to carry out the purposes of the Nebraska Money Transmitters Act and maintain consistency with Nationwide Mortgage Licensing System and Registry reporting.

(4) The information required by subdivision (2)(d) of this section shall only be included in a report of condition submitted within forty-five days after the end of the fourth calendar quarter.

Outstanding payment instrument means any payment instrument issued by a licensee which has been sold in the United States directly by the licensee or any payment instrument issued by a licensee which has been sold by an authorized delegate of the licensee in the United States, which has been reported to the licensee as having been sold, and which has not yet been paid by or for the licensee.

Sec.

24.

Section 8-2719, Reissue Revised Statutes of Nebraska, is amended to read:

8-2719 (1) Each licensee shall, within ninety days after the end of each fiscal year or within any time period after the end of the fiscal year as the director may prescribe, file with the director:

(a) An audited financial statement of the licensee for the fiscal year prepared in accordance with United States generally accepted accounting principles;

and (b) Any other information as the director may reasonably require.

(2) Such audited financial statement shall be prepared by an independent certified public accountant or independent public accountant who is satisfactory to the director.

(3) Such audited financial statement shall include or be accompanied by a certificate of opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the director.

If the certificate or opinion is qualified, the director may order the licensee to take any action as the director may find necessary to enable the independent certified public accountant or independent public accountant to remove the qualification.

Payment instrument means any electronic or written check, draft, money order, travelers check, or other electronic or written instrument or order for the transmission or payment of money, sold or issued to one or more persons, whether or not such instrument is negotiable.

Payment instrument does not -14- LB474 LB474 2025 include any credit card, any voucher, any letter of credit, or any instrument that is redeemable by the issuer or its affiliates in goods or services of the issuer or its affiliates.

Sec.

25.

Section 8-2720, Reissue Revised Statutes of Nebraska, is amended to read:

8-2720 (1) Each licensee shall submit a report of authorized delegates within forty-five days after the end of each calendar quarter.

The director is authorized to utilize the Nationwide Mortgage Licensing System and Registry for the submission of the report required by this section provided that such functionality is consistent with the requirements of this section.

(2) The authorized delegate report shall include, at a minimum, each authorized delegate's:

(a) Company legal name;

(b) Taxpayer employer identification number;

(c) Principal provider identifier;

(d) Physical address;

(e) Mailing address;

(f) Business conducted in other states;

(g) Fictitious or trade names;

(h) Contact person name, telephone number, and email;

(i) Start date as the licensee's authorized delegate;

(j) End date acting as the licensee's authorized delegate, if applicable;

and (k) Any other information the director reasonably requires with respect to the authorized delegate.

Permissible investments means:

(1) Cash;

(2) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;

(3) Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers' acceptances, which are eligible for purchase by member banks of the federal reserve system;

(4) Any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates such securities;

(5) Investment securities that are obligations of the United States or its agencies or instrumentalities, obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state or political subdivision thereof;

(6) Shares in a money market mutual fund, interest-bearing bills or notes or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, or mutual funds primarily composed of such securities or a fund composed of one of more permissible investments as set forth in this section;

(7) Any demand borrowing agreement or agreements made to a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange;

(8) Receivables that are due to a licensee from its authorized delegates pursuant to a contract described in section 8-2739 which are not past due or doubtful of collection;

or (9) Any other investment or similar security approved by the director.

Sec.

26.

Section 8-2721, Reissue Revised Statutes of Nebraska, is amended to read:

8-2721 (1) A licensee shall file a report with the director within one business day after the licensee has reason to know of the occurrence of any of the following events:

(a) The filing of a petition by or against the licensee under the United States Bankruptcy Code for bankruptcy or reorganization;

(b) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors;

or (c) The commencement of a proceeding to revoke or suspend the license of a licensee in a state or country in which the licensee engages in business or is licensed.

(2) A licensee shall file a report with the director within three business days after the licensee has reason to know of the occurrence of any of the following events:

(a) A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony;

or (b) A charge or conviction of an authorized delegate for a felony.

(3)(a) Except as provided in subdivisions (b) and (c) of this subsection, a licensee shall notify the director in writing or through the Nationwide Mortgage Licensing System and Registry within three business days after the time that the licensee becomes aware of any breach of security of the system of computerized data owned or licensed by the licensee, which contains personal information about a Nebraska resident, or the unauthorized access to or use of such information about a Nebraska resident as a result of the breach.

For purposes of this subsection, the terms breach of the security of the system and personal information have the same meaning as in section 87-802.

(b) If a licensee would be required under Nebraska law to provide notification to a Nebraska resident regarding such breach, then the licensee shall provide a copy of such notification to the department prior to or simultaneously with the licensee's notification to the Nebraska resident.

-15- LB474 LB474 2025 (c) Notice required by this subsection may be delayed if a law enforcement agency determines that the notice will impede a criminal investigation.

Notice shall be made in good faith and without unreasonable delay as soon as possible after the law enforcement agency determines that notification will no longer impede the investigation.

Person means any individual, partnership, limited liability company, association, joint-stock association, trust, or corporation.

Person does not include the United States or the State of Nebraska.

Sec.

27.

Section 8-2722, Reissue Revised Statutes of Nebraska, is amended to read:

8-2722 A licensee and an authorized delegate shall file all reports required by the federal currency reporting, record-keeping, and suspicious activity reporting requirements set forth in the Bank Secrecy Act and other federal and state laws pertaining to money laundering.

The timely filing of a complete and accurate report required under this section with the appropriate federal agency is deemed to be in compliance with the requirements of this section.

Remit, except as used in section 8-2747, means either to make direct payment of the funds to a licensee or its representatives authorized to receive those funds or to deposit the funds in a bank, credit union, or savings and loan association or other similar financial institution in an account specified by a licensee.

Sec.

28.

Section 8-2723, Reissue Revised Statutes of Nebraska, is amended to read:

8-2723 (1) A licensee shall maintain the following records, for determining the licensee's compliance with the Nebraska Money Transmitters Act, for at least five years:

(a) A record of each outstanding money transmission obligation sold;

(b) A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;

(c) Bank statements and bank reconciliation records;

(d) Records of outstanding money transmission obligations;

(e) Records of each outstanding money transmission obligation paid;

(f) A list of the last-known names and addresses of all of the licensee's authorized delegates;

and (g) Any other records the director reasonably requires by rule or regulation.