Lawmakers broaden, advance banking cleanup bill

An annual banking cleanup bill was amended to become an omnibus measure and given first-round approval March 20.

LB1074, introduced by Dunbar Sen. Julie Slama at the request of the state Department of Banking and Finance, would amend various areas of state law and the Uniform Commercial Code by adopting updates to federal law relating to banking and finance. The bill also would change provisions relating to credit union examinations, receivership bonds and remedies under the Commodity Code.

A Banking, Commerce and Insurance Committee amendment, adopted 33-0, added provisions of five additional measures heard by the committee this year.

LB1075, also introduced by Slama, would change provisions of the Delayed Deposit Services Licensing Act, Nebraska Installment Loan Act, Nebraska Installment Sales Act, Nebraska Money Transmitters Act and the Residential Mortgage Licensing Act.

The provisions would update existing requirements for background checks of consumer finance licensees and provide a requirement for those licensees to notify the state Department of Banking and Finance of any data security breaches within three business days.

Also included in the committee amendment are provisions of the following:
• LB872, introduced by Elmwood Sen. Robert Clements, which would prohibit acceptance of central bank digital currency by state and local governments as a form of payment during financial transactions;
• LB710, sponsored by Sen. George Dungan of Lincoln, which would modernize and update the State Credit Union Act;
• LB1122, introduced by Lincoln Sen. Beau Ballard, which would change enforcement provisions relating to written solicitations for financial products or services and increase the fine from $1,000 to $5,000 per violation; and
• LB1294, sponsored by Sen. Eliot Bostar of Lincoln, which would change provisions relating to data privacy, including certain certificates and information relating to vital records, and provide for certain records to be exempt from public disclosure.

Dungan offered an amendment to add provisions of his LB1176, which would regulate public entity pooled investments. The amendment also contains provisions of Bennington Sen. Wendy DeBoer’s LB1290 that aim to promote the use of special needs trusts by individuals with disabilities.

The Dugan amendment was adopted 33-0 and LB1074 advanced to select file on a 33-0 vote.