Banking Commerce and Insurance

Banking regulations approved

Several updates to Nebraska banking regulations were approved by lawmakers April 11.

Sen. Julie Slama
Sen. Julie Slama

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

The measure includes LB1075, also introduced by Slama, which changes 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 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 bill are the following:
• LB710, sponsored by Sen. George Dungan of Lincoln, which modernizes and updates the State Credit Union Act;
• LB872, introduced by Elmwood Sen. Robert Clements, which prohibits acceptance of central bank digital currency by state and local governments as a form of payment during financial transactions;
• LB1122, sponsored by Sen. Beau Ballard of Lincoln, which changes enforcement provisions relating to written solicitations for financial products or services and increases the fine from $1,000 to $5,000 per violation;
• LB1176, introduced by Dungan, which regulates public entity pooled investments;
• LB1290, sponsored by Bennington Sen. Wendy DeBoer, which aims to promote the use of special needs trusts by individuals with disabilities; and
• LB1294, introduced by Sen. Eliot Bostar of Lincoln, which changes provisions relating to data privacy, including certain certificates and information relating to vital records, and provides for certain records to be exempt from public disclosure.

LB1074 passed on a 47-0 vote and takes effect immediately.

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