Banking cleanup bill clears first round

Lawmakers amended a technical banking bill and added provisions of three additional measures before advancing the proposal to the second round of debate April 9.

LB474, introduced by the Banking, Commerce and Insurance Committee at the request of the Nebraska Department of Banking and Finance, would make a number of changes related to interest, loans and debt under the department’s jurisdiction, effective Oct. 1.

As introduced, the bill would eliminate the Nebraska Installment Loan Act after merging certain provisions of it with the Nebraska Installment Sales Act and creating a new Nebraska Installment Loan and Sales Act.

North Platte Sen. Mike Jacobson, chairperson of the committee, said the existing Installment Loan Act governs entities that make loans of less than $25,000 to consumers, while the current Installment Sales Act regulates entities that purchase retail installment loans.

Jacobson said combining the two sections of law would result in efficiencies for the department and the industries that they regulate.

Senators adopted a committee amendment on a 36-0 vote to clarify that loans made by financial institutions that are serviced by or purchased by a licensee would not be subject to the interest rate limitations of the new Nebraska Installment Loan and Sales Act.

Jacobson offered an amendment, adopted 33-0, that added provisions of three other bills heard by the committee this session.

Amended provisions of LB232, sponsored by Sen. Bob Hallstrom of Syracuse, would make changes in state law relating to life insurance. Under the amendment, policies issued or delivered on or after Jan. 1, 2026, would be required to send notice electronically or by mail to the last known address of the policy owner and any assignee on record at least 15 days prior to policy termination or lapse due to nonpayment of any premium.

An assignee would have the same legal standing as the policy owner with respect to the provision.

LB278, introduced by Elkhorn Sen. R. Brad von Gillern, would amend state law that places restrictions on health insurance policies and contracts between preferred providers and insurers by preventing such policies and contracts from excluding a provider solely because the provider holds a visiting faculty permit.

Finally, the amended provisions of LB473, sponsored by the committee, would update and modernize the Nebraska Money Transmitters Act.

Following adoption of Jacobson’s amendment, lawmakers advanced LB474 to select file on a 38-0 vote.