Omnibus banking bill passed

Lawmakers approved a measure Feb. 20 that makes a number of changes to Nebraska banking laws.

LB717, introduced by North Platte Sen. Mike Jacobson at the request of the Nebraska Department of Banking and Finance, is the department’s annual administrative update. Among other technical changes, the bill harmonizes state law with federal law and preserves the “wild card” powers of state banks, credit unions and savings associations.

The measure also provides a number of consumer protections, such as requiring a “net tangible benefit” analysis for borrowers financing installment or mortgage loans and authorizing the emergency closure of financial institutions in the event of a cybersecurity breach.

In addition, LB717 expands the definition of financial institutions to include credit unions under the Nebraska Financial Innovation Act, broadens the scope of controllable electronic record kiosks and updates lending limits by increasing the usury rate exemption cap from $25,000 to $100,000.

Finally, the measure provides an exemption from the Nebraska Money Transmitters Act for payroll processors that have fewer than 25 full-time employees and provide services to fewer than 50 clients who reside in Nebraska.

LB717 passed on a vote of 48-0.