Financial literacy bill advances

Senators gave first-round approval Feb. 3 to a bill aimed at increasing financial literacy among Nebraska youth.

LB269, introduced by Lincoln Sen. Danielle Conrad, would increase licensing fees for delayed deposit service providers, also known as payday lenders. Under the bill, renewal fees would increase from $150 to $500 for a main office location and from $100 to $500 for each branch office location.

The bill also would create the Financial Literacy Fund to receive funds from the fee increase, which would be used to provide financial literacy education to K-12 students in Nebraska.

A Banking, Commerce and Insurance Committee amendment, adopted 28-0, would move administration of the fund from the state Department of Insurance to the University of Nebraska. The amendment also specified that only the increased portion of the licensing fees would be diverted to the fund rather than the entire fee.

Conrad said the bill represents a compromise between consumer advocates and the financial services industry on the often contentious issue of payday lenders. She said the bill would help Nebraska’s youth learn to make responsible financial decisions.

Omaha Sen. Beau McCoy supported the bill, saying it had broad support from those interested in the payday lending issue.

“We’ve never really hit upon something that could be done to address this issue in a positive manner that the two sides … could agree upon,” he said.

The bill advanced to select file on a 30-0 vote.