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LB 609

Adopt the Controllable Electronic Record Fraud Prevention Act, require notice of potential fraud for purchasers of gift certificates and gift cards, and change provisions relating to search warrants

109th Legislature (2025-2026) Introduced by Eliot Bostar

Establishes protections to reduce controllable electronic record fraud by licensing and regulating kiosks, requiring disclosures, notices to gift cards, and clearer seizure/forfeit

Approved by Governor on March 11, 2025
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Bill Summary · LB 609

Summary — LB 609 (2025)

Title: Adopt the Controllable Electronic Record Fraud Prevention Act; require notice of potential fraud for purchasers of gift certificates and gift cards; change provisions relating to search warrants
Status: Enacted — Approved by Governor March 11, 2025

Purpose / Intent

LB 609 establishes consumer protections aimed at reducing fraud involving “controllable electronic records” (broadly: digital representations of value such as cryptocurrencies), by regulating kiosks that sell or buy such assets, requiring notice to gift card purchasers about prepaid-card scams, and clarifying seizure/forfeiture authority for digital assets in criminal cases.

Key Provisions

  • Creates the Controllable Electronic Record Fraud Prevention Act (Sections 1–11).

    • Defines key terms (controllable electronic record, kiosk, kiosk operator, wallet, transaction hash, new/existing customer, etc.). New customer status is limited to a 14‑day period after first transaction (reduced from 30 days in earlier drafts).
    • Licensing & registration: Kiosk operators must hold a license under the Nebraska Money Transmitters Act (see section 8‑2725) and must report each kiosk as an authorized delegate under that Act (section 8‑2730).
    • Quarterly reporting: Operators must submit, within 45 days after each calendar quarter, a department-prescribed form listing each kiosk’s physical location and associated controllable electronic record addresses.
    • Consumer disclosures: Operators must provide clear, conspicuous disclosures in the customer’s chosen language, require acknowledgement, and include a prominent fraud-warning statement (sample warning language provided). Disclosures must explain material risks: lack of FDIC/SIPC protections, volatility, possible transaction delays, and irreversibility of kiosk transactions.
    • Compliance officer: Kiosk operators must maintain a full-time compliance officer (subject to specified restrictions in the Act) and implement anti-fraud measures and transaction limits.
    • Transaction limits: Amendment (AM157) increases certain daily limits referenced in the bill from $5,000 to $10,500 for specified situations.
    • Blockchain analytics and other defined tools referenced for risk assessment.

  • Gift certificate/gift card notice (Section 12):

    • Requires specified sellers/entities to provide notice about scams tied to prepaid cards/gift certificates.
    • The Consumer Protection Division of the Nebraska Attorney General will publish model notice language; entities may use the model or substantially similar language to comply.
    • Certain card types are excepted (as enumerated in the statute; see bill for specifics).

  • Search warrants and forfeiture (original Sections 13–22 replaced by AM157):

    • Neb. Rev. Stat. §29‑817 amended to explicitly include “controllable electronic records” among property that may be seized in criminal investigations and to clarify interactions with search‑warrant law.
    • The bill provides for forfeiture of controllable electronic records and other assets when those assets are found to have been wrongfully obtained through certain offenses (theft by deception, forgery, identity theft) — and clarifies law enforcement authority relating to seizure and disposition of such property.

Who is Affected

  • Controllable electronic record kiosk operators (must be licensed/registered, comply with disclosures, reporting, compliance staffing and transaction limits).
  • Consumers who use kiosks (especially new customers) — will receive warnings and disclosures intended to reduce fraud.
  • Retailers and other sellers of gift cards/gift certificates (must provide AG model notices or equivalent).
  • Department of Banking and Finance (oversight, registration, and reporting administration).
  • Law enforcement and prosecutors (clearer authority to seize and forfeit digital assets).

Timeline / Procedural Notes

  • Introduced: Jan 22, 2025. Hearing: Feb 3, 2025 (Banking, Commerce & Insurance).
  • Committee amendment AM157 (Feb 6) and later floor amendment/technical edits (Bostar AM352 / ER14) were adopted.
  • Passed Final Reading: Mar 6, 2025 (48–0–1). Presented to Governor Mar 6; approved Mar 11, 2025.
  • Key statutory cross‑references: Nebraska Money Transmitters Act (sections 8‑2725, 8‑2730) and Neb. Rev. Stat. §29‑817.

Note: Fiscal notes were filed for LB 609 (dates listed in legislative record); consult the official fiscal note(s) for estimated costs or revenue impacts. For full statutory text and specifics (exceptions, exact compliance duties, penalties and effective date), see the enrolled act or the Legislative Journal.

Compiled from official sources — confirm details with the bill’s official record.

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