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LB 473

Change provisions of the Nebraska Money Transmitters Act

109th Legislature (2025-2026)

LB 473 modernizes Nebraska's Money Transmitters Act, boosting fees, enhancing consumer protections, and improving regulatory oversight for money transmission services.

Provisions/portions of LB473 amended into LB474 by AM669
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Bill Summary · LB 473

Summary of Legislative Bill LB 473

Bill Information

  • Bill Number: LB 473
  • Title: Change provisions of the Nebraska Money Transmitters Act
  • Status: Provisions/portions of LB 473 amended into LB 474 by AM 669
  • Introduced: January 21, 2025
  • Committee: Banking, Commerce and Insurance

Purpose and Intent

LB 473 was introduced at the request of the Nebraska Department of Banking and Finance to update and modernize the Nebraska Money Transmitters Act. The bill aims to align the existing legislation with the current model law known as the Money Transmission Modernization Act, thereby enhancing regulatory efficiency and consumer protection in the rapidly evolving payments industry.

Key Provisions

LB 473 proposes significant changes to the Nebraska Money Transmitters Act, including:

  1. Repeal and Replacement: The bill effectively repeals the current Act (Neb. Rev. Stat. §§ 8-2701 to 8-2747) and replaces it with updated provisions while retaining certain existing elements.

  2. Fee Adjustments:

    • Increases the application fee from $1,000 to $1,500.
    • Raises the annual renewal fee from $250 to $750.
    • Introduces a $1,500 fee for requests to change control of a licensee.

  3. Licensing and Exemptions:

    • Clarifies the licensing requirements for nonexempt persons offering money transmission services.
    • Allows the Director of the Department to require proof of exemption qualifications from applicants.

  4. Regulatory Authority:

    • Grants the Director enhanced powers to administer, interpret, and enforce the Act, including the ability to conduct investigations and examinations.
    • Authorizes the Director to impose administrative fines of up to $5,000 for violations.

  5. Reporting Requirements:

    • Mandates licensees to file quarterly reports and provide audited financial statements annually.
    • Requires licensees to maintain certain records for a minimum of five years.

  6. Consumer Protections:

    • Establishes requirements for money transmission receipts and mandates refunds to senders within ten days of a written request, barring specific exceptions.

Affected Parties

The bill primarily impacts:
- Money transmitters and financial service providers operating in Nebraska, who will need to comply with the updated licensing and reporting requirements.
- Consumers who utilize money transmission services, as the bill aims to enhance protections and ensure more reliable service.

Procedural Aspects

  • Hearing Date: February 18, 2025
  • Committee Action: Advanced to General File with amendments.
  • Current Status: Portions of LB 473 have been incorporated into LB 474, and the bill was indefinitely postponed on June 2, 2025.

Conclusion

LB 473 represents a significant overhaul of the Nebraska Money Transmitters Act, aimed at modernizing regulations to better serve the needs of consumers and businesses in the financial sector. By aligning with contemporary standards and enhancing regulatory authority, the bill seeks to foster a safer and more efficient money transmission environment in Nebraska.

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

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