LB92 LB92
2023 2023
LEGISLATIVE BILL 92
Approved by the Governor June 6, 2023
Introduced by Slama, 1.
A BILL FOR AN ACT relating to law; to amend sections 8-101.03, 8-102, 8-115,
8-135, 8-141, 8-143.01, 8-157.01, 8-183.04, 8-1,140, 8-318, 8-355, 8-602,
8-1101, 8-1101.01, 8-1704, 8-1707, 8-2724, 8-2903, 8-3002, 8-3003, 8-3004,
8-3005, 8-3007, 8-3008, 8-3011, 8-3012, 8-3013, 8-3014, 8-3015, 8-3016,
8-3017, 8-3018, 8-3019, 8-3020, 8-3021, 8-3022, 8-3023, 8-3025, 8-3026,
8-3028, 8-3030, 10-110, 10-402, 10-403, 10-405, 10-507, 10-711, 10-804,
13-509, 21-17,115, 44-319.02, 44-319.03, 44-319.06, 44-785, 44-1993,
44-2824, 44-2825, 44-2827, 44-2831.01, 44-2832, 44-2833, 44-3308, 44-4054,
44-5140, 45-191.01, 45-191.04, 45-735, 45-1002, 45-1003, 45-1006, 58-201,
and 76-1007, Reissue Revised Statutes of Nebraska, sections 44-7,102,
44-5141, 59-1722, 69-2103, 69-2104, 69-2112, and 77-6801, Revised Statutes Cumulative Supplement, 2022, and section 4A-108, Uniform Commercial Code,
Revised Statutes Cumulative Supplement, 2022; to change provisions relating to the Commodity Code, the Consumer Rental Purchase Agreement Act, the Credit Union Act, the ImagiNE Nebraska Act, the Insurance Producers Licensing Act, the Insurers Investment Act, the Nebraska Banking Act, the Nebraska Financial Innovation Act, the Nebraska Hospital-Medical Liability Act, the Nebraska Installment Loan Act, the Nebraska Investment Finance Authority Act, the Nebraska Money Transmitters Act, the Nebraska Trust Deeds Act, the Residential Mortgage Licensing Act, the Securities Act of Nebraska, the Seller-Assisted Marketing Plan Act, the Uniform Commercial Code—Funds Transfers, financial institutions, digital asset depositories, bonds secured by property tax levies, securities deposited for the benefit of policyholders and creditors of insurance companies,
insurance coverage of breast examinations, insurance coverage of colon examinations, title insurance regulation, loan brokers, and the Olmstead Plan; to adopt updates to federal laws and regulations relating to
financial institutions; to provide restrictions on insurance coverage of
prescription insulin drugs and electronic delivery of communications related to health benefit plans; to adopt the Insurance Regulatory Sandbox Act; to provide a duty for the Revisor of Statutes; to provide operative dates; to provide severability; to repeal the original sections; and to
declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 8-101.03, Reissue Revised Statutes of Nebraska, is amended to read:
8-101.03 For purposes of the Nebraska Banking Act, unless the context otherwise requires:
(1) Access device means a code, a transaction card, or any other means of
access to a customer's account, or any combination thereof, that may be used by
a customer for the purpose of initiating an electronic funds transfer at an automatic teller machine or a point-of-sale terminal;
(2) Acquiring financial institution means any financial institution establishing a point-of-sale terminal;
(3) Automatic teller machine means a machine established and located in
the State of Nebraska, whether attended or unattended, which utilizes electronic, sound, or mechanical signals or impulses, or any combination thereof, and from which electronic funds transfers may be initiated and at
which banking transactions as defined in section 8-157.01 may be conducted. An unattended automatic teller machine shall not be deemed to be a branch operated by a financial institution;
(4) Automatic teller machine surcharge means a fee that an operator of an automatic teller machine imposes upon a consumer for an electronic funds transfer, if such operator is not the financial institution that holds an
account of such consumer from which the electronic funds transfer is to be
made;
(5) Bank or banking corporation means any incorporated banking institution which was incorporated under the laws of this state as they existed prior to
May 9, 1933, and any corporation duly organized under the laws of this state for the purpose of conducting a bank within this state under the act. Bank means any such banking institution which is, in addition to the exercise of
other powers, following the practice of repaying deposits upon check, draft, or order and of making loans. Bank or banking corporation includes a digital asset depository institution as defined in section 8-3003. Notwithstanding the provisions of this subdivision, a digital asset depository institution is
subject to the provisions of subdivision (2)(b) of section 8-3005;
(6)(a) Bank subsidiary means a corporation or limited liability company that:
(i) Has a bank as a shareholder, member, or investor; and
(ii) Is organized for purposes of engaging in activities which are part of
the business of banking or incidental to such business except for the receipt of deposits.
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(b) A bank subsidiary may include a corporation organized under the Nebraska Financial Innovation Act.
(c) A bank subsidiary is not to be considered a branch of its bank shareholder;
(7) Capital or capital stock means capital stock;
(8) Data processing center means a facility, wherever located, at which electronic impulses or other indicia of a transaction originating at an automatic teller machine are received and either authorized or routed to a switch or other data processing center in order to enable the automatic teller machine to perform any function for which it is designed;
(9) Department means the Department of Banking and Finance;
(10) Digital asset depository means a financial institution that securely holds liquid assets when such assets are in the form of controllable electronic records, either as a corporation organized, chartered, and operated pursuant to
the Nebraska Financial Innovation Act as a digital asset depository institution, or a financial institution operating a digital asset depository business as a digital asset depository department under a charter granted grant of authority by the director;
(11) Director means the Director of Banking and Finance;
(12) Financial institution means a bank, savings bank, building and loan association, savings and loan association, or credit union, whether chartered by the United States, the department, or a foreign state agency; any other similar organization which is covered by federal deposit insurance; a trust company; or a digital asset depository that is not a digital asset depository institution;
(13) Financial institution employees includes parent holding company and affiliate employees;
(14) Foreign state agency means any duly constituted regulatory or
supervisory agency which has authority over financial institutions and which is
created under the laws of any other state, any territory of the United States,
Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands,
or the Virgin Islands or which is operating under the code of law for the District of Columbia;
(15) Impulse means an electronic, sound, or mechanical impulse, or any combination thereof;
(16) Insolvent means a condition in which (a) the actual cash market value of the assets of a bank is insufficient to pay its liabilities to its depositors, (b) a bank is unable to meet the demands of its creditors in the usual and customary manner, (c) a bank, after demand in writing by the director, fails to make good any deficiency in its reserves as required by law,
or (d) the stockholders of a bank, after written demand by the director, fail to make good an impairment of its capital or surplus;
(17) Making loans includes advances or credits that are initiated by means of credit card or other transaction card. Transaction card and other transactions, including transactions made pursuant to prior agreements, may be
brought about and transmitted by means of an electronic impulse. Such loan transactions including transactions made pursuant to prior agreements shall be
subject to sections 8-815 to 8-829 and shall be deemed loans made at the place of business of the financial institution;
(18) Order includes orders transmitted by electronic transmission;
(19) Point-of-sale terminal means an information processing terminal which utilizes electronic, sound, or mechanical signals or impulses, or any combination thereof, which are transmitted to a financial institution or which are recorded for later transmission to effectuate electronic funds transfer transactions for the purchase or payment of goods and services and which are initiated by an access device. A point-of-sale terminal is not a branch operated by a financial institution. Any terminal owned or operated by a seller of goods and services shall be connected directly or indirectly to an acquiring financial institution; and
(20) Switch means any facility where electronic impulses or other indicia of a transaction originating at an automatic teller machine are received and are routed and transmitted to a financial institution or data processing center, wherever located. A switch may also be a data processing center.
Sec. 2. Section 8-102, Reissue Revised Statutes of Nebraska, is amended to
read:
8-102 (1) The department shall, under the laws of this state specifically made applicable to each, have general supervision and control over banks, trust companies, credit unions, building and loan associations, savings and loan associations, and digital asset depositories, all of which are hereby declared to be quasi-public in nature and subject to regulation and control by the state.
(2) The director may prescribe conditions on banks, trust companies,
credit unions, building and loan associations, savings and loan associations,
and digital asset depositories, and their holding companies, if any, as part of
any written order, decision, or determination required to be made pursuant to
the Credit Union Act, the Nebraska Banking Act, the Nebraska Financial Innovation Act, and Chapter 8, article 3.
Sec. 3. Section 8-115, Reissue Revised Statutes of Nebraska, is amended to
read:
8-115 No corporation shall conduct a bank or digital asset depository in
this state without having first obtained a charter or under a grant of
authority in the case of a digital asset depository in the manner provided in
the Nebraska Banking Act or the Nebraska Financial Innovation Act,
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respectively.
Sec. 4. Section 8-135, Reissue Revised Statutes of Nebraska, is amended to
read:
8-135 (1) All persons, regardless of age, may become depositors in any bank and shall be subject to the same duties and liabilities respecting their deposits. Whenever a deposit is accepted by any bank in the name of any person,
regardless of age, the deposit may be withdrawn by the depositor by any of the following methods:
(a) Check or other instrument in writing. The check or other instrument in
writing constitutes a receipt or acquittance if the check or other instrument in writing is signed by the depositor and constitutes a valid release and discharge to the bank for all payments so made; or
(b) Electronic means through:
(i) Preauthorized direct withdrawal;
(ii) An automatic teller machine;
(iii) A debit card;
(iv) A transfer by telephone;
(v) A network, including the Internet; or
(vi) Any electronic terminal, computer, magnetic tape, or other electronic means.
(2) All persons, individually or with others and regardless of age, may enter into an agreement with a bank for the lease of a safe deposit box and shall be bound by the terms of the agreement.
(3) This section shall not be construed to affect the rights, liabilities,
or responsibilities of participants in an electronic fund transfer under the federal Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq., as such act existed on January 1, 2023 2022, and shall not affect the legal relationships between a minor and any person other than the bank.
Sec. 5. Section 8-141, Reissue Revised Statutes of Nebraska, is amended to
read:
8-141 (1) No bank shall directly or indirectly loan to any single corporation, limited liability company, firm, or individual, including in such loans all loans made to the several members or shareholders of such corporation, limited liability company, or firm, for the use and benefit of
such corporation, limited liability company, firm, or individual, more than twenty-five percent of the paid-up capital, surplus, and capital notes and debentures or fifteen percent of the unimpaired capital and unimpaired surplus of such bank, whichever is greater. Such limitations shall be subject to the following exceptions:
(a) Obligations of any person, partnership, limited liability company,
association, or corporation in the form of notes or drafts secured by shipping documents or instruments transferring or securing title covering livestock or
giving a lien on livestock, when the market value of the livestock securing the obligation is not at any time less than one hundred fifteen percent of the face amount of the notes covered by such documents, shall be subject under this section to a limitation of ten percent of such capital, surplus, and capital notes and debentures or ten percent of such unimpaired capital and unimpaired surplus, whichever is greater, in addition to such twenty-five percent of such capital and surplus or such fifteen percent of such unimpaired capital and unimpaired surplus;
(b) Obligations of any person, partnership, limited liability company,
association, or corporation secured by not less than a like amount of bonds or
notes of the United States issued since April 24, 1917, or certificates of
indebtedness of the United States, treasury bills of the United States, or obligations fully guaranteed both as to principal and interest by the United States shall be subject under this section to a limitation of ten percent of
such capital, surplus, and capital notes and debentures or ten percent of such unimpaired capital and unimpaired surplus, whichever is greater, in addition to
such twenty-five percent of such capital and surplus or such fifteen percent of
such unimpaired capital and unimpaired surplus;
(c) Obligations of any person, partnership, limited liability company,
association, or corporation which are secured by negotiable warehouse receipts in an amount not less than one hundred fifteen percent of the face amount of
the note or notes secured by such documents shall be subject under this section to a limitation of ten percent of such capital, surplus, and capital notes and debentures or ten percent of such unimpaired capital and unimpaired surplus,
whichever is greater, in addition to such twenty-five percent of such capital and surplus or such fifteen percent of such unimpaired capital and unimpaired surplus; or
(d) Obligations of any person, partnership, limited liability company,
association, or corporation which are secured by readily marketable collateral having a market value, as determined by reliable and continuously available price quotations, in an amount at least equal to the face amount of the note or
notes secured by such collateral, shall be subject under this section to a limitation of ten percent of such capital, surplus, and capital notes and debentures or ten percent of such unimpaired capital and unimpaired surplus,
whichever is greater, in addition to such twenty-five percent of such capital and surplus or such fifteen percent of such unimpaired capital and unimpaired surplus.
(2)(a) For purposes of this section, the discounting of bills of exchange,
drawn in good faith against actually existing values, and the discounting of
commercial paper actually owned by the persons negotiating the bills of
exchange or commercial paper shall not be considered as the lending of money.
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(b) Loans or obligations shall not be subject to any limitation under this section, based upon such capital and surplus or such unimpaired capital and unimpaired surplus, to the extent that such capital and surplus or such unimpaired capital and unimpaired surplus are secured or covered by guaranties,
or by commitments or agreements to take over or to purchase such capital and surplus or such unimpaired capital and unimpaired surplus, made by any federal reserve bank or by the United States Government or any authorized agency thereof, including any corporation wholly owned directly or indirectly by the United States, or general obligations of any state of the United States or any political subdivision of the state. The phrase general obligation of any state or any political subdivision of the state means an obligation supported by the full faith and credit of an obligor possessing general powers of taxation,
including property taxation, but does not include municipal revenue bonds and sanitary and improvement district warrants which are subject to the limitations set forth in this section.
(c) Any bank may subscribe to, invest in, purchase, and own single-family mortgages secured by the Federal Housing Administration or the United States Department of Veterans Affairs and mortgage-backed certificates of the Government National Mortgage Association which are guaranteed as to payment of
principal and interest by the Government National Mortgage Association. Such mortgages and certificates shall not be subject under this section to any limitation based upon such capital and surplus or such unimpaired capital and unimpaired surplus.
(d) Obligations representing loans to any national banking association or
to any banking institution organized under the laws of any state, when such loans are approved by the director by rule and regulation or otherwise, shall not be subject under this section to any limitation based upon such capital and surplus or such unimpaired capital and unimpaired surplus.
(e) Loans or extensions of credit secured by a segregated deposit account in the lending bank shall not be subject under this section to any limitation based on such capital and surplus or such unimpaired capital and unimpaired surplus. The director may adopt and promulgate rules and regula