# Nebraska LB474: Change and eliminate provisions relating to installment sales and installment loans and the Nebraska Money Transmitters Act, rename the Nebraska Installment Sales Act, transfer provisions of and eliminate the Nebraska Installment Loan Act, and change provisions of the Medicaid Access and Quality Act Nebraska LB474, Change and eliminate provisions relating to installment sales and installment loans and the Nebraska Money Transmitters Act, rename the Nebraska Installment Sales Act, transfer provisions of and eliminate the Nebraska Installment Loan Act, and change provisions of the Medicaid Access and Quality Act, is a 109th Legislature 1st and 2nd Sessions legislature bill sponsored by Banking, Commerce and Insurance Committee; status signed, last action 2025-06-06 (Provisions/portions of LB473 amended into LB474 by AM669); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/NE-LB474-109 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Nebraska LB474 - State: Nebraska - Session: 109th Legislature 1st and 2nd Sessions - Title: Change and eliminate provisions relating to installment sales and installment loans and the Nebraska Money Transmitters Act, rename the Nebraska Installment Sales Act, transfer provisions of and eliminate the Nebraska Installment Loan Act, and change provisions of the Medicaid Access and Quality Act - Status: signed - Chamber: legislature - Introduced: 2025-01-21 - Last action: 2025-06-06, Provisions/portions of LB473 amended into LB474 by AM669 - Sponsor: Banking, Commerce and Insurance Committee - Cosponsors: 0 - Subjects: Banking, Commerce and Insurance Committee - Touches household money: yes - Roll calls: 8 (291 yes, 0 no in all) - Economic provisions PRIA read: 54 ## Summary No summary available. ## Bill overview: provisions PRIA read - Caps on loan costs and small loans: benefit, high. For installment loans from licensed lenders, yearly charges are capped at 24% on the first $1,000 of principal and 21% on the rest. Loans over $3,000 and under $25,000 cannot run longer than 145 months, except mobile‑home loans. Any loan made outside Nebraska for $3,000 or less that charged more th… - Selling wages now treated like a loan: benefit, medium. If you sell or assign your future wages, the payment you get is treated as a loan secured by your wages. The extra amount above your pay counts as interest from the payment date until payday. This brings wage‑sales under loan rules and protections. - State must seek Medicaid match by Aug 2025: benefit, medium. By August 1, 2025, the state must file the federal paperwork needed to get matching dollars for the Medicaid Access and Quality Act. This step helps bring in federal funds to support Medicaid services in Nebraska. - Clear rules and fee caps for reverse mortgages: benefit, medium. The law sets clear rules for reverse mortgages. You do not make payments until the loan is due, and the loan is nonrecourse unless there is fraud or waste. The lender’s origination fee is capped at 2% of your home’s appraised value. If the lender fails to make a required advance and does not fix it… - 15-day lapse warning for life insurance: benefit, low. For life or endowment policies issued or delivered on or after January 1, 2026, your insurer must give you at least 15 days’ notice before the policy can lapse for nonpayment. The notice can be by mail or electronic delivery and must go to the owner and any assignee on record. An assignee has the s… - Clear cosigner and payoff rights for borrowers: benefit, low. If you are asked to cosign (and are not the borrower’s spouse), the lender must give you a separate written notice and copies of the loan terms before you sign. After you fully repay a loan, the lender must, within 30 days, mark it paid, release any mortgage or lien, and return or cancel notes and… - Clearer retail installment contract terms: benefit, low. Your retail installment contract must be written, signed, and given to you. It must show the cash price, down payment, insurance and other add-ons, finance details, and each payment amount and due date, or clearly explain how changing payments are set. Do not sign if it has blanks; the contract mus… - Rules for loan add-on insurance: benefit, low. When insurance or a motor club is sold with your loan, lender commissions are not treated as extra loan charges. Premiums and fees can be added to the loan, but they must be bought through licensed providers and cannot be higher than filed or manual rates. If the insurance or service is canceled or… - Sender protections for money transfers: benefit, low. A licensed transmitter must send your money as your agreement says, unless it reasonably suspects fraud or a crime. If you ask in writing, it must refund your money within 10 days unless the money was already sent, you agreed to a longer time, fraud is suspected, or your request lacks needed detail… - Stronger protections from unfair lending and collections: benefit, low. The law bans abusive debt collection, like threats, lies, obscene language, and calling you at work if your boss says no. Lenders cannot contact people outside your home about your debt, except your spouse, lawyer, another creditor, or a credit bureau, with narrow exceptions. They cannot force you… - Stronger rights when you borrow: benefit, low. When you get a loan, the lender must give you an English disclosure and a copy of anything you sign. The loan must clearly say you can prepay any time without a penalty. If you ask in writing, the lender must give your payment history and copies of key papers; copies can cost up to $0.50 per page.… - You can prepay installment loans anytime: benefit, low. Lenders must let you pay one or more full installments early during normal business hours. The lender may first apply your payment to any charges due through that date. Prepaying can cut future interest costs. - Clearer health plan costs and rules upfront: benefit, low. Insurers must give people shopping for coverage plain‑language details about benefits and exclusions. They must explain prior‑authorization rules, how to appeal, and your costs for deductibles, coinsurance, and noncovered services. Spoken and written materials must be easy to understand. - Contract-for-deed buyers count as homeowners: benefit, low. If you buy a home under a contract for deed, the law treats you as a homeowner in foreclosure cases. You get the procedural protections homeowners receive in foreclosure. - Payroll firms must give paystubs and reports: benefit, low. Payroll processors must send clients reports that show payroll amounts before deducting funds. They must also make paystubs or similar statements available to employees. This does not apply if the client takes on giving the required notices. - NMLS privacy, sharing, and challenge rights: benefit, low. The department reports residential mortgage violations and enforcement actions to the NMLS. The director must set a process so applicants and licensees can challenge information the department entered in NMLS. NMLS must have privacy, data‑security, and breach‑notice policies, and you can request th… - Fairer provider networks and credentialing rules: benefit, low. Insurers must let providers appeal exclusion or contracting decisions and get a timely ruling. Providers generally get a chance to try a corrective action plan before termination, unless there is fraud, imminent patient harm, or a government restriction. Insurers must run a formal credentialing pro… - More flexibility for sales finance mortgage roles: benefit, low. A sales finance company licensed under the Installment Loan and Sales Act does not need a separate residential mortgage license if it only buys or services installment sales contracts secured by a mobile home or trailer. The law also lets licensed installment loan companies act as or call themselve… - Higher surety bonds and mortgage originator licensing: cost, high. Applicants must post a $50,000 surety bond plus $50,000 for each licensed branch. If you employ or contract with mortgage loan originators, you must also keep a supplemental bond: $100,000 at first, then $100,000 up to $5 million in prior‑year mortgage volume, $125,000 over $5 million to $10 millio… - Stronger enforcement for money transmitters: cost, high. The Director can fine up to $5,000 per violation per day and recover the state’s investigation and prosecution costs. The Director can issue immediate cease-and-desist orders and seek emergency restraining orders. The Director can resolve matters by consent order. Making false records or doing unli… - Installment sales can charge any rate: cost, medium. For goods or services sold under the Installment Loan and Sales Act, the usual state interest‑rate cap no longer applies. The seller and buyer may agree in writing to any interest rate, subject to other parts of the law. This can raise borrowing costs on retail installment sales. - Installment lenders licensing and definitions: cost, medium. To get an installment loan or sales license, you must apply on the director’s form, provide owner and officer details, pass background checks, post a surety bond, and show audited financials with at least $100,000 in net worth. The law updates definitions like consumer, buyer, and contract terms so… - Tighter rules for authorized delegates: cost, medium. Before using an authorized delegate, you must have written compliance policies, a signed contract with required terms, and a risk‑based background check. Delegates cannot sub‑delegate money transmission. Delegates must hold transmission funds (net of fees) in trust for the licensee; if they mix fun… - Money transmitter fees and background checks: cost, medium. Applying for a money transmitter license costs a nonrefundable $1,500. Renewals cost $750 each year and must be paid no more than 60 days before the license expires. Control persons who lived outside the U.S. in the last 10 years must provide an independent investigative report in English. Licensee… - New HMO premium tax funds Medicaid: cost, medium. Starting January 1, 2026, the Director of Insurance collects a tax of up to 6% on HMOs’ non‑Medicare premiums written in Nebraska. The tax applies each year to premiums received, to the extent federal law allows. All revenue goes to the Medicaid Access and Quality Fund. - Some loans fall outside Installment Act: cost, low. Certain loans made under a specific statutory subdivision, when not secured by real property, are not covered by the Installment Loan and Sales Act. Those loans may not get the same consumer protections under this act. - Faster responses and exam costs for lenders: cost, low. The department may examine licensees as often as it decides and can investigate anyone tied to the business. Licensees must respond to investigation notices or inquiries within 21 calendar days. Licensees must pay the costs of examinations. The department can also bill nonlicensed people for invest… - New licensing fees and filings for lenders: cost, low. Installment lenders and sales finance companies must use the Nationwide Mortgage Licensing System (NMLS) for licensing and filings. Opening a branch costs $250 for a loan branch or $100 for a sales branch. Annual renewal fees are $250 (loan), $125 (loan branch), $150 (sales), and $100 (sales branch… - Stricter exams and data‑sharing for money transmitters: cost, low. Money transmitters and their authorized delegates must give the Director full access to records in the format and place the Director sets. The Director may share confidential exam information with other agencies that agree in writing to keep it confidential, or when needed to protect the public und… - How your installment loan charges work: mixed, medium. For equal-payment loans, lenders may precompute charges and add them to principal, but you get a rebate by the actuarial method if you prepay in full after the first payment. The first payment period can be up to 21 days longer (or 11 days shorter), with per‑day charges that are not counted in any… - Loan rates, fees, and small-loan term cap: mixed, medium. Lenders may charge any interest rate allowed under referenced Nebraska statutes. You can be asked to pay many reasonable third‑party costs, but the origination fee is capped at the lesser of $500 or a formula: 7% of the first $2,000 plus 5% of the rest (or only on new money if you had a prior loan… - Payments, fees, and refunds on retail credit: mixed, medium. You can pay off your retail contract anytime. If you pay in full after the first payment is due, you get an actuarial rebate of unearned finance charges; small and partial-payment rebates are not required. Insurance charges cannot be higher than filed rates, and refunds plus unearned finance charge… - Retail installment sales pricing changes: mixed, medium. The law overhauls pricing rules for retail installment sales. It repeals some old interest, fee, and insurance rules, but it still caps the time‑price APR at 18% and allows a $10 minimum per contract. It caps the origination fee at $10 in most cases, with higher caps ($100 or $250) for farm or indu… - Rules for revolving installment loan accounts: mixed, medium. The law allows licensed lenders to offer preauthorized installment accounts that let you take advances over time under a written agreement. Card transactions are not treated as preauthorized loans. Your minimum monthly payment cannot be less than 1.5% of the average daily unpaid principal if the ba… - Rules for loans secured by your home: mixed, medium. When a loan is secured only by real property, and the principal is $7,500 or more and total liens are at most 100% of appraised value, the law does not cap the rate or origination fee. A prepayment penalty is allowed only if stated at closing, you prepay in full within two years, and you do not use… - Stronger penalties and borrower refunds for violations: mixed, medium. The director can suspend or revoke licenses and issue cease‑and‑desist orders and seek court injunctions or receivers. After a hearing, willful violations can draw fines up to $5,000 per separate violation plus investigation costs. If fines are unpaid, the director can place a lien on Nebraska asse… - Approval and fees to buy a transmitter: mixed, medium. You must get the director’s written OK before acquiring control of a licensee. Some transfers are excepted, like proxy voting, inheritances, court appointments, public offerings, and certain internal reorganizations; exempt buyers must still notify the director within 15 days. The director decides… - Licenses and bonds for installment lenders: mixed, medium. Businesses that make or market consumer loans must hold an installment loan license; sales finance companies must hold an installment sales license. Filing fees are $500 for a loan license and $150 for a sales license. You must keep required surety bonds; if your supplemental bond is too low, you h… - New capital and investment rules for transmitters: mixed, medium. Licensees must keep net worth of at least $100,000 or a higher amount based on a tiered share of total assets. The law caps how much can be held in certain investment types and sets limits for receivables from authorized delegates. If you deposit pledged securities with the department, you pay $1.5… - NMLS licensing and deadlines for money transmitters: mixed, medium. Money transmitters apply and renew through the NMLS. Applications must include detailed company, control, and delegate information; the director can accept substitutes but cannot waive the nonrefundable application fee. Once marked complete, the director decides within 120 days or may extend for go… - Who must be licensed to send money: mixed, medium. The law explains what counts as money transmission in Nebraska and who needs a license. It lists who is exempt, like insured banks, certain payment system operators, and agents of payees that meet strict conditions. You cannot offer, advertise, or provide money transmission without a Nebraska licen… - More reports and records for transmitters: mixed, medium. Licensees must file an audited annual financial statement within 90 days after each fiscal year. They must file two quarterly reports within 45 days after each quarter ends: a condition report and a list of all authorized delegates. Licensees must keep key records for 5 years and make them availabl… - New control and key person rules: mixed, medium. You are treated as controlling a licensee if you and certain related holders own or control 25% or more, can pick a majority of key people, or can steer policy. You may ask the director in writing, before a deal, whether your planned stake would count as control. When you add or replace a key perso… - Old sales‑finance licensing rules repealed: mixed, medium. The law repeals the old sales‑finance licensing framework, including the ban on acting without a license, certain exemptions, branch‑license rules, and set application, bond, and fee requirements. It also deletes related remittance and many listed code sections. Oversight now aligns under the newer… - New rules for preauthorized loan accounts: mixed, low. Lenders must use one of three allowed methods to compute charges on preauthorized loan accounts, and billing cycles must be monthly. The law explains how to count the unpaid balance each day as you borrow and pay. A lender may keep any security interest, including a mortgage, until the account is c… - Rules for preauthorized loans and credit insurance: mixed, low. On preauthorized loan accounts, lenders cannot compound unpaid charges back into principal, except for limited credit insurance charges. Some listed restrictions in the act do not apply to preauthorized loans. Lenders cannot cancel your credit life or disability insurance for delinquency until a pa… - New bond and job rules for loan originators: mixed, low. To get or keep a mortgage loan originator license, you must be covered by the required surety bond. If your employer’s mortgage banker or installment loan company license is canceled, surrendered, expired, revoked, or suspended, your license goes inactive and you cannot originate loans. The departm… - Quick data breach notices to regulators: mixed, low. Licensees must notify the director within three business days after learning of a data breach or unauthorized access involving a Nebraska resident’s personal information. If you must notify residents, you must send the department a copy of that notice at or before the same time. Law enforcement can… - Faster, clearer licensing for lenders: mixed, low. The department must approve or deny complete license applications with fees and bond within 90 days. Licenses cannot be transferred and the first license runs to the next December 31. The department can deem an application abandoned after 120 days without fixes. Getting a license makes the business… - New rules for money transfer delegates: mixed, low. The director can suspend or revoke an authorized delegate for violations, fraud, AML crimes, or unsafe practices after a hearing. At the same time, the law removes some old exam, investigation, recordkeeping, and mandatory delegate‑contract requirements, and some delegate duties tied to trust statu… - Stronger enforcement and license actions: mixed, low. After a hearing, the director may suspend or revoke a license for causes like fraud, unsafe practices, insolvency, or failure to cooperate. The director may also suspend or revoke a license if the licensee no longer meets new‑license qualifications. A licensee can surrender a license, but ending a… - Stronger oversight and transparency for money transmitters: mixed, low. The director can examine and investigate licensees and delegates and can work with other regulators. You must answer any investigation request within 21 days; each day late is a separate violation. Some license details and fines are public, but supervisory information shared through NMLS stays conf… - Stronger enforcement against loan fraud and abuses: mixed, low. The department can order violators to stop and, after a hearing, fine up to $5,000 for each act. It is a Class III misdemeanor to make a false statement to get a loan. These tools help deter fraud and protect the lending system. - Old insurance code sections repealed: mixed, low. The law repeals specific insurance code sections (including 44‑502, 44‑4109.01, and a 2025 session law section). Those rules no longer apply. This is a cleanup that changes where some requirements live in the code. ## Sponsors and cosponsors - Sponsor: Banking, Commerce and Insurance Committee ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-05-14 | legislature | Final Reading | pass | 49 | 0 | | | 2025-04-23 | legislature | Vote | fail | 33 | 0 | 16 | | 2025-04-09 | legislature | Vote | fail | 38 | 0 | 11 | | 2025-04-09 | legislature | Vote | fail | 36 | 0 | 13 | | 2025-04-09 | legislature | Vote | fail | 33 | 0 | 16 | | | legislature | Vote | fail | 36 | 0 | 13 | | | legislature | Vote | fail | 33 | 0 | 16 | | | legislature | Vote | fail | 33 | 0 | 16 | ## Actions (29) - 2025-06-06: Provisions/portions of LB473 amended into LB474 by AM669 (legislature) - 2025-06-06: Provisions/portions of LB278 amended into LB474 by AM669 (legislature) - 2025-06-06: Provisions/portions of LB232 amended into LB474 by AM669 (legislature) - 2025-05-20: Approved by Governor on May 20, 2025 (legislature) - 2025-05-14: Presented to Governor on May 14, 2025 (legislature) - 2025-05-14: President/Speaker signed (legislature) - 2025-05-14: Passed on Final Reading 49-0-0 (legislature) - 2025-05-14: Dispensing of reading at large approved (legislature) - 2025-04-29: Enrollment and Review ST27 recorded (legislature) - 2025-04-29: Enrollment and Review ST27 filed (legislature) - 2025-04-29: Placed on Final Reading with ST27 (legislature) - 2025-04-23: Advanced to Enrollment and Review for Engrossment (legislature) - 2025-04-23: Jacobson AM1080 adopted (legislature) - 2025-04-23: Jacobson AM1080 filed (legislature) - 2025-04-23: Jacobson AM1041 withdrawn (legislature) - 2025-04-23: Enrollment and Review ER48 adopted (legislature) - 2025-04-22: Enrollment and Review ER48 filed (legislature) - 2025-04-22: Placed on Select File with ER48 (legislature) - 2025-04-15: Jacobson AM1041 filed (legislature) - 2025-04-09: Advanced to Enrollment and Review Initial (legislature) - 2025-04-09: Banking, Commerce and Insurance AM307 adopted (legislature) - 2025-04-09: Jacobson AM669 adopted (legislature) - 2025-03-31: Jacobson AM669 to AM307 filed (legislature) - 2025-03-13: Banking, Commerce and Insurance priority bill (legislature) - 2025-03-10: Banking, Commerce and Insurance AM307 filed (legislature) - 2025-03-10: Placed on General File with AM307 (legislature) - 2025-01-27: Notice of hearing for February 18, 2025 (legislature) - 2025-01-23: Referred to Banking, Commerce and Insurance Committee (legislature) - 2025-01-21: Date of introduction (legislature) ## Bill text - Introduced, 2025-01-21: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB474.pdf) - Enrolled / Slip Law: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB474.pdf) - Final / Enacted: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB474.pdf) ## Related bills - LB468: Change provisions relating to inheritance taxes, change certain fee and tax provisions, and eliminate a sales tax exemption relating to data centers (failed) - LB13: Require the Department of Health and Human Services to file a state plan amendment relating to child care (failed) - LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis (failed) - LB170: Eliminate the sales tax exemptions for candy and soft drinks (failed) - LB646: Provide an exemption from brand inspections and change fees under the Livestock Brand Act (failed) - LB714: Change provisions relating to motor vehicle taxes and fees (failed) ## Sources - [Introduced (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB474.pdf) - [Enrolled / Slip Law (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB474.pdf) - [Final / Enacted (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB474.pdf) ## Related - [LB468: Change provisions relating to inheritance taxes, change certain fee and tax pro…](https://policyrisk.com/state-bill/NE-LB468-109) - [LB13: Require the Department of Health and Human Services to file a state plan amendm…](https://policyrisk.com/state-bill/NE-LB13-109) - [LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide f…](https://policyrisk.com/state-bill/NE-LB677-109) - [LB170: Eliminate the sales tax exemptions for candy and soft drinks](https://policyrisk.com/state-bill/NE-LB170-109) - [LB646: Provide an exemption from brand inspections and change fees under the Livestock…](https://policyrisk.com/state-bill/NE-LB646-109) - [LB714: Change provisions relating to motor vehicle taxes and fees](https://policyrisk.com/state-bill/NE-LB714-109) - [Nebraska bills](https://policyrisk.com/states/nebraska/bills) - [Nebraska state hub](https://policyrisk.com/states/nebraska) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/NE-LB474-109 (as of 2026-10-17).