All Roll Calls
Yes: 45 • No: 39
NevadaAB50083rd Regular Session (2025)House
AN ACT relating to financial institutions; providing for the licensure and regulation by the Commissioner of Financial Institutions of payments banks; setting forth various procedures and requirements for the organization and licensure of payments banks; setting forth the powers and duties of the Commissioner with respect to payments banks; imposing various requirements and restrictions concerning the operation of payments banks; establishing certain prohibited acts relating to payments banks; revising certain provisions relating to financial institutions; making an appropriation; providing penalties; and providing other matters properly relating thereto.
Sponsored By: Steve Yeager (Democratic)
Failed
BDR 55-999
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Bill Overview
Analyzed Economic Effects
29 provisions identified: 7 benefits, 2 costs, 20 mixed.
Banks must report suspected financial exploitation
Payments-bank staff must report suspected exploitation of older or vulnerable people when the incident directly relates to their work. Each bank must name one or more designated reporters. Those reporters must notify listed aging-services offices, protective services, law enforcement, or a hotline as soon as reasonably practicable. Reporting is required when observations, knowledge, or staff reports give reasonable cause to believe exploitation occurred. Reports involving an agency must go to a different agency, and good-faith reporters receive legal immunity.
Payments banks train to protect vulnerable customers
Payments banks must train directors, officers, and employees whose regular duties may involve older or vulnerable people. This includes direct contact or reviewing or approving those customers’ financial records, documents, or transactions. Training must cover how to spot, investigate, and report suspected financial exploitation. It is due as soon as reasonably practical, within six months of starting employment or the role.
Payments bank workers can get benefits
Nevada payments banks can offer pensions, retirement plans, and other benefits to their officers and employees. Banks can also help pay for these benefits. The bank’s board must approve the plan. The law does not require banks to offer benefits.
Merchants gain protection when payments banks fail
The Commissioner can require a payments bank to provide an irrevocable letter of credit for its merchants. It must last at least one year and come from an approved financial institution in an approved form. It is payable to the Commissioner for merchants' benefit if the bank becomes bankrupt, enters receivership, or becomes insolvent.
Nevada can run a government-only payments bank
The Nevada Secretary of State can obtain a license to run a payments bank. It can serve only governments, including state, local, and tribal governments—not household customers. The Commissioner can waive or change requirements by regulation when they do not fit this government-operated bank.
Nevada funds new payments bank oversight
Beginning July 1, 2025, Nevada provides State General Fund money to the Division of Financial Institutions for implementation. Funding is $3.035862 million for fiscal year 2025–2026 and $2.778095 million for fiscal year 2026–2027. It covers staff, operations, equipment, and information services. Remaining funds cannot be newly committed after June 30 of each fiscal year. Unspent balances return to the state by September 18, 2026, and September 17, 2027, respectively.
Payments banks avoid certain audit charges
Payments banks licensed under this law are exempt from the Commissioner’s assessment for independent certified public accountant audits and examinations. This exemption does not remove all audit or supervision costs. The law does not state the assessment amount or provide a direct payment to households.
Payments bank directors face eligibility limits
Certain bankruptcy or creditor proceedings require written Commissioner permission before a person can serve as a payments bank director. So does a qualifying unpaid judgment lasting more than three months. Specified jobs at unaffiliated payments banks or Nevada commercial banks also require permission. Directors must own at least $1,000 in qualifying stock or investment certificates. Selling or pledging that required ownership ends eligibility.
Payments banks face stock sale rules
Payments banks cannot organize under Nevada's general corporation law and need a license before issuing common or preferred stock. Additional authorized but unissued stock sales or purchase options require written approval. Permanent capital stock needs at least $1 in par value; lowering it below $1 requires written permission. Banks cannot pay commissions for their original stock sale, and the Commissioner can set conditions on proceeds and expenses. Securities-sale authority runs through the next June 30 and can be renewed yearly.
Payments bank customers get insurance options
Before opening, payments banks must prove their deposits have federal insurance, approved private insurance, or permission to operate uninsured. Private insurance needs approval from both Nevada's financial institutions and insurance commissioners. They must review financial, management, contract, and risk factors, and require protection substantially equivalent to the amount required by the FDIC. For cause, the financial institutions Commissioner can require insurer reserves in cash or U.S. Treasury bills or notes after consulting the insurance Commissioner. These private deposit insurance contracts are not treated as ordinary insurance business under Nevada's general insurance laws.
Bank certificate investors gain repayment priority
Payments banks can issue fully paid, accumulative, minimum-term, and other Commissioner-approved investment certificates. Holders are not liable for bank debts or assessments. In liquidation, they receive full payment before stockholders receive a distribution, but they do not share in profits. The Commissioner cannot approve certificates that impair applicable FDIC account insurance.
Families and agents gain account options
Minors can hold payments-bank accounts or investment certificates with written consent from a parent, trustee, or guardian. For minors age 14 or older, specified payments and signed receipts release the bank from responsibility for that transaction. Married people can hold these accounts in their own right; fiduciaries can hold them for named beneficiaries and receive funds. Unless the document says otherwise, general banking authority under a power of attorney covers listed payments-bank transactions. Non-spouse agents must be listed only as power of attorney, not as cosigners with survivorship rights.
Bank records gain privacy and legal coverage
Bank examination and supervisory records are generally confidential, and covered records are exempt from general public-records access. The Commissioner can share them with specified officials or institutions only with comparable protections against further disclosure. Covered criminal-investigation disclosures generally require bank and named-customer notice; covered court disclosures let banks object or seek protection. Banks can share reports internally, with prospective buyers under nondisclosure agreements, or as required by the SEC. Beginning October 1, 2025, Nevada financial-record rules cover regulated payments banks; banking evidence rules also cover banks licensed in another state.
Payments bank names and ads face limits
Regulated payments banks can use banking terms; prospective corporations need approved filings to use "bank" or "trust." Licensees need approval before using or changing business names, and names and forms cannot mislead the public. Banks cannot make prohibited state-supervision claims, use Nevada's Great Seal, advertise banned business, or misrepresent securities or depositor rights. They must stop ads flagged in writing as unauthorized or misleading, and cannot use "deposit" when federal law bars it. Only authorized entities can solicit or advertise products, except banks, trust companies, licensed brokers, thrift companies, and credit unions.
Bank borrowing options include insurance safeguards
Payments banks can issue capital notes to document borrowing. Those notes can rank behind investment certificates and other liabilities for repayment. Banks with insured deposit accounts cannot borrow so much that they impair the accounts' insurance.
Bank insiders face limits and safeguards
Division regulators cannot hold bank interests, act for a payments bank, receive its payments, owe it money, or obtain services through fraud or unfair preference. Bank insiders cannot accept specified personal benefits, except benefits from the bank or its affiliate. They cannot buy bank debts below face value, except stock certificates and junior capital notes; violations are misdemeanors. Holding companies cannot charge unreasonable supervisory fees, and the Commissioner can inspect affiliated transactions and stop specified unapproved dealings after required findings. Banks can cover certain defense costs, but federal restrictions apply and payment is not required.
Bank mergers and closures require approvals
Payments-bank merger or reorganization plans need board approval, a majority of voting power at a stockholder meeting, and Commissioner approval. Banks must provide requested review information; unauthorized mergers, liability transfers, and asset purchases are barred. Voluntary liquidation after a stockholder or member vote requires a permit and provision for paying all depositors and creditors. Banks remain subject to examination and reporting during liquidation. Covered liquidation asset sales or transfers need Commissioner approval and a majority board or manager vote.
Bank offices expand with spending limits
Nevada payments banks can open offices beyond their main office. They must report office location changes in writing within 30 days. Land and office-building costs cannot exceed 70% of the bank's capital, surplus, and reserves. The law does not require banks to open more offices.
Banks gain investments but must protect deposits
Payments banks can invest customer deposits only in categories allowed by law. These include high-quality liquid assets, specified insured deposits, and specified government or agency investments. Banks can invest their own equity in related service companies and operating or financial subsidiaries. They cannot use third-party deposits for those company investments.
Failed banks get resolution and trustee rules
For distressed payments banks, the Commissioner can borrow from the FDIC against bank assets; receivers and liquidators need Commissioner permission. Asset sales to the FDIC need a court order; loans need court approval when the FDIC serves as receiver or liquidator. A liquidated bank's trustee duties end when a court appoints a successor, or at takeover when the trust document provides one. The Commissioner, FDIC, or liquidating agent can exercise the security document's sale power and resign the trust. Those actions have the same legal effect as actions by the bank.
Failed payments banks get resolution rules
The FDIC can accept appointment without bond to resolve an insured bank taken over and closed for unmet depositor demands. Its acceptance transfers the bank's assets, business, and property automatically; federal law controls where state powers conflict. A court can order enforcement of owners' or managers' individual liability, and insured deposit payments give the FDIC depositors' recovery rights. Nevada law determines depositor and creditor rights; reopening requires Commissioner consent and terms approved by both the Commissioner and FDIC. Before dissolution, a majority of directors or managers can reorganize only after required dissolution steps, written approval from owners of two-thirds of stock or membership interests, Commissioner approval, and filing articles. The new bank receives the old bank's assets subject to existing liabilities.
Payments bank leaders face accountability rules
Payments banks need 5–25 directors, with most not serving as full-time bank officers. Directors and officers must act in good faith with prudent care and skill; boards elect officers and approve institutions holding bank funds. Boards must meet quarterly, have a majority present to conduct business, and give directors enough notice for special meetings. Official Commissioner messages must be presented at the next meeting and recorded in its minutes. Stockholders fill vacancies, while boards can make temporary appointments until the next annual meeting. Boards must promptly review written Commissioner concerns about personnel and immediately remove anyone when they find the concern well founded. Removing an ineligible director requires a two-thirds board vote, later stockholder ratification, and advance reasons with a chance to speak.
Payments bank oversight allows limited exceptions
Nevada product innovation program participants are exempt from this chapter unless the Director requires it to apply under state law. Payments banks leave the general financial-institution fee framework, but remain subject to their own supervision and examination fees. The Commissioner publishes the next year's fees by December 31. The Commissioner can accept examinations by listed federal banking bodies or conduct joint examinations.
Payments bank violations trigger corrective action
The Commissioner can order payments banks to stop violations of governing documents or state law, and unsafe or harmful practices. Continued noncompliance can trigger an ordered directors' meeting within 60 days, unless restrained by a court or the board. Actions taken at that meeting bind bank officers. After notice and a hearing, repeated violations or unpaid specified Nevada business taxes can lead to charter suspension or revocation. Anyone knowingly and willingly participating in a violation is liable for resulting damage to the bank, stockholders, depositors, or creditors.
Payments banks face licensing and ownership checks
Beginning October 1, 2025, Nevada's payments banks must get approval to organize and a license before issuing permanent stock. Applicants must show competence, submit fingerprints, and allow state and federal background checks; specified misconduct, crimes, or licensing actions within 10 years can disqualify them. Charters expire after 12 months without active business, and incomplete applications are withdrawn after 12 months, unless extensions are allowed. Banks must immediately report ownership changes reaching 5%; buyers acquiring at least 25% or control need approval and a fitness review, unless that review is waived after similar government screening. Office moves require 30 days' written notice and approval when the Commissioner requires it. The Commissioner can suspend or revoke licenses for disqualifying conduct, or change them for reasonable cause with 15 days' notice and an appeal right.
Payments banks gain powers with limits
Licensed Nevada payments banks can offer deposit accounts, money transfers, merchant payment services, and certain trust services. They gain state and federal banking powers, but specified loan activities remain barred. The Commissioner can limit powers after notice and a hearing; federal law generally controls conflicts unless the Commissioner provides otherwise. Banks can join the Federal Reserve System, where federal reserve requirements satisfy state cash-balance rules. Licensed payments banks are exempt from state money-transmission rules, except as provided in NRS 671.155.
Payments banks must keep financial bonds
Payments banks must maintain bond coverage in an amount and form accepted by the Commissioner. The Commissioner can require proof that bond premiums were paid. Before opening, an approved uninsured bank must provide a surety bond or irrevocably pledge eligible assets covering likely liquidation or conservatorship costs. Pledged assets must be free of other claims and cannot secure another obligation. The Commissioner can increase required security to protect the public; this security covers bank-resolution costs, not deposit insurance.
Payments banks must maintain capital cushions
Payments banks must continuously maintain a leverage capital ratio of at least 10% and the required capital stock and paid-in surplus. The Commissioner sets that capital amount after reviewing the application; its minimum is the lesser of $3 million or the Commissioner-determined amount. Payment-volume capital uses added rates for each band: 5% through $10 million; 3% above $10 million through $25 million; 1.5% through $100 million; 0.75% through $250 million; 0.25% through $1 billion; 0.15% through $5 billion; 0.08% through $20 billion; and 0.05% above $20 billion. Risk capital must equal at least twice the greater average monthly chargeback measure: the previous six months or a six-month forecast. The Commissioner can order capital restored and require an unlimited, unconditional, continuous holding-company guarantee, secured partly by approved collateral.
Payments banks pay for yearly audits
Payments banks must pay for an independent audit at least once each year, using an accountant approved by the Commissioner. The Commissioner can set its scope and must receive a certified copy, including management and internal-control letters. Each bank must also be examined at least once every two years and provide information when demanded. The Commissioner can investigate suspected violations, inspect premises and records, subpoena witnesses, and administer oaths. Nevada must share bank reports and information with the FDIC; this does not replace banks' federal reporting duties.
Sponsors & Cosponsors
Sponsor
Steve Yeager
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 6/1/2025
Final Passage - Assembly (2nd Reprint)
Yes: 20 • No: 22
House vote • 5/30/2025
Final Passage - Assembly (1st Reprint)
Yes: 25 • No: 17
Actions Timeline
(No further action taken.)
6/3/2025HouseFrom printer. To reengrossment. Reengrossed. Second reprint.
6/2/2025HouseTo printer.
6/1/2025HouseRead third time. Lost. (Yeas: 20, Nays: 22.)
6/1/2025HouseDispensed with reprinting.
6/1/2025HouseRead third time. Amended. (Amend. No. 966.)
6/1/2025HousePlaced on General File.
6/1/2025HouseTaken from Chief Clerk's desk.
6/1/2025HousePlaced on Chief Clerk's desk.
5/30/2025HouseTaken from General File.
5/30/2025HouseAction reconsidered.
5/30/2025HouseRead third time. Lost. (Yeas: 25, Nays: 17.)
5/30/2025HouseFrom printer. To engrossment. Engrossed. First reprint.
5/30/2025HouseRead third time. Amended. (Amend. No. 890.) To printer.
5/29/2025HousePlaced on General File.
5/29/2025HouseFrom committee: Amend, and do pass as amended.
5/29/2025HouseRereferred to Committee on Ways and Means. Exemption effective. To committee.
4/14/2025HouseTaken from General File.
4/14/2025HouseRead second time.
4/14/2025HouseNotice of eligibility for exemption.
4/10/2025HouseFrom committee: Do pass.
4/10/2025HouseFrom printer. To committee.
3/25/2025HouseRead first time. Referred to Committee on Commerce and Labor. To printer.
3/24/2025House
Bill Text
As Introduced
Reprint 1
Reprint 2
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