Unclaimed property, health insurance and mortgage regulation topped the list of banking and insurance issues considered by lawmakers this session.
Senators passed a bill intended to assist the state treasurer in returning unclaimed property and protecting property owners’ personal information.
Under LB432, sponsored by Omaha Sen. John Nelson, the state is required to maintain personal records of abandoned property owners, including social security number, date of birth and last known address, with the same confidentiality as tax return information held by the state Department of Revenue.
The bill also caps the fee that professional finders may charge at 10 percent of the abandoned property’s value. To claim a fee, a finder is required to disclose to the claimant in writing when the property was, or will be, abandoned and that the property can be claimed free of charge.
LB432 passed on a 47-0 vote.
Legislators also passed two bills relating to access to health insurance.
LB551, introduced by Omaha Sen. Tom White, allows families to continue procuring health insurance for children over 23 years of age.
Currently, insurance policies must indicate that coverage may include any children younger than 23 years old. LB551 increases the age to 30 if a child is unmarried and meets other criteria.
Insurance companies are allowed to charge an additional premium for the child.
The bill passed 45-0.
Funding changes to the Nebraska Comprehensive Health Insurance Pool (NECHIP) Act were approved this session.
NECHIP provides health insurance to Nebraska residents who are unable to obtain it at an affordable price or without restrictions because of a medical condition.
LB358, introduced by Omaha Sen. Rich Pahls, requires the CHIP board of directors to conduct an annual review to determine whether reimbursement rates are excessive and whether savings can be achieved by establishing the reimbursement rate as a multiplier of an objective standard.
Under the bill, people who apply for NECHIP based on eligibility other than that required by the Health Insurance Portability and Accountability Act will have to exhaust coverage under the COBRA health coverage program.
The bill passed on a 47-0 vote.
Lawmakers also passed a bill that brings the state into compliance with the federal Secure and Fair Enforcement for Mortgage Licensing Act.
LB328, introduced by Pahls at the request of the state Department of Banking and Finance, makes several changes to state laws governing mortgage originators. Among other provisions, the bill:
- repeals the exemption of individual mortgage loan originators from state licensure;
- requires individual mortgage loan originators who work for installment loan companies to be licensed; and
- mandates that state-chartered, non-insured depository institutions register their loan originators in the same manner required of insured depository institutions.
A bill that clarifies provisions relating to the deposit of public funds was approved by the Legislature.
Current law requires public fund deposits in excess of amounts insured by the Federal Deposit Insurance Corporation (FDIC) to be secured either by pledged securities or a guarantee bond.
LB259, sponsored by Hastings Sen. Dennis Utter, clarifies that references to amounts insured by the FDIC also include amounts guaranteed by the FDIC for any law requiring a bank, capital stock financial institution or qualifying mutual financial institution to secure the deposit of public funds in excess of amounts insured by the FDIC.
The bill passed 49-0.
Senators also changed provisions relating to credit report security freezes.
LB177, sponsored by Omaha Sen. Steve Lathrop, repeals a requirement that consumer reporting agencies remove a security freeze seven years after it is initiated and reduces to $3 the fee that agencies may charge for placing, temporarily lifting or removing a security freeze.
LB177 passed on a 45-0 vote.
Lastly, lawmakers approved the committee clean-up bill.
LB327, introduced by Pahls on behalf of the state Department of Banking and Finance, makes a number of changes to Nebraska’s banking laws. Among other provisions, the bill:
- requires state-chartered banks holding fiduciary accounts to pledge collateral to secure amounts that exceed coverage guaranteed by the FDIC;
- provides that examination and investigation reports remain confidential records of the department, even when transmitted to the subject of the report;
- authorizes the department director to allow a state-chartered bank to pay dividends even when its previous losses equaled or exceeded its undivided profits on hand; and
- changes to a sliding scale the amount of pledged securities that trust companies and bank trust departments must pledge to the department to maintain their status.
