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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1063
Introduced by Bostar, 29.
Read first time January 14, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to the Nebraska Money Transmitters Act; to1
amend sections 8-2701, 8-2702, 8-2711, and 8-2742, Revised Statutes2
Supplement, 2025; to define and redefine terms; to change provisions3
relating to applications for licenses and adoption of federal law by4
reference; to state legislative findings; to prohibit money5
transmission by foreign adversaries as prescribed; to provide6
applicability; to provide duties for the Director of Banking and7
Finance; to require certain information from applicants and8
licensees; to harmonize provisions; and to repeal the original9
sections. 10
Be it enacted by the people of the State of Nebraska,11
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Section 1. Section 8-2701, Revised Statutes Supplement, 2025, is1
amended to read: 2
8-2701 Sections 8-2701 to 8-2742 and sections 5 to 8 of this act3
shall be known and may be cited as the Nebraska Money Transmitters Act.4
Sec. 2. Section 8-2702, Revised Statutes Supplement, 2025, is5
amended to read: 6
8-2702 For purposes of the Nebraska Money Transmitters Act:7
(1) Acting in concert means persons knowingly acting together with a8
common goal of jointly acquiring control of a licensee whether or not9
pursuant to an express agreement; 10
(2) Applicant means a person filing an application for a license11
under the Nebraska Money Transmitters Act; 12
(3) Authorized delegate means a person designated by the licensee to13
engage in money transmission on behalf of the licensee;14
(4) Average daily money transmission liability means the amount of15
the licensee's outstanding money transmission obligations in this state16
at the end of each day in a given period of time, added together, and17
divided by the total number of days in the given period of time. For18
purposes of calculating average daily money transmission liability under19
the Nebraska Money Transmitters Act for any licensee required to do so,20
the given period of time shall be each calendar quarter;21
(5) Closed loop stored value means stored value that is redeemable22
by the issuer of such stored value only for goods or services provided by23
the issuer or affiliates of such issuer or franchisees of the issuer or24
affiliates of such franchisees, except to the extent the stored value is25
required by applicable law to be redeemable in cash for the cash value of26
the stored value; 27
(6)(a) Control means: 28
(i) Direct or indirect power over the vote of at least twenty-five29
percent of the outstanding voting shares or voting interests of a30
licensee or person in control of a licensee; 31
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(ii) The power to elect or appoint a majority of key individuals,1
executive officers, managers, directors, trustees, or other persons that2
have managerial authority of a person in control of a licensee; or3
(iii) The power to exercise, directly or indirectly, a controlling4
influence over the management or policies of a licensee or person in5
control of a licensee. 6
(b) For purposes of determining the percentage of a person7
controlled by any other person, the person's interest shall be aggregated8
with the interest of any other immediate family member, including the9
person's spouse, parents, children, siblings, mothers-in-law, fathers-in-10
law, sons-in-law, daughters-in-law, brothers-in-law, and sisters-in-law,11
and any other person who shares such person's residence;12
(7) Department means the Department of Banking and Finance;13
(8) Director means the Director of Banking and Finance;14
(9) Eligible rating means a credit rating of any of the three15
highest rating categories provided by an eligible rating service, whereby16
each category may include rating category modifiers such as plus or minus17
for Standard and Poor's Corporation or the equivalent for any other18
eligible rating service. Long-term credit ratings are deemed eligible if19
the rating is equal to A- or higher by Standard and Poor's Corporation,20
or the equivalent from any other eligible rating service. Short-term21
credit ratings are deemed eligible if the rating is equal to or higher22
than A-2 or SP-2 by Standard and Poor's Corporation or the equivalent23
from any other eligible rating service. In the event that ratings differ24
among eligible rating services, the highest rating shall apply when25
determining whether a security bears an eligible rating.26
(10) Eligible rating service means any nationally recognized27
statistical rating organization approved by the Securities and Exchange28
Commission and any other organization designated by the director by rule29
or order; 30
(11) Federally insured depository financial institution means a31
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bank, credit union, savings and loan association, trust company, savings1
association, savings bank, industrial bank, or industrial loan company2
organized under the laws of the United States or any state of the United3
States, when such bank, credit union, savings and loan association, trust4
company, savings association, savings bank, industrial bank, or5
industrial loan company has federally insured deposits;6
(12) Foreign adversary person means: 7
(a) A foreign person that is domiciled in, is headquartered in, has8
its principal place of business in, or is organized under the laws of any9
country listed in 15 C.F.R. 791.4; 10
(b) An entity with respect to which a foreign person or combination11
of foreign persons described in subdivision (12)(a) of this section12
directly or indirectly own at least a twenty-five percent share; or13
(c) A person subject to the direction or control of a foreign person14
or entity described in subdivision (12)(a) or (b) of this section;15
(13) (12) In this state means at a physical location within this16
state for a transaction requested in person. For a transaction requested17
electronically or by telephone, the provider of money transmission may18
determine if the person requesting the transaction is in this state by19
relying on other information provided by such person regarding the20
location of the individual's residential address or the entity's21
principal place of business or other physical address location and any22
records associated with such person that the provider of money23
transmission may have that indicate the location of the individual's24
residential address or the entity's principal place of business or other25
physical address location, including, but not limited to, an address26
associated with an account; 27
(14) (13) Individual means a natural person; 28
(15)(a) Informal value transfer system services means services29
provided by any system, mechanism, or network of persons or entities30
that: 31
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(i) Receives money for the purpose of making the funds or an1
equivalent value payable to a third party in another geographic location,2
whether or not in the same form; or 3
(ii) Facilitates the transfer of money domestically or4
internationally outside the conventional money-transmission system.5
(b) Informal value transfer system services includes hawala systems6
or agencies or similar systems or agencies for transferring money by7
payment to an agent who instructs a remote associate to pay a final8
recipient. 9
(c) Informal value transfer system services does not include armored10
car services or issuance of gift cards; 11
(16) (14) Key individual means any individual ultimately responsible12
for establishing or directing policies and procedures of the licensee,13
such as an executive officer, manager, director, or trustee;14
(17) (15) Licensee means a person licensed under the Nebraska Money15
Transmitters Act; 16
(18) (16) Material litigation means litigation, that according to17
United States generally accepted accounting principles, is significant to18
a person's financial health and would be required to be disclosed in the19
person's annual audited financial statements, report to shareholders, or20
similar records; 21
(19) (17) Model Money Transmission Modernization Act means the Model22
Money Transmission Modernization Act approved for state adoption by the23
Conference of State Bank Supervisors Board of Directors that sets24
nationwide standards, including net worth, surety bond, and permissible25
investments requirements, to modernize the supervision and regulation of26
money transmitters; 27
(20) (18) Monetary value means a medium of exchange, whether or not28
redeemable in money; 29
(21) (19) Money means a medium of exchange that is authorized or30
adopted by the United States or a foreign government. Money includes a31
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monetary unit of account established by an intergovernmental organization1
or by agreement between two or more governments; 2
(22)(a) (20)(a) Money transmission means any of the following:3
(i) Selling or issuing payment instruments to a person located in4
this state; 5
(ii) Selling or issuing stored value to a person located in this6
state; and 7
(iii) Receiving money for transmission from a person located in this8
state. 9
(b) Money transmission includes payroll processing services and10
informal value transfer system services. Money transmission does not11
include the provision solely of online or telecommunications services or12
network access; 13
(23) (21) Multistate licensing process means any agreement entered14
into by and among state regulators relating to coordinated processing of15
applications for money transmission licenses, applications for the16
acquisition of control of a licensee, control determinations, or notice17
and information requirements for a change of key individuals;18
(24) (22) Nationwide Mortgage Licensing System and Registry means19
the Nationwide Mortgage Licensing System and Registry, also known as the20
Nationwide Multistate Licensing System and Registry, developed by the21
Conference of State Bank Supervisors and the American Association of22
Residential Mortgage Regulators and owned and operated by the State23
Regulatory Registry LLC, or any successor or affiliated entity, for the24
licensing and registration of persons in financial services industries;25
(25)(a) (23)(a) Outstanding money transmission obligation means:26
(i) Any payment instrument or stored value issued or sold by the27
licensee to a person located in the United States or reported as sold by28
an authorized delegate of the licensee to a person that is located in the29
United States that has not yet been paid or refunded by or for the30
licensee or has been escheated in accordance with applicable abandoned31
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property laws; or 1
(ii) Any money received for transmission by the licensee or an2
authorized delegate in the United States from a person located in the3
United States that has not been received by the payee or refunded to the4
sender or has been escheated in accordance with applicable abandoned5
property laws. 6
(b) For purposes of subdivision (25) (23) of this section, in the7
United States includes, to the extent applicable, a person in any state,8
territory, or possession of the United States; the District of Columbia;9
the Commonwealth of Puerto Rico; or a United States military installation10
that is located in a foreign country; 11
(26) (24) Payment instrument means a written or electronic check,12
draft, money order, traveler's check, or other written or electronic13
instrument for the transmission or payment of money or monetary value,14
whether or not negotiable. Payment instrument does not include stored15
value or any instrument that: 16
(a) Is redeemable by the issuer only for goods or services provided17
by the issuer or affiliates of such issuer or franchisees of the issuer18
or affiliates of such franchisees except to the extent the instrument is19
required by applicable law to be redeemable in cash for the cash value of20
the instrument; or 21
(b) Is not sold publicly but issued and distributed as part of a22
loyalty, rewards, or promotional program; 23
(27) (25) Payroll processing services means receiving money for24
transmission pursuant to a contract with a person to deliver wages or25
salaries, make payment of payroll taxes to state and federal agencies,26
make payments relating to employee benefit plans, or make distributions27
of other authorized deductions from wages or salaries. Payroll processing28
services does not include an employer performing payroll processing29
services on the employer's own behalf or on behalf of an affiliate of the30
employer; 31
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(28) (26) Person means any individual, general partnership, limited1
partnership, limited liability company, corporation, trust, association,2
joint stock corporation, or other corporate entity identified by the3
director; 4
(29) (27) Receipt means a paper receipt, electronic record, or other5
written confirmation; 6
(30) (28) Receiving money for transmission or money received for7
transmission means receiving money or monetary value in the United States8
for transmission within or outside the United States by electronic or9
other means; 10
(31) (29) Remit means to make direct payments of money to a licensee11
or a representative of a licensee authorized to receive money or to12
deposit money in a bank in an account specified by the licensee; and13
(32) (30) Stored value means monetary value representing a claim14
against the issuer of the stored value evidenced by an electronic or15
digital record, and that is intended and accepted for use as a means of16
redemption for money or monetary value, or payment for goods or services.17
Stored value includes, but is not limited to, prepaid access as defined18
by 31 C.F.R. 1010.100. Notwithstanding the foregoing, stored value does19
not include a payment instrument or closed loop stored value, or stored20
value not sold publicly but issued and distributed as part of a loyalty,21
rewards, or promotional program. 22
Sec. 3. Section 8-2711, Revised Statutes Supplement, 2025, is23
amended to read: 24
8-2711 (1) Applicants for a license shall apply in a form and in a25
medium as prescribed by the director. Each such form shall contain26
content as set forth by rule, regulation, instruction, or procedure of27
the director and may be changed or updated by the director in accordance28
with applicable law in order to carry out the purposes of the Nebraska29
Money Transmitters Act and maintain consistency with Nationwide Mortgage30
Licensing System and Registry licensing standards and practices. The31
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application shall state or contain, as applicable: 1
(a) The legal name and residential and business addresses of the2
applicant and any fictitious or trade name used by the applicant in3
conducting the applicant's business; 4
(b) A list of any criminal conviction of the applicant and any5
material litigation in which the applicant has been involved in the ten-6
year period next preceding the submission of the application;7
(c) A description of any money transmission previously provided by8
the applicant and the money transmission that the applicant seeks to9
provide in this state; 10
(d) A list of the applicant's proposed authorized delegates and the11
locations in this state where the applicant and its authorized delegates12
propose to engage in money transmission; 13
(e) A list of other states in which the applicant is licensed to14
engage in money transmission and any license revocation, suspension, or15
other disciplinary action taken against the applicant in another state;16
(f) Information concerning any bankruptcy or receivership proceeding17
affecting the applicant or a person in control of an applicant;18
(g) A sample form of contract for authorized delegates, if19
applicable; 20
(h) A sample form of payment instrument or stored value, as21
applicable; 22
(i) The name and address of any federally insured depository23
financial institution through which the applicant plans to conduct money24
transmission; and 25
(j) A certification that the applicant is not a foreign adversary26
person, along with sufficient information to enable the director to27
verify the veracity of the certification; 28
(k) A certification that each key individual and person in control29
of the applicant is not a foreign adversary person, along with sufficient30
information to enable the director to verify the veracity of the31
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certification; and 1
(l) (j) Any other information the Director or the Nationwide2
Mortgage Licensing System and Registry reasonably requires with respect3
to the applicant. 4
(2) If an applicant is a corporation, limited liability company,5
partnership, or other legal entity, the applicant shall also provide:6
(a) The date of the applicant's incorporation or formation and state7
or country of incorporation or formation; 8
(b) If applicable, a certificate of good standing from the state or9
country in which the applicant was incorporated or formed;10
(c) A brief description of the structure or organization of the11
applicant, including any parents or subsidiaries of the applicant, and12
whether any such parents or subsidiaries are publicly traded;13
(d) The legal name, any fictitious or trade name, all business and14
residential addresses, and the employment, as applicable, of each key15
individual and person in control of the applicant in the ten-year period16
preceding the submission of the application; 17
(e) A list of any criminal convictions and material litigation for a18
person in control of the applicant that is not an individual that has19
been involved with the applicant in the ten-year period preceding the20
submission of the application; 21
(f) A copy of audited financial statements of the applicant for the22
most recent fiscal year and for the two-year period preceding the23
submission of the application or, if determined to be acceptable to the24
director, certified unaudited financial statements for the most recent25
fiscal year or any other period acceptable to the director;26
(g) A certified copy of unaudited financial statements of the27
applicant for the most recent fiscal quarter; 28
(h) If the applicant is a publicly traded corporation, a copy of the29
most recent report filed with the Securities and Exchange Commission30
pursuant to the Securities Exchange Act of 1934; 31
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(i) If the applicant is a wholly owned subsidiary of:1
(i) A corporation publicly traded in the United States, a copy of2
audited financial statements for the parent corporation for the most3
recent fiscal year or a copy of the parent corporation's most recent4
report filed pursuant to the Securities Exchange Act of 1934; or5
(ii) A corporation publicly traded outside the United States, a copy6
of similar documentation filed with the regulator of the parent7
corporation's domicile outside the United States; 8
(j) The name and address of the applicant's registered agent in this9
state; and 10
(k) Any other information the director reasonably requires with11
respect to the applicant. 12
(3) A nonrefundable application fee of one thousand five hundred13
dollars must accompany an application for a license under this section.14
(4) Other than the nonrefundable application fee, the director may15
waive one or more requirements of this section or permit an applicant to16
submit other information in lieu of the required information.17
Sec. 4. Section 8-2742, Revised Statutes Supplement, 2025, is18
amended to read: 19
8-2742 For purposes of the Nebraska Money Transmitters Act:20
(1) 15 C.F.R. 791.4 means 15 C.F.R. 791.4, as such regulation21
existed on January 1, 2026; 22
(2) (1) 31 C.F.R. 1010.100 means 31 C.F.R. 1010.100, as such23
regulation existed on January 1, 2025; 24
(3) (2) Bank Secrecy Act means the Bank Secrecy Act, 31 U.S.C. 531125
et seq., and the implementing regulations of such act, as such act and26
regulations existed on January 1, 2025; 27
(4) (3) Bank Service Company Act means the Bank Service Company Act,28
12 U.S.C. 1861 et seq., as such act existed on January 1, 2025;29
(5) (4) Commodity Exchange Act means the Commodity Exchange Act, 730
U.S.C. 1 et seq., as such act existed on January 1, 2025;31
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(6) (5) Edge Act means the Edge Act, 12 U.S.C. 611 et seq., as such1
act existed on January 1, 2025; 2
(7) (6) Federal Credit Union Act means the Federal Credit Union Act,3
12 U.S.C. 1751 et seq., as such act existed on January 1, 2025;4
(8) (7) Federal Deposit Insurance Act means the Federal Deposit5
Insurance Act, 12 U.S.C. 1811 et seq., as such act existed on January 1,6
2025; 7
(9) (8) Federal remittance rule means 12 C.F.R. part 1005, subpart8
B, as such regulation existed on January 1, 2025; 9
(10) (9) Foreign Account Tax Compliance Act means the Foreign10
Account Tax Compliance Act, 26 U.S.C. 1471 et seq., as such act existed11
on January 1, 2025; 12
(11) (10) International Banking Act of 1978 means the International13
Banking Act of 1978, 12 U.S.C. 3101 et seq., as such act existed on14
January 1, 2025; 15
(12) (11) Securities Exchange Act of 1934 means the Securities16
Exchange Act of 1934, 15 U.S.C. 78a et seq., as such act existed on17
January 1, 2025; 18
(13) (12) United States Bankruptcy Code means 11 U.S.C. 101 et seq.,19
as such sections existed on January 1, 2025; and 20
(14) (13) Uniting and Strengthening America by Providing Appropriate21
Tools Required to Intercept and Obstruct Terrorism Act of 2001 means the22
Uniting and Strengthening America by Providing Appropriate Tools Required23
to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as24
such act existed on January 1, 2025. 25
Sec. 5. The Legislature finds and declares that:26
(1) The United States has determined that the governments of China,27
Cuba, Iran, North Korea, Russia, and the Maduro Regime in Venezuela are28
foreign adversaries of the United States because they have engaged in29
long-term patterns or serious instances of conduct significantly adverse30
to United States national security or the security and safety of United31
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States persons; 1
(2) China's effort to advance its technological capabilities poses2
significant threats to the United States and its citizens;3
(3) China is currently operating a Military-Civil Fusion strategy4
with the goal of developing the most technologically advanced military in5
the world. A key part of this strategy is removing barriers between6
China's civilian sectors and its military and defense industrial sectors;7
(4) China is also seeking to grow its technological dominance in8
international markets; 9
(5) To advance its missions, China has increased its efforts to10
collect foreign data; 11
(6) Under Article 7 of China's National Intelligence Law of 2017,12
which states in part that any organization or citizen shall support,13
assist, and cooperate with the state intelligence work, China may compel14
its citizens and companies to assist with surveillance efforts or15
surrender data to Chinese intelligence agencies, including data belonging16
to the United States or its citizens; 17
(7) China's collection of data is a threat to national security and18
the United States Department of Homeland Security and the National19
Counterintelligence and Security Center have both issued publications20
warning United States citizens and businesses of the potential threats21
stemming from China's intelligence laws; 22
(8) In November 2025, the White House produced a security memo23
asserting that a Chinese technology company shares its customers' data,24
including customers' payment records, with the Chinese government and25
concurrently the Pentagon sent a letter to Congress indicating intent to26
list that Chinese technology company as a Chinese military company;27
(9) The threat of data collection by foreign adversaries is not only28
a national security threat but also a threat to consumers who provide29
data and other information to foreign adversary-based companies;30
(10) Pursuant to this state's supervisory authority over financial31
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transactions, the state has put in place a regulatory scheme for1
licensing money transmitters; 2
(11) Money transmitters provide consumers with nonbank access to3
sending and receiving funds, often internationally, and require access to4
sensitive customer data; 5
(12) As a part of the licensing scheme, the state looks at the6
character and general fitness of applicants to ensure that it is in the7
interest of the public to permit the applicant to engage in money8
transmission in the state; and 9
(13) Due to the risks posed by foreign adversaries to this state and10
its citizens, the state finds that it should not grant money transmitter11
licenses to companies with connections to foreign adversaries.12
Sec. 6. (1)(a) For purposes of section 8-2713, if an applicant or13
any key individual or person in control of the applicant fails to14
establish that such applicant, key individual, or person is not a foreign15
adversary person, the director shall presume that the character and16
general fitness of such applicant, key individual, or person indicates17
that it is not in the interest of the public to permit the applicant to18
engage in money transmission. 19
(b) For purposes of section 8-2716, if a person, or group of persons20
acting in concert, seeking to acquire control of a licensee or if any key21
individual or person that would be in control of a licensee after22
acquisition of control fails to establish that such person, group, or key23
individual is not a foreign adversary person, the director shall presume24
that the character and general fitness of such person, group, or key25
individual indicates that it is not in the interest of the public to26
permit the person, group of persons acting in concert, or key individual27
to control the licensee. 28
(c) For purposes of section 8-2734, if a licensee or authorized29
delegate or any key individual or persons in control of a licensee or30
responsible person of the authorized delegate fails to establish that31
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such licensee, delegate, key individual, or person is not a foreign1
adversary person, the director shall presume that the character and2
general fitness of such licensee, delegate, key individual, or person3
indicates that it is not in the interest of the public to permit the4
licensee, delegate, key individual, or person to provide money5
transmission. 6
(d) For purposes of section 8-2735, if an authorized delegate or a7
person in control of the authorized delegate fails to establish that such8
delegate or person is not a foreign adversary person, the director shall9
presume that the character and general fitness of such delegate or person10
indicates that it is not in the interest of the public to permit the11
authorized delegate to provide money transmission.12
(2) The presumptions described in subsection (1) of this section13
shall only be rebutted by clear and convincing evidence that:14
(a) The relevant foreign government or foreign nongovernment person15
listed in 15 C.F.R. 791.4 has expressly exempted the relevant applicant,16
licensee, authorized delegate, key individual, or person from all legal17
obligations to share any information from an individual in this state18
with any foreign adversary person; 19
(b) The exemption described in subdivision (2)(a) of this section20
will be judicially enforceable within this state against the foreign21
government and nongovernment person by any individual in this state who22
uses the money transmitter services of the exempted individual or person;23
(c) The exempted individual or person has established a relationship24
with an auditor organized within, and with its primary place of business25
within, the United States that will verify, through an external26
compliance audit or similar process conducted at least quarterly and in27
compliance with all applicable auditing standards, whether any28
information is shared by the exempted individual or person with a foreign29
adversary person during the duration of the license or at any point30
within three years after the expiration of the license; and31
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(d) The exempted individual or person has adopted a policy that it1
will promptly notify all affected individuals and the Attorney General if2
it or its auditor concludes that information has been shared with a3
foreign adversary person during the duration of the license or at any4
point within three years after the expiration of the license.5
Sec. 7. (1) On the effective date of this act, the changes made by6
this legislative bill shall apply to all existing and future licenses and7
applications for license under the Nebraska Money Transmitters Act.8
(2) Within sixty days after the effective date of this act, the9
director shall send a written request to each licensee and applicant with10
a completed application that requests supplemental information necessary11
for the director to investigate and determine compliance with the changes12
made by this legislative bill, including the certifications required by13
section 8-2711. For any licensee that does not provide such information14
within sixty days after receiving such request or that the director has15
reasonable suspicion to believe is a foreign adversary person or has any16
key individual or person in control that is a foreign adversary person,17
the director shall institute proceedings under section 8-2734 to revoke18
the licensee's license. 19
Sec. 8. Within thirty days after the effective date of this act,20
the director shall prescribe forms and instructions and issue an order21
governing applications under the Nebraska Money Transmitters Act to22
require information sufficient to show that the applicant is not a23
foreign adversary person. 24
Sec. 9. Original sections 8-2701, 8-2702, 8-2711, and 8-2742,25
Revised Statutes Supplement, 2025, are repealed. 26
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