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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1174
Introduced by Kauth, 31.
Read first time January 21, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to the Nebraska Money Transmitters Act; to1
amend sections 8-2701 and 8-2718, Revised Statutes Supplement, 2025;2
to change provisions related to reports of condition; to provide for3
a remittance transfer tax; to harmonize provisions; to provide an4
operative date; to repeal the original sections; and to declare an5
emergency. 6
Be it enacted by the people of the State of Nebraska,7
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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 section 3 of this act shall be3
known and may be cited as the Nebraska Money Transmitters Act.4
Sec. 2. Section 8-2718, Revised Statutes Supplement, 2025, is5
amended to read: 6
8-2718 (1) Each licensee shall submit a report of condition within7
forty-five days after the end of a calendar quarter, or within any8
extended time as the director may prescribe. 9
(2) The report of condition shall include: 10
(a) Financial information at the licensee level;11
(b) Nationwide and state-specific money transmission transaction12
information in every jurisdiction in the United States where the licensee13
is licensed to engage in money transmission; 14
(c) A permissible investments report of the licensee;15
(d) Transaction destination country reporting for money received for16
transmission, if applicable including: ; and 17
(i) The amount of transactions to all foreign countries that are not18
foreign adversary countries as defined in section 3 of this act and the19
estimated amount of the remittance transfer tax imposed under section 320
of this act collected for such transactions; and 21
(ii) The amount of transactions to all foreign adversary countries22
as defined in section 3 of this act and the estimated amount of the23
remittance transfer tax imposed under section 3 of this act collected on24
such transactions; and 25
(e) Any other information the director reasonably requires with26
respect to the licensee. 27
(3) The director is authorized to utilize the Nationwide Mortgage28
Licensing System and Registry for the submission of the report required29
by this section and is authorized to update as necessary the requirements30
of this section to carry out the purposes of the Nebraska Money31
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Transmitters Act and maintain consistency with Nationwide Mortgage1
Licensing System and Registry reporting. 2
(4) The information required by subdivision (2)(d) of this section3
shall only be included in a report of condition submitted within forty-4
five days after the end of the fourth calendar quarter.5
Sec. 3. (1) For purposes of this section: 6
(a) Active duty member of the armed forces means a person who is a7
member of the armed forces of the United States on active duty as defined8
in 10 U.S.C. 101(d)(1), as such section existed on January 1, 2026, or a9
member of the Nebraska National Guard in active service of the state;10
(b) Dependent means a spouse or any other person for whom an active11
duty member of the armed forces provided more than one-half of that12
person's support during the previous calendar year;13
(c) Designated recipient has the same meaning as in section 919 of14
the Electronic Fund Transfer Act, 15 U.S.C. 1693o–1, as such section15
existed on January 1, 2026; 16
(d) Foreign adversary country means any country listed in 15 C.F.R.17
791.4, as such regulation existed on January 1, 2026;18
(e) Remittance transfer has the same meaning as in section 919 of19
the Electronic Fund Transfer Act, 15 U.S.C. 1693o–1, as such section20
existed on January 1, 2026; 21
(f) Remittance transfer provider has the same meaning as in section22
919 of the Electronic Fund Transfer Act, 15 U.S.C. 1693o-1, as such23
section existed on January 1, 2026; and 24
(g) Sender has the same meaning as in section 919 of the Electronic25
Fund Transfer Act, 15 U.S.C. 1693o–1, as such section existed on January26
1, 2026. 27
(2)(a) Except as provided in subdivision (2)(b) of this section,28
there is hereby imposed an excise tax of two percent on any remittance29
transfer by a licensee or authorized delegate. 30
(b) There is hereby imposed an excise tax of twenty percent on any31
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remittance transfer by a licensee or authorized delegate to a resident of1
a foreign adversary country. 2
(c) The tax imposed in subdivisions (2)(a) and (b) of this section3
shall not apply to any remittance transfer if the sender or designated4
recipient is an active duty member of the armed forces or a dependent of5
such member. 6
(d) To qualify for the exemption under subdivision (2)(c) of this7
section, the sender or designated recipient shall present a valid United8
States Department of Defense Common Access Card or other valid military9
identification to the remittance transfer provider at the time of the10
transaction. 11
(3)(a) The sender of a remittance transfer shall pay the tax imposed12
by this section on such transfer. 13
(b) If any tax imposed by this section is not paid at the time a14
transfer is made, then to the extent that such tax is not paid, the15
remittance transfer provider of such transfer shall pay the tax.16
(c) The remittance transfer provider of a remittance transfer shall17
collect the amount of the tax imposed by this section on such transfer18
from the sender and remit such tax to the Department of Revenue19
quarterly. 20
(4) Sections 77-2707 to 77-2711 shall apply to the tax imposed by21
this section as if such tax were a sales or use tax imposed by the22
Nebraska Revenue Act of 1967. 23
(5) The Department of Revenue may share any information related to24
the tax imposed by this section with the Department of Banking and25
Finance. 26
(6)(a) No refund of the tax imposed by this section shall be allowed27
unless a claim for such refund is filed within the required period for a28
refund of sales taxes. 29
(b) The Department of Revenue shall establish an expedited refund30
process for any active duty member of the armed forces or dependent who31
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was charged the tax in error. 1
(c) To be eligible for the expedited refund process described in2
subdivision (6)(b) of this section, an active duty member of the armed3
forces or dependent who was charged in error shall submit proof of4
military status to the Department of Revenue. 5
(7) The Department of Revenue may adopt and promulgate rules and6
regulations to prescribe any and all forms and supporting documentation7
necessary for the payment, collection, and reporting of the tax imposed8
by this section to establish the expedited refund process described in9
subdivision (6)(b) of this section. 10
(8) The Department of Revenue may use electronic funds transfer to11
collect the tax imposed by this section or to pay any refund of such tax.12
(9) The use of any electronic filing of documents or electronic13
funds transfer shall not alter the rights of any party from the rights of14
such party if a different method of filing or payment was used.15
(10) All taxes received by the Department of Revenue pursuant to16
this section shall be remitted to the State Treasurer for credit to the17
General Fund. 18
(11) Upon request from the Department of Revenue, the Department of19
Banking and Finance may make a claim against the surety bond of a20
licensee for payment of any tax imposed under this section on such21
licensee. 22
Sec. 4. This act becomes operative on July 1, 2026.23
Sec. 5. Original sections 8-2701 and 8-2718, Revised Statutes24
Supplement, 2025, are repealed. 25
Sec. 6. Since an emergency exists, this act takes effect when26
passed and approved according to law. 27
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