Banking, Commerce and Insurance Committee
February 3, 2025
Committee Chair: Sen. Mike Jacobson | Bills Heard: 5 | Full Transcript (PDF)
LB609: Controllable Electronic Record Fraud Prevention Act
Introduced by: Sen. Eliot Bostar | Testimony: 8 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Nebraska advances fraud prevention bill targeting cryptocurrency and gift card scams. Sen. Bostar's LB609 would require fraud warnings on crypto kiosks and gift cards, license kiosk operators, and allow seizure of digital assets used in fraud—addressing a crisis that cost Nebraskans millions in 2024.
Why it matters: Scammers are using cryptocurrency kiosks and gift cards to steal from vulnerable Nebraskans, particularly elderly victims. Law enforcement says funds are nearly impossible to recover once transferred. The bill aims to make fraud less profitable and easier to investigate.
What they're saying: - Proponents: Douglas County Sheriff Aaron Hanson reported $1.14 million in losses from crypto scams in unincorporated county alone in 2024. Omaha City Council member Aimee Melton shared cases of victims losing $300,000 and $6,000 to romance and fake jury duty scams. Law enforcement and banking groups said clear notices and transaction limits are essential. - Opponents: ACLU and criminal defense attorneys opposed only the civil forfeiture provisions, arguing restitution is already available and forfeiture money goes to the state, not victims.
By the numbers: 69,000 cryptocurrency complaints filed with FBI in 2023 totaling $5.6 billion. Gift card scams cost consumers $228 million in 2022. Over 65% of cryptocurrency kiosk fraud losses involved adults 60+.
What's next: No vote taken. Committee will consider AM132, which reduces fiscal impact and increases transaction limits for existing users to $10,500.
Committee sentiment: Supportive: Sen. Hardin, Sen. Hallstrom, Sen. Jacobson Skeptical: Sen. Dungan
Sentiment estimated from questions and comments — not stated positions.
LB241: Cybersecurity Event Liability Protection
Introduced by: Sen. Bob Hallstrom | Testimony: 5 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Nebraska considers raising bar for data breach class actions. Sen. Hallstrom's LB241 would require plaintiffs to prove gross negligence rather than ordinary negligence to bring class action lawsuits over cybersecurity events—a move backed by banks, credit unions, and retailers but opposed by trial lawyers.
Why it matters: Businesses report being targeted by multiple class action lawsuits after data breaches even when customers suffered no actual financial harm. The suits are expensive to defend and often settle despite weak claims. The bill aims to deter frivolous litigation while preserving individual consumer rights.
What they're saying: - Proponents: Credit unions and banks described being hit with nationwide class action solicitations immediately after notifying members of breaches. Brandon Luetkenhaus (Nebraska Credit Union League) said one credit union faced lawsuits despite a ransomware attempt that was caught in under 10 minutes with no member losses. - Opponents: John Lindsay (Trial Attorneys) said state class actions are rarely used anyway; cases go to federal court. He noted gross negligence is an extremely high standard—even drunk driving isn't always considered gross negligence in Nebraska.
By the numbers: No specific data on Nebraska class actions provided, but proponents cited national trend of rising data breach litigation.
What's next: No vote taken. Committee heard concerns about potential conflict with existing Chapter 87 statutes.
Committee sentiment: Supportive: Sen. Jacobson Skeptical: Sen. Dungan
Sentiment estimated from questions and comments — not stated positions.
LB504: Age-Appropriate Design Code for Online Services
Introduced by: Sen. Carolyn Bosn | Testimony: 8 proponents, 4 opponents, 0 neutral | Read bill text (PDF)
Nebraska debates social media bill targeting addictive design features for kids. Sen. Bosn's LB504 would require platforms to limit infinite scroll, autoplay, and engagement-based algorithms for minors—sparking fierce debate over First Amendment protections and whether regulation can work without unconstitutional censorship.
Why it matters: Teens spend 7.7 hours daily on screens. Suicide is the second leading cause of death for 15-19 year-olds, up 62% since 2007. Parents say they're powerless against algorithms designed to maximize engagement. Tech companies have known for years their platforms harm children but profit incentives prevent self-correction.
What they're saying: - Proponents: Jill Edmundson, a software developer, testified her 9-year-old daughter developed anorexia after algorithms fed her pro-anorexia content. Adam Wiblishouser's 16-year-old son died buying fentanyl through Snapchat. Kyle Langvardt (UNL law professor) said bill is content-neutral, regulating design features like volume controls, not speech. - Opponents: NetChoice, SIIA, and ACLU argued vague standards like "severe psychological harm" will lead to over-censorship. Amy Bos cited federal court decisions protecting editorial decisions and algorithms as First Amendment speech. Kouri Marshall warned bill could harm marginalized youth who rely on social media for community.
By the numbers: 38 proponent letters, 4 opponent letters. California's similar law was partially enjoined; Maryland's faces legal challenges. UK has had comparable law since 2021.
What's next: No vote taken. Committee heard concerns about constitutionality but also frustration that industry refuses to self-correct. Sen. Jacobson noted opponents offered no specific amendments to fix constitutional issues.
Committee sentiment: Supportive: Sen. Hardin, Sen. Hallstrom, Sen. Riepe, Sen. von Gillern Skeptical: Sen. Dungan
Sentiment estimated from questions and comments — not stated positions.
LB525: Agricultural Data Privacy Act
Introduced by: Sen. Mike Jacobson | Testimony: 2 proponents, 0 opponents, 4 neutral | Read bill text (PDF)
Nebraska explores first-in-nation agricultural data ownership law. Sen. Jacobson introduced LB525 at governor's request to establish that farmers own data generated on their farms—but acknowledged bill needs significant work and will not advance this session.
Why it matters: Modern farm equipment generates real-time data on yields, soil conditions, and livestock health. This data is increasingly valuable for artificial intelligence and market analysis. Farmers currently have little control over how equipment manufacturers and technology providers use their data, creating risks for market manipulation and competitive disadvantage.
What they're saying: - Proponents: Agriculture Director Sherry Vinton said farmers should capture value they create. Kevin Kenney, a precision ag expert, described how John Deere Operation Center took over agricultural logistics with no regulation, leaking real-time data to cloud for use against farmers in commodity markets. - Neutral testifiers: Equipment dealers noted existing 2014 ag data transparency agreement covers major manufacturers. Cooperatives raised questions about data originating from multiple sources (farmers, dealers, agronomists) and how bill affects contractual rights. NRDs requested exemption for water quality data collection.
By the numbers: Nebraska has 22 million acres of crop ground and 20 million acres of pastureland generating continuous data streams.
What's next: No vote taken. Sen. Jacobson will introduce interim study to refine bill over summer. Encouraged testimony from opponents to improve bill for next session.
Committee sentiment: Supportive: Sen. Jacobson
Sentiment estimated from questions and comments — not stated positions.
LB602: Data Elimination and Limiting Extensive Tracking and Exchange (DELETE) Act
Introduced by: Sen. Juarez (introduced by LA Rolf Kloch) | Testimony: 0 proponents, 1 opponents, 2 neutral | Read bill text (PDF)
Nebraska considers data broker regulation bill as implementation concerns mount. Sen. Juarez's LB602 would require data brokers to register and allow consumers to request deletion of personal data through centralized portal—but Secretary of State warns implementation could be costly and timeline unrealistic.
Why it matters: Data brokers operate largely unregulated, selling detailed personal profiles ("Economically Anxious Elders," "Heavy Purchasers of Pregnancy Tests") to anyone willing to pay. These lists have been used to target elderly victims in lottery scams. The bill aims to give Nebraskans control over their data and prevent fraud.
What they're saying: - Opponents: Consumer Data Industry Association argued Nebraska's existing Data Privacy Act already provides deletion rights. Data brokers provide legitimate services for fraud detection, underwriting, and law enforcement. Deletion mechanism will be extraordinarily expensive. - Neutral: Secretary of State's Office supports the goal but warned implementation is problematic. Would require hiring three full-time employees with data broker expertise, developing new systems, and creating public website. Unlikely to meet January 2026 registration deadline. Deletion fees may exceed $2,000 per user.
By the numbers: California's similar law won't begin processing deletion requests until August 2026, providing no test case for Nebraska.
What's next: No vote taken. Committee heard concerns about fiscal impact and implementation timeline. Bill includes 3-year grace period to allow state to develop necessary infrastructure.
Session Notes
Committee heard five bills on February 3, 2025. LB609 (fraud prevention), LB241 (cybersecurity liability), and LB504 (social media design standards) generated substantial testimony and debate. LB525 (agricultural data) and LB602 (data brokers) received limited testimony. Sen. Jacobson announced he will not advance LB525 this session and will pursue interim study instead. No votes were taken on any bills. Committee adjourned late in evening after hearing testimony on all five bills.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.