Banking, Commerce and Insurance Committee
March 17, 2025
Committee Chair: Sen. Mike Jacobson | Bills Heard: 3 | Full Transcript (PDF)
LB686: Firearm Merchant Category Code Restriction Act
Introduced by: Sen. Dan Lonowski | Testimony: 4 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Nebraska considers blocking firearm merchant category codes as 19 states already have. LB686 would prohibit government entities from tracking gun ownership and restrict use of merchant codes that specifically identify firearm retailers—a practice that could enable financial discrimination against the industry.
Why it matters: Hornady Manufacturing, a major Nebraska employer, testified it couldn't find insurance after 24 carriers declined to quote, citing the company's ammunition business. The bill addresses real concerns about debanking and financial discrimination, but raises thorny questions about government mandates on private business.
What they're saying: - Proponents: "19 states have already enacted protections. Credit card companies prefer the status quo. This prevents circumventing federal gun registry bans." (National Shooting Sports Foundation) - Opponents: "MCCs classify merchants, not products. They can't create registries. This disrupts interstate commerce and solves a problem that doesn't exist in Nebraska." (Nebraska Bankers Association)
By the numbers: 77 proponent letters, 34 opponent letters. The firearms-specific MCC was created in 2022 by the International Organization for Standardization; three states currently mandate its use.
What's next: No vote was taken. Sen. Lonowski indicated willingness to work on amendments, including limiting the bill to in-state sales only, before advancing to General File.
Committee sentiment: Supportive: Sen. Hardin, Sen. Hallstrom, Sen. Jacobson Skeptical: Sen. Bostar, Sen. Dungan
Sentiment estimated from questions and comments — not stated positions.
LB687: Firearm Industry Nondiscrimination Act (FIND Act)
Introduced by: Sen. Dan Lonowski | Testimony: 3 proponents, 4 opponents, 0 neutral | Read bill text (PDF)
Nebraska considers blocking state contracts with companies that discriminate against firearm industry. LB687 would require contractors to certify they don't discriminate against firearm businesses, preventing state funds from flowing to discriminatory firms—but raises thorny questions about government mandates on private business decisions.
Why it matters: Hornady Manufacturing, a central Nebraska employer with 1,200+ workers, faced 24 insurance carrier rejections and software vendor terminations solely due to its ammunition business. The bill addresses documented discrimination, but other states' experiences show unintended consequences: Texas taxpayers paid $504 million extra in borrowing costs in the first year alone.
What they're saying: - Proponents: "Operation Choke Point caused hundreds of millions in damage. Large banks have explicit anti-firearm policies. The state shouldn't fund discrimination." (National Shooting Sports Foundation) - Opponents: "Banks should be free to manage risk without government interference. This violates First Amendment principles and costs taxpayers millions in higher borrowing costs." (Nebraska Bankers Association)
By the numbers: 29 proponent letters, 34 opponent letters. Nine states have enacted similar legislation; Texas law cost taxpayers $504 million in year one, $416 million annually thereafter.
What's next: No vote was taken. Sen. Lonowski indicated willingness to work on amendments. Committee noted opponents reached out to discuss concerns before hearing, showing good-faith negotiation.
Committee sentiment: Supportive: Sen. von Gillern Skeptical: Sen. Jacobson, Sen. Dungan, Sen. Hallstrom
Sentiment estimated from questions and comments — not stated positions.
LB204: Biometric Autonomy Liberty Law (BALL)
Introduced by: Sen. Kathleen Kauth | Testimony: 4 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Nebraska considers first-in-region biometric privacy law as tech companies race to monetize personal data. LB204 would require explicit opt-in consent before companies collect fingerprints, face scans, voice prints, and other biometric data—establishing individual ownership rights over data worth billions to tech firms.
Why it matters: The global biometric industry is worth $47 billion and growing fast. Unlike a compromised credit card, you can't change your iris scan or fingerprints. Illinois passed similar protections in 2008; Colorado and California have followed. But overlapping with Nebraska's new Data Privacy Act (effective Jan. 1) creates compliance confusion.
What they're saying: - Proponents: "Biometric data is personal property. Companies are harvesting it for billions without consent. This is a reasonable, business-friendly approach with a 60-day cure period." (ACLU of Nebraska) - Opponents: "This conflicts with existing state privacy law. International bad actors won't comply anyway. It could push innovation out of Nebraska." (Tech Nebraska)
By the numbers: Global biometric industry: $47.2 billion (2024), projected $84.5 billion (2029). Illinois BIPA law has successfully reduced violations since 2008.
What's next: No vote was taken. Sen. Kauth indicated openness to amendments and willingness to work with business community. Committee noted this is late-session hearing, suggesting limited advancement prospects this year.
Committee sentiment: Supportive: Sen. Dungan, Sen. Hardin Skeptical: Sen. Jacobson, Sen. Riepe, Sen. Wordekemper
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee heard three bills on March 17, 2025. LB686 and LB687 were both introduced by Sen. Lonowski and address firearm industry issues from different angles—one focusing on merchant category codes and financial tracking, the other on government contracting discrimination. LB204, reintroduced by Sen. Kauth from previous session, addresses broader biometric privacy concerns. No votes were taken on any bills. Committee received: LB686 (77 proponent letters, 34 opponent letters, 0 neutral); LB687 (29 proponent letters, 34 opponent letters, 0 neutral); LB204 (testimony only, no written letter counts provided). No ADA testimony was received for any bill. Committee noted that Sen. Lonowski worked with opponents on LB687 before hearing, demonstrating good-faith negotiation efforts.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.