PREPARED BY: Nikki Swope
LB 201 DATE PREPARED: January 28, 2025
PHONE: 402-471-0042
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS $785,970 $134,000,000 $861,006 $134,000,000
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $785,970 $134,000,000 $861,006 $134,000,000
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 201 would require Money Transmitter licensees or their authorized delegates to collect a fee for each money transmission
transaction sent to a person outside the United States in an amount equal to (a) ten percent of the value of the money transmission
transaction or (b) ten thousand dollars, whichever is less. Fees collected are to be remitted quarterly to the Department of Banking and
Finance (NDBF) with the assistance of the Nebraska State Patrol.
LB201 would have a significant impact the NDBF Consumer Financial Services Division. Currently, NDBF does not receive data from
licensees on a quarterly basis that provides the information regarding the amounts of the tr ansactions. If the bill would be enacted, the
NDBF would need to collect this data on a quarterly basis that the Department does not have access to from a report filed in the
Nationwide Multi-State Licensing system. Due to the current limitations of the NDBF licensing system, additional staff would be required
to meet the requirements of the bill. Additionally, LB 201 would require Nebraska to develop a separate reporting process which would
necessitate additional operating expenses in FY 2025 to hire a consultant to create a database to manage the fees. It is estimated that
the expense for the contractor is $150,000.
The NDBF estimates that seven FTE would be needed, including four Senior Examiners, an Accountant III, an Attorney III and an
Administrative Programs Officer I. The to tal cost for the personnel , including benefits and operating expenses , is $785,970 for FY
2025-26 . This includes the one-time contractor expense. The total cost for the personnel , including benefits and operating expenses, is
$861,006 for FY 2026 -27.
There are currently 189 Money Transmitter licensees in Nebraska. Money transmission t ransactions through the end of the 3
rd
quarter
2024 totaled $376,080,834. Based on this amount, it is anticipated that ten percent of the value of the money transmission transaction
or (b) ten thousand dollars, whichever is less would approximately be $134,000,000 annually.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISIO N: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 201 AM: AGENCY/POLT. SUB: Department of Banking and Finance
REVIEWED BY: Ryan Walton DATE: 1/27/2025 PHONE: (402) 471-4174
COMMENTS: The Department of Banking and Finance’s assessment of fiscal impact from LB 201, appears reasonable.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 201 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Banking and Finance
Prepared by:
(3) Shauna Paolini Date Prepared:
(4)
01/21/2025 Phone:
(5)
402-471-4954
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
785,970 134,000,000 861,006 134,000,000
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
LB 201 would require Money Transmitter licensees or their authorized delegates to collect a fee for each money
transmission transaction sent to a person outside the United States, in an amount equal to (a) ten percent of the
value of the money transmission transaction or (b) ten thousand dollars, whichever is less. Fees collected are to
be remitted quarterly to the Department of Banking and Finance (NDBF).
LB 201 would have significant impact on the operations of the NDBF Consumer Financial Services division.
NDBF does not receive data from licensees on a quarterly basis that breaks down each transaction to calculate
whether a transaction exceeds $100,000 (triggering the max fee). If this bill would pass as written, we would
need to collect this data on a quarterly basis from each of our licensees outside of the Money Services
Businesses (MSB) call report filed in the Nationwide Multi- State Licensing System and Registry (NMLS).
NMLS is an online licensing system created by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators, that NDBF uses for processing license applications and the
filing of reports and processing of fees.
Due to limitations of our current licensing system, we would be unable to collect the necessary information and
conduct necessary timely audits of our licensees’ information without additional administrative/examination/
other staff. The additional information required by LB 201 would require Nebraska develop a separate
reporting process, which would require additional operating expenses in FY 2025 to hire a consultant/developer
to create a database to manage the fees. That expense is estimated at $150,000.
NDBF is unable to meet these requirements with existing resources. To accomplish these duties, NDBF
estimates the need for an additional seven FTE, including 4 Senior Examiners, an Accountant III, an Attorney
III, and an Administrative Programs Officer I.
There are currently 189 Money Transmitter licensees in Nebraska. Transactions outside of the U.S. for 3rd
quarter 2024 were reported as 1,147,848 transactions totaling $376,080,834.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Senior Examiner 4 4 255,000 348,500
Administrative Program Officer I 1 1 32,799 44,825
Accountant III 1 1 45,991 62,854
Attorney III 1 1 57,642 78,777
Benefits………………………………...…… 223,092 297,456
Operating…………………………...………. 171,446 28,594
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………….....