PREPARED BY: Kenneth Boggs
LB 559 DATE PREPARED: April 17, 2025
PHONE: 471-0050
Revision: 01
Update with AM 731 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
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Any Fiscal Notes received from state agencies and political subdivisions are attached f ollowing the Legislative Fiscal Analyst Estimate.
LB 559 criminalizes the unauthorized installation and use of skimmer devices, which are used to steal financial data from ATMs, point-
of-sale systems, and fuel pumps.
The bill establishes penalties based on the financial impact, with offenses ranging from misdemeanors to felonies depending on the
amount stolen. It also targets large-scale financial crime operations by introducing enhanced penalties for individuals involved in a
“continuing criminal enterprise.” Additionally, the bill includes provisions for asset forfeiture, allowing for the seizure of money and
property obtained through financial transaction crimes.
AM731 incorporates provisions from LB464, primarily addressing organized retail crime and establishing a Financial Fraud Victims'
Reimbursement Fund. The amendment clearly defines essential terms such as "organized retail crime," "aggregated retail market
value," and "retail merchandise," and establishes penalties based on the aggregated value of merchandise involved, including
enhanced penalties for repeat offenses.
Additionally, AM731 creates a dedicated fund to reimburse victims of financial fraud offenses, financed through proceeds from asset
forfeitures linked to financial transaction offenses. The Attorney General is assigned responsibility for managing this fund, including
determining victim eligibility and reimbursement amounts.
The Supreme Court has stated that LB 559 will have minimal fiscal impact and will not require any additional resources.
The Nebraska Department of Correctional Services (NDCS) could see an increase in the number of individuals incarcerated as a result
of the bill; however, the specific fiscal impact is indeterminable at this ti me.
It is important to note that determining the exact fiscal impact of AM731 on the state of Nebraska is difficult due to several variables that
cannot be accurately projected at this time. The amendment creates new offenses and penalty structures related to organized retail
crime and financial transaction fraud, but the number of individuals who may be charged, convicted, and sentenced under these
provisions remains uncertain.
For the state to see a substantial increase in expenditures, particularly in the NDCS budget, a notable uptick in incarceration rates tied
specifically to the new felony offenses outlined in AM731 would need to occur. This would likely require:
• A significant increase in enforcement and prosecution efforts for organized retail crime and financial fraud,
• A consistent pattern of high-dollar offenses resulting in Class IIA, ID, or IC felony convictions,
Because AM731 includes penalties for conduct that could range from misdemeanor to serious felonies depending on the dollar value
and prior offenses, the fiscal impact will depend on how often higher -level felony thresholds are met.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 559 AM731 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Correctional Services
Prepared by:
(3) Lisa Stanton Date Prepared:
(4)
04/17/2025 Phone:
(5)
(402)479-5702
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
LB559 AM731 provides for offenses relating to skimmer devices and criminal enterprises involving financial
offenses and creates the Financial Fraud Victims’ Reimbursement Fund. The bill could increase the number of
persons in prison. The specific amount of impact is indeterminable.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………. ..
TOTAL……………………………… .....