Bill > AB500

This bill creates a comprehensive regulatory framework for a new type of financial institution called a "payments bank" in Nevada. The bill establishes detailed licensing, operational, and oversight requirements for these banks, which are designed to focus on payment processing, merchant services, and deposit accounts while being prohibited from traditional lending activities. Key provisions include mandating minimum capital requirements, restricting advertising, establishing governance standards for boards of directors, requiring specific training for staff about elder financial exploitation, and giving the Commissioner of Financial Institutions extensive supervisory powers. The payments bank can engage in activities like money transmission, merchant acquiring activities, and maintaining deposit accounts, but cannot make loans. The bill also requires payments banks to maintain various types of capital (including leverage, payment volume, and risk capital) and provides for their organization, merger, liquidation, and potential reorganization. Additionally, the bill makes consequential amendments to numerous existing Nevada statutes to integrate payments banks into the state's financial regulatory landscape. The legislation includes an appropriation to support the Division of Financial Institutions in implementing these new regulations and requires a report to the Legislature by December 31, 2026, describing the implementation of payments bank licensure.