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Committee hears LB59 to let natural resource districts use electronic payments
Summary
LB59 would allow Nebraska natural resources districts to use electronic funds transfers and automated clearing house payments in addition to paper checks; proponents said the change modernizes operations and will save staff time and postage; no opponents testified.
Sen. Rita Sanders of Bellevue introduced LB59 to the Government, Military and Veterans Affairs Committee, saying the bill would update statute to permit natural resources districts to use electronic funds transfer (EFT) and automated clearing house (ACH) payments alongside existing check and warrant options.
"This update simply allows NRD to use these more efficient, more secure payment methods that are now commonplace for both private and public transactions across the country," Sen. Rita Sanders said.
Mike Sousek, general manager of the Lower Platte South Natural Resources District, testified for the Lower Platte South NRD and the Nebraska Association of Resource Districts. He told the committee the district expects to save about $2,000 annually on supplies such as printer ink, checks, envelopes and postage, and to reduce staff time spent preparing and mailing checks.
"Overall, it will improve operational efficiency, streamline payments, and enhance customer satisfaction as many have requested this preferred payment method for faster payment delivery," Sousek said.
Committee members asked whether check-writing would remain an option for those who prefer it; Sousek said checks would continue to be available and participation in EFT/ACH would be at each district's discretion. Sen. Sanders alerted the committee to a minor drafting amendment to correct the phrase "automatic clearing house" to the correct term "automated clearing house." No opponents or neutral witnesses opposed the bill at the hearing. Supporters asked the committee to advance LB59 with the drafting correction.
