Banks and advocates back felony for possession of postal receptacle master keys; civil‑liberties group urges caution

LINCOLN — The Judiciary Committee heard broad support for LB785, a bill that would criminalize possession, duplication, transfer, or use of postal receptacle master keys or locks with intent to defraud.

Sponsor Sen. Bob Holstrom said the rise in check‑washing and mail theft motivated the bill, citing joint FBI and U.S. Postal Inspection Service reporting and testimony that check‑fraud losses have climbed sharply in recent years. "There’s no nothing positive about having a mailbox key," one banking lobbyist said, urging a clear state offense.

Proponents included bankers, credit‑union representatives, AARP volunteers and law‑enforcement advocates who described the keys as a targeted vulnerability enabling organized criminal schemes that convert stolen mail into washed checks or identity theft. Iris Wiese of First State Bank said banks release deposited funds under federal timelines that can allow fraud to clear before financial institutions detect it.

Opponents, led by Spike Eicholt for the ACLU and defense attorneys, urged the committee not to elevate the offense to a felony, noting burglary‑tool statutes and other fraud provisions can already reach many cases. Eicholt suggested narrowing the bill’s reach to keys functionally unique to postal or cluster‑box systems or making it a misdemeanor to avoid overcriminalization.

Committee members probed how thieves obtain master keys and whether the federal postal code already covers such conduct; witnesses said markets for illicit keys and limited manufacturers of standardized mailbox components can make keys attainable to bad actors. The sponsor said the measure would give local law enforcement a tool to intervene earlier and prosecute conduct that often escapes federal thresholds.

No committee action was taken; the sponsor asked the committee to advance the bill for potential amendment.