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Nebraska ID Scanning Laws & Regulations

Nebraska sample ID

Can you scan an ID in Nebraska?

Nebraska has a statute that governs issues associated with a business’s practice of scanning IDs. IDs may be scanned in some instances, but there are limits on PII retention.

Overview of Nebraska ID Scanning Laws

Nebraska law prohibits anyone with access to machine-readable information encoded on a driver’s license (or state identification card) from compiling, storing, preserving, trading, selling, or sharing such information.  Such information may be compiled, stored, or preserved (but not traded, sold, or shared) under one of the following circumstances.

  •  Sale of alcohol, lottery tickets, tobacco, or methamphetamine precursors:  A business engaged in selling these items may scan IDs for the purpose of selling such items and may store only the following information.
  • For alcohol, lottery tickets, and tobacco:  age and ID number.*
  • For methamphetamine precursors:  age, ID number, name, address, type of ID, and ID-issuing entity.

The business must post a sign at the point of sale that the ID will be scanned and that the above information will be stored.  The stored information may be used only by government agencies.  Additionally, the software employed by the business must not store additional information, and programmers for the software must certify to that effect. 

*Information scanned, compiled, stored, or preserved in connection with a sale of alcohol, lottery tickets, or tobacco may not be retained for longer than 18 months, unless required by applicable laws. 

Approval of Payment

  • In order to “approve a negotiable instrument, an electronic funds transfer, or a similar method of transfer,” businesses may—
  • scan, compile, store, or preserve information obtained from the scan in order to provide it to a check services company in compliance with the federal Fair Credit Reporting Act for the purpose of (i) completing the transaction requested by the ID holder or (ii) preventing fraud or other criminal activity; or
  • scan and store such information only as necessary to (i) prevent actual or potential fraud, unauthorized transactions, claims, or other liability or (ii) resolve a dispute or inquiry by the ID holder. 

ID Scanning for Loyalty Enrollment in Nebraska

A business is not likely allowed to store information obtained from a scan in enrolling a consumer in the business’s loyalty program because the business it not approving a payment method. 

ID Scanning for a Credit application in Nebraska

A business is likely allowed to store information obtained from a scan to the extent approving a credit card is deemed equivalent to approving a method of payment similar to a negotiable instrument (e.g., a promissory note – receiving credit and promising to pay back).

ID Scanning for Check Acceptance in Nebraska

A business is likely allowed to store information obtained from a scan in approving a negotiable instrument such as a check. 

ID Scanning for Refunds in Nebraska  

While the statute is not clear, a business is likely allowed to store information obtained from a scan in issuing refunds to the extent the business is approving a payment method (“payment” to the consumer), and it is necessary to prevent fraud or unauthorized transactions.

ID Scanning for Customer Pick-Up in Nebraska

A business is not likely allowed to store information obtained from a scan in verifying the identity of a customer picking up purchased merchandise; however, scanning alone, which is likely allowed, may be sufficient for such purposes. 

ID Scanning for Access Control in Nebraska

A business not likely allowed to store information obtained from a scan in verifying the identity of, for instance, a truck driver; however, scanning alone, which is likely allowed, may be sufficient for such purposes. 

ID Scanning for Hotel Check-In in Nebraska

 In Nebraska, the general prohibition is clear:  No compiling, storing, preserving, trading, selling, or sharing of ID information obtained from a scan.  The only exemption that a hotel would be able to rely on is the payment approval exemption.  Under this exemption, in order to approve a payment method other than cash, the hotel can scan and store ID information “as necessary to protect against or prevent actual or potential fraud, unauthorized transactions, claims, or other liability or to resolve a dispute or inquiry by the [guest].” 

This language appears to allow a hotel to scan and store ID information in connection with guest check-ins if a guest pays by check or credit card, because then it becomes necessary for the hotel “to protect against or prevent actual or potential fraud, unauthorized transactions, claims, or other liability or to resolve a dispute or inquiry by the [guest].”  Hotels likely have a policy of requiring credit cards from guests as security against, for instance, vandalism or room service charges, so the cash payment exception from this exemption is unlikely a concern to a hotel.

The focus here is on payment approval and identity verification (as opposed to guest registration), and as long as a guest pays with a method other than cash (so as to require verification of identity), a hotel likely can scan and store ID information.  One caveat is to not use information so obtained for any marketing or sales purpose as such use is prohibited by the statute.

Penalty:  Class IV felony.

Does Nebraska offer affirmative defense for ID scanning?

No.

Nebraska Revised Statute 60-4.111.01. Storage or compilation of information; retailer; seller; authorized acts; sign posted; use of stored information; approval of negotiable instrument or certain payments; authorized acts; violations; penalty.

(1) The Department of Motor Vehicles, the courts, or law enforcement agencies may store or compile information acquired from an operator’s license or a state identification card for their statutorily authorized purposes.

(2) Except as otherwise provided in subsection (3) or (4) of this section, no person having use of or access to machine-readable information encoded on an operator’s license or a state identification card shall compile, store, preserve, trade, sell, or share such information. Any person who trades, sells, or shares such information shall be guilty of a Class IV felony. Any person who compiles, stores, or preserves such information except as authorized in subsection (3) or (4) of this section shall be guilty of a Class IV felony.

(3)(a) For purposes of compliance with and enforcement of restrictions on the purchase of alcohol, lottery tickets, and tobacco products, a retailer who sells any of such items pursuant to a license issued or a contract under the applicable statutory provision may scan machine-readable information encoded on an operator’s license or a state identification card presented for the purpose of such a sale. The retailer may store only the following information obtained from the license or card: Age and license or card identification number. The retailer shall post a sign at the point of sale of any of such items stating that the license or card will be scanned and that the age and identification number will be stored. The stored information may only be used by a law enforcement agency for purposes of enforcement of the restrictions on the purchase of alcohol, lottery tickets, and tobacco products and may not be shared with any other person or entity.

(b) For purposes of compliance with the provisions of sections 28-458 to 28-462, a seller who sells methamphetamine precursors pursuant to such sections may scan machine-readable information encoded on an operator’s license or a state identification card presented for the purpose of such a sale. The seller may store only the following information obtained from the license or card: Name, age, address, type of identification presented by the customer, the governmental entity that issued the identification, and the number on the identification. The seller shall post a sign at the point of sale stating that the license or card will be scanned and stating what information will be stored. The stored information may only be used by law enforcement agencies, regulatory agencies, and the exchange for purposes of enforcement of the restrictions on the sale or purchase of methamphetamine precursors pursuant to sections 28-458 to 28-462 and may not be shared with any other person or entity. For purposes of this subsection, the terms exchange, methamphetamine precursor, and seller have the same meanings as in section 28-458.

(c) The retailer or seller shall utilize software that stores only the information allowed by this subsection. A programmer for computer software designed to store such information shall certify to the retailer that the software stores only the information allowed by this subsection. Intentional or grossly negligent programming by the programmer which allows for the storage of more than the age and identification number or wrongfully certifying the software shall be a Class IV felony.

(d) A retailer or seller who knowingly stores more information than authorized under this subsection from the operator’s license or state identification card shall be guilty of a Class IV felony.

(e) Information scanned, compiled, stored, or preserved pursuant to subdivision (a) of this subsection may not be retained longer than eighteen months unless required by state or federal law.

(4) In order to approve a negotiable instrument, an electronic funds transfer, or a similar method of payment, a person having use of or access to machine-readable information encoded on an operator’s license or a state identification card may:

(a) Scan, compile, store, or preserve such information in order to provide the information to a check services company subject to and in compliance with the federal Fair Credit Reporting Act, 15 U.S.C. 1681 et seq., as such act existed on January 1, 2022, for the purpose of effecting, administering, or enforcing a transaction requested by the holder of the license or card or preventing fraud or other criminal activity; or

(b) Scan and store such information only as necessary to protect against or prevent actual or potential fraud, unauthorized transactions, claims, or other liability or to resolve a dispute or inquiry by the holder of the license or card.

(5) Except as provided in subdivision (4)(a) of this section, information scanned, compiled, stored, or preserved pursuant to this section may not be traded or sold to or shared with a third party; used for any marketing or sales purpose by any person, including the retailer who obtained the information; or, unless pursuant to a court order, reported to or shared with any third party. A person who violates this subsection shall be guilty of a Class IV felony.

Nebraska Revised Statute 53-180.05. Prohibited acts relating to minors and incompetents; alcohol

(6) Any person who knowingly manufactures, creates, or alters any form of identification for the purpose of sale or delivery of such form of identification to a person under the age of twenty-one years shall be guilty of a Class I misdemeanor. For purposes of this subsection, form of identification means any card, paper, or legal document that may be used to establish the age of the person named thereon for the purpose of purchasing alcoholic liquor.

Nebraska Legislative Bill 954. Relating to the Biometric Autonomy Liberty Law

Rereferred to Banking, Commerce and Insurance Committee; Notice of hearing for 02/27/2024

Would adopt the Biometric Autonomy Liberty Law.

The public’s welfare, security, and safety will be served by regulating the collection, use, safeguarding, handling, storage, retention, and destruction of biometric, confidential, and sensitive data.

Confidential and sensitive data means personal data that can be used to uniquely identify an individual or an individual’s account or property, including any biometric data, genetic marker, genetic testing data, unique identifier number used to locate any account or property, account number, personal identification number, pass code, motor vehicle operator’s license number, state identification card number, or social security number;