PREPARED BY: Shelly Glaser
LB 111 DATE PREPARED: February 28, 2025
PHONE: 402-471-0052
Revision: 00
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 following the Legislative Fiscal Analyst Estimate.
LB111 establishes new directives for both insurance companies and their authorized representatives , when dealing with motor vehicle
consumer care claim. The bill provides definitions for “consumer”, “consumer care”, “insurer”, “nonoriginal equipment manufacturer”
and “part” as they relate to motor vehicle repairs. This bill directs the following:
1. Insurers are prohibited from directly or indirectly requiring the use of non-original equipment manufacturer (non-OEM) parts
which lack proper manufacturer identification;
2. Insurers shall not directly or indirectly compel that a non-OEM part be used, unless such part is at least equal in quality to the
corresponding original equipment manufacturer (OEM) part in terms of fit and performance;
3. The accepting of estimates or authoriz ing of a repair using non-OEM parts shall not be made by an insurer until the consumer
is advised that they are not required to accept any non-OEM part in the repair , and a written consumer consent to the use of a
non-OEM part is obtained before the repair;
4. If consumers choose to use an OEM part over a non-OEM part, they shall not be required by an insurer to pay a price
difference;
5. Preceding any repair being made with a non-OEM part, the insurer must provide
a notice to the consumer in a 10-point font or
larger, that a non-OEM part is to be installed on their motor vehicle;
6. Any non-OEM part must be clearly identified in the estimate;
7. In cases where a motor vehicle is less than 36 months old (from the date of manufacture) when damaged, insurers may not
require the use of aftermarket parts in consumer care of the motor vehicle; and
8. When the motor vehicle is over 36 months old (from the manufacture date) at the time of damage, insurers are allowed to
include aftermarket replacement parts (if equal in terms of fit, quality, performance, and warranty to OEM parts) in their
estimates . This must be conspicuously disclosed in their written policy in a capitalized 10-point font and with no other policy
language on that page .
Additionally, LB111 establishes that if any insurer violates this act, such violation would be considered a Class I misdemeanor.
The Nebraska Department of Motor Vehicles, the Nebraska Motor Vehicle Licensing Board, and the Nebraska D epartment of Insurance
have all indicated no fiscal impact.
There is no basis to disagree.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 111 AM: AGENCY/POLT. SUB: Department of Insurance
REVIEWED BY: Ryan Walton DATE: 1/16/2025 PHONE: (402) 471-4174
COMMENTS: The Department of Insurance’s assessment of no fiscal impact from LB 111, appears reasonable.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 111 AM: AGENCY/POLT. SUB: Department of Motor Vehicles
REVIEWED BY: Ryan Walton DATE: 1/14/2025 PHONE: (402) 471-4174
COMMENTS: The Department of Motor Vehicle’s assessment of no fiscal impact from LB 111, appears reasonable.
ADMINISTRATIVE SERVICES STATE B UDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 111 AM: AGENCY/POLT. SUB: Motor Vehicle Licensing Board
REVIEWED BY: Ryan Walton DATE: 1/21/2025 PHONE: (402) 471-4174
COMMENTS: The Motor Vehicle Licensing Board’s assessment of no fiscal impact from LB 111, appears reasonable.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 111 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Department of Insurance
Prepared by:
(3) Jordan Blades Date Prepared:
(4)
1/15/24 Phone:
(5)
402-471-4638
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:
The Department does not anticipate any fiscal impact at this time.
_____________________________________________________________________________________________________ _
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……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 111 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Motor Vehicle Industry Licensing Board
Prepared by:
(3) Joshua Eickmeier Date Prepared:
(4)
1/17/25 Phone:
(5)
402-471-2148
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:
No Fiscal Impact.
_____________________________________________________________________________________________________ _
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……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 111 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Department of Motor Vehicles
Prepared by:
(3) Bart Moore Date Prepared:
(4)
January 13, 2025 Phone:
(5)
402-471-3902
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:
No Fiscal Impact
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR O BJECTS 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……………………………… .....