Nebraska 2025 2025-2026 Regular Session

Nebraska Legislature Bill LB114 Introduced / Fiscal Note

Filed 01/31/2025

                    PREPARED BY: Shelly Glaser 
LB 114 DATE PREPARED: January 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  $7,433,750  $7,433,750 
CASH FUNDS ($224,000) $4,729 ,250 	($248,000) $4,729 ,250 
FEDERAL FUNDS     
OTHER FUNDS     
TOTAL FUNDS ($224,000) $12,163,000 ($248,000) $12,163,000 
 
Any Fiscal Notes received from state agencies and political subdivisions are attached f	ollowing the Legislative Fiscal Analyst 
Estimate. 
 
LB114 increases fees for driver 	records and services provided by the Nebraska Department of Motor Vehicles as follows: 
 
1. Driver record abstract fees would be increased from $7.50 to $24.00; with the increase in revenue being credited 
to the State General Fund and the Department of Motor Vehicles (DMV) Cash Fund. 
 
2. Driver record monitoring service fees per record would go from $.06 to $.30	; with $.24 credited to the DMV Cash 
Fund and the remaining $.06 split as follows:  41 2/3% to the DMV Cash Fund, 25% to the General Fund, and 33 
1/3 % to the Records Management Cash Fund. 
 
3. A certified abstract of an operating record will cost $3.0	0 as before, however the additional fee specified in (8) will 
increase from $4.00 to $21.00 per record; with $5	.50 of each fee being credited to the 	DMV Cash Fund, $11.50 
to the General Fund, and $4.00 to the Operator	’s License Services System Replacement and Maintenance Fund. 
 
4. An extract of a registered/titled vehic	le record would be increased from $1. 00 to $3.00; the entire amount will go 
to the License Plate Cash Fund. 
 
5. An extract of the DMV’s entire file of registered/titled vehicles in Nebraska would go from $18.00 to $40.00 per 
1,000 records; th is entire amount would still go to the DMV Cash Fund. 
 
6. Driver record header information fees would increase $18.00 to $30.00 for every 1,000 records; and shall be 
credited to the DMV Cash Fund. 
 
7. Individual vehicle record fees would increase from $1.00 to $3.00; with the increased $2.00 	to be credited to the 
License Plate Cash Fund 	(the original $1.00 will still be credited to the Records Management Cash Fund). 
 
8. Bulk vehicle record fees per 1,000 records would go from $18.00 to $40.00	; with the increase alone of $22.00 to 
be credit to the DMV Cash Fund 	(the original $18.00 will still be credited to the Records Management Cash 
Fund).  
 
This act would become operative on July 1, 2025.  This bill has an emergency clause.
 
Expenditures: 
 The Nebraska Secretary of State has indicated that due to a	n estimated 30% reduction in the number of records purchased (utilizing an 
estimate provided by the D	MV), would likely reduce their expendi	tures by $224,000 in FY2025-26 and $248,000 in FY2026-27.  
Additionally, the agency has noted the possibility that this reduction in records and subsequent reduced funding for the Nebraska State 
Records Board portal manager, Tyler 	Nebraska, may potentially impact the future cost and availability of portal services for the state. 
 
 
 
CONTINUED ON PAGE 2 
  LB 114 
PAGE 2 
 
Revenues: 
 
The Nebraska Department of Motor Vehicles (DMV) is estimating LB114 would increase total revenues by $12,163,000 in FY2025-26 
and $12,163,000 in 	FY2026-27 , with the distribution as follows:  
 
1. Changing the Driver Record Abstract ($7.50 	up to $24.00), with an estimated 665,000 	sold during each fiscal year, would 
increase revenues credited to the State General Fund and the D	MV Cash Fund. 
2. Increasing the Monitoring Service Fee ($	.06 per operating record to $.30	) would generate an estimated $2,100,000 cash 
funding each year of the biennium for the DMV Cash Fund. 
3. The Driver Record Header Information fees (increased from $18 per 1,000 records to $30), would increase r	evenues $19,000 
in cash funding credited to the DMV Cash Fund. 
4. Individual Vehicle Records fee increases (from $1.00 to $3.00) 	would generate and additional $1,000,000 in cash funding each 
year of the biennium.  Currently, the $1.00 fee equates to a $175,000 	credited to the DMV Cash Fund.  The new statute 
language would instead move all of the credit for these records to the DMV 	License Plate Cash Fund.  As both of these funds 
are for the DMV, the increase amount only is $1,000,000 in both years of the bien	nium. 
5. The fee per 1,000 Vehicle Records will be increased (from $18 to $40 per thousand), with the increase estimated to be 
$209,000 in cash fundin g each year of the biennium.  The increased amount only of this fee is to be credited to the DMV Cash 
Fund, with the original fee portion not being diverted from the Secretary of State. 
 
Revenue Changes from LB114 
 	FY2025-26 FY2026-27 
State General Fund 	$7,433,750 $7,433,750 
DMV Cash Fund 	$4,979,250 $4,979,250 
Secretary of State Records Management Cash Fund $(285,000) $(285,000) 
DMV DLS Modernization Fund 	$(1,140,000) $(1,140,000) 
DMV License Plate Cash Fund 	$1,175,000 $1,175,000 
 The Nebraska Secretary of State is estimating a loss of cash fund revenue 	in both fiscal years of the biennium. 
 
 
There is no basis to disa gree with these estimations of fiscal impact by the DMV and the Secretary of State. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE   
LB: 114            AM:                                       AGENCY/POLT. SUB: Secretary of State 
   
REVIEWED BY:  	Joe Massey                     DATE:  1/28/2025                                           	PHONE: (402) 471-4181 
   
COMMENTS: No basis to disagree with the Secretary of State assessment of fiscal impact from LB 114    
  
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE   
LB:  114                 AM:                              AGENCY/POLT. SUB: Department of Motor Vehicles 
   
REVIEWED BY:  	Joe Massey                     DATE: 1/15/2025                                          	PHONE: (402) 471-4181 
   
COMMENTS: Concur with the Department of Motor Vehicles assessment of revenue changes from LB 114    
  
  Please complete ALL (5) blanks in the first three lines. 2025 
LB
(1) 114 	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 
 
  7,433,750    7,433,750 
 
CASH FUNDS 
 
  4,729,250    4,729,250 
 
FEDERAL FUNDS 
 
    
 
OTHER FUNDS 
 
    
 
TOTAL FUNDS 
 
  12,163,000    12,163,000 
 
 
Explanation of Estimate: 
This legislation has four fee increases that will have a fiscal impact.  First, changing the Driver Record 
Abstract from $7.50 to $24.00, with the increase in revenue being credited to the State General Fund 
and the Department of Motor Vehicles (DMV) Cash Fund. The Department estimates that 665,000 
Driver Records will be sold during each fiscal year	. Second, the Monitoring Service Fee will be 
increased from $0.06 per operating record to $0.30 per record.  This $0.24 increase will all be 
credited to the DMV Cash Fund.  This increase will generate an estimated $2,100,000 per fiscal year. 
Third, Driver Record Header Information fees will be increased from $18 per 1,000 records to $30 per 
1,000 records.  This will generate an estimated $19,000 in revenue to the DMV Cash Fund per fiscal 
year.  The last fee increase will be for Vehicle Records.  There are 	two different fees associated with 
this increase.  First, the individual record search will increase from $1.00 to $3.00. This fee increase 
will generate an estimated $1,000,000 each fiscal year.  The new rate will all be credited to the DMV 
License Plate Cash Fund of $1,175,000.  Currently, the DMV Cash Fund is credited for the DMV 
portion of the $1 fee.  This will result in a loss of revenue to the DMV Cash Fund of $175,000 per 
fiscal year.  The fee for records requested over 1,000 will be increased from $18 per thousand, to $40 
per thousand.  The total amount of revenue generated from these increases will be estimated to be 
$209,000 annually.  The effective date of this legislation is July 1, 2025. The annual total fiscal 
impact is estimated to be $12,163,000. 
 
The net breakdown of for each funding source is as follows: 
 
State General Fund 	$7,433,750 
DMV Cash Fund  	$4,979,250 
Secretary of State  	$ (285,000) 
DLS Modernization Fund 	$(1,140,000) 
DMV License Plate Cash Fund  	$1,150,000 
 
 
 
 
 
 
 
 
   
 
____________ _________________________________________________________________________________________ 	_ 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) 114 	FISCAL NOTE 
 
State Agency OR Political Subdivision Name: 
(2) 
Secretary of State 
 
Prepared by: 
(3) Joan Arnold 	Date Prepared: 
(4)
 1-16-2025 Phone: 
(5)
 402-471-2384 
 
                                          ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION  
                                
 	FY 2025-26 	FY 2026-27 
 EXPENDITURES REVENUE EXPENDITURES REVENUE 
GENERAL FUNDS 
 
    
 
CASH FUNDS 
 
($224,000)   ($280,000)   ($248,000)   (310,000) 
 
FEDERAL FUNDS 
 
    
 
OTHER FUNDS 
 
    
 
TOTAL FUNDS 
 
($224,000)   ($280,000)   ($248,000)   (310,000) 
 
 Explanation of Estimate: 
 
LB114 proposes to significantly increase the Driver License Record fee from $7.50 per record to $24.00 per 
record.  The Secretary of State’s Records Management (RM) Cash Fund receives $1.00 per record of this fee. 
 LB114 does not propose to change the $1.00 sent to the RM Cash Fund; however, due to the significant 
increase in fees, the DMV does estimate a 30% reduction in records purchased. As a result of the reduced 
sales, we would expect to receive $280	,000 less in revenue in FY26 and $310,000 less in FY27.  In 
accordance with the State Records Board portal manager agreement, 80% of these fees are paid to Tyler 
Nebraska, so expenditures would also see a reduction of $224,000 in FY26 and $248,000 in FY27, for a net 
loss to the RM Cash Fund of $56,000 in FY26 and $62,000 in FY27 (and onward).  Amounts paid to Tyler 
Nebraska under the portal manager agreement fund operation of Nebraska.gov, the self	-funding portal which 
provides electronic access to public records, information, and services.  Tyler Nebraska supports over 1,200 
applications and service installations and 80 websites for state and local agencies. A reduction in funding for 
the portal may impact the availability of portal services and therefore, could have additional financial 
implications for other agencies. 
 
 
_____________________________________________________________________________________________________ 	_ 
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…………………………...……….   ($224,000)   ($248,000) 
Travel………………………………………..    
Capital outlay…………………...…………..    
Aid…………………………………………...    
Capital improvements……………………...    
      TOTAL……………………………….....   ($224,000)   ($248,000)