PREPARED BY: Shelly Glaser
LB 543 DATE PREPARED: January 30, 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 f ollowing the Legislative Fiscal Analyst Estimate.
LB543 updated the vehicl e registration and license plate issuance processes. This bill would allow the Department of Motor Vehicles
(DMV) to issue multi-year vehicle registrations of two and three years, in addition to the current one-year registration. Also, the DMV
could deliver the license plates and registrati on certificates via the mail or an alternate shipping method. In addition, this bill would
adjust the license plate issuance, replacement, and registration renewal fees. The effective date for this legislation is a date on or
before January 1, 2029.
LB543 has the potential to affect the timing of revenues received by the state, if registrants choose to register their vehicles for more
than one year at a time. Additionally, there would likely be programmatic and other administ rative expenditures associated with the
implementation of this bill. However, as this bill would not be effective until the 2029 plate issuance cycle, any adjustments to
expenditures and revenues would not fall under the FY2025- 27 biennium. Agencies w ould address LB543, in the next budget
submission cycle for the FY2027-29 biennium.
The DMV has indicated no fiscal impact during the FY2025-27 b iennium, as the effective date for this bill would occur after .
The Nebraska Department of Transportation (NDOT) has indicated the fiscal impact of LB543 is indeterminate at this time, however
there would likely be revenue fluctuations to the Highway Trust Fund and the Recr eation Road Fund. To account for the fluctuations in
revenue to the Highway Trust Fund, NDOT would consider this reven ue change during the gas tax rate setting process; with a possible
adjustment to the variable rate accordingly . Additionally, the change in revenue to the Highway Trust Fund would also affect the
Highway Allocation Fund, which is shared by cities and counties.
The Lancaster County Treasurer has indicated that there would be no fiscal impact during the FY2025-27 bienni um. However,
beginning with 2029, as the DMV would be allowed to process the online registrations rather than the county, they would anticipating a
significant loss of income to the county at that time.
There is no basis to disagree with these estimations by the DMV, NDOT, nor the Lancaster County Treas urer.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 543 AM: AGENCY/POLT. SUB: Department of Motor Vehicles
REVIEWED BY: Joe Massey DATE: 1/28/2025 PHONE: (402) 471-4181
COMMENTS: Concur with the Department of Motor Vehicles assessment of no fiscal impact from LB 543.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 543 AM: 373 AGENCY/POLT. SUB: Nebraska Department of Transportation
REVIEWED BY: Joe Massey DATE: 1/30/2025 PHONE: (402) 471-4181
COMMENTS: The Nebraska Department of Transportation assessment of indeterminate fiscal impact from LB 543 appears
reasonable, expenditure will also likely be impacted.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 543 AM: AGENCY/POLT. SUB: Lancaster County Treasurer
REVIEWED BY: Joe Massey DATE: 1/30/2025 PHONE: (402) 471-4181
COMMENTS: No basis to disagree with the Lancaster County Treasurer assessment of no current fiscal impact
from LB 543.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT . SUB. RESPONSE
LB: 543 AM: AGENCY/POLT. SUB: Lancaster County, Nebraska
REVIEWED BY: Joe Massey DATE: 1/30/2025 PHONE: (402) 471-4181
COMMENTS: No basis to disagree with the Lancaster County’s assessment of no fiscal impact from LB 543.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 543 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Department of Motor Vehicles
Prepared by:
(3) Bart Moore Date Prepared:
(4)
January 23, 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:
The effective date for this legislation is a date on or before January 1, 2029. Therefore, there will be no fiscal
impact during the fiscal periods above.
_____________________________________________________________________________________________________ _
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) 543 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County Treasurer
Prepared by:
(3) Rachel Garver Date Prepared:
(4)
Jan. 28, 2025 Phone:
(5)
402-441-7425
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:
For the next two fiscal years there is no financial impact to the county treasurer’s office. However, starting
January 1, 2029, LB 543 provides for the State Department of Motor Vehicles to start processing the online
registrations rather than the county. This will result in a significant loss of income to the county. For example, in
2024, one-third of all registration renewals were completed online. The Lancaster County Treasurer’s Office
took in $532,147.61 in registration fees, one-third of which is $175,608.71. The online registration option is
increasing in popularity and will likely be closer to 40– 50% of the total registration renewals for Lancaster
County. This would be a significant loss in revenue for the County starting in 2029.
_____________________________________________________________________________________________________ _
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) 543 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County, Nebraska
Prepared by:
(3) Dennis Meyer Date Prepared:
(4)
1/29/2025 Phone:
(5)
402-441-6869
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:
LB543 proposes changes to Nebraska’s vehicle registration and license plate issuance process, including:
• Allowing the DMV to deliver license plates and registration certificates via mail or alternative shipping methods.
• Introducing multi-year vehicle registration renewal options (one, two, or three years).
• Adjusting fees related to license plate issuance, replacement, and registration renewal.
LB543 updates the registration process without imposing additional costs on Lancaster County. There is no fiscal impact
for Lancaster County.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJO R 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) 543 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Transportation
Prepared by:
(3) Jenessa Boynton Date Prepared:
(4)
1/28/25 Phone:
(5)
402-479-4691
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
See below See below
FEDERAL FUNDS
OTHER FUNDS
See below See below
TOTAL FUNDS
See below See below
Explanation of Estimate:
LB543 would allow a person to opt to register for an annual period or a m ultiyear period of two or three years beginning on
an implementation date designated by the director on or before January 1, 2029 . At the time of registration all fees
provided in sections 60- 3,141 and 60- 3,156 would be paid. In addition, beginning with the 2029 license plate issuance
cycle, all fees collected under Neb. Rev. Stat. § 60-3,102 will be credited to the License Plate Cash Fund instead of to the
Highway Trust Fund.
The fiscal impact of a multiyear registration is indeterminate due to the unknown implementation date to be designated by
the Director of the Department of Motor Vehicles (DMV) and the unknown number of persons who may seek a multi year
registration. If enacted, revenue fluctuations to the Highway Trust Fund and Recreation Road Fund may occur from year
to year due to the multiyear registration. To account for the fluctuations in revenue to the Highway Trust Fund the
Nebraska Department of Transportation (NDOT) would consider the change in revenue to the Highway Trust fund during
the motor fuels tax setting and adjust the variable rate accordingly to generate revenue based on the Highway Cash Fund
appropriation set by the Legislature. The change in revenue to the Highway Trust Fund also affects the Highway
Allocation Fund, which is shared by cities and counties. For the Recreation Road Fund, letting of projects could be
impacted due to possible fluctuation in revenue to cover expenditures.
It is assumed for purposes of this fiscal note the DMV will have fully implemented print on demand license plates and
decals prior to the 2029 license plate issuance cycle r esulting in no transfer of funds from the Highway Trust Fund to
cover the license plate and decal production. As a result, shifting the credit of t he license plate fees collected to the
License Plate Cash Fund is determined to have minimal impact to NDOT, cities, and counties which share the Highway
Trust Fund revenues .
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJE CTS 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……………………………… .....