PREPARED BY: Shelly Glaser
LB 667 DATE PREPARED: February 06, 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.
LB667 amends Nebraska’s Motor Vehicle Industry Regulation Act §60-1438 as it relates to compensation franchisors are to pay
new motor vehicle dealers (franchisees) for diagnostic work and parts performed during warranty repairs as follows:
1. Compensation for work or service performed by qualified technicians during warranty repairs shall include a an
“adequate” amount of time allowance for the work, instead of a “reasonable” amount of time for diagnostic work;
2. Franchisors cannot unreasonably deny written requests from franchisees for modifications made to the uniform
time allowance for a specific warranty repair;
3. Franchisors cannot unreasona bly deny a request submitted by a franchisee for an additional time allowance for
diagnostic or repair work on a specific vehicle covered under warranty;
4. The request from the franchisee shall include information and documentation reasonably necessary to assess the
merits of the request;
5. The bill specifies that the prevailing wage rates for labor compensation shall not be based on maintenance services
compensation such as oil/filter changes, fluid changes, brakes, spark plugs, wiper blades, and tire replacement
work ;
6. If the franchisor denies a request, the franchisee may file a complaint with the Motor Vehicle Industry Licensing
Board (MVILB) and the manufacturer will have the burden of proof to show that the denial was made pursuant to
the Motor Vehicle Industry Regulation Act;
7. If the MVILB determines the denial was made in violation of the act, then the franchisor will be subject to
enforcement procedures ;
8. Compensation for parts should be based on the dealer ’s cost plus markup, while excluding maintenance services
such as oil/filter changes, fluid changes, brakes, spark plugs, wiper bl ades, and tire replacement work from the
calculation of average percentage markup;
9. When a franchisor provides parts at no cost for warranty work, they must compensate the dealer based on the
dealer’s cost plus markup, multiplied by the fair wholesale value of such part; and
10. For the purposes of determining the fair wholesale value of a warranty part, the bill spe cifies it to be the greatest
value of either:
a. the amount the dealer paid for the part;
b. the cost of the part at the time it was furnished in a price schedule of the franchisor; or
c. the cost of a substantially identical part at the time it was furnished in a price schedule of the franchisor .
The Nebraska Motor Vehicle Licensing Board (MVILB) has indicated there would be no fiscal impact to their board.
There is no basis to disagree with the MVILB’s assessment of no fiscal impact.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 667 AM: AGENCY/POLT. SUB: Motor Vehicle Industry Licensing Board
REVIEWED BY: Joe Massey DATE: 1/30/2025 PHONE: (402) 471-4181
COMMENTS: No basis to disagree with the Motor Vehicle Industry Licensing Board assessment of no fiscal impact
from LB 667.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 667 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Motor Vehicle Industry Licensing Board
Prepared by:
(3) Joshua Eickmeier Date Prepared:
(4)
1/27/25 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……………………………… .....