LB 972 — Adopt the Recreational Vehicle Industry Regulation Act and change provisions relating to parking spaces for handicapped or disabled persons, certain license revocations, the Motor Vehicle Industry Regulation Act, the Motor Vehicle Operator’s License Act, the Motor Vehicle Registration Act, the Motor Vehicle Safety Responsibility Act, the Nebraska Rules of the Road, and the State Boat Act

and (b) Recreational vehicle includes motor homes, travel trailers, fifth-wheelfifth- wheel travel trailers, truck campers, and folding camping trailers;

-3- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (21) Transient customer means a customer who is temporarily traveling through a dealer's area of sales responsibility;

(a) Regulate the issuance and revocation of licenses in accordance with and subject to the Motor Vehicle Industry Regulation Act and the Recreational Vehicle Industry Regulation Act;

(d) Enforce rules and regulations that were adopted and promulgated -4- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 by the board;

-2- LB972 LB972 2026 (2) The seal of the board shall be used to authenticate the acts of the board.

(1) LicensesA issuedmanufacturer byor thedistributor boardshall undernot thesell Recreationala Vehiclenew Industryrecreational Regulationvehicle Actin shallthis bestate ofto theor classesthrough seta outdealer inwithout thishaving sectionfirst andentered shallinto permita themanufacturer-dealer businessagreement activitieswith describedsuch indealer. this section:

(a) Recreational vehicle dealer license.

This license permits:

(i) The selling or exchanging of new recreational vehicles at:

(A) Any established place of business designated in the license;

(B) Another place or places of business located within three hundred feet of such designated place of business;

and (C) Any place within the county described in the license;

and (ii) Either the individual owner of the business or one stockholder in, member in, partner in, or officer of the business, to act as a recreational vehicle salesperson and the name of the one authorized person shall appear on the license;

(b) Manufacturer license.

This license:

-5- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (i) Permits the licensee to engage in the activities of a manufacturer;

and (ii) Prohibits the licensee from directly or indirectly owning an interest in, operating, controlling, or acting in the capacity of any:

(A) Franchised dealer or franchised dealership for the same line- make of recreational vehicle that is manufactured by the licensee;

or (B) Nonfranchised dealer or dealership;

and (c) Distributor license.

This license:

(i) Permits the licensee to engage in the activities of a distributor;

and (ii) Prohibits the licensee from directly or indirectly owning an interest in, operating, controlling, or acting in the capacity of any:

(A) Franchised dealer or franchised dealership for the same line- make of recreational vehicle that is distributed by the licensee;

or (B) Nonfranchised dealer or dealership.

(2) For purposes of this section, a dealer or dealership is controlled by a manufacturer or distributor if such manufacturer or distributor is directly or indirectly authorized, by law or by an agreement of the parties, to direct or influence the management or policies of the dealer or dealership.

Sec.

7.

Any person may apply for one or more of the classes of licenses described in section 6 of this act.

Such application shall be prescribed by the board and contain the following information:

(1)(a) If the applicant is an individual, the name and address of the applicant, the applicant's social security number, and the name under which the applicant intends to conduct business;

(b) If the applicant is a partnership or limited liability company, the name and address of each partner or member, the social security number of each partner or member, and the name under which the applicant intends to conduct business;

or (c) If the applicant is not an individual, a partnership, or a -6- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 limited liability company, the applicant's name, the name and address of each of the applicant's principal officers, and the name under which the applicant intends to conduct business;

(2)(a) The address of each place where the applicant intends to conduct business, (b) a statement whether the applicant owns or leases each such place, (c) for each such place that is leased, a true and correct copy of the lease agreement, and (d) a description of the facilities for the display of recreational vehicles;

(3) If the application is for a recreational vehicle dealer license, the name and address of the individual who is to act as the salesperson under such license if issued;

(4) If the application is for a manufacturer license or a distributor license, a statement regarding the manufacturer's or distributor's compliance with the Recreational Vehicle Industry Regulation Act;

and (5) A statement that the applicant will comply with and be subject to the Recreational Vehicle Industry Regulation Act, the rules and regulations adopted and promulgated by the board, and any amendments to such act and such rules and regulations.

Sec.

8.

(1) Only a dealer may sell a new recreational vehicle in this state to a bona fide consumer.

(2) A manufacturer or distributor shall not sell a new recreational vehicle in this state to or through a dealer without having first entered into a manufacturer-dealer agreement with such dealer.

(3)(2) AThis motorsection vehicleapplies dealer,beginning motorcycleon dealer,January or1, trailer2028. dealer shall not sell a new recreational vehicle in this state without becoming licensed as a dealer under the Recreational Vehicle Industry Regulation Act.

(4) This section applies beginning on January 1, 2027.

9.7.

-7- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (a) A designation of the area of sales responsibility assigned to the dealer;

(b) The timeframe for inspection and refusal to take delivery of a recreational vehicle by the dealer pursuant to section 3129 of this act.

10.8.

-8- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Sec.

11.9.

12.10.

(g) The dealer's performance under the terms of the manufacturer-manufacturer-dealer dealer agreement;

(i) The abandonment or closing of the business operations of the -9- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 dealer for ten consecutive business days unless the closing is due to an act of God, strike, labor difficulty, or other cause over which the dealer has no control;

and -3- LB972 LB972 2026 (k) A suspension, revocation, or nonrenewal of the dealer's recreational vehicle dealer license under the RecreationalMotor Vehicle Industry Regulation Act.Act to sell recreational vehicles.

13.11.

or (ii) Thirty days prior to the intended termination action if the reasons showing that good cause exists for initiating a termination action include any reason under subdivisions (2)(h) though (k) of section 1210 of this act.

(2)(a) For a dealer that provides the notice described in -10- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 subdivision (1)(c)(iii)(1) (c)(iii) of this section, such dealer has ninety days after such notice was received by the manufacturer or distributor to cure each reason stated for the proposed termination action.

14.12.

-11- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (c) A significant misrepresentation by the manufacturer or distributor that materially affects the business relationship between the dealer and the manufacturer or distributor;

15.13.

 (1)(1) This section applies to any termination action that is initiated when a manufacturer terminates without good cause or a dealer terminates with good cause and the termination action is:

(a) Initiated by a manufacturer or distributor and is not in accordance with section 1311 of this act;

(b) Initiated pursuant to subsection (3) of section 1311 of this act;

or (c) Initiated pursuant to section 1412 of this act.

(a) All new, untitled recreational vehicles that were acquired by the dealer from the manufacturer or distributor within the eighteen-month -12- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 period prior to the date of the termination action.

Such recreational vehicles shall be purchased at one -4- LB972 LB972 2026 hundred percent of the original net invoice cost, including transportation and less applicable rebates and discounts provided to the dealer.

(b) All undamaged accessories and proprietary parts sold to the dealer by the manufacturer or distributor for resale within the twelve-twelve-month month period prior to the date of the termination action.

After payment in full and upon the request of the manufacturer or distributor, such recreational vehicle shall be immediately surrendered -13- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 to the manufacturer or distributor.

16.14.

17.15.

(1) Prior to entering a new manufacturer-dealer agreement to sell the same line-make, a dealer shall provide written notice to each manufacturer and distributor with which the dealer has a manufacturer-manufacturer-dealer dealer agreement.

(a) Be provided to the headquarters of the manufacturer or distributor at least thirty days prior to entering the new manufacturer-manufacturer-dealer dealer agreement;

(b) Specify that the dealer will be entering a new manufacturer-manufacturer-dealer dealer agreement;

(c) Specify the line-make that is the subject of the new manufacturer-dealermanufacturer- dealer agreement;

18.16.

19.17.

(1) A dealer shall provide written notice to each manufacturer and distributor with which the manufacturer is currently under a manufacturer-dealermanufacturer- dealer agreement that such dealer intends to change ownership by any manner, including the sale of assets of the dealer and a stock transfer.

Such written notice shall be provided at least ten -14- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 business days before the change of ownership to the headquarters of each such manufacturer and distributor.

20.18.

(b) The dealer failed to provide any requested supporting documentation under section 1917 of this act;

(iii) Lacks any license necessary to own and operate the dealership under the RecreationalMotor Vehicle Industry Regulation Act;

or (v) Within the ten years prior to the date of receipt of the written notice provided under section 1917 of this act, has undergone bankruptcy, insolvency, a general assignment for the benefit of creditors, or the -5- LB972 LB972 2026 appointment of a receiver, trustee, or conservator to take possession of the transferee's business or property;

or -15- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (d) If the prospective transferee is a family member of the dealer, such family member intends to do any of the following without the consent of the manufacturer or distributor:

(2) If the manufacturer or distributor objects to a change of ownership, the manufacturer or distributor shall provide written notice of its reasons for the objection to the dealer within seven business days after receipt of the written notification provided by the dealer under section 1917 of this act.

21.19.

(2) Compensate a dealer for consumer care that is (i)(a) performed by such dealer and (ii)(b) covered by a warranty issued by the warrantor;

22.20.

 (1)(1) A schedule of compensation that is created or modified by a warrantor shall include the:

Such compensation shall not be -16- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 less than the lowest retail labor rate actually charged by the dealer in the ordinary course of business for like nonwarranty consumer care;

23.21.

24.22.

If such parts are in excess of a dealer's requirements, the dealer may return the unused -17- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 parts to the warrantor for credit after completion of the factory campaign.

25.23.

26.24.

 (1)(1) A warrantor may conduct a warranty audit of any dealer that requests warranty compensation from the warrantor.

27.25.

-6- LB972 LB972 2026 Sec.

28.26.

(2) Fail to include, in any written notice of a factory campaign -18- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 that is provided to any recreational vehicle owner or dealer, the expected date when necessary parts and equipment, including tires, chassis, and chassis parts, will be available to dealers to perform factory campaign work;

29.27.

-19- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (4) Claim an agency relationship with a warrantor or a manufacturer;

30.28.

(1)(a) (1)(a) Except as provided in subdivision (d) of this subsection, a warrantor shall not fail to indemnify, defend, and hold harmless a dealer that performed warranty service on behalf of such warrantor against any loss or damage to the extent such loss or damage was caused by the negligence or willful misconduct of such warrantor.

-20- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (c) Subdivision (a) of this subsection does not apply for a legal proceeding if a warrantor does not comply with subdivision (b) of this subsection.

31.29.

(1) (1) If a new recreational vehicle is damaged prior to transit to a dealer or is damaged in transit to a dealer and the carrier or means of transportation was selected by the manufacturer or distributor, the dealer shall notify the manufacturer or distributor of the damage within the timeframe specified in the manufacturer-dealer agreement and:

(3) A dealer that takes custody of a recreational vehicle described in subsection (1) of this section shall exercise due care with such recreational vehicle, but such dealer shall have no other obligations, financial or -7- LB972 LB972 2026 otherwise, with respect to such recreational vehicle.

(i) For recreational vehicles delivered from a manufacturer, one hundred miles plus the shortest distance over paved roads beginning at -21- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 the location where the recreational vehicle was manufactured and ending at the dealership location;

32.30.

-22- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Sec.

33.31.

(1)(a) (1)(a) A dealer, manufacturer, distributor, or warrantor that is injured by a violation of the Recreational Vehicle Industry Regulation Act may bring a civil action to recover actual damages.

or (ii) If there is no manufacturer-dealer agreement between the parties or if the address described in subdivision (b)(i) of this subsection does not exist or is no longer valid, the address specified by the offending party in such party's license application under the RecreationalMotor Vehicle Industry Regulation Act.

The meeting place shall be in this -23- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 state in a location selected by the mediator.

34.32.

(1)(a) A dealer, manufacturer, distributor, or warrantor may -8- LB972 LB972 2026 bring a civil action in district court to seek injunctive relief relating to a violation or a potential violation of the Recreational Vehicle Industry Regulation Act or a manufacturer-dealer agreement.

(2) After a hearing and if cause has been shown, the court may issue -24- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 a temporary or permanent injunction, or both, that restrains any person from violating the Recreational Vehicle Industry Regulation Act or a manufacturer-dealermanufacturer- dealer agreement.

35.33.

(1) The board may suspend or revoke the license of any licensee under the RecreationalMotor Vehicle Industry Regulation Act upon a finding that any such licensee has violated the RecreationalMotor Vehicle Industry Regulation Act.

Such civil penalty shall not exceed onefive thousand dollars for each violation of the Recreational Vehicle Industry Regulation Act.

36.34.

18-1736 (1) A city or village may designate parking spaces, including access aisles, for the exclusive use of (a) handicapped or disabled persons whose motor vehicles display the distinguishing license plates issued to handicapped or disabled persons pursuant to the Motor Vehicle Registration Act section 60-3,113, (b) handicapped or disabled persons whose motor vehicles display a distinguishing license plate issued to a handicapped or disabled person by another state, (c) such other handicapped or disabled persons or temporarily handicapped or -25- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 disabled persons whose motor vehicles display a handicapped or disabled parking permit, and (d) such other motor vehicles which display a handicapped or disabled parking permit.

37.35.

-26- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (c) If the proximate cause of the death of another is the operation of a motor vehicle in violation of section 60-6,196 or 60-6,197.06, motor vehicle homicide is a Class II felony if the defendant has a prior conviction for a violation of section 60-6,196 or 60-6,197.06, under a city or village ordinance enacted in conformance with section 60-6,196, or under a law of another state if, at the time of the conviction under the law of such other state, the offense for which the defendant was convicted would have been a violation of section 60-6,196.

(4)(a) For a conviction under subsection (2) or subdivision (3)(a) of this section, the court may, as part of the judgment of conviction, order the person not to drive any motor vehicle for any purpose for a period of up to two years -9- LB972 LB972 2026 and order that the operator's license of such person be revoked suspended for the same period.

38.36.

37-1278.01 (1)37-1278.01 (1) The Department of Motor Vehicles shall issue a bonded certificate of title to an applicant who:

(a) Presents evidence reasonably sufficient to satisfy the department of the applicant's ownership of the motorboat or security -27- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 interest in the motorboat;

If the currently valid certificate of -28- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 title is surrendered to the department, the department may release the bond prior to the end of the three-year period.

39.37.

60-301 Sections 60-301 to 60-3,236 and section 4139 of this act shall be known and may be cited as the Motor Vehicle Registration Act.

-29- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Sec.

40.

Section 60-302, Revised Statutes Supplement, 2025, is amended to read:

60-302 For purposes of the Motor Vehicle Registration Act, unless the context otherwise requires, the definitions found in sections 60-302.01 to 60-360 and section 41 of this act shall be used.

41.38.

Section 60-302, Revised Statutes Supplement, 2025, is amended to read:

60-302 For purposes of the Motor Vehicle Registration Act, unless the context otherwise requires, the definitions found in sections 60-302.01 to 60-360 and section 39 of this act shall be used.

-10- LB972 LB972 2026 Sec.

39.

42.40.

Such determination may be made -30- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 based on any of the following factors:

(b) The Nebraska resident is required to register the motor vehicle or trailer in this state and is liable for all motor vehicle taxes, motor vehicle fees, and registration fees that are required under the Motor -31- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Vehicle Registration Act;

(7) If the Department of Revenue makes the determinations under subsections (2) and (3) of this section, the Nebraska resident who is presumed to be the owner of the motor vehicle or trailer may appeal the determination made by the Department of Revenue, and such appeal shall be in accordance with -11- LB972 LB972 2026 section 77-2709.

-32- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (8) If the Nebraska resident who is presumed to be the owner of the motor vehicle or trailer does not pay the motor vehicle taxes, motor vehicle fees, registration fees, or sales or use tax required to be paid under this section, such resident shall be assessed a late fee of fifty percent of the unpaid taxes and fees.

43.41.

60-37660-376 (1) (1) Subject to all the provisions of law relating to motor vehicles and trailers not inconsistent with this section, any motor vehicle dealer or trailer dealer who is regularly engaged within this state in the business of buying and selling motor vehicles and trailers, who regularly maintains within this state an established place of business, and who desires to effect delivery of any motor vehicle or trailer bought or sold by such dealer him or her from the point where purchased or sold to points within or outside this state may, solely for the purpose of such delivery by such dealer himself or herself, such dealer's his or her agent, or a bona fide purchaser, operate such motor vehicle or tow such trailer on the highways of this state without charge or registration of such motor vehicle or trailer.

and -33- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (ii) On the rear of the motor vehicle or on the rear window of the motor vehicle;

(b) When any person, firm, or corporation has had a motor vehicle or trailer previously registered and license plates assigned to such person, firm, or corporation, such owner may operate the motor vehicle may be operated or tow such trailer may be towed for a period of thirty days in order to effect the transfer of license plates to the new or used motor -34- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 vehicle or trailer.

44.42.

(3) The applicant for a transporter license plate shall keep for three years a record of each motor vehicle or trailer transported by the applicant -12- LB972 LB972 2026 him or her under this section.

(b) Shall , shall bear thereon a mark to distinguish them as -35- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 transporter license plates;

45.43.

390.5 through 390.21, as such regulations existed on the date specified in -36- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 section 60-201, and the weight of the motor vehicle or trailer required by the Motor Vehicle Registration Act;

or -37- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (D) A completed and notarized untitled trailer affidavit that affirms ownership.

(2) In addition to the information required under subsection (1) of this section, the application for registration shall contain (a)(i) the full legal name as defined in section 60-468.01 of each owner or (ii) the name of each owner as such name appears on the owner's motor vehicle operator's license or state identification card and -13- LB972 LB972 2026 (b)(i) the motor vehicle operator's license number or state identification card number of each owner, if applicable, and one or more of the identification elements as listed in section 60-484 of each owner, if applicable, and (ii) if any owner is a business entity, a nonprofit organization, an estate, a trust, or a church-controlled organization, its tax identification number.

46.44.

60-3,100 (1) The department shall issue to every person whose motor -38- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 vehicle or trailer is registered one or two fully reflectorized license plates upon which shall be displayed (a) the registration number consisting of letters and numerals assigned to such motor vehicle or trailer in figures not less than two and one-half inches nor more than three inches in height and (b) also the word Nebraska suitably lettered so as to be attractive.

Autocycle, motorcycle, minitruck, low-speedlow- speed vehicle, and trailer license plate letters and numerals may be one-half the size of those required in this section.

-39- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (ii) The department shall design, procure, and furnish to the county treasurers a license decal which shall be displayed as evidence that a license plate has been obtained under this subdivision.

-40- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (b) If delivery of any license plate or registration certificate is made by the department to the applicant, the department may charge a postage and handling fee in an amount not more than necessary to recover the cost of postage and handling for the specific items mailed to the applicant.

47.45.

60-3,10460-3,104 The The department shall issue the following types of license plates:

-14- LB972 LB972 2026 (3) Apportionable vehicle license plates issued pursuant to section 60-3,203;

-41- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (12) Former military vehicle license plates issued pursuant to section 60-3,236;

-42- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (28) Personal-use dealer license plates issued pursuant to section 60-3,116;

(42) Trucks or combinations of trucks, truck-tractors, or trailers that are not for hire and engaged in soil and water conservation work and used for the purpose of transporting pipe and equipment exclusively used -43- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 by such contractors for soil and water conservation construction license plates issued pursuant to section 60-3,149;

48.46.

, -15- LB972 LB972 2026 (iv) United States Navy Reserve;

(3) The design for each of the armed forces specified in subsection (2) of this section shall reflect the There shall be thirteen such -44- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 designs, one for each of such armed forces reflecting its official emblem, official seal, or other official image of such armed forces.

and -45- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (ii) The handicap or disability of the handicapped or disabled person shall be certified as permanent.

49.47.

-46- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (b) The department shall make forms available for such applications through the county treasurers.

-16- LB972 LB972 2026 (i) Active duty or reserve duty armed forces personnel serving in any of the armed forces listed in subsection (2) of section 60-3,122.03 or a veteran of any of such armed forces who was discharged or otherwise separated with a characterization of honorable or general (under honorable conditions);

(v) For the license plate described in subdivision (5)(b) of section 60-3,122.03, a person who is serving or has served in the armed forces of -47- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 the United States and is permanently handicapped or disabled;

-48- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (i) Subdivision (2)(a) or subsection (4) or (5) of section 60-3,122.03 is the Nebraska Veteran Cemetery System Operation Fund;

The department may adopt and promulgate rules and regulations regarding the design and issuance of -49- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 temporary license stickers.

(4) The owner of a motor vehicle or trailer bearing Military Honor Plates may apply to the county treasurer to have such plates transferred to a motor -17- LB972 LB972 2026 vehicle or trailer other than the motor vehicle or trailer for which such plates were originally purchased if such motor vehicle or trailer is owned by the owner of the plates.

50.48.

60-3,135.01 (1)(a) (1) The department shall either modify an -50- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 existing plate design or design license plates to identify special interest motor vehicles, to be known as special interest motor vehicle license plates.

-51- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (6)(a) In addition to all other fees required to register a motor vehicle, each application for initial issuance or renewal of a special interest motor vehicle license plate shall be accompanied by a special interest motor vehicle license plate fee of fifty dollars.

(8) If the cost of manufacturing special interest motor vehicle license -18- LB972 LB972 2026 plates at any time exceeds the amount charged for license plates pursuant to section 60-3,102, any money to be credited to the Department -52- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 of Motor Vehicles Cash Fund under this section shall instead be credited first to the Highway Trust Fund in an amount equal to the difference between the manufacturing costs of special interest motor vehicle license plates and the amount charged pursuant to section 60-3,102 with respect to such license plates and the remainder shall be credited to the Department of Motor Vehicles Cash Fund.

51.49.

The department shall design such license plates in consultation with the Nebraska Statewide Arboretum and a nonprofit organization holding a certificate of exemption under section -53- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 501(c)(3) of the Internal Revenue Code with a mission to inspire people to plant, nurture, and celebrate trees.

(2) BreastBack Cancerthe AwarenessBlue License Plates.

The department shall design such license plates in consultation with associations that represent personnel of any law enforcement agency in Nebraska.

The design of such license plates shall represent support for law enforcement personnel.

The designated recipient for alternate license plate fees for Back the Blue License Plates is the Back the Blue Cash Fund.

A person may apply for Back the Blue License Plates beginning on January 1, 2027;

(3) Blackout License Plates.

The department shall design such license plates so that (a) a solid black background covers the entire front of the license plates and (b) the license plate designations use white characters.

Each application for initial issuance or renewal or alphanumeric or personalized message Blackout License Plates shall be accompanied by a fee of one hundred dollars.

The designated recipient for alternate license plate fees for Blackout License Plates is the Developmental Disabilities Provider Capital and Equipment Maintenance Cash Fund.

Fees collected pursuant to this subdivision shall be remitted to the State Treasurer.

The State Treasurer shall credit thirty percent of such fees to the designated recipient for alternate license plate fees and seventy percent of such fees to the Department of Motor Vehicles Cash Fund.

A person may apply for Blackout License Plates beginning on January 1, 2027;

(4) (2) Breast Cancer Awareness Plates.

(3)(5) Choice Color Plates.

The department shall design threetwo of such license plates so that (a) a single solid-color background covers the entire front of the license plates and (b) the license plate designations use white characters.

The options for single solid-color backgrounds shall be black,green green, and blue.

AllFees fees collected pursuant to this subdivision shall be remitted to the State TreasurerTreasurer. for credit to the Department of Motor Vehicles Cash Fund.

The State Treasurer shall credit one hundred percent of such fees to the designated recipient for alternate license plate fees.

(4)(6) (3) Choose Life License Plates.

The designated recipient for alternate license plate fees for Choose Life License Plates is the Health and Human Services Cash Fund to supplement federal funds available to the Department of Health and Human -54- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Services for the Temporary Assistance for Needy Families program, 42 U.S.C.

(5)(7) (4) Czech Heritage Plates.

The designated recipient for alternate license -19- LB972 LB972 2026 plate fees for Czech Heritage Plates is the Department of Motor Vehicles Cash Fund;

(6)(8) (5) Donate Life Plates.

(7)(9) (6) Down Syndrome Awareness Plates.

The department shall design such license plates to include the words "Down syndrome awareness" inside a heart-shapedheart- shaped yellow and blue ribbon.

(8)(10) Honoring Women Veterans.

(9)(11) (7) Josh the Otter-Be Safe Around Water Plates.

The designated recipient for alternate license plate fees for Josh the Otter-Be Safe Around Water Plates is the -55- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Josh the Otter-Be Safe Around Water Cash Fund;

(10)(12) (8) Mountain Lion Conservation Plates.

(11)(13) (9) Native American Cultural Awareness and History Plates.

(12)(a)(14)(a) (10)(a) Nebraska Cornhusker Spirit Plates.

The characters used -56- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 shall consist only of letters, numerals, or a combination of letters and numerals of the same size and design specified in section 60-3,100.

(13)(15) (11) Nebraska History Plates.

(14)(16) (12) Pets for Vets Plates.

(15)(17) (13) Prostate Cancer Awareness Plates.

(16)(18) (14) Sammy's Superheroes license plates for childhood cancer awareness.

The department shall design such license plates to include a blue -20- LB972 LB972 2026 handprint over a yellow ribbon and the words "childhood cancer awareness".

The designated recipient for alternate license plate fees for -57- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Sammy's Superheroes license plates for childhood cancer awareness is the University of Nebraska Medical Center for pediatric cancer research;

(17)(19) Scarlet and Cream License Plates.

(18)(20) (15) Support the Arts Plates.

(19)(a)(21)(a) (16)(a) Support Our Troops Plates.

-58- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (ii) Each application for initial issuance or renewal of personalized message Support Our Troops Plates shall be accompanied by a fee of seventy dollars.

(20)(22) (17) The Good Life Is Outside Plates.

and (21)(23) University of Nebraska State Museum License Plates.

and (22)(24) (18) Wildlife Conservation Plates.

-59- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Sec.

52.50.

60-3,164 (1)60-3,164 (1) Any person who operates or parks a motor vehicle or who tows or parks a trailer on any highway, which motor vehicle or trailer has not been registered as required by section 60-362, shall be subject to the penalty provided in sections 60-362 and section 60-3,170.

53.51.

An owner of a motor vehicle or trailer who operates or tows the motor vehicle -21- LB972 LB972 2026 or trailer or allows the operation or towing of the motor vehicle or trailer in violation of this section shall be guilty of a Class II misdemeanor and shall be advised by the court that his or her motor vehicle operator's license, motor vehicle certificate of registration, -60- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 and license plates will be suspended by the department until he or she complies with sections 60-505.02 and 60-528.

54.52.

60-3,221 (1) Except as otherwise provided in the Motor Vehicle -61- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Registration Act:

-62- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (iii) Farm truck;

or -22- LB972 LB972 2026 (iv) Local truck;

-63- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (ii) A properly registered passenger car;

(3) Nothing in this section shall be construed to prohibit any motor vehicle or trailer from displaying dealer license plates or an In Transit -64- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 stickers authorized by section 60-376.

55.53.

60-462 Sections 60-462 to 60-4,189 and sections 5755 and 5957 to 6159 of this act shall be known and may be cited as the Motor Vehicle Operator's License Act.

56.54.

60-479 Sections 60-479.01 to 60-4,111.01, 60-4,113, 60-4,114, 60-4,115 to 60-4,118 , and 60-4,182 to 60-4,189 and section 5755 of this act shall apply to any operator's license subject to the Motor Vehicle Operator's License Act.

57.55.

58.56.

60-4,11460-4,114 (1) (1) The county treasurer may employ such additional clerical help as may be necessary to assist him or her in the performance of the ministerial duties required of him or her under the Motor Vehicle Operator's License Act and, for such additional expense, shall be -65- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 reimbursed as set out in section 60-4,115.

(3) Except as otherwise provided in section 60-4,122, the application -23- LB972 LB972 2026 process, in addition to the other requisites of the act, shall include the following:

It shall be the -66- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 duty of the director to review the appeal and issue a final order, to be made not later than ten days after the receipt of the appeal by the director.

59.57.

60-4,112 Sections 60-4,118.03 60-4,114.01 and 60-4,118.01 to 60-4,130.05 and sections 5957 to 6159 of this act shall apply to the -67- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 operation of any motor vehicle except a commercial motor vehicle.

60.58.

61.59.

62.60.

60-4,12260-4,122 (1) (1) Except as otherwise provided in subsections (2), (3), and (8) of this section, no original or renewal operator's license shall be issued to any person until such person has demonstrated his or her -68- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 ability to operate a motor vehicle safely as provided in section 60-4,114.

(3) Any person who renews his or her Class O or Class M license prior to -24- LB972 LB972 2026 or within one year after its expiration may not be required to demonstrate his or her knowledge of the motor vehicle laws of this state as provided in subdivision (3)(c) of section 60-4,114 if his or her driving record abstract maintained in the computerized records of the department shows that such person's license is not impounded, suspended, revoked, or canceled.

(6)(a) If a nonresident who applies for an initial operator's license in this state presents a physical or mobile valid operator's license from the individual's state of residence, the department may -69- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 choose not to require such individual to demonstrate knowledge of the motor vehicle laws of this state.

(B) Holds a , whose license that expires prior to his or her seventy-secondseventy- second birthday;

(B) Such person's , if his or her driving record abstract maintained -70- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 in the records of the department shows that such person's license is not impounded, suspended, revoked, or canceled;

Every person renewing a state identification card under this subsection, including a person who is out of the state at the time of renewal, shall must apply for renewal in person at least once every sixteen years and have a new digital image -71- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 and digital signature captured.

63.61.

60-529 (1)(a) Prior to July 1, 2027, proof Proof of financial -25- LB972 LB972 2026 responsibility may be furnished by (i) (1) filing with the department the written certificate of any insurance carrier, duly authorized to do business in this state, or (ii) (2) electronic transmission of a certificate by an insurance carrier, duly authorized to do business in this state, certifying that there is in effect a motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility, also known as an SR-22 certificate.

64.62.

-72- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 60-6,290 (1)(a) No vehicle shall exceed a length of forty feet, extreme overall dimensions, inclusive of front and rear bumpers including load, except that:

(v) A semitrailer operating in a truck-tractor single semitrailer combination, while transporting baled livestock forage, may exceed the forty-footforty- foot limitation but shall not exceed a length of fifty-nine feet six inches including load;

-73- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (i) One truck and one trailer, loaded or unloaded, used in transporting implements of husbandry to be engaged in harvesting, while being transported into or through the state during daylight hours if the total length does not exceed seventy-five feet including load;

(iii) A truck-tractor semitrailer trailer combination, but the semitrailer trailer portion of such combination shall not exceed sixty-sixty-five five feet inclusive of connective devices;

For purposes of this subdivision, towaway trailer transporter combination means a combination of vehicles consisting of a trailer transporter towing unit and two trailers or semitrailers with a total weight that does not exceed twenty-twenty-six six thousand pounds, and in which the trailers or semitrailers carry no property and constitute inventory property of a manufacturer, distributor, or dealer of such trailers or semitrailers.

(d) A trailer shall be construed to be one vehicle for the purpose -74- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 of determining length.

-26- LB972 LB972 2026 (2) Subsection (1) of this section shall not apply to:

(h) The overhang of a combine to be engaged in harvesting, while being transported into or through the state driven during daylight hours by a truck-tractortruck- tractor semitrailer combination, but the length of the semitrailer, including overhang, shall not exceed sixty-three feet and the maximum semitrailer length shall not exceed fifty-three feet;

(j) One truck-tractor two trailer combination or one truck-tractor semitrailer trailer combination used in transporting equipment utilized -75- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 by custom harvesters under contract to agricultural producers to harvest wheat, soybeans, or milo during the months of April through November but the length of the property-carrying units, excluding load, shall not exceed eighty-one feet six inches;

65.63.

60-6,34060-6,340 (1) (1) No person under the age of sixteen twelve years shall operate a snowmobile in this state unless accompanied by a parent, guardian, or other person over eighteen years of age.

64.

Section 60-6,356, Revised Statutes Supplement, 2025, is amended to read:

60-6,356 (1) An all-terrain vehicle or a utility-type vehicle shall not be operated on any controlled-access highway with more than two marked traffic lanes.

The crossing of any controlled-access highway with more than two marked traffic lanes shall not be permitted except as provided in subsections (9) and (10) of this section.

Subsections (2), (3), and (5) through (8) of this section authorize and apply to operation of an all-terrain vehicle or a utility-type vehicle only on a highway other than a controlled-access highway with more than two marked traffic lanes.

(2) An all-terrain vehicle or a utility-type vehicle may be operated in accordance with the operating requirements of subsection (3) of this section:

(a) Outside the corporate limits of a city, village, or unincorporated village if incidental to the vehicle's use for agricultural purposes;

(b) Within the corporate limits of a city or village if authorized by the city or village by ordinance adopted in accordance with this section;

or (c) Within an unincorporated village if authorized by the county board of the county in which the unincorporated village is located by resolution in accordance with this section.

(3)(a) An all-terrain vehicle or a utility-type vehicle may be operated as authorized in subsection (2) of this section when such operation occurs:

(i) Between the hours of sunrise and sunset;

or (ii) Between the hours of sunset and sunrise for purposes of snow removal within the corporate limits of a city or village or within an unincorporated village;

or .

(iii) Between the hours of sunset and sunrise within the corporate limits of a city or village or within an unincorporated village if:

(A) The headlight for the all-terrain vehicle or utility-type vehicle displays a white light and:

(I) For multiple beam headlights, the upper beam sufficiently illuminates any person, vehicle, or substantial object at a distance of at least one hundred feet in front of the all-terrain vehicle or utility-type vehicle, and -27- LB972 LB972 2026 the lowermost beam sufficiently illuminates any person, vehicle, or substantial object at a distance of at least fifty feet in front of the all-terrain vehicle or utility-type vehicle;

and (II) For single beam headlights, the headlight sufficiently illuminates any person, vehicle, or substantial object at a distance of at least one hundred feet in front of the all-terrain vehicle or utility-type vehicle, and the high intensity portion of the light does not project higher than the level of the center of the headlight;

and (B) The taillight for the all-terrain vehicle or utility-type vehicle displays a red light that is plainly visible from a distance of five hundred feet behind the all-terrain vehicle or utility-type vehicle.

(b) Any person operating an all-terrain vehicle or a utility-type vehicle as authorized in subsection (2) of this section shall:

(i) Have a valid Class O operator's license or a farm permit as provided in section 60-4,126;

(ii) Have liability insurance coverage for the all-terrain vehicle or a utility-type vehicle while operating such all-terrain vehicle or utility-type vehicle on a highway;

and (iii) Not operate the all-terrain or utility-type vehicle at a speed in excess of thirty miles per hour.

(c) The person operating an all-terrain vehicle or a utility-type vehicle shall provide proof of such insurance coverage to any peace officer requesting such proof within five days of such a request.

(d) When operating an all-terrain vehicle or a utility-type vehicle as authorized in subsection (2) of this section, the headlight and taillight of the vehicle shall be on and the vehicle shall be equipped with a bicycle safety flag which extends not less than five feet above ground attached to the rear of such vehicle.

The bicycle safety flag shall be triangular in shape with an area of not less than thirty square inches and shall be day-glow in color.

(4) All-terrain vehicles and utility-type vehicles may be operated without complying with subsection (3) of this section on highways in parades which have been authorized by the State of Nebraska or any department, board, commission, or political subdivision of the state.

(5) The crossing of a highway other than a controlled-access highway with more than two marked traffic lanes shall be permitted by an all-terrain vehicle or a utility-type vehicle without complying with subsection (3) of this section only if:

(a) The crossing is made at an angle of approximately ninety degrees to the direction of the highway and at a place where no obstruction prevents a quick and safe crossing;

(b) The vehicle is brought to a complete stop before crossing the shoulder or roadway of the highway;

(c) The operator yields the right-of-way to all oncoming traffic that constitutes an immediate potential hazard;

(d) In crossing a divided highway, the crossing is made only at an intersection of such highway with another highway;

and (e) Both the headlight and taillight of the vehicle are on when the crossing is made.

(6) All-terrain vehicles and utility-type vehicles may be operated outside the corporate limits of any municipality by electric utility personnel within the course of their employment in accordance with the operation requirements of subsection (3) of this section, except that the operation of the vehicle pursuant to this subsection need not be limited to the hours between sunrise and sunset.

(7) A city or village may adopt an ordinance authorizing the operation of all-terrain vehicles and utility-type vehicles within the corporate limits of the city or village if the operation is in accordance with subsection (3) of this section.

The city or village may place other restrictions on the operation of all-terrain vehicles and utility-type vehicles within its corporate limits.

(8) A county board may adopt a resolution authorizing the operation of all-terrain vehicles and utility-type vehicles within any unincorporated village within the county if the operation is in accordance with subsection (3) of this section.

The county may place other restrictions on the operation of all-terrain vehicles and utility-type vehicles within the unincorporated village.

(9) Except as provided in subsection (10) of this section, the crossing of a controlled-access highway with more than two marked traffic lanes shall be permitted by a utility-type vehicle if the operation is in accordance with the operation requirements of subsection (3) of this section and if the following requirements are met:

(a) The crossing is made at an intersection that:

(i) Is controlled by a traffic control signal;

or (ii) For any intersection located outside the corporate limits of a city or village, is controlled by stop signs;

(b) The crossing at such intersection is made in compliance with the traffic control signal or stop signs;

and (c) The crossing at such intersection is specifically authorized as follows:

(i) If such intersection is located within the corporate limits of a city or village, by ordinance of such city or village;

(ii) If such intersection is located within an unincorporated village, by resolution of the county board of the county in which such unincorporated village is located;

or -28- LB972 LB972 2026 (iii) If such intersection is located outside the corporate limits of a city or village and outside any unincorporated village, by resolution of the county board of the county in which such intersection is located.

(10) When the use of the all-terrain vehicle or utility-type vehicle is for an agricultural purpose, the crossing of a controlled-access highway with more than two marked traffic lanes shall be permitted if such vehicle is operated in accordance with subsection (3) of this section.

Sec.

65.

Section 60-1401, Revised Statutes Cumulative Supplement, 2024, is amended to read:

60-1401 Sections 60-1401 to 60-1441 and section 72 of this act shall be known and may be cited as the Motor Vehicle Industry Regulation Act.

Any amendments to the act shall apply to franchises subject to the act which are entered into, amended, altered, modified, renewed, or extended after the date of the amendments to the act except as otherwise specifically provided in the act.

All amendments to the act shall apply upon the issuance or renewal of a dealer's or manufacturer's license.

Sec.

60-1402 (1) The There is hereby established the Nebraska Motor -76- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 Vehicle Industry Licensing Board is created.

(g) One recreational vehicle dealer that is licensed under the RecreationalMotor Vehicle Industry Regulation Act;

and (h) One recreational vehicle manufacturer that is licensed under the RecreationalMotor Vehicle Industry Regulation Act.

(b) On January 1, 1972, the Governor shall appoint one factory representative and one member of the general public to the board, -77- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 designating one to serve for a term of one year and one for a term of two years.

Section 60-1411.01, Reissue Revised Statutes of Nebraska, -78- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 is amended to read:

60-1411.01 (1)60-1411.01 (1) To pay the expenses of the administration, operation, maintenance, and enforcement of the Motor Vehicle Industry Regulation Act, the board shall collect with each application for each class of license fees not -29- LB972 LB972 2026 exceeding the following amounts:

Any motor vehicle, motorcycle, or trailer dealer changing its location shall not be required to obtain a new license if the new location is within the same city limits or county, all requirements of law are complied with, and a fee of -79- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 one hundred twenty-five dollars is paid, but any change of ownership of any licensee shall require a new application for a license and a new license.

Section 60-1430.02, Reissue Revised Statutes of Nebraska, is amended to read:

60-1430.02 (1) Upon the termination, cancellation, or noncontinuation of a franchise by the franchisor or franchisee pursuant to the Motor Vehicle Industry Regulation Act, the franchisor shall pay the franchisee:

(a) The dealer cost, plus any charges made by the franchisor for distribution, delivery, and taxes, less all allowances paid or credited to the franchisee by the franchisor, of unused, undamaged, and unsold motor vehicles in the franchisee's inventory acquired from the franchisor or another franchisee of the same line and make within the previous twelve months;

(b) The dealer cost, less all allowances paid or credited to the franchisee by the franchisor, for all unused, undamaged, and unsold supplies, parts, and accessories in original packaging, except that (i) in the case of sheet metal, a comparable substitute for original packaging may be used if such supply, part, or accessory is offered for sale by the franchisor and was acquired from the franchisor or the predecessor franchisee as a part of the franchisee's initial inventory and (ii) in the case of a motorcycle franchise, the payment for such supplies, parts, and accessories shall be based upon the currently published dealer cost for all unused, undamaged, and unsold supplies, parts, and accessories currently offered for sale by the franchisor and originally acquired from the franchisor or the predecessor franchisee as a part of the franchisee's initial inventory, and all such supplies, parts, and accessories shall be currently identifiable and labeled and in the original packaging or a comparable substitute for the original packaging;

(c) The fair market value of each undamaged sign owned by the franchisee which bears a common name, trade name, or trademark of the franchisor if acquisition of such sign was recommended or required by the franchisor;

(d) The fair market value of all special tools, equipment, and furnishings acquired from the franchisor or sources approved by the franchisor which were recommended and required by the franchisor and are in good and usable condition except for reasonable wear and tear;

and (e) The cost of transporting, handling, packing, and loading motor vehicles, supplies, parts, accessories, signs, special tools, equipment, and furnishings.

(2) The franchisor shall pay the franchisee the amounts specified in subsection (1) of this section within ninety days after the tender of the property if the franchisee has clear title to the property and is in a position to convey that title to the franchisor.

This section shall not apply to a termination or noncontinuation of a franchise that is implemented as a result of the sale of the assets or stock of the franchisee.

(3)(a) If the termination, cancellation, or nonrenewal of a franchise is the result of the termination, elimination, or cessation of a line-make by the manufacturer, distributor, or factory branch, then, in addition to the payments to the franchisee pursuant to subsection (1) of this section, the manufacturer, distributor, or factory branch shall be liable to the franchisee for an amount at least equivalent to the fair market value of the franchise for the line- make, which shall be the greater of that value determined as of (i) the date the franchisor announces the action that results in termination, cancellation, or nonrenewal of the line-make or (ii) the date the action that resulted in termination, cancellation, or nonrenewal of the line-make first became general knowledge.

In determining the fair market value of a franchise for a line-make, if the line-make is not the only line-make for which the franchisee holds a -30- LB972 LB972 2026 franchise in the dealership facilities, the franchisee shall also be entitled to compensation for the contribution of the line-make to payment of the rent or to covering obligations for the fair rental value of the franchise facilities for the period set forth in subdivision (b) of this subsection.

Fair market value of the franchise for the line-make shall only include the goodwill value of the franchise for that line-make in the franchisee's community.

(b) If the line-make is the only line-make for which the franchisee holds a franchise, the manufacturer, distributor, or factory branch shall also pay assistance with respect to the franchise facilities leased or owned by the franchisee as follows:

(i) The manufacturer, distributor, or factory branch shall pay the franchisee a sum equivalent to the rent for the unexpired term of the lease or two years' rent, whichever is less;

or (ii) If the franchisee owns the franchise facilities, the manufacturer, distributor, or factory branch shall pay the franchisee a sum equivalent to the reasonable rental value of the franchise facilities for two years.

(c) To be entitled to franchise facilities assistance from the manufacturer, distributor, or factory branch, the franchisee shall have the obligation to mitigate damages by listing the franchise facilities for lease or sublease with a licensed real estate agent within thirty days after the effective date of the termination of the franchise and by reasonably cooperating with the real estate agent in the performance of the agent's duties and responsibilities.

If the franchisee is able to lease or sublease the franchise facilities on terms that are consistent with local zoning requirements to preserve the right to sell motor vehicles from the franchise facilities and the terms of the franchisee's lease, the franchisee shall be obligated to pay the manufacturer the net revenue received from such mitigation, but only following receipt of franchise facilities assistance payments pursuant to subdivision (3)(b) of this section and only up to the total amount of franchise facilities assistance payments that the franchisee has received.

(d) This subsection does not apply to the termination of a line-make by a franchisor of recreational vehicles.

(4) This section shall not relieve a franchisee from any other obligation to mitigate damages upon termination, cancellation, or noncontinuation of the franchise.

Sec.

69.

Section 60-1437, Reissue Revised Statutes of Nebraska, is amended to read:

60-1437 In addition to the restrictions imposed by section 60-1436, a manufacturer or distributor shall not:

(1) Fail to deliver new motor vehicles or new motor vehicle parts or accessories within a reasonable time and in reasonable quantities relative to the new motor vehicle dealer's market area and facilities, unless the failure is caused by acts or occurrences beyond the control of the manufacturer or distributor or unless the failure results from an order by the new motor vehicle dealer in excess of quantities reasonably and fairly allocated by the manufacturer or distributor;

(2) Refuse to disclose to a new motor vehicle dealer the method and manner of distribution of new motor vehicles by the manufacturer or distributor or, if a line-make is allocated among new motor vehicle dealers, refuse to disclose to any new motor vehicle dealer that handles the same line-make the system of allocation, including, but not limited to, a complete breakdown by model, and a concise listing of dealerships with an explanation of the derivation of the allocation system, including its mathematical formula in a clear and comprehensible form;

(3) Refuse to disclose to a new motor vehicle dealer the total number of new motor vehicles of a given model which the manufacturer or distributor has sold during the current model year within the dealer's marketing district, zone, or region, whichever geographical area is the smallest;

(4) Increase the price of any new motor vehicle which the new motor vehicle dealer had ordered and delivered to the same retail consumer for whom the vehicle was ordered, if the order was made prior to the dealer's receipt of the written official price increase notification.

A sales contract signed by a private retail consumer and binding on the dealer shall constitute evidence of such order.

In the event of manufacturer or distributor price reduction or cash rebate, the amount of any reduction or rebate received by a dealer shall be passed on to the private retail consumer by the dealer.

Any price reduction in excess of five dollars shall apply to all vehicles in the dealer's inventory which were subject to the price reduction.

A price difference applicable to a new model or series of motor vehicles at the time of the introduction of the new model or series shall not be considered a price increase or price decrease.

This subdivision shall not apply to price changes caused by the following:

(a) The addition to a motor vehicle of required or optional equipment pursuant to state or federal law;

(b) In the case of foreign-made vehicles or components, revaluation of the United States dollar;

or (c) Any increase in transportation charges due to an increase in rates charged by a common carrier or other transporter;

(5) Fail or refuse to sell or offer to sell to all franchised new motor vehicle dealers in a line-make every new motor vehicle sold or offered for sale to any franchised new motor vehicle dealer of the same line-make.

However, the failure to deliver any such new motor vehicle shall not be considered a violation of this section if the failure is due to a lack of manufacturing -31- LB972 LB972 2026 capacity or to a strike or labor difficulty, a shortage of materials, a freight embargo, or any other cause over which the franchisor has no control.

A manufacturer or distributor shall not require that any of its new motor vehicle dealers located in this state pay any extra fee, purchase unreasonable or unnecessary quantities of advertising displays or other materials, or remodel, renovate, or recondition the new motor vehicle dealer's existing facilities in order to receive any particular model or series of vehicles manufactured or distributed by the manufacturer for which the dealers have a valid franchise.

Notwithstanding the provisions of this subdivision, nothing contained in this section shall be deemed to prohibit or prevent a manufacturer from requiring that its franchised dealers located in this state purchase special tools or equipment, stock reasonable quantities of certain parts, or participate in training programs which are reasonably necessary for those dealers to sell or service any model or series of new motor vehicles .

This subdivision shall not apply to manufacturers of recreational vehicles;

(6) Fail to offer dealers of a specific line-make a new franchise agreement containing substantially similar terms and conditions for sales of the line-make if the ownership of the manufacturer or distributor changes or there is a change in the plan or system of distribution;

(7) Take an adverse action against a dealer because the dealer sells or leases a motor vehicle that is later exported to a location outside the United States.

A franchise provision that allows a manufacturer or distributor to take adverse action against a dealer because the dealer sells or leases a motor vehicle that is later exported to a location outside the United States is enforceable only if, at the time of the original sale or lease, the dealer knew or reasonably should have known that the motor vehicle would be exported to a location outside the United States.

A dealer is presumed to have no knowledge that a motor vehicle the dealer sells or leases will be exported to a location outside the United States if, under the laws of a state of the United States (a) the motor vehicle is titled, (b) the motor vehicle is registered, and (c) applicable state and local taxes are paid for the motor vehicle.

Such presumption may be rebutted by direct, clear, and convincing evidence that the dealer knew or reasonably should have known at the time of the original sale or lease that the motor vehicle would be exported to a location outside the United States.

Except as otherwise permitted by subdivision (7) of this section, a franchise provision that allows a manufacturer or distributor to take adverse action against a dealer because the dealer sells or leases a motor vehicle that is later exported to a location outside the United States is void and unenforceable;

(8) Discriminate against a dealer holding a franchise for a line-make of the manufacturer or distributor in favor of other dealers of the same line-make in this state by:

(a) Selling or offering to sell a new motor vehicle to a dealer at a lower actual price, including the price for vehicle transportation, than the actual price at which the same model similarly equipped is offered to or is available to another dealer in this state during a similar time period;

or (b) Using a promotional program or device or an incentive, payment, or other benefit, whether paid at the time of the sale of the new motor vehicle to the dealer or later, that results in the sale or offer to sell a new motor vehicle to a dealer at a lower price, including the price for vehicle transportation, than the price at which the same model similarly equipped is offered or is available to another dealer in this state during a similar time period.

This subdivision shall not prohibit a promotional or incentive program that is functionally available to competing dealers of the same line-make in this state on substantially comparable terms;

(9) Refuse to pay a new motor vehicle dealer for sales incentives, service incentives, rebates, or other forms of incentive compensation within thirty days after their approval by the manufacturer or distributor.

The manufacturer or distributor shall either approve or disapprove each claim by the dealer within thirty days after receipt of the claim in a proper form generally used by the manufacturer or distributor.

Any claims not specifically disapproved in writing within thirty days after receipt shall be considered to be approved;

(10) Perform an audit to confirm payment of a sales incentive, service incentive, rebate, or other form of incentive compensation more than twelve months after the date of payment of the claim or twelve months after the end of the incentive program by the new motor vehicle dealer unless the claim is fraudulent;

(11) Reduce the amount to be paid to a new motor vehicle dealer for a sales incentive, service incentive, rebate, or other form of incentive compensation or charge back a new motor vehicle dealer subsequent to the payment of the claim for a sales incentive, service incentive, rebate, or other form of incentive compensation unless the manufacturer or distributor shows that the claim lacks required documentation or is alleged to be false, fraudulent, or based on a misrepresentation.

A manufacturer or distributor may not deny a claim based solely on a new motor vehicle dealer's incidental failure to comply with a specific claim processing requirement, such as a clerical error, that does not put into question the legitimacy of the claim.

No reduction in the amount to be paid to the new motor vehicle dealer and no charge back subsequent to the payment of a claim may be made until the new motor vehicle dealer has had notice and an opportunity to correct any deficiency and resubmit the claim and to participate in all franchisor internal appeal processes as well as all available legal processes.

If a charge back is the subject of adjudication, internal appeal, -32- LB972 LB972 2026 mediation, or arbitration, no charge back shall be made until, in the case of an adjudication or legal action, a final order has been issued.

A claim for reimbursement by the manufacturer or distributor of sums due following an audit must be presented to the dealer within ninety days after completion of the audit of the item subject to the claim.

A manufacturer or distributor may not setoff or otherwise take control over funds owned or under the control of the new motor vehicle dealer or which are in an account designated for the new motor vehicle dealer when such action is based upon the findings of an audit or other claim with respect thereto until a final decision is issued with respect to any challenge or appeal by either party of any such audit or claim.

Any ambiguity or inconsistency in submission guidelines shall be construed against the manufacturer or distributor;

(12) Make any express or implied statement or representation directly or indirectly that the dealer is under any obligation whatsoever to offer to sell or sell any extended service contract, extended maintenance plan, gap policy, gap waiver, or other aftermarket product or service offered, sold, backed by, or sponsored by the manufacturer or distributor or to sell, assign, or transfer any of the dealer's retail sales contracts or leases in this state on motor vehicles manufactured or sold by the manufacturer or distributor to a finance company or class of finance companies, leasing company or class of leasing companies, or other specified person, because of any relationship or affiliation between the manufacturer or distributor and the finance company or companies, leasing company or leasing companies, or the specified person or persons;

or (13) Prohibit a franchisee from acquiring a line-make of new motor vehicles solely because the franchisee owns or operates a franchise of the same line-make in a contiguous market.

Any such statements, threats, promises, acts, contracts, or offers of contracts, when their effect may be to lessen or eliminate competition or tend to create a monopoly, are declared unfair trade practices and unfair methods of competition and are prohibited.

Sec.

70.

Section 60-1438, Revised Statutes Supplement, 2025, is amended to read:

60-1438 (1) Each new motor vehicle manufacturer or distributor shall specify in writing to each of its new motor vehicle dealers licensed in this state the dealer's obligations for preparation, delivery, and warranty service on its products.

The manufacturer or distributor shall compensate the new motor vehicle dealer for warranty service which such manufacturer or distributor requires the dealer to provide, including warranty and recall obligations related to repairing and servicing motor vehicles and all parts and components included in or manufactured for installation in the motor vehicles of the manufacturer or distributor.

The manufacturer or distributor shall provide the new motor vehicle dealer with the schedule of compensation to be paid to the dealer for parts, work, and service and the time allowance for the performance of the work and service.

(2)(a) The schedule of compensation shall include compensation for diagnostic work, as well as repair service, parts, and labor.

Time allowances for the diagnosis and performance of warranty work and service shall be adequate for a qualified technician to perform the work or service.

A franchisor shall not unreasonably deny a written request submitted by a franchisee for modification of a franchisor's uniform time allowance for a specific warranty repair or unreasonably deny a request submitted by a franchisee for an additional time allowance for diagnostic or repair work on a specific vehicle covered under warranty.

Any such request shall include information and documentation reasonably necessary for the franchisor to assess the merits of the franchisee's request.

In the determination of compensation under this section, the principal factors to be given consideration shall be the prevailing wage rates being paid by dealers in the community in which the dealer is doing business, and in no event shall the compensation of the dealer for warranty parts and labor be less than the rates charged by the dealer for like parts and service to retail or fleet customers.

In determining prevailing wage rates, the rate of compensation for labor for that portion of repair orders for all recommended maintenance services shall not be used, including maintenance services relating to the following:

Oil, filters, any fluids, brake pads, brake discs, brake drums, spark plugs, wiper blades, tire repair, or tire replacement.

(b)(i) For purposes of this section, compensation for parts may be determined by calculating the price paid by the dealer for parts, including all shipping and other charges, multiplied by the sum of one and the dealer's average percentage markup over the price paid by the dealer for parts purchased by the dealer from the manufacturer and sold at retail.

The dealer may establish average percentage markup by submitting to the manufacturer one hundred sequential customer-paid service repair orders or ninety days of customer-paid service repair orders, whichever is less, covering repairs made no more than one hundred eighty days before the submission and declaring what the average percentage markup is.

Within thirty days after receipt of the repair orders, the manufacturer may audit the submitted repair orders and approve or deny approval of the average percentage markup based on the audit.

The average percentage markup shall go into effect forty-five days after the approval based on that audit.

If the manufacturer denies approval of the average percentage markup declared by the dealer, the dealer may file a complaint with the board.

The manufacturer shall have the burden to prove that -33- LB972 LB972 2026 the denial was made pursuant to the Motor Vehicle Industry Regulation Act.

If the board determines that the denial was not reasonable, the denial shall be deemed a violation of the Motor Vehicle Industry Regulation Act subject to the enforcement procedures of the act.

When determining compensation for parts, only retail sales that do not involve warranty repairs shall be used and the rate of markup for all parts supplied on repair orders for recommended maintenance services shall not be used, including maintenance services relating to the following:

Oil, filters, any fluids, brake pads, brake discs, brake drums, spark plugs, wiper blades, tire repair, or tire replacement.

No manufacturer shall require a dealer to establish average percentage markup by a methodology, or by requiring information, that is unduly burdensome or time consuming to provide, including, but not limited to, part-by-part or transaction-by-transaction calculations.

A dealer shall not request a change in the average percentage markup more than twice in one calendar year.

(ii)(A) If a franchisor furnishes, or causes to be furnished, a part to a dealer at no cost or at a reduced cost for use in performing warranty work, the franchisor shall compensate the dealer for the dealer's cost of the part, if any, plus an amount equal to the markup on the dealer's part.

Such amount shall be multiplied by the fair wholesale value of the part.

(B) For purposes of subdivision (b)(ii) of this subsection, fair wholesale value of the part means the greatest of the following:

(I) The amount the dealer paid for the part;

(II) The cost of the part, at the time the part was furnished, in a price schedule of the franchisor;

and (III) The cost of a substantially identical part, at the time the part was furnished, in a price schedule of the franchisor.

(c)(i) A manufacturer or distributor may request up to one hundred additional repair orders different from those provided under subdivision (2)(b) of this section from a dealer of the manufacturer or distributor to determine if such dealer's average percentage markup rate, retail labor rate, or both are materially different than the rates such dealer has declared with the manufacturer or distributor.

(ii) The manufacturer or distributor may adjust the subsequent rates paid by the manufacturer or distributor to such dealer if the manufacturer or distributor determines that such dealer's rates charged to customers for nonwarranty work are less than the rates currently being paid by the manufacturer or distributor to such dealer for warranty work.

The manufacturer or distributor shall have thirty days from receiving all requested additional repair orders to rebut the new vehicle dealer's labor rate, average percentage markup rate, or both.

(iii) The additional repair orders specified in subdivision (2)(c)(i) of this section shall be:

(A) From a ninety-day period selected by the manufacturer or distributor within the most recent previous twelve-month period;

and (B) Repair orders selected by the dealer.

(iv) A request for repair orders under this subdivision (c) shall not be made within twelve months after any prior request under this subdivision (c).

(d) Nothing in this section prohibits a dealer and manufacturer or distributor from reaching an agreement on a mutually acceptable retail labor rate or average percentage markup rate.

(3) A manufacturer or distributor shall not do any of the following:

(a) Fail to perform any warranty obligation;

(b) Fail to include in written notices of factory recalls to new motor vehicle owners and dealers the expected date by which necessary parts and equipment will be available to dealers for the correction of the defects;

or (c) Fail to compensate any of the new motor vehicle dealers licensed in this state for repairs effected by the recall.

(4) A dealer's claim for warranty compensation may be denied only if:

(a) The dealer's claim is based on a nonwarranty repair;

(b) The dealer lacks documentation for the claim;

(c) The dealer fails to comply with specific substantive terms and conditions of the franchisor's warranty compensation program;

or (d) The manufacturer has a bona fide belief based on competent evidence that the dealer's claim is intentionally false, fraudulent, or misrepresented.

(5) All claims made by a new motor vehicle dealer pursuant to this section for labor and parts shall be made within six months after completing the work and shall be paid within thirty days after their approval.

All claims shall be either approved or disapproved by the manufacturer or distributor within thirty days after their receipt on a proper form generally used by the manufacturer or distributor and containing the usually required information therein.

Any claim not specifically disapproved in writing within thirty days after the receipt of the form shall be considered to be approved and payment shall be made within thirty days.

The manufacturer has the right to audit the claims for one year after payment, except that if the manufacturer has reasonable cause to believe that a claim submitted by a dealer is intentionally false or fraudulent, the manufacturer has the right to audit the claims for four years after payment.

For purposes of this subsection, reasonable cause means a bona fide belief based upon evidence that the issues of fact are such that a person of ordinary caution, prudence, and judgment could believe that a claim was intentionally false or fraudulent.

As a result of an audit authorized under this subsection, the manufacturer has the right to charge back to the new motor vehicle dealer the amount of any previously paid claim after the new motor vehicle dealer has had notice and an opportunity to participate in all franchisor internal appeal -34- LB972 LB972 2026 processes as well as all available legal processes.

The requirement to approve and pay the claim within thirty days after receipt of the claim does not preclude chargebacks for any fraudulent claim previously paid.

A manufacturer may not deny a claim based solely on a dealer's incidental failure to comply with a specific claim processing requirement, such as a clerical error that does not put into question the legitimacy of the claim.

If a claim is rejected for a clerical error, the dealer may resubmit a corrected claim in a timely manner.

(6) The warranty obligations set forth in this section shall also apply to any manufacturer of a new motor vehicle transmission, engine, or rear axle that separately warrants its components to customers.

(7) This section does not apply to recreational vehicles.

Sec.

71.

-80- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 (c) Act in the capacity of a franchisee or motor vehicle dealer;

An application for an extension after the first extension is granted is subject to protest by a franchisee of the same line-make whose franchise is located in the same -81- ER132 ER132 LB972 LB972 MJP - 03/11/2026 MJP - 03/11/2026 community as the franchise owned or controlled by the manufacturer or distributor.