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NebraskaLB398109th Legislature 1st and 2nd SessionslegislatureWALLET

Adopt updates to federal law relating to motor vehicles and motor carriers, provide for Arbor Day license plates and certain trailer license plates, change fees and fee distribution provisions for license plates and records requests related to motor vehicles and motor vehicle operators, change provisions relating to commercial driver’s licenses and CLP-commercial learner’s permits, and provide duties for successors in interest of certain railroad property

Sponsored By: Mike Moser

Signed by Governor

Transportation and Telecommunications Committee

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Bill Overview

Analyzed Economic Effects

36 provisions identified: 11 benefits, 11 costs, 14 mixed.

Stricter CDL medical checks and downgrades

If you do not give the required medical certification, the DMV marks you “not‑certified,” starts a downgrade, and cancels your CLP or CDL. The DMV posts your self‑certification and key medical certificate details to your CDL record and keeps the certificate for three years. It must post medical variances quickly and, when a variance or certification expires or is rescinded, notify you and finish the downgrade within 60 days. The director sets a date no later than June 23, 2025 to move to one‑business‑day updates.

Stronger CDL rules and higher fines

Drivers face at least $3,861 for a first out‑of‑service violation and $7,723 for repeat violations. Carriers that allow out‑of‑service driving face $6,974 to $38,612 per violation, plus up to $1,002 for a single inspection‑found violation and up to $20,017 for certain convictions. Using a commercial vehicle in a trafficking felony triggers a lifetime CDL ban. Hazardous‑materials endorsements must meet the named federal vetting rules. The law lists which ID and lawful‑status documents are acceptable when applying for a CLP or CDL.

Easier disability plates and parking access

The DMV issues one vehicle plate and one motorcycle or autocycle plate without plate fees to permanently disabled people or a trust with a qualifying beneficiary. You must apply and show proof; some taxes or small fees may still apply. You can get up to two duplicate disabled parking permits per permit period without a new medical form; they last the rest of the period. Disabled‑parking permits must follow the federal design, and every accessible stall or aisle needs an above‑ground sign that meets the MUTCD and ADA rules as of January 1, 2025.

More options for veteran plates

Veterans have new plate options. Starting January 1, 2026, the DMV issues a Space Force Military Honor Plate, a plate that says “veteran,” and a veteran plate with the wheelchair symbol for those with a permanent disability. Disabled veteran plates are now open to vets rated at least 10% service‑connected disabled, with honorable or general (under honorable conditions) discharge, verified through the VA registry. If you lose eligibility for Military Honor Plates, you must surrender them and pay a $3 transfer fee for regular plates. The DMV also keeps issuing Military Honor Plates unless issuance drops to fewer than one per year over two years.

New driver license system and funding

The DMV must build a new Operator’s License Services System by July 1, 2032. The state creates a fund to build and maintain it. Investment earnings from that fund go to the General Fund starting October 1, 2024. The State Treasurer also splits certain electronic record‑access fees between the License Plate Cash Fund and the Records Management Cash Fund, with higher per‑1,000 allocations starting July 1, 2026.

Higher fees for DMV records

DMV data and record fees increase. Bulk extracts cost $25 per 1,000 records before July 1, 2026 and $35 per 1,000 on or after that date. Monitoring operating records costs $0.15 per record. Driver record headers cost $30 per 1,000 records. Electronic title and registration records cost $3 per record, and a copy of a registration or title record costs $3.

Higher DMV record and data fees

Per‑record fees are $4.50 before July 1, 2025; $12.00 from July 1, 2025 through June 30, 2029; and $4.50 again on or after July 1, 2029. Of each record fee, $4.00 goes to the Operator’s License Services System Replacement and Maintenance Fund. Bulk requests under 2,000 records cost $50 plus any programming fee (up to $520). For 2,000+ records, the rate is $25 per 1,000 before July 1, 2026, and $35 per 1,000 on or after that date. Full‑file extract fees go to the DMV Cash Fund. Driver‑record revenue is split 41 2/3% to the DMV Cash Fund, 25% to the General Fund, and 33 1/3% to the Records Management Cash Fund.

2025 federal motor rules now apply

Nebraska updates its references to federal motor rules to January 1, 2025. This includes truck safety and licensing rules, the International Registration Plan, the Unified Carrier Registration, and when commercial driver records may be shared. It also updates lemon-law dispute rules to match the 2025 federal standard. Carriers and drivers must follow the 2025 versions now built into state law.

Low-speed vehicle rules and safety updated

Nebraska broadens what counts as a low‑speed vehicle. Four‑wheeled vehicles that go more than 20 but not over 25 mph, weigh under 3,000 pounds, and meet the named federal safety rules can qualify. Certain three‑wheeled vehicles also qualify if they go up to 25 mph, weigh under 3,000 pounds, and have a windshield and an occupant protection system. Occupant protection must meet the federal standards listed in the law.

Grants help veterans adopt pets

Money goes into the Pets for Vets Cash Fund. The Department of Veterans’ Affairs gives grants to help veterans pay pet adoption costs. The department can run the program or hire an animal care group to run it.

Broader Military Honor plates and fees

More people qualify for Military Honor plates. This includes active or reserve members, qualifying veterans, and some USPHS or NOAA officers. The Inherent Resolve Campaign Medal qualifies starting January 1, 2026. Trust‑owned vehicles can apply starting January 1, 2026 if a beneficiary qualifies. Alphanumeric plates cost $5; personalized plates cost $40.

Former POW plates are free

Eligible former prisoners of war get specialty plates with no plate fee. The DMV verifies eligibility using the Veterans’ Affairs registry. Lost, stolen, or damaged plates are replaced free. Temporary stickers are also free while you wait.

Lower fees for organizational plates

The fee for organizational plates is $70 before October 1, 2025, and $40 on or after that date. If you transfer an organizational plate, you get credit for unused months equal to 8.333% of the original fee per full month left. You pay a $3 transfer application fee to use the credit.

Plate money supports parks and youth

The Josh the Otter—Be Safe Around Water Fund gets money credited by this law and can also take gifts and grants. The Game and Parks Commission Educational Fund gets credited money for youth wildlife‑education programs. The State Park Improvement and Maintenance Fund receives credited money for park projects; money directed by this law must only fund state recreational trails. The Wildlife Conservation Fund includes credited money and a General Fund transfer equal to taxpayer income‑tax designations.

Stronger ID security at DMV offices

DMV staff who handle license and ID documents must get regular training to spot fake documents. People who make, record, or can change license or ID data must pass criminal history and lawful‑status checks, with fingerprints sent to the FBI. Employers pay the background‑check costs.

Organ donation awareness fund created

The state creates the Organ and Tissue Donor Awareness and Education Fund. Money sent by DMV staff and county treasurers under driver licensing and ID processes, plus other credits in this act, goes into this fund. The Department of Health and Human Services runs the fund to promote donation and to support the organ procurement group and the State Anatomical Board. The fund may be invested under state law.

Veterans jobs fund source updated

The law updates the source of money for the Veterans Employment Program Fund. The fund now receives credits set elsewhere in this act and any appropriations by the Legislature. The law does not set new dollar amounts.

More info needed to register vehicles

Registration forms must list each owner’s full legal name, home and mailing address, driver’s license or state ID number, and one or more ID elements. List a tax ID if an owner is a business, nonprofit, estate, trust, or church group. State whether the vehicle uses alternative fuel. Include a USDOT number when federal rules require it. The law also updates trailer‑plate categories (for example, well‑boring and well‑servicing equipment) so owners choose the right plate.

Trailer and RV fees updated

Trailer and RV registration fees now follow set tiers. Utility trailers pay $1 per 1,000 pounds up to 9,000 pounds. Cabin trailers pay $9 (≤1,000 lb), $12 (>1,000–<2,000 lb), or $15 (≥2,000 lb). Commercial trailers and semitrailers pay $1. Farm trailers pay $1, or you may choose $3 per ton. Trailers that haul poles or cable reels pay $2 per 1,000‑pound load, up to 16,000 pounds. RVs pay $18 (≤8,000 lb), $30 (>8,000–<12,000 lb), or $42 (≥12,000 lb). If you add living quarters to a registered truck, you can get an RV registration and must display both plates.

Commercial fertilizer trailer plates cost $1

Starting January 1, 2026, commercial fertilizer trailers register for $1. These plates show the letter X and stay on the trailer. A commercial fertilizer trailer is one used by a business that sells fertilizer or ag chemicals for profit.

Electronic reporting for salvage yards

Licensed wrecker and salvage dealers must report electronically through the DMV system starting on the date the director sets. The DMV may accept a format that also meets federal NMVTIS rules. The DMV may charge a reporting fee, but not more than the NMVTIS reporting cost. Fees go to the DMV Cash Fund.

Faster referrals of carrier violations

When inspections find violations, the Superintendent must quickly send interstate cases to the proper federal agency. Intrastate violations of section 75-307 go to the Public Service Commission.

Stricter hiring rules for ID production

People with disqualifying crimes listed in 6 C.F.R. part 37 cannot work on recording verified application data or making state licenses or ID cards. Employers must tell applicants and employees they will have a criminal history check before hiring or assigning this work.

Tougher rules to get group plates

An organization must collect 250 prepaid applications before the DMV makes its plate. The DMV can revoke approval if fewer than 250 vehicles get the plate within three years. Groups must submit governing and nonprofit documents, certify rights to names and logos, and hold the state harmless.

Alternate plate fees, mailing, credits

The DMV offers alternate plates with up to five characters. Alphanumeric plates cost $5; personalized plates cost $40. If mailed, the DMV may charge only actual postage and handling. Counties or the DMV issue free temporary stickers while you wait. You can transfer unused plate fees to another vehicle you own. The credit is 8⅓% per full unused month minus a $3 transfer fee. Support the Arts plates are included, and fees go to the arts fund.

New disabled veteran plates and rules

Starting January 1, 2026, Nebraska issues new disabled veteran plates. The alphanumeric option has no plate fee. A personalized option costs $40 each time. The DMV must verify eligibility using the Veterans’ Affairs registry. Old disabled veteran plates stop being valid on February 1, 2027. If plates are mailed, the DMV may charge only actual postage and handling.

Purple Heart plates and wheelchair option

Starting January 1, 2026, Purple Heart plates are available. The alphanumeric plate has no plate fee. A personalized plate costs $40 to get and renew. A wheelchair variant is offered; you must prove a permanent disability. The DMV verifies eligibility using the Veterans’ Affairs registry. Trust‑owned vehicles can apply if a beneficiary qualifies. Replacements are free, and temporary stickers are free while you wait.

Rules for historic year plates

Owners of historical vehicles may use plates from the vehicle’s year of manufacture if the DMV inspects and approves them. Plates must be legible, usable, and not in conflict with another number. Organizational special plates and alternate plates are not allowed as year‑of‑manufacture plates.

CDL rules and farm diesel exemption

CDL and CLP applicants must list every state where they held a license in the past 10 years. CDL holders must keep medical certification current; the DMV can downgrade a license if it lapses. Applicants are treated as consenting to Drug and Alcohol Clearinghouse record checks. The director sets an implementation date no later than June 23, 2025 for medical certificate handling; after that date, you may not need to give a copy to the DMV, but you must still stay certified. CDL Class A drivers hauling diesel for eligible farm and ag employers inside Nebraska, in service vehicles holding 1,000 gallons or less and properly placarded, do not need a hazmat endorsement.

New CDL medical and ID rules

If you apply for or hold a CDL or CLP, the state accepts paper or electronic medical examiner certificates that meet federal rules. You must self-certify your driving category. Your medical exam must be by a doctor on the National Registry, unless a federal exception applies. The DMV does not print your Social Security number on your CLP or CDL and may use it only for tasks like Selective Service, child support, TSA hazardous-materials checks, tax and election duties, and the federal Drug and Alcohol Clearinghouse. You cannot hold a CLP or CDL and a state ID card at the same time.

New CDL options for noncitizens

Parolees who had an unexpired foreign passport at entry can get a non‑REAL ID CLP or CDL if other checks are met. Nondomiciled applicants must show proof of U.S. citizenship or lawful status, like a passport or Permanent Resident Card. People living in certain foreign places or restricted states can get nondomiciled CLPs/CDLs if they meet testing and document rules. Foreign‑domiciled applicants may show an unexpired work permit or passport with I‑94. You do not have to surrender a foreign license, but you must give required addresses and report certain actions on time.

New specialty plates fund causes

Nebraska offers many new optional specialty plates. Choices include Arbor Day, Breast Cancer Awareness, Choose Life, Czech Heritage, Donate Life, Down Syndrome Awareness, Josh the Otter—Be Safe Around Water, Mountain Lion Conservation, Native American history, Nebraska History, Pets for Vets, Prostate Cancer Awareness, Sammy’s Superheroes, Wildlife Conservation, and The Good Life Is Outside. Support Our Troops plates cost $5 for standard, or $70 for personalized; most of the fee supports the Veterans Employment Program Fund. Cornhusker Spirit plates cost $70 per issue or renewal; 60% goes to the DMV Cash Fund and 40% to the Highway Trust Fund. The DMV stops any alternate plate type if fewer than 500 vehicles per year choose it over any two-year span. If making a plate costs more than the fee, money first covers that shortfall before any remainder goes to the plate’s cause. Arbor Day plates are available starting January 1, 2026.

Limited use of license barcode data

Businesses may scan and send machine‑readable license information to a check services company that follows the federal Fair Credit Reporting Act named in the law. They may use it only to complete a transaction you asked for or to prevent fraud or other crime. This limits where your license data can go and why it can be used.

More military plate options and funding

The state adds one more Military Honor Plate design for campaign‑medal recipients (now up to six). If making these plates costs more than the standard charge, the Highway Trust Fund covers the shortfall before money goes to the Nebraska Veteran Cemetery System Operation Fund.

New rules for organizational plates

Nebraska now calls “specialty” plates “organizational” plates. The DMV provides application forms and issues these plates when normal registration steps are met. Of the fees collected for issuing and renewing these plates, 60% goes to the DMV Cash Fund and 40% to the Highway Trust Fund.

Railroad crossing access and shared costs

If you own land on both sides of a railroad right‑of‑way, the railroad or its successor must provide and maintain at least one safe crossing. You may ask the Department of Transportation to order a fix if needed. For a special crossing that costs more than $1,500, you pay half of the amount over $1,500.

Sponsors & Cosponsors

Sponsor

  • Mike Moser

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 350 • No: 52

legislature vote • 5/28/2025

Final Reading

Yes: 45 • No: 4

legislature vote • 5/28/2025

Select File

Yes: 21 • No: 14 • Other: 14

legislature vote • 5/14/2025

Vote

Yes: 29 • No: 12 • Other: 8

legislature vote • 5/14/2025

Select File

Yes: 31 • No: 10 • Other: 8

legislature vote • 4/9/2025

Vote

Yes: 39 • No: 0 • Other: 10

legislature vote • 4/9/2025

Vote

Yes: 39 • No: 0 • Other: 10

legislature vote • 4/9/2025

Vote

Yes: 39 • No: 0 • Other: 10

legislature vote • Unknown

Vote

Yes: 29 • No: 12 • Other: 8

legislature vote • Unknown

Vote

Yes: 39 • No: 0 • Other: 10

legislature vote • Unknown

Vote

Yes: 39 • No: 0 • Other: 10

Actions Timeline

  1. Provisions/portions of LB568 amended into LB398 by AM842

    6/6/2025legislature

  2. Provisions/portions of LB563 amended into LB398 by AM842

    6/6/2025legislature

  3. Provisions/portions of LB343 amended into LB398 by AM842

    6/6/2025legislature

  4. Provisions/portions of LB175 amended into LB398 by AM765

    6/6/2025legislature

  5. Provisions/portions of LB134 amended into LB398 by AM842

    6/6/2025legislature

  6. Provisions/portions of LB114 amended into LB398 by AM842

    6/6/2025legislature

  7. Approved by Governor on June 4, 2025

    6/4/2025legislature

  8. Presented to Governor on May 29, 2025

    5/29/2025legislature

  9. President/Speaker signed

    5/28/2025legislature

  10. Passed on Final Reading with Emergency Clause 45-4-0

    5/28/2025legislature

  11. Dispensing of reading at large approved

    5/28/2025legislature

  12. Hallstrom AM1509 not considered

    5/28/2025legislature

  13. Motion to return to Select File failed

    5/28/2025legislature

  14. Motion to return to Select File pending

    5/28/2025legislature

  15. Cavanaugh, M. MO297 withdrawn

    5/28/2025legislature

  16. Cavanaugh, M. MO297 Recommit to the Transportation and Telecommunications Committee filed

    5/27/2025legislature

  17. Hallstrom AM1509 filed

    5/21/2025legislature

  18. Placed on Final Reading Second

    5/19/2025legislature

  19. Advanced to Enrollment and Review for Reengrossment

    5/14/2025legislature

  20. Ballard AM1464 adopted

    5/14/2025legislature

  21. Returned to Select File for specific amendment

    5/14/2025legislature

  22. Ballard AM1464 filed

    5/14/2025legislature

  23. Placed on Final Reading

    4/29/2025legislature

  24. Advanced to Enrollment and Review for Engrossment

    4/23/2025legislature

  25. Cavanaugh, M. MO198 withdrawn

    4/23/2025legislature

Bill Text

  • Introduced

    1/17/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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