# Nebraska LB398: 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

Nebraska LB398, 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, is a 109th Legislature 1st and 2nd Sessions legislature bill sponsored by Mike Moser; status signed, last action 2025-06-06 (Provisions/portions of LB568 amended into LB398 by AM842); PRIA reads it as touching household money (as of 2026-10-17).

- Canonical: https://policyrisk.com/state-bill/NE-LB398-109
- As of: 2026-10-17
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Nebraska LB398
- State: Nebraska
- Session: 109th Legislature 1st and 2nd Sessions
- Title: 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
- Status: signed
- Chamber: legislature
- Introduced: 2025-01-17
- Last action: 2025-06-06, Provisions/portions of LB568 amended into LB398 by AM842
- Sponsor: Mike Moser
- Cosponsors: 0
- Subjects: Transportation and Telecommunications Committee
- Touches household money: yes
- Roll calls: 10 (350 yes, 52 no in all)
- Economic provisions PRIA read: 36

## Summary

No summary available.

## Bill overview: provisions PRIA read

- Easier disability plates and parking access: benefit, medium. 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 pe…
- More options for veteran plates: benefit, medium. 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‑co…
- New driver license system and funding: benefit, medium. 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 Licen…
- Grants help veterans adopt pets: benefit, low. 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: benefit, low. 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. A…
- Former POW plates are free: benefit, low. 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: benefit, low. 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: benefit, low. 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…
- Stronger ID security at DMV offices: benefit, low. 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: benefit, low. 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…
- Veterans jobs fund source updated: benefit, low. 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.
- Stricter CDL medical checks and downgrades: cost, high. 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 var…
- Stronger CDL rules and higher fines: cost, high. 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 commercia…
- Higher fees for DMV records: cost, medium. 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 recor…
- Higher DMV record and data fees: cost, medium. 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 pro…
- More info needed to register vehicles: cost, low. 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…
- Trailer and RV fees updated: cost, low. 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. Trailer…
- Commercial fertilizer trailer plates cost $1: cost, low. 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: cost, low. 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 F…
- Faster referrals of carrier violations: cost, low. 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: cost, low. 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: cost, low. 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.
- 2025 federal motor rules now apply: mixed, medium. 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 20…
- Low-speed vehicle rules and safety updated: mixed, medium. 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 hav…
- Alternate plate fees, mailing, credits: mixed, low. 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 vehi…
- New disabled veteran plates and rules: mixed, low. 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 plat…
- Purple Heart plates and wheelchair option: mixed, low. 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‑own…
- Rules for historic year plates: mixed, low. 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: mixed, low. 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…
- New CDL medical and ID rules: mixed, low. 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…
- New CDL options for noncitizens: mixed, low. 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 ca…
- New specialty plates fund causes: mixed, low. 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, Prost…
- Limited use of license barcode data: mixed, low. 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…
- More military plate options and funding: mixed, low. 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: mixed, low. 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: mixed, low. 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…

## Sponsors and cosponsors

- Sponsor: Mike Moser, Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2025-05-28 | legislature | Final Reading | pass | 45 | 4 |   |
| 2025-05-28 | legislature | Select File | fail | 21 | 14 | 14 |
| 2025-05-14 | legislature | Vote | fail | 29 | 12 | 8 |
| 2025-05-14 | legislature | Select File | fail | 31 | 10 | 8 |
| 2025-04-09 | legislature | Vote | fail | 39 | 0 | 10 |
| 2025-04-09 | legislature | Vote | fail | 39 | 0 | 10 |
| 2025-04-09 | legislature | Vote | fail | 39 | 0 | 10 |
|   | legislature | Vote | fail | 29 | 12 | 8 |
|   | legislature | Vote | fail | 39 | 0 | 10 |
|   | legislature | Vote | fail | 39 | 0 | 10 |

## Actions (39)

- 2025-06-06: Provisions/portions of LB568 amended into LB398 by AM842 (legislature)
- 2025-06-06: Provisions/portions of LB563 amended into LB398 by AM842 (legislature)
- 2025-06-06: Provisions/portions of LB343 amended into LB398 by AM842 (legislature)
- 2025-06-06: Provisions/portions of LB175 amended into LB398 by AM765 (legislature)
- 2025-06-06: Provisions/portions of LB134 amended into LB398 by AM842 (legislature)
- 2025-06-06: Provisions/portions of LB114 amended into LB398 by AM842 (legislature)
- 2025-06-04: Approved by Governor on June 4, 2025 (legislature)
- 2025-05-29: Presented to Governor on May 29, 2025 (legislature)
- 2025-05-28: President/Speaker signed (legislature)
- 2025-05-28: Passed on Final Reading with Emergency Clause 45-4-0 (legislature)
- 2025-05-28: Dispensing of reading at large approved (legislature)
- 2025-05-28: Hallstrom AM1509 not considered (legislature)
- 2025-05-28: Motion to return to Select File failed (legislature)
- 2025-05-28: Motion to return to Select File pending (legislature)
- 2025-05-28: Cavanaugh, M. MO297 withdrawn (legislature)
- 2025-05-27: Cavanaugh, M. MO297 Recommit to the Transportation and Telecommunications Committee filed (legislature)
- 2025-05-21: Hallstrom AM1509 filed (legislature)
- 2025-05-19: Placed on Final Reading Second (legislature)
- 2025-05-14: Advanced to Enrollment and Review for Reengrossment (legislature)
- 2025-05-14: Ballard AM1464 adopted (legislature)
- 2025-05-14: Returned to Select File for specific amendment (legislature)
- 2025-05-14: Ballard AM1464 filed (legislature)
- 2025-04-29: Placed on Final Reading (legislature)
- 2025-04-23: Advanced to Enrollment and Review for Engrossment (legislature)
- 2025-04-23: Cavanaugh, M. MO198 withdrawn (legislature)
- 2025-04-23: Cavanaugh, M. MO198 Bracket until May 6, 2025 filed (legislature)
- 2025-04-23: Enrollment and Review ER46 adopted (legislature)
- 2025-04-22: Enrollment and Review ER46 filed (legislature)
- 2025-04-22: Placed on Select File with ER46 (legislature)
- 2025-04-09: Advanced to Enrollment and Review Initial (legislature)
- 2025-04-09: Hallstrom AM765 adopted (legislature)
- 2025-04-09: Moser AM842 adopted (legislature)
- 2025-04-02: Moser AM842 filed (legislature)
- 2025-03-28: Hallstrom AM765 filed (legislature)
- 2025-03-13: Transportation and Telecommunications priority bill (legislature)
- 2025-03-03: Placed on General File (legislature)
- 2025-01-27: Notice of hearing for February 03, 2025 (legislature)
- 2025-01-22: Referred to Transportation and Telecommunications Committee (legislature)
- 2025-01-17: Date of introduction (legislature)

## Bill text

- Introduced, 2025-01-17: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB398.pdf)
- Enrolled / Slip Law: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB398.pdf)
- Final / Enacted: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB398.pdf)

## Related bills

- LB468: Change provisions relating to inheritance taxes, change certain fee and tax provisions, and eliminate a sales tax exemption relating to data centers (failed)
- LB13: Require the Department of Health and Human Services to file a state plan amendment relating to child care (failed)
- LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis (failed)
- LB170: Eliminate the sales tax exemptions for candy and soft drinks (failed)
- LB646: Provide an exemption from brand inspections and change fees under the Livestock Brand Act (failed)
- LB714: Change provisions relating to motor vehicle taxes and fees (failed)

## Sources
- [Introduced (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB398.pdf)
- [Enrolled / Slip Law (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB398.pdf)
- [Final / Enacted (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB398.pdf)

## Related
- [LB468: Change provisions relating to inheritance taxes, change certain fee and tax pro…](https://policyrisk.com/state-bill/NE-LB468-109)
- [LB13: Require the Department of Health and Human Services to file a state plan amendm…](https://policyrisk.com/state-bill/NE-LB13-109)
- [LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide f…](https://policyrisk.com/state-bill/NE-LB677-109)
- [LB170: Eliminate the sales tax exemptions for candy and soft drinks](https://policyrisk.com/state-bill/NE-LB170-109)
- [LB646: Provide an exemption from brand inspections and change fees under the Livestock…](https://policyrisk.com/state-bill/NE-LB646-109)
- [LB714: Change provisions relating to motor vehicle taxes and fees](https://policyrisk.com/state-bill/NE-LB714-109)
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Source: PRIA, https://policyrisk.com/state-bill/NE-LB398-109 (as of 2026-10-17).
