Transportation and Telecommunications Committee
February 18, 2025
Committee Chair: Sen. Mike Moser | Bills Heard: 2 | Full Transcript (PDF)
LB667: Warranty compensation for franchise vehicle dealers
Introduced by: Sen. Tanya Storer | Testimony: 3 proponents, 1 opponents, 1 neutral | Read bill text (PDF)
Dealers seek to block manufacturers from using 'average' to slash warranty pay. LB667 would remove the word "reasonable" from Nebraska's franchise law, preventing manufacturers from claiming dealer rates are unreasonable simply because they exceed regional averages. The bill also excludes tires from markup calculations and allows dealers to appeal time allowances for repairs.
Why it matters: Nebraska's 155 new car dealers employ 7,000 people and perform all warranty work. When manufacturers underpay warranty repairs, dealers must raise prices on regular customers to stay afloat—a cost shift that hurts consumers and gives independent shops an unfair advantage.
What they're saying: - Dealers: Manufacturers have weaponized "reasonable" to mean "average," which mathematically prevents any dealer from ever getting a raise. We just want to be paid what we charge regular customers. - Ford: Removing "reasonable" entirely is an overcorrection. We need guardrails on the audit process and the ability to negotiate mutually acceptable rates. - Alliance of Manufacturers: We've agreed to the dealers' amendment. Ford was on the call but didn't object until 24 hours before the hearing.
By the numbers: Nebraska had 650 licensed dairies in 1999; now has 77. Dealers cite a GM letter denying a rate increase based on a 70-mile radius comparison—without disclosing what those other rates were.
What's next: No vote taken. Two amendments are in play: one agreed to by the Alliance and dealers, and Ford's late-stage proposal adding language on clock-running and negotiation rights. Committee members signaled openness to compromise if all parties can reach agreement.
Committee sentiment: Supportive: Sen. Tom Brandt, Sen. Wendy DeBoer, Sen. Carolyn Bosn Skeptical: Sen. Beau Ballard Unclear: Sen. Dunixi Guereca
Sentiment estimated from questions and comments — not stated positions.
LB561: Milk truck overweight exemption
Introduced by: Sen. Tom Brandt | Testimony: 2 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Nebraska dairy farmers seek overweight exemption to offset industry consolidation. LB561 would allow milk trucks to operate up to 15% over maximum weight when hauling raw milk from farms to processors. An amendment—developed with NDOT, the dairy association, and trucking industry—creates an annual permit system capping gross weight at 107,500 pounds while requiring compliance with federal bridge formulas.
Why it matters: Nebraska's dairy industry has collapsed from 650 farms in 1999 to 77 today. Milk trucks now must visit multiple small farms to fill a tanker and travel hundreds of miles to distant processors. The inefficiency costs the average Nebraska dairy roughly $20,000 annually—a burden that falls hardest on small producers who can't achieve economies of scale.
What they're saying: - Dairy Association: Consolidation of processors has forced milk to travel to Oklahoma, Illinois, and Minnesota. The permit system mirrors Iowa and South Dakota, letting our farmers compete fairly. - NDOT: The original bill would cost us $2.7 million yearly in road damage. The amendment fixes that by requiring proper axle weight distribution and providing a map of bridges trucks can't cross. - Trucking Association: This reduces the number of trucks on roads while supporting a critical supply chain. Trucking is Nebraska's third-largest employer.
By the numbers: Nebraska produces 18 truckloads of milk daily more than it can process in-state. The amendment allows a 12,500-pound increase in gross weight (from ~95,000 to 107,500 pounds). Permit cost: $50 annually.
What's next: No vote taken. Amendment language is pending from Bill Drafters. Once finalized, NDOT indicated it would be neutral on the bill, and no opposition is anticipated.
Committee sentiment: Supportive: Sen. Wendy DeBoer, Sen. John Fredrickson, Sen. Tanya Storer
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The committee also heard four gubernatorial appointments to the Underground Excavation Safety Committee: Brandon Jones (contractor, western Nebraska), Jeffrey Grady (demolition/earthwork contractor, Omaha area), Trevor Roth (electric utility manager, York), James Saville (Google Fiber/Cox Communications, telecommunications), and Aaron Krebs (telecommunications engineer, Plattsmouth). All five nominees were questioned by committee members regarding their qualifications, experience with the 8-1-1 locating system, and views on excavation safety. No votes were taken on the appointments. The committee received no written comments on LB667 and one proponent contact on LB561 (from NDOT, who testified in neutral position). Two senators—John Fredrickson (District 20) and Beau Ballard (District 21)—joined the committee mid-hearing after other committee business.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.