Banking, Commerce and Insurance Committee

March 4, 2025

Committee Chair: Sen. Mike Jacobson | Bills Heard: 3 | Full Transcript (PDF)

LB40: Shell bill for potential banking or insurance legislation

Introduced by: Sen. Mike Jacobson | Testimony: 0 proponents, 0 opponents, 0 neutral | Read bill text (PDF)

Committee advances two shell bills with no action expected. Sen. Jacobson introduced LB40 and LB39 as placeholder vehicles for potential banking and insurance legislation that may arise during the 2025 session. Both bills received no testimony and no votes were taken. Why it matters: Shell bills are standard legislative practice, allowing committees to have ready vehicles if amendments or new provisions need floor consideration without requiring a new bill introduction. What they're saying: Jacobson said the bills would "just be here in case we need it" and indicated he would "waive" his closing statements on both measures. What's next: No action taken. Bills remain in committee pending potential future use.

LB39: Shell bill for potential banking or insurance legislation

Introduced by: Sen. Mike Jacobson | Testimony: 0 proponents, 0 opponents, 0 neutral | Read bill text (PDF)

LB111: Regulation of aftermarket and OEM parts in vehicle collision repairs

Introduced by: Sen. Dan Quick | Testimony: 4 proponents, 4 opponents, 0 neutral | Read bill text (PDF)

Collision repair bill pits consumer safety against insurance costs in heated committee debate. LB111 would require original equipment manufacturer (OEM) parts for vehicles three years old or newer, while allowing aftermarket parts for older vehicles with mandatory disclosure. The bill sparked sharp disagreement over whether modern vehicle sensors require OEM parts or whether aftermarket alternatives are equally safe. Why it matters: Nebraskans with newer vehicles could face higher insurance premiums or out-of-pocket costs if the bill passes, but proponents argue advanced safety technology demands OEM parts. The debate reflects a national tension between body shops and insurers over repair standards. What they're saying: Body shops argued aftermarket parts with different material thickness prevent blind spot sensors from calibrating, causing repair delays and ultimately costing more. "We're seeing a lot of vehicles that when we're calibrating them, they're not working," testified Ryan Clark of the Nebraska Auto Body Association. Insurers countered that aftermarket parts cost 25-50% less and are often made in the same factories as OEM parts. "There is no body of research showing aftermarket parts are inferior," said Tod Moore of the Auto Care Association. By the numbers: Aftermarket industry employs 16,000 Nebraskans and generates $3.6 billion in economic activity. Existing Department of Insurance regulations since 1988 already require aftermarket parts to meet quality standards with penalties up to $150,000. What's next: No vote was taken. Sen. Quick indicated willingness to amend the bill, particularly changing the criminal penalty to a civil one and clarifying that the requirement applies to aftermarket parts, not used salvage parts. The bill remains in committee.

Committee sentiment: Skeptical: Sen. George Dungan, Sen. Mike Jacobson, Sen. Brian Hardin Unclear: Sen. Dave Wordekemper, Sen. Merv Riepe, Sen. Brad von Gillern

Sentiment estimated from questions and comments — not stated positions.

Session Notes

Committee Chair Jacobson announced he had a 3:30 p.m. appointment and would leave before closing on LB111, turning the chair over to Vice Chair Hallstrom. The committee received two proponent letters, five opponent letters, and zero neutral letters on LB111. No written ADA testimony was received on any bills. The committee was planning to hold an executive session the following day.

Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.