DMV cleanup bill draws debate over choice color plates and where proceeds should go

Senator John Frederickson introduced LB972 as a DMV cleanup and harmonization bill that aims to reduce fraud, improve customer service and modernize processes. The bill would, among other items, allow a commercial driver's license held by an active duty military member to remain valid until 60 days after discharge, remove redundant testing for certain ignition interlock permit holders, and require insurers to file SR‑22 forms electronically after July 2027.

Rhonda Lamb, director of the Nebraska Department of Motor Vehicles, told the committee that several provisions target fraud (requiring transporter applicants to be registered to do business in Nebraska, requiring proof of ownership for untitled trailers and authorizing an in‑transit tag pilot) and that the bill would permit choice color passenger plates beginning Jan. 1, 2027. Lamb estimated the proposed plate fee would be $70 for alphanumeric plates and $100 for message plates and said additional fee revenue would be credited to the DMV cash fund.

Committee members probed operational impacts: Senator DeBoer asked whether electronic SR‑22 filing eliminates the need for drivers to carry physical proof of insurance; Lamb said insured drivers still must carry proof when stopped but insurers will be able to file directly with the DMV to avoid convenience fees. The director also explained that the in‑transit pilot would register an identifier so in‑transit tags could be verified and dealers could be reminded to complete registration within 30 days.

A prolonged stakeholder exchange focused on section 13 (choice color plates). Developmental disability (DD) providers and advocacy groups — including Hands of Heartland, Lancaster County/ApACE, and statewide provider associations — urged the committee to direct proceeds from any new specialty or color plates to a DD provider capital and equipment maintenance cash fund, pointing to Colorado’s model (which channels additional plate fees to grants supporting DD services). Opponents and the DMV noted that LB972, as drafted, credits fees to the DMV cash fund; some witnesses pointed to LB1092 (a separate bill) as an alternative that earmarks revenue for DD grants.

Senator Frederickson closed by saying he was open to amendments and cautioned about leaving plate revenue destinations unspecified; the committee did not vote at the hearing.