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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1223
Introduced by Hunt, 8.
Read first time January 21, 2026
Committee: Transportation and Telecommunications
A BILL FOR AN ACT relating to motor vehicles; to amend sections 60-6,221,1
60-6,224, 60-1411.03, 60-1411.04, and 60-1437, Reissue Revised2
Statutes of Nebraska; to change headlight requirements under the3
Nebraska Rules of the Road; to prohibit the sale and distribution of4
certain motor vehicles by motor vehicle dealers, manufacturers, and5
distributors under the Motor Vehicle Industry Regulation Act; to6
harmonize provisions; and to repeal the original sections.7
Be it enacted by the people of the State of Nebraska,8
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Section 1. Section 60-6,221, Reissue Revised Statutes of Nebraska,1
is amended to read: 2
60-6,221 (1) The headlights of motor vehicles shall be so3
constructed, arranged, and adjusted that, except as provided in4
subsection (2) of this section, they will at all times mentioned in5
section 60-6,219 produce a driving light sufficient to render clearly6
discernible a person two hundred feet ahead, but the headlights shall not7
project a glaring or dazzling light to persons in front of such8
headlights. 9
(2) Headlights shall be deemed to comply with the provisions10
prohibiting glaring and dazzling lights if: 11
(a) None none of the main bright portion of the headlight beam rises12
above a horizontal plane passing through the light centers parallel to13
the level road upon which the loaded vehicle stands and in no case higher14
than forty-two inches, seventy-five feet ahead of the vehicle; .15
(b) The intensity of light emitted by the headlight does not exceed16
three thousand lumens according to the physical and photometry test17
procedures provided in 49 C.F.R. 571.108, as such regulation existed on18
January 1, 2026; 19
(c) The color temperature of light emitted by the headlight does not20
exceed six thousand kelvin and the color of such light is white, yellow,21
or amber. This subdivision (c) shall not apply to authorized emergency22
vehicles; 23
(d) The headlight is mounted on the motor vehicle at a height of24
fifty-four inches or less above the ground; 25
(e) The headlight, or the fixture for the headlight, has not been26
substantially altered from the design or performance of the headlight or27
fixture that was originally installed by the manufacturer of the motor28
vehicle; and 29
(f) The headlight is compliant with the United States Department of30
Transportation's Federal Motor Vehicle Safety Standards, 49 C.F.R. part31
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571, for lamps, reflective devices, and associated equipment, as such1
standards existed on January 1, 2026. 2
Sec. 2. Section 60-6,224, Reissue Revised Statutes of Nebraska, is3
amended to read: 4
60-6,224 Notwithstanding any other provision of the Nebraska Rules5
of the Road: 6
(1) Whenever any person operating a motor vehicle on any highway in7
this state comes within one thousand feet of meets another person8
operating a motor vehicle, proceeding in the opposite direction and9
equipped with headlights constructed and adjusted to project glaring or10
dazzling light to persons in front of such headlights, he or she upon11
signal of either person, the other shall dim the headlights of his or her12
motor vehicle or tilt the beams of glaring or dazzling light projecting13
therefrom downward so as not to blind or confuse the vision of the14
operator in front of such headlights; and 15
(2) Whenever any person operating a motor vehicle on any highway in16
this state follows another vehicle within four two hundred feet to the17
rear or is preparing to overtake another motor vehicle by passing, he or18
she shall dim the headlights of his or her motor vehicle or tilt the19
beams of glaring or dazzling light projecting from such headlights20
therefrom downward. 21
(3) Any person who violates any provision of this section shall be22
guilty of a Class V misdemeanor. 23
Sec. 3. Section 60-1411.03, Reissue Revised Statutes of Nebraska, is24
amended to read: 25
60-1411.03 It shall be unlawful for any licensee or motor vehicle26
dealer to engage, directly or indirectly, in the following acts:27
(1) To advertise and offer any year, make, engine size, model, type,28
equipment, price, trade-in allowance, or terms or make other claims or29
conditions pertaining to the sale, leasing, or rental of motor vehicles,30
motorcycles, and trailers which are not truthful and clearly set forth;31
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(2) To advertise for sale, lease, or rental a specific motor1
vehicle, motorcycle, or trailer which is not in the possession of the2
dealer, owner, or advertiser and willingly shown and sold, as advertised,3
illustrated, or described, at the advertised price and terms, at the4
advertised address. Unless otherwise specified, a motor vehicle,5
motorcycle, or trailer advertised for sale shall be in operable condition6
and, on request, the advertiser thereof shall show records to7
substantiate an advertised offer; 8
(3) To advertise a new motor vehicle, motorcycle, or trailer at a9
price which does not include standard equipment with which it is fitted10
or is ordinarily fitted, without disclosing such fact, or eliminating any11
such equipment for the purpose of advertising a low price;12
(4) To advertise (a) that the advertiser's prices are always or13
generally lower than competitive prices and not met or equalled by others14
or that the advertiser always or generally undersells competitors, (b)15
that the advertiser's prices are always or generally the lowest or that16
no other dealer has lower prices, (c) that the advertiser is never17
undersold, or (d) that no other advertiser or dealer will have a lower18
price; 19
(5) To advertise and make statements such as, Write Your Own Deal,20
Name Your Own Price, or Name Your Own Monthly Payments and other21
statements of a similar nature; 22
(6) To advertise by making disparaging comparisons with competitors'23
services, quality, price, products, or business methods;24
(7) To advertise by making the layout, headlines, illustrations, and25
type size of an advertisement so as to convey or permit an erroneous26
impression as to which motor vehicle, motorcycle, or trailer or motor27
vehicles, motorcycles, or trailers are offered at featured prices. No28
advertised offer, expression, or display of price, terms, downpayment,29
trade-in allowance, cash difference, or savings shall be misleading by30
itself, and any qualification to such offer, expression, or display shall31
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be clearly and conspicuously set forth in comparative type size and1
style, location, and layout to prevent deception; 2
(8) To advertise the price of a motor vehicle, motorcycle, or3
trailer without including all charges which the customer must pay for the4
motor vehicle, motorcycle, or trailer, excepting state and local taxes5
and license, title, and other fees. It shall be unlawful to advertise6
prices described as unpaid balance unless they are the full cash selling7
price and to advertise price which is not the full selling price even8
though qualified with expressions such as with trade, with acceptable9
trade, or other similar words; 10
(9) To advertise as at cost, below cost, below invoice, or11
wholesale, unless the term used is strictly construed that the word cost12
as used in this subdivision or in a similar meaning is the actual price13
paid by the advertiser to the manufacturer for the motor vehicle,14
motorcycle, or trailer so advertised; 15
(10) To advertise claims that Everybody Financed, No Credit16
Rejected, or We Finance Anyone and other similar affirmative statements;17
(11) To advertise a specific trade-in amount or range of amounts;18
(12) To advertise the words Finance, Loan, or Discounts or others of19
similar import in the firm name or trade style of a person offering motor20
vehicles, motorcycles, and trailers for sale unless such person is21
actually engaged in the finance business and offering only bona fide22
repossessed motor vehicles, motorcycles, and trailers. It shall be23
unlawful to use the word Repossessed in the name or trade style of a firm24
in the advertising of motor vehicles, motorcycles, and trailers sold by25
such a company unless they are bona fide repossessions sold for unpaid26
balances due only. Advertisers offering repossessed automobiles for sale27
shall be able to offer proof of repossession; 28
(13) To advertise the term Authorized Dealer in any way as to29
mislead as to the make or makes of motor vehicles, motorcycles, or30
trailers for which a dealer is franchised to sell at retail;31
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(14) To advertise or sell new motor vehicles, motorcycles, and1
trailers by any person not enfranchised by the manufacturer of the motor2
vehicle, motorcycle, or trailer offered without disclosing the fact in3
each advertisement which includes the motor vehicle, motorcycle, or4
trailer, and in writing in the lease or purchase agreement that the5
licensee or motor vehicle dealer is not enfranchised by the manufacturer6
for service under factory warranty provisions. No person shall transfer7
ownership of a motor vehicle by reassignment on a manufacturer's8
statement of origin unless the person is enfranchised to do so by the9
manufacturer of the motor vehicle; 10
(15) To advertise used motor vehicles, motorcycles, or trailers so11
as to create the impression that they are new. Used motor vehicles,12
motorcycles, and trailers of the current and preceding model year shall13
be clearly identified as Used, Executive Driven, Demonstrator, or Driver14
Training, and lease cars, taxicabs, fleet vehicles, police motor15
vehicles, or motorcycles as may be the case and descriptions such as Low16
Mileage or Slightly Driven may also be applied only when correct. The17
terms demonstrator's, executive's, and official's motor vehicles,18
motorcycles, or trailers shall not be used unless (a) they have never19
been sold to a member of the public, (b) such terms describe motor20
vehicles, motorcycles, or trailers used by new motor vehicle, motorcycle,21
or trailer dealers or their employees for demonstrating performance22
ability, and (c) such vehicles are advertised for sale as such only by an23
authorized dealer in the same make of motor vehicle, motorcycle, or24
trailer. Phrases such as Last of the Remaining, Closeout, or Final25
Clearance and others of similar import shall not be used in advertising26
used motor vehicles, motorcycles, and trailers so as to convey the27
impression that the motor vehicles, motorcycles, and trailers offered are28
holdover new motor vehicles, motorcycles, and trailers. When new and used29
motor vehicles, motorcycles, and trailers of the current and preceding30
model year are offered in the same advertisement, such offers shall be31
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clearly separated by description, layout, and art treatment;1
(16) To advertise executives' or officials' motor vehicles,2
motorcycles, or trailers unless they have been used exclusively by the3
personnel or executive of the motor vehicle, motorcycle, or trailer4
manufacturer or by an executive of any authorized dealer of the same make5
thereof and such motor vehicles, motorcycles, and trailers have not been6
sold to a member of the public prior to the appearance of the7
advertisement; 8
(17) To advertise motor vehicles, motorcycles, and trailers owned by9
or in the possession of dealers without the name of the dealership or in10
any other manner so as to convey the impression that they are being11
offered by private parties; 12
(18) To advertise the term wholesale in connection with the retail13
offering of used motor vehicles, motorcycles, and trailers;14
(19) To advertise the terms auction or auction special and other15
terms of similar import unless such terms are used in connection with16
motor vehicles, motorcycles, and trailers offered or sold at a bona fide17
auction to the highest bidder and under such other specific conditions as18
may be required in the Motor Vehicle Industry Regulation Act;19
(20) To advertise free driving trial unless it means a trial without20
obligation of any kind and that the motor vehicle, motorcycle, or trailer21
may be returned in the period specified without obligation or cost. A22
driving trial advertised on a money back basis or with privilege of23
exchange or applying money paid on another motor vehicle, motorcycle, or24
trailer shall be so explained. Terms and conditions of driving trials,25
free or otherwise, shall be set forth in writing for the customer;26
(21) To advertise (a) the term Manufacturer's Warranty unless it is27
used in advertising only in reference to cars covered by a bona fide28
factory warranty for that particular make of motor vehicle, motorcycle,29
or trailer. In the event only a portion of such warranty is remaining,30
then reference to a warranty may be used only if stated that that unused31
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portion of the warranty is still in effect, (b) the term New Car1
Guarantee except in connection with new motor vehicles, motorcycles, and2
trailers, and (c) the terms Ninety-day Warranty, Fifty-fifty Guarantee,3
Three-hundred-mile Guarantee, and Six-month Warranty, unless the major4
terms and exclusions are sufficiently described in the advertisement;5
(22) To advertise representations inconsistent with or contrary to6
the fact that a motor vehicle, motorcycle, or trailer is sold as is and7
without a guarantee. The customer contract shall clearly indicate when a8
car will be sold with a guarantee and what that guarantee is and9
similarly shall clearly indicate when a car is sold as is and without a10
guarantee; and 11
(23) To advertise or to make any statement, declaration, or12
representation in any advertisement that cannot be substantiated in fact,13
and the burden of proof of the factual basis for the statement,14
declaration, or representation shall be on the licensee or motor vehicle15
dealer and not on the board; and . 16
(24) To sell any motor vehicle that is equipped with headlights that17
are in violation of section 60-6,221. 18
Sec. 4. Section 60-1411.04, Reissue Revised Statutes of Nebraska, is19
amended to read: 20
60-1411.04 A violation The use, employment, or publication of21
advertising by any licensee or motor vehicle dealer of which does not22
comply with section 60-1411.03 is hereby declared to be an unlawful act,23
and any person violating such section shall be guilty of a Class V24
misdemeanor. 25
Sec. 5. Section 60-1437, Reissue Revised Statutes of Nebraska, is26
amended to read: 27
60-1437 In addition to the restrictions imposed by section 60-1436,28
a manufacturer or distributor shall not: 29
(1) Fail to deliver new motor vehicles or new motor vehicle parts or30
accessories within a reasonable time and in reasonable quantities31
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relative to the new motor vehicle dealer's market area and facilities,1
unless the failure is caused by acts or occurrences beyond the control of2
the manufacturer or distributor or unless the failure results from an3
order by the new motor vehicle dealer in excess of quantities reasonably4
and fairly allocated by the manufacturer or distributor;5
(2) Refuse to disclose to a new motor vehicle dealer the method and6
manner of distribution of new motor vehicles by the manufacturer or7
distributor or, if a line-make is allocated among new motor vehicle8
dealers, refuse to disclose to any new motor vehicle dealer that handles9
the same line-make the system of allocation, including, but not limited10
to, a complete breakdown by model, and a concise listing of dealerships11
with an explanation of the derivation of the allocation system, including12
its mathematical formula in a clear and comprehensible form;13
(3) Refuse to disclose to a new motor vehicle dealer the total14
number of new motor vehicles of a given model which the manufacturer or15
distributor has sold during the current model year within the dealer's16
marketing district, zone, or region, whichever geographical area is the17
smallest; 18
(4) Increase the price of any new motor vehicle which the new motor19
vehicle dealer had ordered and delivered to the same retail consumer for20
whom the vehicle was ordered, if the order was made prior to the dealer's21
receipt of the written official price increase notification. A sales22
contract signed by a private retail consumer and binding on the dealer23
shall constitute evidence of such order. In the event of manufacturer or24
distributor price reduction or cash rebate, the amount of any reduction25
or rebate received by a dealer shall be passed on to the private retail26
consumer by the dealer. Any price reduction in excess of five dollars27
shall apply to all vehicles in the dealer's inventory which were subject28
to the price reduction. A price difference applicable to a new model or29
series of motor vehicles at the time of the introduction of the new model30
or series shall not be considered a price increase or price decrease.31
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This subdivision shall not apply to price changes caused by the1
following: 2
(a) The addition to a motor vehicle of required or optional3
equipment pursuant to state or federal law; 4
(b) In the case of foreign-made vehicles or components, revaluation5
of the United States dollar; or 6
(c) Any increase in transportation charges due to an increase in7
rates charged by a common carrier or other transporter;8
(5) Fail or refuse to sell or offer to sell to all franchised new9
motor vehicle dealers in a line-make every new motor vehicle sold or10
offered for sale to any franchised new motor vehicle dealer of the same11
line-make. However, the failure to deliver any such new motor vehicle12
shall not be considered a violation of this section if the failure is due13
to a lack of manufacturing capacity or to a strike or labor difficulty, a14
shortage of materials, a freight embargo, or any other cause over which15
the franchisor has no control. A manufacturer or distributor shall not16
require that any of its new motor vehicle dealers located in this state17
pay any extra fee, purchase unreasonable or unnecessary quantities of18
advertising displays or other materials, or remodel, renovate, or19
recondition the new motor vehicle dealer's existing facilities in order20
to receive any particular model or series of vehicles manufactured or21
distributed by the manufacturer for which the dealers have a valid22
franchise. Notwithstanding the provisions of this subdivision, nothing23
contained in this section shall be deemed to prohibit or prevent a24
manufacturer from requiring that its franchised dealers located in this25
state purchase special tools or equipment, stock reasonable quantities of26
certain parts, or participate in training programs which are reasonably27
necessary for those dealers to sell or service any model or series of new28
motor vehicles. This subdivision shall not apply to manufacturers of29
recreational vehicles; 30
(6) Fail to offer dealers of a specific line-make a new franchise31
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agreement containing substantially similar terms and conditions for sales1
of the line-make if the ownership of the manufacturer or distributor2
changes or there is a change in the plan or system of distribution;3
(7) Take an adverse action against a dealer because the dealer sells4
or leases a motor vehicle that is later exported to a location outside5
the United States. A franchise provision that allows a manufacturer or6
distributor to take adverse action against a dealer because the dealer7
sells or leases a motor vehicle that is later exported to a location8
outside the United States is enforceable only if, at the time of the9
original sale or lease, the dealer knew or reasonably should have known10
that the motor vehicle would be exported to a location outside the United11
States. A dealer is presumed to have no knowledge that a motor vehicle12
the dealer sells or leases will be exported to a location outside the13
United States if, under the laws of a state of the United States (a) the14
motor vehicle is titled, (b) the motor vehicle is registered, and (c)15
applicable state and local taxes are paid for the motor vehicle. Such16
presumption may be rebutted by direct, clear, and convincing evidence17
that the dealer knew or reasonably should have known at the time of the18
original sale or lease that the motor vehicle would be exported to a19
location outside the United States. Except as otherwise permitted by20
subdivision (7) of this section, a franchise provision that allows a21
manufacturer or distributor to take adverse action against a dealer22
because the dealer sells or leases a motor vehicle that is later exported23
to a location outside the United States is void and unenforceable;24
(8) Discriminate against a dealer holding a franchise for a line-25
make of the manufacturer or distributor in favor of other dealers of the26
same line-make in this state by: 27
(a) Selling or offering to sell a new motor vehicle to a dealer at a28
lower actual price, including the price for vehicle transportation, than29
the actual price at which the same model similarly equipped is offered to30
or is available to another dealer in this state during a similar time31
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period; or 1
(b) Using a promotional program or device or an incentive, payment,2
or other benefit, whether paid at the time of the sale of the new motor3
vehicle to the dealer or later, that results in the sale or offer to sell4
a new motor vehicle to a dealer at a lower price, including the price for5
vehicle transportation, than the price at which the same model similarly6
equipped is offered or is available to another dealer in this state7
during a similar time period. This subdivision shall not prohibit a8
promotional or incentive program that is functionally available to9
competing dealers of the same line-make in this state on substantially10
comparable terms; 11
(9) Refuse to pay a new motor vehicle dealer for sales incentives,12
service incentives, rebates, or other forms of incentive compensation13
within thirty days after their approval by the manufacturer or14
distributor. The manufacturer or distributor shall either approve or15
disapprove each claim by the dealer within thirty days after receipt of16
the claim in a proper form generally used by the manufacturer or17
distributor. Any claims not specifically disapproved in writing within18
thirty days after receipt shall be considered to be approved;19
(10) Perform an audit to confirm payment of a sales incentive,20
service incentive, rebate, or other form of incentive compensation more21
than twelve months after the date of payment of the claim or twelve22
months after the end of the incentive program by the new motor vehicle23
dealer unless the claim is fraudulent; 24
(11) Reduce the amount to be paid to a new motor vehicle dealer for25
a sales incentive, service incentive, rebate, or other form of incentive26
compensation or charge back a new motor vehicle dealer subsequent to the27
payment of the claim for a sales incentive, service incentive, rebate, or28
other form of incentive compensation unless the manufacturer or29
distributor shows that the claim lacks required documentation or is30
alleged to be false, fraudulent, or based on a misrepresentation.31
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A manufacturer or distributor may not deny a claim based solely on a1
new motor vehicle dealer's incidental failure to comply with a specific2
claim processing requirement, such as a clerical error, that does not put3
into question the legitimacy of the claim. No reduction in the amount to4
be paid to the new motor vehicle dealer and no charge back subsequent to5
the payment of a claim may be made until the new motor vehicle dealer has6
had notice and an opportunity to correct any deficiency and resubmit the7
claim and to participate in all franchisor internal appeal processes as8
well as all available legal processes. If a charge back is the subject of9
adjudication, internal appeal, mediation, or arbitration, no charge back10
shall be made until, in the case of an adjudication or legal action, a11
final order has been issued. 12
A claim for reimbursement by the manufacturer or distributor of sums13
due following an audit must be presented to the dealer within ninety days14
after completion of the audit of the item subject to the claim. A15
manufacturer or distributor may not setoff or otherwise take control over16
funds owned or under the control of the new motor vehicle dealer or which17
are in an account designated for the new motor vehicle dealer when such18
action is based upon the findings of an audit or other claim with respect19
thereto until a final decision is issued with respect to any challenge or20
appeal by either party of any such audit or claim.21
Any ambiguity or inconsistency in submission guidelines shall be22
construed against the manufacturer or distributor;23
(12) Make any express or implied statement or representation24
directly or indirectly that the dealer is under any obligation whatsoever25
to offer to sell or sell any extended service contract, extended26
maintenance plan, gap policy, gap waiver, or other aftermarket product or27
service offered, sold, backed by, or sponsored by the manufacturer or28
distributor or to sell, assign, or transfer any of the dealer's retail29
sales contracts or leases in this state on motor vehicles manufactured or30
sold by the manufacturer or distributor to a finance company or class of31
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finance companies, leasing company or class of leasing companies, or1
other specified person, because of any relationship or affiliation2
between the manufacturer or distributor and the finance company or3
companies, leasing company or leasing companies, or the specified person4
or persons; or 5
(13) Prohibit a franchisee from acquiring a line-make of new motor6
vehicles solely because the franchisee owns or operates a franchise of7
the same line-make in a contiguous market; or . 8
(14) Sell or distribute any motor vehicle that is equipped with9
headlights that are in violation of section 60-6,221.10
Any such statements, threats, promises, acts, contracts, or offers11
of contracts, when their effect may be to lessen or eliminate competition12
or tend to create a monopoly, are declared unfair trade practices and13
unfair methods of competition and are prohibited. 14
Sec. 6. Original sections 60-6,221, 60-6,224, 60-1411.03,15
60-1411.04, and 60-1437, Reissue Revised Statutes of Nebraska, are16
repealed. 17
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