Committee hears LB111 to require OEM parts, disclosures for newer vehicles

Senator Dan Quick, a Lincoln-area member of the Nebraska Legislature, introduced LB111 at a public hearing before the Banking, Commerce and Insurance Committee, proposing that insurers be required to use original equipment manufacturer (OEM) parts when repairing vehicles that are 36 months old or newer and to provide conspicuous written notice to insureds when non‑OEM parts would be used.

The bill’s sponsor and multiple collision‑repair shop owners told the committee they view LB111 as a consumer‑protection measure to keep advanced safety systems functioning after a crash. Trade groups and insurers opposed the bill, arguing it would raise repair and insurance costs, reduce consumer choice and duplicate existing Department of Insurance rules.

LB111 would set a 36‑month threshold for mandatory OEM parts in collision repairs and require insurers to disclose in writing when an estimate relies on aftermarket parts. The introducer acknowledged the bill currently contains a criminal penalty—section 8 describes a class 1 misdemeanor for violations—and said he is open to replacing that with a civil enforcement mechanism if the committee prefers.

Supporters told the committee modern vehicles…