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LEGISLATURE OF NEBRASKA
ONE HUNDRED SIXTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 424
Introduced by Quick, 35; Blood, 3; Bolz, 29; Brandt, 32; Cavanaugh, 6;
Chambers, 11; Crawford, 45; Dorn, 30; Hansen, M., 26;
Hilkemann, 4; Howard, 9; Hunt, 8; Kolowski, 31; Kolterman,
24; Lathrop, 12; Lindstrom, 18; McCollister, 20; McDonnell,
5; Pansing Brooks, 28; Stinner, 48; Vargas, 7; Walz, 15;
Williams, 36; Wishart, 27.
Read first time January 18, 2019
Committee: Urban Affairs
1 A BILL FOR AN ACT relating to municipalities; to amend sections
2 77-1736.06, 77-1807, and 77-1810, Reissue Revised Statutes of
3 Nebraska, and sections 19-5201, 19-5202, 19-5203, 19-5204, 19-5205,
4 19-5206, 19-5207, 19-5208, 19-5209, 19-5210, 19-5211, 19-5212,
5 19-5213, 19-5214, 19-5215, 19-5216, 19-5217, and 19-5218, Revised
6 Statutes Cumulative Supplement, 2018; to transfer and change
7 provisions of the Nebraska Municipal Land Bank Act; to harmonize
8 provisions; to provide a duty for the Revisor of Statutes; and to
9 repeal the original sections.
10 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 19-5201, Revised Statutes Cumulative Supplement,
2 2018, is amended to read:
3 19-5201 Sections 1 to 18 of this act 19-5201 to 19-5218 shall be
4 known and may be cited as the Nebraska Municipal Land Bank Act.
5 Sec. 2. Section 19-5202, Revised Statutes Cumulative Supplement,
6 2018, is amended to read:
7 19-5202 The Legislature finds and declares as follows:
8 (1) Nebraska's municipalities are important to the social and
9 economic vitality of the state, and many municipalities are struggling to
10 cope with vacant, abandoned, and tax-delinquent properties;
11 (2) Vacant, abandoned, and tax-delinquent properties represent lost
12 revenue to municipalities and large costs associated with demolition,
13 safety hazards, and the deterioration of neighborhoods;
14 (3) There is an overriding public need to confront the problems
15 caused by vacant, abandoned, and tax-delinquent properties through the
16 creation of new tools for municipalities to use to turn vacant spaces
17 into vibrant places; and
18 (4) Land banks are one of the tools that can be utilized by
19 municipalities to facilitate the return of vacant, abandoned, and tax-
20 delinquent properties to productive use.
21 Sec. 3. Section 19-5203, Revised Statutes Cumulative Supplement,
22 2018, is amended to read:
23 19-5203 For purposes of the Nebraska Municipal Land Bank Act:
24 (1) Board means the board of directors of a land bank;
25 (2) Chief executive officer means the mayor, city manager, or
26 chairperson of the board of trustees of a municipality;
27 (3) (2) Land bank means a land bank established in accordance with
28 the act;
29 (4) (3) Municipality means any city or village of this state that is
30 located (a) within a county in which a city of the metropolitan class is
31 located or (b) within a county in which at least three cities of the
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1 first class are located; and
2 (5) (4) Real property means lands, lands under water, structures,
3 and any and all easements, air rights, franchises, and incorporeal
4 hereditaments and every estate and right therein, legal and equitable,
5 including terms for years and liens by way of judgment, mortgage, or
6 otherwise, and any and all fixtures and improvements located thereon.
7 Sec. 4. Section 19-5204, Revised Statutes Cumulative Supplement,
8 2018, is amended to read:
9 19-5204 (1) A single municipality may elect to create a land bank if
10 the municipality is a city of the metropolitan class. Such municipality
11 shall create the land bank by the adoption of an ordinance which
12 specifies the following:
13 (a) The name of the land bank;
14 (b) The initial individuals to serve as members of the board and the
15 length of terms for which they are to serve; and
16 (c) The qualifications and terms of office of members of the board.
17 (2) Two or more municipalities may elect to enter into an agreement
18 pursuant to the Interlocal Cooperation Act to create a single land bank
19 to act on behalf of such municipalities, which agreement shall contain
20 the information required by subsection (1) of this section.
21 (3) A municipality may elect to join an existing land bank by
22 entering into an agreement pursuant to the Interlocal Cooperation Act
23 with a city of the metropolitan class that has created a land bank
24 pursuant to subsection (1) of this section or by joining an existing
25 agreement pursuant to the Interlocal Cooperation Act with the
26 municipalities that formed a land bank pursuant to subsection (2) of this
27 section. Agreements entered into or joined under this subsection shall
28 contain the information required by subsection (1) of this section.
29 (4) (3) Each land bank created pursuant to the Nebraska Municipal
30 Land Bank Act shall be deemed to be a public corporation acting in a
31 governmental capacity and a political subdivision of the state and shall
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1 have permanent and perpetual duration until terminated and dissolved in
2 accordance with section 14 of this act 19-5214.
3 (5) (4) The primary goal of any land bank shall be to facilitate the
4 return of vacant, abandoned, and tax-delinquent properties to productive
5 use.
6 Sec. 5. Section 19-5205, Revised Statutes Cumulative Supplement,
7 2018, is amended to read:
8 19-5205 (1) If a land bank is created by a single municipality
9 pursuant to subsection (1) of section 4 of this act, the board of such
10 land bank shall meet the following requirements:
11 (a) The board shall consist of:
12 (i) Seven voting members appointed by the chief executive officer
13 mayor of the municipality that created the land bank and confirmed by a
14 two-thirds vote of the governing body of such municipality; and
15 (ii) The following nonvoting members:
16 (A) The planning director of the municipality that created the land
17 bank or his or her designee or, if there is no planning director, a
18 person designated by the governing body of the municipality that created
19 the land bank , as a nonvoting, ex officio member;
20 (B) (iii) One member of the governing body of the municipality that
21 created the land bank, appointed by such governing body, as a nonvoting,
22 ex officio member; and
23 (C) (iv) Such other nonvoting members as are appointed by the chief
24 executive officer mayor of the municipality that created the land bank
25 and confirmed by a two-thirds vote of the governing body of such
26 municipality;
27 (b) The seven voting members of the board shall be residents of the
28 municipality that created the land bank;
29 (c) If the governing body of the municipality creating the land bank
30 has any of its members elected by district or ward, then at least one
31 voting member of the board shall be appointed from each such district or
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1 ward. Such voting members shall represent, to the greatest extent
2 possible, the racial and ethnic diversity of the municipality creating
3 the land bank;
4 (d) The seven voting members of the board shall have, collectively,
5 verifiable skills, expertise, and knowledge in market-rate and affordable
6 residential, commercial, industrial, and mixed-use real estate
7 development, financing, law, purchasing and sales, asset management,
8 economic and community development, and the acquisition of tax sale
9 certificates;
10 (e) The seven voting members of the board shall include:
11 (i) At least one member representing a chamber of commerce;
12 (ii) At least one member with experience in banking;
13 (iii) At least one member with experience in real estate
14 development;
15 (iv) At least one member with experience as a realtor;
16 (v) At least one member with experience in nonprofit or affordable
17 housing; and
18 (vi) At least one member with experience in large-scale residential
19 or commercial property rental; and
20 (f) A single voting member may satisfy more than one of the
21 requirements provided in subdivision (1)(e) of this section if he or she
22 has the required qualifications. It is not necessary that there be a
23 different member to fulfill each such requirement.
24 (2) If a land bank is created by more than one municipality pursuant
25 to an agreement under the Interlocal Cooperation Act as described in
26 subsection (2) or (3) of section 4 of this act, the board of such land
27 bank shall meet the following requirements:
28 (a) The board shall consist of:
29 (i) An odd number of voting members, totaling at least seven,
30 appointed by the chief executive officers mayors of the municipalities
31 that created the land bank, as mutually agreed to by such chief executive
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1 officers mayors, and confirmed by a two-thirds vote of the governing body
2 of each municipality that created the land bank; and
3 (ii) The following nonvoting members:
4 (A) The planning director of each municipality that created the land
5 bank or his or her designee or, if there is no planning director for any
6 municipality that created the land bank, a person designated by the
7 governing body of such municipality , as nonvoting, ex officio members;
8 (B) (iii) One member of the governing body of each municipality that
9 created the land bank, appointed by the governing body on which such
10 member serves, as nonvoting, ex officio members; and
11 (C) (iv) Such other nonvoting members as are appointed by the chief
12 executive officers mayors of the municipalities that created the land
13 bank, as mutually agreed to by such chief executive officers, and
14 confirmed by a two-thirds vote of the governing body of each municipality
15 that created the land bank mayors;
16 (b) Each voting member of the board shall be a resident of one of
17 the municipalities that created the land bank, with at least one voting
18 member appointed from each such municipality;
19 (c) If the governing body of the largest municipality creating the
20 land bank has any of its members elected by district or ward, then at
21 least one voting member of the board shall be appointed from each such
22 district or ward. Such voting members shall represent, to the greatest
23 extent possible, the racial and ethnic diversity of the largest
24 municipality creating the land bank;
25 (c) (d) The voting members of the board shall have, collectively,
26 verifiable skills, expertise, and knowledge in market-rate and affordable
27 residential, commercial, industrial, and mixed-use real estate
28 development, financing, law, purchasing and sales, asset management,
29 economic and community development, and the acquisition of tax sale
30 certificates;
31 (d) (e) The voting members of the board shall include:
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1 (i) At least one member representing a chamber of commerce;
2 (ii) At least one member with experience in banking;
3 (iii) At least one member with experience in real estate
4 development;
5 (iv) At least one member with experience as a realtor;
6 (v) At least one member with experience in nonprofit or affordable
7 housing; and
8 (vi) At least one member with experience in large-scale residential
9 or commercial property rental; and
10 (e) (f) A single voting member may satisfy more than one of the
11 requirements provided in subdivision (2)(d) (2)(e) of this section if he
12 or she has the required qualifications. It is not necessary that there be
13 a different member to fulfill each such requirement.
14 (3) The members of the board shall select annually from among
15 themselves a chairperson, a vice-chairperson, a treasurer, and such other
16 officers as the board may determine.
17 (4) A public official or public employee shall be eligible to be a
18 member of the board.
19 (5) A vacancy on the board among the appointed board members shall
20 be filled in the same manner as the original appointment.
21 (6) Board members shall serve without compensation.
22 (7) The board shall meet in regular session according to a schedule
23 adopted by the board and shall also meet in special session as convened
24 by the chairperson or upon written notice signed by a majority of the
25 voting members. The presence of a majority of the voting members of the
26 board shall constitute a quorum.
27 (8) Except as otherwise provided in subsections (9) and (11) of this
28 section and in sections 10 and 14 of this act 19-5210 and 19-5214, all
29 actions of the board shall be approved by the affirmative vote of a
30 majority of the voting members present and voting.
31 (9) Any action of the board on the following matters shall be
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1 approved by a majority of the voting members:
2 (a) Adoption of bylaws and other rules and regulations for conduct
3 of the land bank's business;
4 (b) Hiring or firing of any employee or contractor of the land bank.
5 This function may, by majority vote of the voting members, be delegated
6 by the board to a specified officer or committee of the land bank, under
7 such terms and conditions, and to the extent, that the board may specify;
8 (c) The incurring of debt;
9 (d) Adoption or amendment of the annual budget; and
10 (e) Sale, lease, encumbrance, or alienation of real property,
11 improvements, or personal property with a value of more than fifty
12 thousand dollars.
13 (10) Members of a board shall not be liable personally on the bonds
14 or other obligations of the land bank, and the rights of creditors shall
15 be solely against such land bank.
16 (11) The board shall adopt policies and procedures to specify the
17 conditions that must be met in order for the land bank to give an
18 automatically accepted bid as authorized in sections 17 and 18 of this
19 act 19-5217 and 19-5218. The adoption of such policies and procedures
20 shall require the approval of two-thirds of the voting members of the
21 board. At a minimum, such policies and procedures shall ensure that the
22 automatically accepted bid shall only be given for one of the following
23 reasons:
24 (a) The real property substantially meets more than two one of the
25 following criteria as determined by two-thirds of the voting members of
26 the board:
27 (i) The property is not occupied by the owner or any lessee or
28 licensee of the owner;
29 (ii) There are no utilities currently being provided to the
30