LB171 LB171
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 171
Introduced by McKinney, 11.
Read first time January 09, 2023
Committee: Urban Affairs
1 A BILL FOR AN ACT relating to metropolitan utilities districts; to amend
2 sections 13-2802, 14-2101, 14-2102, 14-2103, 14-2104, 14-2105,
3 14-2106, 14-2107, 14-2108, 14-2109, 14-2110, 14-2111, 14-2112,
4 14-2113, 14-2114, 14-2115, 14-2116, 14-2117, 14-2118, 14-2119,
5 14-2120, 14-2121, 14-2122, 14-2123, 14-2124, 14-2125, 14-2126,
6 14-2127, 14-2128, 14-2129, 14-2130, 14-2131, 14-2132, 14-2133,
7 14-2134, 14-2135, 14-2136, 14-2137, 14-2138, 14-2139, 14-2141,
8 14-2142, 14-2143, 14-2144, 14-2145, 14-2146, 14-2147, 14-2148,
9 14-2149, 14-2150, 14-2151, 14-2152, 14-2153, 14-2154, 14-2155,
10 14-2156, 14-2157, 32-540, 60-336.02, 66-1861, and 71-6316, Reissue
11 Revised Statutes of Nebraska, and sections 32-567, 84-304, and
12 84-304.02, Revised Statutes Cumulative Supplement, 2022; to change
13 provisions relating to metropolitan utilities districts; to name the
14 Metropolitan Utilities District Act; to eliminate obsolete
15 provisions; to harmonize provisions; to provide a duty for the
16 Revisor of Statutes; and to repeal the original sections.
17 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 13-2802, Reissue Revised Statutes of Nebraska, is
2 amended to read:
3 13-2802 Whenever creation of a municipal county is proposed
4 involving a city of the metropolitan class, the interjurisdictional
5 planning commission shall include in its plan a recommendation with
6 regard to the territory within which any metropolitan utilities district
7 shall have and may exercise the power of eminent domain pursuant to
8 subsection (2) of section 18 of this act 14-2116. The plan shall further
9 include a recommendation with regard to the territory which shall be
10 deemed to be within the corporate boundary limits or extraterritorial
11 zoning jurisdiction of a municipality or a municipality dissolved by the
12 creation of the municipal county for purposes of the State Natural Gas
13 Regulation Act. The question of creation of the municipal county shall
14 not be submitted to a vote under section 13-2810 until a law adopting the
15 provisions required by this section has been enacted.
16 Sec. 2. Sections 2 to 58 of this act shall be known and may be
17 cited as the Metropolitan Utilities District Act.
18 Sec. 3. Section 14-2101, Reissue Revised Statutes of Nebraska, is
19 amended to read:
20 14-2101 Whenever in this state a city of the metropolitan class and
21 one or more adjacent municipalities, sanitary and improvement districts,
22 or unincorporated areas are served in whole or in part by a common public
23 utilities system, owned and controlled by a single corporate public
24 entity as provided for in the Metropolitan Utilities District Act
25 sections 14-2101 to 14-2157, then the territory within the limits of such
26 the city of the metropolitan class and such adjacent municipalities,
27 sanitary and improvement districts, or unincorporated areas, including
28 any sanitary and improvement district or unincorporated area outside of
29 such without the city of the metropolitan class or adjacent
30 municipalities that may be now or hereafter served in whole or in part by
31 the common public utilities system, shall form and constitute a
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1 metropolitan public utilities district, except as provided in this
2 section, to be known as the Metropolitan Utilities District
3 of ....................... (inserting the name of the city of the
4 metropolitan class). A municipality, other than a city not of the
5 metropolitan class, now actually operating a general waterworks system of
6 its own, shall not be included in such metropolitan the utilities
7 district so long as such municipality it continues to operate its own
8 water plant. No sanitary and improvement district or unincorporated area
9 outside of such without the adjacent municipalities shall become a part
10 of such metropolitan the utilities district except upon formal approval
11 and proclamation by the board of directors of such metropolitan utilities
12 district.
13 Sec. 4. Section 14-2102, Reissue Revised Statutes of Nebraska, is
14 amended to read:
15 14-2102 Within the service area of a (1) In each metropolitan
16 utilities district service area, there shall be a board of directors
17 consisting of seven members. The members shall be elected as provided in
18 section 32-540.(2) Registered voters within the boundaries of a
19 metropolitan utilities the district shall be registered voters of such
20 district. A registered voter of the district shall be eligible for the
21 office of director subject to the special qualification of residence for
22 the outside member, except that if the board of directors, by resolution,
23 divides the territory of the district into election subdivisions pursuant
24 to subsection (2) of section 32-540, a registered voter of the district
25 shall be eligible for the office of director from the election
26 subdivision in which such registered voter he or she resides.
27 (3) The outside member specified in section 32-540 shall be a
28 registered voter residing within the district but outside the corporate
29 limits of the city of the metropolitan class for which the district was
30 created.
31 In the event of the annexation of the area within which the outside
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1 member resides, he or she may continue to serve as the outside member
2 until the expiration of the term of office for which such member was
3 elected and until a successor is elected and qualified.
4 Sec. 5. Section 14-2103, Reissue Revised Statutes of Nebraska, is
5 amended to read:
6 14-2103 Whenever a metropolitan utilities district is extended to
7 include sanitary and improvement districts, unincorporated area, cities
8 towns, villages, or territory lying outside the corporate limits of a
9 city cities of the metropolitan class or so extended as to include
10 sanitary and improvement districts, unincorporated areas, cities area,
11 towns, or villages in an adjoining county or counties, then registered
12 voters within such sanitary and improvement districts, unincorporated
13 areas, cities area, towns, or villages shall have a right to participate
14 in the nomination and in the election of members of the board of
15 directors of the metropolitan utilities district. The election
16 commissioner or county clerk of each of the counties in which ballots are
17 cast pursuant to this section shall transmit, by mail or otherwise, to
18 the Secretary of State, a copy of the abstract of the votes cast for
19 members of the board of directors. The Secretary of State shall in due
20 course deliver to the candidate receiving the highest number of votes a
21 certificate of election as a member of the board of directors. All
22 filings for such office shall be made with the Secretary of State.
23 Sec. 6. Section 14-2104, Reissue Revised Statutes of Nebraska, is
24 amended to read:
25 14-2104 (1) Any vacancy occurring on in the board of directors of a
26 metropolitan utilities district shall be filled for the unexpired term by
27 the remaining members of such board thereof within thirty days after the
28 vacancy occurs. It is the intent and purpose to render the board of
29 directors nonpartisan in character.
30 (2) The chairperson of the board of directors of a metropolitan
31 utilities district shall be paid, as compensation for such director's his
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1 or her services, not to exceed the sum of one thousand two hundred sixty
2 dollars per month. The Each of the other members of the board of
3 directors shall each be paid, as compensation for their his or her
4 services, not to exceed the sum of one thousand one hundred twenty
5 dollars per month. Any adjustments in compensation shall be made only at
6 regular meetings of the board of directors, and the salaries of the
7 chairperson and other members of such board shall not be increased more
8 often than once in any calendar year.
9 (3) Members of the board of directors may be considered employees of
10 the district for purposes of participation in medical and dental plans of
11 insurance offered to regular employees. The dollar amount of any health
12 insurance premiums paid from the funds of the district for the benefit of
13 a member of the board of directors may be in addition to the amount of
14 compensation authorized to be paid to such director pursuant to this
15 section.
16 (4) The chairperson and other members of such board of directors
17 shall also be reimbursed for actual and necessary expenses incurred in
18 the performance of their official duties.
19 Sec. 7. Section 14-2105, Reissue Revised Statutes of Nebraska, is
20 amended to read:
21 14-2105 Regular meetings of the board of directors of a metropolitan
22 utilities district shall be held each calendar month at such hour and on
23 such date as the board may designate and at such other stated times as
24 shall be fixed in the bylaws of such district. Special meetings of the
25 board of directors may be held at any time at the call of the chairperson
26 or at the request of any two members filed in writing with the secretary.
27 All meetings of the board of directors, any committee of such board of
28 its committees, or any committee committees of the its employees of a
29 metropolitan utilities district shall be public.
30 Sec. 8. Section 14-2106, Reissue Revised Statutes of Nebraska, is
31 amended to read:
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1 14-2106 The Upon organization such board of directors of a
2 metropolitan utilities district shall elect one of its members
3 chairperson and one vice-chairperson, both of whom shall serve for one
4 year, and shall appoint a secretary as provided in section 11 of this act
5 14-2109. The board of directors shall make such rules governing its
6 procedure and adopt such bylaws governing its business as the board it
7 may deem proper. A majority of the board of directors shall constitute a
8 quorum for the transaction of business, but a smaller number may adjourn
9 from time to time until a quorum is secured.
10 Sec. 9. Section 14-2107, Reissue Revised Statutes of Nebraska, is
11 amended to read:
12 14-2107 The board of directors of a the metropolitan utilities
13 district or any committee of the members of such the board shall have
14 power to compel the attendance of witnesses for investigation of any
15 matters that may come before the board, and the presiding officer of the
16 board, or the chairperson of the committee for the time being, may
17 administer the requisite oaths. Such , and the board or committee thereof
18 shall have the same authority to compel the giving of testimony as is
19 conferred on courts of justice.
20 Sec. 10. Section 14-2108, Reissue Revised Statutes of Nebraska, is
21 amended to read:
22 14-2108 It shall be unlawful for any member of the board of
23 directors or any employee of a metropolitan utilities district thereof to
24 have any pecuniary interest, either directly or indirectly, in any
25 contract in connection with the construction or maintenance of water or
26 natural gas utilities of such metropolitan utilities district or be in
27 any way connected with the furnishing of supplies required by such the
28 district.
29 Sec. 11. Section 14-2109, Reissue Revised Statutes of Nebraska, is
30 amended to read:
31 14-2109 The board of directors of a metropolitan utilities district
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1 shall at its first regular meeting appoint an individual with an official
2 title designated by the board who shall (1) act as secretary of such
3 board, (2) have general supervision of the management, construction,
4 operation, and maintenance of any the utility plants and property under
5 the jurisdiction of or owned by such metropolitan utilities district,
6 subject to the direction of the board, (3) hold office at the pleasure of
7 the board, (4) possess business training, executive experience, and
8 knowledge of the development and operation of public utilities, (5)
9 receive such compensation as the board may determine, and (6) devote such
10 individual's his or her exclusive time to the duties of the office. The
11 board of directors may employ or authorize the employment of such other
12 employees and assistants as may be deemed necessary for the operation and
13 maintenance of any the utility plants under its jurisdiction and of the
14 conduct of the affairs of the board and provide for their compensation.
15 The compensation of the appointed individual and such employees shall be
16 paid from funds of the metropolitan utilities district under control of
17 the board. In no event shall the compensation, as a salary or otherwise,
18 of any employee or officer of a metropolitan utilities district exceed
19 ten thousand dollars annually per annum unless approved by a vote of two-
20 thirds or more of the members of the board of directors. The record of
21 such vote of approval, together with the names of the directors so
22 voting, shall be recorded in the minutes made a part of the permanent
23 records of the board.
24 Sec. 12. Section 14-2110, Reissue Revised Statutes of Nebraska, is
25 amended to read:
26 14-2110 No regular appointee or employee of a the metropolitan
27 utilities district, except the individual appointed in section 11 of this
28 act 14-2109, who has been appointed or employed by such district in its
29 service consecutively for more than one year shall be subject to removal
30 except upon a two-thirds vote of the full board of directors and then
31 only for cause which shall be stated in writing and filed with the
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1 secretary of the board at least ten days prior to a hearing preceding
2 such removal.
3 Sec. 13. Section 14-2111, Reissue Revised Statutes of Nebraska, is
4 amended to read:
5 14-2111 (1) The board of directors of a any metropolitan utilities
6 district may also provide benefits for, insurance of, and annuities for
7 the present and future employees and appointees of such the district
8 covering accident, disease, death, total and permanent disability, and
9 retirement, all or any of them, under such terms and conditions as the
10 board may deem proper and expedient from time to time. Any retirement
11 plan adopted by the board of directors shall be upon some contributory
12 basis requiring contributions by both the metropolitan utilities district
13 and th