LB246 LB246
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 246
Introduced by McKinney, 11.
Read first time January 10, 2023
Committee: Urban Affairs
1 A BILL FOR AN ACT relating to sanitary and improvement districts; to
2 amend sections 31-727.01, 31-736, 31-767, 31-768, 31-769, and
3 31-771, Reissue Revised Statutes of Nebraska, and sections 31-727,
4 31-727.02, 31-728, 31-740, 31-744, and 31-749, Revised Statutes
5 Cumulative Supplement, 2022; to change provisions relating to powers
6 and duties, extraterritorial zoning jurisdiction, and publication of
7 notice; to require compliance with municipal planning requirements;
8 to harmonize provisions; to eliminate obsolete provisions; 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 31-727, Revised Statutes Cumulative Supplement,
2 2022, is amended to read:
3 31-727 (1)(a) A majority of the owners having an interest in the
4 real property within the limits of a proposed sanitary and improvement
5 district, situated in one or more counties in this state, may form a
6 sanitary and improvement district for the purposes of (i) installing
7 electric service lines and conduits, a sewer system, a water system, an
8 emergency management warning system, a system of sidewalks, public roads,
9 streets, and highways, public waterways, docks, or wharfs, and related
10 appurtenances, (ii) contracting for water for fire protection and for
11 resale to residents of the district, (iii) contracting for police
12 protection and security services, (iv) contracting for solid waste
13 collection services, (v) contracting for access to the facilities and use
14 of the services of the library system of one or more neighboring cities
15 or villages, (vi) and contracting for gas and for electricity for street
16 lighting for the public streets and highways within such proposed
17 district, (vii) constructing and contracting for the construction of
18 dikes and levees for flood protection for the district, (viii) acquiring,
19 improving, and operating public parks, playgrounds, and recreational
20 facilities, and (ix) acquiring, purchasing, leasing, owning, erecting,
21 constructing, equipping, operating, or maintaining all or a portion of
22 offstreet motor vehicle public parking facilities located in the district
23 to serve business.
24 (b) The sanitary and improvement district may also contract with a
25 county within which all or a portion of such sanitary and improvement
26 district is located or a city within whose extraterritorial zoning
27 jurisdiction such sanitary and improvement district is located for any
28 public purpose specifically authorized in this section.
29 (c) Sanitary and improvement districts located in any county which
30 has a city of the metropolitan class within its boundaries or in any
31 adjacent county which has adopted a comprehensive plan may contract with
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1 other sanitary and improvement districts to acquire, build, improve, and
2 operate public parks, playgrounds, and recreational facilities for the
3 joint use of the residents of the contracting districts.
4 (d) Nothing in this section shall authorize districts to purchase
5 electric service and resell the same.
6 (e) The district, in lieu of establishing its own water system, may
7 contract with any utilities district, municipality, or corporation for
8 the installation of a water system and for the provision of water service
9 for fire protection and for the use of the residents of the district.
10 (f) For the purposes listed in this section, such majority of the
11 owners may make and sign articles of association in which shall be stated
12 (i) the name of the district, (ii) that the district will have perpetual
13 existence, (iii) the limits of the district, (iv) the names and places of
14 residence of the owners of the land in the proposed district, (v) the
15 description of the several tracts of land situated in the district owned
16 by those who may organize the district, (vi) the name or names and the
17 description of the real estate owned by such owners as do not join in the
18 organization of the district but who will be benefited thereby, and (vii)
19 that whether the purpose of the corporation is to: (A) Install (I)
20 installing gas and electric service lines and conduits, (II) installing a
21 sewer system, (III) installing a water system, (IV) installing a system
22 of public roads, streets, and highways, public waterways, docks, or
23 wharfs, and related appurtenances; (B) contract , contracting for (I)
24 water for fire protection and for resale to residents of the district,
25 (II) contracting for police protection and security services, (III)
26 contracting for solid waste collection services, (IV) contracting for
27 access to the facilities and use of the services of the library system of
28 one or more neighboring cities or villages, (V) contracting for street
29 lighting for the public streets and highways within the proposed
30 district; (C) construct or contract , constructing or contracting for the
31 construction of dikes and levees for flood protection of the proposed
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1 district; (D) acquire, improve, and operate , acquiring, improving, and
2 operating public parks, playgrounds, and recreational facilities; (E)
3 acquire, purchase, lease, own, erect, construct, equip, operate, or
4 maintain , acquiring, purchasing, leasing, owning, erecting,
5 constructing, equipping, operating, or maintaining all or a portion of
6 offstreet motor vehicle public parking facilities located in the district
7 to serve business, or, when permitted by this section, contract
8 contracting with other sanitary and improvement districts to acquire,
9 build, improve, and operate public parks, playgrounds, and recreational
10 facilities for the joint use of the residents such of the contracting
11 districts; or (F) contract , contracting for any other public purpose
12 specifically authorized in this section, a or combination of any one or
13 more of such purposes, or all of such purposes. Such owners of real
14 estate as are unknown may also be set out in the articles as such.
15 (g) No sanitary and improvement district may own or hold land in
16 excess of ten acres, unless such land so owned and held by such district
17 is actually used for a public purpose, as provided in this section,
18 within three years of its acquisition. Any sanitary and improvement
19 district which has acquired land in excess of ten acres in area and has
20 not devoted the same to a public purpose, as set forth in this section,
21 within three years of the date of its acquisition, shall devote the same
22 to a use set forth in this section or shall divest itself of such land.
23 When a district divests itself of land pursuant to this section, it shall
24 do so by sale at public auction to the highest bidder after notice of
25 such sale has been given by publication at least three times for three
26 consecutive weeks prior to the date of sale in a legal newspaper in or of
27 general circulation within the area of the district.
28 (h)(i) Any sanitary and improvement district created on or after the
29 effective date of this act which is located in whole or in part within
30 the extraterritorial zoning jurisdiction of a municipality shall:
31 (A) Obtain the prior approval of any plans or contracts for
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1 improvements or services as required under subsection (3) of section
2 31-740; and
3 (B) Be subject to any reasonable requirements placed on such
4 district by such municipality to ensure that the development of such
5 district complies with the municipality's comprehensive development plan,
6 affordable housing action plan required under section 19-5505, municipal
7 zoning regulations, and any other reasonable planning requirements
8 established by the municipality.
9 (ii) If a sanitary and improvement district is located in whole or
10 in part within the extraterritorial zoning jurisdiction of more than one
11 municipality, such district shall only be subject to the requirements
12 described in this subdivision (h) placed on the district by the largest
13 municipality by population as determined by the most recent federal
14 decennial census or the most recent revised certified count by the United
15 States Bureau of the Census.
16 (2) The articles of association shall further state that the owners
17 of real estate so forming the district for such purposes are willing and
18 obligate themselves to pay the tax or taxes which may be levied against
19 all the property in the district and special assessments against the real
20 property benefited which may be assessed against them to pay the cost of
21 (a) expenses that may be necessary to install a sewer or water system or
22 both a sewer and water system, (b) the cost of water for fire protection,
23 (c) the cost of grading, changing grade, paving, repairing, graveling,
24 regraveling, widening, or narrowing sidewalks and roads, resurfacing or
25 relaying existing pavement, or otherwise improving any public roads,
26 streets, or highways within the district, including protecting existing
27 sidewalks, streets, highways, and roads from floods or erosion which has
28 moved within fifteen feet from the edge of such sidewalks, streets,
29 highways, or roads, regardless of whether such flooding or erosion is of
30 natural or artificial origin, (d) the cost of constructing public
31 waterways, docks, or wharfs, and related appurtenances, (e) the cost of
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1 constructing or contracting for the construction of dikes and levees for
2 flood protection for the district, (f) the cost of contracting for water
3 for fire protection and for resale to residents of the district, (g) the
4 cost of contracting for police protection and security services, (h) the
5 cost of contracting for solid waste collection services, (i) the cost of
6 contracting for access to the facilities and use of the services of the
7 library system of one or more neighboring cities or villages, (j) the
8 cost of electricity for street lighting for the public streets and
9 highways within the district, (k) the cost of installing gas and electric
10 service lines and conduits, (l) the cost of acquiring, improving, and
11 operating public parks, playgrounds, and recreational facilities, (m) the
12 cost of acquiring, purchasing, leasing, owning, erecting, constructing,
13 equipping, operating, or maintaining all or a portion of offstreet motor
14 vehicle public parking facilities located in the district to serve
15 business, (n) and, when permitted by this section, the cost of
16 contracting for building, acquiring, improving, and operating public
17 parks, playgrounds, and recreational facilities, and (o) the cost of
18 contracting for any public purpose specifically authorized in this
19 section, as provided by law.
20 (3) The articles shall propose the names of five or more trustees
21 who are (a) owners of real estate located in the proposed district or (b)
22 designees of the owners if the real estate is owned by a limited
23 partnership, a general partnership, a limited liability company, a
24 public, private, or municipal corporation, an estate, or a trust. These
25 five trustees shall serve as a board of trustees until their successors
26 are elected and qualified if such district is organized. No corporation
27 formed or hereafter formed shall perform any new functions, other than
28 those for which the corporation was formed, without amending its articles
29 of association to include the new function or functions.
30 (4) After the articles are signed, the same shall be filed in the
31 office of the clerk of the district court of the county in which such
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1 sanitary and improvement district is located or, if such sanitary and
2 improvement district is composed of tracts or parcels of land in two or
3 more different counties, in the office of the clerk of the district court
4 for the county in which the greater portion of such proposed sanitary and
5 improvement district is located, together with a petition praying that
6 the same may be declared a sanitary and improvement district under
7 sections 31-727 to 31-762.
8 (5) Notwithstanding the repeal of sections 31-701 to 31-726.01 by
9 Laws 1996, LB 1321:
10 (a) Any sanitary and improvement district organized pursuant to such
11 sections and in existence on July 19, 1996, shall, after August 31, 2003,
12 be treated for all purposes as if formed and organized pursuant to
13 sections 31-727 to 31-762;
14 (b) Any act or proceeding performed or conducted by a sanitary and
15 improvement district organized pursuant to such repealed sections shall
16 be deemed lawful and within the authority of such sanitary and
17 improvement district to perform or conduct after August 31, 2003; and
18 (c) Any trustees of a sanitary and improvement district organized
19 pursuant to such repealed sections and lawfully elected pursuant to such
20 repealed sections or in conformity with the provisions of sections 31-727
21 to 31-762 shall be deemed for all purposes, on and after August 31, 2003,
22 to be lawful trustees of such sanitary and improvement district for the
23 term provided by such sections. Upon the expiration of the term of office
24 of a trustee or at such time as there is a vacancy in the office of any
25 such trustee prior to the expiration of his or her term, his or her
26 successors or replacement shall be elected pursuant to sections 31-727 to
27 31-762.
28 (6)(a) A sanitary and improvement district that meets the
29 requirements of this subsection shall have the additional powers provided
30 for in subdivision (b) of this subsection, subject to the approval and
31 restrictions established by the city council or village board within
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1 whose extraterritorial zoning jurisdiction the sanitary and improvement
2 district is located and the county board in which a majority of the
3 sanitary and improvement district is located. The sanitary and
4 improvement district shall be (i) located in a county with a population
5 less than one hundred thousand inhabitants, (ii) located predominately in
6 a county different from the county of the municipality within whose
7 extraterritorial zoning jurisdiction such sanitary and improvement
8 district is located, (iii) unable to incorporate due to its close
9 proximity to a municipality, and (iv) unable to be annexed by a
10 municipality within whose extraterritorial with zoning jurisdiction such
11 sanitary and improvement district is located because the sanitary and
12 improvement district is not adjacent or contiguous to such municipality.
13 (b) Any sanitary and improvemen