Expanded SID authority passed

A bill that expands the authority of sanitary and improvement districts (SIDs) was passed by the Legislature April 23.

When a property developer buys land for a housing development, an SID is created to install streets, sewers and power, as well as buy land for public parks. The SID is vested with taxing authority to finance these services.

LB324, introduced by Omaha Sen. John McCollister, authorizes SIDs to contract for solid waste collection services. Any solid waste collection contract entered into by an SID will be cancelled upon the district’s annexation by a city or village.

The bill includes provisions of two other bills.

Originally introduced by Norfolk Sen. Jim Scheer, provisions of LB197 provide additional powers to an SID when it is too close to a municipality to incorporate, yet too far away from a municipality to be annexed. These have to be approved by the city council or village board within whose zoning jurisdiction the SID is located.

Provisions of LB420, originally introduced by Bellevue Sen. Sue Crawford, require a person purchasing a home located in an SID to acknowledge in writing their understanding that the property is located within an SID.

The bill passed on a 44-3 vote.