Banking Commerce and Insurance

Omnibus banking bill advances

A bill that would change the Nebraska Model Business Corporation Act was amended to become an omnibus banking bill and advanced from general file March 5.

Sen. Andrew La Grone
Sen. Andrew La Grone

LB808, introduced by Sen. Andrew La Grone of Gretna, would enact new sections in the Act related to defective corporate actions. La Grone said the bill would provide a method to correct procedural errors that a corporation might make.

A Banking, Commerce and Insurance Committee amendment, adopted 35-0, added provisions from five bills to LB808:
• LB775, introduced by Sen. Matt Williams of Gothenburg, which would make several technical changes to the Nebraska Real Property Appraiser Act;
• LB782, introduced by Gering Sen. John Stinner, which would allow students within 120 days of completing an accounting degree to take test sections of the certified public accountant exam;
• LB902, introduced by Sen. Patty Pansing Brooks of Lincoln, which would modernize and reform the terms of an irrevocable trust;
• LB929, introduced by Omaha Sen. Brett Lindstrom, which would exempt from the Nebraska Real Estate License Act an unlicensed person who provides a list of potential purchases to a broker or real estate salesperson; and
• LB1123, also introduced by Lindstrom, which would expand the definition of security to include student loans under the Public Funds Deposit Security Act.

Lindstrom introduced an amendment, adopted 34-0, that also would add provisions of his LB767 to change laws governing condominium associations. Among other changes, the provisions would reduce the time allowed to recover damages from alleged deficiency in the design or construction of a condominium.

Williams supported the amendment. He said current condominium laws in Nebraska are outdated and as a result new condominium construction has “slowed down or even stopped.”

Sen. Rick Kolowski of Omaha opposed the amendment. He said many states have seen an increase in condominium construction while having a longer period of time to claim damages.

“Where is the concern for the individual condominium owner?” he said.

Senators advanced LB808 to select file on a 35-0 vote.

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