Labor councillor Darren Cameron won 5-3 support on Monday night for a motion to write a letter to Gladys Berejiklian and the Local Government Minister Shelley Hancock urging them to "genuinely ban developers and real estate agents (and their relatives and close associates) from serving as councillors by closing the existing loopholes in legislation".

The council will also write to the executive of the state's Liberal and Labor party branches to "ensure bipartisan support" for the changes.

The action comes as the NSW Lower House is due to debate a bill which would amend local government laws in relation to the banning of property developers.

Cr Cameron said it was important Albury Council took a stance before the bill was considered in the Legislative Assembly.

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Councillor Alice Glachan opposed the move, saying she was concerned about "unintended consequences" with those who subdivide their blocks and related professions such as engineers, earth movers and traffic control company owners, as well as estate agent receptionists, being implicated.

"Where do we draw the line?" she asked.

Cr Cameron said Cr Glachan was using strawman arguments to cloud the issue.

Meanwhile, the council has endorsed a new constitution and structure for the Murray Arts Museum Albury which will see MAMA Ltd formed to attract more philanthropic support.

The council will now apply to Ms Hancock for consent under the Local Government Act to participate in the birth of MAMA Ltd before further related reports are presented to the city for approval.