HCS SB 1186 -- POLITICAL SUBDIVISIONS

SPONSOR:  Kenney (Hoppe)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government and Related Matters by a vote of 12 to 1.

This substitute makes several changes regarding services provided
by municipal governments.

CITIES (Sections 67.320 and 82.293, RSMo)

The substitute requires political subdivisions to pay the owner
of property the fair market value for property that the political
subdivision has required the owner to set aside for future public
works projects.

No city may, without specific statutory authority, enact any
surcharge for the benefit of a school district.

MUNICIPAL ECONOMIC AUTHORITIES (Sections 99.915 - 99.984)

The substitute:

(1)  Creates in each municipality a Downtown Economic Stimulus
Authority, which will constitute a public body corporate and
politic;

(2)  Restricts the authority from funding the construction,
maintenance, or operation of any sports stadium or related
facility;

(3)  Requires each authority to be governed by a board of
commissioners with five to 13 members.  At least one of the
commissioners will be a member of a local community development
corporation, at least one other will be a minority business
owner, and at least one other member will be appointed by the
school boards whose districts are included within the development
area.  In addition to these commissioners, two advisory members
will be appointed by the school boards whose districts are
included within the development area, and one additional advisory
member will be appointed to represent all other districts levying
ad valorem taxes or sales taxes within the development area.  All
remaining commissioners will be appointed by the mayor for terms
of one to three years;

(4)  States the powers of the authority, which do not include the
power of eminent domain;

(5)  Requires each municipality to establish a minority business
plan to ensure that minority-owned businesses are provided good
faith opportunities to participate in the procurement of goods
and services within the development project areas;

(6)  Outlines methods by which real property can be disposed of;

(7)  Outlines the required process for reviewing and accepting
developer proposals;

(8)  Explains what the authority may do to carry out a
development project, including how to transfer real property;

(9)  Allows Kansas City, St. Louis City, and St. Louis County to
establish a Community Development Corporation Revolving Fund for
the purpose of providing funds to community development
corporations in these municipalities;

(10)  Requires the revolving funds to be administered by a
13-member community development corporation revolving fund board.
One member of the board must be a member of the local regional
community development association and one must be a minority
business owner;

(11)  Allows the General Assembly to appropriate up to 5% of
certain new state revenues for distribution to the revolving
funds.  No more than $1.5 million can be deposited in the fund
annually;

(12)  Allows the board to issue grants and forgivable loans to
community development corporations in Kansas City, St. Louis
City, and St. Louis County for community economic development
activities being implemented by the corporations;

(13)  Outlines the requirements of a development plan, what is
required of a municipality before it can adopt the development
plan, and the manner in which the plan must be reviewed;

(14)  Requires that hearing notices be published in a general
circulation newspaper in addition to two minority newspapers, one
of which must be published in Spanish;

(15)  Allows the authority, municipality, or state to issue bonds
to finance the development project;

(16)  Allows the municipality to collect new taxes within
development areas for development projects, if approved by the
voters of the municipality;

(17)  Explains the manner in which ad valorem taxes and payments
in lieu of taxes will be divided among the affected taxing
districts;

(18)  Explains the manner in which other net new revenues will be
paid to the municipality;

(19)  Requires the municipality to deposit other net new revenues
into a separate account within the special allocation fund and
explains when the municipality is required to remit excess funds
to the Department of Economic Development;

(20)  Explains when particular affected taxpayers are entitled to
receive tax credits;

(21)  Requires each municipality to submit an annual report to
the Department of Revenue regarding development;

(22)  Allows payments in lieu of taxes, economic activity taxes,
and other net new revenue to be apportioned or diverted pursuant
to the Real Property Tax Increment Allocation Redevelopment Act
if all or a part of the development project area becomes subject
to tax increment financing; and

(23)  Requires the authority and the municipality to submit an
annual report concerning development to the Director of the
Department of Economic Development.

POLITICAL SUBDIVISION TELECOMMUNICATION SERVICE (Section 392.410)

The substitute also removes the August 28, 2002, expiration date
for provisions that prohibit political subdivisions from
providing or selling telecommunication services that require a
certificate of service authority from the Public Service
Commission.  Municipal utilities are allowed to offer wholesale
telecommunication services within their service boundaries on a
nondiscriminatory, competitively neutral basis at a price that
covers costs.

KANSAS CITY LAND TRUST (Sections 141.610 - 141.790)

The substitute makes several changes to the land trust law.  The
substitute:

(1)  Requires any challenge to the validity of an administrator's
or sheriff's deed to commence within one year (Section 141.610);

(2)  Requires the county executive to appoint land trust members.
If a county executive does not exist, the county commission will
appoint the members (Section 141.720);

(3)  Authorizes a land trust to sell certain tracts of vacant
residential property to the owners of contiguous property
(Section 141.720);

(4)  Requires copies of the budget to be delivered to the county
and city that appointed the trustee members.  If the governing
bodies of the county and city do not object to the budget, it
will become the budget of the land trust.  The approved budget
may only be amended with the consent of the county and city that
appointed members (Section 141.720);

(5)  Allows land trusts in counties of the first classification
having a charter form of government to retain revenue from land
sales to pay salaries and expenses of the trust.  If the revenue
derived from land sales is insufficient to meet the expenses of
the land trust, it can requisition additional funds from the
county and city.  The additional funds cannot exceed $25,000 per
year without the consent of the county and city.  The budget of
the land trust must be approved by the governing bodies of the
county and city that appointed the trustee members (Sections
141.720 - 141.790); and

(6)  Allows performance audits by the State Auditor or the Kansas
City Auditor.  Cost of performance audits must be paid for by the
land trust and made available to the public within 30 days of
completion (Section 141.720).

ST. LOUIS CITY EMERGENCY COMMUNICATIONS SYSTEM (Sections 650.390
- 650.411)

The substitute allows St. Louis County to establish an emergency
communications system within the county.  The purpose of the
system is to provide a wireless communication network that
permits governmental or public safety entities to communicate
within the area served.  The district would be managed by a
seven-member commission appointed by the chief executive officer
of the county.  The substitute outlines the qualifications and
term of office of commission members and the powers of the
commission.  The commission may issue bonds.  The issuance of
bonds must be approved by the voters of the district.  The
county, upon voter approval, may also levy and collect a sales
tax not to exceed one-tenth of 1% or a property tax not to exceed
six cents per $100 of assessed valuation for the purpose of
establishing and maintaining the system.  All funds collected
from the tax will be deposited in the Emergency Communication
System Fund established by the substitute.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that there is a problem with some
cities trying to charge other cities for services with a
surcharge.

Testifying for the bill was Senator Kenney.

OPPONENTS:  There was no opposition voiced to the committee.

Steve Bauer, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am