HCS SS SCS SB 1183 -- SECURITY BONDS

SPONSOR:  Dolan (Johnson, 47)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government by a vote of 15 to 0.

This substitute allows county planning commissions to accept
other forms of security besides surety bonds in lieu of the full
completion of required infrastructure improvements in
subdivisions prior to the plat being recorded.

Political subdivisions are required to accept a letter of credit
from a developer as security for the completion of infrastructure
improvements in subdivisions.  Current law allows political
subdivisions to choose what kind of security, such as surety
bonds, the developer must provide.  Political subdivisions are
required to accept a replacement escrow from another developer
who buys the subdivision property prior to completion, at which
time the political subdivision must release the original
developer from all obligations.  The substitute also requires the
political subdivision to inspect the project within 20 days of a
request.  If the city or town has not released the escrow funds
or bond amount within 30 days or timely inspected the
improvements, the city must pay interest.  The substitute exempts
Kansas City from this provision.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that the bill clarifies the financial
requirements cities can impose upon residential developers.

Testifying for the bill were Senator Dolan; and St. Louis Home
Builders Association.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say they would prefer a
30-business day deadline for the inspection.

Others testifying on the bill was Missouri Municipal League.

Julie Jinkens McNitt, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am