CCS/HCS/SCS/SB 635 - This act modifies the law relating to financial institutions, school funds, private roads, real estate appraisal, agricultural education programs, liens, and state purchasing preferences. FEDERAL HOME LOAN BANKS
Currently, irrevocable standby letters of credit issued by a federal home loan bank possessing the highest credit rating by at least one nationally recognized rating agency are listed as acceptable collateral for public deposits. This act removes the reference to credit ratings. (Section 30.270)
STATE PURCHASING PREFERENCES
Currently, the Commissioner of Administration is required to give preference to certain commodities in making purchases. This act included forest products and bricks that have been processed in the state. (Section 34.070)
DOE RUN CONSENT DECREE
Moneys received by certain school funds as a result of the Doe Run settlement decree shall not be included in the district's local effort figure. (Section 163.024)
AGRICULTURAL EDUCATION PROGRAMS
The state board of education is required to establish standards for agricultural education that may be adopted by certain private schools that wish to provide vocational programming outside of, but consistent with, the requirements of the federal vocational education act. The school shall be qualified to apply for approval of a local chapter of a federally chartered national agricultural education association. The school shall reimburse the department for the cost of oversight and maintenance of the program. (Section 178.530)
ESTABLISHMENT AND MAINTENANCE OF PRIVATE ROADS
The act modifies the law governing the establishment, improvement, and maintenance of private roads.
This act establishes a process for establishing a plan of maintenance for private roads when adjoining homeowners or homeowners who hold easements to use private roads are unable to agree in writing upon a plan of maintenance for a private road. If the homeowners are unable to agree to a plan of maintenance, one or more of the homeowners may petition the circuit court for an order establishing a plan of maintenance.
Under the terms of the act, the cost of the maintenance plan for a private road must be apportioned among the homeowners according to the use and benefit to the residential property benefitted by the access as mutually agreed by the homeowners or as ordered by the court. The method of apportionment established by the homeowners or ordered by the court may be based on equal division, residential assessed value, usage or benefit or other methods.
The act provides that a court may implement the same procedures to order a plan of maintenance for establishing or widening a private road. The act further provides that the court may appoint disinterested commissioners to determine a maintenance plan and the apportionment of costs.
If homeowners are unable to agree upon the designation of a supervisor to complete a maintenance plan, then the commissioners appointed by the court shall designate a supervisor. The appointed supervisor shall be compensated in the same manner as the commissioners.
Under the act, any agreement executed by all owners for, or final order approving, a plan of maintenance shall be recorded with the county recorder of deeds. Under the terms of the act, adjoining landowners or holders of an easement to use a private road may bring an action to enforce the maintenance plan, whether as mutually agreed or as ordered by the court.
The act allows a prior agreement or court order establishing a plan of maintenance to be amended or modified and may be restated at any time by a recorded agreement signed by all the homeowners or other benefitted owners. A court proceeding to amend, modify, or restate a plan of maintenance shall not be filed sooner than 7 years from the entry of a prior order unless there is prima facie evidence showing that the real property benefitted by the private road has been developed or divided in a manner rendering the plan of maintenance obsolete or showing that the existing apportionment of the use and benefit is inequitable.
For the purposes of obtaining a maintenance order, the act defines "private road" as any private road established under chapter 228 or any easement of access which provides a mean of ingress and egress by motor vehicle for any owners of residences from such homes to a public road. The act specifies that private roads do not include roads owned by the United States, the state of Missouri, or other political subdivisions. The act also specifies that the provisions of law that pertain to the establishment and maintenance of private roads shall not apply to roads created by or included in any recorded plat referencing or referenced in an indenture or declaration creating an owner's association, regardless of whether such road is designated as a common element. In addition, the private road statutes shall not apply to any land or property owned or operated by any railroad regulated by the Federal Railroad Administration. (Sections 228.341, 228.368, 228.369, 228.374)
WATERCRAFT, VEHICLE, AND TRAILER LIENS
Currently, on a refinance of a loan secured by a watercraft, motor vehicle, or trailer, a lien is perfected by delivering the notice of lien to the director of revenue. The act modifies this provision only to apply to refinances by different lenders on prior loans. (Sections 301.600, 306.400)
REAL ESTATE APPRAISERS AND APPRAISAL MANAGEMENT COMPANIES
This act modifies provisions regarding real estate appraisers and appraisal management companies. The Missouri Certified and Licensed Real Estate Appraisers Act is renamed the Missouri Certified and Licensed Real Estate Appraisers and Appraisal Management Company Regulation Act.
The following trainee licenses are created: state-licensed appraiser trainee, state-certified residential appraiser trainee, and state-certified general appraiser trainee. The Missouri Real Estate Appraisers Commission is required to adopt rules and procedures for issuing and regulating the three appraiser trainee licenses. To renew a trainee license, the individual must request an extension at least 30 days before the expiration of the license. Licensed trainees must place their license number beside their title on reports or other documents used in conducting appraisals. Licensed trainees must disclose their addresses to the Commission and any change in address. The Commission may cause complaints to be filed with the Administrative Hearing Commission against licensed trainees. Licensed trainees must comply with the Uniform Standards of Professional Appraisal Practice.
The Missouri Real Estate Appraisers Fund is renamed the Missouri Real Estate Appraisers and Appraisal Management Company Fund. The authority is removed for the Missouri Real Estate Appraisers Commission to extend the terms of certificates or licenses for individuals that failing to renew. The Commission can only issue inactive certificates or licenses for state-certified real estate appraisers or state-licensed real estate appraisers.
The requirement that the signature of the chairman of the Commission and a certificate or assigned license number be on each certificate or license is removed.
Appraisal management companies are exempted from certain licensing and examination requirements. Appraisal management companies must disclose their license numbers on engagement letters. They must notify the Commission of a change in their controlling person, agent of record, ownership, or address within 30 days of a change. The Commission may cause complaints to be filed with the Administrative Hearing Commission against appraisal management companies other than natural persons. Appraisal management company records must be retained for five years and made promptly available to the Commission for inspection and copying. It will be a Class B misdemeanor for any company or controlling person to practice any deception or fraud in its identity in connection with an application or holding out to the public or representation as a licensed appraisal management company when it is not. The Commission is required to maintain a registry of the names and addresses of appraisal management companies .
The act adds influencing the development, reporting, or review of an appraisal through certain methods as a reason for the Commission to file a complaint. (Sections 339.500 - 339.549)
FINANCIAL INSTITUTION FILINGS
Currently, certain banks, savings institutions, and credit unions are required to file a notice with the Missouri Real Estate Appraisers Commission that includes some of the same information and certifications that real estate appraisal management companies must file. This act eliminates the requirement that these banks, savings institutions, and credit unions file this notice. (Section 339.1115)
FINANCIAL INSTITUTION TRUST AUTHORITY
Currently, Missouri banks and trust companies with trust powers, and national banks with trust powers under United States laws with their principal place of business in Missouri, are authorized to transfer fiduciary obligations consisting only of irrevocable life insurance trusts to the Missouri trust office of an out of state bank with trust powers or to an out of state trust company. This act allows all banks, trust companies, and national banks with trust powers, regardless of location, to transfer those obligations to any such banks and trust companies. (Section 362.333)
UNIFORM COMMERCIAL CODE
Currently, the filing of a financing statement is not necessary to perfect a security interest in property subject to certain statutes, regulations, and treaties. Such a filing is currently necessary for property held as inventory held for sale or lease by a person in the business of leasing certain goods. This act removes that exception. (Section 400.9-311)
CAREER AND TECHNICAL STUDENT ORGANIZATIONS
The Department fo Elementary and Secondary Education is required to provide staffing support for certain career and technical student organizations. The Department may require the organizations to provide sworn affidavits, attesting to proper receipt and disbursement of funds. (Section 1)
This act is similar to SB 71 (2011), HB 1308 (2012), HCS #2/HB 1524 (2012), SB 579 (2012), HB 1103 (2012), HB 1349 (2012), and SCS/SB 623 (2012).
CHRIS HOGERTY