HCS/SS/SCS/SB 1183 - In accordance with this act, cities and towns may only impose requirements for the posting of bonds, letters of credit, or escrows for subdivision-related improvements. In lieu of completion of work and installations prior to the final approval of a plat, the council will accept, at the option of the developer, an escrow secured with cash, an escrow secured with an irrevocable letter of credit, or a surety bond, provided the surety bond must be issued in an amount and with surety and other reasonable conditions.

Under this act, regulations shall provide that in the event a developer, who has posted a bond, letter of credit, or an escrow with the city, transfers title of the subdivision property prior to full release, the municipality will accept a replacement escrow or letter of credit from the successor. The city will accept a replacement in the amount held by the city at the time of the property transfer. Upon receiving the replacement escrow or letter of credit, the city shall fully release the original escrow or bond and the prior developer from all obligations associated with the subdivision improvements. The city, town, or village may accept a surety bond from a successor developer and the city, town, or village shall release the bond in full and release the prior developer from all further obligations.

Current law states that the regulations shall provide that any escrow or bond amount on each component of the improvements or utilities shall be released within thirty days of completion minus a maximum retention of five percent which shall be released upon completion of all improvements and utility work. The city shall inspect each category of improvement or utility work within twenty business days after a request for such inspection. If the city or town has not released the escrow funds or bond amount within 30 days or timely inspected the improvements, the city shall pay interest.

Kansas City is exempt from certain provisions of Section 89.410, RSMo.

Improvements secured as provided for in this act are not subject to the terms of Sections 290.210 to 290.340 unless they are paid for wholly or in part out of public funds.

This act is similar to HB 1225.

This act was truly agreed to and finally passed in CCS/SS/SCS/HCS/HBs 795, 972, 1128 & 1161 (2004).
SUSAN HENDERSON