- Perfected -

SS/SCS/SB 1183 - In accordance with this act, cities and towns may only impose requirements for the posting of bonds 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 by a surety bonding company with a reasonably acceptable bond rating.

Under this act, regulations shall provide that in the event a developer, who has posted a bond or an escrow with the city, transfers title of the subdivision property prior to full release, the municipality will accept a replacement escrow 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, the city shall fully release the original escrow or bond and the prior developer from all obligations associated with the subdivision improvements.

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.

This act allows flexibility in the type of security that may be accepted in lieu of full completion of required infrastructure improvements in subdivisions prior to the plat being recorded by allowing securities beyond surety bonds (e.g. cash bonds).

This act is similar to HB 1225.

SUSAN HENDERSON