COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



LR No.: 3589-08

Bill No.: HCS for SS for SCS for SB 1183

Subject: Political Subdivisions: Subdivision Regulation

Type: Original

Date: May 7, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials of the Department of Natural Resources assume no fiscal impact.



Officials of the Kansas City Manager's Office assume they are exempt from this legislation and assume no fiscal impact.



Officials of the Jasper County Commission assume no fiscal impact.



Officials of the Jefferson County Commission assume no fiscal impact.



Officials of the Platte County Planning Commission assume no fiscal impact.



Oversight has approximately 25 cities on their response list. Timing did not allow for their response to this substitute.







FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0



FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION

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.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.



SOURCES OF INFORMATION

Department of Natural Resources

Jasper County Commission

Jefferson County Commission

Platte County Planning Commission

Kansas City Manager's Office



NOT RESPONDING

Timing requirements did not allow all of the cities and counties on Oversight's response lists to respond.



















Mickey Wilson, CPA

Director

May 7, 2004