SECOND REGULAR SESSION

HOUSE BILL NO. 2668 103RD GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVE KEATHLEY.

6496H.01I JOSEPH ENGLER, Chief Clerk

AN ACT To repeal sections 67.799, 67.1551, 68.250, 71.800, 115.123, 137.016, 137.055, 137.073, 137.079, 137.082, 137.115, 137.1040, 137.1050, 137.1055, 139.053, 182.015, 184.351, 184.357, 184.359, 184.604, 205.563, 205.979, 209.130, 210.860, 233.510, 247.130, 247.350, 247.470, 247.550, 249.1150, 256.445, 321.225, 321.244, 321.460, 321.610, 321.620, and 650.399, RSMo, and section 67.457 as enacted by house bill no. 1606, one hundred first general assembly, second regular session, section 67.457 as enacted by house bill no. 175 merged with house bill no. 1035 merged with senate bill no. 248, ninety-seventh general assembly, first regular session, and section 163.021 as enacted by senate bill no. 727, one hundred second general assembly, second regular session, and to enact in lieu thereof forty-three new sections relating to taxation.

Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Sections 67.799, 67.1551, 68.250, 71.800, 115.123, 137.016, 137.055, 2 137.073, 137.079, 137.082, 137.115, 137.1040, 137.1050, 137.1055, 139.053, 182.015, 3 184.351, 184.357, 184.359, 184.604, 205.563, 205.979, 209.130, 210.860, 233.510, 247.130, 4 247.350, 247.470, 247.550, 249.1150, 256.445, 321.225, 321.244, 321.460, 321.610, 5 321.620, and 650.399, RSMo, and section 67.457 as enacted by house bill no. 1606, one 6 hundred first general assembly, second regular session, section 67.457 as enacted by house 7 bill no. 175 merged with house bill no. 1035 merged with senate bill no. 248, ninety-seventh 8 general assembly, first regular session, and section 163.021 as enacted by senate bill no. 727, 9 one hundred second general assembly, second regular session, are repealed and forty-three 10 new sections enacted in lieu thereof, to be known as sections 67.457, 67.496, 67.799,

EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2668 2

11 67.1551, 68.250, 71.800, 115.123, 115.240, 137.016, 137.039, 137.055, 137.067, 137.073, 12 137.079, 137.082, 137.115, 137.1040, 137.1050, 137.1055, 139.053, 163.021, 182.015, 13 184.351, 184.357, 184.359, 184.604, 205.563, 205.979, 209.130, 210.860, 233.510, 247.130, 14 247.350, 247.470, 247.550, 249.1150, 256.445, 321.225, 321.244, 321.460, 321.610, 15 321.620, and 650.399, to read as follows: [67.457. 1. To establish a neighborhood improvement district, the 2 governing body of any city or county shall comply with either of the 3 procedures described in subsection 2 or 3 of this section. 4 2. The governing body of any city or county proposing to create a 5 neighborhood improvement district may by resolution submit the question of 6 creating such district to all qualified voters residing within such district at a 7 general or special election called for that purpose. Such resolution shall set 8 forth the project name for the proposed improvement, the general nature of the 9 proposed improvement, the estimated cost of such improvement, the 10 boundaries of the proposed neighborhood improvement district to be 11 assessed, and the proposed method or methods of assessment of real 12 property within the district, including any provision for the annual 13 assessment of maintenance costs of the improvement in each year during 14 the term of the bonds issued for the original improvement and after such bonds 15 are paid in full. The governing body of the city or county may create a 16 neighborhood improvement district when the question of creating such district 17 has been approved by the vote of the percentage of electors within such district 18 voting thereon that is equal to the percentage of voter approval required for the 19 issuance of general obligation bonds of such city or county under Article VI, 20 Section 26 of the constitution of this state. The notice of election containing 21 the question of creating a neighborhood improvement district shall contain the 22 project name for the proposed improvement, the general nature of the 23 proposed improvement, the estimated cost of such improvement, the 24 boundaries of the proposed neighborhood improvement district to be 25 assessed, the proposed method or methods of assessment of real property 26 within the district, including any provision for the annual assessment of 27 maintenance costs of the improvement in each year after the bonds issued for 28 the original improvement are paid in full, and a statement that the final cost of 29 such improvement assessed against real property within the district and the 30 amount of general obligation bonds issued therefor shall not exceed the 31 estimated cost of such improvement, as stated in such notice, by more than 32 twenty-five percent, and that the annual assessment for maintenance costs of 33 the improvements shall not exceed the estimated annual maintenance cost, as 34 stated in such notice, by more than twenty-five percent. The ballot upon 35 which the question of creating a neighborhood improvement district is 36 submitted to the qualified voters residing within the proposed district shall 37 contain a question in substantially the following form: 38 Shall ______ (name of city or county) be authorized to create a 39 neighborhood improvement district proposed for the ______ (project name for 40 the proposed improvement) and incur indebtedness and issue general 41 obligation bonds to pay for all or part of the cost of public improvements HB 2668 3

42 within such district, the cost of all indebtedness so incurred to be assessed by 43 the governing body of the ______ (city or county) on the real property 44 benefitted by such improvements for a period of ______ years, and, if included 45 in the resolution, an assessment in each year thereafter with the proceeds 46 thereof used solely for maintenance of the improvement? 47 3. As an alternative to the procedure described in subsection 2 of this 48 section, the governing body of a city or county may create a neighborhood 49 improvement district when a proper petition has been signed by the owners of 50 record of at least two-thirds by area of all real property located within such 51 proposed district. Each owner of record of real property located in the 52 proposed district is allowed one signature. Any person, corporation, or limited 53 liability partnership owning more than one parcel of land located in such 54 proposed district shall be allowed only one signature on such petition. The 55 petition, in order to become effective, shall be filed with the city clerk or 56 county clerk. A proper petition for the creation of a neighborhood 57 improvement district shall set forth the project name for the proposed 58 improvement, the general nature of the proposed improvement, the estimated 59 cost of such improvement, the boundaries of the proposed neighborhood 60 improvement district to be assessed, the proposed method or methods of 61 assessment of real property within the district, including any provision for the 62 annual assessment of maintenance costs of the improvement in each year 63 during the term of the bonds issued for the original improvement and after 64 such bonds are paid in full, a notice that the names of the signers may not be 65 withdrawn later than seven days after the petition is filed with the city clerk or 66 county clerk, and a notice that the final cost of such improvement assessed 67 against real property within the district and the amount of general obligation 68 bonds issued therefor shall not exceed the estimated cost of such improvement, 69 as stated in such petition, by more than twenty-five percent, and that the 70 annual assessment for maintenance costs of the improvements shall not exceed 71 the estimated annual maintenance cost, as stated in such petition, by more than 72 twenty-five percent. 73 4. Upon receiving the requisite voter approval at an election or upon 74 the filing of a proper petition with the city clerk or county clerk, the governing 75 body may by resolution or ordinance determine the advisability of the 76 improvement and may order that the district be established and that 77 preliminary plans and specifications for the improvement be made. Such 78 resolution or ordinance shall state and make findings as to the project name for 79 the proposed improvement, the nature of the improvement, the estimated cost 80 of such improvement, the boundaries of the neighborhood improvement 81 district to be assessed, the proposed method or methods of assessment of real 82 property within the district, including any provision for the annual assessment 83 of maintenance costs of the improvement in each year after the bonds issued 84 for the original improvement are paid in full, and shall also state that the final 85 cost of such improvement assessed against the real property within the 86 neighborhood improvement district and the amount of general obligation 87 bonds issued therefor shall not, without a new election or petition, exceed the 88 estimated cost of such improvement by more than twenty-five percent. HB 2668 4

89 5. The boundaries of the proposed district shall be described by metes 90 and bounds, streets or other sufficiently specific description. The area of the 91 neighborhood improvement district finally determined by the governing body 92 of the city or county to be assessed may be less than, but shall not exceed, the 93 total area comprising such district. 94 6. In any neighborhood improvement district organized prior to 95 August 28, 1994, an assessment may be levied and collected after the original 96 period approved for assessment of property within the district has expired, 97 with the proceeds thereof used solely for maintenance of the improvement, if 98 the residents of the neighborhood improvement district either vote to assess 99 real property within the district for the maintenance costs in the manner 100 prescribed in subsection 2 of this section or if the owners of two-thirds of the 101 area of all real property located within the district sign a petition for such 102 purpose in the same manner as prescribed in subsection 3 of this section. 103 7. Prior to any assessment hereafter being levied against any real 104 property within any neighborhood improvement district, and prior to any lien 105 enforceable under either chapter 140 or 141 being imposed after August 28, 106 2013, against any real property within a neighborhood improvement district, 107 the clerk of the governing body establishing the neighborhood improvement 108 district shall cause to be recorded with the recorder of deeds for the county in 109 which any portion of the neighborhood improvement district is located a 110 document conforming to the provisions of sections 59.310 and 59.313, and 111 which shall contain at least the following information: 112 (1) Each and all owners of record of real property located within the 113 neighborhood improvement district at the time of recording, who shall be 114 identified in the document as grantors and indexed by the recorder, as required 115 under and pursuant to section 59.440; 116 (2) The governing body establishing the neighborhood improvement 117 district and the title of any official or agency responsible for collecting or 118 enforcing any assessments, who shall be identified in the document as grantees 119 and so indexed by the recorder, as required under and pursuant to section 120 59.440; 121 (3) The legal description of the property within the neighborhood 122 improvement district which may either be the metes and bounds description 123 authorized in subsection 5 of this section or the legal description of each lot or 124 parcel within the neighborhood improvement district; and 125 (4) The identifying number of the resolution or ordinance creating the 126 neighborhood improvement district, or a copy of such resolution or ordinance. 127 8. (1) The governing body of the city or county establishing a 128 neighborhood improvement district shall, as soon as is practicable, submit the 129 following information to the state auditor and the department of revenue: 130 (a) A description of the boundaries of such district as well as the 131 average assessment made against real property located in such district; 132 (b) Any amendments made to the boundaries of a district; and 133 (c) The date on which a neighborhood improvement district is 134 dissolved. 135 (2) The governing body of the city or county establishing a 136 neighborhood improvement district on or after August 28, 2022, shall not HB 2668 5

137 order any assessment to be made on any real property located within a district 138 until such governing body has submitted the information required by 139 paragraph (a) of subdivision (1) of this subsection.] 67.457. 1. To establish a neighborhood improvement district, the governing body of 2 any city or county shall comply with either of the procedures described in subsection 2 or 3 of 3 this section. 4 2. The governing body of any city or county proposing to create a neighborhood 5 improvement district may by resolution submit the question of creating such district to all 6 qualified voters residing within such district at a general [or special] election [called for that 7 purpose]. Such resolution shall set forth the project name for the proposed improvement, the 8 general nature of the proposed improvement, the estimated cost of such improvement, the 9 boundaries of the proposed neighborhood improvement district to be assessed, and the 10 proposed method or methods of assessment of real property within the district, including any 11 provision for the annual assessment of maintenance costs of the improvement in each year 12 during the term of the bonds issued for the original improvement and after such bonds are 13 paid in full. The governing body of the city or county may create a neighborhood 14 improvement district when the question of creating such district has been approved by the 15 vote of the percentage of electors within such district voting thereon that is equal to the 16 percentage of voter approval required for the issuance of general obligation bonds of such city 17 or county under Article VI, Section 26 of the constitution of this state. The notice of election 18 containing the question of creating a neighborhood improvement district shall contain the 19 project name for the proposed improvement, the general nature of the proposed improvement, 20 the estimated cost of such improvement, the boundaries of the proposed neighborhood 21 improvement district to be assessed, the proposed method or methods of assessment of real 22 property within the district, including any provision for the annual assessment of maintenance 23 costs of the improvement in each year after the bonds issued for the original improvement are 24 paid in full, and a statement that the final cost of such improvement assessed against real 25 property within the district and the amount of general obligation bonds issued therefor shall 26 not exceed the estimated cost of such improvement, as stated in such notice, by more than 27 twenty-five percent, and that the annual assessment for maintenance costs of the 28 improvements shall not exceed the estimated annual maintenance cost, as stated in such 29 notice, by more than twenty-five percent. The ballot upon which the question of creating a 30 neighborhood improvement district is submitted to the qualified voters residing within the 31 proposed district shall contain a question in substantially the following form: 32 Shall ______ (name of city or county) be authorized to create a neighborhood 33 improvement district proposed for the ______ (project name for the proposed improvement) 34 and incur indebtedness and issue general obligation bonds to pay for all or part of the cost of HB 2668 6

35 public improvements within such district, the cost of all indebtedness so incurred to be 36 assessed by the governing body of the ______ (city or county) on the real property benefitted 37 by such improvements for a period of ______ years, and, if included in the resolution, an 38 assessment in each year thereafter with the proceeds thereof used solely for maintenance of 39 the improvement? 40 3. As an alternative to the procedure described in subsection 2 of this section, the 41 governing body of a city or county may create a neighborhood improvement district when a 42 proper petition has been signed by the owners of record of at least two-thirds by area of all 43 real property located within such proposed district. Each owner of record of real property 44 located in the proposed district is allowed one signature. Any person, corporation, or limited 45 liability partnership owning more than one parcel of land located in such proposed district 46 shall be allowed only one signature on such petition. The petition, in order to become 47 effective, shall be filed with the city clerk or county clerk. A proper petition for the creation 48 of a neighborhood improvement district shall set forth the project name for the proposed 49 improvement, the general nature of the proposed improvement, the estimated cost of such 50 improvement, the boundaries of the proposed neighborhood improvement district to be 51 assessed, the proposed method or methods of assessment of real property within the district, 52 including any provision for the annual assessment of maintenance costs of the improvement 53 in each year during the term of the bonds issued for the original improvement and after such 54 bonds are paid in full, a notice that the names of the signers may not be withdrawn later than 55 seven day