HB587--LANDBANKS
SPONSOR: Owen
Thisbillexpandsthelistofcitiesauthorizedtoestablishaland
bankagencyundertheLandBankAct(Sections140.980to140.1015,
RSMo)toincludeanycitywith1,500ormoreinhabitantsexceptin
certainnonchartercountiesandcertainchartercounties.
Thebillalsoprovidesthat,uponrequestbyanycitywithless
than1,500inhabitantsnotlocatedincertainnonchartercounties,
oranyunincorporated communitylocatedincertainnoncharter
counties,thecountycommissionmustestablishalandbankagency
forthemanagement,sale,transfer,andotherdispositionof
interestsinrealestateownedbythelandbankagency.
Uponenactment,theexceptiontoapplicationinanonchartercounty
wouldapplytoBuchananCountyandtheexceptiontoapplicationin
chartercountieswouldapplytoJacksonCounty.
Manysectionsinthelandbankactareamendedtoincludea
referencetocounties.
Thedurationoftimealandbankagencyhastosellpropertyorput
ittoproductiveuseisincreasedfromtwotofiveyears.
Currently,acontractforthesaleofresidentialpropertyownedby
thelandbankagencyrequiresthebuyertoagreetoownthe
propertyforthreeyearsorbecivillyliabletothelandbankfor
anamountequaltotwicethesaleprice.Thebillrepealsthis
provisionandgivesthelandbankauthoritytodetermineifabuyer
haspropertywithtaxesdelinquent.
Foreignanddomesticcorporationsorlimitedliabilitycompanies
thatdonothavearegisteredagentunderstatelawarenotallowed
tobuypropertyfromalandbank,norareforeigncorporate
entitiesthatdonothaveacertificateofauthoritytotransact
businessinthestate.
Alandbankagencycanmakeitaconditionofsalethataproperty
ownerorthepropertyowner'ssuccessormakecertainimprovements
totheproperty. Iftheimprovementsarenotmade,thelandbank
cansuefordamagesforthebreachandseekajudicialforeclosure
inwhichthepropertywouldgobacktothelandbank.Asan
alternativeorinadditiontoajudicialforeclosurethelandbank
agencymaygifttherighttoforecloseonthepropertytoa
nonprofitorganizationorexercisetherightofreentry. Title
willbeconveyedbyrecordingthejudgmentwiththerecorderof
deeds. Membersoftheboardareaddedtoaprovisionwhichprohibitsland
bankemployeesfrombenefitingfromorowninglandbankproperty.
Thedefinitionof"county"forpurposesofSections141.210-
141.810andSections141.980to141.1015(collectively, theland
taxcollectionlaw)ischangedfromchartercountiesandcertain
firstclasscounties(currentlyonlyBuchananCounty)toall
counties,andthedefinitionof"municipality" ischangedfrom
citiesof2,500inhabitantsincharterandfirstclassification
countiestoallcitiesinallcounties. An"interestedparty"is
nowdefined.
CountiesmaynowelecttooperateundertheSections141.210to
141.810whollybyadoptingaresolutionororder,orpartiallyby
adoptingaresolutionororderforanyparcelorparcelswhichhave
backtaxesforatleasttwoyearsfromthedateonwhichthetaxes
becamedelinquent. Nocountyeligibletoestablishalandbank
underSection140.1021canbeapartialopt-incountyunlessit
firstelectstoestablishalandbankagencyasprovidedinSection
141.1021.
Forpartialopt-incounties,thecollectorwilldecidewhichtax-
delinquentparcelswillproceedunderthelandtaxcollectionlaws
andwhichwillproceedunderotherlaws.
Thecollectorhastheoptionofappointingadelinquentlandtax
attorneytobecompensatedasnecessaryforperformingthe
collector'sduties.Theappointeddelinquentlandtaxattorneymay
appointassistantattorneystobecompensatedasnecessary. The
collectormaypayanappointeddelinquentlandtaxclerkwhat
compensationisdeemednecessary,ratherthanasetfee.
Thecollectormustsendacopyofthepetitionbyfirst-classmail
totheoccupantoftheparcelorpropertywhichhasdelinquent
taxes.
Thecollectormustmakethefollowingsearches,thechargefor
whichcanberecoveredfromtheproceedsofthesale:
1)Atitlesearch,notlaterthat120dayspriortothesale;
2)Thefollowingrecords,forinterestedpartiesandaddresses
reasonablycalculatedtoappriseinterestedpartiesofthesuit:
a)Landtitlerecordsinthecountyrecorderofdeedsoffice;
b)Taxrecordsintheofficeofthelocaltreasurer; c)Taxrecordsintheofficeofthelocalassessor;
d)CourtrecordsinMissouriCaseNet;and
e)Forabusinessentity,recordsfiledwiththeSecretaryof
State.
Nolaterthan30dayspriortothesale,thecollectormustsend
noticeofthesaletoallinterestedpartiesattheaddressmost
reasonablyapprisedtoprovidenoticeofthesale.Thenoticemust
providethedate,time,andplaceofthesale,andmuststatethat
thepropertymayberedeemedpriortothesale.
Nolaterthat20dayspriortothesale,thesheriffmustpost
noticeofthesaleofthesizeandinthemannersetoutinthe
bill.Thesheriffalsomustattemptin-personnotice.
Additionalchangestothelandtaxcollectionlawinclude:
1)Changingthelawsregardingtaxesandpenaltiesforproperties
subjecttocertainactionsasabandonedpropertyinJacksonCounty.
Currently,aprovisionallowsacourtinJacksonCountytostaythe
taxforeclosuresaleofpropertythatisthesubjectofanaction
fortemporarypossessionforrehabilitation ifthepartyfilingthe
actionpaysintothecourtalloftheprincipallandtaxesowed.
Thebillexpandsthisprovisiontoallcounties;
2)Currently,Section141.540setsforththeprocedureasheriff
mustfollowwhenadvertisingforandsellingrealpropertyordered
soldpursuanttoajudgmentofforeclosurebyacourtunderthe
landtaxcollectionlaw.Thebillallowsonlinepublicationofthe
saleandrepealsalmostallotherprovisionsoftheSectiondealing
withdutiesofthecountycollectorrelatedtothesale;
3)Currently,Section141.550dealswiththeconductofsale,the
sheriff'sreturnofservice,andthesheriff'sdeedinKansasCity.
ThebilladdsSections141.980to141.1015tothejurisdictionof
thesection,removesthelimitationtoKansasCity,givestheplace
andtimeofthesaleforpartialopt-incounties,andspecifies
whatamountsthewinningbidmustinclude. Also,foreignand
domesticcorporationsorlimitedliabilitycompaniesthatdonot
havearegisteredagentunderstatelawarenotallowedtobuy
propertyfromalandbank,norareforeigncorporateentitiesthat
donothaveacertificateofauthoritytotransactbusinessinthe
state.Theofficialconductingthesalemayrequireanaffidavit
fromthebuyerthatheorshemeetstherequirementsfor
purchasers; 4)ClarifyingthatSection141.560appliestomunicipalities that
haveestablishedalandbankunderotherpertinentsectionsorare
incountiesthathaveestablishedalandbank,andremovingthe
requirementthatalandtrustmustincludecertainothercostswhen
aparcelissoldbythelandtrust;
5)Modifingthelanguageregardingthetitletoanyrealestate
thatisvestedtoapurchaser;
6)Establishingasix-monthtimelimitduringwhichacourtshould
confirmorsetasideaforeclosuresale,clarifyingwhoshould
receivenoticeofahearing,andprovidingwhatthejudgmentshould
state.Section141.580willnotapplytosalesoflandtoland
bankagencies. Inpartialopt-incounties,fundsremainingafter
thesaleandafterthedistributionasrequiredbylaw,willbe
giventothecountyschoolfund.Countiesoperatingundertheland
taxcollectionlawcanelecttoestablishafundforthepurposeof
defendingagainstclaimschallengingthesufficiencyofthenotice
provided. Aninterestedpartyotherthanthepurchasermustpay
intothecourttheredemptionamountpriortoahearing;
7)RepealingthepartofSection141.610thatprovidesthatone
yearafteraforeclosuresaleitwillbeconclusivelypresumedthat
everythingwasdonecorrectly,andnosuittosetasideadeedwill
becommencedormaintainedunlessitisfiledwithinoneyearfrom
thedateofsale;
8)ProvidingthatSection141.680doesnotapplytopartialopt-in
counties;and
9)LimitingtheapplicabilityofSection141.700,establishinga
landtrust,tocountieselectingtooperateunderSections141.210
to141.810priortoJanuary1,2024;
Inpartialopt-incounties,thebillprovidesfortheestablishment
andmake-upofalandtrust,thegoverningboard,andtheboard's
dutiesandresponsibilities.
ThebilldesignatesSections141.980-141.1015asthe"Chapter141
MunicipalLandBankAct",deletesitslimitedapplicabilityto
municipalities locatedwhollyorpartiallyiscountieswithaland
trustasofJanuary1,2012,makesitapplicabletocounties
electingtooperatewhollyunderSections141.420to141.810,
repealstheprovisionlimitingsalesmadetoasingleentityto
fivecontiguousparcelsperyear,andprohibitsmunicipalities in
partialopt-incountiesfromestablishinglandbankagenciesunder
Section141.980. Thebillalsoaddspublicationonlineasapermissiblemeansof
petitionserviceinaquiettitleaction,aswellasanyother
methodasmayberequiredbyprevailingnotionsofdueprocess.
Thisbillprovidesthatalienplaceduponpropertyforunpaid
sewercharges,oncepubliclyrecorded,hasthesamepriorityas
taxeslevied141.821forstateorcountypurposes.
ThebillrepealsSections141.820to141.970dealingwith
collectionofdelinquenttaxesintheCityofSt.Louis.