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SECOND REGULAR SESSION
HOUSE BILL NO. 1734
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE WELLENKAMP .
4625H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 640, RSMo, by adding thereto one new section relating to the soil erosion
control fund.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 640, RSMo, is amended by adding thereto one new section, to be
2 known as section 640.900, to read as follows:
640.900. 1. (1) There is her eby creat ed in the state tr easury the "Soil Er osion
2 Contr ol Fund", which shall consist of moneys appr opriated by the general assembly; all
3 gifts, grants, and bequests fro m any federal or private source; and all r epayment of loan
4 moneys fr om eligible homeowners' associations. The state tr easur er shall be custodian
5 of the fund. In accordance with sections 30.170 and 30.180, the state tr easurer may
6 appr ove disbursements. The fund shall be a dedicated fund and, upon appr opriation,
7 moneys in this fund shall be used solely as pr ovided in this section.
8 (2) Notwithstanding the pro visions of section 33.080 to the contrary , any moneys
9 r emaining in the fund at the end of the biennium shall not r evert to the credit of the
10 general reven ue fund.
11 (3) The state tre asurer shall invest moneys in the fund in the same manner as
12 other funds ar e invested. Any interes t and moneys earned on such investments shall be
13 cr edited to the fund.
14 2. The fund shall be used to better equip neighborhoods and communities to
15 r educe sedimentation and er osion of cr eeks, str eams, and waterways, and to pr otect
16 ecological integrity and envir onmental services pr ovided by natural drainage channels
EXPLANA TION — 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.
17 that run in close pr oximity to res idential areas. The following types of pro jects are
18 eligible for loan funds:
19 (1) Daylighting waterways;
20 (2) Adding or res toring natural flood and catchment capacity to existing
21 waterways;
22 (3) Restoring or r ehabilitating natural culverts or culverts that use natural
23 infrastructur e;
24 (4) Bank stabilization using natural means such as vegetation, trees, or built
25 implements as long as such implements do not compromis e the natural functionality of
26 the creek , stre am, or waterway; and
27 (5) Any other pr oject deemed eligible by the department.
28 3. The following project s shall not be eligible for loans under this section:
29 (1) Lining drainage-ways with impermeable surfaces; and
30 (2) Deploying impermeable surfaces thr oughout a creek, stream, or waterway
31 that covers large swaths of natural ar ea.
32 4. T o be eligible for a loan under this section, a homeowners' association shall be
33 incorporated as a nonpro fit organization under Missouri law .
34 5. The department of natural res ource s shall distribute moneys fr om the fund
35 according to rules and reg ulations promul gated under this section. The distribution
36 shall also be subject to the following:
37 (1) The inter est amount on loans granted under this section shall not exceed the
38 federal funds rate or two per cent, whichever is grea ter;
39 (2) The loan amount shall not exceed eighty per cent of the total cost of a pr oject
40 in a single fiscal year;
41 (3) The terms of the loan shall include a rep ayment schedule of not mor e than
42 ten years; and
43 (4) A homeowners' association shall:
44 (a) Pass an assessment to the homeowners befor e qualifying for a loan under this
45 section. The assessment shall be documented in the minutes of a homeowners'
46 association meeting, indicating the meeting was held with appr opriate notice, a quorum
47 was present , and a vote for the assessment was favorable; and
48 (b) As loan collateral, place liens or contingent liens upon all pr operty wher e
49 impr ovements fr om the pr oject abut or are wholly within the pro perty .
50 6. The department shall establish an application form for homeowners'
51 associations to apply for loans under this section that shall, at a minimum, requ ire
52 homeowners' associations to certify their compliance with the req uirements of this
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53 section and pr ovide any other information the department deems necessary for its
54 decision to award funds.
55 7. The director may pro mulgate all necessary rules and regul ations for the
56 administration of this section. Any rule or portion of a rule, as that term is defined in
57 section 536.010, that is crea ted under the authority delegated in this section shall
58 become effective only if it complies with and is subject to all of the provi sions of chapter
59 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable
60 and if any of the powers vested with the general assembly pursuant to chapter 536 to
61 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently
62 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or
63 adopted after August 28, 2026, shall be invalid and void.
✔
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