Read the full stored bill text
SECOND REGULAR SESSION
SENATE BILL NO. 1771
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BRATTIN.
7197S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 233, RSMo, by adding thereto two new sections relating to dissolution or
disincorporation of special road districts.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 233, RSMo, is amended by adding thereto 1
two new sections, to be known as sections 233.298 and 233.299, 2
to read as follows:3
233.298. 1. As used in this section, the following 1
terms mean: 2
(1) "Governing authority", the commission, council, or 3
other body which directs the affairs of a special road 4
district; 5
(2) "Inactive", a special road district that is 6
characterized by any of the following criteria: 7
(a) Has not carried out any of the special purposes or 8
functions for which it was formed within the preceding 9
consecutive five-year period; 10
(b) No election has been held for the purpose of 11
electing a member of the governing body within the preceding 12
consecutive seven-year period or, in those instances where 13
members of the governing body are appointed and not elected, 14
where no member of the governing body has been appointed 15
within the preceding seven-year period; or 16
(c) The special road district has been determined to 17
be unauditable by the state auditor; 18
SB 1771 2
(3) "Unauditable", a special road district that the 19
state auditor has determined to be incapable of being 20
audited because the special road district has improperly 21
maintained, failed to maintain, or failed to submit adequate 22
accounts, records, files, or reports for an audit to be 23
completed. 24
2. As an alternative to dissolution of a special road 25
district provided in sections 233.290 and 233.295, a 26
petition for an order of dissolution signed by the majority 27
of the board of commissioners or other governing authority 28
of such district shall be presented to the circuit court of 29
the county in which the board of commissioners is situated. 30
3. Upon the filing of such petition for an order of 31
dissolution, the circuit court shall enter an order setting 32
the same for hearing at a date not less than thirty days 33
from the date of filing, and the petitioner shall give 34
notice of such hearing by publication in a newspaper of 35
general circulation in the county in which the special road 36
district is located once a week for three successive weeks, 37
and by posting in three public places in the county in which 38
the special road district is located at least twenty-one 39
days before said hearing. At least one notice shall be 40
posted in the district. The notices shall set forth the 41
filing of the petition, its purpose, and the date and place 42
of the hearing thereon. 43
4. After said hearing, the court shall enter its order 44
dissolving or refusing to dissolve said special road 45
district. A finding that the best interests of all persons 46
concerned will be served by the proposed dissolution shall 47
be essential to an order of dissolution. If the court finds 48
that such special road district is solvent, the court shall 49
order the sale of such assets, other than cash, by the 50
SB 1771 3
sheriff of the county in which the board is situated, in the 51
manner provided by law for the sale of property on execution. 52
5. The proceeds of the sale, together with moneys on 53
hand in the treasury of the district, shall, after payment 54
of all costs and expenses, be paid to the treasurer of the 55
same county and placed to the credit of the school district, 56
or districts, in which such district is located. 57
6. Upon a finding of insolvency, the court shall then 58
determine the indebtedness of the special road district, the 59
creditors thereof, and their claims. The court shall then 60
set a date and a place for a second hearing, which hearing 61
shall be not less than sixty days nor more than one hundred 62
twenty days from the hearing as provided in subsection 3 of 63
this section. 64
7. The clerk shall give notice of the second hearing 65
by publication in a newspaper of general circulation in the 66
county in which the special road district is located once a 67
week for three successive weeks, and by posting in three 68
public places in the county in which the special road 69
district is located at least twenty-one days before the 70
hearing, and shall give such other notice to creditors and 71
other interested parties as the court may deem necessary or 72
advisable. At least one notice shall be posted in the 73
district. The notices shall set forth the filing of the 74
petition, its purpose, the finding of the court on the 75
petition, the date and place of the second hearing, and the 76
purpose of the hearing as stated in subsection 6 of this 77
section. 78
8. At the second hearing, the court shall have 79
authority to order the sale of any special road district 80
property. If the proceeds of such sale together with any 81
case remaining on hand to the credit of the district are 82
SB 1771 4
insufficient to retire such indebtedness together with all 83
costs and expenses, the court shall have authority to order 84
the board of commissioners to levy assessments in the manner 85
provided by law against the property in the district in 86
amounts sufficient to retire said indebted and pay the costs 87
and expenses. At such hearing, any property owner within 88
the district may appear and be heard for or against such 89
levy. 90
9. After the indebtedness of the special road district 91
has been settled or paid, the court shall determine whether 92
the best interests of all persons concerned will be served 93
by the proposed dissolution and shall make a finding 94
thereon. The court shall then enter its order dissolving or 95
refusing to dissolve said special road district. 96
10. In all proceedings brought under this section, the 97
court shall make provision for the costs and expenses of 98
proceedings hereunder and for the payment of the same. 99
233.299. 1. Special road districts which are located 1
in any county with more than one hundred thousand but fewer 2
than one hundred twenty thousand inhabitants and with a 3
county seat with more than nine thousand but fewer than 4
eleven thousand inhabitants may be disincorporated when the 5
district has not actively carried out any of the special 6
purposes or functions for which it was formed within the 7
preceding consecutive five-year period. 8
2. Upon the filing with the county commission of each 9
county in which the special road district is located of a 10
resolution of any governmental unit calling for the 11
disincorporation of a special district, or upon the filing 12
with the county commission of each county in which the 13
special road district is located of the petition of twenty 14
percent of the voters within the special road district 15
SB 1771 5
calling for the disincorporation of the special road 16
district, the county commission shall hold public hearings 17
to determine whether or not any services have been provided 18
within a consecutive five-year period and whether the best 19
interests of all persons concerned will be served by the 20
proposed dissolution of the special road district. 21
3. If the county commission finds that no services 22
have been provided within the preceding consecutive five- 23
year period and that the best interests of all persons 24
concerned will be served by disincorporating the special 25
road district, it shall order that such action be taken, 26
specify the manner in which it is to be accomplished and 27
supervise the liquidation of any assets and the satisfaction 28
of any outstanding indebtedness. 29
4. If a special road district is disincorporated, the 30
proceeds of the sale of any of its assets, together with 31
money on hand in the treasury of the special road district, 32
shall after payment of all costs and expenses and all 33
outstanding indebtedness be paid to the county treasurer to 34
be placed to the credit of the school district, or 35
districts, in which such special road district is situated. 36
5. If a special road district is disincorporated and 37
the proceeds of the sale of any of its assets, together with 38
money on hand in the treasury of the special road district, 39
are insufficient to retire any outstanding indebtedness, 40
together with all costs and expenses of liquidation, the 41
county commission shall levy assessments in the manner 42
provided by law against the property in the special road 43
district in amounts sufficient to retire the indebtedness 44
and pay the costs and expenses. 45
✓