SB 636

Under current law, a county, town, city, or village (approving authority) has the

right to approve or object to plat. A plat is a map of a subdivision, which is defined

under current law as a division of a unit of land by an owner for the purpose of a sale

or development and the sale or development results in at least five individual parcels

or building sites. Generally, the location of the subdivision determines which

approving authority or authorities have the right to approve or reject the plat.

Under current law, as a condition of approval, an approving authority may

require a subdivider to execute a surety bond or provide other security to ensure that

certain public improvements are made in connection with a project or a phase of a

project. This bill explicitly allows the subdivider to choose whether to satisfy such

a requirement with a performance bond or a letter of credit. Additionally, under the

bill, upon substantial completion of required public improvements, an approving

authority may not require a subdivider to maintain security in an amount that is

more than the total cost to complete any public improvements that are not completed

plus ten percent of the total cost of the completed public improvement and may not

require the subdivider to maintain the security for more than 12 months from the

date the public improvements are substantially completed. The bill defines

substantial completion as when the binder coat is installed on roads to be dedicated

or, in a case where no roads are to be dedicated, when 90 percent of the public

improvements by cost are completed.