The Senate met pursuant to adjournment.

     President Pro Tem McKenna in the Chair.

     The Chaplain offered the following prayer:

     Our Father in Heaven, Jesus said, "Whatsoever you would that men should do unto you do you even so unto them." We call this a golden rule and yet often behave as though it had no value. Help us to not only preach it, but to practice it. Help us to apply it to our day by day duties. In Jesus Name we pray. Amen.

     The Pledge of Allegiance to the Flag was recited.

     A quorum being established, the Senate proceeded with its business.

     The Journal for Friday, May 9, 1997, was read and approved.

     The following Senators were present during the day's proceedings:

	Present--Senators
Banks	Bentley	Caskey	Childers
Clay	Curls	DePasco	Ehlmann
Flotron	Goode	Graves	House
Howard	Jacob	Johnson	Kenney
Kinder	Klarich	Lybyer	Mathewson
Maxwell	McKenna	Mueller	Quick
Rohrbach	Russell	Schneider	Scott
Sims	Singleton	Staples	Westfall
Wiggins	Yeckel--34
	Absent with leave--Senators--None
	The Lieutenant Governor was present.

     Senator Clay offered Senate Resolution No. 820, regarding the Missouri Chapter of the African American Lutheran Association of the Evangelical Lutheran Church in America, which was adopted.

     Senator Clay offered Senate Resolution No. 821, regarding Mr. Earl Wilson, Jr., St. Louis, which was adopted.

     Senator Mathewson moved that HCS for HB 589, with SCS and SS for SCS, as amended, (pending), be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     SS for SCS for HCS for HB 589, as amended, was again taken up.

     Senator House offered SA 5:

     Amend Senate Substitute for Senate Committee Substitute for House Committee Substitute for House Bill No. 589, Page 38, Section 536.028, Line 28, by inserting immediately after all of said line, the following:

     "Section 1. The Director of the Department of Economic Development shall notify all businesses affected by Section 172.273, RSMo, in any county of the first classification with a population of at least two hundred thousand inhabitants that adjoins a county of the first classification with a population of at least nine hundred thousand inhabitants that the provisions of subsections 3 and 8 of section 172.273, RSMo, shall expire January 1, 1999 and said subsections shall expire on January 1, 1999."; and

     Further amend the title and enacting clause accordingly.

     Senator House moved that the above amendment be adopted, which motion prevailed.

     Senator Wiggins assumed the Chair.

     Senator Jacob offered SA 6, which was read:

     Amend Senate Substitute for Senate Committee Substitute for House Committee Substitute for House Bill No. 589, Page 17, Section 99.820, Line 2, by inserting immediately after said line the following:

     "4. For purposes of this section, section 99.460 and Section 353.130, RSMo, no authority, city, county or urban redevelopment corporation shall have the right to acquire any real property by exercise of its power of eminent domain or use general revenue or other funds acquired by said authority to acquire real property, for the purpose of creating an excursion gambling boat project that is licensed or will be licensed pursuant to the provisions of sections 313.800 to 313.850, RSMo, by the Missouri gaming commission.".

     Senator Jacob moved that the above amendment be adopted and requested a roll call vote be taken. He was joined in his request by Senators Mathewson, Singleton, Kenney and Westfall.

     Senator Rohrbach offered SA 1 to SA 6, which was read:

     Amend Senate Amendment No. 6 to Senate Substitute for Senate Committee Substitute for House Committee Substitute for House Bill No. 589, Page 1, Section 99.820, Line 9, by deleting all of said line and inserting in lieu thereof the following: "pursuant to a license applied for after the effective date of this act under the provisions".

     Senator Rohrbach moved that the above amendment be adopted, which motion failed.

     Senator Johnson assumed the Chair.

     SA 6 was adopted by the following vote:

	Yeas--Senators
Banks	Bentley	Caskey	Childers
Clay	DePasco	Ehlmann	Goode
Graves	House	Howard	Jacob
Johnson	Kenney	Kinder	Klarich
Lybyer	McKenna	Mueller	Schneider
Sims	Singleton	Westfall--23
	Nays--Senators
Curls	Flotron	Mathewson	Maxwell
Quick	Rohrbach	Scott	Staples
Wiggins	Yeckel--10
	Absent--Senators--Russell--1
	Absent with leave--Senators--None

     Having voted on the prevailing side, Senator Klarich moved that the vote by which SA 4 to SS for SCS for HCS for HB 589 was adopted, be reconsidered, which motion prevailed by the following vote:

	Yeas--Senators
Banks	Caskey	Childers	Clay
Curls	DePasco	House	Johnson
Kenney	Klarich	Mathewson	Maxwell
McKenna	Quick	Scott	Staples
Wiggins	Yeckel--18
	Nays--Senators
Bentley	Ehlmann	Flotron	Goode
Graves	Howard	Jacob	Kinder
Lybyer	Mueller	Rohrbach	Schneider
Sims	Singleton	Westfall--15
	Absent--Senators--Russell--1
	Absent with leave--Senators--None

     SA 4 was again taken up.

     At the request of Senator Mathewson, HCS for HB 589, with SCS, SS for SCS, as amended, and SA 4 (pending), was placed on the Informal Calendar.

     HB 207, with SCS, introduced by Representative Koller, entitled:

     An Act to repeal section 301.560, RSMo Supp. 1996, relating to the motor vehicle commission, and to enact in lieu thereof one new section relating to the same subject.

     Was called from the Informal Calendar and taken up by Senator Staples.

     SCS for HB 207, entitled:

     An Act to repeal sections 301.280, 301.550, 301.555, 301.557, 301.559, 301.562, 301.563, 301.564, 301.565, 301.568, 301.572 and 301.573, RSMo 1994, and sections 301.553, 301.560, 301.566 and 301.570, RSMo Supp. 1996, relating to the motor vehicle commission, and to enact in lieu thereof sixteen new sections relating to the same subject, with an emergency clause.

     Was taken up.

     Senator Staples moved that SCS for HB 207 be adopted.

     Senator Staples offered SS for SCS for HB 207, entitled:

     An Act to repeal sections 301.280, 301.550, 301.555, 301.557, 301.559, 301.562, 301.563, 301.564, 301.565, 301.572 and 301.573, RSMo 1994, and sections 301.553, 301.560, 301.566 and 301.570, RSMo Supp. 1996, relating to the motor vehicle commission, and to enact in lieu thereof fifteen new sections relating to the same subject, with an emergency clause.

     Senator Staples moved that SS for SCS for HB 207 be adopted.

     At the request of Senator Staples, HB 207, with SCS and SS for SCS (pending), was placed on the Informal Calendar.

     Senator Quick moved that HCS for HB 620, with SS (pending), be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     SS for HCS for HB 620 was again taken up.

     Senator Mathewson assumed the Chair.

     Senator Mueller offered SA 1, which was read:

     Amend Senate Substitute for House Committee Substitute for House Bill No. 620, Page 4, Section 392.410, Line 7, by deleting all of said line.

     Senator Mueller moved that the above amendment be adopted.

     At the request of Senator Quick, HCS for HB 620, with SS and SA 1 (pending), was placed on the Informal Calendar.

     Senator Caskey moved that the Senate refuse to concur in HCS for SS for SB 11, as amended, and request the House to recede from its position, or failing to do so, grant the Senate a conference thereon, which motion prevailed.

     President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on SS for SCS for HS for HCS for HB 335, as amended: Senators Maxwell, Wiggins, Howard, Sims and Westfall.

     On motion of Senator Quick, the Senate adjourned until 2:00 p.m.

     The time of recess having expired, the Senate was called to order by President Pro Tem McKenna.

     Senator Singleton offered Senate Resolution No. 822, regarding Mr. Gene Doughty, Fairview, which was adopted.

     Senator Scott, Chairman of the Committee on State Budget Control, submitted the following report:

     Mr. President: Your Committee on State Budget Control, to which was referred HS for HCS for HB 472, with SCA 1, begs leave to report that it has considered the same and recommends that the bill do pass.

     The following messages were received from the House of Representatives through its Chief Clerk:

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to adopt SS for HB 791 and requests the Senate to Recede from its position and failing to do so, grant the House a conference thereon.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken and adopted the Conference Committee Report on HCS for SB 132, as amended, and has taken up and passed HCS for SB 132, as amended by the Conference Committee Report.

     Bill ordered enrolled.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken and adopted the Conference Committee Report on HS for HCS for SB 142 and has taken up and passed CCS for SB 142.

     Bill ordered enrolled.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken and adopted the Conference Committee Report on HCS for SB 347, as amended, and has taken up and passed CCS for SB 347.

     Bill ordered enrolled.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House grants the Senate further conference on HCS for HBs 600 and 388 and the conferees be allowed to exceed the differences.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the Speaker has re-appointed the following conferees to act with a like committee from the Senate on HCS for HBs 600 and 388: Representatives: Carter, Harlan, Luetkenhaus, Sallee and Wooten.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to recede from its position on HS for HCS for SCS for SB 89, as amended, and grants the Senate a conference thereon.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to recede from its position on HS for HCS for SS for SB 121, as amended, and grants the Senate a conference thereon.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken and adopted the Conference Committee Report on SCS for HB 816 and has taken up and passed SCS for HB 816, as amended by the Conference Committee Report.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to recede from its position on HCS for SS for SB 11, as amended, and grants the Senate a conference thereon.

     Senator Howard moved that the Senate conferees on HCS for HBs 600 and 388, as amended, be allowed to exceed the differences, which motion prevailed.

     President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on HS for HCS for SCS for SB 89, as amended: Senators Mathewson, Scott, Caskey, Westfall and Russell.

     Also,

     President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on HCS for SS for SB 11, as amended: Senators Caskey, Mathewson, Scott, Graves and Westfall.

     Also,

     President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on HS for HCS for SS for SB 121, as amended: Senators Caskey, Curls, Wiggins, Graves and Sims.

     Also,

     President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on HCS for HBs 600 and 388, as amended: Senators Howard, Banks, Clay, Klarich and Sims.

     Senator Mathewson, on behalf of the conference committee appointed to act with a like committee from the House on SCS for HB 816, as amended, submitted the following conference committee report:

     Mr. President: Your Conference Committee, appointed to confer with a like committee of the House on Senate Committee Substitute for House Bill No. 816, begs leave to report that we, after free and fair discussion of the differences between the House and the Senate, have agreed to recommend and do recommend to the respective bodies as follows:

     1. That the House recede from its position on Senate Committee Substitute for House Bill No. 816;

     2. That the attached Conference Committee Amendment No. 1 to Senate Committee Substitute for House Bill No. 816 be adopted;

     3. That the Senate Committee Substitute for House Bill No. 816 with Conference Committee Amendment No. 1 be passed.

FOR THE SENATE:     FOR THE HOUSE:

/s/ Jim Mathewson      /s/ Marilyn Williams

/s/ Mike Lybyer      /s/ Larry Thomason

/s/ Doyle Childers      /s/ Doug Gaston

/s/ Marvin Singleton      /s/ Sam Leake

/s/ Jerry Howard      /s/ Ken Legan

     Amend Senate Committee Substitute for House Bill No. 816, Page 4, Section 650.325, Line 2, by inserting immediately before the word "Committee" the following: "Advisory"; and

     Further amend said bill, Page 6, Section 650.330, Line 63, by inserting immediately before the word "mediation" the word "requested"; and

     Further amend said bill, Page 6, Section 650.330, Line 64, by inserting immediately after the word "services" the following: ", however, said committee shall not supersede decision making authority of local political subdivisions in regard to 911 services".

     Senator Mathewson moved that the above conference committee report be adopted, which motion prevailed by the following vote:

	Yeas--Senators
Banks	Bentley	Caskey	Childers
DePasco	Flotron	Goode	House
Howard	Jacob	Johnson	Kenney
Kinder	Klarich	Lybyer	Mathewson
Maxwell	McKenna	Mueller	Quick
Rohrbach	Russell	Schneider	Scott
Sims	Singleton	Staples	Westfall
Wiggins	Yeckel--30
	Nays--Senators--None
	Absent--Senators
Clay	Curls	Ehlmann	Graves--4
	Absent with leave--Senators--None

     On motion of Senator Mathewson, SCS for HB 816, as amended by the conference committee report, was read the 3rd time and passed by the following vote:

	Yeas--Senators
Banks	Bentley	Caskey	Childers
Curls	DePasco	Ehlmann	Flotron
Goode	Graves	House	Howard
Jacob	Johnson	Kenney	Kinder
Klarich	Lybyer	Mathewson	Maxwell
McKenna	Mueller	Quick	Rohrbach
Russell	Schneider	Scott	Sims
Singleton	Westfall	Wiggins	Yeckel--32
	Nays--Senators--None
	Absent--Senators
Clay	Staples--2
	Absent with leave--Senators--None

     The President Pro Tem declared the bill passed.

     On motion of Senator Mathewson, title to the bill was agreed to.

     Senator Mathewson moved that the vote by which the bill passed be reconsidered.

     Senator Quick moved that motion lay on the table, which motion prevailed.

     Senator Quick moved that HCS for HB 620, with SS and SA 1 (pending), be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     SA 1 was again taken up.

     At the request of Senator Mueller, the above amendment was withdrawn.

     Senator Bentley offered SA 2:

     Amend Senate Substitute for House Committee Substitute for House Bill No. 620, Section 392.410, Page 4, Line 7, by adding after the word "service" the following: "or internet type services".

     Senator Bentley moved that the above amendment be adopted, which motion failed on a standing division vote.

     Senator Klarich offered SA 3:

     Amend Senate Substitute for House Committee Substitute for House Bill No. 620, Page 5, Section 392.410.7(4), by adding the following:

     "(5) The political subdivision shall be liable in the same manner as if the services were provided by a non-governmental person for injury caused to any person by reason of negligence.".

     Senator Klarich moved that the above amendment be adopted, which motion prevailed.

     Senator Goode moved that SS for HCS for HB 620, as amended, be adopted, which motion failed on a standing division vote.

     HCS for HB 620 was again taken up.

     Senator Jacob offered SA 1, which was read:

     Amend House Committee Substitute for House Bill No. 620, Page 3, Section 392.410, Line 57, by inserting immediately after all of said line the following:

     "Section 1. No state or local statute or regulation, or any other state or local legal requirement may prohibit or have the effect of prohibiting the ability of any entity to provide any intrastate telecommunications service."; and

     Further amend the title and enacting clause accordingly.

     Senator Jacob moved that the above amendment be adopted, which motion failed.

     Senator Wiggins resumed the Chair.

     Senator Jacob offered SA 2:

     Amend House Committee Substitute for House Bill No. 620, Page 3, Section 392.410, Line 57, by adding after said line the following:

     "8. If after one year from the effective date of this Act there is still only one provider of local exchange telecommunication services a political subdivision may provide the additional telecommunication services to:

     (1) An area designated by the political subdivision as an industrial park;

     (2) A municipal airport; and

     (3) Any governmental facility.

     9. If after three years from the effective date of this Act there is only one local exchange telecommunications provider a political subdivsion may lease any telecommunications service to a telecommunication provider or facility.".

     Senator Jacob moved that the above amendment be adopted.

     Senator Ehlmann offered SSA 1 for SA 2, which was read:

     Amend House Committee Substitute for House Bill No. 620, Page 3, Section 392.410, Line 57, by adding the following: "The provisions of this subsection shall expire on August 28, 2002.".

     Senator Ehlmann moved that the above substitute amendment be adopted.

     Senator Bentley offered SA 1 to SSA 1 for SA 2, which was read:

     Amend Senate Substitute Amendment No. 1 for Senate Amendment No. 2 to House Committee Substitute for House Bill No. 620, by inserting the word "2000" and deleting the word "2002".

     Senator Bentley moved that the above amendment be adopted, which motion failed.

     SSA 1 for SA 2 was again taken up.

     Senator Ehlmann moved that the above substitute amendment be adopted, which motion prevailed.

     Senator Bentley offered SA 3:

     Amend House Committee Substitute for House Bill No. 620, Page 3, Section 392.410, Line 56, by striking the word "or" and further amend line 57, by inserting after the word "institution" the following: "; or

     (5) Internet type services".

     Senator Bentley moved that the above amendment be adopted, which motion prevailed.

     On motion of Senator Quick, HCS for HB 620, as amended, was read the 3rd time and passed by the following vote:

	Yeas--Senators
Bentley	Caskey	Childers	Clay
Curls	DePasco	Ehlmann	Graves
House	Howard	Johnson	Kenney
Kinder	Klarich	Lybyer	Mathewson
Maxwell	Mueller	Quick	Rohrbach
Scott	Sims	Singleton	Staples
Westfall	Wiggins	Yeckel--27
	Nays--Senators
Goode	Jacob--2
	Absent--Senators
Banks	Flotron	McKenna	Russell
Schneider--5
	Absent with leave--Senators--None

     The President declared the bill passed.

     On motion of Senator Quick, title to the bill was agreed to.

     Senator Quick moved that the vote by which the bill passed be reconsidered.

     Senator Staples moved that motion lay on the table, which motion prevailed.

     Senator Staples moved that HB 207, with SCS and SS for SCS (pending), be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     SS for SCS for HB 207 was again taken up.

     Senator Mathewson assumed the Chair.

     Senator Staples offered SA 1:

     Amend Senate Substitute for Senate Committee Substitute for House Bill No. 207, Page 30, Section 301.566, Line 14, by inserting after the word "location." the following: "Nothing contained in this section shall be construed as applying to the sale of motor vehicle or trailer through either a wholesale motor vehicle auction or public motor vehicle auction.".

     Senator Staples moved that the above amendment be adopted, which motion prevailed.

     Senator Goode offered SA 2:

     Amend Senate Substitute for Senate Committee Substitute for House Bill No. 207, Page 1, In the Title, Line 6, by striking the following: "the motor vehicle commission" and inserting in lieu thereof the following: "motor vehicles"; and further amend line 8, by striking the following: "emergency clause" and inserting in lieu thereof the following: "effective date for certain sections and an emergency clause for certain sections"; and

     Further amend said bill, page 34, section 301.573, line 26, by inserting immediately after all of said line the following:

     "303.024. 1. Each insurer issuing motor vehicle liability policies in this state, or an agent of the insurer, shall furnish an insurance identification card to the named insured for each motor vehicle insured by a motor vehicle liability policy that complies with the requirements of sections 303.010 to 303.050, 303.060, 303.140, 303.220, 303.290, 303.330 and 303.370.

     2. The insurance identification card shall include all of the following information:

     (1) The name and address of the insurer;

     (2) The name of the named insured;

     (3) The policy number;

     (4) The effective dates of the policy, including month, day and year;

     (5) A description of the insured motor vehicle, including year and make or at least five digits of the vehicle identification number or the word "Fleet" if the insurance policy covers five or more motor vehicles; and

     (6) The statement "THIS CARD MUST BE CARRIED IN THE INSURED MOTOR VEHICLE FOR PRODUCTION UPON DEMAND" prominently displayed on the card.

     3. A new insurance identification card shall be issued when the insured motor vehicle is changed, when an additional motor vehicle is insured, and when a new policy number is assigned. A replacement insurance identification card shall be issued at the request of the insured in the event of loss of the original insurance identification card.

     4. The director shall furnish each self-insurer, as provided for in section 303.220, an insurance identification card for each motor vehicle so insured. The insurance identification card shall include all of the following information:

     (1) Name of the self-insurer;

     (2) The word "self-insured"; and

     (3) The statement "THIS CARD MUST BE CARRIED IN THE SELF-INSURED MOTOR VEHICLE FOR PRODUCTION UPON DEMAND" prominently displayed on the card.

     5. An insurance identification card shall be carried in the insured motor vehicle at all times. The operator of an insured motor vehicle shall exhibit the insurance identification card on the demand of any peace officer who lawfully stops such operator or investigates an accident while that officer is engaged in the performance of the officer's duties [of his office]. If the operator fails to exhibit an insurance identification card, the officer shall notify the director of revenue, in the manner determined by the director, and the officer may issue a citation to the operator pursuant to subsection 6 of this section. A motor vehicle liability insurance policy, a motor vehicle liability insurance binder, or receipt which contains the policy information required in subsection 2 of this section, shall be satisfactory evidence of insurance in lieu of an insurance identification card.

     6. Any person failing to exhibit an insurance identification card or other satisfactory evidence of insurance in lieu of such card upon the demand of any peace officer pursuant to this section is guilty of a class C misdemeanor. However, no person shall be found guilty of violating this section if the operator demonstrates to the court that he or she met the financial responsibility requirements of section 303.025 at the time the peace officer wrote the citation.

     303.025. 1. No owner of a motor vehicle registered in this state, or required to be registered in this state, shall operate the vehicle, or authorize any other person to operate the vehicle, unless the owner maintains the financial responsibility as required in this section. Furthermore, no person shall operate a motor vehicle owned by another with the knowledge that the owner has not maintained financial responsibility unless such person has financial responsibility which covers [his] the person's operation of the other's vehicle. Any person who violates this section is guilty of a class C misdemeanor.

     2. A motor vehicle owner shall maintain [his] the owner's financial responsibility in a manner provided for in section 303.160, or with a motor vehicle liability policy which conforms to the requirements of the laws of this state.

     3. Nothing in sections 303.010 to 303.050, 303.060, 303.140, 303.220, 303.290, 303.330 and 303.370 shall be construed as prohibiting the department of insurance from approving or authorizing those exclusions and limitations which are contained in automobile liability insurance policies and the uninsured motorist provisions of automobile liability insurance policies.

     303.026. 1. The director shall inform each owner who registers a motor vehicle of the following:

     (1) The existence of the requirement that every motor vehicle owner in the state must maintain his financial responsibility;

     (2) The requirement that every motor vehicle owner show an insurance identification card, or a copy thereof, or other proof of financial responsibility at the time of vehicle registration; this notice shall be given at least thirty days prior to the month for renewal and shall be shown in bold, colored print;

     [(2)] (3) The penalties which apply to violations of the requirement to maintain financial responsibility;

     [(3)] (4) The benefits of maintaining coverages in excess of those which are required;

     [(4)] (5) The director's authority to conduct samples of Missouri motor vehicle owners to insure compliance.

     2. No motor vehicle owner shall be issued registration for a vehicle unless the owner, or his authorized agent, signs a [statement] affidavit provided by the director of revenue at the time of registration of the vehicle certifying that such owner has and will maintain, during the period of registration, financial responsibility with respect to each motor vehicle that is owned, licensed or operated on the streets or highways. The affidavit need not be notarized, but it shall be acknowledged by the person processing the form. The affidavit shall state clearly and in bold print the following: "Any false affidavit is a crime under section 575.050 of Missouri law." In addition, every motor vehicle owner shall show proof of such financial responsibility by presenting his or her insurance identification card, as described in section 303.024, or a copy thereof, or some other proof of financial responsibility in the form prescribed by the director of revenue at the time of registration unless such owner registers his vehicle in conjunction with a reciprocity agreement entered into by the Missouri highway reciprocity commission pursuant to sections 301.271 to 301.279, RSMo, or unless the owner insures the vehicle according to the requirements of the division of motor carrier and railroad safety pursuant to section 390.126, RSMo.

     3. The director shall annually select for financial responsibility verification, a sample of the motor vehicle registrations or licenses which is statistically significant to determine the number of insured motorists in the state of Missouri, or to insure compliance. The director may utilize a variety of sampling techniques including but not limited to the processing of uniform traffic tickets, point system warning letters, and random surveys of motor vehicle registrations. The director of revenue may verify the financial responsibility of any person reported under section 303.040.

     4. Upon determination that the information provided by the owner or authorized agent is inaccurate, the director shall notify the owner of the need to provide, within thirty days, information establishing the existence of the required financial responsibility as of the date of such notice. Failure to provide such information shall result in the suspension of all registrations of the owner's motor vehicles failing to meet such requirements, as is provided in section 303.041.

     303.030. 1. If within twenty days after the receipt of a report of a motor vehicle accident within this state which has resulted in bodily injury or death, or damage to the property of any one person in excess of five hundred dollars, the director does not have on file evidence satisfactory to him that the person who would otherwise be required to file security under subsection 2 of this section has been released from liability, or has been finally adjudicated not to be liable, or has executed a duly acknowledged written agreement providing for the payment of an agreed amount in installments with respect to all claims for injuries or damages resulting from the accident, the director shall determine the amount of security which shall be sufficient in his judgment to satisfy any judgment for damages resulting from such accident as may be recovered against each operator or owner. Any person challenging the director's determination shall have the burden of proving he or she was not at fault.

     2. The director shall, within ninety days after the receipt of such report of a motor vehicle accident, suspend the license of each operator, and all registrations of each owner of a motor vehicle, in any manner involved in such accident, and if such operator is a nonresident the privilege of operating a motor vehicle within this state, and if such owner is a nonresident the privilege of the use within this state of any motor vehicle owned by him, unless such operator or owner or both shall deposit security in the sum so determined by the director; provided notice of such suspension shall be sent by the director to such operator and owner not less than ten days prior to the effective date of such suspension and shall state the amount required as security; provided, however, that the period of suspension provided for in this section shall be in addition to any period of suspension imposed under sections 303.041 and 303.042.

     3. Where erroneous information is given the director with respect to the matters set forth in subdivision (1), (2) or (3) of subsection 4 of this section, he shall take appropriate action as hereinbefore provided, within forty-five days after receipt by him of correct information with respect to said matters.

     4. This section shall not apply under the conditions stated in section 303.070, nor:

     (1) To such operator or owner if such owner had in effect at the time of such accident an automobile liability policy with respect to the motor vehicle involved in such accident;

     (2) To such operator, if not the owner of such motor vehicle, if there was in effect at the time of such accident an automobile liability policy or bond with respect to his operation of motor vehicles not owned by him;

     (3) To such operator or owner if the liability of such operator or owner for damages resulting from such accident is, in the judgment of the director, covered by any other form of liability insurance policy or bond; nor

     (4) To any person qualifying as a self-insurer under section 303.220, nor to any person operating a motor vehicle for such self-insurer.

     5. No such policy or bond shall be effective under this section unless issued by an insurance company or surety company authorized to do business in this state, except that if such motor vehicle was not registered in this state, or was a motor vehicle which was registered elsewhere than in this state at the effective date of the policy or bond, or the most recent renewal thereof, such policy or bond shall not be effective under this section unless the insurance company or surety company, if not authorized to do business in this state, shall execute a power of attorney authorizing the director to accept service on its behalf of notice or process in any action upon such policy or bond arising out of such accident; provided, however, every such policy or bond is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than twenty-five thousand dollars because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, to a limit of not less than fifty thousand dollars because of bodily injury to or death of two or more persons in any one accident, and, if the accident has resulted in injury to or destruction of property, to a limit of not less than ten thousand dollars because of injury to or destruction of property of others in any one accident.

     303.043. Whenever a suspension is imposed under section 303.041, [the following] a reinstatement [fees] fee of twenty dollars shall be paid before the license may be reinstated. [prior to the end of the period of suspension provided in subsection 2 of section 303.042, and in the event such reinstatement fees are not paid the period of suspension shall be extended until such fees have been paid:

(1) If the person's driving record shows no prior failure to maintain the required financial responsibility as provided for in section 303.025, the reinstatement fee shall be two hundred dollars;

(2) If the person's driving record shows one prior suspension for failure to maintain the required financial responsibility as provided for in section 303.025, the reinstatement fee shall be four hundred dollars;

(3) If the person's driving record shows two or more prior suspensions for failure to maintain the required financial responsibility as provided for in section 303.025, the reinstatement fee shall be eight hundred dollars.]

     Section B. The repeal and reenactment of sections 303.024, 303.025, 303.026, 303.030 and 303.043 of this act shall become effective on January 1, 1998."; and

     Further amend said bill, page 34, section B, line 27, by striking the following: "B" and inserting in lieu thereof the following: "C"; and further amend line 29, by striking the following: "this act is" and inserting in lieu thereof the following: "sections 301.280, 301.550, 301.553, 301.555, 301.557, 301.559, 301.560, 301.561, 301.562, 301.563, 301.564, 301.565, 301.566, 301.568, 301.570 and 301.573 of this act are"; and further amend line 31, by striking the word "is" and inserting in lieu thereof the word "are"; and further on page 27, line 32, by inserting immediately before "this act" the following: "sections 301.280, 301.550, 301.553, 301.555, 301.557, 301.559, 301.560, 301.561, 301.562, 301.563, 301.564, 301.565, 301.566, 301.568, 301.570 and 301.573 of"; and

     Further amend the title and enacting clause accordingly.

     Senator Goode moved that the above amendment be adopted.

     Senator Staples raised the point of order that SA 2 is out of order in that the amendment goes beyond the subject matter of the bill.

     The point of order was referred to the President Pro Tem.

     At the request of Senator Staples, HB 207, with SCS, SS for SCS, SA 2 and the point of order (pending), was placed on the Informal Calendar.

     HS for HCS for HB 472, with SCA 1, entitled:

     An Act to repeal section 288.038, RSMo 1994, and sections 288.036, 288.040, and 288.050, RSMo Supp. 1996, relating to unemployment compen-sation, and to enact in lieu thereof four new sections relating to the same subject.

     Was taken up by Senator Klarich.

     SCA 1 was taken up.

     Senator Klarich moved that the above amendment be adopted, which motion prevailed.

     Senator Mathewson offered SA 1:

     Amend House Substitute for House Committee Substitute for House Bill No. 472, Page 1, In the Title, Line 3, by striking the words "unemployment compensation" and inserting in lieu thereof the following: "the department of labor and industrial relations programs"; and

     Further amend said bill, Page 1, In the Title, Line 4, by inserting immediately after the word "subject" the following: ", with an effective date"; and

     Further amend said bill, Page 1, Section A, Line 3, by inserting immediately after all of said line the following:

     "287.020. 1. The word "employee" as used in this chapter shall be construed to mean every person in the service of any employer, as defined in this chapter, under any contract of hire, express or implied, oral or written, or under any appointment or election, including executive officers of corporations. Any reference to any employee who has been injured shall, when the employee is dead, also include his dependents, and other persons to whom compensation may be payable. The word "employee" shall also include all minors who work for an employer, whether or not such minors are employed in violation of law, and all such minors are hereby made of full age for all purposes under, in connection with, or arising out of this chapter. [The word "employee" shall not include an individual who is the owner and operator of a motor vehicle which is leased or contracted with a driver to a for-hire common or contract motor vehicle carrier operating within a commercial zone as defined in section 390.020 or 390.041, RSMo, or operating under a certificate issued by the transportation division of the department of economic development or by the interstate commerce commission.]

     2. The word "accident" as used in this chapter shall, unless a different meaning is clearly indicated by the context, be construed to mean an unexpected or unforeseen identifiable event or series of events happening suddenly and violently, with or without human fault, and producing at the time objective symptoms of an injury. An injury is compensable if it is clearly work related. An injury is clearly work related if work was a substantial factor in the cause of the resulting medical condition or disability. An injury is not compensable merely because work was a triggering or precipitating factor.

     3. (1) In this chapter the term "injury" is hereby defined to be an injury which has arisen out of and in the course of employment. The injury must be incidental to and not independent of the relation of employer and employee. Ordinary, gradual deterioration or progressive degeneration of the body caused by aging shall not be compensable, except where the deterioration or degeneration follows as an incident of employment.

     (2) An injury shall be deemed to arise out of and in the course of the employment only if:

     (a) It is reasonably apparent, upon consideration of all the circumstances, that the employment is a substantial factor in causing the injury; and

     (b) It can be seen to have followed as a natural incident of the work; and

     (c) It can be fairly traced to the employment as a proximate cause; and

     (d) It does not come from a hazard or risk unrelated to the employment to which workers would have been equally exposed outside of and unrelated to the employment in normal nonemployment life;

     (3) The terms "injury" and "personal injuries" shall mean violence to the physical structure of the body and to the personal property which is used to make up the physical structure of the body, such as artificial dentures, artificial limbs, glass eyes, eyeglasses, and other prostheses which are placed in or on the body to replace the physical structure and such disease or infection as naturally results therefrom. These terms shall in no case except as specifically provided in this chapter be construed to include occupational disease in any form, nor shall they be construed to include any contagious or infectious disease contracted during the course of the employment, nor shall they include death due to natural causes occurring while the worker is at work.

     4. "Death" when mentioned as a basis for the right to compensation means only death resulting from such violence and its resultant effects occurring within three hundred weeks after the accident; except that in cases of occupational disease, the limitation of three hundred weeks shall not be applicable.

     5. Without otherwise affecting either the meaning or interpretation of the abridged clause, "personal injuries arising out of and in the course of such employment", it is hereby declared not to cover workers except while engaged in or about the premises where their duties are being performed, or where their services require their presence as a part of such service.

     6. A person who is employed by the same employer for more than five and one-half consecutive work days shall for the purpose of this chapter be considered an "employee".

     7. The term "total disability" as used in this chapter shall mean inability to return to any employment and not merely mean inability to return to the employment in which the employee was engaged at the time of the accident.

     8. As used in this chapter and all acts amendatory thereof, the term "commission" shall hereafter be construed as meaning and referring exclusively to the labor and industrial relations commission of Missouri, and the term "director" shall hereafter be construed as meaning the director of the department of insurance of the state of Missouri or such agency of government as shall exercise the powers and duties now conferred and imposed upon the department of insurance of the state of Missouri.

     9. The term "division" as used in this chapter means the division of workers' compensation of the department of labor and industrial relations of the state of Missouri.

     10. For the purposes of this chapter, the term "minor" means a person who has not attained the age of eighteen years; except that, for the purpose of computing the compensation provided for in this chapter, the provisions of section 287.250 shall control.

     287.030. 1. The word "employer" as used in this chapter shall be construed to mean:

     (1) Every person, or sole proprietor, limited liability partners, partners or copartners comprising a partnership, association, corporation, trustee, receiver, the legal representatives of a deceased employer, and every other person, including any person or corporation operating a railroad and any public service corporation, using the service of another for pay;

     (2) The state, county, municipal corporation, township, school or road, drainage, swamp and levee districts, or school boards, board of education, regents, curators, managers or control commission, board or any other political subdivision, corporation, or quasi-corporation, or cities under special charter, or under the commission form of government;

     (3) Any of the above defined employers must have five or more employees to be deemed an employer for the purposes of this chapter unless election is made to become subject to the provisions of this chapter as provided in subsection 2 of section 287.090, except that construction industry employers who erect, demolish, alter or repair improvements shall be deemed an employer for the purposes of this chapter if they have one or more employees.

     2. Any reference to the employer shall also include his insurer.

     [287.037. Notwithstanding any other provision of law to the contrary, beginning January 1, 1997, those insurance companies providing coverage pursuant to chapter 287, to a limited liability company, as defined in section 347.015, RSMo, shall provide coverage for the employees of the limited liability company who are not members of the limited liability company. Members of the limited liability company, as defined in section 347.015, RSMo, shall also be provided coverage pursuant to chapter 287, but such members may individually elect to reject such coverage by providing a written notice of such rejection on a form developed by the department of insurance to the limited liability company and its insurer. Failure to provide notice to the limited liability company shall not be grounds for any member to claim that the rejection of such coverage is not legally effective. A member who elects to reject such coverage shall not thereafter be entitled to workers' compensation benefits under the policy, even if serving or working in the capacity of an employee of the limited liability company, at least until such time as said member provides the limited liability company and its insurer with a written notice which rescinds the prior rejection of such coverage. The written notice which rescinds the prior rejection of such coverage shall be on a form developed by the department of insurance. Any rescission shall be prospective in nature and shall entitle the member only to such benefits which accrue on or after the date the notice of rescission form is received by the insurance company.]

     287.061. 1. Any city or county which issues an occupational or business license for a contractor in the construction industry shall require a certificate of insurance for workers' compensation coverage [if the applicant for the license is required to cover his liability under this chapter.] or an affidavit, the form of which shall be provided by the division of worker's compensation, signed by the applicant attesting that he or she is exempt.

     2. Any [applicant] contractor who fails to comply with the provisions of subsection 1 of this section shall be denied such a license until [he] such person furnishes a certificate of insurance.

     3. It is unlawful, pursuant to section 287.128, for any [applicant] contractor to provide fraudulent information pursuant to this section.

     4. Nothing in this section shall be construed to create or constitute a liability to or a cause of action against a city or county in regard to the issuance of any license pursuant to this section.

     [287.090. 1. This chapter shall not apply to:

     (1) Employment of farm labor, domestic servants in a private home, including family chauffeurs, or occasional labor performed for and related to a private household;

     (2) Any worker who is a member of the employer's family within the third degree of affinity or consanguinity but such shall be included in the total number of employees of such employer for purposes of subdivision (3) of subsection 1 of section 287.030;

     (3) Qualified real estate agents and direct sellers as those terms are defined in section 3508 of title 26 United States Code;

     (4) Employment where the person employed is an inmate confined in a state prison, penitentiary or county or municipal jail, or a patient or resident in a state mental health facility, and the labor or services of such inmate, patient, or resident are exclusively on behalf of the state, county or municipality having custody of said inmate, patient, or resident. Nothing in this subdivision is intended to exempt employment where the inmate, patient or resident was hired by a state, county or municipal government agency after direct competition with persons who are not inmates, patients or residents and the compensation for the position of employment is not contingent upon or affected by the worker's status as an inmate, patient or resident;

     (5) Volunteers of a tax-exempt organization which operates under the standards of section 501(c)(3) of the federal Internal Revenue Code, where such volunteers are not paid wages, but provide services purely on a charitable and voluntary basis;

     (6) Persons providing services as adjudicators, sports officials, or contest workers for interscholastic activities programs or similar amateur youth programs who are not otherwise employed by the sponsoring school, association of schools or nonprofit tax-exempt organization sponsoring the amateur youth programs.

     2. Any employer in this section exempted under subsection 1 of this section may bring himself within the provisions of this chapter by filing with the division notice of his election to accept the provisions, or by the purchasing and accepting by the employer of a valid compensation insurance policy, and the election by the purchase and acceptance of the insurance policy shall include the exempted employments described in subsection 1 of this section if such intent is shown by the terms of the policy. The election shall take effect and continue from the date of filing with the division by the employer of his election to accept liability under this chapter, or from the effective date of the insurance policy. Any employer electing to become liable under this chapter may withdraw his election by filing with the division a notice that he desires to withdraw his election, which withdrawal shall take effect thirty days after the date of the filing, or at such later date as may be specified in the notice of withdrawal.

     3. Any insurance company authorized to write insurance under the provisions of this chapter in this state shall file with the division a memorandum on a form prescribed by the division of any workers' compensation policy issued to any employer and of any renewal or cancellation thereof.

     4. The mandatory coverage sections of this chapter shall not apply to the employment of any member of a family owning a family farm corporation as defined in section 350.010, RSMo, or to the employment of any salaried officer of a family farm corporation organized pursuant to the laws of this state, but such family members and officers of such family farm corporations may be covered under a policy of workers' compensation insurance if approved by a resolution of the board of directors. Nothing in this subsection shall be construed to apply to any other type of corporation other than a family farm corporation.

     5. A corporation may be exempt from the provisions of this chapter, when there are no more than two owners of the corporation who are also the only employees of the corporation, by filing with the division notice of election to be exempt. The election shall take effect and continue from the date of filing with the division by the corporation of the notice of exemption from liability under this chapter. Any corporation making such an election may withdraw its election by filing with the division a notice to withdraw the election, which shall take effect thirty days after the date of the filing, or at such later date as may be specified in the notice of withdrawal.]

     287.090. 1. This chapter shall not apply to:

     (1) Employment of farm labor, domestic servants in a private home, including family chauffeurs, or occasional labor performed for and related to a private household;

     (2) Employment where the person employed is an inmate confined in a state prison, penitentiary or county or municipal jail, or a patient or resident in a state mental health facility, and the labor or services of such inmate, patient, or resident are exclusively on behalf of the state, county or municipality having custody of said inmate, patient or resident. Nothing in this subdivision is intended to exempt employment where the inmate, patient or resident was hired by a state, county or municipal government agency after direct competition with persons who are not inmates, patients or residents and the compensation for the position of employment is not contingent upon or affected by the worker's status as an inmate, patient or resident;

     (3) The employment of any member of a family owning a family farm corporation as defined in section 350.010, RSMo, or to the employment of any salaried officer of a family farm corporation organized pursuant to the laws of this state;

     (4) Qualified real estate agents and direct sellers as those terms are defined in Section 3508 of Title 26 United States Code;

     (5) An individual who is the owner or operator of a motor vehicle which is leased or contracted with a driver to a for-hire common or contract motor vehicle carrier operating within a commercial zone as defined in section 390.020 or 390.041, RSMo, or operating under a certificate issued by the division of motor carrier and railroad safety of the department of economic development or by the interstate commerce commission.

     2. Any exempted employer in this section may bring himself within the provisions of this chapter by filing with the division notice of his election to accept the provisions, or by purchasing and accepting a valid compensation insurance policy, which lists such election in a manner and such form as determined by the department of insurance, and shall include the exempted employments described in subsection 1 of this section. The election shall take effect and continue from the date of filing with the division by the employer of his election to accept liability, under this chapter, or from the effective date of the insurance policy to the expiration date of the insurance policy. Any employer electing to become liable under this chapter by filing with the division notice of election may withdraw his election by filing with the division a notice that he desires to withdraw his election, which withdrawal shall take effect thirty days after the date of the filing, or at such later date as may be specified in the notice of withdrawal, or by non-renewing a valid compensation insurance policy.

     287.091. 1. The following employers and classes of employees may be exempted from coverage if the employer so elects:

     (1) Volunteers of a tax-exempt organization which operates under the standards of section 501(c)(3) of the federal Internal Revenue Code, where such volunteers are not paid wages, but provide services purely on a charitable and voluntary basis;

     (2) Any worker who is a member of the employer's family within the third degree of affinity or consanguinity, except this provision applies only to employers who are sole proprietors;

     (3) Persons providing services as adjudicators, sports officials or contest workers for interscholastic activities programs or similar amateur youth programs who are not otherwise employed by the sponsoring school, association of schools or nonprofit tax exempt organization sponsoring the amateur youth programs;

     (4) A corporation where there are no more than two owners of the corporation who are also the only employees of the corporation.

     2. Any employer in subsection 1 of this section who wishes to exempt himself or his employees from the provisions of this chapter may do so by filing with the division notice of such elections on a form determined by the division, or by the purchase and acceptance of a valid compensation insurance policy which lists such exemptions in a manner and such form as determined by the department of insurance, and shall include the exempted employments described in subsection 1 of this section. The exemption shall take effect and continue from the date of filing with the division by the employer of his exemption from liability pursuant to this chapter, or from the effective date of the insurance policy to the expiration date of the insurance policy. Any employer electing to become exempted pursuant to this chapter may withdraw his exemption by filing with the division a notice that he desires to withdraw his exemption, which withdrawal shall take effect thirty days after the date of the filing, or at such later date as may be specific in the notice of withdrawal, or by nonrenewing the valid compensation insurance policy.

     3. Notwithstanding any other provision of law to the contrary, beginning on the effective date of this section, those insurance companies providing coverage pursuant to chapter 287, to a limited liability company, as defined in section 347.015, RSMo, shall provide coverage for the employees of the limited liability company who are not members of the limited liability company. Members of the limited liability company, as defined in section 347.015, RSMo, shall also be provided coverage pursuant to chapter 287, but such members may individually elect to reject such coverage by providing a written notice of such rejection on a form developed by the department of insurance to the limited liability company and its insurer. Failure to provide notice to the limited liability company shall not be grounds for any member to claim that the rejection of such coverage is not legally effective. A member who elects to reject such coverage shall not thereafter be entitled to workers' compensation benefits under the policy, even if serving or working in the capacity of an employee of the limited liability company, at least until such time as said member provides the limited liability company and its insurer with a written notice which rescinds the prior rejection of such coverage. The written notice which rescinds the prior rejection of such coverage shall be on a form developed by the department of insurance. Any rescission shall be prospective in nature and shall entitle the member only to such benefits which accrue on or after the date the notice of rescission form is received by the insurance company.

     287.220. 1. All cases of permanent disability where there has been previous disability shall be compensated as herein provided. Compensation shall be computed on the basis of the average earnings at the time of the last injury. If any employee who has a preexisting permanent partial disability whether from compensable injury or otherwise, of such seriousness as to constitute a hindrance or obstacle to employment or to obtaining reemployment if the employee becomes unemployed, and the preexisting permanent partial disability, if a body as a whole injury, equals a minimum of fifty weeks of compensation or, if a major extremity injury only, equals a minimum of fifteen percent permanent partial disability, according to the medical standards that are used in determining such compensation, receives a subsequent compensable injury resulting in additional permanent partial disability so that the degree or percentage of disability, in an amount equal to a minimum of fifty weeks compensation, if a body as a whole injury or, if a major extremity injury only, equals a minimum of fifteen percent permanent partial disability, caused by the combined disabilities is substantially greater than that which would have resulted from the last injury, considered alone and of itself, and if the employee is entitled to receive compensation on the basis of the combined disabilities, the employer at the time of the last injury shall be liable only for the degree or percentage of disability which would have resulted from the last injury had there been no preexisting disability. After the compensation liability of the employer for the last injury, considered alone, has been determined by an administrative law judge or the commission, the degree or percentage of employee's disability that is attributable to all injuries or conditions existing at the time the last injury was sustained shall then be determined by that administrative law judge or by the commission and the degree or percentage of disability which existed prior to the last injury plus the disability resulting from the last injury, if any, considered alone, shall be deducted from the combined disability, and compensation for the balance, if any, shall be paid out of a special fund known as the second injury fund, hereinafter provided for. If the previous disability or disabilities, whether from compensable injury or otherwise, and the last injury together result in total and permanent disability, the minimum standards under this subsection for a body as a whole injury or a major extremity injury shall not apply and the employer at the time of the last injury shall be liable only for the disability resulting from the last injury considered alone and of itself; except that if the compensation for which the employer at the time of the last injury is liable is less than the compensation provided in this chapter for permanent total disability, then in addition to the compensation for which the employer is liable and after the completion of payment of the compensation by the employer, the employee shall be paid the remainder of the compensation that would be due for permanent total disability under section 287.200 out of a special fund known as the "Second Injury Fund" hereby created exclusively for the purposes as in this section provided and for special weekly benefits in rehabilitation cases as provided in section 287.141. Maintenance of the second injury fund shall be as provided by section 287.710. The state treasurer shall be the custodian of the second injury fund which shall be deposited the same as are state funds and any interest accruing thereon shall be added thereto. The fund shall be subject to audit the same as state funds and accounts and shall be protected by the general bond given by the state treasurer. Upon the requisition of the director of the division of workers' compensation, warrants on the state treasurer for the payment of all amounts payable for compensation and benefits out of the second injury fund shall be issued.

     2. In all cases in which a recovery against the second injury fund is sought for permanent partial disability, permanent total disability, or death, the state treasurer as custodian thereof shall be named as a party, and shall be entitled to defend against the claim. The state treasurer, with the advice and consent of the attorney general of Missouri, may enter into compromise settlements as contemplated by section 287.390, or agreed statements of fact that would affect the second injury fund. All awards for permanent partial disability, permanent total disability, or death affecting the second injury fund shall be subject to the provisions of this chapter governing review and appeal. For all claims filed against the second injury fund on or after July 1, 1994, the attorney general shall use assistant attorneys general except in circumstances where an actual or potential conflict of interest exists, to provide legal services as may be required in all claims made for recovery against the fund. Any legal expenses incurred by the attorney general's office in the handling of such claims, including, but not limited to, medical examination fees, expert witness fees, court reporter expenses, travel costs, and related legal expenses shall be paid by the fund. Effective July 1, 1993, the payment of such legal expenses shall be contingent upon annual appropriations made by the general assembly, from the fund, to the attorney general's office for this specific purpose.

     3. If more than one injury in the same employment causes concurrent temporary disabilities, compensation shall be payable only for the longest and largest paying disability.

     4. If more than one injury in the same employment causes concurrent and consecutive permanent partial disability, compensation payments for each subsequent disability shall not begin until the end of the compensation period of the prior disability.

     5. If an employer fails to insure or self-insure as required in section 287.280, funds from the second injury fund may be withdrawn to cover the fair, reasonable, and necessary expenses to cure and relieve the effects of the injury or disability of an injured employee in the employ of an uninsured employer, or in the case of death of an employee in the employ of an uninsured employer, funds from the second injury fund may be withdrawn to cover fair, reasonable, and necessary expenses in the manner required in sections 287.240 and 287.241. In defense of claims arising under this subsection, the treasurer of the state of Missouri, as custodian of the second injury fund, shall have the same defenses to such claims as would the uninsured employer. Any funds received by the employee or the employee's dependents, through civil or other action, must go towards reimbursement of the second injury fund, for all payments made to the employee, the employee's dependents, or paid on the employee's behalf, from the second injury fund pursuant to this subsection. The office of the attorney general of the state of Missouri shall bring suit in the circuit court of the county in which the accident occurred against any employer not covered by this chapter as required in section 287.280.

     6. Every three years the second injury fund shall have an actuarial study made to determine the solvency of the fund, appropriate funding level of the fund, and forecasted expenditures from the fund. The first actuarial study shall be completed prior to July 1, 1988. The expenses of such actuarial studies shall be paid out of the fund for the support of the division of workers' compensation.

     7. The director of the division of workers' compensation shall maintain the financial data and records concerning the fund for the support of the division of workers' compensation and the second injury fund. The division shall also compile and report data on claims made pursuant to subsection 9 of this section. The attorney general shall provide all necessary information to the division for this purpose.

     8. All claims for fees and expenses filed against the second injury fund and all records pertaining thereto shall be open to the public.

     [9. Any employee who at the time a compensable work-related injury is sustained is employed by more than one employer, the employer for whom the employee was working when the injury was sustained shall be responsible for wage loss benefits applicable only to the earnings in that employer's employment and the injured employee shall be entitled to file a claim against the second injury fund for any additional wage loss benefits attributed to loss of earnings from the employment or employments where the injury did not occur, up to the maximum weekly benefit less those benefits paid by the employer in whose employment the employee sustained the injury. The employee shall be entitled to a total benefit based on the total average weekly wage of such employee computed according to subsection 8 of section 287.250. The employee shall not be entitled to a greater rate of compensation than allowed by law on the date of the injury. The employer for whom the employee was working where the injury was sustained shall be responsible for all medical costs incurred in regard to that injury. The provisions of this subsection shall expire on August 28, 1996.]

     9. Any employee who at the time a compensable work-related injury is sustained is employed by more than one employer, the employer for whom the employee was working when the injury was sustained shall be responsible for wage loss benefits applicable only to the earnings in that employer's employment and the injured employee shall be entitled to file a claim against the second injury fund for any additional wage loss benefits attributed to loss of earnings from the employment or employments where the injury did not occur, up to the maximum weekly benefit less those benefits paid by the employer in whose employment the employee sustained the injury. The employee shall be entitled to a total benefit based on the total average weekly wage of such employee computed according to subsection 8 of section 287.250. The employee shall not be entitled to a greater rate of compensation than allowed by law on the date of the injury. The employer for whom the employee was working where the injury was sustained shall be responsible for all medical costs incurred in regard to that injury.

     [287.337. Rates and rating systems used by any insurer with regard to employers within the construction group of code classifications for work performed within this state shall, where applicable, be based upon the principles that an employer with a credible Missouri intrastate modification rate shall be required to apply only that intrastate modification rate on Missouri payroll exposure. Such employers without a credible Missouri intrastate modification rate shall be subjected to the higher of one point zero or their credible interstate modification rate on Missouri payroll exposure.]

     287.380. 1. [Except as provided in subsection 2 of this section,] Every employer or his insurer in this state, whether he has accepted or rejected the provisions of this chapter, shall within ten days after knowledge of an accident resulting in personal injury to any employee notify the division thereof, and shall, within one month from the date of filing of the original notification of injury, file with the division under such rules and regulations and in such form and detail as the division may require, a full and complete report of every injury or death to any employee for which the employer would be liable to furnish medical aid, other than immediate first aid which does not result in further medical treatment or lost time from work, or compensation hereunder had he accepted this chapter, and every employer or insurer shall also furnish the division with such supplemental reports in regard thereto as the division shall require. All reports submitted under this subsection shall include the name, address, date of birth and wages of the deceased or injured employee, the time and cause of the accident, the nature and extent of the injury, the name and address of the employee's and the employer's or insurer's attorney of record, if any, the medical cost incurred in treating the injured employee, the amount of lost work time of the employee as a result of the injury and such other information as the director may reasonably require in order to maintain in the division, accurate and complete data on the impact of work-related injuries on the workers' compensation system. The division shall collect and maintain such data in such a form as to be readily retrieved and available for analysis by the division. Employers shall report all injuries to their insurance carrier, or third-party administrators, if applicable, within five days of the date of the injury or within five days of the date on which the injury was reported to the employer by the employee, whichever is later. Where an employer reports injuries covered pursuant to this chapter to his insurer or third-party administrator, the insurer or third-party administrator shall be responsible for filing the report prescribed in this section.

     2. [The division shall provide by rule that for accidents involving less than five hundred dollars in total medical costs and no lost time from the employment, upon receipt of the notice required by section 287.420, the employer shall deliver a notice to the employee, on a form provided by the division, of the employee's rights under this chapter, giving the date and location of the accident, and the employer shall retain a copy of such notice signed by the employee. The employer shall forward a signed copy to the division accompanied by the report of injury.

     3.] Every employer and his insurer, and every injured employee, his dependents and every person entitled to any rights hereunder, and every other person receiving from the division or the commission any blank reports with direction to fill out the same shall cause the same to be promptly returned to the division or the commission properly filled out and signed so as to answer fully and correctly to the best of his knowledge each question propounded therein, and a good and sufficient reason shall be given for failure to answer any question.

     [4.] 3. No information obtained under the provisions of this section shall be disclosed to persons other than the parties to compensation proceedings and their attorneys, except by order of the division or the commission, or at a hearing of compensation proceeding, but such information may be used by the division or the commission for statistical purposes.

     [5.] 4. Any person, including any employer, insurer or any employee, who violates any of the provisions of this section, including any employer or insurer who knowingly fails to report any accident under the provisions of subsection 1 of this section, or anyone who knowingly makes a false report or statement in writing to the division or the commission, shall be deemed guilty of a misdemeanor and on conviction thereof shall be punished by a fine of not less than fifty nor more than five hundred dollars, or by imprisonment in the county jail for not less than one week nor more than one year, or by both the fine and imprisonment."; and

     Further amend said bill, Page 12, Section 288.050, Line 78, by inserting immediately after all of said line the following:

     "Section B. The repeal and reenactment of sections 287.020, 287.030, 287.037 and 287.090 and the enactment of section 287.091 shall be effective on January 1, 1998, and shall apply to policies renewed or issued on and after that date."; and

     Further amend the title and enacting clause accordingly.

     Senator Mathewson moved that the above amendment be adopted, which motion prevailed.

     Senator Quick offered SA 2:

     Amend House Substitute for House Committee Subtitute for House Bill No. 472, Page 1, Section A, Line 3, by inserting immediately after said line the following:

     "288.034. 1. "Employment" means service, including service in interstate commerce, performed for wages or under any contract of hire, written or oral, express or implied, and notwithstanding any other provisions of this section, service with respect to which a tax is required to be paid under any federal unemployment tax law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund or which, as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act, is required to be covered under this law.

     2. The term "employment" shall include an individual's entire service, performed within or both within and without this state if:

     (1) The service is localized in this state; or

     (2) The service is not localized in any state but some of the service is performed in this state and the base of operations, or, if there is no base of operations, then the place from which such service is directed or controlled, is in this state; or the base of operations or place from which such service is directed or controlled is not in any state in which some part of the service is performed but the individual's residence is in this state.

     3. Service performed by an individual for wages shall be deemed to be employment subject to this law:

     (1) If covered by an election filed and approved pursuant to subdivision (2) of subsection 3 of section 288.080;

     (2) If covered by an arrangement pursuant to section 288.340 between the division and the agency charged with the administration of any other state or federal unemployment insurance law, pursuant to which all services performed by an individual for an employing unit are deemed to be performed entirely within this state.

     4. Service shall be deemed to be localized within a state if the service is performed entirely within such state; or the service is performed both within and without such state, but the service performed without such state is incidental to the individual's service within the state; for example, is temporary or transitory in nature or consists of isolated transactions.

     5. Service performed by an individual for remuneration shall be deemed to be employment subject to this law unless it is shown to the satisfaction of the division that such services were performed by an independent contractor. In determining the existence of the independent contractor relationship, the common law of agency right to control shall be applied. The common law of agency right to control test shall include but not be limited to: If the alleged employer retains the right to control the manner and means by which the results are to be accomplished, the individual who performs the service is an employee. If only the results are controlled, the individual performing the service is an independent contractor.

     6. The term "employment" shall include service performed for wages as an agent-driver or commission-driver engaged in distributing meat products, vegetable products, fruit products, bakery products, beverages (other than milk), or laundry or dry-cleaning services, for his principal; or as a traveling or city salesman, other than as an agent-driver or commission-driver, engaged upon a full-time basis in the solicitation on behalf of, and the transmission to, his principal (except for sideline sales activities on behalf of some other person) of orders from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments for merchandise for resale or supplies for use in their business operations, provided:

     (1) The contract of service contemplates that substantially all of the services are to be performed personally by such individual; and

     (2) The individual does not have a substantial investment in facilities used in connection with the performance of the services (other than in facilities for transportation); and

     (3) The services are not in the nature of a single transaction that is not part of a continuing relationship with the person for whom the services are performed.

     7. Service performed by an individual in the employ of this state or any political subdivision thereof or any instrumentality of any one or more of the foregoing which is wholly owned by this state and one or more other states or political subdivisions, or any service performed in the employ of any instrumentality of this state or of any political subdivision thereof, and one or more other states or political subdivisions, provided that such service is excluded from "employment" as defined in the Federal Unemployment Tax Act by section 3306(c)(7) of that act and is not excluded from "employment" under subsection 9 of this section, shall be "employment" subject to this law.

     8. Service performed by an individual in the employ of a corporation or any community chest, fund, or foundation organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, or other organization described in section 501(c)(3) of the Internal Revenue Code which is exempt from income tax under section 501(a) of that code if the organization had four or more individuals in employment for some portion of a day in each of twenty different weeks whether or not such weeks were consecutive within a calendar year regardless of whether they were employed at the same moment of time shall be "employment" subject to this law.

     9. For the purposes of subsections 7 and 8 of this section, the term "employment" does not apply to service performed:

     (1) In the employ of a church or convention or association of churches, or an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches; or

     (2) By a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; or

     (3) In the employ of a governmental entity referred to in subdivision (3) of subsection 1 of section 288.032 if such service is performed by an individual in the exercise of duties:

     (a) As an elected official;

     (b) As a member of a legislative body, or a member of the judiciary, of a state or political subdivision;

     (c) As a member of the state national guard or air national guard;

     (d) As an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency;

     (e) In a position which, under or pursuant to the laws of this state, is designated as (i) a major nontenured policymaking or advisory position, or (ii) a policymaking or advisory position the performance of the duties of which ordinarily does not require more than eight hours per week; or

     (4) In a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury or providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market, by an individual receiving such rehabilitation or remunerative work; or

     (5) As part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any federal agency or an agency of a state or political subdivision thereof, by an individual receiving such work relief or work training; or

     (6) By an inmate of a custodial or penal institution; or

     (7) In the employ of a school, college, or university, if such service is performed (i) by a student who is enrolled and is regularly attending classes at such school, college, or university, or (ii) by the spouse of such a student, if such spouse is advised, at the time such spouse commences to perform such service, that (I) the employment of such spouse to perform such service is provided under a program to provide financial assistance to such student by such school, college, or university, and (II) such employment will not be covered by any program of unemployment insurance.

     10. The term "employment" shall include the service of an individual who is a citizen of the United States, performed outside the United States (except in Canada), if:

     (1) The employer's principal place of business in the United States is located in this state; or

     (2) The employer has no place of business in the United States, but:

     (a) The employer is an individual who is a resident of this state; or

     (b) The employer is a corporation which is organized under the laws of this state; or

     (c) The employer is a partnership or a trust and the number of the partners or trustees who are residents of this state is greater than the number who are residents of any one other state; or

     (3) None of the criteria of subdivisions (1) and (2) of this subsection is met but the employer has elected coverage in this state or, the employer having failed to elect coverage in any state, the individual has filed a claim for benefits, based on such service, under the law of this state;

     (4) As used in this subsection and in subsection 11 of this section, the term "United States" includes the states, the District of Columbia and the Commonwealth of Puerto Rico.

     11. An "American employer", for the purposes of subsection 10 of this section, means a person who is:

     (1) An individual who is a resident of the United States; or

     (2) A partnership, if two-thirds or more of the partners are residents of the United States; or

     (3) A trust, if all of the trustees are residents of the United States; or

     (4) A corporation organized under the laws of the United States or of any state.

     12. The term "employment" shall not include:

     (1) Service performed by an individual in agricultural labor;

     (a) For the purposes of this subdivision, the term "agricultural labor" means remunerated service performed:

     a. On a farm, in the employ of any person, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and furbearing animals and wildlife;

     b. In the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment, or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of such service is performed on a farm;

     c. In connection with the production or harvesting of any commodity defined as an agricultural commodity in section 15(g) of the Federal Agricultural Marketing Act, as amended (46 Stat. 1550, Sec. 3; 12 USC 1441j), or in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for profit, used exclusively for supplying and storing water for farming purposes;

     d. i. In the employ of the operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity; but only if such operator produced more than one-half of the commodity with respect to which such service is performed;

     ii. In the employ of a group of operators of farms (or a cooperative organization of which such operators are members) in the performance of services described in item i of this subparagraph, but only if such operators produced more than one-half of the commodity with respect to which such service is performed;

     iii. The provisions of items i and ii of this subparagraph shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption; or

     e. On a farm operated for profit if such service is not in the course of the employer's trade or business. As used in this paragraph, the term "farm" includes stock, dairy, poultry, fruit, furbearing animals, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures, used primarily for the raising of agricultural or horticultural commodities, and orchards;

     (b) The term "employment" shall include service performed after December 31, 1977, by an individual in agricultural labor as defined in paragraph (a) of this subdivision when such service is performed for a person who, during any calendar quarter, paid remuneration in cash of twenty thousand dollars or more to individuals employed in agricultural labor or for some portion of a day in a calendar year in each of twenty different calendar weeks, whether or not such weeks were consecutive, employed in agricultural labor ten or more individuals, regardless of whether they were employed at the same moment of time;

     (c) For the purposes of this subsection any individual who is a member of a crew furnished by a crew leader to perform service in agricultural labor for any other person shall be considered as employed by such crew leader:

     a. If such crew leader holds a valid certificate of registration under the Farm Labor Contractor Registration Act of 1963; or substantially all the members of such crew operate or maintain tractors, mechanized harvesting or cropdusting equipment, or any other mechanized equipment, which is provided by such crew leader; and

     b. If such individual is not in employment by such other person;

     c. If any individual is furnished by a crew leader to perform service in agricultural labor for any other person and that individual is not in the employment of the crew leader:

     i. Such other person and not the crew leader shall be treated as the employer of such individual; and

     ii. Such other person shall be treated as having paid cash remuneration to such individual in an amount equal to the amount of cash remuneration paid to such individual by the crew leader (either on his own behalf or on behalf of such other person) for the service in agricultural labor performed for such other person;

     d. For the purposes of this subsection, the term "crew leader" means an individual who:

     i. Furnishes individuals to perform service in agricultural labor for any other person;

     ii. Pays (either on his own behalf or on behalf of such other person) the individuals so furnished by him for the service in agricultural labor performed by them; and

     iii. Has not entered into a written agreement with such other person under which such individual is designated as in employment by such other person;

     (2) Domestic service in a private home except as provided in subsection 13 of this section;

     (3) Service performed by an individual [under the age of eighteen years] in the delivery or distribution of newspapers or shopping news, [not] including delivery or distribution to any point for subsequent delivery or distribution;

     (4) Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of twenty-one in the employ of his father or mother;

     (5) Except as otherwise provided in this law, service performed in the employ of a corporation, community chest, fund or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual;

     (6) Services with respect to which unemployment insurance is payable under an unemployment insurance system established by an act of Congress;

     (7) Service performed in the employ of a foreign government;

     (8) Service performed in the employ of an instrumentality wholly owned by a foreign government:

     (a) If the service is of a character similar to that performed in foreign countries by employees of the United States government or of an instrumentality thereof; and

     (b) If the division finds that the foreign government, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to similar service performed in the foreign country by employees of the United States government and of instrumentalities thereof. The certification of the United States Secretary of State to the United States Secretary of Treasury shall constitute prima facie evidence of such equivalent exemption;

     (9) Service covered by an arrangement between the division and the agency charged with the administration of any other state or federal unemployment insurance law pursuant to which all services performed by an individual for an employing unit during the period covered by the employing unit's approved election are deemed to be performed entirely within the jurisdiction of such other state or federal agency;

     (10) Service performed in any calendar quarter in the employ of a school, college or university not otherwise excluded, if such service is performed by a student who is enrolled and regularly attending classes at such school, college, or university, and the remuneration for such service does not exceed fifty dollars (exclusive of board, room, and tuition);

     (11) Service performed by an individual for a person as a licensed insurance agent, a licensed insurance broker, or an insurance solicitor, if all such service performed by such individual for such person is performed for remuneration solely by way of commissions;

     (12) Domestic service performed in the employ of a local college club or of a local chapter of a college fraternity or sorority, except as provided in subsection 13 of this section;

     (13) Services performed after March 31, 1982, in programs authorized and funded by the Comprehensive Employment and Training Act by participants of such programs, except those programs with respect to which unemployment insurance coverage is required by the Comprehensive Employment and Training Act or regulations issued pursuant thereto;

     (14) Service performed by an individual who is enrolled at a nonprofit or public educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on, as a student in a full-time program, taken for credit at such institution, which combines academic instruction with work experience, if such service is an integral part of such program, and such institution has so certified to the employer; except, that this subdivision shall not apply to service performed in a program established for or on behalf of an employer or group of employers;

     (15) Services performed by a licensed real estate salesperson or licensed real estate broker if at least eighty percent of the remuneration, whether or not paid in cash, for the services performed rather than to the number of hours worked is directly related to sales performed pursuant to a written contract between such individual and the person for whom the services are performed and such contract provides that the individual will not be treated as an employee with respect to such services for federal tax purposes;

     (16) Services performed as a direct seller who is engaged in the trade or business of the delivering or distribution of newspapers or shopping news, including any services directly related to such trade or business, or services performed as a direct seller who is engaged in the trade or business of selling, or soliciting the sale of, consumer products in the home or otherwise than in, or affiliated with, a permanent, fixed retail establishment, if eighty percent or more of the remuneration, whether or not paid in cash, for the services performed rather than the number of hours worked is directly related to sales performed pursuant to a written contract between such direct seller and the person for whom the services are performed, and such contract provides that the individual will not be treated as an employee with respect to such services for federal tax purposes;

     (17) Services performed as a volunteer research subject who is paid on a per study basis for scientific, medical or drug related testing for any organization other than one described in section 501(c)(3) of the Internal Revenue Code or any governmental entity.

     13. The term "employment" shall include domestic service as defined in subdivisions (2) and (12) of subsection 12 of this section performed after December 31, 1977, if the employing unit for which such service is performed paid cash wages of one thousand dollars or more for such services in any calendar quarter after December 31, 1977.

     14. The term "employment" shall include or exclude the entire service of an individual for an employing unit during a pay period in which his services are not all excluded under the foregoing provisions, on the following basis: If the services performed during one-half or more of any pay period constitute employment as otherwise defined in this law, all the services performed during such period shall be deemed to be employment; but if the services performed during more than one-half of any such pay period do not constitute employment as otherwise defined in this law, then none of the services for such period shall be deemed to be employment. (As used in this subsection, the term "pay period" means a period of not more than thirty-one consecutive days for which a payment of remuneration is ordinarily made to the individual by the employing unit employing him.) This subsection shall not be applicable with respect to service performed in a pay period where any such service is excluded under subdivision (7) of subsection 12 of this section.

     15. The term "employment" shall not include the services of a full-time student who performed such services in the employ of an organized summer camp for less than thirteen calendar weeks in such calendar year.

     16. For the purpose of subsection 15 of this section, an individual shall be treated as a full-time student for any period:

     (1) During which the individual is enrolled as a full-time student at an educational institution; or

     (2) Which is between academic years or terms if:

     (a) The individual was enrolled as a full-time student at an educational institution for the immediately preceding academic year or term; and

     (b) There is a reasonable assurance that the individual will be so enrolled for the immediately succeeding academic year or term after the period described in paragraph (a) of this subdivision.

     17. For the purpose of subsection 15 of this section, an organized summer camp shall mean a summer camp which:

     (1) Did not operate for more than seven months in the calendar year and did not operate for more than seven months in the preceding calendar year; or

     (2) Had average gross receipts for any six months in the preceding calendar year which were not more than thirty-three and one-third percent of its average gross receipts for the other six months in the preceding calendar year.

     18. The term "employment" shall not mean service performed by a remodeling salesperson acting as an independent contractor; however, if the federal Internal Revenue Service determines that a contractual relationship between a direct provider and an individual acting as an independent contractor under the provisions of this subsection is in fact an employer-employee relationship for the purposes of federal law, then that relationship shall be considered as an employer-employee relationship for the purposes of this chapter."; and

     Further amend the title and enacting clause accordingly.

     Senator Quick moved that the above amendment be adopted, which motion prevailed.

     Senator Klarich offered SA 3:

     Amend House Substitute for House Committee Substitute for House Bill No. 472, Page 1, Section A, Line 3, by inserting immediately after said section the following:

     "285.230. 1. As used in this section, "transient employer" means an employer as defined in sections 143.191, RSMo, 287.030, RSMo, and 288.032, RSMo, making payment of wages taxable under chapters 143, RSMo, 287, RSMo, and 288, RSMo, who is not domiciled in this state and who temporarily transacts any business within the state, but shall not include any employer who is not subject to Missouri income tax because of the provisions of 15 U.S.C. 381. The transaction of business shall be considered temporary at any time it cannot be reasonably expected to continue for a period of twenty-four consecutive months. Professional athletic teams and professional entertainers domiciled in a state other than Missouri shall be deemed a "transient employer" for the purposes of this section.

     2. Employers meeting the following criteria shall not be required to file a financial assurance instrument as required by this section:

     (1) The principal place of business of the employer must be in a county of another state which is contiguous to the state of Missouri; and

     (2) The employer must have been under contract to perform work in Missouri for at least sixty days cumulatively out of twelve months during each of the two calendar years immediately preceding the employer's initial application for exemption from the provisions of this section; and

     (3) The employer must have in his possession a tax clearance from the department of revenue and the division of employment security stating that the employer has faithfully complied with the tax laws of this state during the period set out in subdivision (2) of this subsection. Within ninety days of August 13, 1988, such employers must obtain initial tax clearances in accordance with subdivision (3) of this subsection. Any tax clearance issued under the provisions of this section by the division of employment security shall be submitted to the department of revenue. On or before January thirty-first of each year, except January thirty-first following the year during which the employer first meets these criteria, the employer shall submit application to the department of revenue and division of employment security for a renewed tax clearance. Failure to submit such renewal applications or failure to comply with applicable Missouri taxing and employment security laws during the period between annual renewal dates or removal of the employer's principal place of business from a county in another state which is contiguous to Missouri to a state other than Missouri shall immediately subject the employer to all provisions of this section. An employer meeting the requirements of this subsection shall still be subject to the provisions of subsection 5 of this section.

     3. Every transient employer shall file with the director of revenue a financial assurance instrument including, but not limited to, a cash bond, a surety bond, or an irrevocable letter of credit as defined in section 400.5-103, RSMo, issued by any state or federal financial institution. The financial assurance instrument shall be in an amount not less than the average estimated quarterly withholding tax liability of the applicant, but in no case less than five thousand dollars nor more than twenty-five thousand dollars. Any corporate surety shall be licensed to do such business in this state and approved by the director of revenue to act as a surety. The transient employer shall be the principal obligor and the state of Missouri shall be the obligee. The financial assurance instrument shall be conditioned upon the prompt filing of true reports and the payment by such employer to the director of revenue of any and all withholding taxes which are now or which hereafter may be levied or imposed by the state of Missouri, upon the employer, together with any and all penalties and interest thereon, and generally upon the faithful compliance with the provisions of chapters 143, RSMo, 287, RSMo, and 288, RSMo.

     4. Any transient employer who is already otherwise required to file a financial assurance instrument as a condition of any contract, provided said financial assurance instrument guarantees payment of all applicable state taxes and all withholding taxes levied or imposed by the state and provided that such financial assurance instrument is delivered by certified mail to the department of revenue by the applicable awarding entity at least fourteen days before the execution of the contract for the performance of work, may use the same financial assurance instrument to comply with the provisions of this section. Before such financial assurance instrument is approved by the awarding entity, the director of revenue shall be satisfied that such financial assurance instrument is sufficient to cover all taxes imposed by this state and the director shall so notify the awarding entity of the decision within the fourteen days prior to the execution of the contract. Failure to do so by the director shall waive any right to disapprove such financial assurance instrument. Before a financial assurance instrument is released by the entity awarding the contract, a tax clearance shall be obtained from the director of revenue that such transient employer has faithfully complied with all the tax laws of this state.

     5. Every transient employer shall certify to the director of revenue that such employer has sufficient workers' compensation insurance either through a [self-insured plan or through a private company (carrier). Such insurance shall be approved by the division of workers' compensation of the department of labor and industrial relations of the state. A financial assurance instrument including, but not limited to, a cash bond, a surety bond, or an irrevocable letter of credit as defined in section 400.5-103, RSMo, shall be required of every transient employer who in the opinion of the division of workers' compensation does not have sufficient workers' compensation coverage. Such financial assurance instrument shall be in an amount not less than one hundred thousand dollars nor more than five hundred thousand dollars.] self-insurance program or a policy of workers' compensation insurance issued by an approved workers' compensation carrier. The self-insurance program shall be approved by the division of workers' compensation pursuant to section 287.280, RSMo. The insurance policy shall be in a contract form approved by the department of insurance.

      6. In the event that liability upon the financial assurance instrument thus filed by the transient employer shall be discharged or reduced, whether by judgment rendered, payment made or otherwise, or if in the opinion of the director of revenue any surety on a bond theretofore given or financial institution shall have become unsatisfactory or unacceptable, then the director of revenue may require the employer to file a new financial assurance instrument in the same form and amount. If such new financial assurance instrument shall be furnished by such employer as above provided, the director of revenue shall upon satisfaction of any liability that has accrued, release the surety on the old bond or financial institution issuing the irrevocable letter of credit.

     7. Any surety on any bond or financial institution issuing an irrevocable letter of credit furnished by any transient employer as provided in this section shall be released and discharged from any and all liability to the state of Missouri accruing on such bond or irrevocable letter of credit after the expiration of sixty days from the date upon which such surety or financial institution shall have lodged with the director of revenue a written request to be released and discharged; but the request shall not operate to relieve, release or discharge such surety or financial institution from any liability already accrued or which shall accrue during and before the expiration of said sixty-day period. The director of revenue shall promptly on receipt of notice of such request notify the employer who furnished such bond or irrevocable letter of credit and such employer shall on or before the expiration of such sixty-day period file with the director of revenue a new financial assurance instrument satisfactory to the director of revenue in the amount and form provided in this section.

     8. Notwithstanding the limitation as to the amount of any financial assurance instrument fixed by this section, if a transient employer becomes delinquent in the payment of any tax or tenders a check in payment of tax which check is returned unpaid because of insufficient funds, the director may demand an additional instrument of such employer in an amount necessary, in the judgment of the director, to protect the revenue of the state. The penal sum of the additional instrument and the instrument furnished under the provisions of the law requiring such instrument may not exceed two quarters estimated tax liability.

     9. For any period when a transient employer fails to meet the requirements of this section, there shall be added to any deficiency assessed against a transient employer, in addition to any other addition, interest, and penalties, an amount equal to twenty-five percent of the deficiency.

     10. A taxpayer commits the crime of failure to file a financial assurance instrument if he knowingly fails to comply with the provisions of this section.

     11. Failure to file a financial assurance instrument is a class A misdemeanor. Pursuant to section 560.021, RSMo, a corporation found guilty of failing to file a financial assurance instrument may be fined up to five thousand dollars or any higher amount not exceeding twice the amount the employer profited from the commission of the offense.

     12. Failing to register with the department of revenue and execute the financial assurance instrument herein provided, prior to beginning the performance of any contract, shall prohibit the employer from performing on such contract until he complies with such requirements.

     13. Each employer shall keep full and accurate records clearly indicating the names, occupations, and crafts, if applicable, of every person employed by him together with an accurate record of the number of hours worked by each employee and the actual wages paid. The payroll records required to be so kept shall be open to inspection by any authorized representative of the department of revenue at any reasonable time and as often as may be necessary and such records shall not be destroyed or removed from the state for a period of one year following the completion of the contract in connection with which the records are made.

     14. The entering into of any contract for the performance of work in the state of Missouri by any such employer shall be deemed to constitute an appointment of the secretary of state as registered agent of such employer for purposes of accepting service of any process, or of any notice or demand required or permitted by law. The service of any such process, notice or demand, when served on the secretary of state shall have the same legal force and validity as if served upon the employer personally within the state.

     15. In addition, any employer who fails to file a financial assurance instrument as required by this section shall be prohibited from contracting for or performing labor on any public works project in this state for a period of one year.

     16. Whenever a transient employer ceases to engage in activity within the state it shall be the duty of such transient employer to notify the director of revenue in writing at least ten days prior to the time the discontinuance takes effect.

     285.232. 1. Subject to the provisions of section 285.230, any county, city, town, village or any other political subdivision which requires a building permit for a person to perform certain construction projects shall require a transient employer to show proof that the employer has been issued a tax clearance and has filed a financial assurance instrument as required by section 285.230 before such entity issues a building permit to the transient employer. If any transient employer obtains a building permit without providing such proof, provides a fraudulently obtained tax clearance or a fraudulent financial assurance instrument or through any misrepresentation or any other fraudulent act or in any way violates the provisions of sections 285.230 to 285.234, the Missouri department of revenue shall request a temporary restraining order or seek injunctive relief to immediately prohibit further performance of work by the transient employer on such contract or project. The court may direct that any payments due such transient employer be equitably distributed in satisfaction of the transient employer's obligations pursuant to sections 285.230 to 285.234. Upon issuance of such order by a court of competent jurisdiction, the person for whom the work is being performed may engage another contractor as provided by law or any provision of contract and the person shall not be deemed to be in violation of the contract with such transient employer removed by the court. Nothing in this section shall be construed to create or constitute a liability to or a cause of action against a city or county in regard to the issuance of any license pursuant to this section.

     2. Any contractor for private or public construction work in this state which contracts with or otherwise engages a subcontractor, which is deemed a transient employer as defined in section 285.230, to perform any portion of such work, shall require such subcontractor to show proof of having filed a financial assurance instrument with the director of revenue as required by section 285.230 and to show proof that the subcontractor holds a current valid certificate of insurance for workers' compensation coverage in this state, prior to the subcontractor performing any work on the project. If the subcontractor is self-insured for purposes of workers' compensation, the contractor shall require proof that such self-insurance by the subcontractor has been approved by the division of workers' compensation. The contractor shall not allow the subcontractor to perform on such contract until proof of compliance as required by this section has been provided to the contractor. If a subcontractor which is deemed to be a transient employer has previously submitted proof of compliance as required by this section to a state agency or political subdivision for which the contract is being performed as a condition of being qualified to perform work for such agency or polit