Journal of the Senate

SECOND REGULAR SESSION

SEVENTY-THIRD DAY--FRIDAY, MAY 15, 1998

President Pro Tem McKenna in the Chair.

The Chaplain offered the following prayer:

Heavenly Father, in January, this day seemed a long way off. We started with many hopes and great expectations. Thank You for all the good things that have happened to us, for the lives that have been touched, the help provided, the friendships strengthened and for Your watchcare over us. We pray for Your guidance today to finish the job we have been given to do. Amen.

The Pledge of Allegiance to the Flag was recited.

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

The Journal of the previous day was read and approved.

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

RESOLUTIONS

Senator Mueller offered Senate Resolution No. 1942, regarding Mrs. Carol L. Osterloh, which was adopted.

REPORTS OF STANDING COMMITTEES

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

Mr. President: Your Committee on State Budget Control, to which were referred HS for HCS for HB 1656, with SCS and HS for HCS for HB 971, with SCS, begs leave to report that it has considered the same and recommends that the bills do pass.

HOUSE BILLS ON THIRD READING

HS for HCS for HB 971, with SCS, entitled:

An Act to repeal section 211.393, RSMo Supp. 1997, relating to juvenile court personnel, and to enact in lieu thereof three new sections relating to the same subject, with an effective date.

Was taken up by Senator Caskey.

SCS for HS for HCS for HB 971, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 971

An Act to repeal sections 211.156 and 287.815, RSMo 1994, and section 211.393, RSMo Supp. 1997, relating to compensation for public agencies and employees, and to enact in lieu thereof six new sections relating to the same subject, with an effective date for certain sections.

Was taken up.

Senator Caskey moved that SCS for HS for HCS for HB 971 be adopted.

Senator Caskey offered SS for SCS for HS for HCS for HB 971, entitled:

SENATE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 971

An Act to repeal sections 211.156 and 287.815, RSMo 1994, sections 211.393, 287.812 and 360.015, RSMo Supp. 1997, and section 2 of senate substitute for senate committee substitute for house substitute for house committee substitute for house bills nos. 1455 and 1463 as truly agreed to and finally passed by the second regular session of the eighty-ninth general assembly, relating to compensation for public agencies and employees, and to enact in lieu thereof nine new sections relating to the same subject, with an effective date for certain sections and an emergency clause for certain sections.

Senator Caskey moved that SS for SCS for HS for HCS for HB 971 be adopted, which motion prevailed

Senator Scott assumed the Chair.

On motion of Senator Caskey, SS for SCS for HS for HCS for HB 971 was read the 3rd time and passed by the following vote:

The President declared the bill passed.

The emergency clause was adopted by the following vote:

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

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

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

PRIVILEGED MOTIONS

Senator McKenna moved that the Senate refuse to concur in the conference committee report on SS for SCS for HS for HCS for HB 1095, as amended, and request the House to grant further conference, which motion prevailed.

HOUSE BILLS ON THIRD READING

HS for HCS for HB 1656, with SCS, entitled:

An Act to repeal section 135.408, RSMo 1994, section 215.030, RSMo Supp. 1997, and sections 100.840, 135.403, 135.405 and 135.503, as enacted by senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly and approved by the governor, and to enact in lieu thereof ten new sections for the purpose of providing tax relief in distressed communities.

Was taken up by Senator Mathewson.

SCS for HS for HCS for HB 1656, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1656

An Act to repeal sections 92.336 and 135.408, RSMo 1994, sections 100.710, 100.850, 135.110 and 215.030, RSMo Supp. 1997, and sections 135.403, 135.405, 253.550, 253.557 and 253.559, as enacted by senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly and approved by the governor, and to enact in lieu thereof thirty-seven new sections for the purpose of providing tax relief in distressed communities, with an effective date.

Was taken up.

Senator Mathewson moved that SCS for HS for HCS for HB 1656 be adopted.

Senator Mathewson offered SS for SCS for HS for HCS for HB 1656, entitled:

SENATE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1656

An Act to repeal sections 100.010, 348.300, 348.302 and 348.314, RSMo 1994, sections 100.710, 100.850, 135.110 and 215.030, RSMo Supp. 1997, and sections 135.403, 135.405 and 135.503, as enacted by senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly and approved by the governor, and to enact in lieu thereof thirty-five new sections for the purpose of providing tax relief in distressed communities, with an effective date.

Senator Mathewson moved that SS for SCS for HS for HCS for HB 1656 be adopted.

Senator Flotron offered SA 1:

SENATE AMENDMENT NO. 1

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1656, Page 31, Section 135.503, Line 8 of page 31, by inserting immediately after all of said line the following:

"135.326. As used in sections 135.325 to 135.339, the following terms shall mean:

(1) "Business entity", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo;

(2) "Handicap", a mental, physical, or emotional impairment that substantially limits one or more major life activities, whether the impairment is congenital or acquired by accident, injury or disease, and where the impairment is verified by medical findings;

(3) "Nonrecurring adoption expenses", reasonable and necessary adoption fees, court costs, attorney fees, and other expenses which are directly related to the legal adoption of a special needs child and which are not incurred in violation of federal, state, or local law;

(4) "Special needs child", a child for whom it has been determined by the division of family services, or by a child placing agency licensed by the state, or by a court of competent jurisdiction to be a child:

(a) That cannot or should not be returned to the home of his or her parents; [and] or

(b) Who has a specific factor or condition such as ethnic background, residency in a distressed community as defined in section 135.530, age, membership in a minority or sibling group, medical condition, or handicap because of which it is reasonable to conclude that such child cannot be easily placed with adoptive parents; [and] or

(c) Except where it would be against the best interests of the child because of such factors as the existence of significant emotional ties with prospective adoptive parents while in the care of such parents as a foster child, a reasonable, but unsuccessful, effort has been made to place the child with appropriate adoptive parents;

(5) "State tax liability", any liability incurred by a taxpayer under the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions.

135.327. 1. Any person residing in this state who [legally adopts] proceeds in good faith with the adoption of a special needs child on or after January 1, [1988] 1999, shall be eligible to receive a tax credit of up to ten thousand dollars for nonrecurring adoption expenses for each child [adopted] that may be applied to taxes due under chapter 143, RSMo. Any business entity providing funds to an employee to enable that employee to [legally adopt] proceed in good faith with the adoption of a special needs child shall be eligible to receive a tax credit of up to ten thousand dollars for nonrecurring adoption expenses for each child [adopted] that may be applied to taxes due under such business entity's state tax liability, except that only one ten thousand dollar credit is available for each special needs child that is adopted.

2. Individuals and business entities may claim a tax credit for their total nonrecurring adoption expenses in each year that the expenses are incurred. A claim for fifty percent of the credit shall be allowed when the child is placed in the home. A claim for the remaining fifty percent shall be allowed when the adoption is final. The total of these tax credits shall not exceed the maximum limit of ten thousand dollars per child. The cumulative amount of tax credits which may be claimed by taxpayers for nonrecurring adoption expenses in any one fiscal year shall not exceed two million dollars.

3. Notwithstanding any provision of law to the contrary, any individual or business entity may assign tax credits allowed in this section to the not for profit organization involved in the adoption proceedings.

135.333. 1. Any amount of tax credit which exceeds the tax due shall not be refunded but may be carried over to any subsequent taxable year, not to exceed a total of five years for which a tax credit may be taken for each child adopted.

2. Tax credits that are assigned to not for profit organizations as allowed in section 135.326, RSMo, may be assigned in their entirety notwithstanding the taxpayer's tax due."; and

Further amend the title and enacting clause accordingly.

Senator Flotron moved that the above amendment be adopted.

Senator Mathewson raised the point of order that SA 1 is out of order in that it goes beyond the scope and purpose of the bill.

The point of order was referred to the President Pro Tem, who ruled it well taken.

Senator Bentley offered SA 2:

SENATE AMENDMENT NO. 2

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1656, Page 23, Section 135.110, Line 6, by inserting immediately after said line the following:

"135.200. The following terms, whenever used in sections 135.200 to 135.256, mean:

(1) "Department", the department of economic development;

(2) "Director", the director of the department of economic development;

(3) "Facility", any building used as a revenue producing enterprise located within an enterprise zone, including the land on which the facility is located and all machinery, equipment and other real and depreciable tangible personal property acquired for use at and located at or within such facility and used in connection with the operation of such facility;

(4) "Governing authority", the body holding primary legislative authority over a county or incorporated municipality;

(5) "New business facility" shall have the meaning defined in section 135.100, except that the term "lease" as used therein shall not include the leasing of property defined in paragraph (d) of subdivision (6) of this section;

(6) "Revenue producing enterprise", means:

(a) Manufacturing activities classified as SICs 20 through 39;

(b) Agricultural activities classified as SIC 025;

(c) Rail transportation terminal activities classified as SIC 4013;

(d) Renting or leasing of residential property to low and moderate income persons as defined in federal law, 42 U.S.C. 5302(a)(20);

(e) Motor freight transportation terminal activities classified as SIC 4231;

(f) Public warehousing and storage activities classified as SICs 422 and 423 except SIC 4221, miniwarehouse warehousing and warehousing self-storage;

(g) Water transportation terminal activities classified as SIC 4491;

(h) Wholesale trade activities classified as SICs 50 and 51;

(i) Insurance carriers activities classified as SICs 631, 632 and 633;

(j) Research and development activities classified as SIC 873, except 8733;

(k) Farm implement dealer activities classified as SIC 5999;

(l) Employment agency activities classified as SIC 7361;

(m) Computer programming, data processing and other computer related activities classified as SIC 737;

(n) Health service activities classified as SICs 801, 802, 803, 804, 806, 807, 8092 and 8093;

(o) Interexchange telecommunications as defined in subdivision (20) of section 386.020, RSMo, or training activities conducted by an interexchange telecommunications company as defined in subdivision (19) of section 386.020, RSMo;

(p) Recycling activities classified as SIC 5093;

(q) Banking activities classified as SICs 602 and 603;

(r) Office activities as defined in subdivision (8) of section 135.100, notwithstanding SIC classification;

(s) Mining activities classified as SICs 10 through 14;

(t) Photofinishing laboratory activities classified in SIC 7384 and microfilm recording and developing services as contained in SIC classification 7389, provided that each such revenue producing enterprise employs a minimum of one hundred employees at a single business facility;

(u) The administrative management of any of the foregoing activities; or

[(u)] (v) Any combination of any of the foregoing activities;

(7) "Satellite zone", a noncontiguous addition to an existing state designated enterprise zone;

(8) "SIC", the standard industrial classification as such classifications are defined in the 1987 edition of the Standard Industrial Classification Manual as prepared by the Executive Office of the President, Office of Management and Budget."; and

Further amend the title and enacting clause accordingly.

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

Senator Rohrbach offered SA 3, which was read:

SENATE AMENDMENT NO. 3

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1656, Pages 48-58, Sections 1-14, by deleting all of said sections.

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

Senator Rohrbach offered SA 4, which was read:

SENATE AMENDMENT NO. 4

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1656, Page 31, Section 135.530, Line 10 of said page, by deleting on said line the word "either"; and

Further amend said bill, page and section, line 10 and 11 of said page, by deleting on said lines the word "or a United States census block group".

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

Senator Childers offered SA 5:

SENATE AMENDMENT NO. 5

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1656, Page 24, Section 135.258, Line 3, by inserting immediately after said line the following:

"135.313. 1. Any person, firm or corporation who engages in the business of producing charcoal or charcoal products in the state of Missouri shall be eligible for a tax credit on income taxes otherwise due pursuant to chapter 143, RSMo, except sections 143.191 to 143.261, RSMo, as an incentive to implement safe and efficient environmental controls. The tax credit shall be equal to fifty percent of the purchase price of the best available control technology equipment connected with the production of charcoal in the state of Missouri or, if the taxpayer manufactures such equipment, fifty percent of the manufacturing cost of the equipment, to and including the year the equipment is put into service. The credit may be claimed for a period of eight years beginning with the 1998 calendar year and is to be a tax credit against the tax otherwise due.

2. Any amount of credit which exceeds the tax due shall not be refunded but may be carried over to any subsequent taxable year, not to exceed seven years.

3. The charcoal producer may elect to assign to a third party the approved tax credit. Certification of assignment and other appropriate forms must be filed with the Missouri department of revenue and the department of economic development.

4. When applying for a tax credit, the charcoal producer specified in subsection 1 of this section shall make application for the credit to the division of environmental quality of the department of natural resources. The application shall identify the specific best available control technology equipment and the purchase price, or manufacturing cost of such equipment. The director of the department of natural resources is authorized to require permits to construct prior to the installation of best available control technology equipment and other information which he or she deems appropriate.

5. The director of the department of natural resources in conjunction with the department of economic development shall certify to the department of revenue that the best available control technology equipment meets the requirements to obtain a tax credit as specified in this section."; and

Further amend the title and enacting clause accordingly.

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

Senator Staples assumed the Chair.

Senator Rohrbach offered SA 6, which was read:

SENATE AMENDMENT NO. 6

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1656, Page 31, Section 135.530, Line 11, by deleting the word "group" and inserting the words "groups with at least 5,000 residents".

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

Senator Westfall offered SA 7:

SENATE AMENDMENT NO. 7

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1656, Page 61, Section 21, Line 4, by after all of said section insert the following:

"Section 1. In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone for any county of third classification with a township form of government with a population of at least eleven thousand but not more than thirteen thousand inhabitants. Such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all the requirements of section 135.205."; and

Further amend the title and enacting clause accordingly.

Senator Westfall moved that the above amendment be adopted.

Senator Mathewson raised the point of order that SA 7 is out of order in that it goes beyond the scope and purpose of the bill.

President Pro Tem McKenna ruled the point of order well taken.

President Wilson assumed the Chair.

Senator Goode offered SA 8:

SENATE AMENDMENT NO. 8

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1656, Page 1, Section A, Line 10 of said page, by inserting immediately after all of said line the following:

"99.805. As used in sections 99.800 to 99.865, unless the context clearly requires otherwise, the following terms shall mean:

(1) "Abandoned property", real property previously used for, or which has the potential to be used for, commercial or industrial purposes which reverted to the ownership of the state, a county, or municipal government, or an agency thereof, through donation, purchase, tax delinquency, foreclosure, default or settlement, including conveyance by deed in lieu of foreclosure or a privately owned property endorsed by the city, or county if the property is not in a city, for inclusion in the program which will be transferred to a person other than the potentially responsible party as defined in chapter 250, RSMo, and has been vacant or underutilized;

[(1)] (2) "Blighted area", an area which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use;

[(2)] (3) "Collecting officer", the officer of the municipality responsible for receiving and processing payments in lieu of taxes or economic activity taxes from taxpayers or the department of revenue;

[(3)] (4) "Conservation area", any improved area within the boundaries of a redevelopment area located within the territorial limits of a municipality in which fifty percent or more of the structures in the area have an age of thirty-five years or more. Such an area is not yet a blighted area but is detrimental to the public health, safety, morals, or welfare and may become a blighted area because of any one or more of the following factors: Dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of structures below minimum code standards; abandonment; excessive vacancies; overcrowding of structures and community facilities; lack of ventilation, light or sanitary facilities; inadequate utilities; excessive land coverage; deleterious land use or layout; depreciation of physical maintenance; and lack of community planning. A conservation area shall meet at least three of the factors provided in this subdivision for projects approved on or after December 23, 1997[, the effective date of this section as it appears in senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly];

[(4)] (5) "Economic activity taxes", the total additional revenue from taxes which are imposed by a municipality and other taxing districts, and which are generated by economic activities within a redevelopment area over the amount of such taxes generated by economic activities within such redevelopment area in the calendar year prior to the adoption of the ordinance designating such a redevelopment area, while tax increment financing remains in effect, but excluding personal property taxes, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees or special assessments. For redevelopment projects or redevelopment plans approved after December 23, 1997[, the effective date of this section as it appears in senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly], if a retail establishment relocates within one year from one facility to another facility within the same county and the governing body of the municipality finds that the relocation is a direct beneficiary of tax increment financing, then for purposes of this definition, the economic activity taxes generated by the retail establishment shall equal the total additional revenues from economic activity taxes which are imposed by a municipality or other taxing district over the amount of economic activity taxes generated by the retail establishment in the calendar year prior to its relocation to the redevelopment area;

[(5)] (6) "Economic development area", any area or portion of an area located within the territorial limits of a municipality, which does not meet the requirements of subdivisions [(1) and (3)] (2) and (4) of this section, and in which the governing body of the municipality finds that redevelopment will not be solely used for development of commercial businesses which unfairly compete in the local economy and is in the public interest because it will:

(a) Discourage commerce, industry or manufacturing from moving their operations to another state; or

(b) Result in increased employment in the municipality; or

(c) Result in preservation or enhancement of the tax base of the municipality;

(7) "Excessive vacancy", any property improved with a building or buildings exhibiting a rate of vacancy of thirty-three percent of the total gross floor area for a period of twelve months or more;

[(6)] (8) "Gambling establishment", an excursion gambling boat as defined in section 313.800, RSMo, and any related business facility including any real property improvements which are directly and solely related to such business facility, whose sole purpose is to provide goods or services to an excursion gambling boat and whose majority ownership interest is held by a person licensed to conduct gambling games on an excursion gambling boat or licensed to operate an excursion gambling boat as provided in sections 313.800 to 313.850, RSMo. This subdivision shall be applicable only to a redevelopment area designated by ordinance adopted after December 23, 1997[, the effective date of this section as it appears in senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly];

[(7)] (9) "Municipality", a city, village, or incorporated town or any county of this state. For redevelopment areas or projects approved on or after December 23, 1997[, the effective date of this section as it appears in senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly], "municipality" applies only to cities, villages, incorporated towns or counties established for at least one year prior to such date;

[(8)] (10) "Obligations", bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by a municipality to carry out a redevelopment project or to refund outstanding obligations;

(11) "Obsolete property", any property or combination of properties where building and site improvements have become or are becoming vacant due to deficient design and layout, which exhibit a lack of usability and market rejection for the purposes as built, and where the property or properties involved demonstrate a zero rate of growth or a decline in assessed value for at least three successive reassessment years;

[(9)] (12) "Ordinance", an ordinance enacted by the governing body of a city, town, or village or a county or an order of the governing body of a county whose governing body is not authorized to enact ordinances;

[(10)] (13) "Payment in lieu of taxes", those estimated revenues from real property in the area selected for a redevelopment project, which revenues according to the redevelopment project or plan are to be used for a private use, which taxing districts would have received had a municipality not adopted tax increment allocation financing, and which would result from levies made after the time of the adoption of tax increment allocation financing during the time the current equalized value of real property in the area selected for the redevelopment project exceeds the total initial equalized value of real property in such area until the designation is terminated pursuant to subsection 2 of section 99.850;

[(11)] (14) "Redevelopment area", an area designated by a municipality, in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area, a conservation area, an economic development area, an enterprise zone pursuant to sections 135.200 to 135.256, RSMo, or a combination thereof, which area includes only those parcels of real property directly and substantially benefited by the proposed redevelopment project;

[(12)] (15) "Redevelopment plan", the comprehensive program of a municipality for redevelopment intended by the payment of redevelopment costs to reduce or eliminate those conditions, the existence of which qualified the redevelopment area as a blighted area, conservation area, economic development area, or combination thereof, and to thereby enhance the tax bases of the taxing districts which extend into the redevelopment area. Each redevelopment plan shall conform to the requirements of section 99.810;

[(13)] (16) "Redevelopment project", any development project within a redevelopment area in furtherance of the objectives of the redevelopment plan; any such redevelopment project shall include a legal description of the area selected for the redevelopment project;

[(14)] (17) "Redevelopment project costs" include the sum total of all reasonable or necessary costs incurred or estimated to be incurred, and any such costs incidental to a redevelopment plan or redevelopment project, as applicable. Such costs include, but are not limited to, the following:

(a) Costs of studies, surveys, plans, and specifications;

(b) Professional service costs, including, but not limited to, architectural, engineering, legal, marketing, financial, planning or special services. Except the reasonable costs incurred by the commission established in section 99.820 for the administration of sections 99.800 to 99.865, such costs shall be allowed only as an initial expense which, to be recoverable, shall be included in the costs of a redevelopment plan or project;

(c) Property assembly costs, including, but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, and the clearing and grading of land;

(d) Costs of rehabilitation, reconstruction, or repair or remodeling of existing buildings and fixtures;

(e) Initial costs for an economic development area;

(f) Costs of construction of public works or improvements;

(g) Financing costs, including, but not limited to, all necessary and incidental expenses related to the issuance of obligations, and which may include payment of interest on any obligations issued pursuant to sections 99.800 to 99.865 accruing during the estimated period of construction of any redevelopment project for which such obligations are issued and for not more than eighteen months thereafter, and including reasonable reserves related thereto;

(h) All or a portion of a taxing district's capital costs resulting from the redevelopment project necessarily incurred or to be incurred in furtherance of the objectives of the redevelopment plan and project, to the extent the municipality by written agreement accepts and approves such costs;

(i) Relocation costs to the extent that a municipality determines that relocation costs shall be paid or are required to be paid by federal or state law;

(j) Payments in lieu of taxes;

(18) "Retail enterprise", any retail activity business classified as SICs 52 through 59 except where such activity is an adjunct classification to a business operation also classified as manufacturing, assembly, or wholesale, SICs 20 through 39 and 51;

(19) "SIC", the standard industrial classification as such classifications are defined in the 1987 edition of the Standard Industrial Classification Manual as prepared by the executive office of the president, office of management and budget or a successor business classification system implemented by an agency or branch of the federal government;

[(15)] (20) "Special allocation fund", the fund of a municipality or its commission which contains at least two separate segregated accounts for each redevelopment plan, maintained by the treasurer of the municipality or the treasurer of the commission into which payments in lieu of taxes are deposited in one account, and economic activity taxes and other revenues are deposited in the other account;

[(16)] (21) "Taxing districts", any political subdivision of this state having the power to levy taxes;

[(17)] (22) "Taxing districts' capital costs", those costs of taxing districts for capital improvements that are found by the municipal governing bodies to be necessary and to directly result from the redevelopment project; [and]

[(18)] (23) "Vacant land", any parcel or combination of parcels of real property not used for industrial, commercial, or residential buildings.

99.871. 1. Tax increment financing, as provided for in sections 99.800 to 99.865, shall not be utilized for any redevelopment projects that are primarily retail enterprises. For the purposes of this section, "primarily" means that at least fifty-one percent of the area of the redevelopment project is reserved for retail enterprises. Tax increment financing shall be available, however, for redevelopment projects that are primarily retail enterprises if the redevelopment project is located within a redevelopment area that:

(1) Is part of a state or federal enterprise zone, federal empowerment zone, or in a distressed community as defined in section 135.530, RSMo; or

(2) Has at least fifty percent of the residents living within a one-quarter mile radius of the boundaries of the proposed redevelopment area with incomes not greater than the median income of all residents within the county in which the project is located according to the last decennial census; or

(3) Qualifies as abandoned or obsolete, or has excessive vacancies as defined in subdivisions (1), (7) and (11) of section 99.805; or

(4) Consists of an area that meets the criteria required for designation as a "conservation area" as provided for in subdivision (4) of section 99.805 and not more than forty-nine percent of the total land area exclusive of street and highway rights-of-way is vacant land.

2. Before tax increment financing shall be available for any redevelopment project located within a redevelopment area that otherwise qualifies pursuant to subdivision (2), (3) or (4) of subsection 1 of this section, the department of economic development shall determine, upon a physical examination of the proposed redevelopment area, that such area and the surrounding community has declined economically or has developed at a substantially slower rate of growth than the remaining part of that county or metropolitan area; and that the area is in demonstrable need of redevelopment when compared to the remaining part of that county or metropolitan area. Any tax increment financing commission or developer shall, upon request, submit information to the department of economic development to aid in determining whether the area is in demonstrable need of redevelopment. The determination shall be made after the department conducts a hearing on the record and makes a finding that, but for the use of primarily retail enterprises, the area would not be redeveloped at a rate or to an extent comparable to the surrounding community.

3. In no event shall a redevelopment area containing a redevelopment project primarily for retail purposes have a term longer than fifteen years from the date of approval.

4. Subsections 1 and 2 of this section shall not apply to any redevelopment plan or project approved by ordinance before December 31, 1998; provided, however, that this section shall not apply to any redevelopment plan or project approved by ordinance after that date if the department of economic development determines that substantial financial expenditures have occurred with respect to such plan or project prior to August 28, 1998."; and

Further amend the title and enacting clause accordingly.

Senator Goode moved that the above amendment be adopted.

Senator Mathewson raised the point of order that SA 8 is out of order in that it goes beyond the scope and purpose of the bill.

The point of order was referred to the President Pro Tem, who ruled it well taken.

At the request of Senator Mathewson, HS for HCS for HB 1656, with SCS and SS for SCS, as amended (pending), was placed on the Informal Calendar.

PRIVILEGED MOTIONS

Senator Caskey moved that SCS for SB 659, with HS for HCS, be taken up for 3rd reading and final passage, which motion prevailed.

HS for HCS for SCS for SB 659, entitled:

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 659

An Act to repeal sections 43.150, 57.201, 57.220, 57.221 and 57.251, RSMo 1994, and sections 43.050 and 57.250, RSMo Supp. 1997, relating to law enforcement officers, and to enact in lieu thereof eight new sections relating to the same subject.

Was taken up.

Senator Caskey moved that HS for HCS for SCS for SB 659 be adopted, which motion prevailed by the following vote:

Senator Caskey moved that HS for HCS for SCS for SB 659 be read the 3rd time and finally passed.

At the request of Senator Caskey, the above motion was withdrawn.

Having voted on the prevailing side, Senator Caskey moved that the vote by which HS for HCS for SCS for SB 659 was adopted be reconsidered, which motion prevailed by the following vote:

At the request of Senator Caskey, the motion to adopt HS for HCS for SCS for SB 659 was withdrawn.

Senator Quick announced that photographers from KOMU-TV had been given permission to take pictures in the Senate Chamber today.

HOUSE BILLS ON THIRD READING

Senator Maxwell moved that HCS for HB 1197, with SCS (pending), be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

SCS for HCS for HB 1197 was again taken up.

Senator Maxwell offered SS for SCS for HCS for HB 1197, entitled:

SENATE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1197

An Act to amend chapter 620, RSMo, by adding thereto twelve new sections for the purpose of establishing the family development account program.

Senator Maxwell moved that SS for SCS for HCS for HB 1197 be adopted.

Senator Flotron offered SA 1:

SENATE AMENDMENT NO. 1

Amend Senate Substitute for Senate Committee Substitute for House Committee Substitute for House Bill No. 1197, Page 1, Section A, Line 4, by inserting immediately after all of said line the following:

"135.326. As used in sections 135.325 to 135.339, the following terms shall mean:

(1) "Business entity", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state under the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo;

(2) "Handicap", a mental, physical, or emotional impairment that substantially limits one or more major life activities, whether the impairment is congenital or acquired by accident, injury or disease, and where the impairment is verified by medical findings;

(3) "Nonrecurring adoption expenses", reasonable and necessary adoption fees, court costs, attorney fees, and other expenses which are directly related to the legal adoption of a special needs child and which are not incurred in violation of federal, state, or local law;

(4) "Special needs child", a child for whom it has been determined by the division of family services, or by a child placing agency licensed by the state, or by a court of competent jurisdiction to be a child:

(a) That cannot or should not be returned to the home of his or her parents; [and] or

(b) Who has a specific factor or condition such as ethnic background, age, membership in a minority or sibling group, medical condition, or handicap because of which it is reasonable to conclude that such child cannot be easily placed with adoptive parents; [and] or

(c) Except where it would be against the best interests of the child because of such factors as the existence of significant emotional ties with prospective adoptive parents while in the care of such parents as a foster child, a reasonable, but unsuccessful, effort has been made to place the child with appropriate adoptive parents;

(5) "State tax liability", any liability incurred by a taxpayer under the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions.

135.327. 1. Any person residing in this state who [legally adopts] proceeds in good faith with the adoption of a special needs child on or after January 1, [1988] 1999, shall be eligible to receive a tax credit of up to ten thousand dollars for nonrecurring adoption expenses for each child [adopted] that may be applied to taxes due under chapter 143, RSMo. Any business entity providing funds to an employee to enable that employee to [legally adopt] proceed in good faith with the adoption of a special needs child shall be eligible to receive a tax credit of up to ten thousand dollars for nonrecurring adoption expenses for each child [adopted] that may be applied to taxes due under such business entity's state tax liability, except that only one ten thousand dollar credit is available for each special needs child that is adopted.

2. Individuals and business entities may claim a tax credit for their total nonrecurring adoption expenses in each year that the expenses are incurred. A claim for fifty percent of the credit shall be allowed when the child is placed in the home. A claim for the remaining fifty percent shall be allowed when the adoption is final. The total of these tax credits shall not exceed the maximum limit of ten thousand dollars per child. The cumulative amount of tax credits which may be claimed by taxpayers for nonrecurring adoption expenses in any one fiscal year shall not exceed two million dollars.

3. Notwithstanding any provision of law to the contrary, any individual or business entity may assign tax credits allowed in this section to the not for profit organization involved in the adoption proceedings.

135.333. 1. Any amount of tax credit which exceeds the tax due shall not be refunded but may be carried over to any subsequent taxable year, not to exceed a total of five years for which a tax credit may be taken for each child adopted.

2. Tax credits that are assigned to not for profit organizations as allowed in section 135.326, RSMo, may be assigned in their entirety notwithstanding the taxpayer's tax due."; and

Further amend the title and enacting clause accordingly.

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

Senator Maxwell moved that SS for SCS for HCS for HB 1197, as amended, be adopted, which motion prevailed.

On motion of Senator Maxwell, SS for SCS for HCS for HB 1197, as amended, was read the 3rd time and passed by the following vote:

The President declared the bill passed.

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

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

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

HCS for HB 1536, with SCS, entitled:

An Act to repeal sections 302.291 and 302.292, RSMo 1994, and section 302.130, RSMo Supp. 1997, relating to the reporting and examination of impaired drivers, and to enact in lieu thereof three new sections relating to the same subject, with penalty provisions and an effective date.

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

SCS for HCS for HB 1536, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1536

An Act to repeal sections 302.291 and 302.292, RSMo 1994, and to enact in lieu thereof two new sections relating to the reporting and examination of impaired drivers, with penalty provisions and an effective date.

Was taken up.

Senator Sims moved that SCS for HCS for HB 1536 be adopted, which motion prevailed.

On motion of Senator Sims, SCS for HCS for HB 1536 was read the 3rd time and passed by the following vote:

The President declared the bill passed.

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

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

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

President Pro Tem McKenna assumed the Chair.

PRIVILEGED MOTIONS

Senator Mathewson moved that SS for SB 792, with HCS, as amended, be taken up for 3rd reading and final passage, which motion prevailed.

HCS for SS for SB 792, as amended, entitled:

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE SUBSTITUTE FOR

SENATE BILL NO. 792

An Act to repeal sections 408.100, 408.200, 408.232, 408.233, 408.551 and 490.250, RSMo 1994, and sections 362.413, 408.140, 427.125 and 473.543, RSMo Supp. 1997, relating to financial transactions, and to enact in lieu thereof sixteen new sections relating to the same subject.

Was taken up.

Senator Mathewson moved that HCS for SS for SB 792, as amended, be adopted, which motion prevailed by the following vote:

On motion of Senator Mathewson, HCS for SS for SB 792, as amended, was read the 3rd time and passed by the following vote:

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.

Bill ordered enrolled.

Senator House moved that SCS for SB 922, with HCS, as amended, be taken up for 3rd reading and final passage, which motion prevailed.

HCS for SCS for SB 922, as amended, entitled:

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 922

An Act to repeal sections 288.126, 288.150 and 288.290, RSMo 1994, and sections 288.034, 288.090, 288.130, 288.160 and 288.380, RSMo Supp. 1997, relating to employment security, and to enact in lieu thereof eight new sections relating to the same subject, with penalty provisions and an effective date.

Was taken up.

Senator House moved that HCS for SCS for SB 922, as amended, be adopted, which motion prevailed by the following vote:

On motion of Senator House, HCS for SCS for SB 922, as amended, was read the 3rd time and passed by the following vote:

The President Pro Tem declared the bill passed.

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

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

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

Bill ordered enrolled.

Senator Sims moved that SB 674, with HCS, as amended, be taken up for 3rd reading and final passage, which motion prevailed.

HCS for SB 674, as amended, entitled:

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 674

An Act to repeal sections 376.816 and 453.160, RSMo 1994, and sections 192.016, 211.444, 211.464, 452.402, 453.025, 453.030, 453.040, 453.060, 453.070, 453.075, 453.077, 453.080, 453.112 and 453.170, RSMo Supp. 1997, relating to adoption, and to enact in lieu thereof fifteen new sections relating to the same subject.

Was taken up.

Senator Sims moved that HCS for SB 674, as amended, be adopted, which motion prevailed by the following vote:

On motion of Senator Sims, HCS for SB 674, as amended, was read the 3rd time and passed by the following vote:

The President Pro Tem declared the bill passed.

The emergency clause was adopted by the following vote:

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

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

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

Bill ordered enrolled.

Senator Caskey moved that the Senate refuse to concur in HS for HCS for SCS for SB 659, 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.

Senator Maxwell moved that SS for SCS for SBs 583 and 645, with HCS, as amended, be taken up for 3rd reading and final passage, which motion prevailed.

HCS for SS for SCS for SBs 583 and 645, as amended, entitled:

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILLS NOS. 583 and 645

An Act relating to the common language of the state.

Was taken up.

Senator Maxwell moved that HCS for SS for SCS for SBs 583 and 645, as amended, be adopted, which motion prevailed by the following vote:

On motion of Senator Maxwell, HCS for SS for SCS for SBs 583 and 645, as amended, was read the 3rd time and passed by the following vote:

The President Pro Tem declared the bill passed.

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

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

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

Bill ordered enrolled.

REPORTS OF STANDING COMMITTEES

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 HCS for HB 1526, with SCS, begs leave to report that it has considered the same and recommends that the bill do pass.

CONFERENCE COMMITTEE REPORTS

Senator Bentley, on behalf of the conference committee appointed to act with a like committee from the House on SCS for HB 1683, as amended, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1683

Mr. President: Your Conference Committee, appointed to confer with a like committee of the House on Senate Committee Substitute for House Bill No. 1683, as amended, 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 House Bill No. 1683;

2. That the Senate recede from its position on Senate Committee Substitute for House Bill No. 1683, as amended;

3. That the attached Conference Committee Substitute for Senate Committee Substitute for House Bill No. 1683 be adopted.