Journal of the Senate

FIRST REGULAR SESSION


THIRTY-SEVENTH DAY--TUESDAY, MARCH 18, 1997


     The Senate met pursuant to adjournment.

     Senator Johnson in the Chair.

     The Chaplain offered the following prayer:

     Heavenly Father, Isaiah wrote, "The windows from on high are open." We are made to rejoice just to know that there is a Father in Heaven who is open to our prayers, aware of our problems and willing to help us. We pray for Your guidance in this body. 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:

Present--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannFlotron
GoodeGravesHouseHoward
JacobJohnsonKenneyKinder
KlarichLybyerMathewsonMaxwell
McKennaMuellerQuickRohrbach
RussellSchneiderScottSims
SingletonStaplesWestfallWiggins
Yeckel--33
Absent with leave--Senators--Curls--1
The Lieutenant Governor was present.

     President Wilson assumed the Chair.

SENATE BILLS FOR PERFECTION

     Senator McKenna moved that SB 51, with SCS and SS for SCS (pending), be called from the Informal Calendar and again taken up for perfection, which motion prevailed.

     At the request of Senator McKenna, SS for SCS for SB 51 was withdrawn.

     Senator McKenna offered SS No. 2 for SCS for SB 51, entitled:

SENATE SUBSTITUTE NO. 2 FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 51

     An Act to repeal sections 452.150, 452.355, 452.370, 452.377, 452.405, 452.411, 452.416, 452.600, 452.605 and 454.496 RSMo 1994, and sections 452.330, 452.340, 452.375 and 452.400, RSMo Supp. 1996, relating to child custody and child support proceedings, and to enact in lieu thereof fifteen new sections relating to the same subject.

     Senator McKenna moved that SS No. 2 for SCS for SB 51 be adopted.

     Senator Johnson resumed the Chair.

     Senator Caskey offered SA 1:

SENATE AMENDMENT NO. 1

     Amend Senate Substitute No. 2 for Senate Committee Substitute for Senate Bill No. 51, Page 21, Section 452.400, Line 19, by inserting immediately after the period "." the following: "Such order shall include a provision that the sheriff shall enforce the rights of either parent to custody or visitation, as the case may be, unless the court issues a subsequent order pursuant to chapters 210, 211 or 433, RSMo, to limit or deny either parent's access to the child.; and

     Further amend said bill and section, page 23, line 3, by striking the opening and closing brackets "[ ]" around the period "."; and further amend said line by striking "or enforcement. The motion may be made on a simple"; and further amend lines 4 to 19 by striking all of said lines; and further amend line 20 by striking the following: "5."; and

     Further amend said bill and section, page 24, line 7, by striking the opening and closing brackets "[ ]" around "4."; and further amend said line by striking the following: "6."; and further amend lines 15 to 28 by striking all of said lines; and

     Further amend said bill and section, page 25, lines 1 to 28 by striking all of said lines; and

     Further amend said bill and section, page 26, lines 1 to 3 by striking all of said lines; and

     Further amend the title and enacting clause accordingly.

     Senator Caskey moved that the above amendment be adopted.

     Senator McKenna offered SSA 1 for SA 1:

SENATE SUBSTITUTE AMENDMENT NO. 1 FOR SENATE AMENDMENT NO. 1

     Amend Senate Substitute No. 2 for Senate Committee Substitute for Senate Bill No. 51, Page 21, Section 452.400, Line 19, by inserting immediately after the period "." the following: "Such order shall include a provision that the sheriff shall enforce the rights of either parent to custody or visitation, as the case may be, unless the court issues a subsequent order pursuant to chapters 210, 211 or 433, RSMo, to limit or deny either parent's access to the child.; and

     Further amend said bill and section, page 23, line 3, by inserting immediately after the word "enforcement" the following: "if the sheriff fails to enforce an order pursuant to subsection 1 of this section".

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

     Senator Caskey offered SA 2, which was read:

SENATE AMENDMENT NO. 2

     Amend Senate Substitute No. 2 for Senate Committee Substitute for Senate Bill No. 51, pages 24 and 25, Section 452.401, Lines 25-28 of page 24 and lines 1-11 of page 25, by striking all of said lines and inserting in lieu thereof the following: "every clerk of the court in this state. Such fee shall be forwarded monthly by".

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

     Senator Sims offered SA 3:

SENATE AMENDMENT NO. 3

     Amend Senate Substitute No. 2 for Senate Committee Substitute for Senate Bill No. 51, Page 7, Section 452.340, Line 14, by inserting immediately after the word "parents" the following: "except for cases where the court specifically finds to the contrary"; and on page 15, line 27, by inserting immediately after the word "marriage" the following "except for cases where the court specifically finds to the contrary".

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

     Senator Kenney offered SA 4:

SENATE AMENDMENT NO. 4

     Amend Senate Substitute No. 2 for Senate Committee Substitute for Senate Bill No. 51, Page 15, Section 452.375, Line 18 of said page, by inserting immediately after said line the following:

     "3. In any court proceeding regarding the physical and legal custody of a child, the court shall not consider the fact that a child is enrolled in a home school in determining the custody of the child, and shall not order the custodial parent or guardian to enroll the child in a school other than the home school, unless the court finds that the custodial parent or guardian has failed to provide evidence of the home schooling pursuant to section 167.031, RSMo"; and

     Further amend said section by renumbering the remaining subsections accordingly.

     Senator Kenney moved that the above amendment be adopted.

     Senator Klarich offered SSA 1 for SA 4, which was read:

SENATE SUBSTITUTE AMENDMENT NO. 1 FOR SENATE AMENDMENT NO. 4

     Amend Senate Substitute No. 2 for Senate Committee Substitute for Senate Bill No. 51, Page 15, Section 452.375, Line 18 of said page, by inserting immediately after said line the following:

     "3. In any court proceeding regarding the physical and legal custody of a child, the court shall not consider the fact that a child is enrolled in a home school alone in determining the custody of the child. The court shall not order the custodial parent or guardian to enroll the child in any school other than the school chosen by the custodial parent in compliance with state law."; and

     Further amend said section by renumbering the remaining subsections accordingly.

     Senator Klarich moved that the above substitute amendment be adopted.

     At the request of Senator Klarich, SSA 1 for SA 4 was withdrawn.

     At the request of Senator Kenney, SA 4 was withdrawn.

     Senator Jacob offered SA 5, which was read:

SENATE AMENDMENT NO. 5

     Amend Senate Substitute No. 2 for Senate Committee Substitute for Senate Bill No. 51, Page 31, Section 454.496, Line 18, by inserting the following:

     "Section 1. 1. Notwithstanding the provisions of subsection 1 of section 452.455, RSMo, or subsection 6 of section 452.370, RSMo, to the contrary, the court with jurisdiction may decline to exercise jurisdiction in any modification proceeding if such court finds that exercise of its jurisdiction would be clearly inconvenient to either party to the proceeding. The court shall consider the following factors in determining whether exercise of its jurisdiction would be clearly inconvenient:

     (1) Place of residence of the parties;

     (2) Location of witnesses; and

     (3) The availability to either party of another, more convenient court with jurisdiction.

     2. A finding that a court is a clearly inconvenient forum pursuant to subsection 1 of this section may be made upon the court's own motion or upon the motion of either party to the proceeding."; and

     Further amend the title and enacting clause accordingly.

     Senator Jacob moved that the above amendment be adopted.

     At the request of Senator McKenna, SB 51, with SCS, SS No. 2 for SCS and SA 5 (pending), was placed on the Informal Calendar.

MESSAGES FROM THE HOUSE

     The following message was 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 has taken up and adopted HCR 13.

HOUSE CONCURRENT RESOLUTION NO. 13

     WHEREAS, the residential building industry is a major Missouri industry and is vital to the economic health of the state; and

     WHEREAS, residential building contractors are not required to be licensed or regulated by the state; and

     WHEREAS, all cities and counties in the state of Missouri have not exercised the authority to license or regulate residential building contractors; and

     WHEREAS, problems resulting from violations of city and county building codes continue to occur; and

     WHEREAS, existing city and county building codes are not always adequately enforced; and

     WHEREAS, lack of consumer knowledge prevents home buyers from adequately protecting themselves from dishonest or unqualified residential building contractors; and

     WHEREAS, losses incurred by homeowners as a result of improper construction practices are a serious concern:

     NOW, THEREFORE, BE IT RESOLVED by the members of the Missouri House of Representatives of the Eighty-ninth General Assembly, the Senate concurring therein, that an interim committee of the General Assembly be created to be composed of five members of the House, to be appointed by the Speaker of the House, and five members of the Senate, to be appointed by the President Pro Tem of the Senate, and that said committee be authorized to function during the interim between the first and second regular sessions of the Eighty-ninth General Assembly. No more than three members of the House and three members of the Senate shall be from the same political party; and

     BE IT FURTHER RESOLVED that said committee make a in-depth study and review of the issues surrounding the need for regulation or licensure of residential building contractors and formulate comprehensive solutions to the problems that exist with regard to purchasing and constructing safe and structurally sound residences; and

     BE IT FURTHER RESOLVED that the committee prepare a report, together with its recommendations for any legislative action it deems necessary for submission during the second regular session of the Eighty-ninth General Assembly; and

     BE IT FURTHER RESOLVED that the Committee on Legislative Research, Senate Research and House Research provide such legal, research, clerical, technical and bill drafting services as the committee may require in the performance of its duties; and

     BE IT FURTHER RESOLVED that the actual and necessary expenses of the committee, its members, and any staff personnel assigned to the committee incurred in attending meetings of the committee or any subcommittee thereof, be paid from the Joint Contingent Fund.

     In which the concurrence of the Senate is respectfully requested.

CONCURRENT RESOLUTIONS

     Senator Howard offered the following concurrent resolution:

SENATE CONCURRENT RESOLUTION NO. 21

     BE IT RESOLVED by the Senate of the Eighty-ninth General Assembly, the House of Representatives concurring therein, that the United States Corps of Engineers is hereby requested to remove the drift immediately below the Missouri Highway 84 Bridge which crosses the St. Francis River into Clay County, Arkansas; and

     BE IT THEREFORE RESOLVED that upon adoption of this resolution the Secretary of the Senate shall forward a copy hereof to Mr. Martin Lancaster, Assistant Secretary of the Army for Civil Works and Major General Robert B. Flowers, Commander Lower Mississippi Valley Division of the United States Army Corps of Engineers.

REFERRALS

     President Pro Tem McKenna referred SCR 21 to the Committee on Rules, Joint Rules and Resolutions.

     On motion of Senator Quick, the Senate recessed until 3:00 p.m.

RECESS

     The time of recess having expired, the Senate was called to order by Senator Johnson.

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

     Senator Banks moved that SB 140, with SCS and SA 3 (pending), be called from the Informal Calendar and again taken up for perfection, which motion prevailed.

     SA 3 was again taken up.

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

     Senator Goode offered SA 4:

SENATE AMENDMENT NO. 4

     Amend Senate Committee Substitute for Senate Bill No. 140, Page 4, Section 303.026, Line 17, by striking the word "statement" and inserting in lieu thereof the word "affidavit"; and further on line 22, by striking "The statement" and inserting in lieu thereof the following: "The affidavit need not be notarized, but it shall be acknowledged by the person processing the form. The affidavit"; and

     Further amend said bill, page and section, line 23, by striking the word "declaration" and inserting in lieu thereof the word "affidavit"; and further on line 23 by striking "575.060" and inserting in lieu thereof the following: "575.050".

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

     Senator Scott offered SA 5:

SENATE AMENDMENT NO. 5

     Amend Senate Committee Substitute for Senate Bill No. 140, Page 7, Section 303.030, Line 70, by inserting immediately after all of said line the following:

     "303.190. 1. A "motor vehicle liability policy" as said term is used in this chapter shall mean an owner's or an operator's policy of liability insurance, certified as provided in section 303.170 or section 303.180 as proof of financial responsibility, and issued, except as otherwise provided in section 303.180 by an insurance carrier duly authorized to transact business in this state, to or for the benefit of the person named therein as insured.

     2. Such owner's policy of liability insurance:

     (1) Shall designate by explicit description or by appropriate reference all motor vehicles with respect to which coverage is thereby to be granted; and

     (2) Shall insure the person named therein and any other person, as insured, using any such motor vehicle or motor vehicles with the express or implied permission of such named insured, against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of such motor vehicle or motor vehicles within the United States of America or the Dominion of Canada, subject to limits, exclusive of interest and costs, with respect to each such motor vehicle, as follows: [twenty-five] fifty thousand dollars because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, [fifty] one hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, and [ten] twenty-five thousand dollars because of injury to or destruction of property of others in any one accident.

     3. Such operator's policy of liability insurance shall insure the person named as insured therein against loss from the liability imposed upon him by law for damages arising out of the use by him of any motor vehicle not owned by him, within the said territorial limits and subject to the same limits of liability as are set forth above with respect to any owner's policy of liability insurance.

     4. Such motor vehicle liability policy shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged therefor, the policy period and the limits of liability, and shall contain an agreement or be endorsed that insurance is provided thereunder in accordance with the coverage defined in this chapter as respects bodily injury and death or property damage, or both, and is subject to all the provisions of this chapter.

     5. Such motor vehicle liability policy need not insure any liability under any workers' compensation law nor any liability on account of bodily injury to or death of an employee of the insured while engaged in the employment, other than domestic, of the insured, or while engaged in the operation, maintenance or repair of any such motor vehicle nor any liability for damage to property owned by, rented to, in charge of or transported by the insured.

     6. Every motor vehicle liability policy shall be subject to the following provisions which need not be contained therein:

     (1) The liability of the insurance carrier with respect to the insurance required by this chapter shall become absolute whenever injury or damage covered by said motor vehicle liability policy occurs; said policy may not be canceled or annulled as to such liability by any agreement between the insurance carrier and the insured after the occurrence of the injury or damage; no statement made by the insured or on his behalf and no violation of said policy shall defeat or void said policy;

     (2) The satisfaction by the insured of a judgment for such injury or damage shall not be a condition precedent to the right or duty of the insurance carrier to make payment on account of such injury or damage;

     (3) The insurance carrier shall have the right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in subdivision (2) of subsection 2 of this section;

     (4) The policy, the written application thereof, if any, and any rider or endorsement which does not conflict with the provisions of this chapter shall constitute the entire contract between the parties.

     7. Any policy which grants the coverage required for a motor vehicle liability policy may also grant any lawful coverage in excess of or in addition to the coverage specified for a motor vehicle liability policy and such excess or additional coverage shall not be subject to the provisions of this chapter. With respect to a policy which grants such excess or additional coverage the term "motor vehicle liability policy" shall apply only to that part of the coverage which is required by this section.

     8. Any motor vehicle liability policy may provide that the insured shall reimburse the insurance carrier for any payment the insurance carrier would not have been obligated to make under the terms of the policy except for the provisions of this chapter.

     9. Any motor vehicle liability policy may provide for the prorating of the insurance thereunder with other valid and collectible insurance.

     10. The requirements of a motor vehicle liability policy may be fulfilled by the policies of one or more insurance carriers which policies together meet such requirements.

     11. Any binder issued pending the issuance of a motor vehicle liability policy shall be deemed to fulfill the requirement for such a policy."; and

     Further amend the title and enacting clause accordingly.

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

     Senator Clay offered SA 6, which was read:

SENATE AMENDMENT NO. 6

     Amend Senate Committee Substitute for Senate Bill No. 140, Page 7, Section 303.030, Line 70, by inserting after said line the following:

     "Section 1. An entity regulated under chapter 375, RSMo shall not deny, fail to renew or terminate a contract or account with an agent or broker for the sale of insurance coverage on a motor vehicle because risks associated with the geographic area in which the vehicle is registered."; and

     Further amend the title and enacting clause accordingly.

     Senator Clay moved that the above amendment be adopted.

     Senator Mueller raised the point of order that SA 6 is out of order in that it goes beyond the subject matter of the bill.

     The point of order was referred to the President Pro Tem, who ruled it not well taken.

     SA 6 was again taken up.

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

     Senator Banks offered SA 7, which was read:

SENATE AMENDMENT NO. 7

     Amend Senate Committee Substitute for Senate Bill No. 140, Page 3, Section 303.026, Line 7, by striking the word "of" as it appears the first time on said line and inserting in lieu thereof the word "at"; and

     Further amend said bill, page 5, section 303.026, line 31, by inserting after "RSMo" the following: ", 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"; and

     Further amend said bill, page and section, line 39, by striking the word "shall" and inserting in lieu thereof the word "may".

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

     Senator Banks moved that SCS for SB 140, as amended, be adopted, which motion prevailed.

     On motion of Senator Banks, SCS for SB 140, as amended, was declared perfected and ordered printed.

     Senator Mathewson moved that SB 165, with SCS, be called from the Informal Calendar and taken up for perfection, which motion prevailed.

     SCS for SB 165, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 165

     An Act to repeal sections 143.805, 148.064 and 178.896, RSMo 1994, and sections 135.225, 135.230, 135.247, 135.460, 135.500, 135.503, 135.508, 135.516 and 178.895, RSMo Supp. 1996, relating to the department of economic development, and to enact in lieu thereof thirteen new sections relating to the same subject, with an emergency clause.

     Was taken up.

     Senator Mathewson moved that SCS for SB 165 be adopted.

     Senator Mathewson offered SS for SCS for SB 165, entitled:

SENATE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 165

     An Act to repeal sections 143.805, 148.064, 178.896, 620.1072 and 620.1078, RSMo 1994, and sections 135.225, 135.230, 135.247, 135.352, 135.460, 135.500, 135.503, 135.508, 135.516, 178.895 and 447.710, RSMo Supp. 1996, relating to the department of economic development, and to enact in lieu thereof thirty-four new sections relating to the same subject.

     Senator Mathewson moved that SS for SCS for SB 165 be adopted.

     Senator Howard assumed the Chair.

     Senator Caskey offered SA 1:

SENATE AMENDMENT NO. 1

     Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, Section 135.225, Line 10, by inserting above said line the following:

     "135.208. 1. In addition to the number of enterprise zones authorized under the provisions of sections 135.206 and 135.210, the department of economic development shall designate one such zone in any county of the third class which is south of the Missouri River and which adjoins one county of the second class and also the state of Oklahoma. Such designation shall only be made if the area of the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

     2. In addition to the number of enterprise zones authorized under the provisions of sections 135.206 and 135.210, the department of economic development shall designate one such zone in any county of the third class which borders the Missouri River and which adjoins a county of the second class with a population of at least one hundred thousand inhabitants and which contains a branch of the state university. Such designation shall only be made if the area of the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

     3. In addition to the number of enterprise zones authorized under the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in every county of the third class without a township form of government with a population of more than seven thousand eight hundred but less than ten thousand inhabitants located south of the Missouri River, which adjoins one third class county with a township form of government, and which adjoins no first or second class county. Such enterprise zone designation shall only be made if the area in the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

     4. In addition to the number of enterprise zones authorized under the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in the county seat of every county of the third class with a township form of government with a population of more than eighteen thousand but less than twenty-five thousand, and with an assessed valuation of between one hundred seventy million dollars and one hundred seventy-five million dollars as published in the 1996 proceedings of the Missouri state tax commission. Such enterprise zone designation shall only be made if the area in the county 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 Caskey moved that the above amendment be adopted, which motion prevailed.

     Senator Childers offered SA 2:

SENATE AMENDMENT NO. 2

     Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 14, Section 135.247, Line 6, of said page, 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 under 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 fifty percent of the purchase price of the best available control technology equipment connected with the production of charcoal in the state of Missouri. The credit may be claimed for a period of five years 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 four 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.

     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 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.

     4. The director of the department of natural resources 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 Klarich offered SA 3:

SENATE AMENDMENT NO. 3

     Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 31, Line 35, by inserting immediately after said line the following:

     "144.030. 1. There is hereby specifically exempted from the provisions of sections 144.010 to 144.525 and from the computation of the tax levied, assessed or payable pursuant to sections 144.010 to 144.525 such retail sales as may be made in commerce between this state and any other state of the United States, or between this state and any foreign country, and any retail sale which the state of Missouri is prohibited from taxing pursuant to the Constitution or laws of the United States of America, and such retail sales of tangible personal property which the general assembly of the state of Missouri is prohibited from taxing or further taxing by the constitution of this state.

     2. There are also specifically exempted from the provisions of the local sales tax law as defined in section 32.085, RSMo, section 238.235, RSMo, and sections 144.010 to 144.525 and 144.600 to 144.745 and from the computation of the tax levied, assessed or payable pursuant to the local sales tax law as defined in section 32.085, RSMo, section 238.235, RSMo, and sections 144.010 to 144.525 and 144.600 to 144.745:

     (1) Motor fuel or special fuel subject to an excise tax of this state, unless all or part of such excise tax is refunded pursuant to section 142.584, RSMo; or upon the sale at retail of fuel to be consumed in manufacturing or creating gas, power, steam, electrical current or in furnishing water to be sold ultimately at retail; or feed for livestock or poultry which is to be used in the feeding of livestock or poultry to be sold ultimately in processed form or otherwise at retail; or grain to be converted into foodstuffs which are to be sold ultimately in processed form at retail; or seed, limestone or fertilizer which is to be used for seeding, liming or fertilizing crops which when harvested will be sold at retail or will be fed to livestock or poultry to be sold ultimately in processed form at retail; economic poisons registered pursuant to the provisions of the Missouri pesticide registration law (sections 281.220 to 281.310, RSMo) which are to be used in connection with the growth or production of crops, fruit trees or orchards applied before, during, or after planting, the crop of which when harvested will be sold at retail or will be converted into foodstuffs which are to be sold ultimately in processed form at retail;

     (2) Materials, manufactured goods, machinery and parts which when used in manufacturing, processing, compounding, mining, producing or fabricating become a component part or ingredient of the new personal property resulting from such manufacturing, processing, compounding, mining, producing or fabricating and which new personal property is intended to be sold ultimately for final use or consumption; and materials, including without limitation, gases and manufactured goods, including without limitation, slagging materials and firebrick, which are ultimately consumed in the manufacturing process by blending, reacting or interacting with or by becoming, in whole or in part, component parts or ingredients of steel products intended to be sold ultimately for final use or consumption;

     (3) Materials, replacement parts and equipment purchased for use directly upon, and for the repair and maintenance or manufacture of, motor vehicles, watercraft, railroad rolling stock or aircraft engaged as common carriers of persons or property;

     (4) Replacement machinery [and], equipment, and parts and the materials and supplies solely required for the installation or construction of such replacement machinery [and], equipment, [replacing and used for the same purposes or to produce a substantially similar product as the machinery and equipment, which is purchased for] and parts used in directly [for] manufacturing [or], fabricating or producing a product which is intended to be sold ultimately for final use or consumption; and machinery and equipment, and the materials and supplies required solely for the operation, installation or construction of such machinery and equipment, purchased and used to establish new, or to replace or expand existing, material recovery processing plants in this state. For the purposes of this subdivision, a "material recovery processing plant" means a facility which converts recovered materials into a new product, or a different form which is used in producing a new product, and shall include a facility or equipment which is used exclusively for the collection of recovered materials for delivery to a material recovery processing plant but shall not include motor vehicles used on highways. For purposes of this section, the terms "motor vehicle" and "highway" shall have the same meaning pursuant to section 301.010, RSMo;

     (5) Machinery [and], equipment, and parts and the materials and supplies solely required for the installation or construction of such machinery and equipment, purchased and used to establish new or to expand existing manufacturing, mining or fabricating plants in the state if such machinery and equipment is used directly in manufacturing, mining or fabricating a product which is intended to be sold ultimately for final use or consumption;

     (6) Tangible personal property which is used exclusively in the manufacturing, processing, modification or assembling of products sold to the United States government or to any agency of the United States government;

     (7) Animals or poultry used for breeding or feeding purposes;

     (8) Newsprint used in newspapers published for dissemination of news to the general public;

     (9) The rentals of films, records or any type of sound or picture transcriptions for public commercial display;

     (10) Pumping machinery and equipment used to propel products delivered by pipelines engaged as common carriers;

     (11) Railroad rolling stock for use in transporting persons or property in interstate commerce and motor vehicles licensed for a gross weight of twenty-four thousand pounds or more or trailers used by common carriers, as defined in section 390.020, RSMo, solely in the transportation of persons or property in interstate commerce;

     (12) Electrical energy used in the actual primary manufacture, processing, compounding, mining or producing of a product, or electrical energy used in the actual secondary processing or fabricating of the product, in facilities owned or leased by the taxpayer, if the total cost of electrical energy so used exceeds ten percent of the total cost of production, either primary or secondary, exclusive of the cost of electrical energy so used. For purposes of this subdivision, "processing" means any mode of treatment, act or series of acts performed upon materials to transform and reduce them to a different state or thing, including treatment necessary to maintain or preserve such processing by the producer at the production facility;

     (13) Anodes which are used or consumed in manufacturing, processing, compounding, mining, producing or fabricating and which have a useful life of less than one year;

     (14) Machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring air pollution, and materials and supplies solely required for the installation, construction or reconstruction of such machinery, equipment, appliances and devices, and so certified as such by the director of the department of natural resources, except that any action by the director pursuant to this subdivision may be appealed to the air conservation commission which may uphold or reverse such action;

     (15) Machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring water pollution, and materials and supplies solely required for the installation, construction or reconstruction of such machinery, equipment, appliances and devices, and so certified as such by the director of the department of natural resources, except that any action by the director pursuant to this subdivision may be appealed to the Missouri clean water commission which may uphold or reverse such action;

     (16) Tangible personal property purchased by a rural water district;

     (17) All amounts paid or charged for admission or participation or other fees paid by or other charges to individuals in or for any place of amusement, entertainment or recreation, games or athletic events, including museums, fairs, zoos and planetariums, owned or operated by a municipality or other political subdivision where all the proceeds derived therefrom benefit the municipality or other political subdivision and do not inure to any private person, firm, or corporation;

     (18) All sales of insulin and prosthetic or orthopedic devices as defined on January 1, 1980, by the federal medicare program pursuant to Title XVIII of the Social Security Act of 1965, including the items specified in section 1862(a)(12) of that act, and also specifically including hearing aids and hearing aid supplies and all sales of drugs which may be legally dispensed by a licensed pharmacist only upon a lawful prescription of a practitioner licensed to administer those items, including samples and materials used to manufacture samples which may be dispensed by a practitioner authorized to dispense such samples;

     (19) All sales made by or to religious and charitable organizations and institutions in their religious, charitable or educational functions and activities and all sales made by or to all elementary and secondary schools operated at public expense in their educational functions and activities;

     (20) All sales of aircraft to common carriers for storage or for use in interstate commerce and all sales made by or to not for profit civic, social, service or fraternal organizations, including fraternal organizations which have been declared tax exempt organizations pursuant to section 501(c)(8) or (10) of the 1986 Internal Revenue Code, as amended, solely in their civic or charitable functions and activities and all sales made to eleemosynary and penal institutions and industries of the state, and all sales made to any private not for profit institution of higher education not otherwise excluded pursuant to subdivision (19) of this subsection or any institution of higher education supported by public funds, and all sales made to a state relief agency in the exercise of relief functions and activities;

     (21) All ticket sales made by benevolent, scientific and educational associations which are formed to foster, encourage, and promote progress and improvement in the science of agriculture and in the raising and breeding of animals, and by nonprofit summer theater organizations if such organizations are exempt from federal tax pursuant to the provisions of the Internal Revenue Code and all admission charges and entry fees to the Missouri state fair or any fair conducted by a county agricultural and mechanical society organized and operated pursuant to sections 262.290 to 262.530, RSMo;

     (22) All sales made to any private not for profit elementary or secondary school, all sales of feed additives, medications or vaccines administered to livestock or poultry in the production of food or fiber, all sales of pesticides used in the production of crops, livestock or poultry for food or fiber, all sales of bedding used in the production of livestock or poultry for food or fiber, all sales of propane or natural gas, electricity or diesel fuel used exclusively for drying agricultural crops, and all sales of farm machinery, other than airplanes, motor vehicles and trailers. As used in this subdivision, the term "feed additives" means tangible personal property which, when mixed with feed for livestock or poultry, is to be used in the feeding of livestock or poultry. As used in this subdivision, the term "farm machinery" means new or used farm tractors and such other new or used farm machinery and equipment and repair or replacement parts thereon and one-half of each purchaser's purchase of diesel fuel therefor which is:

     (a) Used exclusively for agricultural purposes;

     (b) Used on land owned or leased for the purpose of producing farm products; and

     (c) Used directly in producing farm products to be sold ultimately in processed form or otherwise at retail or in producing farm products to be fed to livestock or poultry to be sold ultimately in processed form at retail;

     (23) Except as otherwise provided in section 144.032, all sales of metered water service, electricity, electrical current, natural, artificial or propane gas, wood, coal or home heating oil for domestic use and in any city not within a county, all sales of metered or unmetered water service for domestic use;

     (a) "Domestic use" means that portion of metered water service, electricity, electrical current, natural, artificial or propane gas, wood, coal or home heating oil, and in any city not within a county, metered or unmetered water service, which an individual occupant of a residential premises uses for nonbusiness, noncommercial or nonindustrial purposes. Utility service through a single or master meter for residential apartments or condominiums, including service for common areas and facilities and vacant units, shall be deemed to be for domestic use. Each seller shall establish and maintain a system whereby individual purchases are determined as exempt or nonexempt;

     (b) Regulated utility sellers shall determine whether individual purchases are exempt or nonexempt based upon the seller's utility service rate classifications as contained in tariffs on file with and approved by the Missouri public service commission. Sales and purchases made pursuant to the rate classification "residential" and sales to and purchases made by or on behalf of the occupants of residential apartments or condominiums through a single or master meter, including service for common areas and facilities and vacant units, shall be considered as sales made for domestic use and such sales shall be exempt from sales tax. Sellers shall charge sales tax upon the entire amount of purchases classified as nondomestic use. The seller's utility service rate classification and the provision of service thereunder shall be conclusive as to whether or not the utility must charge sales tax;

     (c) Each person making domestic use purchases of services or property and who uses any portion of the services or property so purchased for a nondomestic use shall, by the fifteenth day of the fourth month following the year of purchase, and without assessment, notice or demand, file a return and pay sales tax on that portion of nondomestic purchases. Each person making nondomestic purchases of services or property and who uses any portion of the services or property so purchased for domestic use, and each person making domestic purchases on behalf of occupants of residential apartments or condominiums through a single or master meter, including service for common areas and facilities and vacant units, under a nonresidential utility service rate classification may, between the first day of the first month and the fifteenth day of the fourth month following the year of purchase, apply for credit or refund to the director of revenue and the director shall give credit or make refund for taxes paid on the domestic use portion of the purchase. The person making such purchases on behalf of occupants of residential apartments or condominiums shall have standing to apply to the director of revenue for such credit or refund;

     (24) All sales of handicraft items made by the seller or the seller's spouse if the seller or the seller's spouse is at least sixty-five years of age, and if the total gross proceeds from such sales do not constitute a majority of the annual gross income of the seller;

     (25) Excise taxes, collected on sales at retail, imposed by sections 4041, 4061, 4071, 4081, 4091, 4161, 4181, 4251, 4261 and 4271 of Title 26, United States Code. The director of revenue shall promulgate rules pursuant to chapter 536, RSMo, to eliminate all state and local sales taxes on such excise taxes;

     (26) Sales of fuel consumed or used in the operation of ships, barges, or waterborne vessels which are used primarily in or for the transportation of property or cargo, or the conveyance of persons for hire, on navigable rivers bordering on or located in part in this state, if such fuel is delivered by the seller to the purchaser's barge, ship, or waterborne vessel while it is afloat upon such river;

     (27) All sales made to an interstate compact agency created pursuant to sections 70.370 to 70.440, RSMo, or sections 238.010 to 238.100, RSMo, in the exercise of the functions and activities of such agency as provided pursuant to the compact;

     (28) Computers, computer software and computer security systems purchased for use by architectural or engineering firms headquartered in this state. For the purposes of this subdivision, "headquartered in this state" means the office for the administrative management of at least four integrated facilities operated by the taxpayer is located in the state of Missouri;

     (29) All livestock sales when either the seller is engaged in the growing, producing or feeding of such livestock, or the seller is engaged in the business of buying and selling, bartering or leasing of such livestock;

     (30) All sales of barges which are to be used primarily in the transportation of property or cargo on interstate waterways."; and

     Further amend the title and enacting clause accordingly.

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

     Senator Johnson offered SA 4:

SENATE AMENDMENT NO. 4

     Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, Section 135.225, Line 1, by inserting immediately before said line the following:

     "135.100. As used in sections 135.100 to 135.150 the following terms shall mean:

     (1) "Commencement of commercial operations" shall be deemed to occur during the first taxable year for which the new business facility is first available for use by the taxpayer, or first capable of being used by the taxpayer, in the revenue producing enterprise in which the taxpayer intends to use the new business facility;

     (2) "Existing business facility", any facility in this state which was employed by the taxpayer claiming the credit in the operation of a revenue producing enterprise immediately prior to an expansion, acquisition, addition, or replacement;

     (3) "Facility", any building used as a revenue producing enterprise located within the state, 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) "New business facility", a facility which satisfies the following requirements:

     (a) Such facility is employed by the taxpayer in the operation of a revenue producing enterprise. Such facility shall not be considered a new business facility in the hands of the taxpayer if the taxpayer's only activity with respect to such facility is to lease it to another person or persons. If the taxpayer employs only a portion of such facility in the operation of a revenue producing enterprise, and leases another portion of such facility to another person or persons or does not otherwise use such other portions in the operation of a revenue producing enterprise, the portion employed by the taxpayer in the operation of a revenue producing enterprise shall be considered a new business facility, if the requirements of paragraphs (b), (c), (d) and (e) of this subdivision are satisfied;

     (b) Such facility is acquired by, or leased to, the taxpayer after December 31, 1983. A facility shall be deemed to have been acquired by, or leased to, the taxpayer after December 31, 1983, if the transfer of title to the taxpayer, the transfer of possession pursuant to a binding contract to transfer title to the taxpayer, or the commencement of the term of the lease to the taxpayer occurs after December 31, 1983, or, if the facility is constructed, erected or installed by or on behalf of the taxpayer, such construction, erection or installation is commenced after December 31, 1983;

     (c) If such facility was acquired by the taxpayer from another person or persons and such facility was employed immediately prior to the transfer of title to such facility to the taxpayer, or to the commencement of the term of the lease of such facility to the taxpayer, by any other person or persons in the operation of a revenue producing enterprise, the operation of the same or a substantially similar revenue producing enterprise is not continued by the taxpayer at such facility;

     (d) Such facility is not a replacement business facility, as defined in subdivision (10) of this section; and

     (e) The new business facility investment exceeds one hundred thousand dollars during the tax period in which the credits are claimed;

     (5) "New business facility employee", a person employed by the taxpayer in the operation of a new business facility during the taxable year for which the credit allowed by section 135.110 is claimed, except that truck drivers and rail and barge vehicle operators shall not constitute new business facility employees. A person shall be deemed to be so employed if such person performs duties in connection with the operation of the new business facility on:

     (a) A regular, full-time basis; or

     (b) A part-time basis, provided such person is customarily performing such duties an average of at least twenty hours per week; or

     (c) A seasonal basis, provided such person performs such duties for at least eighty percent of the season customary for the position in which such person is employed;

     (6) "New business facility income", the Missouri taxable income, as defined in chapter 143, RSMo, derived by the taxpayer from the operation of the new business facility. For the purpose of apportionment as prescribed in this subdivision, the term "Missouri taxable income" means, in the case of insurance companies, direct premiums as defined in chapter 148, RSMo. If a taxpayer has income derived from the operation of a new business facility as well as from other activities conducted within this state, the Missouri taxable income derived by the taxpayer from the operation of the new business facility shall be determined by multiplying the taxpayer's Missouri taxable income, computed in accordance with chapter 143, RSMo, or in the case of an insurance company, computed in accordance with chapter 148, RSMo, by a fraction, the numerator of which is the property factor, as defined in paragraph (a) of this subdivision, plus the payroll factor, as defined in paragraph (b) of this subdivision, and the denominator of which is two:

     (a) The property factor is a fraction, the numerator of which is the new business facility investment certified for the tax period, and the denominator of which is the average value of all the taxpayer's real and depreciable tangible personal property owned or rented and used in this state during the tax period. The average value of all such property shall be determined as provided in chapter 32, RSMo;

     (b) The payroll factor is a fraction, the numerator of which is the total amount paid during the tax period by the taxpayer for compensation to persons qualifying as new business facility employees, as determined by subsection 4 of section 135.110, at the new business facility, and the denominator of which is the total amount paid in this state during the tax period by the taxpayer for compensation. The compensation paid in this state shall be determined as provided in chapter 32, RSMo. For the purpose of this subdivision, "other activities conducted within this state" shall include activities previously conducted at the expanded, acquired or replaced facility at any time during the tax period immediately prior to the tax period in which commencement of commercial operations occurred;

     (7) "New business facility investment", the value of real and depreciable tangible personal property, acquired by the taxpayer as part of the new business facility, which is used by the taxpayer in the operation of the new business facility, during the taxable year for which the credit allowed by section 135.110 is claimed, except that trucks, truck-trailers, truck semitrailers, rail and barge vehicles and other rolling stock for hire, track, switches, barges, bridges, tunnels and rail yards and spurs shall not constitute new business facility investments. The total value of such property during such taxable year shall be:

     (a) Its original cost if owned by the taxpayer; or

     (b) Eight times the net annual rental rate, if leased by the taxpayer. The net annual rental rate shall be the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. The new business facility investment shall be determined by dividing by twelve the sum of the total value of such property on the last business day of each calendar month of the taxable year. If the new business facility is in operation for less than an entire taxable year, the new business facility investment shall be determined by dividing the sum of the total value of such property on the last business day of each full calendar month during the portion of such taxable year during which the new business facility was in operation by the number of full calendar months during such period;

     (8) "Office", a regional, national or international headquarters, a telemarketing operation, [a computer operation,] an insurance company, a passenger transportation ticket/reservation system or a credit card billing and processing center. For the purposes of this subdivision, "headquarters" means the administrative management of at least four integrated facilities operated by the taxpayer or related taxpayer. An office, as defined in this subdivision, when established must create and maintain positions for a minimum number of twenty-five new business facility employees as defined in subdivision (5) of this section;

     (9) "Related taxpayer" shall mean:

     (a) A corporation, partnership, trust or association controlled by the taxpayer;

     (b) An individual, corporation, partnership, trust or association in control of the taxpayer; or

     (c) A corporation, partnership, trust or association controlled by an individual, corporation, partnership, trust or association in control of the taxpayer. For the purposes of sections 135.100 to 135.150, "control of a corporation" shall mean ownership, directly or indirectly, of stock possessing at least fifty percent of the total combined voting power of all classes of stock entitled to vote; "control of a partnership or association" shall mean ownership of at least fifty percent of the capital or profits interest in such partnership or association; and "control of a trust" shall mean ownership, directly or indirectly, of at least fifty percent of the beneficial interest in the principal or income of such trust; ownership shall be determined as provided in section 318 of the U.S. Internal Revenue Code;

     (10) "Replacement business facility", a facility otherwise described in subdivision (4) of this section, hereafter referred to in this subdivision as "new facility", which replaces another facility, hereafter referred to in this subdivision as "old facility", located within the state, which the taxpayer or a related taxpayer previously operated but discontinued operating on or before the close of the first taxable year in which the credit allowed by this section is claimed. A new facility shall be deemed to replace an old facility if the following conditions are met:

     (a) The old facility was operated by the taxpayer or a related taxpayer during the taxpayer's or related taxpayer's taxable period immediately preceding the taxable year in which commencement of commercial operations occurs at the new facility; and

     (b) The old facility was employed by the taxpayer or a related taxpayer in the operation of a revenue producing enterprise and the taxpayer continues the operation of the same or substantially similar revenue producing enterprise at the new facility. Notwithstanding the preceding provisions of this subdivision, a facility shall not be considered a replacement business facility if the taxpayer's new business facility investment, as computed in subsection 5 of section 135.110, in the new facility during the tax period in which the credits allowed in sections 135.110, 135.225 and 135.235 and the exemption allowed in section 135.220 are claimed exceed one million dollars or, if less, two hundred percent of the investment in the old facility by the taxpayer or related taxpayer, and if the total number of employees at the new facility exceeds the total number of employees at the old facility by at least two except that the total number of employees at the new facility exceeds the total number of employees at the old facility by at least twenty-five if an office as defined in subdivision (8) of this section is established by a revenue producing enterprise other than a revenue producing enterprise defined in paragraphs (a) to (g) and (i) to (l) of subdivision (11) of this section;

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

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

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

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

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

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

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

     (k) Interexchange telecommunications services 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;

     (l) Recycling activities classified as SIC 5093;

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

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

     (o) Car race track activities classified as SIC 7948 provided, notwithstanding any law to the contrary, the new business facility investment as defined in subdivision (7) of this section, and as determined in subdivision (7) of this section or in subsection 5 of section 135.110, exceeds one hundred million dollars during each tax period the taxpayer claims the tax credits;

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

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

     [(p)] (r) Any combination of any of the foregoing activities;

     (12) "Same or substantially similar revenue producing enterprise", a revenue producing enterprise in which the nature of the products produced or sold, or activities conducted, are similar in character and use or are produced, sold, performed or conducted in the same or similar manner as in another revenue producing enterprise;

     (13) "SIC", the primary 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. For the purpose of this subdivision, "primary" means at least fifty percent of the activities so classified are performed at the new business facility during the taxpayer's tax period in which such tax credits are being claimed;

     (14) "Taxpayer", an individual proprietorship, corporation described in section 143.441 or 143.471, RSMo, and partnership or an insurance company subject to the tax imposed by chapter 148, RSMo, or in the case of an insurance company exempt from the thirty percent employee requirement of section 135.230, to any obligation imposed pursuant to section 375.916, RSMo.

     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) Car race track activities classified as SIC 7948 provided, notwithstanding any law to the contrary, the new business facility investment as defined in subdivision (7) of this section, and as determined in subdivision (7) of this section or in subsection 5 of section 135.110, exceeds one hundred million dollars during each tax period the taxpayer claims the tax credits;

     (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 primary 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. For the purpose of this subdivision, "primary" means at least fifty percent of the activities so classified are performed at the new business facility during the taxpayer's tax period in which such tax credits are being claimed."; and

     Further amend the title and enacting clause accordingly.

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

     Senator Johnson resumed the Chair.

     Senator Maxwell offered SA 5:

SENATE AMENDMENT NO. 5

     Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 19, Section 135.460, Line 13, of said page, by striking all of said line and inserting in lieu thereof the following: "143.471, RSMo, partnership, limited liability company described in section 347.015, RSMo, cooperative, marketing enterprise, or partnership, in computing Missouri's tax"; and further amend line 17 of said page, by inserting immediately before the period "." the following: ";

     (3) The members of the limited liability company; and

     (4) Individual members of the coop-erative or marketing enterprise".

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

     Senators Bentley and Sims offered SA 6:

SENATE AMENDMENT NO. 6

     Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 38, Section 620.1072, Line 25, by inserting immediately after the number "620.1072." the number "1."; and further amend said section, page 39, line 5, by inserting immediately after said line the following:

     "2. Diligent efforts to assure that at least thirty percent of the moneys in the fund shall be available to and reserved for, female-owned microenterprises.".

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

     Senator House offered SA 7:

SENATE AMENDMENT NO. 7

     Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 31, Section 135.516, Line 35 of said page, by inserting immediately after all of said line the following:

     "135.550. 1. As used in this section, the following terms shall mean:

     (1) "Maternity home", a residential facility located in this state established for the purpose of providing housing and assistance to pregnant women who are carrying their pregnancies to term, and which is exempt from income taxation under the United States Internal Revenue Code;

     (2) "State tax liability", in the case of a business taxpayer, any liability incurred by such 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, and in the case of an individual taxpayer, any liability incurred by such taxpayer under the provisions of chapter 143, RSMo;

     (3) "Taxpayer", 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, or an individual subject to the state income tax imposed by the provisions of chapter 143, RSMo.

     2. A taxpayer shall be allowed to claim a tax credit against the taxpayer's state tax liability, in an amount equal to fifty percent of the amount such taxpayer contributed to a maternity home.

     3. The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the taxable year that the credit is claimed, and such taxpayer shall not be allowed to claim a tax credit in excess of fifty thousand dollars per taxable year. However, any tax credit that cannot be claimed in the taxable year the contribution was made may be carried over to the next four succeeding taxable years until the full credit has been claimed.

     4. Except for any excess credit which is carried over pursuant to subsection 3 of this section, a taxpayer shall not be allowed to claim a tax credit unless the total amount of such taxpayer's contribution or contributions to a maternity home or homes in such taxpayer's taxable year is at least one hundred dollars.

     5. The director of the department of social services shall determine, at least annually, which facilities in this state may be classified as maternity homes. The director of the department of social services may require of a facility seeking to be classified as a maternity home whatever information is reasonably necessary to make such a determination. The director of the department of social services shall classify a facility as a maternity home if such facility meets the definition set forth in subsection 1 of this section.

     6. The director of the department of social services shall establish a procedure by which a taxpayer can determine if a facility has been classified as a maternity home, and by which such taxpayer can then contribute to such maternity home and claim a tax credit. The cumulative amount of tax credits which may be claimed by all the taxpayers contributing to maternity homes in any one fiscal year shall not exceed two million dollars.

     7. The director of the department of social services shall establish a procedure by which, from the beginning of the fiscal year until some point in time later in the fiscal year to be determined by the director of the department of social services, the cumulative amount of tax credits are equally apportioned among all facilities classified as maternity homes. If a maternity home fails to use all, or some percentage to be determined by the director of the department of social services, of its apportioned tax credits during this predetermined period of time, the director of the department of social services may reapportion these unused tax credits to those maternity homes that have used all, or some percentage to be determined by the director of the department of social services, of their apportioned tax credits during this predetermined period of time. The director of the department of social services may establish more than one period of time and reapportion more than once during each fiscal year. To the maximum extent possible, the director of the department of social services shall establish the procedure described in this subsection in such a manner as to ensure that taxpayers can claim all the tax credits possible up to the cumulative amount of tax credits available for the fiscal year.

     135.600. 1. As used in this section, the following terms shall mean:

     (1) "Shelter for victims of domestic violence", a facility located in this state which meets the definition of a shelter for victims of domestic violence under section 455.200, RSMo, and which meets the requirements of section 455.220, RSMo;

     (2) "State tax liability", in the case of a business taxpayer, any liability incurred by such 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, and in the case of an individual taxpayer, any liability incurred by such taxpayer under the provisions of chapter 143, RSMo;

     (3) "Taxpayer", 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, or an individual subject to the state income tax imposed by the provisions of chapter 143, RSMo.

     2. A taxpayer shall be allowed to claim a tax credit against the taxpayer's state tax liability, in an amount equal to fifty percent of the amount such taxpayer contributed to a shelter for victims of domestic violence.

     3. The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the taxable year that the credit is claimed, and such taxpayer shall not be allowed to claim a tax credit in excess of fifty thousand dollars per taxable year. However, any tax credit that cannot be claimed in the taxable year the contribution was made may be carried over to the next four succeeding taxable years until the full credit has been claimed.

     4. Except for any excess credit which is carried over pursuant to subsection 3 of this section, a taxpayer shall not be allowed to claim a tax credit unless the total amount of such taxpayer's contribution or contributions to a shelter or shelters for victims of domestic violence in such taxpayer's taxable year is at least one hundred dollars.

     5. The director of public safety shall determine, at least annually, which facilities in this state may be classified as shelters for victims of domestic violence. The director of public safety may require of a facility seeking to be classified as a shelter for victims of domestic violence whatever information is reasonably necessary to make such a determination. The director of public safety shall classify a facility as a shelter for victims of domestic violence if such facility meets the definition set forth in subsection 1 of this section.

     6. The director of public safety shall establish a procedure by which a taxpayer can determine if a facility has been classified as a shelter for victims of domestic violence, and by which such taxpayer can then contribute to such shelter for victims of domestic violence and claim a tax credit. The cumulative amount of tax credits which may be claimed by all the taxpayers contributing to shelters for victims of domestic violence in any one fiscal year shall not exceed two million dollars.

     7. The director of public safety shall establish a procedure by which, from the beginning of the fiscal year until some point in time later in the fiscal year to be determined by the director of public safety, the cumulative amount of tax credits are equally apportioned among all facilities classified as shelters for victims of domestic violence. If a shelter for victims of domestic violence fails to use all, or some percentage to be determined by the director of public safety, of its apportioned tax credits during this predetermined period of time, the director of public safety may reapportion these unused tax credits to those shelters for victims of domestic violence that have used all, or some percentage to be determined by the director of public safety, of their apportioned tax credits during this predetermined period of time. The director of public safety may establish more than one period of time and reapportion more than once during each fiscal year. To the maximum extent possible, the director of public safety shall establish the procedure described in this subsection in such a manner as to ensure that taxpayers can claim all the tax credits possible up to the cumulative amount of tax credits available for the fiscal year."; and

     Further amend said bill, Page 77, Section 18, Line 2, by inserting immediately after all of said line the following:

     "Section B. Sections 135.550 and 135.600 of this act shall become effective on January 1, 1998."; and

     Further amend the title and enacting clause accordingly.

     Senator House moved that the above amendment be adopted.

     Senator Mathewson raised the point of order that SA 7 is out of order in that it far exceeds the purpose and intent of the original legislation.

     The point of order was referred to the President Pro Tem, who took it under advisement, placing SB 165, with SCS, SS for SCS, SA 7 and the point of order (pending), on the Informal Calendar.

     Senator Quick moved that SB 303, with SA 2 (pending), be called from the Informal Calendar and again taken up for perfection, which motion prevailed.

     At the request of Senator Quick, SB 303, with SA 2 (pending), was placed on the Informal Calendar.

     President Pro Tem McKenna ruled the point of order on SA 7 to SS for SCS for SB 165, as amended, well taken.

     SS for SCS for SB 165, as amended, was again taken up.

     Senator Lybyer offered SA 8:

SENATE AMENDMENT NO. 8

     Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 33, Section 178.895, by striking all of said section and inserting in lieu thereof the following:

     "178.892. As used in sections 178.892 to 178.896, the following terms mean:

     (1) "Agreement", the agreement, between an employer and a junior college district, state technical college or four year state institution of higher education concerning a project. An agreement may be for a period not to exceed ten years when the program services associated with a project are not in excess of five hundred thousand dollars. For a project where associated program costs are greater than five hundred thousand dollars, the agreement may not exceed a period of eight years. No agreement shall be entered into between an employer and a community college district, state technical college or four year state institution of higher education which involves the training of potential employees with the purpose of replacing or supplanting employees engaged in an authorized work stoppage;

     (2) "Board of trustees", the board of trustees of a junior college district and the board of regents or curators of a state technical college or four year state institution of higher education;

     (3) "Certificate", industrial new jobs training certificates issued pursuant to section 178.895;

     (4) "Date of commencement of the project", the date of the agreement;

     (5) "Employee", the person employed in a new job;

     (6) "Employer", the person providing new jobs in conjunction with a project;

     (7) "Industry", a business located within the state of Missouri which enters into an agreement with a community college district, state technical college or four year state institution of higher education and which is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, health, or professional services. "Industry" does not include a business which closes or substantially reduces its operation in one area of the state and relocates substantially the same operation in another area of the state. This does not prohibit a business from expanding its operations in another area of the state provided that existing operations of a similar nature are not closed or substantially reduced;

     (8) "New job", a job in a new or expanding industry not including jobs of recalled workers, or replacement jobs or other jobs that formerly existed in the industry in the state;

     (9) "New jobs credit from withholding", the credit as provided in section 178.894;

     (10) "New jobs training program" or "program", the project or projects established by a community college district, state technical college or four year state institution of higher education for the creation of jobs by providing education and training of workers for new jobs for new or expanding industry in the state;

     (11) "Program costs", all necessary and incidental costs of providing program services including payment of the principal of, premium, if any, and interest on certificates, including capitalized interest, issued to finance a project, funding and maintenance of a debt service reserve fund to secure such certificates and wages, salaries and benefits of employees participating in on-the-job training;

     (12) "Program services" includes, but is not limited to, the following:

     (a) New jobs training;

     (b) Adult basic education and job-related instruction;

     (c) Vocational and skill-assessment services and testing;

     (d) Training facilities, equipment, materials, and supplies;

     (e) On-the-job training;

     (f) Administrative expenses equal to fifteen percent of the total training costs;

     (g) Subcontracted services with state institutions of higher education, private colleges or universities, or other federal, state, or local agencies;

     (h) Contracted or professional services; and

     (i) Issuance of certificates;

     (13) "Project", a training arrangement which is the subject of an agreement entered into between the community college district, a state technical college or four year state institution of higher education and an employer to provide program services;

     (14) "Total training costs", costs of training, including supplies, wages and benefits of instructors, subcontracted services, on-the-job training, training facilities, equipment, skill assessment and all program services excluding issuance of certificates.

     178.893. A community college district, state technical college or four year state institution of higher education, with the approval of the department of economic development in consultation with the office of administration, may enter into an agreement to establish a project and provide program services to an employer. As soon as possible after initial contact between a community college district, state technical college or four year state institution of higher education and a potential employer regarding the possibility of entering into an agreement, the district or college shall inform the division of job development and training of the department of economic development and the office of administration about the potential project. The division of job development and training shall evaluate the proposed project within the overall job training efforts of the state to ensure that the project will not duplicate other job training programs. The department of economic development shall have fourteen days from receipt of the application to approve or disapprove projects. If no response is received by the community college, state technical college or four year state institution of higher education within fourteen days the projects are approved. Any project that is disapproved must be in writing stating the reasons for the disapproval. If an agreement is entered into, the district and the employer shall notify the department of revenue within fifteen calendar days. An agreement may provide, but is not limited to:

     (1) Payment of program costs, including deferred costs, which may be paid from one or a combination of the following sources:

     (a) Funds appropriated by the general assembly from the Missouri junior college job training program fund and disbursed by the division of job development and training in respect of new jobs credit from withholding to be received or derived from new employment resulting from the project;

     (b) Tuition, student fees, or special charges fixed by the board of trustees to defray program costs in whole or in part;

     (c) Guarantee of payments to be received under paragraph (a) or (b) of this subdivision;

     (2) Payment of program costs shall not be deferred for a period longer than ten years if program costs do not exceed five hundred thousand dollars, or eight years if program costs exceed five hundred thousand dollars from the date of commencement of the project;

     (3) Costs of on-the-job training for employees, shall include wages or salaries of participating employees. Payments for on-the-job training shall not exceed the average of fifty percent of the total percent of the total wages paid by the employer to each participant during the period of training. Payment for on-the-job training may continue for up to six months after the placement of the participant in the new job;

     (4) A provision which fixes the minimum amount of new jobs credit from withholding, or tuition and fee payments which shall be paid for program costs;

     (5) Any payment required to be made by an employer is a lien upon the employer's business property until paid and has equal precedence with ordinary taxes and shall not be divested by a judicial sale. Property subject to the lien may be sold for sums due and delinquent at a tax sale, with the same forfeitures, penalties, and consequences as for the nonpayment of ordinary taxes. The purchasers at tax sale obtain the property subject to the remaining payments.

     178.894. If an agreement provides that all or part of program costs are to be met by receipt of new jobs credit from withholding, such new jobs credit from withholding shall be determined and paid as follows:

     (1) New jobs credit from withholding shall be based upon the wages paid to the employees in the new jobs;

     (2) A portion of the total payments made by the employer pursuant to section 143.221, RSMo, shall be designated as the new jobs credit from withholding. Such portion shall be an amount equal to two and one-half percent of the gross wages paid by the employer for each of the first one hundred jobs included in the project and one and one-half percent of the gross wages paid by the employer for each of the remaining jobs included in the project. If business or employment conditions cause the amount of the new jobs credit from withholding to be less than the amount projected in the agreement for any time period, then other withholding tax paid by the employer pursuant to section 143.221, RSMo, shall be credited to the Missouri junior college job training fund by the amount of such difference. The employer shall remit the amount of the new jobs credit to the department of revenue in the manner prescribed in section 178.896. When all program costs, including the principal of, premium, if any, and interest on the certificates have been paid, the employer credits shall cease;

     (3) The community college district, the state technical college or four year state institution of higher education participating in a project shall establish a special fund for and in the name of the project. All funds appropriated by the general assembly from the Missouri community college job training program fund and disbursed by the division of job development and training for the project and other amounts received by the district or college in respect of the project and required by the agreement to be used to pay program costs for the project shall be deposited in the special fund. Amounts held in the special fund may be used and disbursed by the district or college only to pay program costs for the project. The special fund may be divided into such accounts and subaccounts as shall be provided in the agreement, and amounts held therein may be invested in investments which are legal for the investment of the district's other funds;

     (4) Any disbursement in respect of a project received from the division of job development and training under the provisions of sections 178.892 to 178.896 and the special fund into which it is paid may be irrevocably pledged by a junior college district, state technical college or four year state institution of higher education for the payment of the principal of, premium, if any, and interest on the certificate issued by a junior college district, state technical college or four year state institution of higher education to finance or refinance, in whole or in part, the project;

     (5) The employer shall certify to the department of revenue that the credit from withholding is in accordance with an agreement and shall provide other information the department may require;

     (6) An employee participating in a project will receive full credit for the amount designated as a new jobs credit from withholding and withheld as provided in section 143.221, RSMo;

     (7) If an agreement provides that all or part of program costs are to be met by receipt of new jobs credit from withholding, the provisions of this subsection shall also apply to any successor to the original employer until such time as the principal and interest on the certificates have been paid.

     178.895. 1. To provide funds for the present payment of the costs of new jobs training programs, a community college district, state technical college or four year state institution of higher education may borrow money and issue and sell certificates payable from a sufficient portion of the future receipts of payments authorized by the agreement including disbursements from the Missouri community college job training program to the special fund established by the district, college or university for each project. The total amount of outstanding certificates sold by all junior college districts, state technical college or four year state institution of higher education shall not exceed twenty million dollars, unless an increased amount is authorized in writing by a majority of members of the Missouri job training joint legislative oversight committee. The certificates shall be marketed through financial institutions authorized to do business in Missouri. The receipts shall be pledged to the payment of principal of and interest on the certificates. Certificates may be sold at public sale or at private sale at par, premium, or discount of not less than ninety-five percent of the par value thereof, at the discretion of the board of trustees, and may bear interest at such rate or rates as the board of trustees shall determine, notwithstanding the provisions of section 108.170, RSMo, to the contrary. However, chapter 176, RSMo, does not apply to the issuance of these certificates. Certificates may be issued with respect to a single project or multiple projects and may contain terms or conditions as the board of trustees may provide by resolution authorizing the issuance of the certificates.

     2. Certificates issued to refund other certificates may be sold at public sale or at private sale as provided in this section with the proceeds from the sale to be used for the payment of the certificates being refunded. The refunding certificates may be exchanged in payment and discharge of the certificates being refunded, in installments at different times or an entire issue or series at one time. Refunding certificates may be sold or exchanged at any time on, before, or after the maturity of the outstanding certificates to be refunded. They may be issued for the purpose of refunding a like, greater, or lesser principal amount of certificates and may bear a higher, lower, or equivalent rate of interest than the certificates being renewed or refunded.

     3. Before certificates are issued, the board of trustees shall publish once a notice of its intention to issue the certificates, stating the amount, the purpose, and the project or projects for which the certificates are to be issued. A person may, within fifteen days after the publication of the notice, by action in the circuit court of a county in the district, appeal the decision of the board of trustees to issue the certificates. The action of the board of trustees in determining to issue the certificates is final and conclusive unless the circuit court finds that the board of trustees has exceeded its legal authority. An action shall not be brought which questions the legality of the certificates, the power of the board of trustees to issue the certificates, the effectiveness of any proceedings relating to the authorization of the project, or the authorization and issuance of the certificates from and after fifteen days from the publication of the notice of intention to issue.

     4. The board of trustees shall determine if revenues provided in the agreement are sufficient to secure the faithful performance of obligations in the agreement.

     5. Certificates issued under this section shall not be deemed to be an indebtedness of the state [or], the community college district, state technical college or four year state institution of higher education or of any other political subdivision of the state and the principal and interest on such certificates shall be payable only from the sources provided in subdivision (1) of section 178.893 which are pledged in the agreement.

     6. The department of economic development shall coordinate the new jobs training program, and may promulgate rules that districts, state technical college or four year state institution of higher education will use in developing projects with new and expanding industrial new jobs training proposals which shall include rules providing for the coordination of such proposals with the service delivery areas established in the state to administer federal funds pursuant to the federal Job Training Partnership Act. No rule or portion of a rule promulgated under the authority of sections 178.892 to 178.896 shall become effective unless it has been promulgated pursuant to the provisions of section 536.024, RSMo.

     7. [No] A community college district [may] state technical college or four year state institution of higher education shall not sell certificates as described in this section after July 1, [1998] 2008.

     178.896. 1. There is hereby established within the state treasury a special fund, to be known as the "Missouri Community College Job Training Program Fund", to be administered by the division of job development and training. The department of revenue shall credit to the community college job training program fund, as received, all new jobs credit from withholding remitted by employers pursuant to section 178.894. The fund shall also consist of any gifts, contributions, grants or bequests received from federal, private or other sources. The general assembly, however, shall not provide for any transfer of general revenue funds into the community college job training program fund. Moneys in the Missouri community college job training program fund shall be disbursed to the division of job development and training pursuant to regular appropriations by the general assembly. The division shall disburse such appropriated funds in a timely manner into the special funds established by community college districts, state technical college or four year state institution of higher education for projects, which funds shall be used to pay program costs, including the principal of, premium, if any, and interest on certificates issued by the district to finance or refinance, in whole or in part, a project. Such disbursements by the division of job development and training shall be made to the special fund for each project in the same proportion as the new jobs credit from withholding remitted by the employer participating in such project bears to the total new jobs credit from withholding remitted by all employers participating in projects during the period for which the disbursement is made. Moneys for new jobs training programs established under the provisions of sections 178.892 to 178.896 shall be obtained from appropriations made by the general assembly from the Missouri community college job training program fund. All moneys remaining in the Missouri community college job training program fund at the end of any fiscal year shall not lapse to the general revenue fund, as provided in section 33.080, RSMo, but shall remain in the Missouri community college job training program fund.

     2. The department of revenue shall develop such forms as are necessary to demonstrate accurately each employer's new jobs credit from withholding paid into the Missouri community college job training program fund. The new jobs credit from withholding shall be accounted as separate from the normal withholding tax paid to the department of revenue by the employer. Reimbursements made by all employers to the Missouri community college job training program fund shall be no less than all allocations made by the division of job development and training to all community college districts for all projects. The employer shall remit the amount of the new job credit to the department of revenue in the same manner as provided in sections 143.191 to 143.265, RSMo.

     3. Sections 178.892 to 178.896 shall expire July 1, 2008."; and

     Further amend the title and enacting clause accordingly.

     Senator Lybyer moved that the above amendment be adopted.

     At the request of Senator Mathewson, SB 165, with SCS, SS for SCS and SA 8 (pending), was placed on the Informal Calendar.

     Senator Quick moved that SB 303, with SA 2 (pending), be called from the Informal Calendar and again taken up for perfection, which motion prevailed.

     SA 2 was again taken up.

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

     On motion of Senator Quick, SB 303, as amended, was declared perfected and ordered printed.

REFERRALS

     President Pro Tem McKenna referred SB 212, with SCA 1, to the Committee on State Budget Control.

HOUSE BILLS ON SECOND READING

     The following Bill was read the 2nd time and referred to the Committee indicated:

     HB 211--Agriculture, Conservation, Parks and Tourism.

REPORTS OF STANDING COMMITTEES

     Senator Quick, Chairman of the Committee on Rules, Joint Rules and Resolutions, submitted the following reports:

     Mr. President: Your Committee on Rules, Joint Rules and Resolutions, to which were referred SS for SB 367; SB 334; and SCS for SB 265, begs leave to report that it has examined the same and finds that the bills have been truly perfected and that the printed copies furnished the Senators are correct.

REFERRALS

     President Pro Tem McKenna referred SS for SB 367 and SB 334, to the Committee on State Budget Control.

RESOLUTIONS

     Senator Howard offered Senate Resolution No. 393, regarding Houston Johnson, Arbyrd, which was adopted.

     Senator Maxwell offered Senate Resolution No. 394, regarding the Seventy-fifth Anniversary of the Kiwanis Club of Mexico, which was adopted.

INTRODUCTIONS OF GUESTS

     Senator Caskey introduced to the Senate, Thelma Wheatley, Butler; Mary Limpus, Amsterdam; and Bev Mueller and Judy Ball, Adrian.

     Senator Mueller introduced to the Senate, Geraldine Ayers, Anette Smith, Sue Bowles and Shirley Horlacher, St. Louis.

     Senator Banks introduced to the Senate, Lois R. Newell, Mary Jordan, Anna Black, Rose Goodbrum, Georgia Allen, Juanita West, Berta Kinney, Earlene Falker and Martha Bush, St. Louis.

     Senator Yeckel introduced to the Senate, Sally Dehner and Eunagene Pohlig, St. Louis.

     Senator Rohrbach introduced to the Senate, David Gullic, Jefferson City.

     Senator Staples introduced to the Senate, Jeanette Bragg, Koshkonong.

     On behalf of Senator Ehlmann and himself, Senator House introduced to the Senate, former State Representative George Dames, O'Fallon.

     Senator Wiggins introduced to the Senate, Michelle Anderson, Elizabeth Hornbeck and William Fambrough, III, Kansas City.

     Senator Westfall introduced to the Senate, eighth grade students from Fair Play.

     Senator Westfall introduced to the Senate, Darrell Decker, Jim Payne and Mary Malter, Greene County.

     Senator Yeckel introduced to the Senate, Elizabeth Stuckmeyer, John Groerich and students from Green Park Lutheran School, St. Louis.

     Senator Yeckel introduced to the Senate, Lauren Anderson, Christen Lauer and students from Green Park Lutheran School, St. Louis.

     Senator Bentley introduced to the Senate, Bob Bach, Michael Stevens and Jim Morgan, Springfield.

     Senator Singleton introduced to the Senate, Peggy Lentz and John Good, Joplin.

     On motion of Senator Quick, the Senate adjourned under the Rules.