Journal of the Senate

FIRST REGULAR SESSION


SEVENTIETH DAY--WEDNESDAY, MAY 14, 1997


     The Senate met pursuant to adjournment.

     President Pro Tem McKenna in the Chair.

     The Chaplain offered the following prayer:

     Heavenly Father, we are thankful that You made all of us different, for the privilege of making our own decisions and pursuing our own dreams. With all of our differences, we pray that You will bring us together to protect the rights of everyone to be different. 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
ClayCurlsDePascoEhlmann
FlotronGoodeGravesHouse
HowardJacobJohnsonKenney
KinderKlarichLybyerMathewson
MaxwellMcKennaMuellerQuick
RohrbachRussellSchneiderScott
SimsSingletonStaplesWestfall
WigginsYeckel--34
Absent with leave--Senators--None
The Lieutenant Governor was present.

RESOLUTIONS

     Senator Graves offered Senate Resolution No. 842, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Leon Hart, Maryville, which was adopted.

     Senator Graves offered Senate Resolution No. 843, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Gerald Luke, Conception Junction, which was adopted.

     Senator Graves offered Senate Resolution No. 844, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Donald Swizter, Brookfield, which was adopted.

     Senator Graves offered Senate Resolution No. 845, regarding Doris Jean Campbell, Stewartsville, which was adopted.

     Senator Graves offered Senate Resolution No. 846, regarding Jennifer Mezger, Bridgeway, which was adopted.

     Senator Graves offered Senate Resolution No. 847, regarding Christopher Cody Rowlett, Maitland, which was adopted.

     Senator Graves offered Senate Resolution No. 848, regarding Shanna Marshall, which was adopted.

     Senator Graves offered Senate Resolution No. 849, regarding the Sixtieth Wedding Anniversary of Mr. and Mrs. Forest Alldredge, Stanberry, which was adopted.

     Senator Graves offered Senate Resolution No. 850, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Russell Gillip, King City, which was adopted.

     Senator Graves offered Senate Resolution No. 851, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Eldon Davis, Mound City, which was adopted.

     Senator Graves offered Senate Resolution No. 852, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Fred Nail, Martinsville, which was adopted.

     Senator Graves offered Senate Resolution No. 853, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Max Littrell, Chillicothe, which was adopted.

     Senator Graves offered Senate Resolution No. 854, regarding Dr. Dean L. Hubbard, which was adopted.

     Senator Graves offered Senate Resolution No. 855, regarding the Forty-fifth Wedding Anniversary of Mr. and Mrs. Patrick Hanley Wilson, Green City, which was adopted.

     Senator Staples offered Senate Resolution No. 856, regarding the Ark-Mo I-30 Corridor Coalition, which was adopted.

CONFERENCE COMMITTEE APPOINTMENTS

     President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on HS for HCS for HB 472, with SA 1: Senators Scott, Mathewson, Clay, Klarich and Flotron.

     President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on SS for SCS for HB 207, as amended: Senators Staples, Lybyer, McKenna, Westfall and Flotron.

     Senator Wiggins assumed the Chair.

HOUSE BILLS ON THIRD READING

     Senator Lybyer moved that HB 487 be called from the Consent Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     Senator Lybyer moved that HB 487 be read the 3rd time and finally passed.

     Senator Ehlmann offered a substitute motion that HB 487 be returned to committee for the purpose of adding amendments.

     At the request of Senator Ehlmann, the substitute motion was withdrawn.

     At the request of Senator Lybyer, the motion for 3rd reading and final passage was withdrawn, placing the bill back on the Consent Calendar.

     HCS for HB 288, with SCAs 1, 2, 3 and 4, entitled:

     An Act to repeal sections 640.102, 640.115, 640.120, 640.125, 640.130, 644.101, 644.116 and 644.122, RSMo 1994, and section 640.100, RSMo Supp. 1996, relating to public drinking water, and to enact in lieu thereof twelve new sections relating to the same subject, with penalty provisions.

     Was taken up by Senator Goode.

     SCA 1 was taken up.

     Senator Goode moved that the above amendment be adopted.

     Senator Flotron offered SA 1 to SCA 1, which was read:

SENATE AMENDMENT NO. 1 TO

SENATE COMMITTEE AMENDMENT NO. 1

     Amend Senate Committee Amendment No. 1 to House Committee Substitute for House Bill No. 288, Page 1, Section 640.100, Line 9, by adding after the "." the following: "Any such state certification shall satisfy any need for local certification.".

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

     SCA 1, as amended, was taken up.

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

     SCA 2 was taken up.

     Senator Goode moved that the above amendment be adopted.

     Senator Ehlmann offered SSA 1 for SCA 2:

SENATE SUBSTITUTE AMENDMENT NO. 1 FOR SENATE COMMITTEE AMENDMENT NO. 2

     Amend House Committee Substitute for House Bill No. 288, Page 10, Section 640.137, Line 17, by inserting immediately after all of said line the following:

     "644.037. Where applicable, under section 404 of the federal Clean Water Act and where the U.S. Army Corps of Engineers has determined that a nationwide permit may be utilized, the department shall certify without conditions said nationwide permit as it applies to impacts on wetlands in this state."; and

     Further amend the title and enacting clause accordingly.

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

     Senator Staples assumed the Chair.

     Senator Johnson announced that photographers from the Associated Press had been given permission to take pictures in the Senate Chamber today.

     SCA 3 was taken up.

     Senator Goode moved that the above amendment be adopted.

     Senator Maxwell offered SSA 1 for SCA 3:

SENATE SUBSTITUTE AMENDMENT NO. 1

FOR SENATE COMMITTEE AMENDMENT NO. 3

     Amend House Committee Substitute for House Bill No. 288, Page 4, Section 640.107, Lines 1 to 3, by striking all of said lines and inserting in lieu thereof the following:

     "640.107. 1. There is hereby established, as a subfund of the water and wastewater fund established in section 644.122, RSMo, the "Drinking Water Revolving Fund", which shall be maintained and accounted for separately, and which shall consist of moneys from all lawful public and private sources including legislative appropriations, federal capitalization grants, interest on investments and principal and interest payments with respect to loans made from the drinking water revolving fund. Money in the drinking water revolving fund may be used only for purposes as are authorized in the Federal Safe Drinking Water Act, as amended from time to time.

     2. The commission shall, consistent with the requirements of the federal Safe Drinking Water Act for the drinking water revolving fund to become eligible for capitalization grants from the U.S. Environmental Protection Agency, establish criteria and procedures for the selection of projects and the making of loans or the grant of loan subsidies for disadvantaged communities.

     3. After providing for review and public comment, and in accordance with the requirements for such plans set forth in the federal Safe Drinking Water Act, the commission shall annually prepare an intended use plan for the funds available in the drinking water revolving fund.

     4. Consistent with the requirements of the federal Safe Drinking Water Act, and only to the extent funds are able to be obligated for eligible projects of public water systems, in developing its annual intended use plan, the commission shall make available no less than thirty-five percent, but may make available greater than thirty-five percent, of the moneys credited to the drinking water revolving fund solely for project loans and loan subsidies for projects of systems serving fewer than ten thousand people in accordance with the following:

     Systems Serving          Percentage

     0 - 3300 people          20%

     3301 - 9,999 people     15%

provided that, in any fiscal year, loan subsidies may not exceed the maximum percentage as specified in the federal Safe Drinking Water Act. In any fiscal year in which there are insufficient applicants and projects in the population categories listed above to allocate the percentages of funds specified pursuant to this subsection, any balance of funds otherwise reserved for systems serving fewer than ten thousand people shall be available for obligation to eligible projects from any eligible applicant. Such uncommitted balances shall be redistributed in accordance with the intended use plan.".

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

     SCA 4 was taken up.

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

     Senator Goode offered SA 1, which was read:

SENATE AMENDMENT NO. 1

     Amend House Committee Substitute for House Bill No. 288, Page 4, Section 640.102, Line 19, by striking the word "piped".

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

     Senator Caskey offered SA 2:

SENATE AMENDMENT NO. 2

     Amend House Committee Substitute for House Bill No. 288, Page 11, Section 644.122, Line 38, by inserting after all of said line the following:

     "Section 1. Beginning January 1, 1997, notwithstanding any other provision of law to the contrary, a privately owned water company serving customers in a city with a population of at least fifteen thousand but not more than seventeen thousand inhabitants where such city is located in a county of the fourth classification shall not increase the rates charged to customers in such city or in any other political subdivision in which the water company serves customers for the purpose of acquisition, design, improvement, construction or operation of a facility if such facility does not benefit the customers in such city or political subdivision. Notwithstanding the provisions of this section, if a governing body of a city or political subdivision not benefiting from such acquisition, design, improvement, construction or operation approves a rate increase for such purpose, the rates charged in such city or political subdivision may be increased only for the customers residing in such city or political subdivision. The provisions of this section shall not apply to construction projects commenced before January 1, 1997."; and

     Further amend the title and enacting clause accordingly.

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

     Senator McKenna offered SA 3:

SENATE AMENDMENT NO. 3

     Amend House Committee Substitute for House Bill No. 288, Page 11, Section 644.122, Line 38, by inserting immediately after all of said line the following:

     "Section 1. Any rule or portion of a rule promulgated pursuant to this act shall become effective only as provided pursuant to chapter 536, RSMo, including, but not limited to, section 536.028, RSMo, if applicable, after the effective date of this act. All rulemaking authority delegated prior to the effective date of this act is of no force and effect and repealed. The provisions of this section and section 536.028, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to section 536.028, RSMo, if applicable, to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void."; and

     Further amend said bill, page 11, section 644.122, line 38, by inserting immediately after all of said line the following:

     "Section 2. 1. In any action challenging any rule promulgated pursuant to the provisions of this act, the agency as defined in section 536.010, RSMo, promulgating such rule shall be required to prove by a preponderance of the evidence that the rule or threatened application of the rule is valid, is authorized by law, is not in conflict with any law and is not arbitrary and capricious.

     2. The court shall award reasonable fees and expenses as defined in section 536.085, RSMo, to any party who prevails in such action.

     3. All rules promulgated pursuant to the provisions of this section shall expire on August twenty-eighth of the year after the year in which the rule became effective unless the general assembly extends by statute the rule or set of rules beyond that date to a date specified by the general assembly.

     4. Any rulemaking authority granted pursuant to the provisions of this act is subject to any rulemaking authority contained in chapter 536, RSMo, including any subsequent amendments to chapter 536, RSMo.

     5. The provisions of this section shall terminate if legislation amending the provisions of section 536.024, RSMo, has been signed into law prior to the effective date of this act."; and

     Further amend the title and enacting clause accordingly.

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

     Senator McKenna offered SA 4:

SENATE AMENDMENT NO. 4

     Amend House Committee Substitute for House Bill No. 288, Page 1, In the Title, Line 4, by deleting the word "twelve" and inserting in lieu thereof the word "thirteen"; and

     Further amend said bill, Page 1, Section A, Line 2, by deleting the word "twelve" and inserting in lieu thereof the word "thirteen"; and

     Further amend said bill, Page 1, Section A, Line 4, by inserting after the number "640.137," the number "644.042,"; and

     Further amend said bill, Page 10, Section 640.137, Line 17, by inserting after all of said line the following:

     "644.042. 1. The clean water commission of the state of Missouri, created in section 644.021, may adopt by rule a rebuttable presumption that any stream segment located within one mile upstream of a stream segment that has been determined by the commission to be a losing stream, as defined by the commission by rule, is also a losing stream until determined otherwise by the commission based upon the evidence.

     2. Except for the presumption authorized by subsection 1 of this section, the commission shall not adopt any presumption that any other stream segments are losing streams, and shall make any such determinations based on data applicable to such stream segments.".

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

     Senator Childers offered SA 5:

SENATE AMENDMENT NO. 5

     Amend House Committee Substitute for House Bill No. 288, Page 6, Section 640.120, Line 19, by inserting the following:

"Any person subject to section 256.468 who is registered as a professional geologist in another state and has practiced no less than five years in the state of Missouri other requirements notwithstanding may be certified as a registered geologist in the state of Missouri subject to approval of the board of geologist registration.".

     Senator Childers moved that the above amendment be adopted.

     Senator Goode offered SA 1 to SA 5, which was read:

SENATE AMENDMENT NO. 1 TO

SENATE AMENDMENT NO. 5

     Amend Senate Amendment No. 5 to House Committee Substitute for House Bill No. 288, Page 1, Section 640.120, Line 4, by inserting after the word "state" the following: "whose requirements are substantially the same as those of this state".

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

     Senator Childers moved that SA 5, as amended, be adopted, which motion prevailed.

     Senator Ehlmann offered SA 6:

SENATE AMENDMENT NO. 6

     Amend House Committee Substitute for House Bill No. 288, Page 10, Section 640.137, Line 17, by inserting after all of said line the following:

     "644.018. In any contested case involving surface water in any flood prone area, if any defendant has obtained a permit from a political subdivision which has enacted orders or ordinances as required by the Federal Emergency Management Agency as a prerequisite to participation in the National Flood Insurance Program, and which political subdivision has jurisdiction over the area in dispute, then the proper permitting of said project shall be conclusive proof that the project is a reasonable use and meets any reasonable use test imposed by law or by a court."; and

     Further amend the title and enacting clause accordingly.

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

     Senator Rohrbach offered SA 7:

SENATE AMENDMENT NO. 7

     Amend House Committee Substitute for House Bill No. 288, Page 10, Section 640.137, Line 17, by inserting immediately after all of said line the following:

     "644.036. 1. No standard, rule or regulation or any amendment or repeal thereof shall be adopted except after a public hearing to be held after thirty days' prior notice by advertisement of the date, time and place of the hearing and opportunity given to the public to be heard. Notice of the hearings and copies of the proposed standard, rule or regulation or any amendment or repeal thereof shall also be given by regular mail, at least thirty days prior to the scheduled date of the hearing, to any person who has registered with the executive secretary for the purpose of receiving notice of such public hearings in accordance with the procedures prescribed by the commission at least forty-five days prior to the scheduled date of the hearing. However, this provision shall not preclude necessary changes during this thirty-day period.

     2. At the hearing, opportunity to be heard by the commission with respect to the subject thereof shall be afforded any interested person upon written request to the commission, addressed to the executive secretary, not later than seven days prior to the hearing, and may be afforded to other persons if convenient. In addition, any interested persons, whether or not heard, may submit, within seven days subsequent to the hearings, a written statement of their views. The commission may solicit the views, in writing, of persons who may be affected by, or interested in, proposed rules and regulations, or standards. Any person heard or represented at the hearing or making written request for notice shall be given written notice of the action of the commission with respect to the subject thereof.

     3. Any standard, rule or regulation or amendment or repeal thereof shall not be deemed adopted or in force and effect until it has been approved in writing by at least four members of the commission. A standard, rule or regulation or an amendment or repeal thereof shall not become effective until a certified copy thereof has been filed with the secretary of state as provided in chapter 536, RSMo.

     4. Unless prohibited by any federal water pollution control act, any standard, rule or regulation or any amendment or repeal thereof which is adopted by the commission may differ in its terms and provisions as between particular types and conditions of water quality standards or of water contaminants, as between particular classes of water contaminant sources, and as between particular waters of the state.

     5. Except as otherwise provided pursuant to subsection 6 of this section, all rules promulgated by the Missouri clean water commission shall be no stricter than those required pursuant to federal law.

     6. The commission may adopt federal rules by reference following the procedures and requirements of section 644.036, RSMo. Where federal rules are adopted by reference, failure to include certain rules shall not, in itself, mean that those rules are not applicable in this state and shall not be interpreted to mean that the state intends to be more restrictive than federal requirements. In cases where there are no federal standards or guidelines for such regulation, where no other provision of law exists, or where such federal laws, standards, or guidelines are not sufficient to protect public health, welfare, or the environment, the commission may regulate such activities based upon substantial evidence on the record after public hearing and finding by the commission that the subject of such regulation constitutes a significant adverse impact to public health, welfare, or the environment. The commission shall establish procedures for the exercise of its authority under this section for determining whether a significant adverse impact to pubic health, welfare, or the environment exists through formal rulemaking. Such criteria and rulemaking shall be based upon reasonably available scientific data and shall, at a minimum, include consideration of health, welfare, economics, pollution prevention and the effectiveness and cost of available control methods."; and

     Further amend the title and enacting clause accordingly.

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

     President Pro Tem McKenna resumed the Chair.

     Senator Singleton offered SA 8:

SENATE AMENDMENT NO. 8

     Amend House Committee Substitute for House Bill No. 288, Page 11, Section 644.137, Line 38, by inserting after all of said line the following:

     "Section 1. 1. There is hereby established in each public water supply district in this state a "Board of Rate, Charge and Service Complaint Review", hereafter referred to as the "board". The board shall consist of three members, which shall include the president of the board of directors of the district, the presiding commissioner of the county in which the district is located or the county which contains the largest number of inhabitants of the public water supply district as measured by the most recent decennial census if the district is located in more than one county and a public member selected as provided in subsection 2 of this section.

     2. The initial public member shall be appointed by the circuit court in which the district was established pursuant to section 247.040, RSMo, and shall serve until the immediately following first Tuesday after the first Monday in June. On the expiration of the term of the public member, a public member shall be elected to serve a term of three years, and such election shall be held as otherwise provided by law for election of members of the board of directors of a public water supply district, and such elections may be held in April pursuant to section 247.180, RSMo. The initial public member may be elected to serve as the public member, and a public member may be elected to serve any number of terms. A public member shall be a voter of the district and shall have resided in the district for one whole year immediately prior to his election. A public member shall be at least twenty-five years of age and shall not be delinquent in the payment of taxes at the time of his election. A public member shall not be a member of the board of directors of the district nor an employee of the district nor related to a member of the board of directors of the district or an employee of the district to within the first degree of consanguinity or affinity.

     3. Two members of the board shall constitute a quorum, but no finding, determination, recommendation or other action may be taken by the board except upon the affirmative vote of at least two members of the board.

     4. The board shall hear all complaints brought before it regarding services provided by the public water supply district or regarding the reasonableness of the rates or charges fixed by the district. A hearing shall be held within thirty days of receipt of a written complaint, unless the board determines, for good cause shown, that a hearing can not be held within thirty days, in which case the hearing shall be held no later than sixty days following receipt of the complaint. In determining the reasonableness of the rates or charges, the board shall strive to ensure that the district does not collect for any service or product rendered a greater or less compensation than it collects from any other person for providing a like and contemporaneous service under the same or substantially the same circumstances and conditions and the board shall strive to ensure that no rate or charge places an unreasonable burden upon a customer or class of customer of a particular product or service in relation to the rates of the district. In any hearing on a complaint, the burden shall be on the district to show, by clear and convincing evidence, that the rate or charge is reasonably necessary to promote the public interest and the purposes and policies of the district.

     5. Within thirty days following the hearing on a complaint as to the reasonableness of a rate or charge, the board shall make a determination as to whether the rate or charge is just and reasonable. Upon a determination that the charge is unreasonable, the board shall so inform the board of directors of the district along with its recommendations, if any, for a reasonable rate of charge for such product or service. The board of directors may, within a reasonable time established in its rule and regulations but no later than ninety days, revise any rate or charge determined by the board to be unreasonable to a reasonable rate and may adopt the rate recommended by the board.

     6. Within thirty days following the hearing on a complaint regarding the adequacy of any service or product provided by the district, the board shall determine if the service provided meets the requirements of applicable laws and the rules of the district and is adequate to promote the policies and purposes of the district. Upon a determination that the service is inadequate, the board shall so inform the board of directors of the district along with its recommendation for remediation, including a recommended time table for such remediation. The board of directors shall make reasonable remediation within a reasonable time of any service determined by the board to be inadequate.

     7. No penalties may be assessed nor any lien imposed on the basis of a delinquent charge pursuant to section 247.110, RSMo, if the charge is determined by the board to be unreasonable."; and

     Further amend the title and enacting clause accordingly.

     Senator Singleton moved that the above amendment be adopted.

     Senator Singleton offered SA 1 to SA 8, which was read:

SENATE AMENDMENT NO. 1 TO

SENATE AMENDMENT NO. 8

     Amend Senate Amendment No. 8 to House Committee Substitute for House Bill No. 288, Page 1, Section 1, Line 4, by adding following the word "board" the following: "if a majority of the voting members of the district approve at a regularly scheduled election date.".

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

     Senator Singleton moved that SA 8, as amended, be adopted, which motion prevailed.

     On motion of Senator Goode, HCS for HB 288, as amended, was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
CurlsDePascoEhlmannFlotron
GoodeGravesHouseJohnson
KenneyKinderKlarichLybyer
MathewsonMaxwellMcKennaQuick
RohrbachRussellSchneiderScott
SimsSingletonWestfallWiggins
Yeckel--29
Nays--Senators--Howard--1
Absent--Senators
ClayJacobMuellerStaples--4
Absent with leave--Senators--None

     The President Pro Tem declared the bill passed.

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

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

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

MESSAGES FROM THE HOUSE

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

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has adopted SCS for HCS for HB 214 and has again taken up and passed SCS for HCS for HB 214.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the Speaker has appointed the following conferees to act with a like committee from the Senate on HS for HCS for HB 472, as amended: Representatives: Luetkenhaus, May (108), Gratz, Secrest, Pryor.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the Speaker has appointed the following conferees to act with a like committee from the Senate on SCS for HCS for HB 276, as amended: Representatives: Davis (122), Skaggs, Harlan, Linton and Cooper.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to adopt SCS for HCS for HB 141 and requests the Senate to recede from its position and failing to do so, grant the House a conference thereon and the conferees be allowed to exceed the differences in Sections 407.980 and 407.985.

MISCELLANEOUS

     Senator Wiggins requested unanimous consent of the Senate to correct the committee report on HB 34, by including SCA 1, which request was granted.

SENATE COMMITTEE AMENDMENT NO. 1

     Amend House Bill No. 34, Page 1, Section 1, Line 1, by inserting immediately before 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 the title and enacting clause accordingly.

PRIVILEGED MOTIONS

     Senator Kinder moved that the Senate refuse to concur in HS for SCS for SBs 49, 213, 130, 32, 235 and 221, as amended, and request the House to recede from its position, or failing to do so, grant the Senate a conference thereon, which motion prevailed.

CONCURRENT RESOLUTIONS

     Senator Caskey offered the following concurrent resolution, which was referred to the Committee on Rules, Joint Rules and Resolutions:

SENATE CONCURRENT RESOLUTION NO. 27

     WHEREAS, Article III, section 25 of the Missouri Constitution provides that no appropriation bill shall be taken up for consideration after 6:00 p.m. on the first Friday following the first Monday in May of each year; and

     WHEREAS, the eighty-ninth General Assembly failed to Truly Agree To HB 10, the appropriation bill for the Departments of Health and Mental Health and HB 12, the appropriation bill for the General Assembly, statewide elected officials and judges, by the constitutionally established deadline, 6:00 p.m. on Friday, May 9, 1997, for approval of a state operating budget for fiscal year 1998; and

     WHEREAS, the eighty-ninth General Assembly has therefore failed to complete its most important function, the function of approval of an operating budget, during the first regular session; and

     WHEREAS, on May 12, 1997, Governor Mel Carnahan announced that he will call the General Assembly into Special Session, beginning at 6:30 p.m. on Friday, May 16, 1997; for the purpose of completing passage of a state operating budget for fiscal year 1998; and

     WHEREAS, additional state costs will be incurred in the conduct of this Special Session; and

     WHEREAS, the members of the General Assembly, who are responsible for these extra costs because of their failure to adopt an operating budget within the constitutionally allowed time, would otherwise be authorized to receive per diem reimbursement for each day of the Special Session; and

     NOW, THEREFORE, BE IT RESOLVED, by the Senate of the eighty-ninth General Assembly, First Regular Session, the House of Representatives concurring therein, that the members of the General Assembly agree not to accept per diem reimbursement for each day of a Special Session called for the purpose of completing passage of a state operating budget; and

     BE IT FURTHER RESOLVED that a properly inscribed copy of this resolution be presented to the Governor.

     President Wilson assumed the Chair.

     President Pro Tem McKenna resumed the Chair.

PRIVILEGED MOTIONS

     Senator Schneider moved that the Senate refuse to concur in HS for SS for SB 97, as amended, and request the House to recede from its position, or failing to do so, grant the Senate a conference thereon, which motion prevailed.

CONFERENCE COMMITTEE APPOINTMENTS

     President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on SS for SCS for HB 259: Senators Mathewson, Goode, Clay, Flotron and Rohrbach.

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

RECESS

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

MESSAGES FROM THE HOUSE

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

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the Speaker has appointed the following conferees to act with a like committee from the Senate on HS for HCS for SCS for SB 141, as amended: Representatives: Treadway, Stoll, Barry, Nordwald, Holand.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the Speaker has appointed the following conferees to act with a like committee from the Senate on SS for SCS for HB 259: Representatives: Liese, Bauer, VanZandt, Elliott and Donovan.

HOUSE BILLS ON THIRD READING

     HB 32, with SCS, introduced by Representative Bland, entitled:

     An Act relating to certain health care providers.

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

     SCS for HB 32, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 32

     An Act relating to certain health care providers.

     Was taken up.

     Senator Banks moved that SCS for HB 32 be adopted.

     Senator Banks offered SA 1, which was read:

SENATE AMENDMENT NO. 1

     Amend Senate Committee Substitute for House Bill No. 32, Page 3, Section 4, Line 8, by inserting after all of said line the following: "The department of health shall receive any application submitted and certify, if qualified; except that the department shall only issue the first one thousand certificates for application to health maintenance organizations.".

     Senator Banks moved that the above amendment be adopted.

     At the request of Senator Banks, SA 1 was withdrawn.

     Senator Kenney offered SA 2:

SENATE AMENDMENT NO. 2

     Amend Senate Committee Substitute for House Bill No. 32, Page 1, In the Title, Line 2, by striking all of said line and inserting in lieu thereof the following:

"To repeal section 191.227, RSMo 1994, relating to certain health care providers, and to enact in lieu thereof seven new sections relating to the same subject."; and

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

     "Section A. Section 191.227, RSMo 1994, is repealed and seven new sections enacted in lieu thereof, to be known as sections 191.227, 1, 2, 3, 4, 5 and 6, to read as follows:

     191.227. 1. All physicians, chiropractors, hospitals, dentists, and other duly licensed practitioners in this state, herein called "providers", shall, upon written request of a patient, or guardian or legally authorized representative of a patient, furnish a copy of his record of that patient's health history and treatment rendered to the person submitting a written request, except that such right shall be limited to access consistent with the patient's condition and sound therapeutic treatment as determined by the provider. [Beginning August 28, 1994,] Such record shall be furnished within a reasonable time of the receipt of the request therefor and upon payment of a handling fee of [fifteen] twenty-five dollars plus a fee of thirty-five cents per page for copies of documents made on a standard photocopy machine.

     2. Notwithstanding provisions of this section to the contrary, providers may charge for the reasonable cost of all duplications of medical record material or information which cannot routinely be copied or duplicated on a standard commercial photocopy machine.

      3. The transfer of the patient's record done in good faith shall not render the provider liable to the patient or any other person for any consequences which resulted or may result from disclosure of the patient's record as required by this section.".

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

     Senator Wiggins offered SA 3:

SENATE AMENDMENT NO. 3

     Amend Senate Committee Substitute for House Bill No. 32, Page 4, Section 6, Line 4, by inserting after all of said line the following:

     "Section 7. No physician shall perform an abortion unless the physician first obtains a medical malpractice insurance policy covering personal injury or death to the physician's abortion patients arising out of the rendering of or the failure to render health care services by the physician while performing abortions. The insurance policy shall be sufficient to satisfy a damage award of five hundred thousand dollars.".

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

     Senator Maxwell offered SA 4:

SENATE AMENDMENT NO. 4

     Amend Senate Committee Substitute for House Bill No. 32, Page 4, Section 6, Line 4, by inserting immediately after said line the following:

     "Section B. Sections 376.1399 and 536.028 from senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 335 as truly agreed to and finally passed by the first regular session of the eighty-ninth general assembly and section 14 from senate amendment no. 26 to senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 335 as truly agreed to and finally passed by the first regular session of the eighty-ninth general assembly are repealed.

     [376.1399. 1. The director may, after notice and hearing, promulgated reasonable rules to carry out the provisions of sections 376.1350 to 376.1390. The director shall have the authority to promulgate rules to accomplish the following purposes:

     (1) To regulate the internal affairs of the department of insurance;

     (2) To prescribe forms and procedures to be followed in proceedings before the department of insurance; and

     (3) To effectuate or aid in the interpretation of any law of this state pertaining to the subject matters of sections 376.1350 to 376.1390.

     2. Any rule that has the effect of creating or substantially modifying a legal right, liability, obligation or sanction shall be considered substantive. The director may only promulgate substantive rules on subject matters specifically authorized pursuant to sections 376.1350 to 376.1390 and any substantive rule or portion of a rule shall become effective only as provided pursuant to chapter 536, RSMo, including, but not limited to, section 536.028, after the effective date of this act. All such substantive rules and all substantive rulemaking authority granted pursuant to sections 376.1350 to 376.1390 shall expire on August 31, 1998. Any act by the general assembly that serves to extend or postpone the expiration of any rule or rulemaking authority shall not constitute legislative approval of the rule or authority nor be admissible in any court as evidence of legislative intent. The provisions of this section are nonseverable and if any of the powers vested with the general assembly pursuant to section 536.028 to review, to delay the effective date or to disapprove and annul a rule, or portion of a rule, are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.]

     [536.028. 1. The delegation of authority to any state agency to propose to the general assembly rules as provided under this section is contingent upon the agency complying with the provisions of this section and this delegation of legislative power to the agency to propose an order of rulemaking containing a rule or portion thereof that has the effect of substantive law, other than a rule relating to the agency's organization and internal management, is contingent and dependent upon the power of the general assembly to review such proposed order of rulemaking, to delay the effective date of such proposed order of rulemaking until the expiration of at least thirty legislative days of a regular session after such order is filed with the general assembly and the secretary of state, and to disapprove and annul any rule or portion thereof contained in such order of rulemaking.

     2. No rule or portion of a rule that has the effect of substantive law shall become effective until the order of rulemaking, in which such rule or portion thereof is contained, has been reviewed by the general assembly in accordance with the procedures provided herein and the agency's authority to propose an order of rulemaking is dependent upon the power of the general assembly to disapprove and annul any such proposed rule or portion thereof as provided herein.

     3. In order for the general assembly to have an effective opportunity to be advised of rules proposed by any state agency under the authority of this section, an agency may propose a rule by complying with the procedures provided in section 536.021, except that the notice of proposed rulemaking shall first be filed with the general assembly by providing a copy thereof to the joint committee on administrative rules which may hold hearings upon any proposed rule or portion thereof at any time. The agency shall cooperate with the joint committee on administrative rules by providing any witnesses, documents or information within the control of the agency as may be requested.

     4. In order to propose an order of rulemaking to the general assembly, the agency shall comply with the provisions of section 536.021, except that the agency may file a proposed order of rulemaking with the secretary of state only by first filing such proposed order with the general assembly by providing a copy thereof to the secretary of the senate and the clerk of the house of representatives. The president pro tem of the senate shall direct that a copy of the proposed order of rulemaking be delivered to the joint committee on administrative rules which may hold hearings thereon. The agency shall cooperate with the committee by providing any witnesses, documents or information within the control of the agency as may be requested.

     5. Such proposed order of rulemaking shall not become effective prior to the expiration of thirty legislative days of a regular session after such order is filed with the secretary of state and the general assembly.

     6. The committee may, by majority vote of its members, recommend that the general assembly disapprove and annul any rule or portion thereof contained in an order of rulemaking after hearings thereon and, upon a finding that such rule or portion thereof should be disapproved and annulled upon the following grounds:

     (1) Such rule is substantive in nature in that it creates rights or liabilities or provides for sanctions as to any person, corporation or other legal entity; and

     (2) Such rule or portion thereof is not in the public interest or is not authorized by the general assembly for one or more of the following grounds:

     (a) An absence of statutory authority for the proposed rule;

     (b) The proposed rule is in conflict with state law;

     (c) Such proposed rule is likely to substantially endanger the public health, safety or welfare;

     (d) The rule exceeds the purpose, or is more restrictive than is necessary to carry out the purpose, of the statute granting rulemaking authority;

     (e) A substantial change in circumstance has occurred since enactment of the law upon which the proposed rule is based as to result in a conflict between the purpose of the law and the proposed rule, or as to create a substantial danger to public health and welfare;

     (f) The proposed rule is so arbitrary and capricious as to create such substantial inequity as to be unreasonably burdensome on persons affected.

     7. Any recommendation or report issued by the committee pursuant to subsection 6 of this section shall be admissible as evidence in any judicial proceeding and entitled to judicial notice without further proof.

     8. The general assembly may adopt a concurrent resolution in accordance with the provisions of article IV, section 8 of the Missouri constitution to disapprove and annul any rule or portion thereof upon one or more of the grounds stated in subsection 6 of this section.

     9. Any rule or portion thereof not disapproved within thirty legislative days of a regular session pursuant to subsection 8 of this section shall be deemed approved by the general assembly and the secretary of state may publish such order of rulemaking as soon as practicable upon the expiration of thirty legislative days of a regular session after the order of rulemaking was filed with the secretary of state and the general assembly.

     10. Upon adoption of such concurrent resolution as provided in subsection 8 of this section, the secretary of state shall not publish the order of rulemaking until the expiration of time necessary for such resolution to be signed by the governor, or vetoed and subsequently acted upon by the general assembly pursuant to article III, section 32 of the Missouri Constitution. If such concurrent resolution is adopted and signed by the governor or reconsidered pursuant to article III, section 32, the secretary of state shall publish in the Missouri Register, as soon as practicable, the order of rulemaking along with notice of the proposed rules or portions thereof which are disapproved and annulled by the general assembly.

     11. Notwithstanding the provisions of section 1.140, RSMo, the provisions of this section are nonseverable and the delegation of legislative authority to an agency to propose orders of rulemaking is essentially dependent upon the powers vested with the general assembly as provided herein. If any of the powers vested with the general assembly to review, to delay the effective date or to disapprove and annul a rule or portion of a rule contained in an order of rulemaking, are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking pursuant thereto shall be invalid and void.

     12. Nothing in this section shall prevent the general assembly from adopting by bill within thirty legislative days of a regular session the rules or portions thereof, or as the same may be amended, as contained in a proposed order of rulemaking. In that event, the proposed order of rulemaking shall have been superseded and any rule proposed therein shall be void and only such rules adopted by the general assembly and submitted to the governor may become effective. Rules so adopted shall be published by the secretary of state as soon as practicable. In that event, the secretary of state shall not publish the proposed order of rulemaking and such proposed order of rulemaking shall be invalid and void.

     13. Upon adoption of any rule now in effect or hereafter promulgated, any such rule or portion thereof may be revoked by the general assembly either by bill, or by concurrent resolution pursuant to article IV, section 8 of the constitution on recommendation of the committee on administrative rules upon the grounds listed in subsection 6 of this section. The secretary of state shall publish in the Missouri Register, as soon as practicable, notice of the revocation.]

     [Section 14. 1. The director may, after notice and hearing, promulgate reasonable rules to carry out the provisions of sections 1 to 11. The director shall have the authority to promulgate rules to accomplish the following purposes:

     (1) To regulate the internal affairs of the department of insurance;

     (2) To prescribe forms and procedures to be followed in proceedings before the department of insurance; and

     (3) To effectuate or aid in the interpretation of any law of this state pertaining to the subject matters of sections 1 to 11.

     2. Any rule that has the effect of creating or substantially modifying a legal right, liability, obligation or sanction shall be considered substantive. The director may only promulgate substantive rules on subject matters specifically authorized pursuant to sections 1 to 11 and any substantive rule or portion of a rule shall become effective only as provided pursuant to chapter 536, RSMo, including, but not limited to, section 536.028, after the effective date of this act. All such substantive rules and all substantive rulemaking authority granted pursuant to sections 1 to 11 shall expire on August 31, 1998. Any act by the general assembly that serves to extend or postpone the expiration of any rule or rulemaking authority shall not constitute legislative approval of the rule or authority nor be admissible in any court as evidence of legislative intent. The provisions of this section are nonseverable and if any of the powers vested with the general assembly pursuant to section 536.028 to review, to delay the effective date or to disapprove and annul a rule, or portion of a rule, are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.]"; and

     Further amend the title and enacting clause accordingly.

     Senator Maxwell moved that the above amendment be adopted.

     At the request of Senator Banks, HB 32, with SA 4 (pending), was placed on the Informal Calendar.

     HCS for HJRs 13 and 6, with SCA 1, entitled:

     Joint Resolution submitting to the qualified voters of Missouri, an amendment repealing section 39(a) of article III of the Constitution of Missouri, relating to bingo and adopting one new section in lieu thereof relating to the same subject.

     Was taken up by Senator McKenna.

     SCA 1 was taken up.

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

     Senator McKenna moved that HCS for HJRs 13 and 6, as amended, be read the 3rd time and finally passed, which motion failed to receive a necessary majority by the following vote:
Yeas--Senators
BanksCurlsDePascoHoward
JacobJohnsonMcKennaQuick
ScottStaplesWiggins--11
Nays--Senators
BentleyCaskeyChildersEhlmann
FlotronGoodeGravesHouse
KenneyKinderKlarichLybyer
MathewsonMaxwellMuellerRohrbach
RussellSchneiderSimsSingleton
WestfallYeckel--22
Absent--Senators--Clay--1
Absent with leave--Senators--None

     HB 766 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 passed HCS for SS for SCS for SB 165, entitled:

     An Act to repeal sections 30.750, 30.753, 30.756, 30.758, 30.760, 30.765, 64.950, 70.385, 70.390, 99.805, 99.810, 99.835, 99.845, 99.865, 135.208, 143.183, 143.805, 178.896, 238.202, 238.207, 238.210, 238.212, 238.215, 238.220, 238.227, 238.230, 238.232, 238.235, 238.237, 238.240, 253.401, 290.502, 305.230, 327.031, 386.025, 393.295, 393.705, 393.710, 393.715, 393.725, 393.730, 393.760, 393.770, 620.1072 and 620.1078, RSMo 1994, and sections 67.1300, 135.100, 135.200, 135.225, 135.230, 135.247, 135.352, 135.400, 135.403, 135.405, 135.460, 135.503, 143.451, 178.895, 447.710 and 620.1039, RSMo Supp. 1996, relating to the department of economic development and economic development incentive programs, and to enact in lieu thereof one hundred seventeen new sections relating to the same subject, with an effective date and a termination date for certain sections.

     With House Amendments Nos. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, House Amendment No. 1 to House Amendment No. 23, House Amendment No. 23, as amended, House Amendment No. 24, House Amendment No. 1 to House Amendment No. 25, House Amendment No. 2 to House Amendment No. 25, House Amendment No. 25, as amended, House Amendments Nos. 26, 28, House Substitute Amendment No. 1 for House Amendment No. 30, House Amendments Nos. 31, 32 and 34.

HOUSE AMENDMENT NO. 1

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In The Title, Line 8, by inserting immediately after the figure "135.460," the figure "135.500,"; and

     Further amend said bill, Page 1, In The Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 2, Section A, Line 7, by inserting immediately after the figure "135.460," the figure "135.500,"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 2, Section A, Line 11, by inserting immediately after the figure "135.460," the figure "135.500,"; and

     Further amend said bill, Page 46, Section 135.460, Line 72, by inserting immediately after said line the following:

     "135.500. 1. Sections 135.500 to 135.529 shall be known and may be cited as the "Missouri Certified Capital Company Law".

     2. As used in sections 135.500 to 135.529, the following terms mean:

     (1) "Affiliate of a certified company":

     (a) Any person, directly or indirectly owning, controlling or holding power to vote ten percent or more of the outstanding voting securities or other ownership interests of the Missouri certified capital company;

     (b) Any person ten percent or more of whose outstanding voting securities or other ownership interest are directly or indirectly owned, controlled or held with power to vote by the Missouri certified capital company;

     (c) Any person directly or indirectly controlling, controlled by, or under common control with the Missouri certified capital company;

     (d) A partnership in which the Missouri certified capital company is a general partner;

     (e) Any person who is an officer, director or agent of the Missouri certified capital company or an immediate family member of such officer, director or agent;

     (2) "Applicable percentage", one hundred percent;

     (3) "Capital in a qualified Missouri business", any debt, equity or hybrid security, of any nature and description whatsoever, including a debt instrument or security which has the characteristics of debt but which provides for conversion into equity or equity participation instruments such as options or warrants which are acquired by a Missouri certified capital company as a result of a transfer of cash to a business. Capital in a qualified Missouri business shall not include secured debt instruments;

     (4) "Certified capital", an investment of cash by an investor in a Missouri certified capital company;

     (5) "Certified capital company", any partnership, corporation, trust or limited liability company, whether organized on a profit or not for profit basis, that is located, headquartered and registered to conduct business in Missouri that has as its primary business activity, the investment of cash in qualified Missouri businesses, and which is certified by the department as meeting the criteria of sections 135.500 to 135.529;

     (6) "Department", the Missouri department of economic development;

     (7) "Director", the director of the department of economic development or a person acting under the supervision of the director;

     (8) "Investor", any insurance company that contributes cash;

     (9) "Liquidating distribution", payments to investors or to the certified capital company from earnings;

     (10) "Person", any natural person or entity, including a corporation, general or limited partnership, trust or limited liability company;

     (11) "Qualified distribution", any distribution or payment to equity holders of a certified capital company in connection with the following:

     (a) Reasonable costs and expenses of forming, syndicating, managing and operating the certified capital company;

     (b) Management fees for managing and operating the certified capital company; and

     (c) Any increase in federal or state taxes, penalties and interest, including those related to state and federal income taxes, of equity owners of a certified capital company which related to the ownership, management or operation of a certified capital company;

     (12) "Qualified investment", the investment of cash by a Missouri certified capital company in such a manner as to acquire capital in a qualified Missouri business;

     (13) "Qualified Missouri business", an independently owned and operated business, which is headquartered and located in Missouri and which is in need of venture capital and cannot obtain conventional financing. Such business shall have no more than two hundred employees, eighty percent of which are employed in Missouri. Such business shall be involved in commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, real estate, real estate development, insurance and professional services provided by accountants, lawyers or physicians. If such business has been in existence for three years or less, its gross sales during its most recent complete fiscal years shall not have exceeded four million dollars. If such business has been in existence for longer than three years, its gross sales during its most recent complete fiscal year shall not have exceeded three million dollars. Any business which is classified as a qualified Missouri business at the time of the first investment in such business by a Missouri certified capital company shall, for a period of seven years from the date of such first investment, remain classified as a qualified Missouri business and may receive follow-on investments from any Missouri certified capital company and such follow-on investments shall be qualified investments even though such business may not meet the other qualifications of this subsection at the time of such follow-on investments;

     (14) "State premium tax liability", any liability incurred by an insurance company under the provisions of [section 148.370] section 148.320, 148.340, 148.370 or 148.376, RSMo, and any other related provisions, which may impose a tax upon the premium income of insurance companies after January 1, 1997."; and

     Further amend said bill, Page 47, Section 135.503, Line 25, by deleting the following: "for calendar year 1998, $0.00;"; and

     Further amend said bill, Page 47, Section 135.503, Line 26, by deleting the following: "[thereafter]" and inserting in lieu thereof the word "thereafter".

HOUSE AMENDMENT NO. 2

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In The Title, Line 2, by inserting immediately after the figure "30.765," the figure "64.930,"; and

     Further amend said bill, Page 1, In The Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 1, Section A, Line 1, by inserting immediately after the figure "30.765," the figure "64.930,"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 2, Section A, Line 9, by inserting immediately after the figure "30.765," the figure "64.930,"; and

     Further amend said bill, Page 11, Section 30.765, Line 13, by inserting immediately after said line the following:

     "64.930. 1. The county sports complex authority shall consist of five commissioners who shall be qualified voters of the state of Missouri, and residents of such county. The commissioners of the county commission by a majority vote thereof shall submit a panel of nine names to the governor who shall select with the advice and consent of the senate five commissioners from such panel, no more than three of which shall be of any one political party, who shall constitute the members of such authority[; provided, however, that no elective or appointed official of any political subdivision of the state of Missouri shall be a member of the county sports complex authority].

     2. The authority shall elect from its number a chairman and may appoint such officers and employees as it may require for the performance of its duties and fix and determine their qualifications, duties and compensation. No action of the authority shall be binding unless taken at a meeting at which at least three members are present and unless a majority of the members present at such meeting shall vote in favor thereof.

     3. Such sports complex commissioners shall serve in the following manner: One for two years, one for three years, one for four years, one for five years, and one for six years. Successors shall hold office for terms of five years, or for the unexpired terms of their predecessors. Each sports complex commissioner shall hold office until his successor has been appointed and qualified.

     4. In the event a vacancy exists a new panel of three names shall be submitted by majority vote of the county commission to the governor for appointment. All such vacancies shall be filled within thirty days from the date thereof.

     5. The compensation of the sports complex commissioners to be paid by the authority shall be determined by the sports complex commissioners, but in no event shall exceed the sum of three thousand dollars per annum. In addition, the sports complex commissioners shall be reimbursed by the authority for the actual and necessary expenses incurred in the performance of their duties."; and

     Further amend said bill, Page 119, Section 34, Line 4, by deleting the following: "appointed by"; and

     Further amend said bill, Page 119, Section 34, Line 7, by deleting the following: "appointed by".

HOUSE AMENDMENT NO. 3

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Section 70.508, Subsection 2, Page 15, Line 10, by deleting all of said line and inserting in lieu thereof the following:

     "revenues collected from sales tax pursuant to section 70.500, RSMo."; and

     Further amend said bill, Section 70.508, Subsection 3, Page 15, Line 15, by deleting all of said line, and inserting in lieu thereof the following:

     "from any revenues collected from sales tax pursuant to section 70.500, RSMo.".

HOUSE AMENDMENT NO. 4

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 1, In the Title, Lines 11 and 12, by deleting the words ", with an effective date and a termination date for certain sections"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 2, Section A, Line 13, by inserting immediately after the figure "253.561," the figure "253.562,"; and

     Further amend said bill, Page 76, Section 253.561, Line 12, by inserting immediately after said line the following:

     "253.562. The provisions of sections 253.550, 253.559 and 253.561 shall become effective on January 1, 1998, and shall apply to all taxable years beginning after December 31, 1997, and shall terminate on December 31, 2002."; and

     Further amend said bill, Page 124, Section B, Lines 1 through 3, by deleting all of said Section B.

HOUSE AMENDMENT NO. 5

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Section 143.451, Subsection 2, Paragraph 4, by deleting the number "135.600" found on Line 40, on Line 43, on Line 44, on Line 45, and on Line 47, and inserting in lieu thereof on each of the said lines the words "Section 23".

HOUSE AMENDMENT NO. 6

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 7, by inserting immediately after the figure "67.1300," the figure "100.840,"; and

     Further amend said bill, Page 1, In the Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 2, Section A, Line 6, by inserting immediately after the figure "67.1300," the figure "100.840,"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 2, Section A, Line 10, by inserting immediately after the figure "99.865," the figure "100.840,"; and

     Further amend said bill, Page 26, Section 99.865, Line 54, by inserting immediately after said line the following:

     "100.840. 1. To provide funds for the present payment of the costs of economic development projects, the board may borrow money and issue and sell certificates payable from a sufficient portion of the future receipts of payments authorized by the agreement. The total amount of outstanding certificates sold by the board shall not exceed [thirty-five] fifty million dollars. 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, and may bear interest at such rate or rates as the board shall determine, notwithstanding the provisions of section 108.170, RSMo, to the contrary. Certificates may be issued with respect to a single project or multiple projects and may contain terms or conditions as the board 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. The board shall determine if revenues provided in the agreement are sufficient to secure the faithful performance of obligations in the agreement.

     4. Certificates issued pursuant to this section shall not be deemed to be an indebtedness of the state or the board or of any political subdivision of the state.".

HOUSE AMENDMENT NO. 7

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 115, Section 23, Line 50, by inserting immediately after the word "return." the words "The director may deny such certification if, in the director's opinion, a certified capital investment funds service corporation has not created a sufficient number of new jobs or retained a sufficient number of existing jobs within Missouri. The director's determination of whether or not certification shall be granted may also take into consideration the salary levels of the new or existing jobs within the state.".

HOUSE AMENDMENT NO. 8

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 2, by inserting immediately after the figure "30.765," the figure "64.930,"; and

     Further amend said bill, Page 1, In the Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 1, Section A, Line 1, by inserting immediately after the figure "30.765," the figure "64.930,"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred eighteen"; and

     Further amend said bill, Page 2, Section A, Line 9, by inserting immediately after the figure "30.765," the figure "64.930,"; and

     Further amend said bill, Page 11, Section 30.765, Line 13, by inserting immediately after said line the following:

     "64.930. 1. The county sports complex authority shall consist of [five] seven commissioners who shall be qualified voters of the state of Missouri, and residents of such county. The commissioners of the county commission by a majority vote thereof shall submit a panel of nine names to the governor who shall select with the advice and consent of the senate five commissioners from such panel, no more than [three] five of which shall be of any one political party, who shall constitute the members of such authority[; provided, however, that no elective or appointed official of any political subdivision of the state of Missouri shall be a member of the county sports complex authority].

     2. The authority shall elect from its number a chairman and may appoint such officers and employees as it may require for the performance of its duties and fix and determine their qualifications, duties and compensation. No action of the authority shall be binding unless taken at a meeting at which at least [three] four members are present and unless a majority of the members present at such meeting shall vote in favor thereof.

     3. Such sports complex commissioners shall serve in the following manner: One for two years, one for three years, one for four years, one for five years, and one for six years. Successors shall hold office for terms of five years, or for the unexpired terms of their predecessors. Each sports complex commissioner shall hold office until his successor has been appointed and qualified.

     4. In the event a vacancy exists a new panel of three names shall be submitted by majority vote of the county commission to the governor for appointment. All such vacancies shall be filled within thirty days from the date thereof. As commissioners serving on the sports complex authority are replaced after August 28, 1997, by new commissioners, at least two of the five governor-appointed commissioners shall be residents of Jackson County and not residents of Kansas City.

     5. The compensation of the sports complex commissioners to be paid by the authority shall be determined by the sports complex commissioners, but in no event shall exceed the sum of three thousand dollars per annum. In addition, the sports complex commissioners shall be reimbursed by the authority for the actual and necessary expenses incurred in the performance of their duties."; and

     Further amend said bill, Page 119, Section 34, Line 4, by deleting the following: "appointed by"; and

     Further amend said bill, Page 119, Section 34, Line 7, by deleting the following: "appointed by".

HOUSE AMENDMENT NO. 9

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 2, by inserting immediately after the figure "70.390," the figure "99.340,"; and

     Further amend said bill, Page 1, In the Title, Line 3, by inserting immediately after the figure "99.810," the figures "99.820, 99.825, 99.830,"; and

     Further amend said bill, Page 1, In the Title, Line 3, by inserting immediately after the figure "99.845," the figure "99.863,"; and

     Further amend said bill, Page 1, In the Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred twenty-two"; and

     Further amend said bill, Page 1, Section A, Line 2, by inserting immediately after the figure "70.390," the figure "99.340,"; and

     Further amend said bill, Page 1, Section A, Line 2, by inserting immediately after the figure "99.810," the figures "99.820, 99.825, 99.830,"; and

     Further amend said bill, Page 1, Section A, Line 2, by inserting immediately after the figure "99.845," the figure "99.863,"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred twenty-two"; and

     Further amend said bill, Page 2, Section A, Lines 9 and 10, by deleting the figures "99.805, 99.810, 99.835, 99.845, 99.865," and inserting in lieu thereof the figures "99.340, 99.805, 99.810, 99.820, 99.825, 99.830, 99.835, 99.845, 99.863, 99.865,"; and

     Further amend said bill, Page 15, Section 70.508, Line 22, by inserting immediately after said line the following:

     "99.340. 1. When the governing body of a municipality adopts a resolution or ordinance as aforesaid, it shall promptly notify the mayor of such adoption. If the resolution or ordinance adopted is one approving the exercise of powers hereunder by a land clearance for redevelopment authority, the mayor shall appoint a board of commissioners of such authority which shall consist of five commissioners, and when the governing body of a county adopts such a resolution, said body shall appoint a board of commissioners of the authority created for such county which shall consist of five commissioners.

     2. All commissioners of an authority shall be taxpayers who have resided [in the area of operation thereof for five years prior to their appointment] for a period of five years in, in the case of a municipality, the area within the municipality; and, in the case of a county, the area within the county.

     3. Two of the commissioners who are first appointed shall be designated to serve for terms of one year from the date of their appointment and three shall be designated to serve for terms of two, three and four years respectively from the date of their appointment. Thereafter, commissioners shall be appointed as aforesaid for a term of office for four years except that all vacancies shall be filled for the unexpired term."; and

     Further amend said bill, Page 19, Section 99.810, Line 38, by inserting immediately after said line the following:

     "99.820. 1. A municipality may:

     (1) By ordinance introduced in the governing body of the municipality within fourteen to ninety days from the completion of the hearing required in section 99.825, approve redevelopment plans and redevelopment projects, and designate redevelopment project areas pursuant to the notice and hearing requirements of sections 99.800 to 99.865. No redevelopment project shall be approved unless a redevelopment plan has been approved and a redevelopment area has been designated prior to or concurrently with the approval of such redevelopment project and the area selected for the redevelopment project shall include only those parcels of real property and improvements thereon directly and substantially benefited by the proposed redevelopment project improvements;

     (2) Make and enter into all contracts necessary or incidental to the implementation and furtherance of its redevelopment plan or project;

     (3) [Within a redevelopment area,] Pursuant to a redevelopment plan, subject to any constitutional limitations, acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of, land and other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect thereto, all in the manner and at such price the municipality or the commission determines is reasonably necessary to achieve the objectives of the redevelopment plan. No conveyance, lease, mortgage, disposition of land or other property, acquired by the municipality, or agreement relating to the development of the property shall be made except upon the adoption of an ordinance by the governing body of the municipality. [Furthermore, no] Each municipality or its commission shall establish written procedures relating to bids and proposals for implementation of the redevelopment projects, including procedures for the conveyance, lease, mortgage, or other disposition of land or agreement relating to the development of property shall be made without making public disclosure of the terms of the disposition and all bids and proposals made in response to the municipality's request. [The] Such procedures for obtaining such bids and proposals shall provide reasonable opportunity for any person to submit alternative proposals or bids;

     (4) Within a redevelopment area, clear any area by demolition or removal of existing buildings and structures;

     (5) Within a redevelopment area, renovate, rehabilitate, or construct any structure or building;

     (6) Install, repair, construct, reconstruct, or relocate streets, utilities, and site improvements essential to the preparation of the redevelopment area for use in accordance with a redevelopment plan;

     (7) Within a redevelopment area, fix, charge, and collect fees, rents, and other charges for the use of any building or property owned or leased by it or any part thereof, or facility therein;

     (8) Accept grants, guarantees, and donations of property, labor, or other things of value from a public or private source for use within a redevelopment area;

     (9) Acquire and construct public facilities within a redevelopment area;

     (10) Incur redevelopment costs and issue obligations;

     (11) Make payment in lieu of taxes, or a portion thereof, to taxing districts[. If payments in lieu of taxes, or a portion thereof, are made to taxing districts, those payments];

     (12) Disburse surplus funds from the special allocation fund to taxing districts as follows:

     (a) Such surplus payments in lieu of taxes shall be [made, from the special allocation fund,] distributed to [all] taxing districts within the redevelopment area [selected for a redevelopment project] which impose ad valorem taxes on a basis [which] that is proportional to the current collections of revenue which each taxing district receives from real property in the [area selected for a redevelopment project] redevelopment area;

     (b) Surplus economic activity taxes shall be distributed to taxing districts in the redevelopment area which impose economic activity taxes, on a basis that is proportional to the amount of such economic activity taxes the taxing district would have received from the redevelopment area had tax increment financing not been adopted;

     (c) Surplus revenues, other than payments in lieu of taxes and economic activity taxes, deposited in the special allocation fund, shall be distributed on a basis that is proportional to the total receipt of such other revenues in such account in the year prior to disbursement;

     [(12)] (13) If any member of the governing body of the municipality, a member of a commission established pursuant to subsection 2 of this section, or an employee or consultant of the municipality, involved in the planning and preparation of a redevelopment plan, or redevelopment project for a redevelopment area or proposed redevelopment area, owns or controls an interest, direct or indirect, in any property included in any redevelopment area, or proposed redevelopment area, he or she shall disclose the same in writing to the clerk of the municipality, and shall also so disclose the dates, terms, and conditions of any disposition of any such interest, which disclosures shall be acknowledged by the governing body of the municipality and entered upon the minutes books of the governing body of the municipality. If an individual holds such an interest then that individual shall refrain from any further official involvement in regard to such redevelopment plan, redevelopment project or redevelopment area, from voting on any matter pertaining to such redevelopment plan, redevelopment project or redevelopment area, or communicating with other members concerning any matter pertaining to that redevelopment plan, redevelopment project or redevelopment area. Furthermore, no such member or employee shall acquire any interest, direct or indirect, in any property in a redevelopment area or proposed redevelopment area after either (a) such individual obtains knowledge of such plan or project, or (b) first public notice of such plan, project or area pursuant to section 99.830, whichever first occurs[.];

     (14) Charge as a redevelopment cost the reasonable costs incurred by its clerk or other official in administering the redevelopment project. The charge for the clerk's or other official's costs shall be determined by the municipality based on a recommendation from the commission, created pursuant to this section.

     2. Prior to adoption of an ordinance approving the designation of a redevelopment area or approving a redevelopment plan or redevelopment project, the municipality shall create a commission of nine persons if the municipality is a county or a city not within a county and eleven persons if the municipality is not a county to be appointed as follows:

     (1) In all municipalities two members shall be appointed by the school boards whose districts are included within the redevelopment plan or redevelopment area. Such members shall be appointed in any manner agreed upon by the affected districts;

     (2) In all municipalities one member shall be appointed, in any manner agreed upon by the affected districts, to represent all other districts levying ad valorem taxes within the area selected for a redevelopment project or the redevelopment area, excluding representatives of the governing body of the municipality; [and]

     (3) In all municipalities six members shall be appointed by the chief elected officer of the municipality, with the consent of the majority of the governing body of the municipality[.];

     (4) In all municipalities which are not counties, two members shall be appointed by the county of such municipality in the same manner as members are appointed in subdivision (3) of this subsection;

     (5) At the option of the members appointed by the municipality, the members who are appointed by the school boards and other taxing districts [shall] may serve on the commission for a term to coincide with the length of time a redevelopment project, redevelopment plan or designation of a redevelopment area, is considered for approval by the commission[.], or for a definite term pursuant to this subdivision. If the members representing school districts and other taxing districts are appointed for a term coinciding with the length of time a redevelopment project, plan or area is approved such term shall terminate upon final approval of the project, plan or designation of the area by the governing body of the municipality. Thereafter the commission shall consist of the six members appointed by the municipality, except that members representing school boards and other taxing districts shall be appointed as provided in this section prior to any amendments to any redevelopment plans, redevelopment projects or designation of a redevelopment area. If any school district or other taxing jurisdiction fails to appoint members of the commission within thirty days of receipt of written notice of a proposed redevelopment plan, redevelopment project or designation of a redevelopment area, the remaining members may proceed to exercise the power of the commission. Of the members first appointed by the municipality, two shall be designated to serve for terms of two years, two shall be designated to serve for a term of three years and two shall be designated to serve for a term of four years from the date of such initial appointments. Thereafter, the members appointed by the municipality shall serve for a term of four years, except that all vacancies shall be filled for unexpired terms in the same manner as were the original appointments.

     3. The commission, subject to approval of the governing body of the municipality, may exercise the powers enumerated in this act except final approval of plans, projects and designation of redevelopment areas. The commission shall hold public hearings and provide notice pursuant to sections 99.825 and 99.830. The commission shall vote on all proposed redevelopment plans, redevelopment projects and designations of redevelopment areas, and amendments thereto, within thirty days following completion of the hearing on any such plan, project or designation and shall make recommendations to the governing body within ninety days of the hearing referred to in section 99.825 concerning the adoption of, or amendment to redevelopment plans and redevelopment projects and the designation of redevelopment areas. The requirements of subsections 2 and 3 of this section shall not apply to redevelopment projects upon which the required hearings have been duly held prior to August 31, 1991.

     99.825. 1. Prior to the adoption of an ordinance proposing the designation of a redevelopment area, or approving a redevelopment plan or redevelopment project, the commission shall fix a time and place for a public hearing and notify each taxing district located wholly or partially within the boundaries of the proposed redevelopment area, plan or project. At the public hearing any interested person or affected taxing district may file with the commission written objections to, or comments on, and may be heard orally in respect to, any issues embodied in the notice. The commission shall hear and consider all protests [and], objections, comments and other evidence presented at the hearing. The hearing may be [adjourned] continued to another date without further notice other than a motion to be entered upon the minutes fixing the time and place of the subsequent hearing. Prior to the [adoption of an ordinance approving a redevelopment plan or redevelopment project, or designating a redevelopment area, but after] conclusion of the hearing, changes may be made in the redevelopment plan, redevelopment project, or redevelopment area [which changes do not alter the exterior boundaries, or do not substantially affect the general land uses established in the], provided that each affected taxing district is given written notice of such changes at least seven days prior to the conclusion of the hearing. After the public hearing but prior to the adoption of an ordinance approving a redevelopment plan or [substantially change the nature of the] redevelopment project, [without further hearing or notice; provided, that notice of such changes is given at the hearing] or designating a redevelopment area, changes may be made to the redevelopment plan, redevelopment projects or redevelopment areas without a further hearing, if such changes do not enlarge the exterior boundaries of the redevelopment area or areas, and do not substantially affect the general land uses established in the redevelopment plan or substantially change the nature of the redevelopment projects, provided that notice of such changes shall be given by mail to each affected taxing district and by publication in a newspaper of general circulation in the area of the proposed redevelopment not less than ten days prior to the adoption of the changes by ordinance. After the adoption of an ordinance approving a redevelopment plan or redevelopment project, or designating a redevelopment area, no ordinance shall be adopted altering the exterior boundaries, affecting the general land uses established pursuant to the redevelopment plan or changing the nature of the redevelopment project without complying with the procedures provided in this section pertaining to the initial approval of a redevelopment plan or redevelopment project and designation of a redevelopment area. Hearings with regard to a redevelopment project, redevelopment area, or redevelopment plan may be held simultaneously.

     2. Tax incremental financing projects within an economic development area shall apply to and fund only the following infrastructure projects: highways, roads, streets, bridges, sewers, traffic control systems and devices, water distribution and supply systems, curbing, sidewalks and any other similar public improvements, but in no case shall it include buildings.

     99.830. 1. Notice of the public hearing required by section 99.825 shall be given by publication and mailing. Notice by publication shall be given by publication at least twice, the first publication to be not more than thirty days and the second publication to be not more than ten days prior to the hearing, in a newspaper of general circulation in the area of the proposed redevelopment. Notice by mailing shall be given by depositing such notice in the United States mails by certified mail addressed to the person or persons in whose name the general taxes for the last preceding year were paid on each lot, block, tract, or parcel of land lying within the redevelopment project or redevelopment area which is to be subjected to the payment or payments in lieu of taxes and economic activity taxes pursuant to section 99.845. Such notice shall be mailed not less than ten days prior to the date set for the public hearing. In the event taxes for the last preceding year were not paid, the notice shall also be sent to the persons last listed on the tax rolls within the preceding three years as the owners of such property.

     2. The notices issued pursuant to this section shall include the following:

     (1) The time and place of the public hearing;

     (2) The general boundaries of the proposed redevelopment area or redevelopment project by street location, where possible;

     (3) A statement that all interested persons shall be given an opportunity to be heard at the public hearing;

     (4) A description of the proposed redevelopment plan or redevelopment project and a location and time where the entire plan or project proposal may be reviewed by any interested party;

     (5) Such other matters as the commission may deem appropriate.

     3. Not less than forty-five days prior to the date set for the public hearing, the commission shall give notice by mail as provided in subsection 1 of this section to all taxing districts from which taxable property is included in the redevelopment area, redevelopment project or redevelopment plan, and in addition to the other requirements [under] pursuant to subsection 2 of this section, the notice shall include an invitation to each taxing district to submit comments to the commission concerning the subject matter of the hearing prior to the date of the hearing.

     4. A copy of any and all hearing notices required by section 99.825 shall be submitted by the commission to the director of the department of economic development. Such submission of the copy of the hearing notice shall comply with the prior notice requirements pursuant to subsection 3 of this section."; and

     Further amend said bill, Page 24, Section 99.845, Line 116, by inserting immediately after said line the following:

     "99.863. Beginning in 1999, and every five years thereafter, a joint committee of the general assembly, comprised of five members appointed by the speaker of the house of representatives and five members appointed by the president pro tem of the senate, shall review section 99.800 to 99.865. A report based on such review, with any recommended legislative changes, shall be submitted to the speaker of the house of representatives and the president pro tem of the senate no later than February first following the year in which the review is conducted.".

HOUSE AMENDMENT NO. 10

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 19, Section 99.810, Line 38, by adding the following:

     "(7) Whenever a proposed redevelopment plan is within an area of special flood hazard or floodway fringe a hydrologic and hydraulic analysis shall be provided showing the impact on that area and upon residential development that is within the surrounding area up to a radius of approximately two miles from the redevelopment project. The analysis shall include a detailed description for the potential of periodic inundation which results in loss of life, property, health and safety hazards, extraordinary public expenditures for flood protection and relief, damage to air or water environmental quality, all of which adversely affect the public health, safety and general welfare.".

HOUSE AMENDMENT NO. 11

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 124, Section 49, Line 9, by adding immediately after said line, the following:

     "Section 49. 1. In any action challenging any rule promulgated pursuant to the provisions of this bill, the agency as defined in section 536.010 promulgating such rule shall be required to prove by a preponderance of the evidence that the rule or threatened application of the rule is valid, is authorized by law, is not in conflict with any law and is not arbitrary and capricious.

     2. The court shall award reasonable fees and expenses as defined in section 536.085 to any party who prevails in such action.

     3. All rules promulgated pursuant to the provisions of this section shall expire on August 28 of the year after the year in which the rule became effective unless the General Assembly extends by statute the rule or set of rules beyond that date to a date specified by the General Assembly.

     4. Any rulemaking authority granted pursuant to the provisions of this bill is subject to any rulemaking authority contained in Chapter 536 including any subsequent amendments to Chapter 536.

     5. The provisions of this section shall terminate if legislation amending the provisions of section 536.024 has been signed into law prior to the effective date of this Act.".

HOUSE AMENDMENT NO. 12

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Pages 93-113, Sections 1 through 21, by deleting all of said sections;

     Further amend said bill by amending the title and enacting clause, and renumbering the sections following section 21 accordingly.

HOUSE AMENDMENT NO. 13

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred thirty-two"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred thirty-two"; and

     Further amend said bill, Page 2, Section A, Line 12, by inserting immediately after the figure "178.896," the figures "184.800, 184.805, 184.810, 184.815, 184.820, 184.825, 184.830, 184.835, 184.840, 184.845, 184.850, 184.860, 184.865, 184.870, 184.880,"; and

     Further amend said bill, Page 57, Section 178.896, Line 33, by inserting immediately after all of said line the following:

     "184.800. Sections 184.800 to 184.880 shall be known as the "Missouri Museum District Act".

     184.805. 1. As used in sections 184.800 to 184.880, the following terms mean:

     (1) "Board", the board of directors of a district;

     (2) "District", a museum district organized pursuant to sections 184.800 to 184.880;

     (3) "Museum", a building or area used for the purpose of exhibiting and/or preserving objects or specimens of interest to the public, including but not limited to art, items of natural history, and items connected with wildlife and conservation;

     (4) "Owner of real property", the owner of the fee interest in the real property, except that when the real property is subject to a lease of ten or more years, the lessee rather than the owner of the fee interest shall be considered as the "owner of real property". An owner may be either a natural person or a juridical entity.

     2. For the purposes of sections 11(c), 16 and 22 of article X of the constitution of Missouri, section 137.073, RSMo, and as used in sections 184.800 to 184.880, the following terms shall have the meanings given:

     (1) "Approval of the required majority" or "direct voter approval", a simple majority;

     (2) "Qualified voters", the owners of real property located within the proposed district or any person residing in the district who is a legal voter within the district.

     184.810. 1. A district may be created to fund, promote, plan, design, construct, improve, maintain and operate one or more projects relating to a museum or to assist in such activity.

     2. A district is a political subdivision of the state.

     184.815. 1. Whenever the creation of a district is desired, the owners of real property who own at least two-thirds of the real property within the proposed district may file a petition requesting the creation of a district. The petition shall be filed in the circuit court of the county in which the proposed district is located. Any petition to create a museum district pursuant to the provisions of sections 184.800 to 184.880 shall be filed on or before December 31, 1998.

     2. The proposed district area shall be contiguous and may contain any portion of one or more municipalities.

     3. The petition shall set forth:

     (1) The name and address of each owner of real property located within the proposed district or who is a legal voter resident within the proposed district;

     (2) A specific description of the proposed district boundaries including a map illustrating such boundaries;

     (3) A general description of the purpose or purposes for which the district is being formed, including a description of the proposed museum or museums and a general plan for its operation; and

     (4) The name of the proposed district.

     3. In the event any owner of real property within the proposed district who is named in the petition or any legal voter resident within the district shall not join in the petition or file an entry of appearance and waiver of service of process in the case, a copy of the petition shall be served upon said owner or legal voter in the manner provided by supreme court rule for the service of petitions generally. Any objections to the petition shall be raised by answer within the time provided by supreme court rule for the filing of an answer to a petition.

     184.820. 1. Any owner of real property within the proposed district and any legal voter who is a resident within the proposed district may join in or file a petition supporting or answer opposing the creation of the district and seeking a judgment respecting these same issues.

     2. The court shall hear the case without a jury. If the court determines the petition is defective or the proposed district or its plan of operation is unconstitutional, it shall enter its judgment to that effect and shall refuse to incorporation the district as requested in the pleadings. If the court determines the petition is not legally defective and the proposed district and plan of operation are not unconstitutional, the court shall determine and declare the district organized and incorporated and shall approve the plan of operation stated in the petition.

     3. Any party having filed a petition or answer or petition may appeal the circuit court's order or judgment in the same manner as provided for other appeals. Any order either refusing to incorporate the district or incorporating the district shall be deemed a final judgment for purposes of appeal

     184.825. The costs of filing and defending the petition and all publication and incidental costs incurred in obtaining circuit court certification of the petition for voter approval shall be paid by the petitioners. If a district is organized pursuant to sections 184.800 to 184.880, the petitioners may be reimbursed for such costs out of the revenues received by the district.

     184.830. 1. Within thirty days after the order declaring the district organized has become final, the circuit clerk of the county in which the petition was filed shall, give notice by causing publication to be made once a week for two consecutive weeks in a newspaper of general circulation in the county, the last publication of which shall be at least ten days before the day of the meeting required by this section, call a meeting of the owners of real property within the district at a day and hour specified in a public place in the county in which the petition was filed for the purpose of electing a board of five directors, to be composed of owners or representatives of owners of real property in the district.

     2. The owners of real property, when assembled, shall organize by the election of a chairman and secretary of the meeting who shall conduct the election. At the election, each acre of real property within the district shall be considered as a voting interest, and each owner of real property shall have one vote in person or by proxy for every acre of real property owned within the district for each director to be elected. A director need not be a legal voter of the district.

     3. Each director shall serve for a term of three years and until his successor is duly elected and qualified. Successor director shall be elected in the same manner as the initial directors at a meeting of the owners of real property called by the board. Each successor director shall serve a three-year term. The remaining directors shall have the authority to elect an interim director to complete any unexpired term of a director caused by resignation or disqualification.

     4. Directors shall be at least twenty-one years of age.

     184.835. 1. The board shall possess and exercise all of the district's legislative and executive powers.

     2. Within thirty days after the election of the initial directors, the board shall meet. At its first meeting and after each election of new board members the board shall elect a chairman, a secretary, a treasurer and such other officers as it deems necessary from its members. A director may fill more than one office, except that a director may not fill both the office of chairman and secretary.

     3. The board may employ such employees as it deems necessary; provided, however, that the board shall not employ any employee who is related within the fourth degree by blood or marriage to a member of the board.

     4. At the first meeting, the board, by resolution, shall define the first and subsequent fiscal years of the district, and shall adopt a corporate seal.

     5. A simple majority of the board shall constitute a quorum. If a quorum exists, a majority of those voting shall have the authority to act in the name of the board, and approve any board resolution.

     6. Each director shall devote such time to the duties of the office as the faithful discharge thereof may require and may be reimbursed for his or her actual expenditures in the performance of his or her duties on behalf of the district.

     184.840. 1. A district may receive and use funds for the purposes of planning, designing, constructing, reconstructing, maintaining and operating a museum, conducting educational programs in connection therewith for any public purpose which is reasonably connected with the museum and for any other purposes authorized by sections 184.840 to 184.880. Such funds may be derived from any funding method which is authorized by sections 184.800 to 184.880 and from any other source, including but not limited to funds from federal sources, the state of Missouri or an agency thereof, a political subdivision of the state or private sources.

     2. The general assembly may annually for a period of twenty years after the effective date of this act make appropriations from general revenue to a district which is created pursuant to the provisions of sections 184.800 to 184.880. In no event shall the amount appropriated to any district exceed on an annual basis the annual state sales tax revenues generated from businesses within the district.

     184.845. 1. The board of the district may impose a museum district sales tax by resolution on all retail sales made in such museum district which are subject to taxation pursuant to the provisions of sections 144.010 to 144.525, RSMo. Such museum district sales tax may be imposed for any museum purpose designated by the board of the museum district. If the resolution is adopted the board of the district may submit the question of whether to impose a sales tax authorized by this section to either the legal voters of the district and/or to the owners of real property within the district who shall have the same voting interests as with the election of members of the board of the district.

     2. The sales tax authorized by this section shall become effective on the first day of the second calendar quarter following adoption of the tax by the qualified voters.

     3. In each museum district in which a sales tax has been imposed in the manner provided by this section, every retailer shall add the tax imposed by the museum district pursuant to this section to the retailer's sale price, and when so added such tax shall constitute a part of the price, shall be a debt of the purchaser to the retailer until paid, and shall be recoverable at law in the same manner as the purchase price.

     4. In order to permit sellers required to collect and report the sales tax authorized by this section to collect the amount required to be reported and remitted, but not to change the requirements of reporting or remitting tax or to serve as a levy of the tax, and in order to avoid fractions of pennies, the museum district may establish appropriate brackets which shall be used in district imposing a tax pursuant to this section in lieu of those brackets provided in section 144.825, RSMo.

     5. All revenue received by a museum district from the tax authorized by this section which has been designated for a certain museum purpose shall be deposited in a special trust fund and shall be used solely for such designated purpose. All funds remaining in the special trust fund shall continue to be used solely for such designated museum purpose. Any funds in such special trust fund which are not needed for current expenditures may be invested by the board of directors in accordance with applicable laws relating to the investment of other museum district funds.

     6. The sales tax may be imposed at a rate of one-half of one percent, three-fourths of one percent or one percent on the receipts from the sale at retail of all tangible personal property or taxable services at retail within the museum district adopting such tax, if such property and services are subject to taxation by the state of Missouri pursuant to the provisions of sections 144.010 to 144.525, RSMo. Any museum district sales tax imposed pursuant to this section shall be imposed at a rate that shall be uniform throughout the district.

     7. On and after the effective date of any tax imposed pursuant to this section, the museum district shall perform all functions incident to the administration, collection, enforcement, and operation of the tax. The tax imposed pursuant to this section shall be collected and reported upon such forms and under such administrative rules and regulations as may be prescribed by the museum district.

     8. All applicable provisions contained in sections 144.010 to 144.525, RSMo, governing the state sales tax, sections 32.085 and 32.087, RSMo, and section 32.057, RSMo, the uniform confidentiality provision, shall apply to the collection of the tax imposed by this section, except as modified in this section.

     9. All exemptions granted to agencies of government, organizations, persons and to the sale of certain articles and items of tangible personal property and taxable services pursuant to the provisions of sections 144.010 to 144.525, RSMo, are hereby made applicable to the imposition and collection of the tax imposed by this section.

     10. The same sales tax permit, exemption certificate and retail certificate required by sections 144.010 to 144.525, RSMo for the administration and collection of the state sales tax shall satisfy the requirements of this section, and no additional permit or exemption certificate or retail certificate shall be required; except that the museum district may prescribe a form of exemption certificate for an exemption from the tax imposed by this section.

     11. The penalties provided in section 32.057, RSMo, and sections 144.010 to 144.525, RSMo, for violation of those sections are hereby made applicable to violations of this section.

     12. For the purpose of a sales tax imposed by a resolution pursuant to this section, all retail sales except retail sales of motor vehicles shall be deemed to be consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or the retailer's agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. In the event a retailer has more than one place of business in this state which participates in the sale, the sale shall be deemed to be consummated at the place of business of the retailer where the initial order for the tangible personal property is taken, even though the order shall be forwarded elsewhere for acceptance, approval of credit, shipment or billing. A sale by a retailer's employee shall be deemed to be consummated at the place of business form which the employee works.

     13. All sales taxes collected by the museum district shall be deposited by the museum district in a special fund to be expended for the purposes authorized in this section. The museum district shall keep accurate records of the amount of money which was collected pursuant to this section, and the records shall be open to the inspection by the officers and directors of each museum district and the Missouri department of revenue. Tax returns filed by businesses with the district shall otherwise be considered as confidential in the same manner as sales tax returns filed with the Missouri department of revenue.

     14. No museum district imposing a sales tax pursuant to this section may repeal or amend such sales tax unless such repeal or amendment will not impair the district's ability to repay any liabilities which it has incurred, money which it has borrowed or revenue bonds, notes or other obligations which it has issued or which have been issued to finance any project or projects.

     184.850. 1. A district may contract and incur obligations appropriate to accomplish its purposes.

     2. A district may enter into any lease or lease-purchase agreement for or with respect to any real or personal property necessary or convenient for its purposes.

     3. A district may enter into operating agreements and/or management agreements with not for profit corporations to operate the museum or carry out any other authorized purposes of functions of the district.

     4. A district may borrow money for its purposes at such rates of interest as the district may determine.

     5. A district may issue bonds, notes and other obligations, and may secure any of such obligations by mortgage, pledge, assignment, security agreement or deed of trust of any or all of the property and income of the district, subject to the restrictions provided in sections 184.800 to 184.880. The district shall also have the power and authority to secure financing on the issuance of bonds for financing through another political subdivision or an agency of the state.

     6. A district may enter into labor agreements, establish all bid conditions, decide all contract awards, pay all contractors and generally supervise the construction of the museum project.

     184.860. 1. A district may at any time authorize or issue revenue bonds for the purpose of paying all or any part of the cost of any project. Every issue of such bonds shall be payable out of the revenues of the district and may be further secured by other property of the district which may be pledged, assigned, mortgaged, or a security interest granted for such payment, without preference or priority of the first bonds issued, subject to any agreement with the holders of any other bonds pledging any specified property or revenues. Such bonds shall be authorized by resolution of the board of the district, and if issued by the district, shall bear such date or dates, and shall mature at such time or times, but not in excess of forty years, as the resolution shall specify. Such bonds shall be in such denomination, bear interest at such rate or rates, be in such form, either coupon or registered, be issued as current interest bonds, compound interest bonds, variable rate bonds, convertible bonds, or zero coupon bonds, be issued in such manner, be payable in such place or places and subject to redemption as such resolution may provide notwithstanding the provisions of section 108.170, RSMo. The bonds may be sold at either public or private sale, at such interest rates, and at such price or prices as the district shall determine.

     2. Any issue of district bonds outstanding may be refunded at any time by the district by issuing its refunding bonds in such amount as the district may deem necessary. Such bonds may not exceed the amount sufficient to refund the principal of the bonds so to be refunded together with any unpaid interest thereon and any premiums, commissions, service fees, and other expenses necessary to be paid in connection with the refunding. Any such refunding may be effected whether the bonds to be refunded then shall have matured or thereafter shall mature, either by sale of the refunding bonds and the application of the proceeds thereof to the payment of the bonds being refunded or by the exchange of the refunding bonds for the bonds being refunded with the consent of the holder or holders of the bonds being refunded. Refunding bonds may be issued regardless of whether the bonds being refunded were issued in connection with the same project or a separate project and regardless of whether the bonds proposed to be refunded shall be payable on the same date or different date or shall be due serially or otherwise.

     3. Bonds issued pursuant to this section shall exclusively be the responsibility of the district and shall not constitute a debt or liability of the state of Missouri or any agency or political subdivision of the state other than the district. The district shall not be obligated to pay such bonds with any funds other than those specifically pledged to repayment of the bonds. Any bonds issued by a district shall state on their face that they are not obligations of the state of Missouri or any agency or political subdivision thereof other than the district.

     4. Bonds issued pursuant to this section, the interest thereon, or any proceeds from such bonds shall be exempt from taxation in the state of Missouri for all purposes except the state estate tax.

     184.865. The district may contract with a federal agency, a state or its agencies and political subdivisions, a corporation, partnership or individual regarding funding, promotion, planning, designing, constructing, improving, maintaining, or operating a project or to assist in such activity; provided, however, that any contract providing for the overall management and operation of the museum for the district shall only be with a governmental entity or a not for profit corporation.

     184.870. In addition to all other powers granted by sections 184.800 to 184.880 the district shall have the following general powers:

     (1) To sue and be sued in its own name, and to receive service of process, which shall be served upon the district secretary;

     (2) To fix compensation of its employees and contractors;

     (3) To purchase any personal property necessary or convenient for its activities;

     (4) To collect and disburse funds for its activities; and

     (5) To exercise such other implied powers necessary or convenient for the district to accomplish its purposes which are not inconsistent with its express powers.

     184.880. 1. The district may obtain such insurance as it deems appropriate, considering its legal limits of liability, to protect itself, its officers and its employees from any potential liability and may also obtain such other types of insurance as it deems necessary to protect against loss of its real or personal property of any kind. The cost of this insurance shall be charged against the project.

     2. The district may also require contractors performing construction or maintenance work on the project and companies providing operational and management services to obtain liability insurance having the district, its directors and employees as additional named insureds.

     3. The district shall not attempt to self-insure for its potential liabilities unless it finds that it has sufficient funds available to cover any anticipated judgments or settlements and still complete its project without interruption. The district may self-insure if it is unable to obtain liability insurance coverage at a rate which is economically feasible to the district, considering its resources.".

HOUSE AMENDMENT NO. 14

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 124, Section 48, Line 1, by inserting after said line the following:

     "Section 49. Excursion gambling boats, as defined in section 313.800, RSMo, shall only serve intoxicating beverages during hours established by law for other establishments located within the same political subdivision."; and

     Further amend the title and enacting clause accordingly.

HOUSE AMENDMENT NO. 15

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Section 27, Page 116, Line 10, by deleting the words "five hundred" and inserting in lieu thereof the words "fifteen thousand five hundred".

HOUSE AMENDMENT NO. 16

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 26, Section 99.865, Line 54, by adding immediately after said line, the following:

     "99.870. (1) Any city with a population in excess of 400,000 may file a plan with the department of economic development to develop a race track facility classified in SIC 7944, in an enterprise zone as described in Chapter 135 RSMo. If the director and the commissioner of administration approve the plan, the director may provide that some portion of the state sales tax generated by the development be rebated to the department of revenue, which shall deposit such rebate in a special fund for the purpose of paying the cost of public infrastructure necessitated by the project. Monies in such special fund shall be expanded only as approved by appropriation of the General Assembly. In determining the amount of state sales tax so generated, the director may use such reasonable multipliers as are commonly accepted by the International Association of Convention and Visitors' Bureaus. The approval of the director shall become final upon the ratification thereof by the joint committee on economic development, policy and planning, established pursuant to Section 620.602, RSMo. The provisions of this section shall not apply to state sales tax revenues from redevelopment areas designated pursuant to Section 99.845. 4, and shall not apply to sales taxes that are constitutionally dedicated, taxes deposited to the school district trust fund pursuant to Section 144.701, and sales and use taxes on motor vehicles, trailers, boats, and outboard motors.

     (2) There is hereby established within the state treasury a special fund to be known as the "Missouri Sales Tax Increment Financing Revolving Fund", to be administered by the department of revenue. The department shall annually credit to the Missouri sales tax increment financing fund the sales tax authorized under the provisions of sections 99.845.4 and 99.870.".

HOUSE AMENDMENT NO. 18

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 16, Section 99.805, Lines 50 and 51, by deleting the words "two years" and inserting in lieu thereof the words "one year".

HOUSE AMENDMENT NO. 19

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In The Title, Line 3, by inserting immediately after the figure "99.865," the figures "100.255, 100.264, 100.275, 100.297,"; and

     Further amend said bill, Page 1, In The Title, Line 7, by inserting immediately after the figure "67.1300," the figure "100.296,"; and

     Further amend said bill, Page 1, In The Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred twenty-one"; and

     Further amend said bill, Page 1, Section A, Line 2, by inserting immediately after the figure "99.865," the figures "100.255, 100.264, 100.275, 100.297,"; and

     Further amend said bill, Page 2, Section A, Line 6, by inserting immediately after the figure "67.1300," the figure "100.296,"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred twenty-one"; and

     Further amend said bill, Page 2, Section A, Line 10, by inserting immediately after the figure "99.865," the figures "100.255, 100.264, 100.275, 100.297,"; and

     Further amend said bill, Page 26, Section 99.865, Line 54, by inserting immediately after said line the following:

     "100.255. As used in sections 100.250 to 100.297, the following terms mean:

     (1) "Board", the Missouri development finance board created by section 100.265;

     (2) "Borrower", any person, partnership, public or private corporation, association, development agency or any other entity eligible for funding under sections 100.250 to 100.297;

     (3) "Development agency", any of the following:

     (a) A port authority established pursuant to chapter 68, RSMo;

     (b) The bi-state development agencies established pursuant to sections 70.370 to 70.440, RSMo, and sections 238.010 to 238.100, RSMo;

     (c) A land clearance for redevelopment authority established pursuant to sections 99.300 to 99.660, RSMo;

     (d) A county, city, incorporated town or village or other political subdivision or public body of this state;

     (e) A planned industrial expansion authority established pursuant to sections 100.300 to 100.620;

     (f) An industrial development corporation established pursuant to sections 349.010 to 349.105, RSMo;

     (g) A real property tax increment financing commission established pursuant to sections 99.800 to 99.865, RSMo;

     (h) Any other governmental, quasi-governmental or quasi-public corporation or entity created by state law or by resolution adopted by the governing body of a development agency otherwise described in paragraph (a) or (g) of this subdivision;

     (4) "Development and reserve fund", the industrial development and reserve fund established under section 100.260;

     (5) "Export finance fund", the Missouri export finance fund established under section 100.260;

     (6) "Export trade activities" includes, but is not limited to, consulting, international market research, advertising, marketing, insurance, product research and design, legal assistance, transportation, including trade documentation and freight forwarding, communication, and processing of foreign orders to and for exporters and foreign purchases and warehousing, when undertaken to export or facilitate the export of goods or services produced or assembled in this state;

     (7) "Guarantee fund", the industrial development guarantee fund established by section 100.260;

     (8) "Infrastructure development fund", the infrastructure development fund established under section 100.263;

     (9) "Infrastructure facilities", the highways, streets, bridges, water supply and distribution systems, mass transportation facilities and equipment, telecommunication facilities, jails and prisons, sewers and sewage treatment facilities, waste water treatment facilities, airports, railroads, reservoirs, dams and waterways in this state, acquisition of blighted real estate and the improvements thereon, demolition of existing structures and preparation of sites in anticipation of development, public facilities and any other improvements provided by any form of government or development agency;

     (10) "Participating lender", a lender authorized by the board to participate with the board in the making of a loan or to make loans the repayment of which is secured by the development and reserve fund;

     (11) "Project", the purchase, construction, extension, and improvement of real estate, plants, buildings, structures or facilities, whether or not now in existence, used or to be used primarily as a factory, assembly plant, manufacturing plant, fabricating plant, distribution center, warehouse building, office building, port terminal or facility, transportation and transfer facility, industrial plant, processing plant, commercial or agricultural facility, nursing or retirement facility or combination thereof, recreational facility, cultural facility, public facilities, job training or other vocational training facility, infrastructure facility, video-audio telecommunication conferencing facility, office building, facility for the prevention, reduction, disposal or control of pollution, sewage or solid waste, facility for conducting export trade activities, or research and development building in connection with any of the facilities defined as a project in this subdivision. The term "project" shall also include any improvements, including, but not limited to, road or rail construction, alteration or relocation, and construction of facilities to provide utility service for any of the facilities defined as a project under this subdivision, along with any fixtures, equipment, and machinery, and any demolition and relocation expenses used in connection with any such projects and any capital used to promote and facilitate such facilities and notes payable from anticipated revenue issued by any development agency[.];

     (12) "Public facility", any facility or improvements available for use by the general public including facilities for which user or other fees are charges on a nondiscriminatory basis.

     [100.264. Notwithstanding any law to the contrary, any request for a loan or bond issue that exceeds one million dollars for infrastructure facilities project as defined in section 100.255, from the infrastructure development fund as defined in section 100.263, shall not be approved unless the request for such loan or bond issue has been denied by two commercial lenders located in Missouri who regularly make such loans or underwrite such bond issues.]

     100.275. 1. The board may at any time issue revenue bonds for the purpose of paying any part of the cost of any project or projects, or part thereof, and for the purpose of refunding any of its bonds or the bonds of any development agency. Every issue of its bonds shall be payable out of the revenues of the board which may be pledged for such payment, without preference or priority of the first bonds issued, subject to any agreement with the holders of any other bonds or pledging any specified revenues. The bonds shall be authorized by resolution of the board, shall bear such date or dates, and shall mature at such time or times, but not in excess of thirty years, as the resolution of the board shall specify. The bonds shall be in such denominations, bear interest at such rates, be in such form, either coupon or registered, be issued in such manner, be payable in such place or places and be subject to redemption as such resolution may provide. The bonds of the board may be sold at public or private sale, as the board may specify, at such price or prices as the board shall determine, but at not less than ninety-five percent of the principal amount thereof, and at such interest rate as the board shall determine, notwithstanding the provisions of section 108.170, RSMo.

     2. The board may issue notes payable from the proceeds of bonds to be issued in the future or from such other sources as the board may specify as in the case of bonds. Such notes shall mature in not more than five years and shall be sold at public or private sale, as the board may specify, at not less than ninety-five percent of the principal amount thereof and at such interest rate as the board shall determine, notwithstanding the provisions of section 108.170, RSMo. The other details with respect to such notes shall be determined by the board as in the case of bonds.

     3. The state shall not be liable on any notes or bonds of the board. Such notes or bonds shall not be a debt of the state and shall contain on the faces thereof a statement to such effect.

     4. No member of the board nor any person authorized to execute notes or bonds of the board shall be liable personally on such notes or bonds or shall be subject to any personal liability or accountability by reason of the issuance thereof.

     5. The notes and bonds of the board are securities in which all public bodies and political subdivisions of this state; all insurance companies and associations and all other persons carrying on an insurance business; all banks, trust companies, saving associations, savings and loan associations, credit unions, and investment companies; all administrators, guardians, executors, trustees, and other fiduciaries; and all other persons who now or may hereafter be authorized to invest in notes and bonds or other obligations of this state may properly and legally invest funds, including capital, in their control or belonging to them.

     6. The board shall not be required to pay any taxes or any assessments whatsoever to this state, any political subdivision of this state, or any other governmental agency of this state. The notes and bonds of the board, and the income therefrom, shall, at all times, be exempt from any taxes and any assessments, except for estate taxes, gift taxes, and taxes on transfers.

     7. Nothing contained in sections 100.250 to 100.297 shall be deemed to constitute a use of state funds or credit in violation of the provisions of article III, sections 37, 38(a) and 39, of the Missouri Constitution.

     8. The board shall have the power to contract with any development agency to perform any governmental service, activity or undertaking which the contracting development agency is authorized by law to perform or to issue any bonds or notes which the contracting development agency is authorized by law to issue. Any such contract shall be authorized by the governing body of the development agency and by the board and shall state the purpose of the contract and the powers and duties of the parties thereunder. Any bonds or notes issued by the board on behalf of a development agency shall be entitled to the same security as if such bonds or notes were issued directly by the development agency. In addition to any other security for such bonds or notes, the board may secure such bonds, notes or other indebtedness in the manner described in section 100.297.

     100.296. 1. Sections 100.250 to 100.297 shall not be subject to the provisions of sections 109.200 to 109.310, RSMo, the state and local records law, or the provisions of sections 610.010 to 610.030, RSMo, relating to the meetings of governmental bodies, and a member appointed pursuant to section 100.265 shall be exempt from the provisions of chapter 105, RSMo, provided that the member shall not vote or participate in any matter in which the member has a direct or indirect interest. For the purposes of sections 100.250 to 100.297, a "direct or indirect interest" means the ownership of ten percent or more of any class of equity securities in any corporation seeking a guarantee pursuant to the provisions of sections 100.250 to 100.297, occupying the office of vice president or other office senior to the office of vice president, or a director, of any corporation seeking a guarantee pursuant to the provisions of sections 100.250 to 100.297; provided, nothing contained in sections 100.250 to 100.297, nor the provisions of chapter 105, RSMo, shall prevent any corporation, bank, or trust company from purchasing, selling, or otherwise dealing in bonds or notes or mortgages guaranteed pursuant to the provisions of sections 100.250 to 100.297. The development and reserve fund may be pledged to secure loans made through a participating lender with which a member of the board is affiliated so long as the member does not participate in or attempt to influence the approval of any such loan.

     2. The board shall not knowingly extend or secure a loan or grant a tax credit to, or issue any bonds or enter into any other agreement with or on behalf of any business entity in which a board member, statewide elected official, state legislator or employee of this state has a substantial interest as defined in section 105.450, RSMo.

     3. The board shall not knowingly extend or secure a loan or grant a tax credit to, or issue any bonds or enter into any other agreement with or on behalf of any business entity until each officer of the business entity has notified the board of all campaign contributions such officer has made within the previous two years [which are], to the extent such contributions are not otherwise reportable by the recipient, under the provisions of chapter 130, RSMo. For the purposes of this section, "an officer" means a person who is employed by the business entity in a policy-making capacity and whose name is listed in the business entity's articles of incorporation filed with the secretary of state.

     100.297. 1. The board may authorize a tax credit, as described in this section, to the owner of any revenue bonds or notes issued by the board under the provisions of sections 100.250 to 100.297, for infrastructure facilities as defined in subdivision (9) of section 100.255, if, prior to the issuance of such bonds or notes, the board determines that:

     (1) The availability of such tax credit is a material inducement to the undertaking of the project in the state of Missouri and to the sale of the bonds or notes;

     (2) The loan with respect to the project is adequately secured by a first deed of trust or mortgage or comparable lien, or other security satisfactory to the board.

     2. Upon making the determinations specified in subsection 1 of this section, the board may declare that each owner of an issue of revenue bonds or notes shall be entitled, in lieu of any other deduction with respect to such bonds or notes, to a tax credit against any tax otherwise due by such owner under the provisions of chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, chapter 147, RSMo, or chapter 148, RSMo, in the amount of one hundred percent of the unpaid principal of and [accrued] unpaid interest on such bonds or notes held by such owner in the taxable year of such owner following the calendar year of the default of the loan by the borrower with respect to the project. The occurrence of a default shall be governed by documents authorizing the issuance of the bonds. The tax credit allowed under this section shall be available to the original owners of the bonds or notes or any subsequent owner or owners thereof. Once an owner is entitled to a claim, any such tax credits shall be transferable as provided in subsection 7 of section 100.286. Notwithstanding any provision of Missouri law to the contrary, any portion of the tax credit to which any owner of a revenue bond or note is entitled under this section which exceeds the total income tax liability of such owner of a revenue bond or note shall be carried forward and allowed as a credit against any future taxes imposed on such owner within the next ten years under the provisions of chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, chapter 147, RSMo, or chapter 148, RSMo. The eligibility of the owner of any revenue bond or note issued under the provisions of sections 100.250 to 100.297 for the tax credit provided by this section shall be expressly stated on the face of each such bond or note. The tax credit allowed pursuant to this section shall also be available to any financial institution or guarantor which executes any credit facility as security for bonds issued pursuant to this section to the same extent as if such financial institution or guarantor was an owner of the bonds or notes, provided however, in such case the tax credits provided by this section shall be available immediately following any default of the loan by the borrower with respect to the project. In addition to reimbursing the financial institution or guarantor for claims relating to unpaid principal and interest, such claim may include payment of any unpaid fees imposed by such financial institution or guarantor for use of the credit facility.

     3. The aggregate principal amount of revenue bonds or notes outstanding at any time with respect to which the tax credit provided in this section shall be available shall not exceed fifty million dollars.".

HOUSE AMENDMENT NO. 20

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 10, by striking the words, "one hundred seventeen", and inserting in lieu thereof the words, "one hundred eighteen", and,

     Further amend said bill, page 1, section A, line 8, by striking the words, "one hundred seventeen", and inserting in lieu thereof the words, "one hundred eighteen", and,

     Further amend said bill same page and section, line 17, by striking the words, "and 48", and inserting the words, "48 and 49", and

     Further amend said bill, page 124, section 48, line 1, by adding a new section immediately after line 1 to read as follows:

     "Section 49. Notwithstanding the provisions in section 362.245 and 362.250 RSMo., or other provisions of chapter 362, a bank director who is not a stockholder of the bank or trust company, shall have all the rights, privileges and duties of a bank director who is a shareholder, except the duty to have qualifying shares in such bank or trust company or qualifying shares in the bank holding company which controls such bank or trust company.".

HOUSE AMENDMENT NO. 21

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In The Title, Lines 3 through 5, by deleting the figures "238.202, 238.207, 238.210, 238.212, 238.215, 238.220, 238.227, 238.230, 238.232, 238.235, 238.237, 238.240,"; and

     Further amend said bill, Page 1, In The Title, Line 10, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred four"; and

     Further amend said bill, Page 1, Section A, Lines 2 through 4, by deleting the word and figures "238.202, 238.207, 238.210, 238.212, 238.215, 238.220, 238.227, 238.230, 238.232, 238.235, 238.237, 238.240,"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the words "one hundred seventeen" and inserting in lieu thereof the words "one hundred four"; and

     Further amend said bill, Page 2, Section A, Lines 12 and 113, by deleting the word and figures "238.202, 238.207, 238.210, 238.212, 238.215, 238.216, 238.220, 238.227, 238.230, 238.232, 238.235, 238.237, 238.240,"; and

     Further amend said bill, Page 57, Section 238.202, Lines 1 through 25, by deleting all of said section 238.202; and

     Further amend said bill, Page 58, Section 238.207, Lines 1 through 41, by deleting all of said section 238.207; and

     Further amend said bill, Page 59, Section 238.210, Lines 1 through 34, by deleting all of said section 238.210; and

     Further amend said bill, Page 60, Section 238.212, Lines 1 through 32, by deleting all of said section 238.212; and

     Further amend said bill, Page 61, Section 238.215, Lines 1 through 28, by deleting all of said section 238.215; and

     Further amend said bill, Page 61, Section 238.216, Lines 1 through 66, by deleting all of said section 238.216; and

     Further amend said bill, Page 63, Section 238.220, Lines 1 through 55, by deleting all of said section 238.220; and

     Further amend said bill, Page 65, Section 238.227, Lines 1 through 17, by deleting all of said section 238.227; and

     Further amend said bill, Page 65, Section 238.230, Lines 1 through 30, by deleting all of said section 238.230; and

     Further amend said bill, Page 66, Section 238.232, Lines 1 through 27, by deleting all of said section 238.232; and

     Further amend said bill, Page 67, Section 238.235, Lines 1 through 245, by deleting all of said section 238.235; and

     Further amend said bill, Page 74, Section 238.237, Lines 1 through 26, by deleting all of said section 238.237; and

     Further amend said bill, Page 74, Section 238.240, Lines 1 through 12, by deleting all of said section 238.240.

HOUSE AMENDMENT NO. 22

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 2, by inserting immediately after the number "30.765," the number "30.767,"; and

     Further amend said bill, Page 1, In the Title, Line 5, by inserting immediately after the number "327.031," the numbers "348.015, 348.200,"; and

     Further amend said bill, Page 1, In the Title, Line 8, by inserting immediately after the number "178.895," the number "348.075,"; and

     Further amend said bill, Page 1, In the Title, Line 10, by deleting the word "seventeen" and inserting in lieu thereof the word "thirty-six"; and

     Further amend said bill, Page 1, Section A, Line 1, by inserting immediately after the number "30.765," the number "30.767,"; and

     Further amend said bill, Page 1, Section A, Line 4, by inserting immediately after the number "327.031," the numbers "348.015, 348.200,"; and

     Further amend said bill, Page 2, Section A, Line 7, by inserting immediately after the number "178.895," the number "348.075,"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the word "seventeen" and inserting in lieu thereof the word "thirty-six"; and

     Further amend said bill, Page 2, Section A, Line 9, by inserting immediately after the number "30.765," the following: "30.767, 30.800, 30.810, 30.820, 30.830, 30.840, 30.850,"; and

     Further amend said bill, Page 2, Section A, Line 14, by inserting immediately after the number "327.031," the following: "348.015, 348.075, 348.200, 348.400, 348.403, 348.406, 348.407, 348.408, 348.409, 348.410, 348.412, 348.415,"; and

     Further amend said bill, Page 2, Section 30.750, Lines 4 and 5, by deleting all of said lines and inserting in lieu thereof the following:

     "(2) "Eligible beginning farmer", [any farmer who qualifies as a beginning farmer for participation in federal tax-exempt financing,] (a) for any beginning farmer who seeks to participate in the linked deposit program alone, a farmer who:

     a. Is a Missouri resident;

     b. Wishes to borrow for a farm operation located in Missouri;

     c. Is at least eighteen years old;

     d. In the preceding five years has not owned, either directly or indirectly, farm land greater than thirty percent of the median size farm in the county where the proposed farm operation is located, or farm land with an appraised value greater than one hundred twenty-five thousand dollars; and

     e. Has not been the sole farmer of land for more than ten years prior to the date of application of the proposed farm operation.

A farmer who qualifies as an eligible farmer under this provision may utilize the proceeds of a linked deposit loan to purchase agricultural land, farm buildings, new and used farm equipment, livestock and working capital;

     (b) For any beginning farmer who is participating in both the linked deposit program and the beginning farmer loan program administered by the Missouri agriculture and small business development authority, a farmer who:

     a. Qualifies under the definition of a beginning farmer utilized for eligibility for federal tax exempt financing, including the limitations on the use of loan proceeds; and

     b. Meets all other requirements established by the Missouri agriculture and small business development authority;"; and

     Further amend said bill, Page 6, Section 30.756, Line 16, by inserting immediately after the word "operation" an opening bracket "["; and

     Further amend said bill, Page 6, Section 30.756, Line 17, by deleting the word "RSMo," and inserting in lieu thereof the word "RSMo],"; and

     Further amend said bill, Page 6, Section 30.756, Line 20, by inserting immediately after the word "operation" an opening bracket "["; and

     Further amend said bill, Page 6, Section 30.756, Line 22, by deleting all of said line and inserting in lieu thereof the following: "to 348.225, RSMo], eligible agribusiness or eligible small business. [No loan guaranteed under"; and

     Further amend said bill, Page 6, Section 30.756, Line 25, by inserting immediately after the word "limit." a closing bracket "]"; and

     Further amend said bill, Page 8, Section 30.758, Line 19, by deleting the word "year," and inserting in lieu thereof the word "year[,"; and

     Further amend said bill, Page 8, Section 30.758, Line 22, by deleting the word "years." and inserting in lieu thereof the word "years]."; and

     Further amend said bill, Page 11, Section 30.765, Line 13, by inserting after all of said line the following:

     "30.767. The state treasurer shall not, after December 31, [2004] 2007, invest in any linked deposit the value of which is to be lent to a recipient other than an eligible water supply system or an eligible student borrower.

     30.800. As used in sections 30.800 to 30.850, the following terms shall mean:

     (1) "Eligible guaranteed agribusiness", a person, corporation or other business entity engaged in the processing or adding of value to agricultural products produced in Missouri, which is located in Missouri, and which has received a loan guarantee pursuant to the provisions of sections 348.400 to 348.415, RSMo;

     (2) "Eligible guaranteed livestock operation", a person engaged in the production of livestock or poultry in Missouri in an authorized farm corporation, family farm, or family farm corporation as defined in section 350.010, RSMo, who has received a single purpose animal facilities loan guarantee pursuant to the provisions of sections 348.185 to 348.225, RSMo.

     30.810. Except for specific provisions to the contrary in sections 30.800 to 30.850, all definitions, requirements, responsibilities, rights, remedies and other matters set forth in sections 30.750 to 30.769 shall apply to linked deposits and linked deposit loans to eligible guaranteed agribusinesses and eligible guaranteed livestock operations.

     30.820. A linked deposit loan to an eligible guaranteed agribusiness or an eligible guaranteed livestock operation may not exceed two hundred fifty thousand dollars, and no service of separate loans to such entities may be made which exceeds such limit.

     30.830. The state treasurer may utilize up to thirty million dollars of the one hundred sixty-five million dollar linked deposit allocation for agriculture set forth in subsection 1 of section 30.753 for linked deposits for eligible guaranteed agribusinesses and eligible guaranteed livestock operations.

     30.840. The state treasurer may renew a linked deposit for an eligible guaranteed agribusiness or an eligible guaranteed livestock operation for additional one-year terms, not to exceed ten years.

     30.850. The proceeds of a linked deposit loan to an eligible guaranteed agribusiness or an eligible guaranteed livestock operation shall be used exclusively for necessary production expenses as set forth in subsection 2 of section 30.753."; and

     Further amend said bill, Page 81, Section 327.031, Line 89, by inserting after all of said line the following:

     "348.015. As used in sections 348.005 to [348.180] 348.225, the following terms shall mean:

     (1) "Agricultural development loan", a loan for the acquisition, construction, improvement, or rehabilitation of agricultural property;

     (2) "Agricultural property", any land and easements and real and personal property, including, but not limited to, buildings, structures, improvements, equipment, and livestock, which is used or is to be used in Missouri by Missouri residents for:

     (a) The operation of a farm or ranch;

     (b) Planting, cultivating, or harvesting cereals, natural fibers, fruits, vegetables, or trees;

     (c) Grazing, feeding, or the care of livestock, poultry, or fish;

     (d) Dairy production;

     (e) Storing, transporting, or processing farm and ranch products, including, without limitation, facilities such as grain elevators, cotton gins, shipping heads, livestock pens, warehouses, wharfs, docks, creameries, or feed plants; and

     (f) Supplying and conserving water, draining or irrigating land, collecting, treating, and disposing of liquid and solid waste, or controlling pollution, as needed for the operations set out in this subdivision;

     (3) "Authority", the Missouri agricultural and small business development authority organized pursuant to the provisions of sections 348.005 to 348.180;

     (4) "Bonds", any bonds, notes, debentures, interim certificates, bond, grant, or revenue anticipation notes, or any other evidences of indebtedness;

     (5) "Borrower", any individual, partnership, corporation, including a corporation or other entity organized pursuant to section 274.220, RSMo, firm, cooperative, association, trust, estate, political subdivision, state agency, or other legal entity or its representative executing a note or other evidence of a loan;

     (6) "Eligible borrower", a borrower qualifying for an agricultural development loan, a small business development loan, or a small business pollution control facility loan under such criteria and priorities as may be established in rules of the authority or in procedural manuals issued thereunder for the purpose of directing the use of available loan funds on the basis of need for and value of each loan for the maintenance of the agricultural economy or small business and on the meeting of pollution control objectives and assuring conformity with conditions established by insurers or guarantors of loans and the preservation of the security of bonds or notes issued to finance the loan;

     (7) "Insurer" or "guarantor", the Farmers Home Administration of the Department of Agriculture of the United States, the United States Small Business Administration, or any other or successor agency or instrumentality of the United States having power, or any insurance company qualified under Missouri law, to insure or guarantee the payment of agricultural development loans, small business development loans, or small business pollution control facility loans and interest thereon, or any portion thereof;

     (8) "Lender", any state or national bank, federal land bank, production credit association, bank for cooperatives, federal or state chartered savings and loan association or building and loan association or small business investment company that is subject to credit examination by an agency of the state or federal government, or any other lending institution approved by the insurer or guarantor of an agricultural development loan, small business development loan, or small business pollution control facility loan which undertakes to make or service such a loan;

     (9) "Pollution", any form of environmental pollution including, but not limited to, water pollution, air pollution, land pollution, solid waste pollution, thermal pollution, radiation contamination, or noise pollution;

     (10) "Pollution control facility" or "facilities", any land, interest in land, building, structure, facility, system, fixture, improvement, appurtenance, machinery, equipment, or any combination thereof, and all real and personal property deemed necessary therewith, having to do with, or the end purpose of which is, reducing, controlling, or preventing pollution;

     (11) "Small business", those enterprises which, at the time of their application to the authority, meet the criteria, as interpreted and applied by the authority, for definition as a "small business" established for the Small Business Administration and set forth in Section [121.3-10] 121.301 of Part 121 of Title 13 of the Code of Federal Regulations;

     (12) "Small business development loan", a loan for the acquisition, construction, improvement, or rehabilitation of property owned or to be acquired by a small business as defined herein;

     (13) "Small business pollution control facility loan", a loan for the acquisition, construction, improvement, or rehabilitation of a pollution control facility or facilities by a small business.

     348.075. The authority shall have the power, as necessary or convenient to carry out and effectuate the purposes and provisions of sections 348.005 to 348.180[, to adopt, and from time to time amend and repeal, bylaws and rules not inconsistent with sections 348.005 to 348.180, to carry into effect the powers and purposes of the authority and the conduct of its business. No]. Any rule or portion of a rule promulgated under the authority of sections 348.005 to 348.180 shall become effective [unless it has been promulgated pursuant to the provisions of section 536.024, RSMo] only if it has been promulgated in compliance with the provisions of chapter 536, RSMo, as it may be amended from time to time.

     348.200. 1. There is hereby established in the state treasury the "Single-Purpose Animal Facilities Loan Guarantee Fund". The fund shall consist of money appropriated to it by the general assembly, charges, gifts, grants and bequests from federal, private or other sources. Notwithstanding the provisions of section 33.080, RSMo, no portion of the fund shall be transferred to the general revenue fund.

     2. All moneys received by the authority for payments made on previously defaulted guaranteed loans shall be paid promptly into the state treasury and deposited in the fund.

     3. The fund shall be administered by the Missouri agricultural and small business development authority organized pursuant to sections 348.005 to 348.180.

     4. Beginning with fiscal year 1994-1995, the general assembly may appropriate moneys not to exceed [three] four million dollars for the establishment and initial funding of the single-purpose animal facilities loan guarantee fund.

     348.400. As used in sections 348.400 to 348.415, the following terms mean:

     (1) "Agricultural business development loan", a loan for the acquisition, construction, improvement, or rehabilitation of agricultural property;

     (2) "Agricultural product", an agricultural, horticultural, viticultural, or vegetable product, growing of grapes that will be processed into wine, bees, honey, fish or other aquacultural product, planting seed, livestock, a livestock product, a forestry product, poultry or a poultry product, either in its natural or processed state, that has been produced, processed, or otherwise had value added to it in this state;

     (3) "Agricultural property", any land and easements and real and personal property, including, but not limited to, buildings, structures, improvements, and equipment which is used in Missouri by Missouri residents or Missouri based businesses for the purpose of processing, manufacturing, marketing, exporting or adding value to an agricultural product;

     (4) "Authority", the Missouri agricultural and small business development authority;

     (5) "Eligible borrower", as defined in section 348.015;

     (6) "Eligible lender", as defined in section 348.015;

     (7) "Fund", the agricultural product utilization and business development loan guarantee fund or the agricultural product utilization;

     (8) "Grant Fund" the agricultural product utilization grant fund;

     (9) "Program fund", the agricultural product utilization and business development loan program fund.

     348.403. 1. In addition to the duties and powers established in sections 348.005 to 348.225, the authority shall develop and implement an agricultural business development loan guarantee program as provided in sections 348.400 to 348.415. The authority shall promulgate only those rules that are necessary to carry out the stated purposes of sections 348.400 to 348.415. The rules promulgated pursuant to this section shall encourage maximum involvement and participation by lenders and financial institutions in the loan guarantee program. The authority shall implement the loan guarantee program, and may employ such persons as necessary, within the limits of appropriations for that purpose, to administer the loan guarantee program.

     2. Any rule or portion of a rule promulgated pursuant to the authority of sections 348.400 to 348.415 shall become effective only if it has been promulgated in compliance with the provisions of chapter 536, RSMo, as it may be amended from time to time.

     3. The authority may reject any application for guaranty pursuant to sections 348.400 to 348.415.

     348.406. 1. The authority, upon application, may issue certificates of guaranty covering a first loss guarantee up to but not more than twenty-five percent of the loan on a declining principal basis for loans to eligible borrowers, executing a note or other evidence of a loan made for the purpose of an agricultural business development loan, but not to exceed the amount of two hundred fifty thousand dollars for any eligible borrower and to pay from the fund to an eligible lender up to twenty-five percent of the amount on a declining principal basis of any loss on any guaranteed loan made pursuant to the provisions of sections 348.400 to 348.415, in the event of default on the loan. Upon payment on the guarantee, the authority shall be subrogated to all the rights of the eligible lender.

     2. The authority shall charge for each guaranteed loan a one-time participation fee of one percent which shall be collected by the eligible lender at the time of closing and paid to the authority. In addition, the authority may charge a special loan guarantee fee of up to one percent per annum of the outstanding principal which shall be collected from the eligible borrower by the eligible lender and paid to the authority. Amounts so collected shall be deposited in the program fund and used, upon appropriation, to pay the costs of administering the program.

     3. All moneys paid to satisfy a defaulted guaranteed loan shall only be paid out of the fund.

     4. The total outstanding guaranteed loans shall at no time exceed an amount which, according to sound actuarial judgment, would allow immediate redemption of forty percent of the outstanding loans guaranteed by the fund at any one time.

     348.407. 1. The authority shall develop and implement agricultural products utilization grants as provided in this section.

     2. The authority may reject any application for grants pursuant to this section.

     3. The authority shall make grants from the grant fund to persons or entities whose projects add value to agricultural products and aid the economy of a rural community.

     4. The authority may consider the following in making the decision:

     (1) The applicant's commitment to the project through the applicant's risk;

     (2) Community involvement and support;

     (3) The phase the project is in on an annual basis;

     (4) The leaders and consultants chosen to direct the project;

     (5) The amount needed for the project to achieve the bankable stage; and

     (6) The projects planning for long-term success through feasibility studies, marketing plans and business plans.

     5. The authority may charge for each grant application a one-time fee not to exceed two hundred dollars to be paid to the authority at the time of application. Such moneys shall be deposited to the program fund.

     348.408. 1. There is hereby established in the state treasury the "Agricultural Product Utilization Grant Fund". The fund shall consist of money appropriated to it by the general assembly, charges, gifts, grants, bequests from federal, private or other sources, and investment income on the fund. Notwithstanding the provisions of section 33.080, RSMo, no portion of the fund shall be transferred to the general revenue fund.

     2. The fund shall be administered by the authority.

     3. Beginning with fiscal year 1997-98, the general assembly may appropriate moneys not to exceed one and one-half million dollars for the establishment and initial funding of the fund. In any given year, at least one-third of the appropriation shall be awarded to grant requests of twenty-five thousand dollars or less. No single grant award shall exceed one hundred fifty thousand dollars.

     4. Moneys in the fund may be invested by the state treasurer, and any income therefrom shall be deposited to the credit of the fund.

     348.409. 1. There is hereby established in the state treasury the "Agricultural Product Utilization and Business Development Loan Guarantee Fund". The fund shall consist of money appropriated to it by the general assembly, charges, gifts, grants, bequests from federal, private or other sources, and investment income on the fund. Notwithstanding the provisions of section 33.080, RSMo, no portion of the fund shall be transferred to the general revenue fund.

     2. All moneys received by the authority for payments made on previously defaulted guaranteed loans shall be paid promptly into the state treasury and deposited in the fund.

     3. The fund shall be administered by the authority.

     4. Beginning with fiscal year 1997-98, the general assembly may appropriate moneys not to exceed two and one-half million dollars for the establishment and initial funding of the fund.

     5. Moneys in the fund, both unobligated and obligated as a reserve, which in the judgment of the authority are not currently needed for payments of defaults of guaranteed loans, may be invested by the state treasurer, and any income therefrom shall be deposited to the credit of the fund.

     348.410. 1. There is hereby created in the state treasury the "Agricultural Product Utilization Business Development Loan Program Fund". The fund shall consist of money collected by the authority and transmitted to the department of revenue and deposited pursuant to subsection 2 of section 348.406 and subsection 7 of section 348.407. Notwithstanding the provisions of section 33.080, RSMo, no portion of the fund shall be transferred to the general revenue fund. The money in the program fund shall be used, upon appropriation, for administration of the program established pursuant to sections 348.400 to 348.415 and for no other purpose. Moneys necessary for the startup of this program may be transferred to this program fund from the fund established pursuant to sections 348.408 and 348.409.

     2. For purposes of this section, the department shall, as part of the program administration, establish market promotion activities that assist grant recipients and loan applicants in the planning and marketing of value-added products. The department is specifically authorized to employ qualified individuals to fulfill such duties.

     348.412. 1. Eligible borrowers:

     (1) Shall use the proceeds of the agricultural business development loan to acquire agricultural property; and

     (2) May not finance more than ninety percent of the anticipated cost of the project through the agricultural business development loan.

     2. The project shall have opportunities to succeed in the development, expansion and operation of businesses involved in adding value to, marketing, exporting, processing, or manufacturing agricultural products that will benefit the state economically and socially through direct or indirect job creation or job retention.

     3. The authority shall promulgate rules establishing eligibility pursuant to the provisions of sections 348.400 to 348.415, taking into consideration:

     (1) The eligible borrower's ability to repay the agricultural business development loan;

     (2) The general economic conditions of the area in which the agricultural property will be located;

     (3) The prospect of success of the particular project for which the loan is sought; and

     (4) Such other factors as the authority may establish.

     4. The authority may promulgate rules to provide for:

     (1) The requirement or nonrequirement of security or endorsement and the nature thereof;

     (2) The manner and time or repayment of the principal and interest;

     (3) The maximum rate of interest;

     (4) The right of the eligible borrower to accelerate payments without penalty;

     (5) The amount of the guaranty charge;

     (6) The effective period of the guaranty;

     (7) The percent of the agricultural business development loan, not to exceed twenty-five percent, covered by the guaranty;

     (8) The assignability of agricultural business development loans by the eligible lender;

     (9) Procedures in the event of default on an agricultural business development loan;

     (10) The due diligence effort on the part of eligible lenders for collection of guaranteed loans;

     (11) Collection assistance to be provided to eligible lenders; and

     (12) The extension of the guaranty in consideration of duty in the armed forces, unemployment, natural disasters, or other hardships.

     348.415. The authority, by rule, shall determine the policy of collections and recovery of agricultural business development loans, including the use of private collection agencies. The authority may institute action to recover any amount due the state in any loan transaction, use private collection agencies, or otherwise carry out the policy of the authority. The eligible lender making the original loan shall cooperate with the authority in the collection of the agricultural business development loan and shall use its regular collection procedures before any action taken by the authority.".

HOUSE AMENDMENT NO. 23

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 10, by deleting the word "seventeen" and inserting in lieu thereof the word "thirty-six"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the word "seventeen" and inserting in lieu thereof the word "thirty-six"; and

     Further amend said bill, Page 2, Section A, Line 17, by deleting "and 48" and inserting in lieu thereof the following: ", 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66 and 67"; and

     Further amend said bill, Page 124, Section 48, Line 1, by inserting after all of said line the following:

     "Section 49. 1. Nonprofit, membership corporations may be organized under sections 49 to 66 of this act for the purpose of supplying water and waste water disposal and treatment services within the state of Missouri. Corporations which become subject to sections 49 to 66 of this act in the manner herein provided are herein referred to as "nonprofit sewer companies". Five or more persons may organize a nonprofit sewer company pursuant to sections 49 to 66 of this act.

     2. The articles of incorporation of a nonprofit sewer company shall recite in the caption that they are executed pursuant to sections 49 to 66 of this act, shall be signed and acknowledged in duplicate by at least five of the incorporators and shall state:

     (1) The name of the company;

     (2) The address of its principal office;

     (3) The names and addresses of the incorporators;

     (4) The number of years the company is to continue, which may be any number including perpetuity;

     (5) The names and addresses of the persons who shall constitute its first board of directors;

     (6) Whether the company chooses to operate under the provisions of chapter 347, RSMo, or chapter 355, RSMo; and

     (7) Any provisions not inconsistent with sections 49 to 66 of this act deemed necessary or advisable for the conduct of its business and affair. Such articles of incorporation shall be submitted to the secretary of state for filing.

     Section 50. Any corporation organized under the laws of this state for the purpose, among others, of supplying water, waste water disposal, or waste water treatment may be converted into a nonprofit sewer company and become subject to sections 49 to 66 of this act with the same effect as if originally organized under sections 49 to 66 of this act by complying with the following requirements:

     (1) The proposition for the conversion of such corporation into a nonprofit sewer company and proposed articles of conversion to give effect thereto shall be first approved by the board of trustees or the board of directors, as the case may be, of such corporation. The proposed articles of conversion shall recite in the caption that they are executed pursuant to sections 49 to 66 of this act and shall state:

     (a) The name of the corporation prior to its conversion into a nonprofit sewer company;

     (b) The address of the principal office of such corporation;

     (c) The date of the filing of the articles of incorporation of such corporation in the office of the secretary of state;

     (d) The statute or statutes under which such corporation was organized;

     (e) The name assumed by such corporation;

     (f) A statement that such corporation elects to become a nonprofit, membership corporation subject to sections 49 to 66 of this act;

     (g) The manner and basis of converting either memberships in or shares of stock of such corporation into memberships therein after completion of the conversion; and

     (h) Any provisions not inconsistent with sections 49 to 66 of this act deemed necessary or advisable for the conduct of the business and affairs of such corporation.

     (2) The proposition for the conversion of such corporation into a nonprofit sewer company and the proposed articles of conversion approved by the board of trustees or board of directors, as the case may be, of such corporation shall then be submitted to a vote of the members or stockholders, as the case may be, of such corporation at any duly held annual or special meeting thereof, the notice of which shall set forth full particulars concerning the proposed conversion. The proposition for the conversion of such corporation into a nonprofit sewer company and the proposed articles of conversion, with such amendments thereto as the members or stockholders of such corporation shall choose to make, shall be deemed to be approved upon the affirmative vote of not less than a majority of the members of such corporation, or, if such corporation is a stock corporation, upon the affirmative vote of the holders of not less than a majority of the capital stock of such corporation.

     (3) Upon such approval by the members or stockholders of such corporation, articles of conversion in the form approved by such members or stockholders shall be executed and acknowledged in duplicate on behalf of such corporation by its president or vice president and its corporate seal shall be affixed thereto and attested by its secretary. The president or vice president executing such articles of conversion on behalf of such corporation shall also make and annex to each copy thereof an affidavit stating that the provisions of sections 49 to 66 of this act with respect to the approval of its trustees or directors and its members or stockholders, of the proposition for the conversion of such corporation into a nonprofit sewer company and such articles of conversion were duly complied with. Such articles of conversion and affidavit shall be submitted to the secretary of state for filing as provided in sections 49 to 66 of this act. The term "articles of incorporation" as used in sections 49 to 66 of this act shall be deemed to include the articles of conversion of a converted corporation.

     Section 51. A nonprofit sewer company shall have power:

     (1) To sue and be sued, in its corporate name;

     (2) To have succession by its corporate name for the period stated in its articles of incorporation or, if no period is stated in its articles of incorporation, to have such succession perpetually;

     (3) To adopt a corporate seal and alter the same at pleasure;

     (4) To provide water, waste water disposal and waste water treatment services to its members, to governmental agencies and political subdivisions;

     (5) To make loans to persons to whom water, waste water disposal or waste water treatment is or will be supplied by the company for the purpose of, and otherwise to assist such persons in, installing therein plumbing fixtures, appliances, apparatus and equipment of any and all kinds and character, and in connection therewith, to purchase, acquire, lease, sell, distribute, install and repair such plumbing fixtures, appliances, apparatus and equipment, and to accept or otherwise acquire, and to sell, assign, transfer, endorse, pledge, hypothecate and otherwise dispose of notes, bonds and other evidences of indebtedness and any and all types of security therefor;

     (6) To make loans to persons to whom water, waste water disposal or waste water treatment is or will be supplied by the company for the purpose of, and otherwise to assist such persons in, constructing, maintaining and operating commercial or industrial plants or facilities;

     (7) To construct, purchase, take, receive, lease as lessee, or otherwise acquire, and to own, hold, use, equip, maintain, and operate, and to sell, assign, transfer, convey, exchange, lease as lessor, mortgage, pledge, or otherwise dispose of or encumber, water or waste water provision or collection or treatment systems, plants, lands, buildings, structures, dams, and equipment, and any and all kinds and classes of real or personal property whatsoever, which shall be deemed necessary, convenient or appropriate to accomplish the purpose for which the company is organized;

     (8) To purchase or otherwise acquire, and to own, hold, use and exercise and to sell, assign, transfer, convey, mortgage, pledge, hypothecate, or otherwise dispose of or encumber, franchises, rights, privileges, licenses, rights-of-way and easements;

     (9) To borrow money and otherwise contract indebtedness, and to issue notes, bonds, and other evidences of indebtedness therefor, and to secure the payment thereof by mortgage, pledge, deed of trust, or any other encumbrance upon any or all of its then-owned or after-acquired real or personal property, assets, franchises, revenues or income;

     (10) To construct, maintain and operate water and waste water distribution and collection and treatment plants and lines along, upon, under and across all public thoroughfares, including without limitation, all roads, highways, streets, alleys, bridges and causeways, and upon, under and across all publicly owned lands;

     (11) To exercise the power of eminent domain in the manner provided by the laws of this state for the exercise of that power by corporations constructing or operating electric transmission and distribution lines or systems;

     (12) To conduct its business and exercise any or all of its powers within or without this state;

     (13) To adopt, amend and repeal bylaws; and

     (14) To do and perform any and all other acts and things, and to have and exercise any and all other powers which may be necessary, convenient or appropriate to accomplish the purpose for which the company is organized.

     Section 52. A company may amend its articles of incorporation by complying with the following requirements:

     (1) The proposed amendment shall be first approved by the board of directors and shall then be submitted to a vote of the members at any annual or special meeting thereof, the notice of which shall set forth the proposed amendment. The proposed amendment, with such changes as the members shall choose to make therein, shall be deemed to be approved on the affirmative vote of not less than two-thirds of those members voting thereon at such meeting; and

     (2) (a) Upon such approval by the members, articles of amendment shall be executed and acknowledged in duplicate on behalf of the company by its president or vice president and its corporate seal shall be affixed thereto and attested by its secretary. The articles of amendment shall recite in the caption that they are executed pursuant to sections 49 to 66 of this act and shall state:

     a. The name of the company;

     b. The address of its principal office;

     c. The date of the filing of its articles of incorporation in the office of the secretary of state; and

     d. The amendment to its articles of incorporation;

     (b) The president or vice president executing such articles of amendment shall also make and annex to each copy thereof an affidavit stating that the provisions of sections 49 to 66 of this act were duly complied with;

     (c) Such articles of amendment and affidavit shall be submitted to the secretary of state for filing.

     Section 53. A company may, upon authorization of a majority of the members at any regular or special meeting, change the location of its principal office by filing a certificate of change of principal office, executed and acknowledged in duplicate by its president or vice president under its seal attested by its secretary, in the office of the secretary of state. Such company shall also, within thirty days after the filing of such certificate of change of principal office, file certified copies of its articles of incorporation and all amendments thereto, if the same are not already on file.

     Section 54. 1. Articles of incorporation, amendment, consolidation, merger, conversion, or dissolution, as the case may be, when executed and acknowledged in duplicate and accompanied by such affidavits as may be required by applicable provisions of sections 49 to 66 of this act, shall be presented to the secretary of state for filing in the records of his office.

     2. If the secretary of state shall find that the articles presented conform to the requirements of sections 49 to 66 of this act, he shall file one copy of the articles so presented in the records of his office and upon such filing the incorporation, amendment, consolidation, merger, conversion, or dissolution provided for therein shall be in effect.

     Section 55. The provisions of the securities law of Missouri shall not apply to any note, bond or other evidence of indebtedness issued by any nonprofit sewer company transacting business in this state pursuant to sections 49 to 66 of this act to the United States of America or to any agency or instrumentality thereof, or to any mortgage or deed of trust executed to secure the same. The provisions of such securities law of Missouri shall not apply to the issuance of membership certificates by any nonprofit sewer company.

     Section 56. 1. No person shall become a member of a nonprofit sewer company unless such person shall agree to use water or services furnished by the company when such shall be available through its facilities. The bylaws of a company may provide that any person, including an incorporator, shall cease to be a member thereof if such person shall fail or refuse to use water or services made available by the company or if water or services shall not be made available to such person by the company within a specified time after such person shall have become a member thereof. Membership in the company shall not be transferable, except as provided in the bylaws. The bylaws may prescribe additional qualifications and limitations in respect of membership.

     2. An annual meeting of the members shall be held at such time as shall be provided in the bylaws.

     3. Special meetings of the members may be called by the board of directors, by any three directors, by not less than ten percent of the members or by the president.

     4. Meetings of members shall be held at such place as may be provided in the bylaws. In the absence of any such provisions, all meetings shall be held in the city or town in which the principal office of the company is located.

     5. Except as otherwise provided in sections 49 to 66 of this act, written or printed notice stating the time and place of each meeting of members and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be given to each member, either personally or by mail, not less than ten nor more than twenty-five days before the date of the meeting.

     6. Two percent of the members, present in person or by mail or proxy shall constitute a quorum for the transaction of business at all meetings of the members, unless the bylaws prescribe the presence of a greater percentage of the members for a quorum. If less than a quorum is present at any meeting, a majority of those present in person may adjourn the meeting from time to time without further notice.

     7. Each member shall be entitled to one vote on each matter submitted to a vote at a meeting. Voting shall be in person, but, if the bylaws so provide, may also be by proxy or by mail, or both. If the bylaws provide for voting by proxy or by mail, they shall also prescribe the conditions under which proxy or mail voting shall be exercised.

     Section 57. Notwithstanding any other provision of law, the bylaws may provide that the territory in which a company supplies water and waste water services may be divided into two or more voting districts for the purpose of properly distributing its directors over the area in which its members reside. In such case the bylaws shall prescribe the manner in which such voting districts shall function in the election of directors at annual meetings.

     Section 58. 1. The business and affairs of a company shall be managed by a board of not less than five directors, each of whom shall be a member of the company. The bylaws shall prescribe the number of directors, their qualifications, other than those provided for in sections 49 to 66 of this act, the manner of holding meetings of the board of directors and of the election of successors to directors who shall resign, die, or otherwise be incapable of acting. The bylaws may also provide for the removal of directors from office and for the election of their successors. Without approval of the members, directors shall not receive any salaries for their services as directors. The bylaws may, however, provide that a fixed fee and expenses of attendance, if any, may be allowed to each director for attendance at each meeting of the board of directors.

     2. The directors of a company named in any articles of incorporation, consolidation, merger or conversion, as the case may be, shall hold office until the next following annual meeting of the members or until their successors shall have been elected and qualified.

     3. The bylaws shall provide that the directors shall be divided into three classes, each class to be as nearly equal in number as possible, with the term of office of the directors of the first class to expire at the next succeeding annual meeting and the term of the second class to expire at the second succeeding annual meeting, and the term of the third class to expire at the third succeeding annual meeting. At each annual meeting after such classification a number of directors equal to the number of the class whose term expires at the time of such meeting shall be elected to hold office until the third succeeding annual meeting.

     4. A majority of the board of directors shall constitute a quorum.

     5. The board of directors may exercise all of the powers of a company except such as are conferred upon the members by sections 49 to 66 of this act, or its articles of incorporation or bylaws. Nothing in sections 49 to 66 of this act shall be deemed to prohibit a nonprofit sewer company from contracting with any other person or entity for any services needed by the nonprofit sewer company including, but not limited to, management or operations services.

     Section 59. The officers of a nonprofit sewer company shall consist of a president, vice president, secretary and treasurer, who shall be elected annually. No person shall continue to hold the offices of president or vice president after he shall have ceased to be a director. The offices of secretary and of treasurer may be held by the same person and need not be a member of the board of directors. The board of directors may also elect or appoint such other officers, agents, or employees as it shall deem necessary or advisable and shall prescribe the powers and duties thereof. Any officer may be removed from office and his successor elected in the manner prescribed in the bylaws.

     Section 60. 1. Every nonprofit sewer company constructing, maintaining and operating its water and waste water lines and treatment facilities shall construct, maintain and operate such lines and facilities in conformity with the rules and regulations relating to the manner and methods of construction, maintenance and operation and as to safety of the public with other lines and facilities now or hereafter from time to time prescribed by the department of natural resources for the construction, maintenance and operation of such lines or systems. The jurisdiction, supervision, powers and duties of the department of natural resources shall extend to every such nonprofit sewer company so far as it concerns the construction, maintenance and operation of the physical equipment of such company to the extent of providing for the safety of the public and the elimination or lessening of environmental hazards and of providing for the safety of employees and the general public.

     2. The public service commission shall not have jurisdiction over the construction, maintenance or operation of the water and waste water facilities, service, rates, financing, accounting or management of any nonprofit sewer company.

     Section 61. Revenues of a nonprofit sewer company for any fiscal year in excess of the amount thereof necessary:

     (1) To defray expenses of the company and of the operation and maintenance of its facilities during such fiscal year;

     (2) To pay interest and principal obligations of the company coming due in such fiscal year;

     (3) To finance, or to provide a reserve for the financing of, the construction or acquisition by the company of additional facilities to the extent determined by the board of directors;

     (4) To provide a reasonable reserve for working capital;

     (5) To provide a reserve for the payment of indebtedness of the company maturing more than one year after the date of the incurrence of such indebtedness in an amount not less than the total of the interest and principal payments in respect thereof required to be made during the next following fiscal year; and

     (6) To provide a fund for education in the effective use of services made available by the company;

shall, unless otherwise determined by a vote of the members, be distributed by the company to its members as patronage refunds prorated in accordance with the patronage of the company by the respective members paid for during such fiscal year.

     Section 62. Nothing herein contained shall be construed to prohibit the payment by a company of all or any part of its indebtedness prior to the date when the same shall become due.

     Section 63. 1. A nonprofit sewer company which has not commenced business may dissolve voluntarily by delivering to the secretary of state articles of dissolution, executed and acknowledged in duplicate on behalf of the company by a majority of the incorporators, which shall state:

     (1) The name of the nonprofit sewer company;

     (2) The address of its principal office;

     (3) The date of its incorporation;

     (4) That the company has not commenced business;

     (5) That the amount, if any, actually paid in on account of membership fees, less any part thereof disbursed for necessary expenses, has been returned to those entitled thereto and that all easements shall have been released to the grantors;

     (6) That no debt of the company remains unpaid; and

     (7) That a majority of the incorporators elect that the company be dissolved.

     2. Such articles of dissolution shall be submitted to the secretary of state for filing.

     Section 64. A nonprofit sewer company which has commenced business may dissolve voluntarily and wind up its affairs in the following manner:

     (1) The board of directors shall first recommend that the company be dissolved voluntarily and thereafter the proposition that the company be dissolved shall be submitted to the members of the company at any annual or special meeting, the notice of which shall set forth such proposition. The proposed voluntary dissolution shall be deemed to be approved upon the affirmative vote of not less than a majority of the members;

     (2) Upon such approval, a certificate of election to dissolve, herein designated the "certificate", shall be executed and acknowledged in duplicate on behalf of the company by its president or vice president, and its corporate seal shall be affixed thereto and attested by its secretary. The certificate shall state:

     (a) The name of the nonprofit sewer company;

     (b) The address of its principal office;

     (c) The names and addresses of its directors; and

     (d) The total number of members of the company and the number of members who voted for and against the voluntary dissolution of the company.

The president or vice president executing the certificate shall also make and annex thereto an affidavit stating that the provisions of this subdivision and subdivision (1) of this section were duly complied with. Such certificate and affidavit shall be submitted to the secretary of state for filing;

     (3) Upon the filing of the certificate and affidavit by the secretary of state, the company shall cease to carry on its business except insofar as may be necessary for the winding up thereof, but its corporate existence shall continue until articles of dissolution have been filed by the secretary of state;

     (4) After the filing of the certificate and affidavit by the secretary of state the board of directors shall immediately cause notice of the winding up proceedings to be mailed to each known creditor and claimant and to be published once a week for two successive weeks in a newspaper of general circulation in the county in which the principal office of the company is located;

     (5) The board of directors shall become trustees and have full power to wind up and settle the affairs of the company and shall proceed to collect the debts owing to the company, convey and dispose of its property and assets, pay, satisfy, and discharge its debts, obligations, and liabilities, and do all other things required to liquidate its business and affairs, and after paying or adequately providing for the payment of all its debts, obligations and liabilities, shall distribute the remainder of its property and assets among its members in proportion to the aggregate patronage of each such member during the seven years next preceding the date of such filing of the certificate, or, if the company shall not have been in existence for such period, during the period of its existence; and

     (6) (a) When all debts, liabilities and obligations of the company have been paid and discharged or adequate provision shall have been made therefor, and all of the remaining property and assets of the company shall have been distributed to the members pursuant to the provisions of sections 49 to 66 of this act, the board of directors shall authorize the execution of articles of dissolution which shall thereupon be executed and acknowledged on behalf of the company by its president or vice president, and its corporate seal shall be affixed thereto and attested by its secretary. Such articles of dissolution shall recite in the caption that they are executed pursuant to sections 49 to 66 of this act and shall state:

     a. The name of the nonprofit sewer company;

     b. The address of the principal office of the company;

     c. That the company has heretofore delivered to the secretary of state a certificate of election to dissolve and the date on which the certificate was filed by the secretary of state in the records of his office;

     d. That all debts, obligations and liabilities of the company have been paid and discharged or that adequate provision has been made therefor;

     e. That all the remaining property and assets of the company have been distributed among the members in accordance with the provisions of sections 49 to 66 of this act; and

     f. That there are no actions or suits pending against the company;

     (b) The president or vice president executing the articles of dissolution shall also make and annex thereto an affidavit stating that the provisions of this section were duly complied with;

     (c) Such articles of dissolution and affidavit, accompanied by proof of the publication required in this section, shall be submitted to the secretary of state for filing.

     Section 65. Sections 49 to 66 of this act shall be construed liberally. The enumeration of any object, purpose, power, manner, method or thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or things. To the extent that sections 49 to 66 of this act does not speak to an issue, the provisions applicable to mutual benefit not for profit corporations or limited liability companies, as the nonprofit sewer company may elect in its articles of incorporation, which are not inconsistent with the provisions of sections 49 to 66 of this act shall apply to nonprofit sewer companies.

     Section 66. The private property of the members of a nonprofit sewer company shall be exempt from execution for the debts of the company and no member shall be liable or responsible for any debts of the company.

     Section 67. 1. Any entity authorized by law to engage in the business of offering waste water disposal or treatment services may apply to the department of natural resources to be designated as the sole regional or watershed supplier of such services.

     2. The application to be designated as a regional or watershed supplier shall be on a form as developed by the department and shall at a minimum provide the following information:

     (1) The region or watershed for which the applicant intends to provide service defined on a meets and bounds basis;

     (2) The documents such as contracts, articles of incorporation, limited liability company forms or municipal ordinances which define the applicant's existence, ownership and management;

     (3) Information as to the applicant's financial assets including balance sheet income statements for the previous five years or, if less than five years, income statements for the applicant's entire history;

     (4) A description of the facilities owned or operated by the applicant;

     (5) A business plan describing how and why the proposed region or watershed was selected and the applicant's plans for providing collection and treatment services in the requested area;

     (6) A commitment by the applicant to provide area coverage for the entire area covered by the application and the applicant's plan for how to provide such services;

     (7) A description of the services to be provided by the applicant to the region or watershed and the prices to be charged by the applicant;

     (8) A description of the standards that the applicant will require of other entities that will wish to connect with the applicant's collection and treatment systems.

     3. Once a regional or watershed provider of waste water collection and treatment is approved by the department, no other person or entity may construct or operate collection or treatment facilities within the designated region or watershed except pursuant to the approved regional or watershed plan.

     4. The department of natural resources shall give preference to regional or watershed providers in all of its licensing, permitting, and administration of loan and grant funds functions.

     5. In evaluating among competing applicants to be a regional or watershed provider, the department shall give preference to those providers most likely to provide a stable, long-term solution without regard to the type of entity the applicant may be. Joint applications from existing providers of waste water collection and treatment services within the region or watershed shall be given preference.

     6. Pricing of services by regional or watershed providers shall be set by such provider in the same manner the provider sets all other rates and charges and shall be on a nondiscriminatory basis with each user bearing its fair share of the costs of providing service to that user. Governmental entities shall charge no more for the same or similar services provided to users outside their boundaries than the entity charges to its citizens. Nonprofit sewer companies shall not charge nonmembers a higher rate than members for the same or similar services. Private sewer companies shall charge such rates as are approved pursuant to applicable law.".

HOUSE AMENDMENT NO. 1 TO

HOUSE AMENDMENT NO. 23

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 10, by deleting the word "seventeen" and inserting in lieu thereof the word "thirty-six"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the word "seventeen" and inserting in lieu thereof the word "thirty-six"; and

     Further amend said bill, Page 2, Section A, Line 17, by deleting "and 48" and inserting in lieu thereof the following: ", 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66 and 67"; and

     Further amend said bill, Page 124, Section 48, Line 1, by inserting after all of said line the following:

     "Section 49. 1. Nonprofit, membership corporations may be organized under sections 49 to 66 of this act for the purpose of supplying water and waste water disposal and treatment services within the state of Missouri. Corporations which become subject to sections 49 to 66 of this act in the manner herein provided are herein referred to as "nonprofit sewer companies". Five or more persons may organize a nonprofit sewer company pursuant to sections 49 to 66 of this act.

     2. The articles of incorporation of a nonprofit sewer company shall recite in the caption that they are executed pursuant to sections 49 to 66 of this act, shall be signed and acknowledged in duplicate by at least five of the incorporators and shall state:

     (1) The name of the company;

     (2) The address of its principal office;

     (3) The names and addresses of the incorporators;

     (4) The number of years the company is to continue, which may be any number including perpetuity;

     (5) The names and addresses of the persons who shall constitute its first board of directors;

     (6) Whether the company chooses to operate under the provisions of chapter 347, RSMo, or chapter 355, RSMo; and

     (7) Any provisions not inconsistent with sections 49 to 66 of this act deemed necessary or advisable for the conduct of its business and affair. Such articles of incorporation shall be submitted to the secretary of state for filing.

     Section 50. Any corporation organized under the laws of this state for the purpose, among others, of supplying water, waste water disposal, or waste water treatment may be converted into a nonprofit sewer company and become subject to sections 49 to 66 of this act with the same effect as if originally organized under sections 49 to 66 of this act by complying with the following requirements:

     (1) The proposition for the conversion of such corporation into a nonprofit sewer company and proposed articles of conversion to give effect thereto shall be first approved by the board of trustees or the board of directors, as the case may be, of such corporation. The proposed articles of conversion shall recite in the caption that they are executed pursuant to sections 49 to 66 of this act and shall state:

     (a) The name of the corporation prior to its conversion into a nonprofit sewer company;

     (b) The address of the principal office of such corporation;

     (c) The date of the filing of the articles of incorporation of such corporation in the office of the secretary of state;

     (d) The statute or statutes under which such corporation was organized;

     (e) The name assumed by such corporation;

     (f) A statement that such corporation elects to become a nonprofit, membership corporation subject to sections 49 to 66 of this act;

     (g) The manner and basis of converting either memberships in or shares of stock of such corporation into memberships therein after completion of the conversion; and

     (h) Any provisions not inconsistent with sections 49 to 66 of this act deemed necessary or advisable for the conduct of the business and affairs of such corporation.

     (2) The proposition for the conversion of such corporation into a nonprofit sewer company and the proposed articles of conversion approved by the board of trustees or board of directors, as the case may be, of such corporation shall then be submitted to a vote of the members or stockholders, as the case may be, of such corporation at any duly held annual or special meeting thereof, the notice of which shall set forth full particulars concerning the proposed conversion. The proposition for the conversion of such corporation into a nonprofit sewer company and the proposed articles of conversion, with such amendments thereto as the members or stockholders of such corporation shall choose to make, shall be deemed to be approved upon the affirmative vote of not less than a majority of the members of such corporation, or, if such corporation is a stock corporation, upon the affirmative vote of the holders of not less than a majority of the capital stock of such corporation.

     (3) Upon such approval by the members or stockholders of such corporation, articles of conversion in the form approved by such members or stockholders shall be executed and acknowledged in duplicate on behalf of such corporation by its president or vice president and its corporate seal shall be affixed thereto and attested by its secretary. The president or vice president executing such articles of conversion on behalf of such corporation shall also make and annex to each copy thereof an affidavit stating that the provisions of sections 49 to 66 of this act with respect to the approval of its trustees or directors and its members or stockholders, of the proposition for the conversion of such corporation into a nonprofit sewer company and such articles of conversion were duly complied with. Such articles of conversion and affidavit shall be submitted to the secretary of state for filing as provided in sections 49 to 66 of this act. The term "articles of incorporation" as used in sections 49 to 66 of this act shall be deemed to include the articles of conversion of a converted corporation.

     Section 51. A nonprofit sewer company shall have power:

     (1) To sue and be sued, in its corporate name;

     (2) To have succession by its corporate name for the period stated in its articles of incorporation or, if no period is stated in its articles of incorporation, to have such succession perpetually;

     (3) To adopt a corporate seal and alter the same at pleasure;

     (4) To provide water, waste water disposal and waste water treatment services to its members, to governmental agencies and political subdivisions, and to other persons;

     (5) To make loans to persons to whom water, waste water disposal or waste water treatment is or will be supplied by the company for the purpose of, and otherwise to assist such persons in, installing therein plumbing fixtures, appliances, apparatus and equipment of any and all kinds and character, and in connection therewith, to purchase, acquire, lease, sell, distribute, install and repair such plumbing fixtures, appliances, apparatus and equipment, and to accept or otherwise acquire, and to sell, assign, transfer, endorse, pledge, hypothecate and otherwise dispose of notes, bonds and other evidences of indebtedness and any and all types of security therefor;

     (6) To make loans to persons to whom water, waste water disposal or waste water treatment is or will be supplied by the company for the purpose of, and otherwise to assist such persons in, constructing, maintaining and operating commercial or industrial plants or facilities;

     (7) To construct, purchase, take, receive, lease as lessee, or otherwise acquire, and to own, hold, use, equip, maintain, and operate, and to sell, assign, transfer, convey, exchange, lease as lessor, mortgage, pledge, or otherwise dispose of or encumber, water or waste water provision or collection or treatment systems, plants, lands, buildings, structures, dams, and equipment, and any and all kinds and classes of real or personal property whatsoever, which shall be deemed necessary, convenient or appropriate to accomplish the purpose for which the company is organized;

     (8) To purchase or otherwise acquire, and to own, hold, use and exercise and to sell, assign, transfer, convey, mortgage, pledge, hypothecate, or otherwise dispose of or encumber, franchises, rights, privileges, licenses, rights-of-way and easements;

     (9) To borrow money and otherwise contract indebtedness, and to issue notes, bonds, and other evidences of indebtedness therefor, and to secure the payment thereof by mortgage, pledge, deed of trust, or any other encumbrance upon any or all of its then-owned or after-acquired real or personal property, assets, franchises, revenues or income;

     (10) To construct, maintain and operate water and waste water distribution and collection and treatment plants and lines along, upon, under and across all public thoroughfares, including without limitation, all roads, highways, streets, alleys, bridges and causeways, and upon, under and across all publicly owned lands;

     (11) To exercise the power of eminent domain in the manner provided by the laws of this state for the exercise of that power by corporations constructing or operating electric transmission and distribution lines or systems;

     (12) To conduct its business and exercise any or all of its powers within or without this state;

     (13) To adopt, amend and repeal bylaws; and

     (14) To do and perform any and all other acts and things, and to have and exercise any and all other powers which may be necessary, convenient or appropriate to accomplish the purpose for which the company is organized.

     Section 52. A company may amend its articles of incorporation by complying with the following requirements:

     (1) The proposed amendment shall be first approved by the board of directors and shall then be submitted to a vote of the members at any annual or special meeting thereof, the notice of which shall set forth the proposed amendment. The proposed amendment, with such changes as the members shall choose to make therein, shall be deemed to be approved on the affirmative vote of not less than two-thirds of those members voting thereon at such meeting; and

     (2) (a) Upon such approval by the members, articles of amendment shall be executed and acknowledged in duplicate on behalf of the company by its president or vice president and its corporate seal shall be affixed thereto and attested by its secretary. The articles of amendment shall recite in the caption that they are executed pursuant to sections 49 to 66 of this act and shall state:

     a. The name of the company;

     b. The address of its principal office;

     c. The date of the filing of its articles of incorporation in the office of the secretary of state; and

     d. The amendment to its articles of incorporation;

     (b) The president or vice president executing such articles of amendment shall also make and annex to each copy thereof an affidavit stating that the provisions of sections 49 to 66 of this act were duly complied with;

     (c) Such articles of amendment and affidavit shall be submitted to the secretary of state for filing.

     Section 53. A company may, upon authorization of a majority of the members at any regular or special meeting, change the location of its principal office by filing a certificate of change of principal office, executed and acknowledged in duplicate by its president or vice president under its seal attested by its secretary, in the office of the secretary of state. Such company shall also, within thirty days after the filing of such certificate of change of principal office, file certified copies of its articles of incorporation and all amendments thereto, if the same are not already on file.

     Section 54. 1. Articles of incorporation, amendment, consolidation, merger, conversion, or dissolution, as the case may be, when executed and acknowledged in duplicate and accompanied by such affidavits as may be required by applicable provisions of sections 49 to 66 of this act, shall be presented to the secretary of state for filing in the records of his office.

     2. If the secretary of state shall find that the articles presented conform to the requirements of sections 49 to 66 of this act, he shall file one copy of the articles so presented in the records of his office and upon such filing the incorporation, amendment, consolidation, merger, conversion, or dissolution provided for therein shall be in effect.

     Section 55. The provisions of the securities law of Missouri shall not apply to any note, bond or other evidence of indebtedness issued by any nonprofit sewer company transacting business in this state pursuant to sections 49 to 66 of this act to the United States of America or to any agency or instrumentality thereof, or to any mortgage or deed of trust executed to secure the same. The provisions of such securities law of Missouri shall not apply to the issuance of membership certificates by any nonprofit sewer company.

     Section 56. 1. No person shall become a member of a nonprofit sewer company unless such person shall agree to use water or services furnished by the company when such shall be available through its facilities. The bylaws of a company may provide that any person, including an incorporator, shall cease to be a member thereof if such person shall fail or refuse to use water or services made available by the company or if water or services shall not be made available to such person by the company within a specified time after such person shall have become a member thereof. Membership in the company shall not be transferable, except as provided in the bylaws. The bylaws may prescribe additional qualifications and limitations in respect of membership.

     2. An annual meeting of the members shall be held at such time as shall be provided in the bylaws.

     3. Special meetings of the members may be called by the board of directors, by any three directors, by not less than ten percent of the members or by the president.

     4. Meetings of members shall be held at such place as may be provided in the bylaws. In the absence of any such provisions, all meetings shall be held in the city or town in which the principal office of the company is located.

     5. Except as otherwise provided in sections 49 to 66 of this act, written or printed notice stating the time and place of each meeting of members and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be given to each member, either personally or by mail, not less than ten nor more than twenty-five days before the date of the meeting.

     6. Two percent of the members, present in person or by mail or proxy shall constitute a quorum for the transaction of business at all meetings of the members, unless the bylaws prescribe the presence of a greater percentage of the members for a quorum. If less than a quorum is present at any meeting, a majority of those present in person may adjourn the meeting from time to time without further notice.

     7. Each member shall be entitled to one vote on each matter submitted to a vote at a meeting. Voting shall be in person, but, if the bylaws so provide, may also be by proxy or by mail, or both. If the bylaws provide for voting by proxy or by mail, they shall also prescribe the conditions under which proxy or mail voting shall be exercised.

     Section 57. Notwithstanding any other provision of law, the bylaws may provide that the territory in which a company supplies water and waste water services may be divided into two or more voting districts for the purpose of properly distributing its directors over the area in which its members reside. In such case the bylaws shall prescribe the manner in which such voting districts shall function in the election of directors at annual meetings.

     Section 58. 1. The business and affairs of a company shall be managed by a board of not less than five directors, each of whom shall be a member of the company. The bylaws shall prescribe the number of directors, their qualifications, other than those provided for in sections 49 to 66 of this act, the manner of holding meetings of the board of directors and of the election of successors to directors who shall resign, die, or otherwise be incapable of acting. The bylaws may also provide for the removal of directors from office and for the election of their successors. Without approval of the members, directors shall not receive any salaries for their services as directors. The bylaws may, however, provide that a fixed fee and expenses of attendance, if any, may be allowed to each director for attendance at each meeting of the board of directors.

     2. The directors of a company named in any articles of incorporation, consolidation, merger or conversion, as the case may be, shall hold office until the next following annual meeting of the members or until their successors shall have been elected and qualified.

     3. The bylaws shall provide that the directors shall be divided into three classes, each class to be as nearly equal in number as possible, with the term of office of the directors of the first class to expire at the next succeeding annual meeting and the term of the second class to expire at the second succeeding annual meeting, and the term of the third class to expire at the third succeeding annual meeting. At each annual meeting after such classification a number of directors equal to the number of the class whose term expires at the time of such meeting shall be elected to hold office until the third succeeding annual meeting.

     4. A majority of the board of directors shall constitute a quorum.

     5. The board of directors may exercise all of the powers of a company except such as are conferred upon the members by sections 49 to 66 of this act, or its articles of incorporation or bylaws. Nothing in sections 49 to 66 of this act shall be deemed to prohibit a nonprofit sewer company from contracting with any other person or entity for any services needed by the nonprofit sewer company including, but not limited to, management or operations services.

     Section 59. The officers of a nonprofit sewer company shall consist of a president, vice president, secretary and treasurer, who shall be elected annually. No person shall continue to hold the offices of president or vice president after he shall have ceased to be a director. The offices of secretary and of treasurer may be held by the same person and need not be a member of the board of directors. The board of directors may also elect or appoint such other officers, agents, or employees as it shall deem necessary or advisable and shall prescribe the powers and duties thereof. Any officer may be removed from office and his successor elected in the manner prescribed in the bylaws.

     Section 60. 1. Every nonprofit sewer company constructing, maintaining and operating its water and waste water lines and treatment facilities shall construct, maintain and operate such lines and facilities in conformity with the rules and regulations relating to the manner and methods of construction, maintenance and operation and as to safety of the public with other lines and facilities now or hereafter from time to time prescribed by the department of natural resources for the construction, maintenance and operation of such lines or systems. The jurisdiction, supervision, powers and duties of the department of natural resources shall extend to every such nonprofit sewer company so far as it concerns the construction, maintenance and operation of the physical equipment of such company to the extent of providing for the safety of the public and the elimination or lessening of environmental hazards and of providing for the safety of employees and the general public.

     2. The public service commission shall not have jurisdiction over the construction, maintenance or operation of the water and waste water facilities, service, rates, financing, accounting or management of any nonprofit sewer company.

     Section 61. Revenues of a nonprofit sewer company for any fiscal year in excess of the amount thereof necessary:

     (1) To defray expenses of the company and of the operation and maintenance of its facilities during such fiscal year;

     (2) To pay interest and principal obligations of the company coming due in such fiscal year;

     (3) To finance, or to provide a reserve for the financing of, the construction or acquisition by the company of additional facilities to the extent determined by the board of directors;

     (4) To provide a reasonable reserve for working capital;

     (5) To provide a reserve for the payment of indebtedness of the company maturing more than one year after the date of the incurrence of such indebtedness in an amount not less than the total of the interest and principal payments in respect thereof required to be made during the next following fiscal year; and

     (6) To provide a fund for education in the effective use of services made available by the company;

shall, unless otherwise determined by a vote of the members, be distributed by the company to its members as patronage refunds prorated in accordance with the patronage of the company by the respective members paid for during such fiscal year.

     Section 62. Nothing herein contained shall be construed to prohibit the payment by a company of all or any part of its indebtedness prior to the date when the same shall become due.

     Section 63. 1. A nonprofit sewer company which has not commenced business may dissolve voluntarily by delivering to the secretary of state articles of dissolution, executed and acknowledged in duplicate on behalf of the company by a majority of the incorporators, which shall state:

     (1) The name of the nonprofit sewer company;

     (2) The address of its principal office;

     (3) The date of its incorporation;

     (4) That the company has not commenced business;

     (5) That the amount, if any, actually paid in on account of membership fees, less any part thereof disbursed for necessary expenses, has been returned to those entitled thereto and that all easements shall have been released to the grantors;

     (6) That no debt of the company remains unpaid; and

     (7) That a majority of the incorporators elect that the company be dissolved.

     2. Such articles of dissolution shall be submitted to the secretary of state for filing.

     Section 64. A nonprofit sewer company which has commenced business may dissolve voluntarily and wind up its affairs in the following manner:

     (1) The board of directors shall first recommend that the company be dissolved voluntarily and thereafter the proposition that the company be dissolved shall be submitted to the members of the company at any annual or special meeting, the notice of which shall set forth such proposition. The proposed voluntary dissolution shall be deemed to be approved upon the affirmative vote of not less than a majority of the members;

     (2) Upon such approval, a certificate of election to dissolve, herein designated the "certificate", shall be executed and acknowledged in duplicate on behalf of the company by its president or vice president, and its corporate seal shall be affixed thereto and attested by its secretary. The certificate shall state:

     (a) The name of the nonprofit sewer company;

     (b) The address of its principal office;

     (c) The names and addresses of its directors; and

     (d) The total number of members of the company and the number of members who voted for and against the voluntary dissolution of the company.

The president or vice president executing the certificate shall also make and annex thereto an affidavit stating that the provisions of this subdivision and subdivision (1) of this section were duly complied with. Such certificate and affidavit shall be submitted to the secretary of state for filing;

     (3) Upon the filing of the certificate and affidavit by the secretary of state, the company shall cease to carry on its business except insofar as may be necessary for the winding up thereof, but its corporate existence shall continue until articles of dissolution have been filed by the secretary of state;

     (4) After the filing of the certificate and affidavit by the secretary of state the board of directors shall immediately cause notice of the winding up proceedings to be mailed to each known creditor and claimant and to be published once a week for two successive weeks in a newspaper of general circulation in the county in which the principal office of the company is located;

     (5) The board of directors shall become trustees and have full power to wind up and settle the affairs of the company and shall proceed to collect the debts owing to the company, convey and dispose of its property and assets, pay, satisfy, and discharge its debts, obligations, and liabilities, and do all other things required to liquidate its business and affairs, and after paying or adequately providing for the payment of all its debts, obligations and liabilities, shall distribute the remainder of its property and assets among its members in proportion to the aggregate patronage of each such member during the seven years next preceding the date of such filing of the certificate, or, if the company shall not have been in existence for such period, during the period of its existence; and

     (6) (a) When all debts, liabilities and obligations of the company have been paid and discharged or adequate provision shall have been made therefor, and all of the remaining property and assets of the company shall have been distributed to the members pursuant to the provisions of sections 49 to 66 of this act, the board of directors shall authorize the execution of articles of dissolution which shall thereupon be executed and acknowledged on behalf of the company by its president or vice president, and its corporate seal shall be affixed thereto and attested by its secretary. Such articles of dissolution shall recite in the caption that they are executed pursuant to sections 49 to 66 of this act and shall state:

     a. The name of the nonprofit sewer company;

     b. The address of the principal office of the company;

     c. That the company has heretofore delivered to the secretary of state a certificate of election to dissolve and the date on which the certificate was filed by the secretary of state in the records of his office;

     d. That all debts, obligations and liabilities of the company have been paid and discharged or that adequate provision has been made therefor;

     e. That all the remaining property and assets of the company have been distributed among the members in accordance with the provisions of sections 49 to 66 of this act; and

     f. That there are no actions or suits pending against the company;

     (b) The president or vice president executing the articles of dissolution shall also make and annex thereto an affidavit stating that the provisions of this section were duly complied with;

     (c) Such articles of dissolution and affidavit, accompanied by proof of the publication required in this section, shall be submitted to the secretary of state for filing.

     Section 65. Sections 49 to 66 of this act shall be construed liberally. The enumeration of any object, purpose, power, manner, method or thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or things. To the extent that sections 49 to 66 of this act does not speak to an issue, the provisions applicable to mutual benefit not for profit corporations or limited liability companies, as the nonprofit sewer company may elect in its articles of incorporation, which are not inconsistent with the provisions of sections 49 to 66 of this act shall apply to nonprofit sewer companies.

     Section 66. The private property of the members of a nonprofit sewer company shall be exempt from execution for the debts of the company and no member shall be liable or responsible for any debts of the company.

     Section 67. 1. Any entity authorized by law to engage in the business of offering waste water disposal or treatment services may apply to the department of natural resources to be designated as the sole regional or watershed supplier of such services.

     2. The application to be designated as a regional or watershed supplier shall be on a form as developed by the department and shall at a minimum provide the following information:

     (1) The region or watershed for which the applicant intends to provide service defined on a meets and bounds basis;

     (2) The documents such as contracts, articles of incorporation, limited liability company forms or municipal ordinances which define the applicant's existence, ownership and management;

     (3) Information as to the applicant's financial assets including balance sheet income statements for the previous five years or, if less than five years, income statements for the applicant's entire history;

     (4) A description of the facilities owned or operated by the applicant;

     (5) A business plan describing how and why the proposed region or watershed was selected and the applicant's plans for providing collection and treatment services in the requested area;

     (6) A commitment by the applicant to provide area coverage for the entire area covered by the application and the applicant's plan for how to provide such services;

     (7) A description of the services to be provided by the applicant to the region or watershed and the prices to be charged by the applicant;

     (8) A description of the standards that the applicant will require of other entities that will wish to connect with the applicant's collection and treatment systems.

     3. Once a regional or watershed provider of waste water collection and treatment is approved by the department, no other person or entity may construct or operate collection or treatment facilities within the designated region or watershed except pursuant to the approved regional or watershed plan.

     4. The department of natural resources shall give preference to regional or watershed providers in all of its licensing, permitting, and administration of loan and grant funds functions.

     5. In evaluating among competing applicants to be a regional or watershed provider, the department shall give preference to those providers most likely to provide a stable, long-term solution without regard to the type of entity the applicant may be. Joint applications from existing providers of waste water collection and treatment services within the region or watershed shall be given preference.

     6. Pricing of services by regional or watershed providers shall be set by such provider in the same manner the provider sets all other rates and charges and shall be on a nondiscriminatory basis with each user bearing its fair share of the costs of providing service to that user. Governmental entities shall charge no more for the same or similar services provided to users outside their boundaries than the entity charges to its citizens. Private sewer companies shall charge such rates as are approved pursuant to applicable law.".

HOUSE AMENDMENT NO. 24

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 78, Section 305.230, Lines 64 through 70, by deleting all of said lines; and

     Further amend said bill, Page 78, Section 305.230, Line 71, by deleting the figure "7." and inserting in lieu thereof the figure "6.".

HOUSE AMENDMENT NO. 25

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 21, Section 99.845, Lines 1 through 116, by deleting all of said lines and inserting in lieu thereof the following:

     "99.845. 1. A municipality, either at the time a redevelopment project is approved or, in the event a municipality has undertaken acts establishing a redevelopment plan and redevelopment project and has designated a redevelopment area after the passage and approval of sections 99.800 to 99.865 but prior to August 13, 1982, which acts are in conformance with the procedures of sections 99.800 to 99.865, may adopt tax increment allocation financing by passing an ordinance providing that after the total equalized assessed valuation of the taxable real property in a redevelopment project exceeds the certified total initial equalized assessed valuation of the taxable real property in the redevelopment project, the ad valorem taxes, and payments in lieu of taxes, if any, arising from the levies upon taxable real property in such redevelopment project by taxing districts and tax rates determined in the manner provided in subsection 2 of section 99.855 each year after the effective date of the ordinance until redevelopment costs have been paid shall be divided as follows:

     (1) That portion of taxes, penalties and interest levied upon each taxable lot, block, tract, or parcel of real property which is attributable to the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property in the area selected for the redevelopment project shall be allocated to and, when collected, shall be paid by the county collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing;

     (2) Payments in lieu of taxes, and any applicable penalty and interest, attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the area selected for the redevelopment project over and above the initial equalized assessed value of each such unit of property in the area selected for the redevelopment project shall be allocated to and, when collected, shall be paid to the municipal treasurer who shall deposit such payment in lieu of taxes into a special fund called the "Special Allocation Fund" of the municipality for the purpose of paying redevelopment costs and obligations incurred in the payment thereof. Payments in lieu of taxes which are due and owing shall constitute a lien against the real estate of the redevelopment project from which they are derived and shall be collected in the same manner as the real property tax, including the assessment of penalties and interest where applicable. The municipality may, in the ordinance, pledge the funds in the special allocation fund for the payment of such costs and obligations and provide for the collection of payments in lieu of taxes, the lien of which may be foreclosed in the same manner as a special assessment lien as provided in section 88.861, RSMo. No part of the current equalized assessed valuation of each lot, block, tract, or parcel of property in the area selected for the redevelopment project attributable to any increase above the total initial equalized assessed value of such properties shall be used in calculating the general state school aid formula provided for in section 163.031, RSMo, until such time as all redevelopment costs have been paid as provided for in this section and section 99.850[.];

     (3) For purposes of this section, "levies upon real property in such redevelopment project by taxing districts" shall not include the blind pension fund tax levied by article X, section 38(b) of the Missouri Constitution.

     2. In addition to the payments in lieu of taxes described in subdivision (2) of subsection 1 of this section, for redevelopment plans and projects adopted or redevelopment projects approved by ordinance after July 12, 1990, and prior to August 31, 1991, fifty percent of the total additional revenue from taxes, penalty and interest imposed by the municipality, or other taxing districts, which are generated by economic activities within the area of the redevelopment project over the amount of such taxes generated by economic activities within the area of the redevelopment project in the calendar year prior to the adoption of the redevelopment project by ordinance, while tax increment financing remains in effect, but excluding sales and use taxes on motor vehicles, trailers, boats and outboard motors, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, taxes levied pursuant to section 70.500, RSMo, licenses, fees or special assessments other than payments in lieu of taxes and any penalty and interest thereon, shall be allocated to, and paid by the collecting officer to the treasurer or other designated financial officer of the municipality, who shall deposit such funds in a separate segregated account within the special allocation fund. Any provision of an agreement, contract or covenant entered into prior to July 12, 1990, between a municipality and any other political subdivision which provides for an appropriation of other municipal revenues to the special allocation fund shall be and remain enforceable.

     3. In addition to the payments in lieu of taxes described in subdivision (2) of subsection 1 of this section, for redevelopment plans and projects adopted or redevelopment projects approved by ordinance after August 31, 1991, fifty percent of the total additional revenue from taxes, penalty and interest which are imposed by the municipality or other taxing districts, and which are generated by economic activities within the area of the redevelopment project over the amount of such taxes generated by economic activities within the area of the redevelopment project in the calendar year prior to the adoption of the redevelopment project by ordinance, while tax increment financing remains in effect, but excluding personal property taxes, sales and use taxes on motor vehicles, trailers, boats and outboard motors, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, taxes levied pursuant to section 70.500, RSMo, licenses, and fees or special assessments [and personal property taxes], other than payments in lieu of taxes and penalty and interest thereon, shall be allocated to, and paid by the collecting officer to the treasurer or other designated financial officer of the municipality, who shall deposit such funds in a separate segregated account within the special allocation fund.

     4. Beginning January 1, 1998, for redevelopment plans and projects adopted or redevelopment projects approved by ordinance after August 31, 1991, in addition to the payments in lieu of taxes and economic activity taxes described in subsections 1, 2 and 3 of this section, up to fifty percent of new state revenues as defined in this section, reported by businesses within the redevelopment area as identified by the municipality over and above the amount of such taxes reported by businesses within the redevelopment area as identified by the municipality in the calendar year prior to the approval of the redevelopment project by ordinance, while tax increment financing remains in effect, shall be rebated to, and paid by the director of the department of revenue according to rules promulgated by the department, pursuant to section 536.024, RSMo, to the treasurer or other designated financial officer of the municipality who shall deposit such funds in a separate segregated account within the special allocation fund established pursuant to section 99.805. For all redevelopment plans or projects adopted after the effective date of this act, new revenues from state taxes shall not be rebated or deposited into the special allocation fund unless the municipality's redevelopment plan ensures that one hundred percent of payments in lieu of taxes and fifty percent of economic activity taxes generated by the project shall be used for eligible redevelopment project costs for twenty-three years following the adoption of the ordinance approving the redevelopment project. This account shall be separate from the account into which payments in lieu of taxes are deposited, and separate from the account into which economic activity taxes are deposited.

     5. Subsection 4 of this section shall apply only to blighted areas located within state enterprise zones or federal empowerment zones which, at the time of the approval of the project by ordinance:

     (1) Contained one or more buildings at least fifty years old; and

     (2) Suffered from generally declining population or property taxes over the twenty-year period immediately preceding their designation as a project area by ordinance; or

     (3) Was an historic hotel located in a county of the first classification without a charter form of government with a population according to the most recent federal decennial census in excess of one hundred fifty thousand and containing a portion of a city with a population according to the most recent federal decennial census in excess of three hundred fifty thousand.

     6. The rebate of fifty percent of new state revenues authorized pursuant to subsection 4 of this section shall not be rebated by the department of revenue to a municipality until all of the following conditions have been satisfied:

     (1) The department of economic development and the commissioner of administration have approved an application made to the department of economic development by the municipality for the rebate of new state revenues. For new projects approved after August 28, 1997, such application must be made at least one month prior to the adoption by the municipality of an ordinance approving a redevelopment project;

     (2) The affidavit required by section 99.810 shall specify that the redevelopment area would not be reasonably anticipated to be developed without the rebate of the new state revenues. Such affidavit shall be signed by the developer or developers attesting that the provisions of subdivision (1) of section 99.810 have been met; and

     (3) The cost-benefit analysis required by section 99.810 includes a fiscal impact study upon the state of Missouri.

     7. In addition to those areas authorized in subsection 5 of this section, the rebate authorized pursuant to subsection 4 of this section shall also be available in a federally approved levee district, where construction of a levee begins after the effective date of this act, and which are contained within a county of the first classification without a charter form of government which contains part of a city in excess of three hundred fifty thousand residents.

     8. There is hereby established within the state treasury a special fund to be known as the "Missouri Tax Increment Financing Fund", to be administered by the department of revenue. The department shall annually credit to the Missouri tax increment financing fund the tax authorized under the provisions of subsection 4 of this section. The fund shall also consist of any gifts, contributions, grants, or bequests received from federal, private, or other sources. Moneys in the Missouri tax increment financing fund shall be disbursed pursuant to appropriations by the general assembly. The department shall disburse such appropriated funds in a timely manner into the separate, segregated account as authorized by subsection 4 of this section. All moneys remaining in the Missouri tax increment financing fund at the end of the fiscal year shall not lapse to the general revenue fund, as provided in section 33.080, RSMo, but shall remain in the Missouri tax increment financing fund.".

HOUSE AMENDMENT NO. 1 TO

HOUSE AMENDMENT NO. 25

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 9, Section 99.845, Line 14, by deleting all of lines 14 and 15 and inserting in lieu thereof the following:

"government with a population between fifty thousand and one hundred thousand inhabitants which contains all or part of a city with a population in excess of four hundred thousand or more inhabitants.".

HOUSE AMENDMENT NO. 2 TO

HOUSE AMENDMENT NO. 25

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 22, Section 99.845, Line 37, by inserting immediately after said line the following:

     "(4) Beginning January 1, 1998, for purposes of this section "levies upon real property in such redevelopment project by taxing districts" shall not include the merchants and manufacturer's inventory replacement tax levied by Article X, section 6.2 of the Missouri Constitution.".

HOUSE AMENDMENT NO. 26

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Pages 47-50, Section 143.183, Line 1, by deleting all of said section.

HOUSE AMENDMENT NO. 28

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 42, Section 135.400(10), Line 42, by inserting after the word "activity" the following: "; or a cooperative marketing association organized pursuant to Chapter 274, RSMo, which is engaged in the business of producing and marketing fuels derived from agricultural commodities and which will operate a facility which will create jobs.".

HOUSE SUBSTITUTE AMENDMENT NO. 1

FOR HOUSE AMENDMENT NO. 30

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 120, Section 38, Line 3, by inserting after the word "utility" the following: "serving any portion of a city with a population of at least 400,000"; and

     Further amend said section, by adding at the end of line 9, the following: "Any such program may cover customers of the utility who reside outside such city.".

HOUSE AMENDMENT NO. 31

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 1, In the Title, Line 10, by deleting the word "seventeen" and inserting in lieu thereof the word "eighteen"; and

     Further amend said bill, Page 2, Section A, Line 8, by deleting the word "seventeen" and inserting in lieu thereof the word "eighteen"; and

     Further amend said bill, Page 2, Section A, Line 17, by deleting the word and number "and 48" and inserting in lieu thereof the following: ", 48 and 49"; and

     Further amend said bill, Page 124, Section 48, Line 1, by inserting after all of said line the following:

     "Section 48. 1. The department of economic development, in conjunction with the public service commission, shall study the feasibility and the potential effect of allowing regulated utilities to engage in the sale or maintenance of energy consuming equipment or appliances, and shall report their findings to the general assembly by December 31, 1997. The study shall include, but not be limited to, the economic effect on small independent businesses. ".

HOUSE AMENDMENT NO. 32

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Section 290.502, Page 76, Lines 4-7, by deleting all of said lines, and inserting in lieu thereof the following: "jobs in interstate commerce."; and

     Amend title and enacting clause accordingly.

HOUSE AMENDMENT NO. 34

     Amend House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 165, Page 124, Section 48, Line 9, by inserting immediately after said line all of the following new sections:

     Section 49. 1. Sections 49 to 52 of this act shall be known as the "Workfare Renovation Project". Subject to participation by qualifying cities, the Missouri housing development commission shall establish a two-year pilot project in each of the two cities defined in section 50 of this act which shall provide for the renovation of inner city property for subsequent purchase pursuant to the provisions of sections 45 to 48 of this act.

     Section 50. As used in sections 45 to 48 of this act, the following terms mean:

     (1) "Agency", the participating city's administering agency of the workfare renovation project;

     (2) "City", any city not within a county or any city with at least three hundred fifty thousand inhabitants which is located in more than one county;

     (3) "Commission", the state housing development commission authorized pursuant to sections 215.010 to 215.250, RSMo;

     (4) "Federal poverty level", the first poverty income guidelines published in the calendar year by the United States Department of Health and Human Services;

     (5) "Low income", a household income which does not exceed two hundred percent of the federal poverty level;

     (6) "Project", the renovation of one or more inner city properties which have been determined to be of substandard quality or condition and the subsequent sale of such property following renovation;

     (7) "Renovate" or "renovation", the reconstruction, remodeling, repairing, weatherizing, installation of energy conservation measures or devices, and similar work necessary to make an inner city property safe, sanitary and decent, and make such property meet the minimum building code requirements and occupancy requirements of a city, as the term city is defined in this section.

     Section 51. 1. The workfare renovation project shall have the following goals:

     (1) To assist low income individuals in learning a trade by providing them with an opportunity to participate in the renovation of inner city property; and

     (2) To create tax producing property for the participating cities out of existing inner city property.

     2. The governing body of any city defined in section 46 of this act, by enacting the appropriate ordinances, may participate in the workfare renovation project by donating existing inner city property to the project, submitting a plan for renovation in the city to the commission and establishing an agency to administer the project in such city pursuant to any authority delegated to such agency by the commission.

     3. The commission may:

     (1) Receive, hold and convey title to real estate on the workfare renovation project carried out by the participating city and receive and use for the purposes described in sections 45 to 48 of this act any grants or loans made by the commission pursuant to section 215.035 or 215.050, RSMo;

     (2) Approve all proposed inner city property for renovation;

     (3) Approve the workers who will perform the renovation and reconstruction work. The workers, to be selected from the local labor force, shall be capable of performing the work for which they will be hired, and shall be, as far as practicable, persons who are classified as low income or receiving public assistance and who are indigenous to the areas which are selected for renovation activity;

     (4) Contract and be contracted with;

     (5) Seek such legal and other professional and staff assistance deemed necessary to carry out the purposes of sections 45 to 48 of this act including, but not limited to, the community development corporation of Kansas City;

     (6) Sell the properties renovated, but such sales shall be subject to the following requirements;

     (a) All properties sold shall be sold at cost to persons who qualify for low income housing ownership benefits pursuant to federal or state law, or both, as determined annually by the Missouri housing development commission;

     (b) Each property shall be sold only to a person who will be the actual owner of record of the property and will actually occupy the property for a period of not less than five years; and

     (c) Each property shall be sold at a price which will allow the commission to recover all costs incurred by it in renovating and selling such property, including, but not limited to, the labor, materials and other renovation expenses;

     (7) Do all other things necessary to implement and administer the residential renovation program authorized by sections 49 to 52 of this act;

     (8) Utilize all appropriate tax credit and wage diversion programs offered through state departments to assist low-income residents of this state in becoming self-sufficient through the workfare renovation project.

     Section 52. Properties selected for renovation pursuant to the provisions of sections 49 to 52 of this act shall be located in those areas of the inner city which are in the greatest need of neighborhood rehabilitation. Each administering agency shall make a plan or plans, available to the public, to carry out the purposes of this section. In making the plan or plans required by this section, each agency shall hold public hearings at reasonable times and places from which to obtain community input in order to assess the impact of any proposed plan on any neighborhood involved and to assist them in determining which neighborhood or neighborhoods shall be given the highest priority. The factors which the agency may consider, among all other relevant considerations, are:

     (1) The number of properties owned by the city in a neighborhood which could be renovated; and

     (2) The prior commitment of private developers to the area selected or adjacent areas for purposes of assuring that purchasers of such property can obtain financing and insurance.

     Further amend said bill by amending the title and enacting clause accordingly.

     In which the concurrence of the Senate is respectfully requested.

HOUSE BILLS ON THIRD READING

     HB 883, with SCA 1, introduced by Representative Clayton, entitled:

     An Act to repeal sections 566.617 and 566.625, RSMo 1994, and sections 566.600, 566.603, 566.605, 566.607, 566.610, 566.614 and 566.620, RSMo Supp. 1996, relating to registration of certain offenders, and to enact in lieu thereof nine new sections relating to the same subject, with penalty provisions.

     Was taken up by Senator Scott.

     SCA 1 was taken up.

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

     On motion of Senator Scott, HB 883 was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
CurlsDePascoEhlmannFlotron
GoodeGravesHowardJacob
JohnsonKenneyKinderKlarich
LybyerMathewsonMaxwellMcKenna
MuellerQuickRohrbachRussell
SchneiderScottSimsSingleton
StaplesWestfallWigginsYeckel--32
Nays--Senators--None
Absent--Senators
ClayHouse--2
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     HS for HB 389, with SCAs 1 and 2, was placed on the Informal Calendar.

     HB 104, with SCS, was placed on the Informal Calendar.

     HB 831, with SCA 1, was placed on the Informal Calendar.

     HCS for HB 528, entitled:

     An Act to repeal sections 265.600, 265.605, 265.610, 265.615, 265.620, 265.625, 265.630, 265.635, 265.640, 413.225 and 413.227, RSMo 1994, relating to regulation of weights and measures, and to enact in lieu thereof two new sections relating to the same subject.

     Was taken up by Senator Maxwell.

     On motion of Senator Maxwell, HCS for HB 528 was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksCaskeyChildersCurls
DePascoEhlmannFlotronGoode
GravesHouseHowardJacob
JohnsonKenneyKinderKlarich
LybyerMathewsonMaxwellMcKenna
MuellerQuickRohrbachRussell
SchneiderScottSimsSingleton
StaplesWestfallWigginsYeckel--32
Nays--Senators--None
Absent--Senators
BentleyClay--2
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     HJR 11, introduced by Representative Leake, et al, entitled:

     Joint Resolution submitting to the qualified voters of Missouri, an amendment repealing section 27 of article VI of the Constitution of Missouri, relating to joint municipal utility commission revenue bonds, and adopting one new section in lieu thereof relating to the same subject.

     Was taken up by Senator Maxwell.

     At the request of Senator Maxwell, HJR 11 was placed on the Informal Calendar.

     HB 787, with SCAs 1, 2, 3, 4 and 5 was placed on the Informal Calendar.

     HCS for HB 635, entitled:

     An Act relating to hepatitis B vaccinations for at-risk state employees.

     Was taken up by Senator McKenna.

     Senator Howard offered SA 1:

SENATE AMENDMENT NO. 1

     Amend House Committee Substitute for House Bill No. 635, Page 2, Section 1, Line 23, by inserting immediately after all of said line the following:

     "6. The department of mental health shall develop criteria for locating new methadone treatment programs in the state of Missouri.".

     Senator Howard moved that the above amendment be adopted.

     Senator Johnson resumed the Chair.

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

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

     Senator Howard moved that SA 1 be adopted, which motion prevailed.

     At the request of Senator McKenna, HCS for HB 635, as amended, was placed on the Informal Calendar.

     HCS for HB 509, entitled:

     An Act to amend chapter 208, RSMo, relating to public assistance by adding thereto two new sections relating to temporary assistance for needy families.

     Was taken up by Senator Howard.

     Senator Howard offered SS for HCS for HB 509, entitled:

SENATE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 509

     An Act to amend chapter 208, RSMo, relating to public assistance by adding thereto two new sections relating to temporary assistance for needy families.

     Senator Howard moved that SS for HCS for HB 509 be adopted.

     Senator Sims offered SA 1:

SENATE AMENDMENT NO. 1

     Amend Senate Substitute for House Committee Substitute for House Bill No. 509, Page 1, Section 208.028, Lines 4-15, by deleting said section; and

     Further amend said bill, page 2, section 208.029, by deleting lines 22-24; and

     Further amend said bill, by deleting subsection 5 and inserting in lieu thereof the following:

     "(6) Meets a needs criteria established by the division of family services and in accordance with appropriations granted by the general assembly.".

     Senator Sims moved that the above amendment be adopted.

     At the request of Senator Howard, HCS for HB 509, with SCS and SA 1 (pending), was placed on the Informal Calendar.

     HB 630, introduced by Representatives Boucher and Ransdall, entitled:

     An Act relating to patriotic activities.

     Was taken up by Senator DePasco.

     On motion of Senator DePasco, HB 630 was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayCurlsDePascoEhlmann
GoodeGravesHouseHoward
JacobJohnsonKenneyKinder
KlarichLybyerMathewsonMaxwell
MuellerQuickRohrbachRussell
SchneiderScottSimsSingleton
StaplesWestfallWigginsYeckel--32
Nays--Senators--None
Absent--Senators
FlotronMcKenna--2
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

REPORTS OF STANDING COMMITTEES

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

     Mr. President: Your Committee on State Budget Control, to which was referred HCS for HBs 641 and 593, begs leave to report that it has considered the same and recommends that the bill do pass.

HOUSE BILLS ON THIRD READING

     At the request of Senator Bentley, HCS for HBs 641 and 593 was placed on the Informal Calendar.

     HB 172, with SCA 1, introduced by Representative Leake, entitled:

     An Act to repeal section 130.034, RSMo Supp. 1996, relating to campaign contributions, and to enact in lieu thereof one new section relating to the same subject.

     Was taken up by Senator Maxwell.

     SCA 1 was taken up.

     Senator Maxwell moved that the above amendment be adopted.

     At the request of Senator Maxwell, HB 172, with SCA 1 (pending), was placed on the Informal Calendar.

     Senator Howard moved that HCS for HB 509, with SS and SA 1 (pending), be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     SA 1 was taken up.

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

     Senator Rohrbach offered SA 2, which was read:

SENATE AMENDMENT NO. 2

     Amend Senate Substitute for House Committee Substitute for House Bill No. 509, Page 2, Section 208.029, Line 13, by striking the word "requirements" and inserting in lieu thereof: "components".

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

     Senator Howard moved that SS for HCS for HB 509, as amended, be adopted, which motion prevailed.

     On motion of Senator Howard, SS for HCS for HB 509, as amended, was read the 3rd time and passed by the following vote:
Yeas--Senators
BentleyCaskeyChildersClay
CurlsDePascoEhlmannFlotron
GoodeGravesHouseHoward
JacobJohnsonKenneyKinder
KlarichLybyerMathewsonMaxwell
McKennaMuellerQuickRohrbach
SchneiderScottSimsSingleton
StaplesWestfallWigginsYeckel--32
Nays--Senators--None
Absent--Senators
BanksRussell--2
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     HCS for HBs 641 and 593, entitled:

     An Act to repeal sections 162.970, 162.975 and 162.980, RSMo 1994, and section 167.126, RSMo Supp. 1996, relating to state aid for special education programs, and to enact in lieu thereof three new sections relating to the same subject.

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

     Senator Bentley offered SS for HCS for HBs 641 and 593, entitled:

SENATE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILLS NOS. 641 AND 593

     An Act to repeal sections 160.011, 160.021, 162.970, 162.975 and 162.980, RSMo 1994, and section 167.126, RSMo Supp. 1996, relating to state aid for special education programs, and to enact in lieu thereof six new sections relating to the same subject.

     Senator Bentley moved that SS for HCS for HBs 641 and 593 be adopted.

     Senator House offered SA 1:

SENATE AMENDMENT NO. 1

     Amend Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 8, Section 167.126, Line 9, by inserting immediately before all of said line the following:

     "165.011. 1. The following funds are created for the accounting of all school moneys: teachers' fund, incidental fund, free textbook fund, capital projects fund and debt service fund. The treasurer of the school district shall open an account for each fund specified in this section, and all moneys received from the county school fund and all moneys derived from taxation for teachers' wages shall be placed to the credit of the teachers' fund. All tuition fees, state moneys received under sections 162.975, RSMo, and 163.031, RSMo, and all other moneys received from the state except as herein provided shall be placed to the credit of the teachers' and incidental funds at the discretion of the district board of education. Money received from other districts for transportation, and money derived from taxation for incidental expenses shall be credited to the incidental fund. Money apportioned for free textbooks shall be credited to the free textbook fund. All money derived from taxation or received from any other source for the erection of buildings or additions thereto and the remodeling or reconstruction of buildings and the furnishing thereof, for the payment of lease purchase obligations, for the purchase of real estate, or from sale of real estate, schoolhouses or other buildings of any kind, or school furniture, from insurance, from sale of bonds other than refunding bonds shall be placed to the credit of the capital projects fund. All moneys derived from the sale or lease of sites, buildings, facilities, furnishings and equipment by a school district as authorized under section 177.088, RSMo, shall be credited to the capital projects fund. Money derived from taxation for the retirement of bonds and the payment of interest thereon shall be credited to the debt service fund which shall be maintained as a separate bank account. Receipts from delinquent taxes shall be allocated to the several funds on the same basis as receipts from current taxes, except that where the previous years' obligations of the district would be affected by such distribution, the delinquent taxes shall be distributed according to the tax levies made for the years in which the obligations were incurred. All refunds received shall be placed to the credit of the fund from which the original expenditures were made. Money donated to the school districts shall be placed to the credit of the fund where it can be expended to meet the purpose for which it was donated and accepted. Money received from any other source whatsoever shall be placed to the credit of the fund or funds designated by the board.

     2. The school board may expend from the incidental fund the sum that is necessary for the ordinary repairs of school property and an amount not to exceed the sum of expenditures for classroom instructional capital outlay, as defined by the department of elementary and secondary education by rule, in state-approved area vocational-technical schools and .06 dollars per one hundred dollars equalized assessed valuation multiplied by the guaranteed tax base for the second preceding year multiplied by the number of resident and nonresident eligible pupils educated in the district for the second preceding year for classroom instructional capital outlay, including but not limited to payments authorized pursuant to section 177.088, RSMo. Any and all payments authorized under section 177.088, RSMo, except as otherwise provided in this subsection, for the purchase or lease of sites, buildings, facilities, furnishings and equipment and all other expenditures for capital outlay shall be made from the capital projects fund. If a balance remains in the free textbook fund after books are furnished to pupils as provided in section 170.051, RSMo, it shall be transferred to the teachers' fund. The board may transfer the portion of the balance remaining in the incidental fund to the teachers' fund that is necessary for the total payment of all contracted obligations to teachers. If a balance remains in the debt service fund, after the total outstanding indebtedness for which the fund was levied is paid, the board may transfer the unexpended balance to the capital projects fund. If a balance remains in the bond proceeds after completion of the project for which the bonds were issued, the balance shall be transferred from the incidental or capital projects fund to the debt service fund. After making all placements of interest otherwise provided by law, a school district may transfer from the capital projects fund to the incidental fund the interest earned from undesignated balances in the capital projects fund.

     3. Tuition shall be paid from either the teachers' or incidental funds.

     4. Other provisions of law to the contrary notwithstanding, the school board of a school district that satisfies the criteria specified in subsection 5 of this section may transfer from the incidental fund to the capital projects fund an amount not to exceed the greater of zero or the sum of .18 dollars per one hundred dollars equalized assessed valuation multiplied by the guaranteed tax base for the second preceding year multiplied by the number of resident and nonresident eligible pupils educated in the district for the second preceding year and the amount to be expended for transportation equipment that is considered an allowable cost under state board of education rules for transportation reimbursements during the current year and any amount necessary to satisfy obligations of the capital projects fund for state-approved area vocational-technical schools and an amount not to exceed .06 dollars per one hundred dollars equalized assessed valuation multiplied by the guaranteed tax base for the second preceding year multiplied by the number of resident and nonresident eligible pupils educated in the district for the second preceding year less any amount transferred pursuant to subsection 7 of this section, provided that any amount transferred pursuant to this subsection shall only be transferred as necessary to satisfy obligations of the capital projects fund less any amount expended from the incidental fund for classroom instructional capital outlay pursuant to subsection 2 of this section. For the purposes of this subsection, the guaranteed tax base and a district's count of resident and nonresident eligible pupils educated in the district shall not be less than their respective values calculated from data for the 1992-93 school year.

     5. In order to transfer funds pursuant to subsection 4 of this section, a school district shall:

     (1) Meet the minimum criteria for state aid and for increases in state aid for the current year established pursuant to section 163.021, RSMo;

     (2) Not incur a total debt, including short-term debt and bonded indebtedness in excess of ten percent of the guaranteed tax base for the preceding payment year multiplied by the number of resident and nonresident eligible pupils educated in the district in the preceding year;

     (3) Set tax rates pursuant to section 164.011, RSMo;

     (4) First apply any voluntary rollbacks or reductions to the total tax rate levied to the teachers' and incidental funds;

     (5) In order to be eligible to transfer funds for paying lease purchase obligations:

     (a) Incur such obligations, except for obligations for lease purchase for school buses, prior to January 1, 1997;

     (b) Limit the term of such obligations to no more than twenty years;

     (c) Limit annual installment payments on such obligations to an amount no greater than the amount of the payment for the first full year of the obligation, including all payments of principal and interest, except that the amount of the final payment shall be limited to an amount no greater than two times the amount of such first-year payment;

     (d) Limit such payments to leasing nonathletic, classroom, instructional facilities as defined by the state board of education through rule; and

     (e) Not offer instruction at a higher grade level than was offered by the district on July 12, 1994.

     6. A school district shall be eligible to transfer funds pursuant to subsection 7 of this section if:

     (1) Prior to August 28, 1993:

     (a) The school district incurred an obligation for the purpose of funding payments under a lease purchase contract authorized under section 177.088, RSMo;

     (b) The school district notified the appropriate local election official to place an issue before the voters of the district for the purpose of funding payments under a lease purchase contract authorized under section 177.088, RSMo; or

     (c) An issue for funding payments under a lease purchase contract authorized under section 177.088, RSMo, was approved by the voters of the district; or

     (2) Prior to November 1, 1993, a school board adopted a resolution authorizing an action necessary to comply with subsection 9 of section 177.088, RSMo. Any increase in the operating levy of a district above the 1993 tax rate resulting from passage of an issue described in paragraph (b) of subdivision (1) of this subsection shall be considered as part of the 1993 tax rate for the purposes of subsection 1 of section 164.011, RSMo.

     7. Prior to transferring funds pursuant to subsection 4 of this section, a school district may transfer, pursuant to this subsection, from the incidental fund to the capital projects funds an amount as necessary to satisfy an obligation of the capital projects fund that satisfies at least one of the conditions specified in subsection 6 of this section, but not to exceed its payments authorized under section 177.088, RSMo, for the purchase or lease of sites, buildings, facilities, furnishings, equipment, and all other expenditures for capital outlay, plus the amount to be expended for transportation equipment that is considered an allowable cost under state board of education rules for transportation reimbursements during the current year plus any amount necessary to satisfy obligations of the capital projects fund for state-approved area vocational-technical schools. A school district with a levy for school purposes no greater than the minimum levy specified in section 163.021, RSMo, and an obligation in the capital projects fund that satisfies at least one of the conditions specified in subsection 6 of this section, may transfer from the incidental fund to the capital projects fund the amount necessary to meet the obligation plus the transfers pursuant to subsection 4 of this section.

     8. Beginning in the 1995-96 school year, the department of elementary and secondary education shall deduct from a school district's state aid calculated pursuant to section 163.031, RSMo, an amount equal to the amount of any transfer of funds from the incidental fund to the capital projects fund performed during the previous year in violation of this section.

     9. On or before June 30, 1995, a school district may transfer to the capital projects fund from the balances of the teachers' and incidental funds any amount, but only to the extent that the teachers' and incidental fund unrestricted balances on June 30, 1995, are equal to or greater than eight percent of expenditures from the teachers' and incidental funds for the year ending June 30, 1995."; and

     Further amend the title and enacting clause accordingly.

     Senator House moved that the above amendment be adopted.

     Senator Bentley raised the point of order that SA 1 is out of order in that the amendment goes beyond the scope of the subject matter of the bill.

     At the request of Senator Bentley, HCS for HBs 641 and 593, with SS, SA 1 and the point of order (pending), was placed on the Informal Calendar.

     Senator Maxwell moved that HJR 11 be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     Senator Flotron offered SA 1:

SENATE AMENDMENT NO. 1

     Amend House Joint Resolution No. 11, Page 2, Section 27, Line 22, by inserting immediately after all of said line the following:

     "Section B. Article VI, Constitution of Missouri, is amended by adding thereto one new section, to be known as section 30(c), to read as follows:

     Section 30(c). Any entity created pursuant to Article VI, Section 30(a) of this Constitution which adopts or has adopted a charter for its own government, shall have all powers which the general assembly of the state of Missouri has authority to confer upon such entity, provided such powers are consistent with the constitution of this state and are not limited or denied either by the charter so adopted or by statute."; and

     Further amend the title and enacting clause accordingly.

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

     On motion of Senator Maxwell, HJR 11, as amended, was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayCurlsDePascoEhlmann
FlotronGoodeHouseHoward
JacobJohnsonKenneyKlarich
LybyerMathewsonMaxwellMcKenna
MuellerQuickRussellSchneider
ScottSimsSingletonStaples
WestfallWigginsYeckel--31
Nays--Senators
GravesKinderRohrbach--3
Absent--Senators--None
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     The President Pro Tem ruled the point of order on SA 1 to SS for HCS for HBs 641 and 593 not well taken.

     SA 1 was again taken up.

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

     Senator Kenney offered SA 2:

SENATE AMENDMENT NO. 2

     Amend Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 5, Section 162.975, Line 19, by placing a "[" after the "," on line 19 and a "]" after the "." on line 21 and insert immediately after the closing bracket "who are in compliance with section 167.031."; and

     Further amend said bill, page 6, line 8, by placing a "[" after the "," and a "]" after the "." on line 10 and insert immediately after the closing bracket "who are in compliance with section 167.031.".

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

     Senator Wiggins resumed the Chair.

     Senator Johnson offered SA 3:

SENATE AMENDMENT NO. 3

     Amend Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 17, Section 162.980, Line 12, by inserting immediately after said line the following:

     "163.031. 1. School districts which meet the requirements of section 163.021 shall be entitled to an amount computed as follows: an amount determined by multiplying the number of eligible pupils by the district's equalized operating levy for school purposes as defined in section 163.011 multiplied by the guaranteed tax base per eligible pupil times the proration factor. For the purposes of this section, the proration factor shall be equal to the sum of the total appropriation for distribution under subsections 1 and 2 of this section; and the state total of the deductions as calculated in subsection 2 of this section which do not exceed the district entitlements as adjusted by the same proration factor; divided by the amount of the state total of district entitlements before proration as calculated pursuant to this subsection.

     2. From the district entitlement for each district there shall be deducted the following amounts: an amount determined by multiplying the district equalized assessed valuation by the district's equalized operating levy for school purposes times the district income factor plus ninety percent of any payment received the current year of protested taxes due in prior years no earlier than the 1997 tax year minus the amount of any protested taxes due in the current year and for which notice of protest was received during the current year; one hundred percent of the amount received the previous year for school purposes from intangible taxes, fines, forfeitures and escheats, payments in lieu of taxes and receipts from state assessed railroad and utility tax, except that any penalty paid after July 1, 1995, by a concentrated animal feeding operation as defined by the department of natural resources rule shall not be included; one hundred percent of the amounts received the previous year for school purposes from federal properties pursuant to sections 12.070 and 12.080, RSMo; federal impact aid received the previous year for school purposes pursuant to P.L. 81-874 less fifty thousand dollars multiplied by ninety percent or the maximum percentage allowed by federal regulation if that percentage is less than ninety; fifty percent, or the percentage otherwise provided in section 163.087, of Proposition C revenues received the previous year for school purposes from the school district trust fund pursuant to section 163.087; one hundred percent of the amount received the previous year for school purposes from the fair share fund pursuant to section 149.015, RSMo; and one hundred percent of the amount received the previous year for school purposes from the free textbook fund, pursuant to section 148.360, RSMo.

     3. School districts which meet the requirements of section 163.021 shall receive categorical add-on revenue as provided in this subsection. There shall be individual proration factors for each categorical entitlement provided for in this subsection, and each proration factor shall be determined by annual appropriations, but no categorical proration factor shall exceed the entitlement proration factor established pursuant to subsection 1 of this section, except that the vocational education entitlement proration factor established pursuant to line 16 of subsection 6 of this section and the educational and screening program entitlements proration factor established pursuant to line 17 of subsection 6 of this section may exceed the entitlement proration factor established pursuant to subsection 1 of this section. The categorical add-on for the district shall be the sum of: seventy-five percent of the district allowable transportation costs pursuant to section 163.161 multiplied by the proration factor; the special education approved or allowed cost entitlement for the district, provided for by section 162.975, RSMo, multiplied by the proration factor; seventy-five percent of the district gifted education approved or allowable cost entitlement as determined pursuant to section 162.975, RSMo, multiplied by the proration factor; the free and reduced lunch eligible pupil count for the district, as defined in section 163.011, multiplied by twenty percent times the guaranteed tax base per eligible pupil times the minimum value for an operating levy for school purposes as provided in section 163.011 times the proration factor; the career ladder entitlement for the district, as provided for in sections 168.500 to 168.515, RSMo, multiplied by the proration factor; the vocational education entitlement for the district, as provided for in section 167.332, RSMo, multiplied by the proration factor and the district educational and screening program entitlements as provided for in sections 178.691 to 178.699, RSMo, times the proration factor.

     4. Each district's apportionment shall be the prorated categorical add-ons plus the greater of the district's prorated entitlement minus the total deductions for the district or zero.

     5. (1) In the 1993-94 school year and all subsequent school years, pursuant to section 10(c) of article X of the state constitution, a school district shall adjust upward its operating levy for school purposes to the extent necessary for the district to at least maintain the current operating expenditures per pupil received by the district from all sources in the 1992-93 school year, except that its operating levy for school purposes shall not exceed the highest tax rate in effect subsequent to the 1980 tax year, or the minimum rate required by subsection 2 of section 163.021, whichever is less.

     (2) Beginning with the 1993-94 school year, the revenue per eligible pupil received by a district from the following sources: line 1 minus line 10, or zero if line 1 minus line 10 is less than zero, plus line 14 of subsection 6 of this section; plus the product of the current assessed valuation of the district multiplied by the following tax rate - the greater of zero or the minimum rate required by subsection 2 of section 163.021 minus the district's equalized operating levy for school purposes for 1993, shall not be less than the revenue per eligible pupil received by a district in the 1992-93 school year from the foundation formula entitlement payment amount. The department of elementary and secondary education shall make an addition in the payment amount of line 19 of subsection 6 of this section to assure compliance with the provisions contained in this section.

     (3) For any school district which meets the eligibility criteria for state aid as established in section 163.021, but which under subsections 1 to 4 of this section, receives no state aid for two successive school years, other than categorical add-ons, by August first following the second such school year, the commissioner of education shall present a plan to the superintendent of the school district for the waiver of rules and the duration of said waivers, in order to promote flexibility in the operations of the district and to enhance and encourage efficiency in the delivery of instructional services. The provisions of other law to the contrary notwithstanding, the plan presented to the superintendent shall provide a summary waiver, with no conditions, for the pupil testing requirements pursuant to section 160.257, RSMo. Further, the provisions of other law to the contrary notwithstanding, the plan shall detail a means for the waiver of requirements otherwise imposed on the school district related to the authority of the state board of education to classify school districts pursuant to section 161.092, RSMo, and such other rules as determined by the commissioner of education, except that such waivers shall not include the provisions established pursuant to sections 160.514 and 160.518, RSMo.

     (4) In the 1993-94 school year and each school year thereafter for two years, those districts which are entitled to receive state aid under subsections 1 to 4 of this section, shall receive state aid in an amount per eligible pupil as provided in this subsection. For the 1993-94 school year, the amount per eligible pupil shall be twenty-five percent of the amount of state aid per eligible pupil calculated for the district for the 1993-94 school year pursuant to subsections 1 to 4 of this section plus seventy-five percent of the total amount of state aid received by the district from all sources for the 1992-93 school year for which the district is entitled and which are distributed in the 1993-94 school year pursuant to subsections 1 to 4 of this section. For the 1994-95 school year, the amount per eligible pupil shall be fifty percent of the amount of state aid per eligible pupil calculated for the district for the 1994-95 school year pursuant to subsections 1 to 4 of this section plus fifty percent of the total amount of state aid received by the district from all sources for the 1992-93 school year for which the district is entitled and which are distributed in the 1994-95 school year pursuant to subsections 1 to 4 of this section. For the 1995-96 school year, the amount of state aid per eligible pupil shall be seventy-five percent of the amount of state aid per eligible pupil calculated for the district for the 1995-96 school year pursuant to subsections 1 to 4 of this section plus twenty-five percent of the total amount of state aid received by the district from all sources for the 1992-93 school year for which the district is entitled and which are distributed in the 1995-96 school year pursuant to subsections 1 to 4 of this section. Nothing in this subdivision shall be construed to limit the authority of a school district to raise its district operating levy pursuant to subdivision (1) of this subsection.

     (5) If the total of state aid apportionments to all districts pursuant to subdivision (3) of this subsection is less than the total of state aid apportionments calculated pursuant to subsections 1 to 4 of this section, then the difference shall be deposited in the outstanding schools trust fund. If the total of state aid apportionments to all districts pursuant to subdivision (1) of this subsection is greater than the total of state aid apportionments calculated pursuant to subsections 1 to 4 of this section, then funds shall be transferred from the outstanding schools trust fund to the state school moneys fund to the extent necessary to fund the district entitlements as modified by subdivision (4) of this subsection for that school year with a district entitlement proration factor no less than one and such transfer shall be given priority over all other uses for the outstanding schools trust fund as otherwise provided by law.

     6. State aid shall be determined as follows:

      District Entitlement

1. Number of eligible pupils x (district's equalized

     operating levy for school purposes) x (proration

     x GTB per EP).................................... $........

      Deductions

2. District equalized assessed valuation

     x district income factor x district's

     equalized operating levy for school purposes

     plus ninety percent of any payment

received the current year of protested

taxes due in prior years no earlier than the 1997 tax year minus the amount of

any protested taxes due in the current year and for which notice of protest

was received during the current

year ......................................................... $........

3. Intangible taxes, fines, forfeitures, escheats,

     payments in lieu of taxes, etc. (100% of the

     amount received the previous year for

     school purposes) ................................ $........

4. Receipts from state assessed

     railroad and utility tax (100% of

     the amount received the previous

     year for school purposes) ....................... $........

5. Receipts from federal properties

     pursuant to sections 12.070 and

     12.080, RSMo (100% of the amount

     received the previous year for

     school purposes) ................................ $........

6. (Federal impact aid received the previous year

     for school purposes pursuant to P.L. 81-874 less

     $50,000) x 90% or the maximum

percentage allowed by federal regulations

if less than 90% ................................... $........

7. Fifty percent or the percentage otherwise

     provided in section 163.087 of Proposition C

     receipts from the school district trust fund

     received the previous year for school purposes

     pursuant to section 163.087, RSMo ........ $........

8. One hundred percent of the amount received

     the previous year for school purposes from

     the fair share fund pursuant to section

     149.015, RSMo ................................... $........

9. One hundred percent of the amount received the previous year for school purposes from

the free textbook fund pursuant to

section 148.360, RSMo .............................. $........

10. Total deductions (sum of lines 2-9) ....... $........

      Categorical Add-ons

11. The amount distributed pursuant to section

     163.161 x proration ............................. $........

12. Special education approved or allowed cost

     entitlement for the district pursuant to section

     162.975, RSMo, x proration ................. $........

13. Seventy-five percent of the gifted education

     approved or allowable cost entitlement as

     determined pursuant to section

     162.975, RSMo, x proration ................. $........

14. Free and reduced lunch eligible pupil count for

     the district, as defined in section 163.011,

     RSMo, x .20 x GTB per EP x the minimum

     value for an operating levy for school      purposes as provided in section 163.011

     x proration ............................................. $........

15. Career ladder entitlement for the district

     as provided for in sections 168.500 to

     168.515, RSMo, x proration ................ $........

16. Vocational education entitlements for

     the district as provided in section 167.332,

     RSMo, x proration ............................... $........

17. Educational and screening program entitlements

     for the district as provided in sections 178.691

     to 178.699, RSMo, x proration ..............$........

18. Sum of categorical add-ons for the district

     (sum of lines 11-17)............................. $........

19. District apportionment (line 18 plus the

     greater of line 1 minus line 10

     or zero) ................................................ $........

     7. Revenue received for school purposes by each school district pursuant to this section shall be placed in each of the incidental and teachers' funds based on the ratio of the property tax rate in the district for that fund to the total tax rate in the district for the two funds.

     163.036. 1. In computing the amount of state aid a school district is entitled to receive under section 163.031, a school district may use an estimate of the number of eligible pupils for the ensuing year or the number of eligible pupils for the immediately preceding year whichever is greater. Any error made in the apportionment of state aid because of a difference between the actual number of eligible pupils and the estimated number of eligible pupils shall be corrected as provided in section 163.091, except that if the amount paid to a district estimating eligible pupils exceeds the amount to which the district was actually entitled by more than five percent, interest at the rate of six percent shall be charged on the excess and shall be added to the amount to be deducted from the district's apportionment the next succeeding year.

     2. Notwithstanding the provisions of subsection 1 of this section or any other provision of law, the state board of education shall make an adjustment for the immediately preceding year for any increase in the actual number of eligible pupils above the number on which the state aid in section 163.031 was calculated. Said adjustment shall be made in the manner providing for correction of errors under subsection 1 of this section.

     3. For the purposes of distribution of state school aid pursuant to section 163.031, RSMo, a school district may elect to use the district's equalized assessed valuation for the preceding year, or an estimate of the current year's assessed valuation if the current year's equalized assessed valuation is estimated to be more than ten percent less than the district's equalized assessed valuation for the preceding year. A district shall give prior notice to the department of its intention to use the current year's assessed valuation pursuant to this subsection. Any error made in the apportionment of state aid because of a difference between the actual equalized assessed valuation for the current year and the estimated equalized assessed valuation for the current year shall be corrected as provided in section 163.091, RSMo, except that if the amount paid to a district estimating current equalized assessed valuation exceeds the amount to which the district was actually entitled, interest at the rate of six percent shall be charged on the excess and shall be added to the amount to be deducted from the district's apportionment the next succeeding year."; and

     Further amend said bill, page 1, in the title, line 4, by striking the word "special"; and

     Further amend the title and enacting clause accordingly.

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

     Senator Klarich offered SA 4:

SENATE AMENDMENT NO. 4

     Amend Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 13, Section 2, Line 6, by adding one new section immediately after said line the following:

     "Section 1. 1. Any person serving as a member of a board or commission may indicate that such member wishes to contribute all or any part of the per diem or expense reimbursement received for such service on the board or commission to a fund to be administered by the division of youth services for the counseling, treatment and therapy of children who have been sexually, physically or emotionally abused. The office of administration shall design vouchers for the payment of the per diem or expense reimbursement to allow the person to designate if all or part of the money the person is entitled to receive is to be deposited in the "Youth Services Treatment Fund", which is hereby created in the state treasury. All per diem and expense reimbursement amounts which are contributed shall be deposited with the state treasurer in the fund. The division of youth services advisory board created in chapter 219, RSMo, shall make recommendations to the governor and the department of social services for the expenditure of the money in the fund.

     2. Notwithstanding the provisions of sections 33.080, RSMo, moneys in the fund at the end of any biennium shall not be transferred to the general revenue fund."; and

     Further amend the title and enacting clause accordingly.

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

     Senator Singleton offered SA 5:

SENATE AMENDMENT NO. 5

     Amend Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 11, Section 167.126, Line 26 of said page, by inserting immediately after all of said line the following:

     "167.161. 1. The school board of any district, after notice to parents or others having custodial care and a hearing upon charges preferred, may suspend or expel a pupil for conduct which is prejudicial to good order and discipline in the schools or which tends to impair the morale or good conduct of the pupils. In addition to the authority granted in section 167.171, a school board may authorize, by general rule, the immediate removal of a pupil upon a finding by the principal, superintendent, or school board that the pupil poses a threat of harm to such pupil or others, as evidenced by the prior conduct of such pupil. Prior disciplinary actions shall not be used as the sole basis for removal, suspension or expulsion of a pupil. Removal of any pupil who is a student with a disability is subject to state and federal procedural rights. At the hearing upon any such removal, suspension or expulsion, the board shall consider the evidence and statements that the parties present and may consider records of past disciplinary actions, criminal court records or juvenile court records consistent with other provisions of the law, or the actions of the pupil which would constitute a criminal offense. The board may provide by general rule not inconsistent with this section for the procedure and conduct of such hearings. After meeting with the superintendent or his designee to discuss the expulsion, the parent, custodian or the student, if at least eighteen years of age, may, in writing, waive any right to a hearing before the board of education.

     2. The school board of any district, after notice to parents or others having custodial care and a hearing upon the matter, may suspend a pupil upon a finding that the pupil has been charged, convicted or pled guilty in a court of general jurisdiction for the commission of a felony criminal violation of state or federal law. At a hearing required by this subsection, the board shall consider statements that the parties present. The board may provide for the procedure and conduct of such hearings.

     3. The school board shall make a good-faith effort to have the parents or others having custodial care present at any such hearing. Notwithstanding any other provision of law to the contrary, student discipline hearings or proceedings related to the rights of students to attend school or to receive academic credit shall not be required to comply with the requirements applicable to contested case hearings as provided in chapter 536, RSMo, provided that appropriate due process procedures shall be observed which shall include the right for a direct appeal for a de novo review by the circuit court."; and

     Further amend the title and enacting clause accordingly.

     Senator Singleton moved that the above amendment be adopted.

     Senator Bentley raised the point of order that SA 5 is out of order in that it goes beyond the scope and purpose of the original bill.

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

     SA 5 was again taken up.

     Senator Jacob offered SA 1 to SA 5, which was read:

SENATE AMENDMENT NO. 1 TO

SENATE AMENDMENT NO. 5

     Amend Senate Amendment No. 5 to Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 2, Line 22, by striking the words "For a direct appeal" and insert between "a" and "de novo" the word "trial" and by striking the word "review".

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

     SA 5, as amended, was again taken up.

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

     Senator Rohrbach offered SA 6:

SENATE AMENDMENT NO. 6

     Amend Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 3, Section 162.975, Line 1, by adding immediately before said line the following:

     "160.522. 1. By July 1, 1996, the state board of education shall adopt a policy for the public reporting of information by school districts on an annual basis. The school district reports shall be distributed to all media outlets serving the district, and shall be made available to all district patrons, and to each member of the general assembly representing a legislative district which contains a portion of the school district.

     2. The department of elementary and secondary education shall develop multiple reporting models which may be used by school districts for their public reports. The information reported shall include, but not be limited to, enrollment, rates of pupil attendance, high school dropout rate, staffing ratios, including the district ratio of students to all teachers, to administrators, and to classroom teachers, the average years of experience of professional staff and advanced degrees earned, student achievement as determined through the assessment system developed pursuant to section 160.518, student scores on the SAT or ACT, along with the percentage of students taking each test, average teachers' and administrators' salaries compared to the state averages, average salaries of noncertificated personnel compared to state averages, average per pupil expenditures for the district as a whole and for each building in the district which has pupils at the same grade level as another building in the district, voted and adjusted tax rates levied, assessed valuation, percent of the district operating budget received from state, federal, and local sources, extracurricular activities offered and the costs associated with each activity, the number of students eligible for free or reduced lunch, school calendar information, including the number of days and hours for student attendance, parent-teacher conferences, and staff development or in-service training, data on course offerings and rates of participation in parent-teacher conferences, special education programs, early childhood special education programs, parents as teachers programs, vocational education programs, gifted or enrichment programs, and advanced placement programs, data on the number of students continuing their education in postsecondary programs and information about job placement for students who complete district vocational education programs, and the district's most recent accreditation by the state board of education, including measures for school improvement.

     3. The public reporting shall permit the disclosure of data on a school by school basis, but the reporting shall not be personally identifiable to any student or education professional in the state.

     4. Beginning July 1, 1996, the annual report made by the state board of education pursuant to section 161.092, RSMo, shall include a summary of school districts accredited, provisionally accredited, and unaccredited under the Missouri school improvement program, including an analysis of standards met and not met, and an analysis of state program assessment data collected pursuant to section 160.526, describing the kinds of tasks students can perform."; and

     Further amend said bill, by amending the titling and enacting clause accordingly.

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

     Senator Ehlmann offered SA 7:

SENATE AMENDMENT NO. 7

     Amend Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 13, Section 2, Line 6, by inserting immediately after all of said line the following:

     "Section 3. Notwithstanding any provision of state law, state regulation, or school district rule or regulation, the state board of education shall not limit the number of schools which may be deemed academically deficient pursuant to Section 160.538, RSMo, in any one school district or the total number of schools in the state and shall not use location in determining whether a school is academically deficient."; and

     Further amend the title and enacting clause accordingly.

     Senator Ehlmann moved that the above amendment be adopted.

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

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

     SA 7 was again taken up.

     Senator Bentley requested a roll call vote be taken on the adoption of SA 7 and was joined in her request by Senators Childers, Howard, Sims and Jacob.

     SA 7 failed of adoption by the following vote:
Yeas--Senators
ChildersClayEhlmannGraves
HouseKenneyKinderKlarich
MuellerRohrbachRussellSchneider
SingletonYeckel--14
Nays--Senators
BanksBentleyCaskeyDePasco
GoodeHowardJacobJohnson
LybyerMathewsonMaxwellMcKenna
QuickScottSimsStaples
Wiggins--17
Absent--Senators
CurlsFlotronWestfall--3
Absent with leave--Senators--None

     Senator Jacob offered SA 8:

SENATE AMENDMENT NO. 8

     Amend Senate Substitute for House Committee Substitute for House Bills Nos. 641 and 593, Page 8, Section 162.975, Line 8 of said page, by inserting immediately after said line the following:

     "167.117. 1. In any instance when any person is believed to have committed an act which if committed by an adult would be assault in the first[, second or third] or second degree, sexual assault, or deviate sexual assault against a pupil or school employee, while on school property, including a school bus in service on behalf of the district, or while involved in school activities, the principal shall immediately report such incident to the appropriate local law enforcement agency and to the superintendent. In instances when any person is believed to have committed an act which if committed by an adult would be assault in the third degree, the principal may determine whether the act is of such a serious nature that it should be reported to the superintendent or the appropriate local law enforcement agency or both.

     2. In any instance when a pupil is discovered to have on or about such pupil's person, or among such pupil's possessions, or placed elsewhere on the school premises, any controlled substance as defined in section 195.010, RSMo, or any weapon as defined in subsection 4 of section 160.261, RSMo, in violation of school policy, the principal shall immediately report such incident to the appropriate local law enforcement agency and to the superintendent.

     3. In any instance when a teacher becomes aware of an assault as set forth in subsection 1 of this section or finds a pupil in possession of a weapon or controlled substances as set forth in subsection 2 of this section, the teacher shall immediately report such incident to the principal.

     4. A school employee, superintendent or such person's designee who in good faith provides information to police under subsection 1 or 2 of this section shall not be civilly liable for providing such information.

     5. Any school official responsible for reporting pursuant to this section or section 160.261, RSMo, who willfully neglects or refuses to perform this duty shall be subject to the penalty established pursuant to section 162.091, RSMo.".

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

     Senator Bentley moved that SS for HCS for HBs 641 and 593, as amended, be adopted, which motion prevailed.

     On motion of Senator Bentley, SS for HCS for HBs 641 and 593, as amended, was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannGoode
GravesHouseHowardJacob
JohnsonKenneyKinderKlarich
LybyerMathewsonMaxwellMcKenna
MuellerQuickRohrbachRussell
SchneiderScottSimsSingleton
StaplesWestfallWigginsYeckel--32
Nays--Senators--None
Absent--Senators
CurlsFlotron--2
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     Senator McKenna moved that HCS for HB 635, as amended, be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     Senator Caskey offered SA 2:

SENATE AMENDMENT NO. 2

     Amend House Committee Substitute for House Bill No. 635, Page 1, Section 1, Line 1, by inserting before said line the following:

     "Section A. Sections 195.010, 195.040, 195.060, 195.070, 195.080, 195.100, 195.110, 195.197, 195.204, 195.400 and 195.410, RSMo 1994, and sections 195.017, 195.030 and 570.030, RSMo Supp. 1996, are repealed and seventeen new sections enacted in lieu thereof, to be known as sections 195.010, 195.017, 195.022, 195.030, 195.040, 195.045, 195.060, 195.070, 195.080, 195.100, 195.110, 195.197, 195.204, 195.400, 195.410, 570.030 and 1, to read as follows:

     195.010. The following words and phrases as used in sections 195.005 to 195.425, unless the context otherwise requires, mean:

     (1) "Addict", a person who habitually uses one or more controlled substances to such an extent as to create a tolerance for such drugs, and who does not have a medical need for such drugs, or who is so far addicted to the use of such drugs as to have lost the power of self-control with reference to his addiction;

     (2) "Administer", to apply a controlled substance, whether by injection, inhalation, ingestion, or any other means, directly to the body of a patient or research subject by:

     (a) A practitioner (or, in his presence, by his authorized agent); or

     (b) The patient or research subject at the direction and in the presence of the practitioner;

     (3) "Agent", an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser. The term does not include a common or contract carrier, public warehouseman, or employee of the carrier or warehouseman while acting in the usual and lawful course of the carrier's or warehouseman's business;

     (4) ["Apothecary", a licensed pharmacist as defined by the laws of this state, and where the context so requires, the owner of a store or other place of business where controlled substances are compounded or dispensed by a licensed pharmacist; but nothing in sections 195.005 to 195.425 shall be construed as conferring on a person who is not registered nor licensed as a pharmacist any authority, right, or privilege, that is not granted to him by the pharmacy laws of this state;

     (5)] "Attorney for the state", any prosecuting attorney, circuit attorney, or attorney general authorized to investigate, commence and prosecute an action under sections 195.005 to 195.425;

     [(6) "Bureau", the Bureau of Narcotics and Dangerous Drugs, United States Department of Justice, or its successor agency;]

     [(7)] (5) "Controlled substance", a drug, substance, or immediate precursor in Schedules I through V listed in this sections 195.005 to 195.425;

     [(8)] (6) "Controlled substance analogue", a substance the chemical structure of which is substantially similar to the chemical structure of a controlled substance in Schedule I or II and:

     (a) Which has a stimulant, depressant, or hallucinogenic effect on the central nervous system substantially similar to the stimulant, depressant, or hallucinogenic effect on the central nervous system of a controlled substance included in Schedule I or II; or

     (b) With respect to a particular individual, which that individual represents or intends to have a stimulant, depressant, or hallucinogenic effect on the central nervous system substantially similar to the stimulant, depressant, or hallucinogenic effect on the central nervous system of a controlled substance included in Schedule I or II. The term does not include a controlled substance; any substance for which there is an approved new drug application; any substance for which an exemption is in effect for investigational use, for a particular person, under section 505 of the federal Food, Drug and Cosmetic Act (21 U.S.C. 355) to the extent conduct with respect to the substance is pursuant to the exemption; or any substance to the extent not intended for human consumption before such an exemption takes effect with respect to the substance;

     [(9)] (7) "Counterfeit substance", a controlled substance which, or the container or labeling of which, without authorization, bears the trademark, trade name, or other identifying mark, imprint, number or device, or any likeness thereof, of a manufacturer, distributor, or dispenser other than the person who in fact manufactured, distributed, or dispensed the substance;

     [(10)] (8) "Deliver" or "delivery", the actual, constructive, or attempted transfer from one person to another of drug paraphernalia or of a controlled substance, or an imitation controlled substance, whether or not there is an agency relationship, and includes a sale;

     [(11)] (9) "Dentist", a person authorized by law to practice dentistry in this state;

     [(12)] (10) "Depressant or stimulant substance":

     (a) A drug containing any quantity of barbituric acid or any of the salts of barbituric acid or any derivative of barbituric acid which has been designated by the United States Secretary of Health and Human Services as habit forming under 21 U.S.C. 352(d);

     (b) A drug containing any quantity of:

     a. Amphetamine or any of its isomers;

     b. Any salt of amphetamine or any salt of an isomer of amphetamine; or

     c. Any substance the United States Attorney General, after investigation, has found to be, and by regulation designated as, habit forming because of its stimulant effect on the central nervous system;

     (c) Lysergic acid diethylamide; or

     (d) Any drug containing any quantity of a substance that the United States Attorney General, after investigation, has found to have, and by regulation designated as having, a potential for abuse because of its depressant or stimulant effect on the central nervous system or its hallucinogenic effect;

     [(13)] (11) "Dispense", to deliver a narcotic or controlled dangerous drug to an ultimate user or research subject by or pursuant to the lawful order of a practitioner including the prescribing, administering, packaging, labeling, or compounding necessary to prepare the substance for such delivery. "Dispenser" means a practitioner who dispenses;

     [(14)] (12) "Distribute", to deliver other than by administering or dispensing a controlled substance;

     [(15)] (13) "Distributor", a person who distributes;

     [(16)] (14) "Drug":

     (a) Substances recognized as drugs in the official United States Pharmacopoeia, Official Homeopathic Pharmacopoeia of the United States, or Official National Formulary, or any supplement to any of them;

     (b) Substances intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in humans or animals;

     (c) Substances, other than food, intended to affect the structure or any function of the body of humans or animals; and

     (d) Substances intended for use as a component of any article specified in this subdivision. It does not include devices or their components, parts or accessories;

     [(17)] (15) "Drug dependent person", a person who is using a controlled substance and who is in a state of psychic or physical dependence, or both, arising from the use of such substance on a continuous basis. Drug dependence is characterized by behavioral and other responses which include a strong compulsion to take the substance on a continuous basis in order to experience its psychic effects or to avoid the discomfort caused by its absence;

     (16) "Drug enforcement agency", the Drug Enforcement Administration in the United States Department of Justice, or its successor agency;

     [(18)] (17) "Drug paraphernalia", all equipment, products and materials of any kind which are used, intended for use, or designed for use, in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, storing, containing, concealing, injecting, ingesting, inhaling, or otherwise introducing into the human body a controlled substance or an imitation controlled substance in violation of sections 195.005 to 195.425. It includes, but is not limited to:

     (a) Kits used, intended for use, or designed for use in planting, propagating, cultivating, growing or harvesting of any species of plant which is a controlled substance or from which a controlled substance can be derived;

     (b) Kits used, intended for use, or designed for use in manufacturing, compounding, converting, producing, processing, or preparing controlled substances or imitation controlled substances;

     (c) Isomerization devices used, intended for use, or designed for use in increasing the potency of any species of plant which is a controlled substance or an imitation controlled substance;

     (d) Testing equipment used, intended for use, or designed for use in identifying, or in analyzing the strength, effectiveness or purity of controlled substances or imitation controlled substances;

     (e) Scales and balances used, intended for use, or designed for use in weighing or measuring controlled substances or imitation controlled substances;

     (f) Dilutents and adulterants, such as quinine hydrochloride, mannitol, mannite, dextrose and lactose, used, intended for use, or designed for use in cutting controlled substances or imitation controlled substances;

     (g) Separation gins and sifters used, intended for use, or designed for use in removing twigs and seeds from, or in otherwise cleaning or refining, marijuana;

     (h) Blenders, bowls, containers, spoons and mixing devices used, intended for use, or designed for use in compounding controlled substances or imitation controlled substances;

     (i) Capsules, balloons, envelopes and other containers used, intended for use, or designed for use in packaging small quantities of controlled substances or imitation controlled substances;

     (j) Containers and other objects used, intended for use, or designed for use in storing or concealing controlled substances or imitation controlled substances;

     (k) Hypodermic syringes, needles and other objects used, intended for use, or designed for use in parenterally injecting controlled substances or imitation controlled substances into the human body;

     (l) Objects used, intended for use, or designed for use in ingesting, inhaling, or otherwise introducing marijuana, cocaine, hashish, or hashish oil into the human body, such as:

     a. Metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without screens, permanent screens, hashish heads, or punctured metal bowls;

     b. Water pipes;

     c. Carburetion tubes and devices;

     d. Smoking and carburetion masks;

     e. Roach clips meaning objects used to hold burning material, such as a marijuana cigarette, that has become too small or too short to be held in the hand;

     f. Miniature cocaine spoons and cocaine vials;

     g. Chamber pipes;

     h. Carburetor pipes;

     i. Electric pipes;

     j. Air-driven pipes;

     k. Chillums;

     l. Bongs;

     m. Ice pipes or chillers; In determining whether an object is drug paraphernalia, a court or other authority should consider, in addition to all other logically relevant factors, the following:

     (a) Statements by an owner or by anyone in control of the object concerning its use;

     (b) Prior convictions, if any, of an owner, or of anyone in control of the object, under any state or federal law relating to any controlled substance or imitation controlled substance;

     (c) The proximity of the object, in time and space, to a direct violation of sections 195.005 to 195.425;

     (d) The proximity of the object to controlled substances or imitation controlled substances;

     (e) The existence of any residue of controlled substances or imitation controlled substances on the object;

     (f) Direct or circumstantial evidence of the intent of an owner, or of anyone in control of the object, to deliver it to persons who he knows, or should reasonably know, intend to use the object to facilitate a violation of sections 195.005 to 195.425; the innocence of an owner, or of anyone in control of the object, as to direct violation of sections 195.005 to 195.425 shall not prevent a finding that the object is intended for use, or designed for use as drug paraphernalia;

     (g) Instructions, oral or written, provided with the object concerning its use;

     (h) Descriptive materials accompanying the object which explain or depict its use;

     (i) National or local advertising concerning its use;

     (j) The manner in which the object is displayed for sale;

     (k) Whether the owner, or anyone in control of the object, is a legitimate supplier of like or related items to the community, such as a licensed distributor or dealer of tobacco products;

     (l) Direct or circumstantial evidence of the ratio of sales of the object to the total sales of the business enterprise;

     (m) The existence and scope of legitimate uses for the object in the community;

     (n) Expert testimony concerning its use;

     [(19)] (18) "Federal narcotic laws", the laws of the United States relating to controlled substances;

     [(20)] (19) "Hospital", a place [or institution devoted primarily to the purpose of providing facilities for the diagnosis, care or treatment of sick, injured, or handicapped individuals and licensed by the department of health of Missouri in keeping with the requirements of the "Hospital Licensing Law"] devoted primarily to the maintenance and operation of facilities for the diagnosis, treatment or care, for not less than twenty-four hours in any week, of three or more nonrelated individuals suffering from illness, disease, injury, deformity or other abnormal physical conditions; or a place devoted primarily to provide, for not less than twenty-four consecutive hours in any week, medical or nursing care for three or more nonrelated individuals. The term "hospital" does not include convalescent, nursing, shelter or boarding homes as defined in chapter 198, RSMo;

     [(21)] (20) "Immediate precursor", a substance which:

     (a) The state department of health has found to be and by rule designates as being the principal compound commonly used or produced primarily for use in the manufacture of a controlled substance;

     (b) Is an immediate chemical intermediary used or likely to be used in the manufacture of a controlled substance; and

     (c) The control of which is necessary to prevent, curtail or limit the manufacture of the controlled substance;

     [(22)] (21) "Imitation controlled substance", a substance that is not a controlled substance, which by dosage unit appearance (including color, shape, size and markings), or by representations made, would lead a reasonable person to believe that the substance is a controlled substance. In determining whether the substance is an "imitation controlled substance" the court or authority concerned should consider, in addition to all other logically relevant factors, the following:

     (a) Whether the substance was approved by the federal Food and Drug Administration for over-the-counter (nonprescription or nonlegend) sales and was sold in the federal Food and Drug Administration approved package, with the federal Food and Drug Administration approved labeling information;

     (b) Statements made by an owner or by anyone else in control of the substance concerning the nature of the substance, or its use or effect;

     (c) Whether the substance is packaged in a manner normally used for illicit controlled substances;

     (d) Prior convictions, if any, of an owner, or anyone in control of the object, under state or federal law related to controlled substances or fraud;

     (e) The proximity of the substances to controlled substances;

     (f) Whether the consideration tendered in exchange for the noncontrolled substance substantially exceeds the reasonable value of the substance considering the actual chemical composition of the substance and, where applicable, the price at which over-the-counter substances of like chemical composition sell. An imitation controlled substance does not include a noncontrolled substance that was initially introduced in commerce prior to the initial introduction into commerce of the controlled substance which it is alleged to imitate. Furthermore, an imitation controlled substance does not include a placebo or registered investigational drug either of which was manufactured, distributed, possessed or delivered in the ordinary course of professional practice or research;

     [(23) "Drug enforcement agency", the Drug Enforcement Administration in the United States Department of Justice, or its successor agency;]

     [(24)] (22) "Laboratory", a laboratory approved by the department of health as proper to be entrusted with the custody of controlled substances but does not include [an apothecary] a pharmacist who compounds controlled substances to be sold or dispensed on prescriptions;

     [(25)] (23) "Manufacture", the production, preparation, propagation, compounding or processing of drug paraphernalia or of a controlled substance, or an imitation controlled substance, either directly or by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container. This term does not include the preparation or compounding of a controlled substance or an imitation controlled substance by an individual for his own use or the preparation, compounding, packaging or labeling of a narcotic or dangerous drug:

     (a) By a practitioner as an incident to his administering or dispensing of a controlled substance or an imitation controlled substance in the course of his professional practice, or

     (b) By a practitioner or his authorized agent under his supervision, for the purpose of, or as an incident to, research, teaching or chemical analysis and not for sale;

     [(26)] (24) "Marijuana", all parts of the plant genus Cannabis in any species or form thereof, including, but not limited to Cannabis Sativa L., Cannabis Indica, Cannabis Americana, Cannabis Ruderalis, and Cannabis Gigantea, whether growing or not, the seeds thereof, the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil or cake, or the sterilized seed of the plant which is incapable of germination;

     [(27)] (25) "Narcotic drug", any of the following, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical analysis:

     (a) Opium, opiate, and any derivative, of opium or opiate, including their isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, whenever the existence of the isomers, esters, ethers, and salts is possible within the specific chemical designation. The term does not include the isoquinoline alkaloids of opium;

     (b) Coca leaves, but not including extracts of coca leaves from which cocaine, ecgonine, and derivatives of ecgonine or their salts have been removed;

     (c) Cocaine or any salt, isomer, or salt of isomer thereof;

     (d) Ecgonine, or any derivative, salt, isomer, or salt of isomer thereof;

     (e) Any compound, mixture, or preparation containing any quantity of any substance referred to in paragraphs (a) to (d) of this subdivision;

     [(28)] (26) "Official written order", an order written on a form provided for that purpose by the United States Commissioner of Narcotics, under any laws of the United States making provision therefor, if such order forms are authorized and required by federal law, and if no such order form is provided, then on an official form provided for that purpose by the department of health;

     [(29)] (27) "Opiate", any substance having an addiction-forming or addiction-sustaining liability similar to morphine or being capable of conversion into a drug having addiction-forming or addiction-sustaining liability. The term includes its racemic and levorotatory forms. It does not include, unless specifically controlled under section 195.017, the dextrorotatory isomer of 3-methoxy-n-methyl-morphinan and its salts (dextromethorphan);

     [(30)] (28) "Opium poppy", the plant of the species Papaver somniferum L., except its seeds;

     [(31)] (29) "Person", an individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, joint venture, association, or any other legal or commercial entity;

     (30) "Pharmacist", a licensed pharmacist as defined by the laws of this state, and where the context so requires, the owner of a store or other place of business where controlled substances are compounded or dispensed by a licensed pharmacist; but nothing in sections 195.005 to 195.425 shall be construed as conferring on a person who is not registered nor licensed as a pharmacist any authority, right or privilege that is not granted to him by the pharmacy laws of this state;

     [(32)] (31) "Poppy straw", all parts, except the seeds, of the opium poppy, after mowing;

     [(33)] (32) "Possessed" or "possessing a controlled substance", a person, with the knowledge of the presence and illegal nature of a substance, has actual or constructive possession of the substance. A person has actual possession if he has the substance on his person or within easy reach and convenient control. A person who, although not in actual possession, has the power and the intention at a given time to exercise dominion or control over the substance either directly or through another person or persons is in constructive possession of it. Possession may also be sole or joint. If one person alone has possession of a substance possession is sole. If two or more persons share possession of a substance, possession is joint;

     [(34)] (33) "Practitioner", a physician, dentist, optometrist, podiatrist, veterinarian, scientific investigator, pharmacy, hospital or other person licensed, registered or otherwise permitted by this state to distribute, dispense, conduct research with respect to or administer or to use in teaching or chemical analysis, a controlled substance in the course of professional practice or research in this state, or a pharmacy, hospital or other institution licensed, registered, or otherwise permitted to distribute, dispense, conduct research with respect to or administer a controlled substance in the course of professional practice or research;

     [(35)] (34) "Production", includes the manufacture, planting, cultivation, growing, or harvesting of drug paraphernalia or of a controlled substance or an imitation controlled substance;

     [(36)] (35) "Registry number", the number assigned to each person registered under the federal controlled substances laws;

     [(37)] (36) "Sale", includes barter, exchange, or gift, or offer therefor, and each such transaction made by any person, whether as principal, proprietor, agent, servant or employee;

     [(38)] (37) "State" when applied to a part of the United States, includes any state, district, commonwealth, territory, insular possession thereof, and any area subject to the legal authority of the United States of America;

     [(39)] (38) "Ultimate user", a person who lawfully possesses a controlled substance or an imitation controlled substance for his own use or for the use of a member of his household or for administering to an animal owned by him or by a member of his household;

     [(40)] (39) "Wholesaler", a person who supplies drug paraphernalia or controlled substances or imitation controlled substances that he himself has not produced or prepared, on official written orders, but not on prescriptions.

     195.017. 1. The department of health shall place a substance in Schedule I if it finds that the substance:

     (1) Has high potential for abuse; and

     (2) Has no accepted medical use in treatment in the United States or lacks accepted safety for use in treatment under medical supervision.

     2. Schedule I:

     (1) The controlled substances listed in this subsection are included in Schedule I;

     (2) Any of the following opiates, including their isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, unless specifically excepted, whenever the existence of these isomers, esters, ethers and salts is possible within the specific chemical designation:

     (a) Acetyl-alpha-methylfentanyl;

     (b) Acetylmethadol;

     (c) Allylprodine;

     (d) Alphacetylmethadol;

     (e) Alphameprodine;

     (f) Alphamethadol;

     (g) Alpha-methylfentanyl;

     (h) Alpha-methylthiofentanyl;

     (i) Benzethidine;

     (j) Betacetylmethadol;

     (k) Beta-hydroxyfentanyl;

     (l) Beta-hydroxy-3-methylfentanyl;

     (m) Betameprodine;

     (n) Betamethadol;

     (o) Betaprodine;

     (p) Clonitazene;

     (q) Dextromoramide;

     (r) Diampromide;

     (s) Diethylthiambutene;

     (t) Difenoxin;

     (u) Dimenoxadol;

     (v) Dimepheptanol;

     (w) Dimethylthiambutene;

     (x) Dioxaphetyl butyrate;

     (y) Dipipanone;

     (z) Ethylmethylthiambutene;

     (aa) Etonitazene;

     (bb) Etoxeridine;

     (cc) Furethidine;

     (dd) Hydroxypethidine;

     (ee) Ketobemidone;

     (ff) Levomoramide;

     (gg) Levophenacylmorphan;

     (hh) 3-Methylfentanyl;

     (ii) 3-Methylthiofentanyl;

     (jj) Morpheridine;

     (kk) MPPP;

     (ll) Noracymethadol;

     (mm) Norlevorphanol;

     (nn) Normethadone;

     (oo) Norpipanone;

     (pp) Para-fluorofentanyl;

     (qq) PEPAP;

     (rr) Phenadoxone;

     (ss) Phenampromide;

     (tt) Phenomorphan;

     (uu) Phenoperidine;

     (vv) Piritramide;

     (ww) Proheptazine;

     (xx) Properidine;

     (yy) Propiram;

     (zz) Racemoramide;

     (aaa) Thiofentanyl;

     (bbb) Tilidine;

     (ccc) Trimeperidine;

     (3) Any of the following opium derivatives, their salts, isomers and salts of isomers unless specifically excepted, whenever the existence of these salts, isomers and salts of isomers is possible within the specific chemical designation:

     (a) Acetorphine;

     (b) Acetyldihydrocodeine;

     (c) Benzylmorphine;

     (d) Codeine methylbromide;

     (e) Codeine-N-Oxide;

     (f) Cyprenorphine;

     (g) Desomorphine;

     (h) Dihydromorphine;

     (i) Drotebanol;

     (j) Etorphine; (except Hydrochloride Salt);

     (k) Heroin;

     (l) Hydromorphinol;

     (m) Methyldesorphine;

     (n) Methyldihydromorphine;

     (o) Morphine methylbromide;

     (p) Morphine methylsulfonate;

     (q) Morphine-N-Oxide;

     (r) Myrophine;

     (s) Nicocodeine;

     (t) Nicomorphine;

     (u) Normorphine;

     (v) Pholcodine;

     (w) Thebacon;

     (4) Any material, compound, mixture or preparation which contains any quantity of the following hallucinogenic substances, their salts, isomers and salts of isomers, unless specifically excepted, whenever the existence of these salts, isomers, and salts of isomers is possible within the specific chemical designation:

     (a) 4-bromo-2,5-dimethoxyamphetamine;

     (b) 4-bromo-2, 5-dimethoxyphenethylamine;

     (c) 2,5-dimethoxyamphetamine;

     [(c)] (d) 2,5-dimethoxy-4-ethylamphetamine;

     [(d)] (e) 4-methoxyamphetamine;

     [(e)] (f) 5-methoxy-3,4-methylenedioxyamphetamine;

     [(f)] (g) 4-methyl-2,5-dimethoxy amphetamine;

     [(g)] (h) 3,4-methylenedioxyamphetamine;

     [(h)] (i) 3,4-methylenedioxymethamphetamine;

     [(i)] (j) 3,4-methylenedioxy-N-ethylamphetamine;

     [(j)] (k) N-nydroxy-3, 4-methylenedioxyamphetamine;

     [(k)] (l) 3,4,5-trimethoxyamphetamine;

     (m) Alpha-ethyltryptamine;

     [(l)] (n) Bufotenine;

     [(m)] (o) Diethyltryptamine;

     [(n)] (p) Dimethyltryptamine;

     [(o)] (q) Ibogaine;

     [(p)] (r) Lysergic acid diethylamide;

     [(q)] (s) Marijuana; (Marihuana);

     [(r)] (t) Mescaline;

     [(s)] (u) Parahexyl;

     [(t)] (v) Peyote, to include all parts of the plant presently classified botanically as Lophophora Williamsil Lemaire, whether growing or not; the seeds thereof; any extract from any part of such plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seed or extracts;

     [(u)] (w) N-ethyl-3-piperidyl benzilate;

     [(v)] (x) N-methyl-3-piperidyl benzilate;

     [(w)] (y) Psilocybin;

     [(x)] (z) Psilocyn;

     [(y)] (aa) Tetrahydrocannabinols;

     [(z)] (bb) Ethylamine analog of phencyclidine;

     [(aa)] (cc) Pyrrolidine analog of phencyclidine;

     [(bb)] (dd) Thiophene analog of phencyclidine;

     [(cc)] (ee) 1-(1-(2-thienyl)cyclohexyl) pyrrolidine;

     (5) Any material, compound, mixture or preparation containing any quantity of the following substances having a depressant effect on the central nervous system, including their salts, isomers and salts of isomers whenever the existence of these salts, isomers and salts of isomers is possible within the specific chemical designation:

     (a) Mecloqualone;

     (b) Methaqualone;

     (6) Any material, compound, mixture or preparation containing any quantity of the following substances having a stimulant effect on the central nervous system, including their salts, isomers and salts of isomers:

     (a) Aminorex;

     (b) Cathinone;

     [(b)] (c) Fenethylline;

     (d) Methcathinone;

     [(c)] (e) (+)cis-4-methylaminorex ((+) cis-4, 5-dihydro-4-methyl-5-phenyl-2-oxazolamine);

     [(d)] (f) N-ethylamphetamine;

     [(e)] (g) N,N-dimethylamphetamine;

     (7) A temporary listing of substances subject to emergency scheduling under federal law shall include any material, compound, mixture or preparation which contains any quantity of the following substances:

     (a) N-(1-benzyl-4-piperidyl)-N-phenyl-propanamide (benzylfentanyl), its optical isomers, salts and salts of isomers;

     (b) N-(1-(2-thienyl) methyl-4-piperidyl)-N-phenylpropanamide (thenylfentanyl), its optical isomers, salts and salts of isomers[;

     (c) Methcathinone, which may also be known as: 2-methylamino-1-phenylpropan 1-one; ephedrone; monomethylpropion UR 1431, its salts, optical isomers and salts of optical isomers;

     (d) Aminorex, which may also be known as: aminoxaphen, 2-amino-5-phenyl-2-oxazoline or 4,5-dihydro-5-phenyl-2-oxazolamine, its salts, optical isomers and salts of optical isomers;

     (e) Alphaethyltryptamine, its optical isomers, salts and salts of isomers, which may also be known as: etryptamine; Alphaethyl-1 H-indole-3-ethanamine; 3-(2-aminobutyl) indole].

     3. The department of health shall place a substance in Schedule II if it finds that:

     (1) The substance has high potential for abuse;

     (2) The substance has currently accepted medical use in treatment in the United States, or currently accepted medical use with severe restrictions; and

     (3) The abuse of the substance may lead to severe psychic or physical dependence.

     4. The controlled substances listed in this subsection are included in Schedule II:

     (1) Any of the following substances whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by combination of extraction and chemical synthesis:

     (a) Opium and opiate and any salt, compound, derivative or preparation of opium or opiate, excluding apomorphine, thebaine-derived butorphanol, dextrorphan, nalbuphine, nalmefene, naloxone and naltrexone, and their respective salts but including the following:

     a. Raw opium;

     b. Opium extracts;

     c. Opium fluid;

     d. Powdered opium;

     e. Granulated opium;

     f. Tincture of opium;

     g. Codeine;

     h. Ethylmorphine;

     i. Etorphine hydrochloride;

     j. Hydrocodone;

     k. Hydromorphone;

     l. Metopon;

     m. Morphine;

     n. Oxycodone;

     o. Oxymorphone;

     p. Thebaine;

     (b) Any salt, compound, derivative, or preparation thereof which is chemically equivalent or identical with any of the substances referred to in this subdivision, but not including the isoquinoline alkaloids of opium;

     (c) Opium poppy and poppy straw;

     (d) Coca leaves and any salt, compound, derivative, or preparation of coca leaves, and any salt, compound, derivative, or preparation thereof which is chemically equivalent or identical with any of these substances, but not including decocainized coca leaves or extractions which do not contain cocaine or ecgonine;

     (e) Concentrate of poppy straw (the crude extract of poppy straw in either liquid, solid or powder form which contains the phenanthrene alkaloids of the opium poppy);

     (2) Any of the following opiates, including their isomers, esters, ethers, salts, and salts of isomers, whenever the existence of these isomers, esters, ethers and salts is possible within the specific chemical designation, dextrorphan and levopropoxyphene excepted:

     (a) Alfentanil;

     (b) Alphaprodine;

     (c) Anileridine;

     (d) Bezitramide;

     (e) Bulk Dextropropoxyphene;

     (f) Carfentanil;

     (g) Butyl nitrite;

     (h) Dihydrocodeine;

     (i) Diphenoxylate;

     (j) Fentanyl;

     (k) Isomethadone;

     (l) Levo-alphacetylmethadol;

     (m) Levomethorphan;

     (n) Levorphanol;

     (o) Metazocine;

     (p) Methadone;

     (q) Meperidine;

     (r) Methadone-Intermediate, 4-cyano-2-dimethylamino-4, 4-diphenylbutane;

     (s) Moramide-Intermediate, 2-methyl-3-morpholino-1, 1-diphenylpropane--carboxylic acid;

     (t) Pethidine;

     (u) Pethidine - Intermediate-A, 4 - cyano - 1 - methyl - 4 - phenylpiperidine;

     (v) Pethidine - Intermediate - B, ethyl - 4 - phenylpiperidine-4-carboxylate;

     (w) Pethidine - Intermediate - C, 1 - methyl-4-phenylpiperdine-4-carboxylic acid;

     (x) Phenazocine;

     (y) Piminodine;

     (z) Racemethorphan;

     (aa) Racemorphan;

     (bb) Sulfentanil;

     (3) Any material, compound, mixture, or preparation which contains any quantity of the following substances having a stimulant effect on the central nervous system:

     (a) Amphetamine, its salts, optical isomers, and salts of its optical isomers;

     (b) Methamphetamine, its salts, isomers, and salts of its isomers;

     (c) Phenmetrazine and its salts;

     (d) Methylphenidate;

     (4) Any material, compound, mixture, or preparation which contains any quantity of the following substances having a depressant effect on the central nervous system, including its salts, isomers, and salts of isomers whenever the existence of those salts, isomers, and salts of isomers is possible within the specific chemical designation:

     (a) Amobarbital;

     (b) Glutethimide;

     (c) Pentobarbital;

     (d) Phencyclidine;

     (e) Secobarbital;

     (5) Any material, compound or compound which contains any quantity of the following substances:

     (a) Dronabinol (synthetic) in sesame oil and encapsulated in a soft gelatin capsule in a United States Food and Drug Administration approved drug product;

     (b) Nabilone;

     (6) Any material, compound, mixture, or preparation which contains any quantity of the following substances:

     (a) Immediate precursor to amphetamine and methamphetamine: Phenylacetone;

     (b) Immediate precursors to phencyclidine (PCP):

     a. 1-phenylcyclohexylamine;

     b. 1-piperidinocyclohexanecarbonitrile (PCC).

     5. The department of health shall place a substance in Schedule III if it finds that:

     (1) The substance has a potential for abuse less than the substances listed in Schedules I and II;

     (2) The substance has currently accepted medical use in treatment in the United States; and

     (3) Abuse of the substance may lead to moderate or low physical dependence or high psychological dependence.

     6. The controlled substances listed in this subsection are included in Schedule III:

     (1) Any material, compound, mixture, or preparation which contains any quantity of the following substances having a potential for abuse associated with a stimulant effect on the central nervous system:

     (a) Benzphetamine;

     (b) Chlorphentermine;

     (c) Clortermine;

     (d) Phendimetrazine;

     (2) Any material, compound, mixture or preparation which contains any quantity or salt of the following substances or salts having a depressant effect on the central nervous system:

     (a) Any material, compound, mixture or preparation which contains any quantity or salt of the following substances combined with one or more active medicinal ingredients:

     a. Amobarbital;

     b. Secobarbital;

     c. Pentobarbital;

     (b) Any suppository dosage form containing any quantity or salt of the following:

     a. Amobarbital;

     b. Secobarbital;

     c. Pentobarbital;

     (c) Any substance which contains any quantity of a derivative of barbituric acid or its salt;

     (d) Chlorhexadol;

     (e) Lysergic acid;

     (f) Lysergic acid amide;

     (g) Methyprylon;

     (h) Sulfondiethylmethane;

     (i) Sulfonethylmethane;

     (j) Sulfonmethane;

     (k) Tiletamine and zolazepam or any salt thereof;

     (3) Nalorphine;

     (4) Any material, compound, mixture, or preparation containing limited quantities of any of the following narcotic drugs or their salts:

     (a) Not more than 1.8 grams of codeine per one hundred milliliters or not more than ninety milligrams per dosage unit, with an equal or greater quantity of an isoquinoline alkaloid of opium;

     (b) Not more than 1.8 grams of codeine per one hundred milliliters or not more than ninety milligrams per dosage unit with one or more active, nonnarcotic ingredients in recognized therapeutic amounts;

     (c) Not more than three hundred milligrams of [dihydrocodeinone] hydrocodone per one hundred milliliters or not more than fifteen milligrams per dosage unit, with a fourfold or greater quantity of an isoquinoline alkaloid of opium;

     (d) Not more than three hundred milligrams of [dihydrocodeinone] hydrocodone per one hundred milliliters or not more than fifteen milligrams per dosage unit, with one or more active nonnarcotic ingredients in recognized therapeutic amounts;

     (e) Not more than 1.8 grams of dihydrocodeine per one hundred milliliters or more than ninety milligrams per dosage unit, with one or more active nonnarcotic ingredients in recognized therapeutic amounts;

     (f) Not more than three hundred milligrams of ethylmorphine per one hundred milliliters or not more than fifteen milligrams per dosage unit, with one or more active, nonnarcotic ingredients in recognized therapeutic amounts;

     (g) Not more than five hundred milligrams of opium per one hundred milliliters or per one hundred grams or not more than twenty-five milligrams per dosage unit, with one or more active nonnarcotic ingredients in recognized therapeutic amounts;

     (h) Not more than fifty milligrams of morphine per one hundred milliliters or per one hundred grams, with one or more active, nonnarcotic ingredients in recognized therapeutic amounts;

     (5) Anabolic steroids. Unless specially excepted or unless listed in another schedule, any material, compound, mixture or preparation containing any quantity of the following substances, including its salts, isomers and salts of isomers whenever the existence of such salts of isomers is possible within the specific chemical designation:

     (a) Boldenone;

     (b) Chlorotestosterone (4-Chlortestosterone);

     (c) Clostebol;

     (d) Dehydrochlormethyltestosterone;

     (e) Dihydrostestosterone (4-Dihydro-testosterone);

     (f) Drostanolone;

     (g) Ethylestrenol;

     (h) Fluoxymesterone;

     (i) Formebulone (Formebolone);

     (j) Mesterolone;

     (k) Methandienone;

     (l) Methandranone;

     (m) Methandriol;

     (n) Methandrostenolone;

     (o) Methenolone;

     (p) Methyltestosterone;

     (q) Mibolerone;

     (r) Nandrolone;

     (s) Norethandrolone;

     (t) Oxandrolone;

     (u) Oxymesterone;

     (v) Oxymetholone;

     (w) Stanolone;

     (x) Stanozolol;

     (y) Testolactone;

     (z) Testosterone;

     (aa) Trenbolone;

     (bb) Any salt, ester, or isomer of a drug or substance described or listed in this subdivision, if that salt, ester or isomer promotes muscle growth except an anabolic steroid which is expressly intended for administration through implants to cattle or other nonhuman species and which has been approved by the secretary of health and human services for that administration.

     (6) The department of health may except by rule any compound, mixture, or preparation containing any stimulant or depressant substance listed in subdivisions (1) and (2) of this subsection from the application of all or any part of sections 195.010 to 195.320 if the compound, mixture, or preparation contains one or more active medicinal ingredients not having a stimulant or depressant effect on the central nervous system, and if the admixtures are included therein in combinations, quantity, proportion, or concentration that vitiate the potential for abuse of the substances which have a stimulant or depressant effect on the central nervous system.

     7. The department of health shall place a substance in Schedule IV if it finds that:

     (1) The substance has a low potential for abuse relative to substances in Schedule III;

     (2) The substance has currently accepted medical use in treatment in the United States; and

     (3) Abuse of the substance may lead to limited physical dependence or psychological dependence relative to the substances in Schedule III.

     8. The controlled substances listed in this subsection are included in Schedule IV:

     (1) Any material, compound, mixture, or preparation containing any of the following narcotic drugs or their salts calculated as the free anhydrous base or alkaloid, in limited quantities as set forth below:

     (a) Not more than one milligram of difenoxin and not less than twenty-five micrograms of atropine sulfate per dosage unit;

     (b) Dextropropoxyphene (alpha-(+)-4-dimethy-lamino-1,2-diphenyl-3-methyl-2-propionoxybutane);

     (c) Any of the following limited quantities of narcotic drugs or their salts, which shall include one or more nonnarcotic active medicinal ingredients in sufficient proportion to confer upon the compound, mixture or preparation valuable medicinal qualities other than those possessed by the narcotic drug alone:

     a. Not more than two hundred milligrams of codeine per one hundred milliliters or per one hundred grams;

     b. Not more than one hundred milligrams of dihydrocodeine per one hundred milliliters or per one hundred grams;

     c. Not more than one hundred milligrams of ethylmorphine per one hundred milliliters or per one hundred grams;

     (2) Any material, compound, mixture or preparation containing any quantity of the following substances, including their salts, isomers, and salts of isomers whenever the existence of those salts, isomers, and salts of isomers is possible within the specific chemical designation:

     (a) Alprazolam;

     (b) Barbital;

     (c) Bromazepam;

     (d) Camazepam;

     (e) Chloral betaine;

     (f) Chloral hydrate;

     (g) Chlordiazepoxide;

     (h) Clobazam;

     (i) Clonazepam;

     (j) Clorazepate;

     (k) Clotiazepam;

     (l) Cloxazolam;

     (m) Delorazepam;

     (n) Diazepam;

     (o) Estazolam;

     (p) Ethchlorvynol;

     (q) Ethinamate;

     (r) Ethyl loflazepate;

     (s) Fludiazepam;

     (t) Flunitrazepam;

     (u) Flurazepam;

     (v) Halazepam;

     (w) Haloxazolam;

     (x) Ketazolam;

     (y) Loprazolam;

     (z) Lorazepam;

     (aa) Lormetazepam;

     (bb) Mebutamate;

     (cc) Medazepam;

     (dd) Meprobamate;

     (ee) Methohexital;

     (ff) Methylphenobarbital;

     (gg) Midazolam;

     (hh) Nimetazepam;

     (ii) Nitrazepam;

     (jj) Nordiazepam;

     (kk) Oxazepam;

     (ll) Oxazolam;

     (mm) Paraldehyde;

     (nn) Petrichloral;

     (oo) Phenobarbital;

     (pp) Pinazepam;

     (qq) Prazepam;

     (rr) Quazepam;

     (ss) Temazepam;

     (tt) Tetrazepam;

     (uu) Triazolam;

     (vv) Zolpidem;

     (3) Any material, compound, mixture, or preparation which contains any quantity of the following substance including its salts, isomers and salts of isomers whenever the existence of such salts, isomers and salts of isomers is possible: fenfluramine;

     (4) Any material, compound, mixture or preparation containing any quantity of the following substances having a stimulant effect on the central nervous system, including their salts, isomers and salts of isomers:

     (a) Cathine ((+)-norpseudoephedrine);

     (b) Diethylpropion;

     (c) Fencamfamin;

     (d) Fenproporex;

     (e) Mazindol;

     (f) Mefenorex;

     (g) Pemoline, including organometallic complexes and chelates thereof;

     (h) Phentermine;

     (i) Pipradrol;

     (j) SPA ((-)-1-dimethyamino-1,2-diphenylethane);

     (5) Any material, compound, mixture or preparation containing any quantity of the following substance, including its salts: pentazocine;

     (6) Any material, compound, mixture or preparation which contains any quantity of the following substances having a stimulant effect on the central nervous system including their salts, isomers and salts of isomers: ephedrine or its salts, optical isomers, or salts of optical isomers as the only active medicinal ingredient or contains ephedrine or its salts, optical isomers, or salts of optical isomers and therapeutically insignificant quantities of another active medicinal ingredient;

     (7) The department of health may except by rule any compound, mixture, or preparation containing any depressant substance listed in subdivision (1) of this subsection from the application of all or any part of sections 195.010 to 195.320 if the compound, mixture, or preparation contains one or more active medicinal ingredients not having a depressant effect on the central nervous system, and if the admixtures are included therein in combinations, quantity, proportion, or concentration that vitiate the potential for abuse of the substances which have a depressant effect on the central nervous system.

     9. The department of health shall place a substance in Schedule V if it finds that:

     (1) The substance has low potential for abuse relative to the controlled substances listed in Schedule IV;

     (2) The substance has currently accepted medical use in treatment in the United States; and

     (3) The substance has limited physical dependence or psychological dependence liability relative to the controlled substances listed in Schedule IV.

     10. The controlled substances listed in this subsection are included in Schedule V:

     (1) Any material, compound, mixture or preparation containing any of the following narcotic drug and its salts: buprenorphine;

     (2) Any compound, mixture or preparation containing any of the following narcotic drugs or their salts calculated as the free anhydrous base or alkaloid, in limited quantities as set forth below, which also contains one or more nonnarcotic active medicinal ingredients in sufficient proportion to confer upon the compound, mixture or preparation valuable medicinal qualities other than those possessed by the narcotic drug alone:

     (a) Not more than two and five-tenths milligrams of diphenoxylate and not less than twenty-five micrograms of atropine sulfate per dosage unit;

     (b) Not more than one hundred milligrams of opium per one hundred milliliters or per one hundred grams;

     (c) Not more than five-tenths milligram of difenoxin and not less than twenty-five micrograms of atropine sulfate per dosage unit;

     (3) Any material, compound, mixture or preparation which contains any quantity of the following substance having a stimulant effect on the central nervous system including its salts, isomers and salts of isomers: pyrovalerone.

     11. The department of health shall revise and republish the schedules annually.

     195.022. A controlled substance analogue shall, to the extent intended for human consumption, be treated, for the purposes of any state law, as a controlled substance in schedule I.

     195.030. 1. The department of health upon public notice and hearing pursuant to this section and chapter 536, RSMo, may promulgate rules and charge reasonable fees relating to the registration and control of the manufacture, distribution and dispensing of controlled substances within this state. No rule or portion of a rule promulgated under the authority of this chapter shall become effective unless it has been promulgated pursuant to the provisions of section 536.024, RSMo.

     2. No person shall manufacture, compound, mix, cultivate, grow, or by any other process produce or prepare, distribute, dispense or prescribe any controlled substance and no person as a wholesaler shall supply the same, without having first obtained annually a registration issued by the department of health in accordance with rules and regulations promulgated by it.

     3. Persons registered by the department of health under sections 195.005 to 195.425 to manufacture, distribute, or dispense or conduct research with controlled substances are authorized to possess, manufacture, distribute or dispense such substances, including any such activity in the conduct of research, to the extent authorized by their registration and in conformity with other provisions of sections 195.005 to 195.425.

     4. The following persons shall not be required to register and may lawfully possess controlled substances under sections 195.005 to 195.425:

     (1) An agent or employee, excluding physicians, dentists, optometrists, podiatrists or veterinarians, of any registered manufacturer, distributor, or dispenser of any controlled substance if such agent is acting in the usual course of his business or employment;

     (2) A common or contract carrier or warehouseman, or an employee thereof, whose possession of any controlled substance is in the usual course of business or employment;

     (3) An ultimate user or a person in possession of any controlled substance pursuant to a lawful order of a practitioner or in lawful possession of a Schedule V substance.

     5. The department of health may, by regulation, waive the requirement for registration of certain manufacturers, distributors, or dispensers if it finds it consistent with the public health and safety.

     6. A separate registration shall be required at each principal place of business or professional practice where the applicant manufactures, distributes, or dispenses controlled substances.

     7. The department of health is authorized to inspect the establishment of a registrant or applicant in accordance with the provisions of sections 195.005 to 195.425.

     195.040. 1. No registration shall be issued under section 195.030 unless and until the applicant therefor has furnished proof satisfactory to the department of health:

     (1) That the applicant is of good moral character or, if the applicant be an association or corporation, that the managing officers are of good moral character;

     (2) That the applicant is equipped as to land, buildings, and paraphernalia properly to carry on the business described in his application.

     2. No registration shall be granted to any person who has within five years been finally adjudicated and found guilty, or entered a plea of guilty or nolo contendere, in a criminal prosecution under the laws of any state or of the United States, for any offense related to controlled substances. No registration shall be granted to any person who is abusing controlled substances.

     3. The department of health shall register an applicant to manufacture, distribute or dispense controlled substances unless it determines that the issuance of that registration would be inconsistent with the public interest. In determining the public interest, the following factors shall be considered:

     (1) Maintenance of effective controls against diversion of controlled substances into other than legitimate medical, scientific, or industrial channels;

     (2) Compliance with applicable state and local law;

     (3) Any convictions of an applicant under any federal or state laws relating to any controlled substance;

     (4) Past experience in the manufacture or distribution of controlled substances and the existence in the applicant's establishment of effective controls against diversion;

     (5) Furnishing by the applicant of false or fraudulent material information in any application filed under sections 195.005 to 195.425;

     (6) Suspension or revocation of the applicant's federal registration to manufacture, distribute or dispense narcotics or controlled dangerous drugs as authorized by federal law; and

     (7) Any other factors relevant to and consistent with the public health and safety.

     4. Registration does not entitle a registrant to manufacture and distribute controlled substances in Schedule I or II other than those specified in the registration.

     5. Practitioners shall be registered to dispense any controlled substance or to conduct research with controlled substances in Schedules II through V if they are authorized to dispense or conduct research under the laws of this state. The department of health need not require separate registration under sections 195.005 to 195.425 for practitioners engaging in research with nonnarcotic substances in Schedules II through V where the registrant is already registered under sections 195.005 to 195.425 in another capacity. Practitioners registered under federal law to conduct research with Schedule I substances may conduct research with Schedule I substances within this state upon furnishing the department of health evidence of that federal registration.

     6. Compliance by manufacturers and distributors with the provisions of federal law respecting registration (excluding fees) shall entitle them to be registered under sections 195.005 to 195.425.

     7. A registration to manufacture, distribute, or dispense a controlled substance may be suspended or revoked by the department of health upon a finding that the registrant:

     (1) Has furnished false or fraudulent material information in any application filed under sections 195.005 to 195.425;

     (2) Has been convicted of a felony under any state or federal law relating to any controlled substance;

     (3) Has had his federal registration to manufacture, distribute or dispense suspended or revoked; [or]

     (4) Has violated any federal controlled substances statute or regulation, or any provision of sections 195.005 to 195.425 or regulation promulgated pursuant to sections 195.005 to 195.425; or

     (5) Has had the registrant's professional license to practice suspended or revoked.

     8. The department of health may warn or censure a registrant; limit a registration to particular controlled substances or schedules of controlled substances; limit revocation or suspension of a registration to a particular controlled substance with respect to which grounds for revocation or suspension exist; restrict or limit a registration under such terms and conditions as the department of health considers appropriate for a period of five years; suspend or revoke a registration for a period not to exceed five years; or deny an application for registration. In any order of revocation, the department of health may provide that the registrant may not apply for a new registration for a period of time ranging from one to five years following the date of the order of revocation. All stay orders shall toll this time period. Any registration placed under a limitation or restriction by the department of health shall be termed "under probation".

     9. If the department of health suspends or revokes a registration, all controlled substances owned or possessed by the registrant at the time of suspension or the effective date of the revocation order may be placed under seal by such agency and held pending final disposition of the case. No disposition may be made of substances under seal until the time for taking an appeal has elapsed or until all appeals have been concluded, unless a court, upon application therefor, orders the sale of perishable substances and the deposit of the proceeds of the sale with the court. Upon a revocation order becoming final, all [narcotic and dangerous drugs] controlled substances may be forfeited to the state.

     10. The department of health shall promptly notify the [Bureau of Narcotics and Dangerous Drugs] Drug Enforcement Administration, United States Department of Justice, or its successor agency, of all orders suspending or revoking registration and all forfeitures of controlled substances.

     11. If after first providing the registrant an opportunity for an informal conference, the department of health proposes to deny, suspend, restrict, limit or revoke a registration or refuse a renewal of registration, the department of health shall serve upon the applicant or registrant written notice of the proposed action to be taken on the application or registration. The notice shall contain a statement of the type of discipline proposed, the basis therefor, the date such action shall go into effect and a statement that the registrant shall have thirty days to request in writing a hearing before the administrative hearing commission. If no written request for a hearing is received by the department of health within thirty days of the applicant's or registrant's receipt of the notice, the proposed discipline shall take effect thirty-one days from the date the original notice was received by the applicant or registrant. If the registrant or applicant makes a written request for a hearing, the department of health shall file a complaint with the administrative hearing commission within sixty days of receipt of the written request for a hearing. The complaint shall comply with the laws and regulations for actions brought before the administrative hearing commission. The department of health may issue letters of censure or warning and may enter into agreements with a registrant or applicant which restrict or limit a registration without formal notice or hearing.

     12. The department of health may suspend any registration simultaneously with the institution of proceedings under subsection 7 of this section if the department of health finds that there is imminent danger to the public health or safety which warrants this action. The suspension shall continue in effect until the conclusion of the proceedings, including review thereof, unless sooner withdrawn by the department of health, dissolved by a court of competent jurisdiction or stayed by the administrative hearing commission.

     195.045. Any person, organization, association or corporation who reports or provides information to the department of health pursuant to the provisions of this chapter and who does so in good faith shall not be subject to an action for civil damages as a result thereof.

     195.060. 1. Except as provided in subsection 3 of this section, a pharmacist [or an apothecary], in good faith, may sell and dispense controlled substances to any person only upon a [written or oral] prescription, as defined by regulation by the department of health, of [a physician, dentist, podiatrist, or veterinarian] an authorized practitioner, provided that the controlled substances listed in Schedule V may be sold without prescription but only in accordance with federal regulations. All written prescriptions shall be signed by the person prescribing the same. All prescriptions shall be dated on the day when issued and bearing the full name and address of the patient for whom, or of the owner of the animal for which, the drug is prescribed, and the full name, address, and the registry number under the federal controlled substances laws of the person prescribing, if he is required by those laws to be so registered. If the prescription is for an animal, it shall state the species of the animal for which the drug is prescribed. The person filling the prescription shall write the date of filling and his own signature on the prescription. The prescription shall be retained on file by the proprietor of the pharmacy in which it is filled for a period of two years, so as to be readily accessible for inspection by any public officer or employee engaged in the enforcement of this law. No prescription for a drug in Schedule I or II shall be filled more than six months after the date prescribed; no prescription for a drug in schedule I or II shall be refilled; no prescription for a drug in Schedule III or IV shall be filled or refilled more than six months after the date of the original prescription or be refilled more than five times unless renewed by the practitioner. [A controlled substance included in Schedule V shall not be distributed or dispensed other than for a medical purpose.]

     2. The legal owner of any stock of controlled substances in a pharmacy, upon discontinuance of dealing in such drugs, may sell the stock to a manufacturer, wholesaler, or [apothecary] pharmacist, but only on an official written order.

     3. [An apothecary or] A pharmacist, in good faith, may sell and dispense, any Schedule II drug or drugs to any person, in emergency situations as defined by rule of the department of health upon an oral prescription by [a practicing physician, podiatrist, veterinarian or dentist] an authorized practitioner, provided such person shall furnish the pharmacist with a written prescription within seventy-two hours, containing the date, name and address prescribing same and their registry number under the federal narcotic laws and bearing the full name and address of the patient for whom, or the owner of the animal for which, the drug is dispensed; provided the drug or drugs prescribed by such oral prescription have been listed by the director of the department of health as provided for in section 195.195. If the oral prescription is for an animal, it shall state the species of the animal for which the drug is prescribed. The person filling the oral prescription shall write the date of filling, and his own signature on the prescription. The prescription shall be retained on file by the proprietor of the pharmacy in which it is filled, for a period of two years so as to be readily accessible for inspection by any public officer or employee engaged in the enforcement of sections 195.005 to 195.425.

     4. It shall be unlawful for [narcotics or hallucinogenic drugs] controlled substances to be promoted or advertised for use or sale, provided that this subsection shall not prohibit such activity by a manufacturer, wholesaler, or their agents directed to a physician, pharmacist or other practitioner.

     5. Except where a bona fide physician-patient-pharmacist relationship exists, prescriptions for narcotics or hallucinogenic drugs shall not be delivered to or for an ultimate user or agent by mail or other common carrier.

     195.070. 1. A physician, podiatrist, dentist, or a registered optometrist certified to administer pharmaceutical agents as provided in section 336.220, RSMo, in good faith and in the course of his professional practice only, may prescribe, administer, and dispense controlled substances or he may cause the same to be administered or dispensed by a nurse or graduate physician under his direction and supervision.

     2. A veterinarian, in good faith and in the course of his professional practice only, and not for use by a human being, may prescribe, administer, and dispense controlled substances and he may cause them to be administered by an assistant or orderly under his direction and supervision.

     3. [Any person who has obtained from a physician, podiatrist, dentist, optometrist, or veterinarian any controlled substance for administration to a patient during the absence of such physician, podiatrist, dentist, optometrist, or veterinarian, shall return to such physician, dentist, podiatrist, optometrist, or veterinarian any unused portion of such drug, when it is no longer required by the patient.] A practitioner shall not accept any portion of a controlled substance unused by a patient, for any reason, if such practitioner did not originally dispense the drug.

     4. An individual practitioner may not prescribe or dispense a controlled substance for such practitioner's personal use except in a medical emergency.

     195.080. 1. Except as otherwise in sections 195.005 to 195.425 specifically provided, sections 195.005 to 195.425 shall not apply to the following cases: Prescribing, administering, dispensing or selling at retail of liniments, ointments, and other preparations that are susceptible of external use only and that contain controlled substances in such combinations of drugs as to prevent the drugs from being readily extracted from such liniments, ointments, or preparations, except that sections 195.005 to 195.425 shall apply to all liniments, ointments, and other preparations that contain coca leaves in any quantity or combination.

     2. The quantity of Schedule II controlled substances prescribed or dispensed at any one time shall be limited to a thirty-day supply. The quantity of Schedule III, IV or V controlled substances prescribed or dispensed at any one time shall be limited to a ninety-day supply and shall be prescribed and dispensed in compliance with the general provisions of sections 195.005 to 195.425. The supply limitations provided in this subsection may be increased up to [six] three months if the physician describes on the prescription form the medical reason for requiring the larger supply.

     3. The partial filling of a prescription for a Schedule II substance is permissible as defined by regulation by the department of health.

     195.100. 1. It shall be unlawful to distribute any controlled substance in a commercial container unless such container bears a label containing an identifying symbol for such substance in accordance with federal laws.

     2. It shall be unlawful for any manufacturer of any controlled substance to distribute such substance unless the labeling thereof conforms to the requirements of federal law and contains the identifying symbol required in subsection 1 of this section.

     3. The label of a controlled substance in Schedule II, III or IV shall, when dispensed to or for a patient, contain a clear, concise warning that it is a criminal offense to transfer such narcotic or dangerous drug to any person other than the patient.

     4. Whenever a manufacturer sells or dispenses a controlled substance and whenever a wholesaler sells or dispenses a controlled substance in a package prepared by him, he shall securely affix to each package in which that drug is contained, a label showing in legible English the name and address of the vendor and the quantity, kind, and form of controlled substance contained therein. No person except [an apothecary] a pharmacist for the purpose of filling a prescription under sections 195.005 to 195.425, shall alter, deface, or remove any label so affixed.

     5. Whenever [an apothecary] a pharmacist or practitioner sells or dispenses any controlled substance on a prescription issued by a physician, dentist, podiatrist or veterinarian, he shall affix to the container in which such drug is sold or dispensed, a label showing his own name and address of the [apothecary] pharmacist or practitioner for whom he is lawfully acting; the name of the patient or, if the patient is an animal, the name of the owner of the animal and the species of the animal; the name, of the physician, dentist, podiatrist or veterinarian, by whom the prescription was written; and such directions as may be stated on the prescription. No person shall alter, deface, or remove any label so affixed.

     195.110. A person to whom or for whose use any controlled substance in Schedule II has been prescribed, sold, or dispensed by a physician, dentist, podiatrist, or [apothecary] pharmacist, or other person authorized under the provisions of section 195.050 and the owner of any animal for which any such drug has been prescribed, sold, or dispensed, by a veterinarian, may lawfully possess it only in the container in which it was delivered to him by the person selling or dispensing the same.

     195.197. The department of health shall cooperate with federal and other state agencies including the board of pharmacy in discharging its responsibilities concerning traffic in controlled substances, narcotic or dangerous drugs and in suppressing the abuse of controlled substances. To this end, it is authorized to:

     (1) Arrange for the exchange of information between governmental officials concerning the use and abuse of controlled substances;

     (2) Coordinate and cooperate in training programs on controlled substance law enforcement at the local and state levels[;

     (3) Conduct programs of eradication aimed at destroying wild or illicit growth of plant species from which controlled substances may be extracted].

     195.204. 1. A person commits the offense of fraudulently attempting to obtain a controlled substance if he obtains or attempts to obtain a controlled substance or procures or attempts to procure the administration of the controlled substance by fraud, deceit, misrepresentation, or subterfuge; or by the forgery or alteration of a prescription or of any written order; or by the concealment of a material fact; or by the use of a false name or the giving of a false address. The crime of fraudulently attempting to obtain a controlled substance shall include, but shall not be limited to nor be limited by, the following:

     (1) Knowingly making a false statement in any prescription, order, report, or record, required by sections 195.005 to 195.425;

     (2) For the purpose of obtaining a controlled substance, falsely assuming the title of, or representing oneself to be, a manufacturer, wholesaler, [apothecary] pharmacist, physician, dentist, podiatrist, veterinarian, or other authorized person;

     (3) Making or uttering any false or forged prescription or false or forged written order;

     (4) Affixing any false or forged label to a package or receptacle containing controlled substances;

     (5) Possess a false or forged prescription with intent to obtain a controlled substance.

     2. Fraudulently attempting to obtain a controlled substance is a class D felony.

     3. Information communicated to a physician in an effort unlawfully to procure a controlled substance or unlawfully to procure the administration of any such drug shall not be deemed a privileged communication; provided, however, that no physician or surgeon shall be competent to testify concerning any information which he may have acquired from any patient while attending him in a professional character and which information was necessary to enable him to prescribe for such patient as a physician, or to perform any act for him as a surgeon.

     4. The provisions of this section shall apply to all transactions relating to narcotic drugs under the provisions of section 195.080, in the same way as they apply to transactions under all other sections.

     195.400. 1. As used in sections 195.400 to 195.425 the term "person" means any individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity.

     2. Any manufacturer, wholesaler, retailer, or other person who sells, transfers, or otherwise furnishes any of the following substances to any person shall submit to the department of health a report, as prescribed by the department of health, of all such transactions:

     (1) Anthranilic acid and its salts;

     (2) Benzyl cyanide;

     (3) Ergotamine and its salts;

     (4) Ergonovine and its salts;

     (5) N-Acetylanthranilic acid and its salts;

     (6) Phenylacetic acid and its salts;

     (7) Piperidine and its salts;

     (8) 3,4,-Methylenedioxyphenyl-2-propanone;

     (9) Acetic anhydride;

     (10) Acetone;

     (11) Benzyl Chloride;

     (12) Ethyl ether;

     (13) Hydriodic acid;

     (14) Potassium permanganate;

     (15) 2-Butanone (or Methyl Ethyl Ketone or MEK);

     (16) Toluene;

     (17) Ephedrine, its salts, optical isomers, and salts of optical isomers;

     (18) Norpseudoephedrine, its salts, optical isomers, and salts of optical isomers;

     (19) Phenylpropanolamine, its salts, optical isomers, and salts of optical isomers;

     (20) Pseudoephedrine, its salts, optical isomers, and salts of optical isomers;

     (21) Methylamine and its salts;

     (22) Ethylamine and its salts;

     (23) Proprionic anhydride;

     (24) Insosafrole (Isosafrole);

     (25) Safrole;

     (26) Piperonal;

     (27) N-Methylephedrine, its salts, optical isomers and salts of optical isomers;

     (28) N-Methylpseudoephedrine, its salts, optical isomers and salts of optical isomers;

     (29) Benzaldehyde;

     (30) Nitroethane;

     (31) Acetic anhydride;

     (32) Methyl Isobutyl Ketone (MIBK);

     (33) Hydriotic acid.

     3. The chemicals listed or to be listed in the schedule in subsection 2 of this section are included by whatever official, common, usual, chemical, or trade name designated.

     4. The department of health by rule or regulation may add substances to or delete substances from subsection 2 of this section in the manner prescribed under section 195.017, if such substance is a component of or may be used to produce a controlled substance.

     5. Any manufacturer, wholesaler, retailer or other person shall, prior to selling, transferring, or otherwise furnishing any substance listed in subsection 2 of this section to a person within this state, require such person to give proper identification. For the purposes of this section "proper identification" means:

     (1) A motor vehicle operator's license or other official state-issued identification which contains a photograph of the person and includes the residential or mailing address of the person, other than a post office box number;

     (2) The motor vehicle license number of any motor vehicle operated by the person;

     (3) A letter of authorization from the business to which any of the substances listed in subsection 2 of this section are being transferred, which shall include the address of the business and business license number if the business is required to have a license number;

     (4) A full description of how the substance is to be used; and

     (5) The signature of the person to whom such substances are transferred. The person selling, transferring, or otherwise furnishing any substance listed in subsection 2 of this section shall affix his signature, to the document which evidences that a sale or transfer has been made, as a witness to the signature and proper identification of the person purchasing such substance.

     6. Any manufacturer, wholesaler, retailer, or other person who sells, transfers, or otherwise furnishes any substance listed in subsection 2 of this section to a person shall, not less than twenty-one days prior to the delivery of the substance, submit a report of the transaction as prescribed by the department of health, which shall include the proper identification information. The department of health may allow the submission of such reports on a monthly basis with respect to repeated, regular transactions between a person who furnishes such substances and the person to whom such substances are delivered, if the department determines that either:

     (1) A pattern of regular supply of the substance exists between the manufacturer, wholesaler, retailer, or other person who sells, transfers, or otherwise furnishes such substance and the person to whom such substance is delivered; or

     (2) The person to whom such substance is delivered has established a record of utilization of the substance for lawful purposes.

     7. This section shall not apply to any of the following:

     (1) Any pharmacist, pharmacy, or other authorized person who sells or furnishes a substance listed in subsection 2 of this section upon the prescription or order of a physician, dentist, podiatrist or veterinarian;

     (2) Any physician, optometrist, dentist, podiatrist or veterinarian who administers, dispenses or furnishes a substance listed in subsection 2 of this section to his patients within the scope of his professional practice. Such [adminstration] administration or dispensing shall be recorded in the patient record;

     (3) Any sale, transfer, furnishing or receipt of any drug which contains any substance listed in subsection 2 of this section and which is lawfully sold, transferred, or furnished over the counter without a prescription pursuant to the federal Food, Drug and Cosmetic Act of regulations adopted thereunder.

     8. (1) Any violation of subsection 5 of this section shall be a class D felony.

     (2) Any person subject to subsection 6 of this section who does not submit a report as required or who knowingly submits a report with false or fictitious information shall be guilty of a class D felony and subject to a fine not exceeding ten thousand dollars.

     (3) Any person who is found guilty a second time of not submitting a report as required in subsection 6 of this section or who knowingly submits such a report with false or fictitious information shall be guilty of a class C felony and subject to a fine not exceeding one hundred thousand dollars.

     195.410. 1. No registration shall be issued under section 195.405 unless and until the applicant for such registration has furnished proof satisfactory to the department of health that:

     (1) The applicant is of good moral character or, if the applicant is an association or corporation, that the managing officers are of good moral character; and

     (2) The applicant is properly equipped as to land, building, and paraphernalia to carry on the business described in his application.

     2. No registration shall be granted to any person who has within five years been finally adjudicated and found guilty, or entered a plea of guilty or nolo contendere, in a criminal prosecution under the laws of any state or of the United States, for any offense related to controlled substances or chemicals listed in subsection 2 of section 195.400.

     3. The department of health shall register an applicant to manufacture, distribute, sell, transfer, or otherwise furnish listed chemicals unless it determines that the issuance of that registration would be inconsistent with the public interest. In determining the public interest, the following factors shall be considered:

     (1) Maintenance of effective controls against diversion of controlled substances or chemicals listed in subsection 2 of section 195.400 into other than legitimate medical, scientific, or industrial channels;

     (2) Compliance with applicable state and local law;

     (3) Any convictions of an applicant under any federal or state laws relating to any controlled substance or chemicals listed in subsection 2 of section 195.400;

     (4) Past experience in the manufacture or distribution of controlled substances or chemicals listed in subsection 2 of section 195.400 and the existence in the applicant's establishment of effective controls against diversion;

     (5) Furnishing by the applicant of false or fraudulent material information in any application filed under section 195.405; and

     (6) Any other factors that the department of health determines to be relevant to and consistent with the public health and safety.

     4. Registration does not entitle a registrant to manufacture and distribute chemicals listed in subsection 2 of section 195.400 other than those specified in the registrant's registration.

     5. A registration to manufacture, distribute, sell, transfer, or otherwise furnish or dispense a controlled substance or chemical listed in subsection 2 of section 195.400 may be suspended or revoked by the department of health upon a finding that the registrant has:

     (1) Furnished false or fraudulent material information in any application filed under section 195.405;

     (2) Been convicted of a felony under any state or federal law relating to any controlled substance or chemical listed in subsection 2 of section 195.400;

     (3) Had his federal authority to manufacture, distribute or dispense controlled substances or chemicals listed in subsection 2 of section 195.400 suspended or revoked; or

     (4) Violated any federal controlled substances or chemicals statute or regulation, or any provision of sections 195.005 to 195.425 or regulation promulgated pursuant to sections 195.005 to 195.425.

     6. The department of health may limit revocation or suspension of a registration to a particular listed chemical with respect to which grounds for revocation or suspension exist.

     7. If the department of health suspends or revokes a registration, all listed chemicals owned or possessed by the registrant at the time of suspension or the effective date of the revocation order may be placed under seal by the department and held pending final disposition of the case. No disposition may be made of chemicals under seal until the time for taking an appeal has elapsed or until all appeals have been concluded, unless a court, upon application therefor, orders the sale of perishable chemicals and the deposit of the proceeds of the sale with the court. Upon a revocation order becoming final, all chemicals may be forfeited to the state.

     8. The department of health shall promptly notify the Drug Enforcement Administration, United States Department of Justice or their successor agencies, of all orders suspending or revoking registration and all forfeitures of controlled substances.

     9. [Before denying, suspending or revoking a registration or refusing a renewal of registration, the department of health shall serve upon the applicant or registrant an order to show cause why registration should not be denied, revoked or suspended or why the renewal should not be refused. The order to show cause shall contain a statement of the basis therefor and shall call upon the applicant or registrant to appear before the department of health at a time and place not less than thirty days after the date of service of the order, but in the case of a denial or renewal of registration the show-cause order shall be served not later than thirty days before the expiration of the registration.] A registration to manufacture or distribute listed chemicals may be suspended or revoked by the department of health upon a finding that the registrant:

     (1) Has furnished false or fraudulent material information in any application filed under sections 195.005 to 195.425;

     (2) Has been convicted of a felony under any state or federal law relating to any controlled substance or listed chemical;

     (3) Has had a federal registration to manufacture, distribute or dispense controlled substances or a federal registration to manufacture or distribute listed chemicals suspended or revoked; or

     (4) Has violated any federal controlled substances or listed chemical statute or regulation, or any provision of sections 195.005 to 195.425 or regulation promulgated pursuant to sections 195.005 to 195.425.

     10. [If the department of health shall refuse any person registration under sections 195.400 to 195.425, or shall revoke or suspend registration already issued under sections 195.400 to 195.425, the person shall have the right to seek a determination on such refusal, revocation or suspension by the administrative hearing commission.] The department of health may:

     (1) Warn or censure a registrant;

     (2) Limit a registration to particular listed chemicals;

     (3) Limit revocation or suspension of a registration to a particular listed chemical with respect to which grounds for revocation or suspension exist;

     (4) Restrict or limit a registration under such terms and conditions as the department of health considers appropriate for a period of five years;

     (5) Suspend or revoke a registration for a period not to exceed five years; or

     (6) Deny an application for registration.

In any order of revocation, the department of health may provide that the registrant may not apply for a new registration for one to five years following the date of such order. Any stay order shall toll this time period.

     11. [If a determination is sought as provided in subsection 10 of this section, the department of health shall immediately certify all proceedings in reference to the cause to the administrative hearing commission.] If the department of health suspends or revokes a registration, all listed chemicals owned or possessed by the registrant at the time of suspension or the effective date of the revocation order may be placed under seal by such agency and held pending final disposition of the case. No disposition may be made of chemicals under seal until the time for taking an appeal has elapsed or until all appeals have been concluded, unless a court, upon application therefor, orders the sale of perishable chemicals and the deposit of the proceeds of the sale with the court. Upon a revocation order becoming final, all chemicals may be forfeited to the state.

     12. The department of health may suspend without an order to show cause, any registration simultaneously with the institution of proceedings under subsection 5 of this section if the department of health finds that there is imminent danger to the public health or safety which warrants this action. The suspension shall continue in effect until the conclusion of the proceedings, including review of such proceedings unless sooner withdrawn by the department of health, dissolved by a court of competent jurisdiction or stayed by the administrative hearing commission.

     570.030. 1. A person commits the crime of stealing if he appropriates property or services of another with the purpose to deprive him thereof, either without his consent or by means of deceit or coercion.

     2. Evidence of the following is admissible in any criminal prosecution under this section on the issue of the requisite knowledge or belief of the alleged stealer:

     (1) That he failed or refused to pay for property or services of a hotel, restaurant, inn or boardinghouse;

     (2) That he gave in payment for property or services of a hotel, restaurant, inn or boardinghouse a check or negotiable paper on which payment was refused;

     (3) That he left the hotel, restaurant, inn or boardinghouse with the intent to not pay for property or services;

     (4) That he surreptitiously removed or attempted to remove his baggage from a hotel, inn or boardinghouse.

     3. Stealing is a class C felony if:

     (1) The value of the property or services appropriated is one hundred fifty dollars or more; or

     (2) The actor physically takes the property appropriated from the person of the victim; or

     (3) The property appropriated consists of:

     (a) Any motor vehicle, watercraft or aircraft; or

     (b) Any will or unrecorded deed affecting real property; or

     (c) Any credit card or letter of credit; or

     (d) Any firearms; or

     (e) A United States national flag designed, intended and used for display on buildings or stationary flagstaffs in the open; or

     (f) Any original copy of an act, bill or resolution, introduced or acted upon by the legislature of the state of Missouri; or

     (g) Any pleading, notice, judgment or any other record or entry of any court of this state, any other state or of the United States; or

     (h) Any book of registration or list of voters required by chapter 115, RSMo; or

     (i) Any animal of the species of horse, mule, ass, cattle, swine, sheep, or goat; or

     (j) Live fish raised for commercial sale with a value of seventy-five dollars; or

     (k) Any [narcotic drugs] controlled substance as defined by section 195.010, RSMo; otherwise, stealing is a class A misdemeanor.

     4. The theft of any item of property or services under subsection 3 of this section which exceeds one hundred fifty dollars may be considered a separate felony and may be charged in separate counts.

     5. Any person with a prior conviction of paragraph (i) of subdivision (3) of subsection 3 of this section and who violates the provisions of paragraph (i) of subdivision (3) of subsection 3 of this section when the value of the animal or animals stolen exceeds three thousand dollars is guilty of a class B felony."; and

     Further amend the title and enacting clause accordingly.

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

     On motion of Senator McKenna, HCS for HB 635, as amended, was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannFlotron
GoodeGravesHouseHoward
JacobJohnsonKenneyKinder
KlarichLybyerMathewsonMaxwell
McKennaMuellerQuickRohrbach
RussellSchneiderScottSims
SingletonStaplesWestfallWiggins
Yeckel--33
Nays--Senators--None
Absent--Senators--Curls--1
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     HB 831, with SCA 1, introduced by Representative Griesheimer, entitled:

     An Act to repeal section 89.320, RSMo 1994, relating to planning commissions, and to enact in lieu thereof one new section relating to the same subject.

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

     SCA 1 was taken up.

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

     Senator Flotron offered SA 1:

SENATE AMENDMENT NO. 1

     Amend House Bill No. 831, Page 1, Section 89.320, Line 9, by inserting immediately after said line the following:

     "Section 1. 1. Any city that maintains the city engineer or other similar city official on the planning commission shall have the authority to place any restriction upon the height, spacing and lighting of outdoor advertising structures placed within the view of any highway within the city. Such ordinance may be more restrictive than sections 226.500 to 226.600, RSMo.

     2. No city that elects to govern outdoor advertising structures as provided in subsection 1 shall have the authority to impose a fee of more than five hundred dollars for the initial inspection of an outdoor advertising structure, nor may the city impose a business tax on an outdoor advertising structure of more than one hundred dollars per year."; and

     Further amend the title and enacting clause accordingly.

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

     Senator House offered SA 2:

SENATE AMENDMENT NO. 2

     Amend House Bill No. 831, Page 1, In the Title, Line 2, by striking "planning commissions" and inserting in lieu thereof the following: "powers of local governments"; and

     Further amend said bill, page 1, section A, line 2, by inserting immediately after said line the following:

     "64.170. For the purpose of promoting the public safety, health and general welfare, to protect life and property and to prevent the construction of fire hazardous buildings, the county commission in all counties of the first [and second class], second or third classification, as provided by law, is for this purpose empowered to adopt by order or ordinance regulations to control the construction, reconstruction, alteration or repair of any building or structure and any electrical wiring or electrical installation therein, and provide for the issuance of building permits and adopt regulations licensing persons, firms or corporations other than federal, state or local governments, public utilities and their contractors engaged in the business of electrical wiring or installations and provide for the inspection thereof and establish a schedule of permit, license and inspection fees and appoint a building commission to prepare the regulations, as herein provided.

     64.175. 1. The governing body of each county of the third classification may vote, after public hearing, to adopt and enforce a building and electrical code of regulations created pursuant to subsection 2 of this section. Upon a majority vote of the governing body of a county of the third classification to adopt and enforce a building and electrical code of regulations created pursuant to subsection 2 of section 64.180, the governing body shall, after publication in a newspaper of general circulation in the county of a summary of the proposed building and electrical code or of a location where such code can be read by the public at least thirty days before such primary or general election, submit the question to the voters of the county at the next countywide primary or general election.

     2. The voters of any county may, at any time upon their own initiative, present an initiative petition containing a minimum of ten percent of the registered voters' signatures that voted in the last gubernatorial election to the governing body of the county to place the issue of the adoption of a building and electrical code on the ballot at the next general election. Upon verification of the signatures on such petition by the county election authority, the initiative petition shall be deemed "qualifying" for purposes of this section.

     3. After a majority vote of the governing body of the county of the third classification or the submission of a qualifying initiative petition by the voters of the county, the governing body of the county shall place on the ballot at the next general election the question in substantially the following form:

     "Shall the county of . . . . . . . . . . . (insert county name) adopt and enforce the building and electrical code proposed by the . . . . . . . . . . . (insert county name) building commission?"

      Yes           No

     4. Upon certification by the proper election authority of a majority vote in favor of the question, the county shall adopt and enforce the building and electrical code adopted by the voters.

     64.205. [Sections] Except for section 64.175, sections 64.170 to 64.200 shall apply to all counties of the first [and second class], second and third classification."; and

     Further amend title and enacting clause accordingly.

     Senator House moved that the above amendment be adopted.

     Senator Klarich raised the point of order that SA 2 is out of order in that the amendment goes beyond the scope and purpose of the original bill.

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

     On motion of Senator Flotron, HB 831, as amended, was read the 3rd time and passed by the following vote:
Yeas--Senators
CaskeyChildersDePascoEhlmann
FlotronGoodeGravesHouse
HowardJacobJohnsonKenney
KinderKlarichMathewsonMaxwell
McKennaMuellerSchneiderScott
SimsSingletonStaplesWestfall
WigginsYeckel--26
Nays--Senators
ClayLybyerQuickRohrbach
Russell--5
Absent--Senators
BanksBentleyCurls--3
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     Senator Mathewson resumed the Chair.

     Senator McKenna moved that the Senate return to the Governor the appointment of Sheila Lumpe, pursuant to his request, which motion prevailed.

REPORTS OF STANDING COMMITTEES

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

     Mr. President: Your Committee on State Budget Control, to which was referred SCS for HS for HCS for HB 738, as amended, begs leave to report that it has considered the same and recommends that the bill do pass.

HOUSE BILLS ON THIRD READING

     Senator Caskey moved that SCS for HS for HCS for HB 738, as amended, be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

     On motion of Senator Caskey, SCS for HS for HCS for HB 738, as amended, was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyClay
DePascoEhlmannGoodeJacob
JohnsonMathewsonMcKennaQuick
SchneiderScottSimsSingleton
WestfallWigginsYeckel--19
Nays--Senators
ChildersGravesHouseHoward
KenneyKinderKlarichLybyer
MaxwellMuellerRohrbachRussell
Staples--13
Absent--Senators
CurlsFlotron--2
Absent with leave--Senators--None

     The President declared the bill passed.

     The emergency clause failed to receive the necessary two-thirds majority by the following vote:
Yeas--Senators
BanksBentleyCaskeyClay
DePascoEhlmannGoodeJacob
JohnsonMathewsonMaxwellMcKenna
QuickSchneiderSimsSingleton
StaplesWestfallWiggins--19
Nays--Senators
ChildersFlotronGravesHouse
HowardKenneyKinderKlarich
LybyerMuellerRohrbachRussell
Yeckel--13
Absent--Senators
CurlsScott--2
Absent with leave--Senators--None

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

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

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

     HB 104, with SCS, introduced by Representative Bonner, entitled:

     An Act to repeal section 556.037, RSMo 1994, relating to the statute of limitations for certain crimes, and to enact in lieu thereof one new section relating to the same subject, with penalty provisions.

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

     SCS for HB 104, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 104

     An Act to repeal section 556.037, RSMo 1994, relating to sexual offenses, and to enact in lieu thereof five new sections relating to the same subject, with penalty provisions.

     Was taken up.

     Senator DePasco moved that SCS for HB 104 be adopted, which motion failed.

     On motion of Senator DePasco, HB 104 was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannFlotron
GoodeGravesHouseHoward
JacobJohnsonKenneyKinder
KlarichLybyerMathewsonMaxwell
McKennaMuellerQuickRohrbach
RussellSchneiderScottSims
SingletonStaplesWestfallWiggins
Yeckel--33
Nays--Senators--None
Absent--Senators--Curls--1
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     HS for HB 389, with SCAs 1 and 2, entitled:

     An Act to repeal section 301.143, RSMo 1994, and sections 301.142 and 302.302, RSMo Supp. 1996, relating to parking for the physically disabled, and to enact in lieu thereof three new sections relating to the same subject, with penalty provisions.

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

     SCA 1 was taken up.

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

     SCA 2 was taken up.

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

     Senator Rohrbach offered SA 1:

SENATE AMENDMENT NO. 1

     Amend House Substitute for House Bill No. 389, Page 8, Section 302.302, Line 67, by adding after the end of said line the following:

     "304.013. 1. No person shall operate an all-terrain vehicle, as defined in section 301.010, RSMo, upon the highways of this state, except as follows:

     (1) All-terrain vehicles owned and operated by a governmental entity for official use;

     (2) All-terrain vehicles operated for agricultural purposes or industrial on-premises purposes between the official sunrise and sunset on the day of operation;

     (3) All-terrain vehicles operated by handicapped persons for short distances occasionally only on the state's secondary roads when operated between the hours of sunrise and sunset;

     [(3)] (4) Governing bodies of cities may issue special permits to licensed drivers for special uses of all-terrain vehicles on highways within the city limits. Fees of fifteen dollars may be collected and retained by cities for such permits;

     [(4)] (5) Governing bodies of counties may issue special permits to licensed drivers for special uses of all-terrain vehicles on county roads within the county. Fees of fifteen dollars may be collected and retained by the counties for such permits.

     2. No person shall operate an off-road vehicle within any stream or river in this state, except that off-road vehicles may be operated within waterways which flow within the boundaries of land which an off-road vehicle operator owns, or for agricultural purposes within the boundaries of land which an off-road vehicle operator owns or has permission to be upon, or for the purpose of fording such stream or river of this state at such road crossings as are customary or part of the highway system. All law enforcement officials or peace officers of this state and its political subdivisions or department of conservation agents or department of natural resources park rangers shall enforce the provision of this subsection within the geographic area of their jurisdiction.

     3. A person operating an all-terrain vehicle on a highway pursuant to an exception covered in this section shall have a valid operator's or chauffeur's license, except that a handicapped person operating such vehicle pursuant to subdivision (3) of subsection 1 of this section, but shall not be required to have passed an examination for the operation of a motorcycle, and the vehicle shall be operated at speeds of less than thirty miles per hour. When operated on a highway, an all-terrain vehicle shall have a bicycle safety flag, which extends not less than seven feet above the ground, attached to the rear of the vehicle. The bicycle safety flag shall be triangular in shape with an area of not less than thirty square inches and shall be day-glow in color.

     4. No person shall operate an all-terrain vehicle:

     (1) In any careless way so as to endanger the person or property of another;

     (2) While under the influence of alcohol or any controlled substance;

     (3) Without a securely fastened safety helmet on the head of an individual who operates an all-terrain vehicle or who is being towed or otherwise propelled by an all-terrain vehicle, unless the individual is at least eighteen years of age.

     5. No operator of an all-terrain vehicle shall carry a passenger, except for agricultural purposes.

     6. A violation of this section shall be a class C misdemeanor. In addition to other legal remedies, the attorney general or county prosecuting attorney may institute a civil action in a court of competent jurisdiction for injunctive relief to prevent such violation or future violations and for the assessment of a civil penalty not to exceed one thousand dollars per day of violation."; and

     Further amend said bill, by amending the titling and enacting clause accordingly.

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

     On motion of Senator House, HS for HB 389, as amended, was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
EhlmannFlotronGoodeGraves
HouseHowardJacobJohnson
KenneyKinderKlarichMathewson
MaxwellMcKennaMuellerQuick
RohrbachRussellSchneiderScott
SimsSingletonStaplesWestfall
WigginsYeckel--30
Nays--Senators--None
Absent--Senators
ClayCurlsDePascoLybyer--4
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

CONFERENCE COMMITTEE REPORTS

     Senator Quick, on behalf of the conference committee appointed to act with a like committee from the House on HS for HCS for SCS for SB 141, as amended, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 141

     Mr. President: Your Conference Committee, appointed to confer with a like committee of the House, on House Substitute for House Committee Substitute for Senate Committee Substitute for Senate Bill No. 141, with House Amendments Nos. 1, 2, 3, 4 and 5; begs leave to report that we, after free and fair discussion of the differences between the House and Senate, have agreed to recommend and do recommend to the respective bodies as follows:

     1. That the House recede from its position on House Substitute for House Committee Substitute for Senate Committee Substitute for Senate Bill No. 141, with House Amendments Nos. 1, 2, 3, 4 and 5;

     2. That the Senate recede from its position on Senate Committee Substitute for Senate Bill No. 141;

     3. That the attached Conference Committee Substitute for House Substitute for House Committee Substitute for Senate Committee Substitute for Senate Bill No. 141 be truly agreed to and finally passed.

FOR THE SENATE:     FOR THE HOUSE:

/s/ Ed Quick      /s/ Joseph L. Treadway

/s/ Bill McKenna      /s/ Stephen Stoll

/s/ Sidney Johnson      /s/ Joan Barry

/s/ David J. Klarich      /s/ Charles Nordwald

/s/ Walt Mueller      /s/ Roy Holand

     Senator Quick moved that the above conference committee report be adopted, which motion prevailed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannFlotron
GoodeGravesHouseHoward
JacobJohnsonKenneyKinder
KlarichLybyerMathewsonMaxwell
McKennaMuellerQuickRohrbach
RussellSchneiderScottSims
SingletonStaplesWestfallWiggins
Yeckel--33
Nays--Senators--None
Absent--Senators--Curls--1
Absent with leave--Senators--None

     On motion of Senator Quick, CCS for HS for HCS for SCS for SB 141, entitled:

CONFERENCE COMMITTEE SUBSTITUTE FOR HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 141

     An Act to repeal sections 327.031, 332.311, 334.031, 334.040, 334.080, 334.100, 334.715, 337.021, 337.035, 338.043, 338.057, 338.059, 338.060, 338.065, 338.070, 338.100, 338.120, 338.130, 338.140, 338.220, 338.365, 339.507, 339.525 and 620.140, RSMo 1994, and sections 331.030, 334.046, 334.655, 334.735, 334.740, 334.745 and 337.020, RSMo Supp. 1996, relating to the division of professional registration, and to enact in lieu thereof sixty-nine new sections relating to the same subject, with penalty provisions.

     Was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannFlotron
GoodeGravesHouseHoward
JacobJohnsonKenneyKinder
KlarichLybyerMathewsonMaxwell
McKennaMuellerQuickRussell
SchneiderScottSimsSingleton
StaplesWestfallWigginsYeckel--32
Nays--Senators--Rohrbach--1
Absent--Senators--Curls--1
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     President Wilson resumed the Chair.

     Senator Howard, on behalf of the conference committee appointed to act with a like committee from the House on HS for HCS for SB 218, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 218

     Mr. President: Your Conference Committee, appointed to confer with a like committee of the House, on House Substitute for House Committee Substitute for Senate Bill No. 218; begs leave to report that we, after free and fair discussion of the differences between the House and Senate, have agreed to recommend and do recommend to the respective bodies as follows:

     1. That the House recede from its position on the House Substitute for House Committee Substitute for Senate Bill No. 218;

     2. That the Senate recede from its position on Senate Bill No. 218;

     3. That the attached Conference Committee Substitute for House Substitute for House Committee Substitute for Senate Bill No. 218 be truly agreed to and finally passed.

FOR THE SENATE:     FOR THE HOUSE:

/s/ Jerry Howard      /s/ Wayne Crump

/s/ Bill McKenna      /s/ Craig Hosmer

/s/ Mike Lybyer      /s/ Don Kissell

/s/ Larry Rohrbach      /s/ Mark Richardson

/s/ Franc Flotron      /s/ Kenneth Legan

     Senator Howard moved that the above conference committee report be adopted, which motion prevailed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannGoode
GravesHouseHowardJacob
JohnsonKenneyKinderKlarich
LybyerMathewsonMaxwellMueller
QuickRohrbachRussellSchneider
ScottSimsSingletonStaples
WestfallWigginsYeckel--31
Nays--Senators--None
Absent--Senators
CurlsFlotronMcKenna--3
Absent with leave--Senators--None

     On motion of Senator Howard, CCS for HS for HCS for SB 218, entitled:

CONFERENCE COMMITTEE SUBSTITUTE FOR HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 218

     An Act to repeal sections 49.310, 67.582, 221.010, 221.111, 221.400, 221.405 and 221.410, RSMo 1994, relating to jails, and to enact in lieu thereof ten new sections relating to the same subject, with penalty provisions.

     Was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksCaskeyChildersClay
DePascoEhlmannGoodeGraves
HouseHowardJacobJohnson
KenneyKinderKlarichLybyer
MathewsonMaxwellMcKennaMueller
QuickRohrbachRussellSchneider
ScottSimsSingletonStaples
WestfallWigginsYeckel--31
Nays--Senators--None
Absent--Senators
BentleyCurlsFlotron--3
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

     Senator Westfall, on behalf of the conference committee appointed to act with a like committee from the House on HS for HCS for SCS for SB 89, as amended, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 89

     Mr. President: Your Conference Committee, appointed to confer with a like committee of the House, on House Substitute for House Committee Substitute for Senate Committee Substitute for Senate Bill No. 89, with House Amendments Nos. 1, 2, 3 and 4; begs leave to report that we, after free and fair discussion of the differences between the House and Senate, have agreed to recommend and do recommend to the respective bodies as follows:

     1. That the House recede from its position on House Substitute for House Committee Substitute for Senate Committee Substitute for Senate Bill No. 89, with House Amendments Nos. 1, 2, 3 and 4;

     2. That the Senate recede from its position on Senate Committee Substitute for Senate Bill No. 89;

     3. That the attached Conference Committee Substitute for House Substitute for House Committee Substitute for Senate Committee Substitute for Senate Bill No. 89 be truly agreed to and finally passed.

FOR THE SENATE:     FOR THE HOUSE:

/s/ Morris Westfall      /s/ Ken Legan

/s/ Harold Caskey      /s/ Wayne Crump

/s/ John E. Scott      /s/ Craig Hosmer

/s/ Jim Mathewson      /s/ Kelly Parker

/s/ John T. Russell      /s/ Mark Richardson

     Senator Westfall moved that the above conference committee report be adopted, which motion prevailed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannGoode
GravesHouseHowardJacob
JohnsonKenneyKinderKlarich
LybyerMathewsonMaxwellMcKenna
MuellerQuickRohrbachRussell
SchneiderScottSimsSingleton
StaplesWestfallWigginsYeckel--32
Nays--Senators--None
Absent--Senators
CurlsFlotron--2
Absent with leave--Senators--None

     On motion of Senator Westfall, CCS for HS for HCS for SCS for SB 89, entitled:

CONFERENCE COMMITTEE SUBSTITUTE FOR HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 89

     An Act to repeal sections 49.310, 67.582, 221.010, 221.111, 221.400, 221.405, 221.410, 562.021 and 562.026, RSMo 1994, relating to criminal procedure, and to enact in lieu thereof twelve new sections relating to the same subject, with penalty provisions.

     Was read the 3rd time and passed by the following vote:
Yeas--Senators
BanksBentleyCaskeyChilders
ClayDePascoEhlmannFlotron
GoodeGravesHouseHoward
JacobJohnsonKenneyKinder
KlarichLybyerMathewsonMaxwell
McKennaMuellerQuickRohrbach
RussellSchneiderScottSims
SingletonStaplesWestfallWiggins
Yeckel--33
Nays--Senators--None
Absent--Senators--Curls--1
Absent with leave--Senators--None

     The President declared the bill passed.

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

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

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

PRIVILEGED MOTIONS

     Senator Mathewson moved that the Senate refuse to concur in HCS for SS for SCS for SB 165, as amended, and request the House to recede from its position, or failing to do so, grant the Senate a conference thereon, which motion prevailed.

MESSAGES FROM THE HOUSE

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

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the Speaker has appointed the following conferees to act with a like committee from the Senate on SS for SCS for HB 207, as amended: Representatives: Koller, Backer, Leake, Gaskill and Nordwald.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken up and passed HCS for SS for SB 208, entitled:

     An Act to repeal sections 41.435, 42.105, 42.135 and 173.215, RSMo 1994, and sections 173.239 and 313.835, RSMo Supp. 1996, relating to certain military benefits and other scholarships, and to enact in lieu thereof eleven new sections relating to the same subject, with penalty provisions.

     With House Amendments Nos. 2 and 3.

HOUSE AMENDMENT NO. 2

     Amend House Committee Substitute for Senate Substitute for Senate Bill No. 208, Page 12, Section 1, Line 17, by adding immediately after said line:

     "Section 2. Any rule or portion of a rule promulgated pursuant to this bill shall become effective only as provided pursuant to chapter 536, RSMo, including but not limited to section 536.028 RSMo., if applicable, after the effective date of this act. All rulemaking authority delegated prior to the effective date of this act is of no force and effect and repealed. The provisions of this section are nonseverable and if any of the powers vested with the general assembly pursuant to section 536.028, if applicable, to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.".

HOUSE AMENDMENT NO. 3

     Amend House Committee Substitute for Senate Substitute for Senate Bill No. 208, Page 1, In the Title, Line 3, by inserting after the number "1996," the following: "and sections 376.1399 and 536.028 of senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 335 as truly agreed to and finally passed by the first regular session of the eight-ninth general assembly and section 14 from senate amendment no. 26 to senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 335 as truly agreed to and finally passed by the first regular session of the eighty-ninth general assembly,"; and

     Further amend said bill, Page 12, Section 1, Line 17, by inserting after all of said line the following:

     "Section B. Sections 376.1399 and 536.028 from senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 335 as truly agreed to and finally passed by the first regular session of the eighty-ninth general assembly and section 14 from senate amendment no. 26 to senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 335 as truly agreed to and finally passed by the first regular session of the eighty-ninth general assembly are repealed.

     [376.1399. 1. The director may, after notice and hearing, promulgated reasonable rules to carry out the provisions of sections 376.1350 to 376.1390. The director shall have the authority to promulgate rules to accomplish the following purposes:

     (1) To regulate the internal affairs of the department of insurance;

     (2) To prescribe forms and procedures to be followed in proceedings before the department of insurance; and

     (3) To effectuate or aid in the interpretation of any law of this state pertaining to the subject matters of sections 376.1350 to 376.1390.

     2. Any rule that has the effect of creating or substantially modifying a legal right, liability, obligation or sanction shall be considered substantive. The director may only promulgate substantive rules on subject matters specifically authorized pursuant to sections 376.1350 to 376.1390 and any substantive rule or portion of a rule shall become effective only as provided pursuant to chapter 536, RSMo, including, but not limited to, section 536.028, after the effective date of this act. All such substantive rules and all substantive rulemaking authority granted pursuant to sections 376.1350 to 376.1390 shall expire on August 31, 1998. Any act by the general assembly that serves to extend or postpone the expiration of any rule or rulemaking authority shall not constitute legislative approval of the rule or authority nor be admissible in any court as evidence of legislative intent. The provisions of this section are nonseverable and if any of the powers vested with the general assembly pursuant to section 536.028 to review, to delay the effective date or to disapprove and annul a rule, or portion of a rule, are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.]

     [536.028. 1. The delegation of authority to any state agency to propose to the general assembly rules as provided under this section is contingent upon the agency complying with the provisions of this section and this delegation of legislative power to the agency to propose an order of rulemaking containing a rule or portion thereof that has the effect of substantive law, other than a rule relating to the agency's organization and internal management, is contingent and dependent upon the power of the general assembly to review such proposed order of rulemaking, to delay the effective date of such proposed order of rulemaking until the expiration of at least thirty legislative days of a regular session after such order is filed with the general assembly and the secretary of state, and to disapprove and annul any rule or portion thereof contained in such order of rulemaking.

     2. No rule or portion of a rule that has the effect of substantive law shall become effective until the order of rulemaking, in which such rule or portion thereof is contained, has been reviewed by the general assembly in accordance with the procedures provided herein and the agency's authority to propose an order of rulemaking is dependent upon the power of the general assembly to disapprove and annul any such proposed rule or portion thereof as provided herein.

     3. In order for the general assembly to have an effective opportunity to be advised of rules proposed by any state agency under the authority of this section, an agency may propose a rule by complying with the procedures provided in section 536.021, except that the notice of proposed rulemaking shall first be filed with the general assembly by providing a copy thereof to the joint committee on administrative rules which may hold hearings upon any proposed rule or portion thereof at any time. The agency shall cooperate with the joint committee on administrative rules by providing any witnesses, documents or information within the control of the agency as may be requested.

     4. In order to propose an order of rulemaking to the general assembly, the agency shall comply with the provisions of section 536.021, except that the agency may file a proposed order of rulemaking with the secretary of state only by first filing such proposed order with the general assembly by providing a copy thereof to the secretary of the senate and the clerk of the house of representatives. The president pro tem of the senate shall direct that a copy of the proposed order of rulemaking be delivered to the joint committee on administrative rules which may hold hearings thereon. The agency shall cooperate with the committee by providing any witnesses, documents or information within the control of the agency as may be requested.

     5. Such proposed order of rulemaking shall not become effective prior to the expiration of thirty legislative days of a regular session after such order is filed with the secretary of state and the general assembly.

     6. The committee may, by majority vote of its members, recommend that the general assembly disapprove and annul any rule or portion thereof contained in an order of rulemaking after hearings thereon and, upon a finding that such rule or portion thereof should be disapproved and annulled upon the following grounds:

     (1) Such rule is substantive in nature in that it creates rights or liabilities or provides for sanctions as to any person, corporation or other legal entity; and

     (2) Such rule or portion thereof is not in the public interest or is not authorized by the general assembly for one or more of the following grounds:

     (a) An absence of statutory authority for the proposed rule;

     (b) The proposed rule is in conflict with state law;

     (c) Such proposed rule is likely to substantially endanger the public health, safety or welfare;

     (d) The rule exceeds the purpose, or is more restrictive than is necessary to carry out the purpose, of the statute granting rulemaking authority;

     (e) A substantial change in circumstance has occurred since enactment of the law upon which the proposed rule is based as to result in a conflict between the purpose of the law and the proposed rule, or as to create a substantial danger to public health and welfare;

     (f) The proposed rule is so arbitrary and capricious as to create such substantial inequity as to be unreasonably burdensome on persons affected.

     7. Any recommendation or report issued by the committee pursuant to subsection 6 of this section shall be admissible as evidence in any judicial proceeding and entitled to judicial notice without further proof.

     8. The general assembly may adopt a concurrent resolution in accordance with the provisions of article IV, section 8 of the Missouri constitution to disapprove and annul any rule or portion thereof upon one or more of the grounds stated in subsection 6 of this section.

     9. Any rule or portion thereof not disapproved within thirty legislative days of a regular session pursuant to subsection 8 of this section shall be deemed approved by the general assembly and the secretary of state may publish such order of rulemaking as soon as practicable upon the expiration of thirty legislative days of a regular session after the order of rulemaking was filed with the secretary of state and the general assembly.

     10. Upon adoption of such concurrent resolution as provided in subsection 8 of this section, the secretary of state shall not publish the order of rulemaking until the expiration of time necessary for such resolution to be signed by the governor, or vetoed and subsequently acted upon by the general assembly pursuant to article III, section 32 of the Missouri Constitution. If such concurrent resolution is adopted and signed by the governor or reconsidered pursuant to article III, section 32, the secretary of state shall publish in the Missouri Register, as soon as practicable, the order of rulemaking along with notice of the proposed rules or portions thereof which are disapproved and annulled by the general assembly.

     11. Notwithstanding the provisions of section 1.140, RSMo, the provisions of this section are nonseverable and the delegation of legislative authority to an agency to propose orders of rulemaking is essentially dependent upon the powers vested with the general assembly as provided herein. If any of the powers vested with the general assembly to review, to delay the effective date or to disapprove and annul a rule or portion of a rule contained in an order of rulemaking, are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking pursuant thereto shall be invalid and void.

     12. Nothing in this section shall prevent the general assembly from adopting by bill within thirty legislative days of a regular session the rules or portions thereof, or as the same may be amended, as contained in a proposed order of rulemaking. In that event, the proposed order of rulemaking shall have been superseded and any rule proposed therein shall be void and only such rules adopted by the general assembly and submitted to the governor may become effective. Rules so adopted shall be published by the secretary of state as soon as practicable. In that event, the secretary of state shall not publish the proposed order of rulemaking and such proposed order of rulemaking shall be invalid and void.

     13. Upon adoption of any rule now in effect or hereafter promulgated, any such rule or portion thereof may be revoked by the general assembly either by bill, or by concurrent resolution pursuant to article IV, section 8 of the constitution on recommendation of the committee on administrative rules upon the grounds listed in subsection 6 of this section. The secretary of state shall publish in the Missouri Register, as soon as practicable, notice of the revocation.]

     [Section 14. 1. The director may, after notice and hearing, promulgate reasonable rules to carry out the provisions of sections 1 to 11. The director shall have the authority to promulgate rules to accomplish the following purposes:

     (1) To regulate the internal affairs of the department of insurance;

     (2) To prescribe forms and procedures to be followed in proceedings before the department of insurance; and

     (3) To effectuate or aid in the interpretation of any law of this state pertaining to the subject matters of sections 1 to 11.

     2. Any rule that has the effect of creating or substantially modifying a legal right, liability, obligation or sanction shall be considered substantive. The director may only promulgate substantive rules on subject matters specifically authorized pursuant to sections 1 to 11 and any substantive rule or portion of a rule shall become effective only as provided pursuant to chapter 536, RSMo, including, but not limited to, section 536.028, after the effective date of this act. All such substantive rules and all substantive rulemaking authority granted pursuant to sections 1 to 11 shall expire on August 31, 1998. Any act by the general assembly that serves to extend or postpone the expiration of any rule or rulemaking authority shall not constitute legislative approval of the rule or authority nor be admissible in any court as evidence of legislative intent. The provisions of this section are nonseverable and if any of the powers vested with the general assembly pursuant to section 536.028 to review, to delay the effective date or to disapprove and annul a rule, or portion of a rule, are held unconstitutional or invalid, the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.]".

     In which the concurrence of the Senate is respectfully requested.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken up and passed HCS for SB 320, entitled:

     An Act to repeal sections 256.453, 256.468 and 256.471, RSMo 1994, relating to the registration of geologists, and to enact in lieu thereof three new sections relating to the same subject.

     With House Amendment No. 1.

HOUSE AMENDMENT NO. 1

     Amend House Committee Substitute for Senate Bill No. 320, Page 3, Lines 23 and 24, by striking said lines and inserting in lieu thereof the following:

     "(2) has provided the board a summary of the actual geologic work demonstrating that the applicant has at least ten years of competent post-baccalureate experience in the practice of geology.

     In which the concurrence of the Senate is respectfully requested.

     Also,

     Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken up and passed HS for HCS for SS for SCS for SBs 386 and 372, entitled:

     An Act to repeal sections 37.010, 103.059, 536.021, 536.022, 536.023 and 536.041, RSMo 1994, and sections 8.710, 29.100, 33.090, 34.050, 36.060, 36.070, 41.948, 43.509, 66.380, 160.272, 161.102, 173.081, 192.006, 207.021, 260.225, 262.470, 276.406, 287.650, 326.110, 333.111, 337.050, 361.105, 374.045, 454.400, 536.024, 536.025, 536.050, 620.010, 620.125, 630.050, 633.190, 640.010, 640.755, 643.050, 644.026, 650.005 and 660.017, RSMo Supp. 1996, and section 32.125, as both versions of such section appear in RSMo Supp. 1996, and sections 376.1399 and 536.028 from senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 335 as truly agreed to and finally passed by the first regular session of the eighty-ninth general assembly and section 14 from senate amendment no. 26 to senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 335 as truly agreed to and finally passed by the first regular session of the eighty-ninth general assembly, relating to rulemaking, and to enact in lieu thereof fifty new sections relating to the same subject, with an emergency clause for certain sections.

     In which the concurrence of the Senate is respectfully requested.

     Emergency clause adopted.

REPORTS OF STANDING COMMITTEES

     Senator Caskey, Chairman of the Committee on Civil and Criminal Jurisprudence, submitted the following report:

     Mr. President: Your Committee on Civil and Criminal Jurisprudence, to which was referred HCS for HJR 1, begs leave to report that it has considered the same and recommends that the bill do pass.

RESOLUTIONS

     Senator Jacob offered Senate Resolution No. 857, regarding Cara Weishaar, Columbia, which was adopted.

     Senator Howard offered Senate Resolution No. 858, regarding Tina Minor, Cape Girardeau, which was adopted.

     Senator Sims offered Senate Resolution No. 859, regarding Billie McAlister, St. Louis, which was adopted.

     Senator Westfall offered Senate Resolution No. 860, regarding Stephanie Legan, Springfield, which was adopted.

     Senator Bentley offered Senate Resolution No. 861, regarding Kris Hiestand, Springfield, which was adopted.

     Senator Singleton offered Senate Resolution No. 862, regarding John Weedn, Joplin, which was adopted.

     Senator Russell offered Senate Resolution No. 863, regarding Radek Seda, Czech Republic in Europe, which was adopted.

     Senator Rohrbach offered Senate Resolution No. 864, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Alfred Dickneite, St. Elizabeth, which was adopted.

INTRODUCTIONS OF GUESTS

     Senator Howard introduced to the Senate, Tommy Horton, Dexter.

     Senator Johnson introduced to the Senate, eighty fourth grade students from Linn Creek Elementary School, Kansas City; and Cory Neugebauer, Erica Lindner, Krissy Turley and Christina Seume were made honorary pages.

     Senator Russell introduced to the Senate, his son, Doug Russell, his wife, Kim, and their children, John, Jason and Jordan; and Sarah Fuller, William Dalton, Chris Null and Haliegh Carr, Lebanon.

     Senator Kenney introduced to the Senate, Cathy Fletcher, Patty Hardy, Rise Stevenson, Collene Akard, Dan Erholtz, Susan Miller, Susan Sims, Candy Novotny and Matt Wilson, Lee's Summit.

     On motion of Senator Quick, the Senate adjourned until 9:30 a.m., Thursday, May 15, 1997.