Journal of the Senate

SECOND REGULAR SESSION


SEVENTIETH DAY--TUESDAY, MAY 12, 1998


The Senate met pursuant to adjournment.

Senator Johnson in the Chair.

The Chaplain offered the following prayer:

Heavenly Father, give to us wisdom to know when to speak and when to listen, when to encourage and when to discourage, when to stand firm and when to compromise. Give us wisdom to know the difference between conviction and stubbornness, between being hard headed and being steadfast. 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
Banks Bentley Caskey Childers
Clay Curls DePasco Ehlmann
Flotron Goode Graves House
Howard Jacob Johnson Kenney
Kinder Klarich Lybyer Mathewson
Maxwell McKenna Mueller Quick
Rohrbach Russell Schneider Scott
Sims Singleton Staples Westfall
Wiggins Yeckel--34
Absent with leave--Senators--None
The Lieutenant Governor was present.

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 SCS for HB 1272: Representatives: Holand, Wooten, Stroker, Hosmer and Schilling.

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 SB 781, entitled:

An Act to repeal sections 160.538, 162.081, 162.571, 162.581, 162.601, 162.621, 162.935, 163.161, 166.260, and 168.221, RSMo 1994, and sections 160.011, 163.011, 163.031, 165.016 and 166.275, RSMo Supp. 1997, relating to education, and to enact in lieu thereof twenty-seven new sections relating to the same subject, with a contingent effective date for certain sections and an emergency clause for a certain section.

With House Amendments Nos. 1, 2, 3, 4, House Substitute Amendment No. 1 for House Amendment No. 5, House Amendments Nos. 6, 7, House Substitute Amendment No. 1 for House Amendment No. 8, House Amendments Nos. 9, 10, 12, 13, 14, 15, 16, 17, 18, 20, 22, House Substitute Amendment No. 1 for House Amendment No. 23, House Amendments Nos. 25, 26, House Substitute Amendment No. 1 for House Amendment No. 27, House Amendments Nos. 29, 30 and 36.

HOUSE AMENDMENT NO. 1

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Pages 92 and 93, Section 3, by deleting all of said section and inserting in lieu thereof the following:

"Section 3. Notwithstanding the provisions of section 163.011, RSMo., to the contrary, beginning with the 1997-1998 payment year, the calculation of the magnitude of a tax rate decrease due to reassessment shall exclude any voted increase occurring in the year of reassessment dating from tax year 1995."

HOUSE AMENDMENT NO. 2

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 1, In the Title, Lines 5 and 6 of said page, by deleting "and 166.275" and inserting in lieu thereof the following: ", 166.275 and 178.930"; and

Further amend said bill, Page 1, In the Title, Line 8 of said page, by deleting the word "twenty-seven" and inserting in lieu thereof the word "twenty-eight"; and

Further amend said bill, Page 1, Section A, Line 16 of said page, by deleting "and 166.275" and inserting in lieu thereof the following: ", 166.275 and 178.930"; and

Further amend said bill, Page 1, Section A, Line 17 of said page, by deleting the word "twenty-three" and inserting in lieu thereof the word "twenty-four"; and

Further amend said bill, Page 2, Section A, Line 4 of said page, by inserting immediately after the number "168.231," the number "178.930,"; and

Further amend said bill, Page 58, Section 168.231, Line 9 of said page, by inserting after all of said line the following:

"178.930. 1. Until June 30, 1998, the department of elementary and secondary education shall pay monthly, out of the funds appropriated to it for that purpose, to each sheltered workshop a sum equal to eleven dollars multiplied by the number of six-hour or longer days worked by handicapped workers during the preceding calendar month. For each handicapped worker employed by a sheltered workshop for less than a six-hour day, the workshop shall receive a percentage of the eleven dollars based on the percentage of the six-hour day worked by the handicapped employee.

2. Beginning July 1, 1998, until June 30, 1999, the department of elementary and secondary education shall pay monthly, out of the funds appropriated to it for that purpose, to each sheltered workshop a sum equal to twelve dollars multiplied by the number of six-hour or longer days worked by handicapped workers during the preceding calendar month. For each handicapped worker employed by a sheltered workshop for less than a six-hour day, the workshop shall receive a percentage of the twelve dollars based on the percentage of the six-hour day worked by the handicapped employee.

3. Beginning July 1, [2000] 1999, and thereafter, the department of elementary and secondary education shall pay monthly, out of the funds appropriated to it for that purpose, to each sheltered workshop a sum equal to thirteen dollars multiplied by the number of six-hour or longer days worked by handicapped workers during the preceding calendar month. For each handicapped worker employed by a sheltered workshop for less than a six-hour day, the workshop shall receive a percentage of the thirteen dollars based on the percentage of the six-hour day worked by the handicapped employee.

4. The department shall accept, as prima facie proof of payment due to a sheltered workshop, a statement signed by the president and secretary of the sheltered workshop, setting forth the dates worked and the number of hours worked each day by each handicapped person employed by that sheltered workshop during the preceding calendar month, together with any other information required by the rules or regulations of the department.".

HOUSE AMENDMENT NO. 3

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 1, In the Title, Line 8 of said page, by deleting the word "twenty-seven" and inserting in lieu thereof the word "thirty-two"; and

Further amend said bill, Page 1, Section A, Line 17 of said page, by deleting the word "twenty-three" and inserting in lieu thereof the word "twenty-eight"; and

Further amend said bill, Page 2, Section A, Line 4 of said page, by deleting "and 2" and inserting in lieu thereof the following: ", 2, 4, 5, 6, 7, and 8"; and

Further amend said bill, Page 60, Section 2, Line 1 of said page, by inserting after all of said line the following:

"Section 4. 1. A charter school is an independent, publicly supported school.

2. Charter schools may be operated only in a metropolitan school district, or in an urban school district containing most or all of a city with a population greater than three hundred fifty thousand inhabitants, and except as specified in subsection 3 of this section may be sponsored by any of the following:

(1) The school board of the district;

(2) A public four-year college or university with its primary campus in the school district or in a county adjacent to the county in which the district is located, with an approved teacher education program that meets regional or national standards of accreditation; or

(3) A community college located in the district.

3. A maximum of five percent of the school buildings currently in use for instructional purposes in a district may be converted to charter schools. This limitation does not apply to vacant buildings or buildings not used for instructional purposes.

4. No sponsor shall receive from an applicant for a charter school any fee of any type for the consideration of a charter, nor may a sponsor condition its consideration of a charter on the promise of future payment of any kind.

5. The charter school shall be a Missouri nonprofit corporation incorporated pursuant to chapter 355, RSMo. The charter provided for herein shall constitute a contract between the sponsor and the charter school.

6. As a nonprofit corporation incorporated pursuant to chapter 355, RSMo, the charter school shall select the method for election of officers pursuant to section 355.326, RSMo, based on the class of corporation selected. Meetings of the governing board of the charter school shall be subject to the provisions of sections 610.010 to 610.030, RSMo, the open meetings law.

7. A sponsor of a charter school, its agents and employees are not liable for any acts or omissions of a charter school that it sponsors, including acts or omissions relating to the charter submitted by the charter school, the operation of the charter school and the performance of the charter school.

8. A charter school may affiliate with a four-year college or university, including a private college or university, or a community college as otherwise specified in subsection 2 of this section when its charter is granted by a sponsor other than such college, university or community college. Affiliation status recognizes a relationship between the charter school and the college or university for purposes of teacher training and staff development, curriculum and assessment development, use of physical facilities owned by or rented on behalf of the college or university, and other similar purposes. The primary campus of the college or university must be located within the county in which the school district lies wherein the charter school is located or in a county adjacent to the county in which the district is located. A university, college or community college may not charge or accept a fee for affiliation status.

9. No university, college, or community college shall grant a charter to a nonprofit corporation if an employee of the university, college or community college is a member of the corporation's board of directors.

Section 5. 1. A person, group or organization seeking to establish a charter school shall submit the proposed charter, as provided in this section, to a sponsor. The charter shall include a mission statement for the charter school, a description of the charter school's organizational structure and bylaws of the governing body, which will be responsible for the policy and operational decisions of the charter school, a financial plan for the first three years of operation of the charter school including provisions for annual audits, a description of the charter school's policy for securing personnel services, its personnel policies, personnel qualifications, and professional development plan, a description of the grades or ages of students being served, the school's calendar of operation, which shall include at least the equivalent of a full school term as defined in section 160.011, RSMo, and an outline of criteria specified in this section designed to measure the effectiveness of the school. The charter shall also state:

(1) The educational goals and objectives to be achieved by the charter school;

(2) A description of the charter school's educational program and curriculum;

(3) The term of the charter, which shall be not less than five years, nor greater than ten years and shall be renewable;

(4) A description of the charter school's pupil performance standards, which must meet the requirements of subdivision (6) of subsection 5 of this section. The charter school program must be designed to enable each pupil to achieve such standards; and

(5) A description of the governance and operation of the charter school, including the nature and extent of parental, professional educator, and community involvement in the governance and operation of the charter school.

2. Proposed charters shall be subject to the following requirements:

(1) A charter may be approved when the sponsor determines that the requirements of this section are met and determines that the applicant is sufficiently qualified to operate a charter school. The sponsor's decision shall be made within sixty days of the filing of the proposed charter;

(2) If the charter is denied, the proposed sponsor shall notify the applicant in writing as to the reasons for its denial;

(3) If a proposed charter is denied by a sponsor, the proposed charter may be submitted to the state board of education, along with the sponsor's written reasons for its denial. If the state board determines that the applicant meets the requirements of this section and that granting a charter to the applicant would be likely to provide educational benefit to the children of the district, the state board may grant a charter and act as sponsor of the charter school; and

(4) The sponsor of a charter school shall give priority to charter school applicants that propose a school oriented to high-risk students and to the re-entry of dropouts into the school system. If a sponsor grants three or more charters, at least one-third of the charters granted by the sponsor shall be to schools that actively recruit dropouts or high-risk students as their student body and address the needs of dropouts or high-risk students through their proposed mission, curriculum, teaching methods, and services. For purposes of this subsection, a "high-risk" student is one who is at least one year behind in satisfactory completion of coursework or obtaining credits for graduation, pregnant or a parent, homeless or has been homeless sometime within the preceding six months, has limited English proficiency, has been suspended from school three or more times, or has been referred by the school district for enrollment in an alternative program. "Dropout" shall be defined through the guidelines of the school core data report. The provisions of this subsection do not apply to charters sponsored by the state board of education.

3. If a charter is approved by a sponsor, it shall be submitted to the state board of education which may, within forty-five days, disapprove the granting of the charter. The state board of education may disapprove a charter only on grounds that the application fails to meet the requirements of sections 4 to 8 of this act.

4. Any disapproval of a charter pursuant to subsection 3 of this section shall be subject to judicial review pursuant to chapter 536, RSMo.

5. A charter school shall, as provided in its charter:

(1) Be nonsectarian in its programs, admission policies, employment practices, and all other operations;

(2) Comply with laws and regulations of the state relating to health, safety, and minimum educational standards;

(3) Except as provided in sections 4 to 8 of this act, be exempt from all laws and rules relating to schools, governing boards and school districts;

(4) Be financially accountable, use practices consistent with the Missouri financial accounting manual, provide for an annual audit by a certified public accountant, and provide liability insurance to indemnify the school, its board, staff and teachers against tort claims. For the purposes of securing such insurance, a charter school shall be eligible for the Missouri public entity risk management fund pursuant to section 537.700, RSMo. A charter school that incurs debt must include a repayment plan in its financial plan;

(5) Provide a comprehensive program of instruction for at least one grade or age group from kindergarten through grade twelve, which may include early childhood education if funding for such programs is established by statute, as specified in its charter;

(6) Design a method to measure pupil progress toward the pupil academic standards adopted by the state board of education pursuant to section 160.514, RSMo, collect baseline data during at least the first three years for determining how the charter school is performing and to the extent applicable, participate in the statewide system of assessments, comprised of the essential skills tests and the nationally standardized norm-referenced achievement tests, as designated by the state board pursuant to section 160.518, RSMo, complete and distribute an annual report card as prescribed in section 160.522, RSMo, report to its sponsor, the local school district, and the state board of education as to its teaching methods and any educational innovations and the results thereof, and provide data required for the study of charter schools pursuant to subsection 3 of section 6 of this act. No charter school will be considered in the Missouri school improvement program review of the district in which it is located for the resource or process standards of the program. Nothing in this paragraph shall be construed as permitting a charter school to be held to lower performance standards than other public schools within a district; however, the charter of a charter school may permit students to meet performance standards on a different time frame as specified in its charter;

(7) Assure that the needs of special education children are met.

6. The charter of a charter school may be amended at the request of the governing body of the charter school and on the approval of the sponsor. The sponsor and the governing board and staff of the charter school shall jointly review the school's performance, management, and operations at least once every two years.

7. (1) A sponsor may revoke a charter at any time if the charter school commits a serious breach of one or more provisions of its charter or on any of the following grounds: failure to meet academic performance standards as set forth in its charter, failure to meet generally accepted standards of fiscal management, or violation of law.

(2) The sponsor may place the charter school on probationary status to allow the implementation of a remedial plan, after which, if such plan is unsuccessful, the charter may be revoked.

(3) At least sixty days before acting to revoke a charter, the sponsor shall notify the board of directors of the charter school of the proposed action in writing. The notice shall state the grounds for the proposed action. The school's board of directors may request in writing a hearing before the sponsor within two weeks of receiving the notice.

(4) The sponsor of a charter school shall establish procedures to conduct administrative hearings upon determination by the sponsor that grounds exist to revoke a charter. Final decisions of a sponsor from hearings conducted pursuant to this subsection are subject to judicial review pursuant to chapter 536, RSMo.

(5) A termination shall be effective only at the conclusion of the school year, unless the sponsor determines that continued operation of the school presents a clear and immediate threat to health and safety of the children.

8. A school district may enter into a lease with a charter school for physical facilities. A charter school may not be located on the property of a school district unless the district governing board agrees.

9. A governing board or a school district employee who has control over personnel actions shall not take unlawful reprisal against another employee at the school district because the employee is directly or indirectly involved in an application to establish a charter school. A governing board or a school district employee shall not take unlawful reprisal against an educational program of the school or the school district because an application to establish a charter school proposes the conversion of all or a portion of the educational program to a charter school. As used in this subsection, "unlawful reprisal" means an action that is taken by a governing board or a school district employee as a direct result of a lawful application to establish a charter school and that is adverse to another employee or an educational program.

Section 6. 1. A charter school shall enroll all pupils resident in the district in which it operates or eligible to attend a district's school under an urban voluntary transfer program who submit a timely application, unless the number of applications exceeds the capacity of a program, class, grade level or building. If capacity is insufficient to enroll all pupils who submit a timely application, the charter school shall have an admissions process that assures all applicants of an equal chance of gaining admission except that:

(1) A charter school may establish a geographical area around the school whose residents will receive a preference for enrolling in the school, provided that such preferences do not result in the establishment of racially or socioeconomically isolated schools and provided such preferences conform to policies and guidelines established by the state board of education; and

(2) A charter school may also give a preference for admission of children whose siblings attend the school or whose parents are employed at the school.

2. A charter school shall not limit admission based on ethnicity, national origin, disability, gender, income level, proficiency in the English language or athletic ability, but may limit admission to pupils within a given age group or grade level.

3. The department of elementary and secondary education shall commission a study of the performance of students at each charter school in comparison with a comparable group and a study of the impact of charter schools upon the districts in which they are located, to be conducted by a contractor selected through a request for proposal. The department of elementary and secondary education shall reimburse the institute from funds appropriated by the general assembly for the purpose. The study of a charter school's student performance in relation to a comparable group shall be designed to provide information that would allow parents and educators to make valid comparisons of academic performance between the charter school's students and a group of students comparable to the students enrolled in the charter school. The impact study shall be undertaken every two years to determine the effect of charter schools on education stakeholders in the districts where charter schools are operated. The impact study may include, but is not limited to, determining if changes have been made in district policy or procedures attributable to the charter school and to perceived changes in attitudes and expectations on the part of district personnel, school board members, parents, students, the business community, and other education stakeholders. The department of elementary and secondary education shall make the results of the studies public and shall deliver copies to the governing boards of the charter schools, the sponsors of the charter school, the school board and superintendent of the districts in which the charter schools are operated.

Section 7. 1. For the purposes of calculation and distribution of state school aid under section 163.031, RSMo, pupils enrolled in a charter school shall be included in the pupil enrollment of the school district within which each pupil resides, except that payment of state aid for such pupil shall be made by the department of elementary and secondary education to the charter school attended as provided in subsection 2 of this section and shall not be made to the pupil's district of residence. Each charter school shall report the names, addresses, and eligibility for free or reduced price lunch or other categorical aid, of pupils resident in a school district who are enrolled in the charter school to the school district in which those pupils reside and to the state department of elementary and secondary education. Each charter school shall promptly notify the state department of elementary and secondary education and the pupil's school district when a student discontinues enrollment at a charter school.

2. For each pupil attending a charter school, the department of elementary and secondary education shall pay to the charter school an annual amount equal to the per pupil state aid pursuant to section 163.031, RSMo, which would otherwise be received by the pupil's district of residence plus all other state aid attributable to such pupil, including summer school, if applicable, and the pupil's school district of residence shall pay to the charter school the product of the equalized, adjusted operating levy for school purposes for the pupil's district of residence for the current year times the guaranteed tax base per eligible pupil, as defined in section 163.011, RSMo, less the amount paid by the department to the charter school pursuant to this subsection. The district of residence of a pupil attending a charter school shall also pay to the charter school any other federal or state aid that the district receives on account of such child. The amounts provided pursuant to this subsection shall be prorated for partial year enrollment for a pupil.

3. If a school district fails to make timely payments of any amount for which it is the disbursal agent, the state department of elementary and secondary education shall authorize payment to the charter school of the amount due pursuant to subsection 2 of this section and shall deduct the same amount from the next state school aid apportionment to the owing school district.

4. The charter school and a local school board may agree by contract for services to be provided by the school district to the charter school. The charter school may contract with any other entity for services. Such services may include but are not limited to food service, custodial service, maintenance, management assistance, curriculum assistance, media services, and libraries and shall be subject to negotiation between the charter school and the local school board or other entity. Documented actual costs of such services shall be paid for by the charter school.

5. A charter school may enter into contracts with community partnerships and state agencies acting in collaboration with such partnerships that provide services to children and their families linked to the school.

6. A charter school shall be eligible for transportation state aid pursuant to section 163.161, RSMo, and shall be free to contract with the local district, or any other entity, for the provision of transportation to the students of the charter school.

7. (1) The proportionate share of state and federal resources generated by students with disabilities or staff serving them shall be paid in full to charter schools enrolling those students by their school district where such enrollment is through a contract for services described in this section. The proportionate share of money generated under other federal or state categorical aid programs shall be directed to charter schools serving such students eligible for that aid.

(2) A charter school district shall provide the special services provided pursuant to section 162.705, RSMo, and may provide the special services pursuant to a contract with a school district or any provider of such services.

8. A charter school may not charge tuition, nor may it impose fees that a school district is prohibited from imposing.

9. A charter school is authorized to incur debt in anticipation of receipt of funds. A charter school may also borrow to finance facilities and other capital items. A school district may incur bonded indebtedness or take other measures to provide for physical facilities and other capital items for charter schools that it sponsors or contracts with. Upon the dissolution of a charter school, any liabilities of the corporation will be satisfied through the procedures of chapter 355, RSMo.

10. Charter schools shall not have the power to acquire property by eminent domain.

11. The governing body of a charter school is authorized to accept grants, gifts, or donations of any kind and to expend or use such grants, gifts, or donations. A grant, gift, or donation may not be accepted by the governing body if it is subject to any condition contrary to law applicable to the charter school or other public schools, or contrary to the terms of the charter.

Section 8. 1. If a charter school offers to retain the services of an employee of a school district, and the employee accepts a position at the charter school, the contract between the charter school and the school district may provide that an employee at the employee's option may remain an employee of the district and the charter school shall pay to the district the district's full costs of salary and benefits provided to the employee. A teacher who accepts a position at a charter school and opts to remain an employee of the district retains such teacher's permanent teacher status and seniority rights in the district for a period no longer than three years. The school district shall not be liable for any such employee's acts while an employee of the charter school.

2. A charter school may employ noncertificated instructional personnel; provided that no more than twenty percent of the full-time equivalent instructional staff positions at the school are filled by noncertificated personnel. The charter school shall ensure that all instructional employees of the charter school have experience, training and skills appropriate to the instructional duties of the employee, and the charter school shall ensure that a criminal background check and child abuse registry check are conducted for each employee of the charter school prior to the hiring of the employee. Appropriate experience, training and skills of noncertificated instructional personnel shall be determined considering:

(1) Teaching certificates issued by another state or states;

(2) Certification by the National Standards Board;

(3) College degrees in the appropriate field;

(4) Evidence of technical training and competence when such is appropriate; and

(5) Level of supervision and coordination with certificated instructional staff.

3. Personnel employed by the charter school shall participate in the retirement system of the school district in which the charter school is located, subject to the same terms, conditions, requirements and other provisions applicable to personnel employed by the school district.".

HOUSE AMENDMENT NO. 4

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 1, In the Title, Line 8 of said page, by deleting the word "twenty-seven" and inserting in lieu thereof the word "twenty-nine"; and

Further amend said bill, Page 1, Section A, Line 17 of said page, by deleting the word "twenty-three" and inserting in lieu thereof the word "twenty-five"; and

Further amend said bill, Page 2, Section A, Line 4 of said page, by deleting "and 2" and inserting in lieu thereof the following: ", 2, 4 and 5"; and

Further amend said bill, Page 60, Section 2, Line 1 of said page, by inserting after all of said line the following:

"Section 4. 1. Beginning in the 1999-2000 school year, an urban school district containing all or part of a city with a population of at least three hundred fifty thousand inhabitants shall, in addition to moneys received pursuant to section 163.031, RSMo, receive thirty million dollars per year.

2. The provisions of this section shall terminate if the provisions of section 163.031, RSMo, as repealed and reenacted by Senate Bill No. 781 of the eighty-ninth general assembly do become effective.

Section 5. 1. Beginning in the 1999-2000 school year, an urban school district containing all or most of a city with a population of more than three hundred fifty thousand inhabitants shall in addition to the amounts received pursuant to section 163.031, RSMo, receive reimbursement for transportation costs associated with early childhood education and development programs, head start and extended day care.

2. The total amount received by the district for transportation costs shall not exceed nine million seven hundred eighty-seven thousand dollars for any school year.

3. The provisions of this section shall terminate if the provisions of section 163.031, RSMo, as repealed and reenacted by Senate Bill No. 781 of the eighty-ninth general assembly generates at least nine million seven hundred eighty-seven thousand dollars for transportation.".

HOUSE SUBSTITUTE AMENDMENT NO. 1

FOR HOUSE AMENDMENT NO. 5

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 51, Section 166.275, Line 16 of said page, by inserting after all of said line the following:

"3. Thirty million dollars of the funds remaining from the amount not distributed pursuant to subsection 2 of this section from an urban school district containing most or all of a city with more than three hundred fifty thousand inhabitants shall be distributed as follows:

(1) Seven percent to the gifted education categorical;

(2) Seven percent to the remedial reading categorical;

(3) Forty-eight percent to the special education categorical; and

(4) Thirty-eight percent to the vocational education categorical.".

HOUSE AMENDMENT NO. 6

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 25, Section 162.081, Line 7 of said page, by inserting after all of said line the following:

"9. In the event a metropolitan school district or an urban school district containing most or all of a city with a population greater than three hundred fifty thousand inhabitants lapses, no school district shall have all or any part of such lapsed school district attached without the approval of the board of the receiving school district.".

HOUSE AMENDMENT NO. 7

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 22, Section 162.081, Line 14 of said page, by deleting all of said line and inserting in lieu thereof the following:

"3. In a metropolitan school district or an urban school containing most or all of a city with a population greater than three hundred fifty thousand inhabitants, and in any other school district if a return to accredited status is not anticipated by the local board of education, the".

HOUSE SUBSTITUTE AMENDMENT NO. 1

FOR HOUSE AMENDMENT NO. 8

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 83, Section 163.031, Line 18 of said page by inserting immediately after the word "year" the following:

", or the revenue per eligible pupil received by a district in the 1992-93 school year from the foundation formula entitlement payment amount plus the amount of line 14 per eligible pupil times the quotient of line 1 minus line 10, divided by the number of eligible pupils, or zero if line 1 minus line 10 is less than zero, divided by the revenue per eligible pupil received by the district in the 1992-93 school year from the foundation formula entitlement payment amount, whichever is greater".

HOUSE AMENDMENT NO. 9

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 1, In the Title, Line 3 of said page, by deleting the number "162.581,"; and

Further amend said bill, Page 1, In the Title, Line 8 of said page, by deleting the word "twenty-seven" and inserting in lieu thereof the word "twenty-six"; and

Further amend said bill, Page 1, Section A, Line 14 of said page, by deleting the number "162.581,"; and

Further amend said bill, Page 1, Section A, Line 17 of said page, by deleting the word "twenty-three" and inserting in lieu thereof the word "twenty-two"; and

Further amend said bill, Page 2, Section A, Line 2 of said page, by deleting the number "162.581,"; and

Further amend said bill, Pages 26 and 27, Section 162.581, by deleting all of said section; and

Further amend said bill, Page 27, Section 162.601, Line 13 of said page, by deleting the word "seven" and inserting in lieu thereof the word "nine"; and

Further amend said bill, Page 27, Section 162.601, Lines 18 to 22, by deleting all of said lines and inserting in lieu thereof the following: "2. Only one board member shall be elected in 1999."; and

Further amend said bill, Page 28, Section 162.601, Lines 1 to 4 of said page, by deleting all of said lines and inserting in lieu thereof the following:

"3. There shall be elected [at each municipal election in"; and

Further amend said bill, Page 28, Section 162.601, Lines 10 22 of said page, by deleting all of said lines.

HOUSE AMENDMENT NO. 10

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 73, Section 163.011, Line 16 of said page, by deleting the opening bracket "["; and

Further amend said bill, Page 73, Section 163.011, Line 17 of said page, by deleting "] and, for fiscal year 1999," and inserting in lieu thereof the word "and"; and

Further amend said bill, Page 73, Section 163.011, Lines 91 to 93, by deleting all of said lines and inserting in lieu thereof the following: "hundred and sixty-seven thousandths. The"; and

Further amend said bill, Page 74, Section 163.011, Line 1 of said page, by deleting all of said line; and

Further amend said bill, Page 77, Section 163.011, Lines 18 to 22 of said page, by deleting all of said lines; and

Further amend said bill, Page 78, Section 163.011, Line 1 of said page, by deleting the number "(15)" and inserting in lieu thereof the number "(14)"; and

Further amend said bill, Page 78, Section 163.011, Line 3 of said page, by deleting the number "(16)" and inserting in lieu thereof the number "(15)".

HOUSE AMENDMENT NO. 12

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 60, Section 2, Line 1 of said page by inserting immediately after all of said line the following:

"Section 4. 1. The provisions of this section shall be known and may be cited as the "St. Louis Students' Bill of Rights".

2. For the purposes of this section, "district" means a metropolitan school district, as defined in section 160.011, RSMo.

3. Each district shall reinstitute the basic kindergarten through eighth system of grade schools within the district.

4. Every child within the district of the appropriate age and appropriate aptitude for discipline and openness to instruction shall have the right to attend a basic kindergarten through eighth grade school.

5. Every child within the district shall have the right to attend such school closest to such child's home.

6. Every child within the district shall have the right to transfer to any other such school within the district.

7. The district shall have the right to transport children to relieve overcrowding. Transportation to relieve overcrowding shall be performed in such a manner as to fill in school seats in buildings that have surplus seats, but shall not be permitted to displace any child who has elected to attend the school located closest to such child's home.

8. The per pupil expenditure of funds for the cost of education shall be equalized to the greatest extent possible, with appropriate variation allowable in order to accommodate the special remedial needs of children who test below grade level and the needs of gifted children.

9. Schools for gifted children with accelerated academic programs shall be established and evenly distributed across the district. The district shall have the right to transport children to and from schools for the gifted. Children who attend schools for the gifted shall have the right to attend such school which is located closest to such child's home and shall have the right to transfer to or attend any other school for the gifted within the district.

10. The provisions of the "St. Louis Students' Bill of Rights" shall only become effective upon approval by a majority of the voters of the City of St. Louis voting thereon. Such election shall be held in the City of St. Louis on the first general election date after the effective date of this section.

11. The proposal shall be submitted as follows:

Shall the St. Louis School District reinstitute the basic kindergarten through eighth grade neighborhood school system within the district and be required to permit students to attend the school closest to their home?

[ ] YES [ ] NO

The St. Louis Students' Bill of Rights shall not be in effect until the completion of the case of "Liddell v. Board of Education of the City of St. Louis".".

HOUSE AMENDMENT NO. 13

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 20, Section 160.542, Line 13 of said page, by inserting immediately after all of said line the following:

161.527. 1. If a school district, which has an assessed valuation per eligible pupil equal to or less than the state average assessed valuation per eligible pupil, has transmitted by July fifteenth to the department of elementary and secondary education the report required by section 162.821, RSMo, and such school district has received a notice pursuant to section 161.525, such school district is not required to reduce its operating levy pursuant to section 164.013, RSMo, when the district next determines its tax rate in accordance with the provisions of section 164.011, RSMo. The state average assessed valuation per eligible pupil used in this section shall be the state average used to calculate the guaranteed tax base for the state aid formula for the year the district's tax is not lowered. The district assessed valuation shall be the assessed valuation used in the calculation of the state aid formula for the year the district's tax is not lowered. However, if a school district does not reduce its operating levy as permitted in this subsection, the school district shall not in the current and next school year increase:

(1) Its administrative costs; or

(2) The aggregate amount of funds paid for salaries of employees of the district.

2. The restrictions on increasing administrative costs and funds paid for salaries as provided for in subsection 1 of this section shall continue in the district for each subsequent school year until combined balances in the teachers' and incidental funds at the end of a fiscal year are equal to or exceed three percent of the amount expended from the funds during the previous fiscal year as determined by the department of elementary and secondary education. Such restrictions provided for in subsection 1 of this section shall not apply to increased expenditures of the district necessary to maintain health insurance coverage for district employees at the same level that may have been provided by the district prior to implementation of the restrictions. Further, the restrictions shall not apply to increased expenditures of the district necessary to meet the district's share of contributions for employees who are members of the public school retirement system of Missouri, the public school retirement system of the school district of Kansas City, or the public school retirement system of the city of St. Louis.

3. The exemption from reduction authorized by subsection 1 of this section shall be limited to two tax years, at which time the district may submit to the voters of the district the question of whether to continue such exemption."; and

Further amend the title and enacting clause accordingly.

HOUSE AMENDMENT NO. 14

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 65, Section 162.1060.6, Line 21, by replacing "." with "," and adding the following words: "except that a special school district containing the district where the child is attending school shall be paid for all unreimbursed expenses for special education services provided to students with disabilities.".

HOUSE AMENDMENT NO. 15

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 22, Section 162.081, Line 11 of said page, by inserting immediately after the word "status" the following: ". The plan must be developed within six months of the classification as unaccredited and shall be submitted to the voters at the next municipal election. If a majority of the voters approve the plan, the state board of education shall cooperate with the local board to implement the plan. The plan shall have two years to be effective before the provisions of subsection 3 of the section apply to the district".

HOUSE AMENDMENT NO. 16

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 8, Section 160.011, Line 1, by inserting immediately after all of said line the following:

"160.526. 1. In establishing the academic standards authorized by subsection 1 of section 160.514 and the statewide assessment system authorized by subsection 1 of section 160.518, the state board of education shall consider the work that has been done by other states, recognized regional and national experts, professional education discipline-based associations and other professional education associations. Further, in establishing the academic standards and statewide assessment system, the state board of education shall adopt the work that has been done by consortia of other states and, subject to appropriations, may contract with such consortia to implement the provisions of sections 160.514 and 160.518.

2. The state board of education shall, by contract enlist the assistance of such national experts, as approved by the commission established pursuant to section 160.510, to receive reports, advice and counsel on a regular basis pertaining to the validity and reliability of the statewide assessment system. The reports from such experts shall be received by the commission, which shall make a final determination concerning the reliability and validity of the statewide assessment system. Within six months prior to implementation of the statewide assessment system, the commissioner of education shall inform the president pro tempore of the senate and the speaker of the house about the procedures to implement the assessment system, including a report related to the reliability and validity of the assessment instruments, and the general assembly may, within the next [thirty legislative days] two regular legislative sessions, veto such implementation by concurrent resolution adopted by majority vote of both the senate and the house of representatives.

3. The commissioner of education shall establish a procedure for the state board of education to regularly receive advice and counsel from professional educators at all levels in the state, district boards of education, parents, representatives from business and industry, and labor and community leaders pertaining to the implementation of sections 160.514 and 160.518. The procedure shall include, at a minimum, the appointment of ad hoc committees and shall be in addition to the advice and counsel obtained from the commission pursuant to section 160.510."; and

Further amend the title and enacting clause accordingly.

HOUSE AMENDMENT NO. 17

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 1, In the Title, Line 5, by deleting the word "and" and inserting in lieu thereof a comma ","; and

Further amend said bill, Page 1, In the Title, Line 6, by inserting after the number "166.275" the following: " and 170.250"; and

Further amend said bill, Page 1, In the Title, Line 8, by deleting the word "twenty-seven" and inserting in lieu thereof the word "twenty-eight"; and

Further amend said bill, Page 1, Section A, Line 16, by deleting the word and number "and 166.275" and inserting in lieu thereof the following: ", 166.275 and 170.250"; and

Further amend said bill, Page 1, Section A, Line 17, by deleting the word "twenty-three" and inserting in lieu thereof the word "twenty-four"; and

Further amend said bill, Page 2, Section A, Line 4, by inserting after the number "168.231," the number "170.250,"; and

Further amend said bill, Page 58, Section 168.231, Line 9, by inserting after all of said line the following:

"170.250. 1. The "Video Instructional Development and Educational Opportunity Program" is established to encourage all educational institutions in Missouri to supplement educational opportunities through telecommunications technology and satellite broadcast instruction. The program established by this section is to be administered by the state board of education. The program shall consist of:

(1) Grants to local school districts, state-supported institutions of higher education and public television stations as defined in section 37.205, RSMo, for equipment and instruction;

(2) Instructional programs developed pursuant to this section and transmitted through the airwaves, over telephones lines, or by cable television which are available for all residents of this state without charge as defined in this section; and

(3) Instructional programs developed pursuant to this section which are available to any subscriber according to this section.

2. The "Video Instructional Development and Educational Opportunity Fund" is established in the state treasury and shall be administered by the department of elementary and secondary education at the direction of the state board of education. Moneys deposited in the fund shall consist of revenues generated from state sales and use tax revenues as provided in chapter 144, RSMo, on the rental of films, records or any type of sound or picture transcriptions as provided in subsection 3 of this section. Moneys in the fund shall be used solely for purposes established by this section, except that the department of revenue shall retain no more than one percent of sales tax revenues collected for its administrative costs and all administrative costs of this program incurred by the department of elementary and secondary education shall be paid from this fund, which costs shall not exceed two percent. The administrative fees of the department of revenue and the department of elementary and secondary education shall be determined annually in the appropriation process. Any unexpended balance in the fund at the end of a fiscal year shall be exempt from the provisions of section 33.080, RSMo, relating to the transfer of unexpended balances to the general revenue fund.

3. Until December 31, 1994, the commissioner of administration shall annually estimate and furnish to the director of the department of revenue the appropriate amount of state tax revenues collected pursuant to chapter 144, RSMo, which are directly attributable to the rental of films, records or any type of sound or picture transcriptions. However, the estimate shall only include state sales and use tax revenues collected pursuant to chapter 144, RSMo, which are normally deposited in the state general revenue fund. The director of revenue shall transfer from state sales tax revenues an amount equal to the estimate to the fund provided in subsection 2 of this section. After December 31, 1994, the seller shall separately report on the return to the department of revenue, the aggregate amount of the gross receipts and the amount of tax collected on the rental of films, records or any type of sound or picture transcriptions. The director of revenue shall annually transfer state sales tax revenues collected on the rental of films, records or other type of sound or picture transcriptions, except revenues allocated to the school district trust fund pursuant to section 144.701, RSMo, to the video instructional development and educational opportunity fund. [Beginning January 1, 1999, such revenues shall be deposited to the credit of the general revenue fund.]

4. Within the department of elementary and secondary education, there is established an advisory committee which shall make recommendations to the state board of education on the grant program. The committee shall be composed of twenty-nine members. The members of the committee shall consist of one representative of public television stations as defined in section 37.205, RSMo, and one representative of the cable television industry appointed by the state board of education, one representative of public television stations as defined in section 37.205, RSMo, and one representative of the cable television industry appointed by the coordinating board for higher education, three classroom teachers from the elementary and secondary level appointed by the state board of education, three school administrators of elementary or secondary schools appointed by the state board of education, three members of school boards of local public school districts appointed by the state board of education, four representatives from public community college districts appointed by the coordinating board for higher education, four representatives of state-supported institutions of higher education other than community colleges appointed by the coordinating board for higher education, one representative of the regional consortium for education and technology appointed by the state board of education, one representative of the cooperating school districts of the St. Louis suburban area appointed by the state board of education, two representatives of the public appointed by the governor with the advice and consent of the senate, two members of the senate appointed by the senate president pro tem and two members of the house of representatives appointed by the speaker of the house of representatives. Of all members appointed by the state board of education, no more than four shall be from any one congressional district and of all the members appointed by the coordinating board for higher education, no more than four shall be from any one congressional district. The members of the committee shall serve three-year terms and shall not serve more than two terms consecutively. However, committee members having served two consecutive terms may be reappointed after leaving the committee for at least one three-year term. On August 28, 1992, the committee shall designate nine of its members to serve a term of one year, ten of its members to serve a term of two years, and ten of its members to serve a term of three years. All subsequent appointments shall be for three years. All members shall receive no compensation for their services, but shall be reimbursed for the actual and necessary expenses incurred while serving on the committee out of funds appropriated for that purpose. The committee shall meet at least quarterly and shall annually issue a report together with its recommendations to the state board of education and the general assembly.

5. The state board of education may cooperate with existing programs including the University of Missouri, other institutions of higher education, the cooperating school districts of the St. Louis suburban area, or its successor organization, the regional consortium for education and technology or its successor organization, and any statewide organization of public school governing boards and may delegate or contract for the performance or operation of the respective grant programs. The state board of education shall establish appropriate guidelines for participation by the aforementioned entities and by school districts, community college districts, and public television stations as defined in section 37.205, RSMo, in the grant program. Such guidelines shall include application procedures and shall establish policies for awarding grants in the event that more grant applications are received than are funds available to honor the applications in any fiscal year. In allocating funds to applicants, the state board of education may give due consideration to revenues available from all other sources. The state board of education shall accredit courses offered through this program at the elementary and secondary education level. The coordinating board for higher education shall approve courses taught at the postsecondary level.

6. In any fiscal year, moneys in the fund shall be used first to ensure that any and all school districts, community college districts and state institutions of higher education seeking aid under this program shall receive telecommunications equipment including computers and modems necessary to participate in the satellite learning process or instructional television video; second to provide the school districts, community college districts and state institutions of higher education with access to subjects at the advanced level or the remedial level or which are not taught in the schools of the district or the service area or campus, which subjects shall include courses in continuing education necessary for maintenance or renewal of licenses for all such licensed health care providers; and third to provide enrichment classes for all pupils of the district. However, the state board of education may set aside a portion of the funds to be used to contract with state-supported institutions of higher education and public television stations as defined in section 37.205, RSMo, to develop instructional programs for grades kindergarten through twelve and for undergraduate and graduate coursework suitable for broadcast to the school districts, community college districts and state institutions of higher education as appropriate and to develop the capability to transmit programs cited in this section.

7. Participation by a local school district, a community college district or a state institution of higher education in the program established by this section shall be voluntary. No school district, community college district or state institution of higher education receiving funds under this program shall use those funds for any purpose other than that for which they were intended. Any school district, community college district or state institution of higher education shall be eligible to receive funds under this program regardless of its curriculum, local wealth or previous contractual arrangements to receive satellite broadcast instruction.

8. The office of administration on behalf of the state of Missouri may contract with institutions of higher education for the development or operation or both of state employee training programs transmitted by telecommunications technology.

9. Instructional programs developed pursuant to this section which are transmitted one way through the airwaves or by cable television shall be available to all residents of this state without charge or fee to the extent permitted by the Missouri Constitution. "Without charge or fee" shall not require the providing of equipment to transmit or receive telecommunications instruction or the providing of commercial cable television service. If the instructional program involves two-way, interactive communication between the instructor and the participant, the district or institution operating the program may prescribe academic prerequisites and limit the number of persons who may enroll in the specific program and give preference to residents of the district or institutional attendance area who are age twenty-one or younger but shall not discriminate against any resident on any other basis. A fee may be charged which shall be paid directly by the individual participant, but the fee shall be equal for all participants. If a subscription fee is charged by the originator of the program, the district or institution may pay the subscription fee for all participants from the grant pursuant to this section or from any other public or private fund legally authorized to be used for this purpose. Printed materials designed to facilitate or complement telecommunications programs or electronic reproductions thereof may be made available for loan by the school district, community college or institution of higher education through the public library system subject to the normal rules and regulations of the lending system and in such quantities as may be approved by the governing body of the district or institution. Instructional programs which involve two-way, interactive communication between the instructor and the participant shall also be available to any not for profit organization in this state which is exempt from taxation pursuant to subdivision (19) of subsection 2 of section 144.030, RSMo, upon payment of a reasonable subscription fee as determined by the state board of education. Such fees shall be set on a per-participant, per-course basis. The district or institution or the state board of education may make telecommunication equipment available for purchase at cost by or rental to any not for profit organization in this state which is exempt from taxation pursuant to subdivision (19) of subsection 2 of section 144.030, RSMo.

10. (1) In order to facilitate or complement telecommunications, local exchange telecommunications companies shall file with the public service commission tariffs for provision of local service to public school districts, and may file tariffs for provision of local service to accredited primary or secondary schools owned or operated by private entities and community college districts located within the local exchange telecommunications companies certified area. Such local exchange telecommunications companies shall seek commission authorization to provide local service at rates lower than those charged for business and residential service in effect when the tariff is filed, provided that the proposed rates may not be below the actual cost of providing the service. Upon approval of the public service commission, the rates shall not be classified as discriminatory for the purposes of chapter 392, RSMo.

(2) The public service commission may approve the tariff as submitted, or may, after hearing, modify the tariff in the public interest. The commission may promulgate rules to aid in the implementation of this section.".

HOUSE AMENDMENT NO. 18

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 28, Section 162.601, Line 8, by deleting the word "four" and replacing with the word "three".

HOUSE AMENDMENT NO. 20

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 60, Section 2, Line 1 of said page, by adding after all of said line, the following:

"Section 4. For purposes of determining average daily attendance pursuant to section 163.011 RSMo, summer school attendance applies to the school year following the summer school term."; and

Further amend the title and enacting clause accordingly.

HOUSE AMENDMENT NO. 22

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 1, In the Title, Line 4 of said page, by deleting "and 168.221" and inserting in lieu thereof the following: ", 168.221 and 178.900"; and

Further amend said bill, Page 1, In the Title, Line 8 of said page, by deleting the word "twenty-seven" and inserting in lieu thereof the word "twenty-eight"; and

Further amend said bill, Page 1, Section A, Line 15 of said page, by deleting "and 168.221" and inserting in lieu thereof the following: ", 168.221 and 178.900"; and

Further amend said bill, Page 1, Section A, Line 17 of said page, by deleting the word "twenty-three" and inserting in lieu thereof the word "twenty-four"; and

Further amend said bill, Page 2, Section A, Line 4 of said page, by inserting immediately after the number "168.231," the number "178.900,"; and

Further amend said bill, Page 58, Section 168.231, Line 9 of said page, by inserting after all of said line the following:

"178.900. For the purposes of sections 178.900 to 178.970 the following words mean:

(1) "Department", the department of elementary and secondary education;

(2) "Handicapped persons", a lower range educable or upper range trainable mentally retarded or other handicapped person sixteen years of age or over who has had school training and has a productive work capacity in a sheltered environment adapted to the abilities of the mentally retarded but whose limited capabilities make [him nonemployable] the person unemployable in competitive business and industry and unsuited for vocational rehabilitation training;

(3) "Sheltered workshop", an occupation- oriented facility operated by a not for profit corporation, which[, except for its staff,] employs [only] handicapped persons and has a minimum enrollment of at least fifteen employable handicapped persons;

(4) "Staff", employees of a sheltered workshop engaged in management, work procurement, production, purchasing, supervision, sales, bookkeeping, and secretarial and clerical functions.".

HOUSE SUBSTITUTE AMENDMENT NO. 1 FOR

HOUSE AMENDMENT NO. 23

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 37, Section 162.1100.3, Lines 21 and 22, and page 38, line 1, by deleting all of said lines, and inserting in lieu thereof the following: "the district's voters. The board of the transitional district shall, unless".

HOUSE AMENDMENT NO. 25

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 20, Section 161.220, Line 20 of said page by inserting immediately after the word "recruitment," the following:

"including the need for identifying African-American and other minority students, including males, who show potential or interest in becoming a teacher, recruiting such students as prospective teachers, and methods for providing financial aid to such students,".

HOUSE AMENDMENT NO. 26

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 75, Section 163.011, Line 3 of said page, by inserting immediately before the word "means" the following: "for districts making transfers pursuant to subsection 4 of section 165.011, RSMo, based upon amounts multiplied by the guaranteed tax base or making payments or expenditures related to obligations made pursuant to section 177.088, RSMo, or any combination of such transfers, payments or expenditures,"; and further amend said page, line 7 of said page, by striking the word "and" and inserting in lieu thereof the following: ", and, for other districts, means the sum of tax rates levied for incidental, teachers, debt service and capital projects funds plus the operating levy or sales tax equivalent pursuant to section 162.1100, RSMo, of any transitional school district containing the school district, with no more than eighteen cents of the sum levied in the debt service and capital projects funds. Any portion of the operating levy for school purposes levied in the debt service and capital projects funds in excess of a sum of ten cents must be authorized by a vote of the people, after August 28, 1998, approving an increase in the operating levy, or a full waiver of the rollback pursuant to section 164.013, RSMo, with a tax rate ceiling in excess of the minimum tax rate or an issuance of general obligation bond. The operating levy"; and

Further amend said bill, page 78, section 163.011, line 18 of said page, by inserting after all of said line the following:

"163.021. 1. A school district shall receive state aid for its education program only if it:

(1) Provides for a minimum of one hundred seventy-four days and one thousand forty-four hours of actual pupil attendance in a term scheduled by the board pursuant to section 160.041, RSMo, for each pupil or group of pupils, except that the board shall provide a minimum of one hundred seventy-four days and five hundred twenty-two hours of actual pupil attendance in a term for kindergarten pupils. If any school is dismissed because of inclement weather after school has been in session for three hours, that day shall count as a school day including afternoon session kindergarten students. When the aggregate hours lost in a term due to inclement weather decreases the total hours of the school term below the required minimum number of hours by more than twelve hours for all day students or six hours for one-half day kindergarten students, all such hours below the minimum must be made up in one-half day or full day additions to the term, except as provided in section 171.033, RSMo;

(2) Maintains adequate and accurate records of attendance, personnel and finances, as required by the state board of education, which shall include the preparation of a financial statement which shall be submitted to the state board of education the same as required by the provisions of section 165.111, RSMo, for districts;

(3) Levies an operating levy for school purposes of not less than one dollar and twenty-five cents after all adjustments and reductions on each one hundred dollars assessed valuation of the district;

(4) Computes average daily attendance as defined in subdivision (2) of section 163.011 as modified by section 171.031, RSMo. Whenever there has existed within the district an infectious disease, contagion, epidemic, plague or similar condition whereby the school attendance is substantially reduced for an extended period in any school year, the apportionment of school funds and all other distribution of school moneys shall be made on the basis of the school year next preceding the year in which such condition existed.

2. [No school district shall receive more state aid, as calculated in section 163.031, for its education program than it received per eligible pupil for the school year 1990-91, unless it levies an operating levy for school purposes of not less than two dollars after all adjustments and reductions beginning with the tax year which commences January 1, 1993. For the 1994-95] Beginning with the tax year which commences January 1, 1998, and for the 1998-99 school year and subsequent tax and school years, no school district shall receive more state aid, as calculated under section 163.031 for its education program, exclusive of categorical add-ons, than it received per eligible pupil for the school year 1993-94, unless it has an operating levy for [current] school purposes, as determined pursuant to section 163.011, of not less than two dollars and seventy-five cents after all adjustments and reductions [beginning with the tax year which commences January 1, 1994], with no more than ten cents of this tax rate levied in the debt service and capital projects funds and eligible for entry on line 1 of the state school aid formula contained in subsection 6 of section 163.031; except that, beginning in the 1997-98 school year, any district which is required, pursuant to article X, section 22 of the Missouri Constitution, to reduce its operating levy below the minimum tax rate otherwise required under this subsection shall not be construed to be in violation of this subsection for making such tax rate reduction. Pursuant to section 10(c) of article X of the state constitution, a school district may levy the operating levy for school purposes required by this subsection less all adjustments required pursuant to article X, section 22 of the Missouri Constitution if such rate does not exceed the highest tax rate in effect subsequent to the 1980 tax year. Nothing in this section shall be construed to mean that a school district is guaranteed to receive an amount not less than the amount the school district received per eligible pupil for the school year 1990-91. The provisions of this subsection shall not apply to any school district located in a county of the second classification which has a nuclear power plant located in such district or to any school district located in a county of the third classification which has an electric power generation unit with a rated generating capacity of more than one hundred fifty megawatts which is owned or operated or both by a rural electric cooperative except that such school districts may levy for current school purposes and capital projects an operating levy not to exceed two dollars and seventy-five cents less all adjustments required pursuant to article X, section 22 of the Missouri Constitution.

3. No school district shall receive more state aid, as calculated in section 163.031, for its education program, exclusive of categorical add-ons, than it received per eligible pupil for the school year 1993-1994, if the state board of education determines that the district was not in compliance in the preceding school year with the requirements of section 163.172, until such time as the board determines that the district is again in compliance with the requirements of section 163.172.

4. The department of elementary and secondary education shall evaluate the correlation between district tax rates and district assessed valuation per pupil following each biennial property tax reassessment and shall report its findings to the governor and the general assembly by December first of the year following each reassessment. The findings shall include a calculation of the minimum required property tax rate necessary to maintain a correlation of zero or less between district property tax rate and district assessed valuation per pupil and a report of assessed valuation per pupil and district property tax rate for all districts.

5. No school district shall receive state aid, pursuant to section 163.031, if such district was not in compliance, during the preceding school year, with the requirement, established pursuant to section 160.530, RSMo, to allocate revenue to the professional development committee of the district.

6. No school district shall receive more state aid, as calculated in section 163.031, for its education program, exclusive of categorical add-ons, than it received per eligible pupil for the school year 1993-1994, if the district did not comply in the preceding school year with the requirements of subsection 7 of section 163.031.

7. No school district shall receive state aid, pursuant to section 163.031, if the district failed to make a required payment in the preceding year to the school building revolving fund pursuant to section 166.300, RSMo."; and

Further amend said bill, page 91, section 163.031, line 15 of said page, by inserting immediately after 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. The portion of state aid received by the district pursuant to section 163.031, RSMo, based upon the portion of the tax rate in the debt service or capital projects funds, respectively, which is included in the operating levy for school purposes pursuant to section 163.011, RSMo, shall be placed to the credit of the debt service fund or capital projects fund, respectively. 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] fund 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.

10. In addition to other transfers authorized under subsections 1 to 9 of this section, a district may transfer from the teachers' and incidental funds to the capital projects fund the amount necessary to repay costs of one or more guaranteed energy savings performance contracts to renovate buildings in the school district; provided that the contract is only for energy conservation measures, as defined in section 640.651, RSMo, and provided that the contract specifies that no payment or total of payments shall be required from the school district until at least an equal total amount of energy and energy-related operating savings and payments from the vendor pursuant to the contract have been realized by the school district."; and

Further amend the title and enacting clause accordingly.

HOUSE SUBSTITUTE AMENDMENT NO. 1 FOR

HOUSE AMENDMENT NO. 27

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 58, Section 1, Line 10, by deleting the words: "with more than thirty thousand students,".

HOUSE AMENDMENT NO. 29

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 1, In the Title, Line 8 of said page, by deleting the word "twenty-seven" and inserting in lieu thereof the word "twenty-eight"; and

Further amend said bill, Page 1, Section A, Line 17 of said page, by deleting the word "twenty-three" and inserting in lieu thereof the word "twenty-four"; and

Further amend said bill, Page 2, Section A, Line 4 of said page, by deleting "and 2" and inserting in lieu thereof the following: ", 2 and 4"; and

Further amend said bill, Page 60, Section 2, Line 1 of said page, by inserting after all of said line the following:

"Section 4. The board of directors of any school district may allow any teacher or administrator in a public school district of the state of Missouri to read or post in a public school building, classroom or at a school event any excerpts or portions of the:

(1) National motto;

(2) National anthem;

(3) Pledge of allegiance;

(4) Preamble of the Missouri Constitution;

(5) Declaration of Independence;

(6) Mayflower Compact;

(7) Writings, speeches, documents, and proclamations of the founding fathers and presidents of the United States;

(8) United States Supreme Court decisions; and

(9) Acts of the United States Congress including the published text of the Congressional Record.

There shall be no content-based censorship of American history or heritage in the state of Missouri based on religious references in the writing, document and records specified in this section.".

HOUSE AMENDMENT NO. 30

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, by inserting on page 39, line 14, after the words "vocational courses," the following: "[", and further amend by

inserting on page 39, line 21, after the words "second previous year" the following: "] or other public school district board of education approved education programs during the regular school term", and further amend by

inserting on page 39, line 22, after the words "state board of education shall" the following: "determine public school district route approval procedures to be used by each public school district board of education to", and further amend by

inserting on page 40, line 1, after the words "total miles each" the following: "public school", and further amend by

inserting on page 40, line 2, after the word "district" the following: "[", and further amend said line by

inserting after the word "economical" the following: "] needs for safe and cost-efficient", and further amend by

inserting on page 40, line 3, after the words "the pupils and" the following: "the state board of education", and further amend said line by

inserting after the words "allowable costs." the following: "[", and further amend by

inserting on page 40, line 14, after the words "shall not be affected." the following: "]", and further amend by

inserting on page 40, line 22, after the number "3." the following: "[", and further amend by

inserting on page 41, line 9, after the words "secondary education." the following: "]", and further amend by

inserting on page 41, line 13, before the words "which may" the following: "[", and further amend by

inserting on page 41, line 18, after the word "transported", but before ";" the following: "]".

HOUSE AMENDMENT NO. 36

Amend House Substitute for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bill No. 781, Page 91, Section C, Line 17, by adding after the words "1999", the following "for all school districts in the state of Missouri with the exception of a metropolitan school district. The provisions of section B of this act shall become effective on July 1, 1999, for a metropolitan school district.".

Emergency clause defeated.

In which the concurrence of the Senate is respectfully requested.

CONFERENCE COMMITTEE REPORTS

Senator Maxwell, on behalf of the conference committee appointed to act with a like committee from the House on SCS for HB 927, as amended, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 927

Mr. President: Your Conference Committee, appointed to confer with a like committee of the House, on Senate Committee Substitute for House Bill No. 927, with Senate Amendment No. 1, Senate Amendment No. 1 to Senate Amendment No. 2, Senate Amendment No. 2 to Senate Amendment No. 2, Senate Amendment No. 2, as amended, Senate Amendment No. 3, Senate Amendment No. 4, Senate Amendment No. 6, Senate Amendment No. 7, Senate Amendment No. 8, Senate Amendment No. 10, Senate Amendment No. 11, Senate Amendment No. 12, Senate Amendment No. 13, Senate Amendment No. 15 and Senate Amendment No. 16; 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 Senate recede from its position on Senate Committee Substitute for House Bill No. 927, as amended;

2. That the House recede from its position on House Bill No. 927;

3. That the attached Conference Committee Substitute for Senate Committee Substitute for House Bill No. 927 be third read and finally passed.

FOR THE SENATE: FOR THE HOUSE:
/s/ William Clay /s/ Craig Hosmer
/s/ Ed Quick /s/ Jim Foley
/s/ Joe Maxwell /s/ Philip Smith
/s/ Roseann Bentley /s/ Carl H. Hendrickson
/s/ Sam Graves /s/ Chuck Wooten


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

YEAS--Senators
Banks Caskey Clay Curls
DePasco Goode Graves House
Howard Johnson Lybyer Mathewson
Maxwell McKenna Mueller Quick
Schneider Scott Wiggins--19
NAYS--Senators
Bentley Childers Ehlmann Flotron
Kenney Kinder Klarich Rohrbach
Russell Sims Singleton Westfall
Yeckel--13
Absent--Senators
Jacob Staples--2
Absent with leave--Senators--None

On motion of Senator Maxwell, CCS for SCS for HB 927, entitled:

CONFERENCE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 927

An Act to repeal section 36.150, RSMo 1994, and section 105.473, RSMo Supp. 1997, relating to certain political activities, and to enact in lieu thereof seven new sections relating to the same subject, with penalty provisions.

Was read the 3rd time and passed by the following vote:

YEAS--Senators
Banks Caskey Clay Curls
DePasco Goode House Howard
Johnson Lybyer Mathewson Maxwell
McKenna Mueller Quick Schneider
Scott Staples Wiggins--19
NAYS--Senators
Bentley Childers Ehlmann Flotron
Graves Kenney Kinder Klarich
Rohrbach Russell Sims Singleton
Westfall Yeckel--14
Absent--Senator Jacob--1
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.

PRIVILEGED MOTIONS

Senator House moved that the Senate refuse to concur in HS for HCS for SS for SCS for SB 781, as amended, and request the House to recede from its position or failing to do so, grant the Senate a conference thereon, which motion prevailed.

Senator Wiggins assumed the Chair.

Senator Johnson assumed the Chair.

Senator Mathewson assumed the Chair.

Senator Quick moved that SS No. 2 for SCS for SB 632, with HS, as amended, be taken up for 3rd reading and final passage, which motion prevailed.

Senator Quick moved that HS for SS No. 2 for SCS for SB 632, as amended, be adopted.

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

Senator Quick moved that the Senate refuse to concur in HS for SS No. 2 for SCS for SB 632, as amended, and request the House to grant the Senate a conference thereon.

Senators Rohrbach and Goode offered the following substitute motion:

SUBSTITUTE MOTION

Offered by Senators Rohrbach and Goode

We move that the Senate refuse to concur in HS for SS No. 2 for SCS for SB 632, as amended, and request that the House grant a conference thereon.

We further move that the conferees be allowed to exceed the differences and that the Senate conferees be bound to adopt the following amendment:

Amend HS for SS No. 2 for SCS for SB 632, page 3, lines 10 to 22 of said page, by striking all of said lines; and further amend said bill, page 4, lines 1 to 6 of said page, by striking all of said lines and inserting in lieu thereof the following:

"for a five-dollar copayment.

6. Parents and guardians of uninsured children with incomes between two hundred twenty-six and three hundred percent of the federal poverty level who do not have access to affordable employer-sponsored health care insurance or other affordable health care coverage may obtain coverage pursuant to this subsection. For the purposes of this section, "affordable employer-sponsored health care insurance or other affordable health care coverage" refers to health insurance requiring a monthly premium less than or equal to one hundred thirty-three percent of the monthly average premium required in the state's current Missouri consolidated health care plan. The parents and guardians of eligible uninsured children pursuant to this subsection are responsible for co-payments equal to the average co-payments required in the current Missouri consolidated health care plan rounded to the nearest dollar, and a monthly premium equal to the average premium required for the Missouri consolidated health care plan; provided that the total aggregate cost-sharing for a family covered by these sections shall not exceed five percent of such family's income for the years involved. No"; and

Further amend said bill, page 5, line 2 of said page, by inserting after all of said line the following:

"8. There shall be a thirty day waiting period after enrollment for uninsured children in families with an income of more than two hundred twenty-five percent of the federal poverty level before the child becomes eligible for insurance under the provisions of sections 208.185 to 208.187. If the parent or guardian with an income of more than two hundred twenty-five percent of the federal poverty level fails to meet the copayment or premium requirements, the child shall not be eligible for coverage under this act for six months after the department provides notice of such failure to the parent or guardian."; and

Further amend said bill by renumbering the remaining subsections accordingly."; and

Further amend said bill, page 7, line 11 of said page, by inserting after all of said line the following:

"12. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is promulgated under the authority delegated in this chapter shall become effective only if the agency has fully complied with all of the requirements of 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 as of the effective date of this act, however, nothing in this section shall be interpreted to repeal or affect the validity of any rule adopted or promulgated prior to the effective date of this act. If the provisions of section 536.028, RSMo, apply, 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, except that nothing in this act shall affect the validity of any rule adopted and promulgated prior to the effective date of this act."; and

Further that the Senate conferees be instructed to reject House Amendment No. 2.

Senator Rohrbach moved that the above substitute motion be adopted.

President Wilson assumed the Chair.

Senator Mathewson assumed the Chair.

At the request of Senator Rohrbach, the above substitute motion was withdrawn.

Senator Quick moved that the Senate refuse to concur in HS for SS No. 2 for SCS for SB 632, as amended, and request the House grant the Senate a conference thereon and further that the conferees be allowed to exceed the differences, which motion prevailed.

Senator Flotron moved that the Senate refuse to recede from its position on SA 1 to HCS for HB 1189 and grant the House 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 House has dissolved the conference committee on SCS for HS for HCS for HB 1636 as amended and has adopted the SCS for HS for HCS for HB 1636 as amended and has again taken up and passed SCS for HS for HCS for HB 1636 as amended.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has adopted SCS for HB 1043 and has again taken up and passed SCS for HB 1043.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has adopted SCS for HB 1599 and has again taken up and passed SCS for HB 1599.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has concurred in SA 1 to HB 1928 and has again taken up and passed HB 1928 as amended.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to adopt SCS for HS for HCS for HBs 1601, 1591, 1592, 1479 and 1615 and HCS for HBs 1094, 1213, 1311 and 1428 as amended and requests the Senate to recede from its position and failing to do so, grant the House a conference thereon.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to recede from its position on HCS for SS for SB 910 and grants the Senate a conference thereon.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken up and adopted the Conference Committee Report on HCS for SB 739 and has taken up and passed CCS for HCS for SB 739.

Bill ordered enrolled.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken up and adopted the Conference Committee Report on SCS for HS for HCS for HB 1161 and has taken up and passed CCS for SCS for HS for HCS for HB 1161.

Emergency clause adopted.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken up and adopted the Conference Committee Report on SCS for HB 1918 and has taken up and passed CCS for SCS for HB 1918.

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 787, entitled:

An Act to amend chapter 620, RSMo, by adding thereto six new sections relating to the development of microenterprise programs.

With House Amendments Nos. 1 and 2.

HOUSE AMENDMENT NO. 1

Amend House Committee Substitute for Senate Bill No. 787, Page 1, In the Title, Lines 2 and 3, by deleting all of said lines and inserting in lieu thereof the following: "To repeal section 143.805, RSMo 1994, and to enact in lieu thereof thirteen new sections relating to microeconomic development."; and

Further amend said bill, Page 1, Section A, Lines 1 and 2, by deleting all of said lines and inserting in lieu thereof the following:

"Section A. Section 143.805, RSMo 1994, is repealed and thirteen new sections enacted in lieu thereof, to be known as sections 143.805, 620.1450, 620.1453, 620.1456, 620.1459, 620.1461, 620.1465, 1, 2, 3, 4, 5 and 6, to read as follows:

143.805. 1. Credits granted by other provisions of the statutes shall be applied against the tax imposed by this chapter in the following order:

(1) Credit for income tax paid to another state authorized in section 143.081;

(2) New business facility credit authorized in sections 135.100 to 135.160, RSMo;

(3) Economic development credit authorized in subsection 6 of section 100.286, RSMo;

(4) Missouri low-income housing tax credit authorized in subsection 2 of section 135.352, RSMo;

(5) Employment of unemployed agriculture workers tax credit authorized in sections 135.275 to 135.287, RSMo;

(6) Wood energy producer tax credit authorized in sections 135.300 to 135.311, RSMo;

(7) Contributions to innovations centers and the corporation for science and technology tax credit authorized in sections 348.300 to 348.318, RSMo;

(8) Neighborhood assistance credit authorized in sections 32.105 to 32.125, RSMo;

(9) Special needs child adoption credit authorized in section 135.327, RSMo;

(10) Enterprise zone credit authorized in sections 135.200 to 135.255, RSMo;

(11) Senior citizens property tax credit authorized in sections 135.010 to 135.035, RSMo[.];

(12) Contributions to a family development account reserve fund authorized in sections 1 to 6 of this act.

2. The director of revenue may prescribe the priority of any other credit authorized by law."; and

Further amend said bill, Page 3, Section 620.1465, Line 4, by inserting after all of said line the following:

"Section 1. 1. Sections 1 to 6 of this act shall be known and may be cited as the family development account program.

2. For purposes of sections 1 to 6 of this act, the following terms mean:

(1) "Account holder", a person who is the owner of a family development account;

(2) "Community-based organization", any religious or charitable association formed pursuant to chapter 352, RSMo, that is approved by the director of the department of economic development to implement the family development account program;

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

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

(5) "Family development account", a financial instrument established pursuant to section 3 of this act. Family development accounts shall be considered the same as individual developments accounts as referenced in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996;

(6) "Family development account reserve fund", the fund created by an approved community-based organization for the purposes of funding the costs incurred in the administration of the program and for providing matching funds for moneys in family development accounts;

(7) "Federal poverty level", the most recent poverty income guidelines published in the calendar year by the United States Department of Health and Human Services;

(8) "Financial institution", any bank, trust company, savings bank, credit union or savings and loan association as defined in chapter 362, 369 or 370, RSMo, and with an office in Missouri which is approved by the director for participation in the program;

(9) "Program", the Missouri family development account program established in sections 1 to 6 of this act;

(10) "Program contributor", a person or entity who makes a contribution to a family development account reserve fund and is not the account holder.

Section 2. 1. There is hereby established within the department of economic development a program to be known as the "Family Development Account Program". The program shall provide eligible families and individuals with an opportunity to establish special savings accounts for moneys which may be used by such families and individuals for education, job training, home ownership, home improvement or small business capitalization.

2. The department shall solicit proposals from community-based organizations seeking to administer the accounts on a not for profit basis. Community-based organization proposals shall include:

(1) A requirement that the individual account holder or the family of an account holder match the contributions of a community-based organization member by contributing cash;

(2) A process for including account holders in decision making regarding the investment of funds in the accounts;

(3) Specifications of the population or populations targeted for priority participation in the program;

(4) A requirement that the individual account holder or the family of an account holder attend economic literacy seminars; and

(5) A process for including economic literacy seminars in the family development account program.

3. In reviewing the proposals of community-based organizations, the department shall consider the following factors:

(1) The not for profit status of such organization;

(2) The fiscal accountability of the community-based organization;

(3) The ability of the community-based organization to provide or raise moneys for matching contributions;

(4) The ability of the community-based organization to establish and administer a reserve fund account which shall receive all contributions from program contributors; and

(5) The significance and quality of proposed auxiliary services, including economic literacy seminars, and their relationship to the goals of the family development account program.

4. No more than fifteen percent of all funds in the reserve fund account may be used for administrative costs of the program.

5. The department shall promulgate rules and regulations to implement and administer the provisions of sections 1 to 6 of this act. No rule or portion of a rule promulgated pursuant to the authority of sections 1 to 6 of this act shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.

Section 3. 1. A family or individual whose household income is less than or equal to two hundred percent of the federal poverty level may open a family development account for the purpose of accumulating and withdrawing moneys for specified expenditures. The account holder may withdraw moneys from the account on the approval of the community-based organization, without penalty, for any of the following expenditures:

(1) Educational costs for any family member at an accredited institution of higher education;

(2) Job training costs for any family member eighteen years of age or older, at an accredited or licensed training program;

(3) Purchase of a primary residence;

(4) Major repairs or improvements to a primary residence; or

(5) Start-up capitalization of a small business for any family member eighteen years of age or older.

2. Financial institutions approved by the department shall be permitted to establish family development accounts pursuant to sections 1 to 6 of this act. The financial institution shall certify to the department, on forms prescribed by the department and accompanied by any documentation required by the department, that such accounts have been established pursuant to the provisions of sections 1 to 6 of this act and that deposits have been made on behalf of the account holder.

3. A financial institution establishing a family development account shall:

(1) Keep the account in the name of the account holder;

(2) Permit deposits to be made in the account by the following, subject to the indicated conditions:

(a) The account holder; or

(b) A community-based organization on behalf of the account holder. Such a deposit may include moneys to match the account holder's deposits, up to a three-to-one match rate;

(3) Require the account to earn at least the market rate of interest; and

(4) Permit the account holder, after obtaining the cosignature of the administrator of the community-based organization, to withdraw moneys from the account for any of the purposes listed in subsection 1 of this section.

4. The total of all deposits or credits deposited from all sources into a family development account in a calendar year shall not exceed two thousand dollars. The total balance in a family development account shall not exceed fifty thousand dollars.

Section 4. 1. Any moneys withdrawn during a calendar year from a family development account by an account holder which are not withdrawn pursuant to subsection 1 of section 3 of this act are subject to a penalty of fifteen percent and the account shall be closed. The account holder shall receive the moneys which the account holder deposited in the account less any penalties, but all matching moneys shall be forfeited.

2. All penalty moneys and moneys forfeited by an account holder pursuant to subsection 1 of this section shall be returned to the family development account reserve fund of the community-based organization.

3. In the event of an account holder's death, the account may be transferred to the ownership of a contingent beneficiary. An account holder shall name contingent beneficiaries at the time the account is established and may change such beneficiaries at any time. If the named beneficiary is deceased or otherwise cannot accept the transfer, the moneys shall be transferred to the family development account reserve fund of the community-based organization.

Section 5. 1. Moneys deposited in or withdrawn pursuant to subsection 1 of section 3 of this act from a family development account by an account holder are exempted from taxation pursuant to chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, and chapter 147, 148 or 153, RSMo;

2. Interest earned by a family development account is exempted from taxation pursuant to chapter 143, RSMo.

3. Any funds in a family development account, including accrued interest, shall be disregarded when determining eligibility to receive, or the amount of, any public assistance or benefits.

4. A program contributor shall be allowed a credit against the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, and chapter 147, 148 or 153, RSMo, pursuant to sections 1 to 6 of this act. Contributions up to fifty thousand dollars per program contributor are eligible for the tax credit which shall not exceed fifty percent of the contribution amount. Credits may be carried forward for up to five years, provided all such credits shall be claimed within ten years of the year in which the contribution was made.

5. The department of economic development shall verify all tax credit claims by contributors. The administrator of the community-based organization, with the cooperation of the participating financial institutions, shall submit the names of contributors and the total amount each contributor contributes to a family development account reserve fund for the calendar year. The director shall determine the date by which such information shall be submitted to the department by the local administrator. The department shall submit verification of qualified tax credits pursuant to sections 1 to 6 of this act to the department of revenue.

6. The total tax credits authorized pursuant to sections 1 to 6 of this act shall not exceed four million dollars in any fiscal year.

7. The tax credit allowed by this section shall apply to all taxable years beginning after December 31, 1998.

Section 6. Subject to appropriations and to the provisions of chapter 34, RSMo, the department shall annually award up to one hundred thousand dollars for an independent evaluation of the program. Based on this program evaluation, the department shall provide a comprehensive report on the program to the speaker of the house and the president pro tem of the senate by March first of each year, beginning in 1999.".

HOUSE AMENDMENT NO. 2

Amend House Committee Substitute for Senate Bill No. 787, Page 1, In the title, Lines 2 to 3, by deleting all of said lines and inserting in lieu thereof the following: "To repeal sections 253.557 and 253.559, RSMo 1994, relating to the development of microenterprise programs, and to enact in lieu thereof eight new sections relating to the same subject."; and

Further amend said bill, Page 1, Section A, Lines 1 to 2, by deleting all of said lines and inserting in lieu thereof the following: "Section A. Sections 253.557 and 253.559, RSMo 1994, are repealed and eight new sections enacted in lieu thereof, to be known as sections 253.557, 253.559, 620.1450, 620.1453, 620.1456, 620.1459, 620.1461 and 620.1465, to read as follows:

253.557. 1. If the amount of such credit exceeds the total tax liability for the year in which the rehabilitated property is placed in service, the amount that exceeds the state tax liability may be carried back to any of the three preceding years or carried forward for credit against the taxes imposed pursuant to chapter 143, RSMo, except for sections 143.191 to 143.265, RSMo, for the succeeding ten years, or until the full credit is used, whichever occurs first. Credits granted to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the partners, members or owners respectively pro rata or pursuant to an executed agreement among the partners, members or owners documenting an alternate distribution method.

2. Notwithstanding any provision of law to the contrary, any entity which is not for profit, excluding religious and governmental institutions, may sell, assign, exchange, convey or otherwise transfer tax credits allowed pursuant to section 253.550 under the terms and conditions prescribed in subdivisions (1) and (2) of this subsection. Such entity, hereinafter the assignor for the purposes of this subsection, may sell, assign, exchange or otherwise transfer earned tax credits:

(1) For no less than ninety percent of the par value of such credit; and

(2) In an amount not to exceed one hundred percent of annual earned credits.

The assignee of the tax credits, hereinafter the assignee for purposes of this subsection, may use acquired credits to offset up to one hundred percent of the tax liabilities otherwise imposed pursuant to chapter 143, RSMo, and chapter 148, RSMo, except for sections 143.191 to 143.265, RSMo. Unused credits in the hands of the assignee may be carried forward and carried back in accordance with subsection 1 of this section. The assignor shall enter into a written agreement with the assignee establishing the terms and conditions of the agreement and shall perfect such transfer by notifying the department of economic development in writing within thirty calendar days following the effective date of the transfer and shall provide any information as may be required by the department of economic development to administer and carry out the provisions of this section. Notwithstanding any provision of law to the contrary, the excess of the par value of such credits over the amount paid by the assignee for such credit shall be taxable as income of the assignee. The aggregate of all tax credits authorized pursuant to the provisions of this subsection per eligible property shall not exceed ten million dollars per year.

3. The provisions of subsection 2 of this section shall expire December 31, 2003.

253.559. 1. To claim the credit authorized pursuant to sections 253.550 to 253.561 of senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly and section 253.557 of this act, the taxpayer shall apply to the department of economic development which, in consultation with the department of natural resources, shall determine the amount of eligible rehabilitation costs and expenses and whether the rehabilitation meets the standards of the Secretary of the United States Department of the Interior for rehabilitation as determined by the state historic preservation officer of the Missouri department of natural resources. The issuing of certificates of eligible credits to taxpayers shall be performed by the department of economic development. The taxpayer shall attach the certificate to all Missouri income tax returns on which the credit is claimed.

2. The department of economic development shall determine, on an annual basis, the overall economic impact to the state from the rehabilitation of eligible property.".

In which the concurrence of the Senate is respectfully requested.

PRIVILEGED MOTIONS

Senator Scott moved that the Senate refuse to recede from its position on SCS for HS for HCS for HBs 1601, 1591, 1592, 1479 and 1615 and HCS for HBs 1094, 1213, 1311 and 1428, as amended, and grant the House a conference thereon, which motion prevailed.

Senator Wiggins moved that the Senate refuse to recede from its position on SCA 1 to HB 1301 and grant the House a conference thereon, which motion prevailed.

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 President Pro Tem McKenna.

PRIVILEGED MOTIONS

Senator Howard moved that SCS for SCR 37, with HCS, be taken up for adoption, which motion prevailed.

On motion of Senator Howard, HCS for SCS for SCR 37 was adopted by the following vote:

YEAS--Senators
Bentley Caskey Childers Clay
DePasco Ehlmann Goode Graves
House Howard Jacob Johnson
Kenney Klarich Lybyer Mathewson
Maxwell McKenna Mueller Quick
Rohrbach Russell Schneider Scott
Sims Singleton Westfall Wiggins--28
NAYS--Senators--None
Absent--Senators
Banks Curls Flotron Kinder
Staples Yeckel--6
Absent with leave--Senators--None


CONFERENCE COMMITTEE APPOINTMENTS

President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on HCS for HB 1189, with SCA 1: Senators Scott, Quick, Curls, Flotron and Klarich.

Also,

President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on HB 1301, with SCA 1: Senators Wiggins, Goode, Jacob, Mueller and Childers.

Also,

President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on SCS for HS for HCS for HBs 1601, 1591, 1592, 1479 and 1615 and HCS for HBs 1094, 1213, 1311 and 1428, as amended: Senators Scott, Caskey, Mathewson, Sims and Ehlmann.

Also,

President Pro Tem McKenna appointed the following conference committee to act with a like committee from the House on HCS for SS for SB 910: Senators Caskey, McKenna, Scott, Westfall and Yeckel.

CONFERENCE COMMITTEE REPORTS

Senator Howard, on behalf of the conference committee appointed to act with a like committee from the House on SB 945, as amended, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

SENATE BILL NO. 945

Mr. President: Your Conference Committee, appointed to confer with a like committee of the House, on Senate Bill No. 945, with House Amendment No. 1; 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 Amendment No. 1;

2. That the Senate recede from its position on Senate Bill No. 945;

3. That the attached Conference Committee Substitute for Senate Bill No. 945 be adopted; and

4. That Conference Committee Substitute for Senate Bill No. 945 be truly agreed to and finally passed.

FOR THE SENATE: FOR THE HOUSE:
/s/ Jerry Howard /s/ Larry Thomason
/s/ Harold L. Caskey /s/ Sam Leake
/s/ Mike Lybyer /s/ Marilyn Williams
/s/ Doyle Childers /s/ Jim Howerton
/s/ Betty Sims /s/ Jim Graham 106


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

YEAS--Senators
Bentley Caskey Childers Clay
DePasco Ehlmann Flotron Goode
Graves House Howard Jacob
Johnson Kenney Kinder Klarich
Lybyer Mathewson Maxwell McKenna
Mueller Quick Rohrbach Schneider
Scott Sims Singleton Westfall
Wiggins--29
NAYS--Senators--None
Absent--Senators
Banks Curls Russell Staples
Yeckel--5
Absent with leave--Senators--None

On motion of Senator Howard, CCS for SB 945, entitled:

CONFERENCE COMMITTEE SUBSTITUTE

FOR SENATE BILL NO. 945

An Act to repeal section 275.350, RSMo 1994, and section 263.527, RSMo Supp. 1997, relating to agricultural commodities, and to enact in lieu thereof two new section relating to the same subject, with an emergency clause.

Was read the 3rd time and passed by the following vote:

YEAS--Senators
Bentley Caskey Childers Clay
DePasco Ehlmann Flotron Goode
Graves House Howard Jacob
Johnson Kenney Kinder Klarich
Lybyer Mathewson Maxwell McKenna
Mueller Quick Rohrbach Schneider
Scott Sims Singleton Westfall
Wiggins--29
NAYS--Senators--None
Absent--Senators
Banks Curls Russell Staples
Yeckel--5
Absent with leave--Senators--None

The President Pro Tem declared the bill passed.

The emergency clause was adopted by the following vote:

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

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.



PRIVILEGED MOTIONS

Senator Clay moved that the Senate refuse to concur in HCS for SB 787, 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 REPORTS

Senator Klarich, on behalf of the conference committee appointed to act with a like committee from the House on HCS for SB 809, submitted the following conference committee report no. 2:

CONFERENCE COMMITTEE REPORT NO. 2 ON

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 809

Mr. President: Your Conference Committee, appointed to confer with a like committee of the House on House Committee Substitute for Senate Bill No. 809, begs leave to report that we, after free and fair discussion of the differences between the House and the Senate, have agreed to recommend and do recommend to the respective bodies as follows:

1. That the House recede from its position on House Committee Substitute for Senate Bill No. 809;

2. That the Senate recede from its position on Senate Bill No. 809;

3. That the attached Conference Committee Substitute No. 2 for House Committee Substitute for Senate Bill No. 809 be adopted.

FOR THE SENATE: FOR THE HOUSE:
/s/ David Klarich /s/ Thomas J. Hoppe
/s/ John E. Scott /s/ Mike Gibbons
/s/ Steve Ehlmann /s/ David Reynolds
/s/ Danny Staples /s/ David Levin
/s/ William Clay May Scheve


Senator Klarich moved that the above conference committee report no. 2 be adopted, which motion prevailed by the following vote:

YEAS--Senators
Caskey Clay DePasco Ehlmann
Goode Graves House Howard
Jacob Kenney Kinder Klarich
Lybyer McKenna Quick Russell
Scott Wiggins Yeckel--19
NAYS--Senators
Banks Bentley Childers Flotron
Johnson Mathewson Maxwell Mueller
Rohrbach Schneider Sims Singleton
Westfall--13
Absent--Senators
Curls Staples--2
Absent with leave--Senators--None

On motion of Senator Klarich, CCS No. 2 for HCS for SB 809, entitled:

CONFERENCE COMMITTEE SUBSTITUTE No. 2 FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 809

An Act to repeal section 71.011, RSMo 1994, and sections 72.080, 72.400, 72.401, 72.405 and 72.407, RSMo Supp. 1997, relating to certain real property, and to enact in lieu thereof nine new sections relating to the same subject.

Was read the 3rd time and passed by the following vote:

YEAS--Senators
Bentley Caskey Childers Clay
Curls DePasco Ehlmann Goode
Graves House Howard Jacob
Johnson Kenney Kinder Klarich
Lybyer Mathewson Maxwell McKenna
Quick Rohrbach Russell Schneider
Scott Staples Wiggins Yeckel--28
NAYS--Senators
Banks Flotron Mueller Sims
Singleton Westfall--6
Absent--Senators--None
Absent with leave--Senators--None

The President Pro Tem declared the bill passed.

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

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

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

Senator Johnson, on behalf of the conference committee appointed to act with a like committee from the House on HS No. 2 for HCS for SS for SCS for SBs 675, 483, 490 and 564, as amended, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

HOUSE SUBSTITUTE NO. 2 FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILLS NOS. 675, 483, 490 and 564Mr. President: Your Conference Committee, appointed to confer with a like committee of the House, on House Substitute No. 2 for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bills Nos. 675, 483, 490 and 564, with House Substitute Amendment No. 1 for House Amendment No. 2, House Substitute Amendment No. 1 for House Amendment No. 3, House Amendment No. 4 and House Amendment No. 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 No. 2 for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bills Nos. 675, 483, 490 and 564, as amended;

2. That the Senate recede from its position on Senate Substitute for Senate Committee Substitute for Senate Bills Nos. 675, 483, 490 and 564;

3. That the attached Conference Committee Substitute for House Substitute No. 2 for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bills Nos. 675, 483, 490 and 564 be adopted;

4. That the attached Conference Committee Substitute for House Substitute No. 2 for House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bills Nos. 675, 483, 490 and 564 be truly agreed to and finally passed.

FOR THE SENATE: FOR THE HOUSE:
/s/ Sidney Johnson /s/ May Scheve
/s/ Harry Wiggins /s/ Joan Bray
/s/ Bill McKenna /s/ Steve Gaw
/s/ Doyle Childers /s/ Don Lograsso
/s/ Walt Mueller /s/ Carl M. Vogel


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

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

On motion of Senator Johnson, CCS for HS No. 2 for HCS for SS for SCS for SBs 675, 483, 490 and 564, entitled:

CONFERENCE COMMITTEE SUBSTITUTE FOR HOUSE SUBSTITUTE NO. 2 FOR

HOUSE COMMITTEE SUBSTITUTE FOR

SENATE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILLS NOS. 675, 483, 490 and 564

An Act to repeal sections 135.030 and 143.161, RSMo 1994, and section 135.010, RSMo Supp. 1997, relating to tax relief, and to enact in lieu thereof three new sections relating to the same subject.

Was read the 3rd time and passed by the following vote:

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

The President Pro Tem declared the bill passed.

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

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

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

Senator Caskey, on behalf of the conference committee appointed to act with a like committee from the House on SCS for HB 1918, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1918

Mr. President: Your Conference Committee, appointed to confer with a like committee of the House on Senate Committee Substitute for House Bill No. 1918, begs leave to report that we, after free and fair discussion of the differences between the House and the Senate, have agreed to recommend and do recommend to the respective bodies as follows:

1. That the House recede from its position on House Bill No. 1918;

2. That the Senate recede from its position on Senate Committee Substitute for House Bill No. 1918;

3. That the attached Conference Committee Substitute for Senate Committee Substitute for House Bill No. 1918 be adopted.

FOR THE SENATE: FOR THE HOUSE:
/s/ Harold Caskey /s/ Don Lograsso
/s/ Ted House /s/ Carol Stroker
/s/ Betty Sims /s/ Craig Hosmer
/s/ Roseann Bentley /s/ Luann Ridgeway
/s/ Ronnie DePasco /s/ Lana Ladd Stokan


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

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

On motion of Senator Caskey, CCS for SCS for HB 1918, entitled:

CONFERENCE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1918

An Act to repeal sections 105.271, 565.070 and 566.023, RSMo 1994, and sections 453.010, 453.015, 453.030, 453.040, 453.070, 453.075, 453.077, 453.080 and 453.170, RSMo Supp. 1997, relating to domestic relations, and to enact in lieu thereof nineteen new sections relating to the same subject, with penalty provisions and an effective date for a certain section.

Was read the 3rd time and passed by the following vote:

YEAS--Senators
Banks Bentley Caskey Childers
Clay Curls DePasco Ehlmann
Flotron Goode Graves House
Howard Johnson Kenney Kinder
Klarich Lybyer Mathewson Maxwell
McKenna Mueller Quick Rohrbach
Russell Schneider Scott Sims
Singleton Staples Westfall Wiggins
Yeckel--33
NAYS--Senators--None
Absent--Senator Jacob--1
Absent with leave--Senators--None

The President Pro Tem declared the bill passed.

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.

Senator Goode, on behalf of the conference committee appointed to act with a like committee from the House on SCS for HS for HCS for HB 1161, as amended, submitted the following conference committee report:

CONFERENCE COMMITTEE REPORT ON

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1161

Mr. President: Your Conference Committee, appointed to confer with a like committee of the House on Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1161, as amended, begs leave to report that we, after free and fair discussion of the differences between the House and the Senate, have agreed to recommend and do recommend to the respective bodies as follows:

1. That the House recede from its position on House Substitute for House Committee Substitute for House Bill No. 1161;

2. That the Senate recede from its position on Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1161, as amended;

3. That the attached Conference Committee Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1161 be adopted.

FOR THE SENATE: FOR THE HOUSE:
/s/ Wayne Goode /s/ Gary Wiggins
/s/ Joe Maxwell /s/ Randall Relford
/s/ Steve Ehlmann /s/ Jim Howerton
/s/ Ken Jacob /s/ Larry Crawford
/s/ Doyle Childers /s/ Bill Ransdall


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

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

On motion of Senator Goode, CCS for SCS for HS for HCS for HB 1161, entitled:

CONFERENCE COMMITTEE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1161

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. 1997, relating to public drinking water, and to enact in lieu thereof eighteen new sections relating to the same subject, with penalty provisions and an emergency clause.

Was read the 3rd time and passed by the following vote:

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

The President Pro Tem declared the bill passed.

The emergency clause was adopted by the following vote:

YEAS--Senators
Banks Bentley Caskey Childers
Clay Curls DePasco Ehlmann
Goode Graves House Howard
Jacob Johnson Kenney Kinder
Klarich Lybyer Mathewson Maxwell
McKenna Mueller Quick Rohrbach
Russell Schneider Scott Sims
Singleton Staples Westfall Wiggins
Yeckel--33
NAYS--Senators--None
Absent--Senator Flotron--1
Absent with leave--Senators--None

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 Speaker has appointed the following conferees to act with a like committee from the Senate on HCS for HB 1189, as amended: Representatives: Liese, Johnson, Stoll, Hartzler (123), Burton.

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 HS for HBs 1601, 1591, 1592, 1479 and 1615 and HCS for HBs 1094, 1213, 1311 and 1428, as amended: Representatives: Treadway, Barry, Foley, Nordwald and Hegeman.

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 HB 1301, as amended: Representatives: Campbell, Bray, VanZandt, Lograsso and Gaston.

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 HCS for SS for SB 910: Representatives: Dougherty, Campbell, Monaco, Ridgeway and Gibbons.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to recede from its position on HS for SS No. 2 for SCS for SB 632 as amended and grants the Senate a conference thereon and further the House conferees are allowed to exceed the differences.

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 SS No. 2 for SCS for SB 632, as amended: Representatives: Lakin, Hollingsworth, Gaw, Shields and Elliott.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House refuses to recede from its position on HS for HCS for SS for SCS for SB 781, as amended, and grants the Senate a conference thereon.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the Speaker has appointed the following conferees to act with a like committee from the Senate on HS for HCS for SS for SCS for SB 781, as amended: Representatives: Stoll, McLuckie, Troupe, Shields and Scott.

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 SS for SCS for SB 781, as amended: Senators House, Caskey, Clay, Ehlmann and Flotron.

Also,

President Pro Tem McKenna appointed the following conference committee, to act with a like committee from the House on HS for SS No. 2 for SCS for SB 632, as amended: Senators Quick, McKenna, Goode, Westfall and Rohrbach.

REPORTS OF STANDING COMMITTEES

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

Mr. President: Your Committee on State Budget Control, to which were referred HB 1229, with SCS; HS for HB 1694, with SCS; HS for HCS for HBs 1455 and 1463, with SCS; HCS for HS for HBs 1237, 1409, 1166, 1154 and 1491, with SCA 1, begs leave to report that it has considered the same and recommends that the bills do pass.

Senator Wiggins, Chairman of the Committee on Ways and Means, submitted the following report:

Mr. President: Your Committee on Ways and Means, to which was referred HB 1258, begs leave to report that it has considered the same and recommends that the bill do pass, with Senate Committee Amendment No. 1.

SENATE COMMITTEE AMENDMENT NO. 1

Amend House Bill No. 1258, Page 1, In the Title, Line 2, by striking all of said line and inserting in lieu thereof the following: "To repeal section 135.333, RSMo 1994, and sections 135.326 and 135.327, RSMo Supp. 1997, relating to certain child care tax benefits, and to enact in lieu thereof eight new sections relating to the same subject, with an effective date for certain sections."; and

Further amend said bill and page, section 1, line 1, by inserting immediately before said section the following:

"Section A. Section 135.333, RSMo 1994, and sections 135.326 and 135.327, RSMo Supp. 1997, are repealed and eight new sections enacted in lieu thereof, to be known as sections 135.326, 135.327, 135.333, 1, 2, 3, 4 and 5, to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Senator House, Chairman of the Committee on Education, submitted the following report:

Mr. President: Your Committee on Education, to which was referred HCS for HB 1265, begs leave to report that it has considered the same and recommends that the bill do pass.

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

Mr. President: Your Committee on Rules, Joint Rules and Resolutions, to which was referred HCR 26, begs leave to report that it has considered the same and recommends that the concurrent resolution do pass.

HOUSE BILLS ON THIRD READING

HS for HB 1694, with SCS, entitled:

An Act relating to the Advantage Missouri Program, with an effective date.

Was taken up by Senator Maxwell.

SCS for HS for HB 1694, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE BILL NO. 1694

An Act to amend chapter 166, RSMo, and chapter 173, RSMo, by adding thereto nineteen new sections relating to financial assistance for certain students, with an effective date for a certain section.

Was taken up.

Senator Maxwell moved that SCS for HS for HB 1694 be adopted.

Senator Maxwell offered SS for SCS for HS for HB 1694, entitled:

SENATE SUBSTITUTE FOR

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE BILL NO. 1694

An Act to amend chapter 166, RSMo, and chapter 173, RSMo, by adding thereto nineteen new sections relating to financial assistance for certain students, with an effective date for a certain section.

Senator Maxwell moved that SS for SCS for HS for HB 1694 be adopted.

Senator Maxwell offered SA 1:

SENATE AMENDMENT NO. 1

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Bill No. 1694, Page 1, Section 166.410, Line 11, by inserting the following:

"(4) "Financial institution", a bank, insurance company or registered investment company;"; and

Further amend said section by renumbering the remaining subsections accordingly; and

Further amend page 4, section 166.415, line 3, by inserting after the word "participants", the following: ", either directly or through a contractual arrangement with a financial institution for investment services,".

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

Senator Sims offered SA 2:

SENATE AMENDMENT NO. 2

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Bill No. 1694, Page 11, Section 166.455, Line 10, by inserting immediately after said line the following:

"173.241. 1. Any Missouri resident who is at least sixty-five years of age on or before August first of a school year and who possesses the qualifications set forth in this section shall be awarded a scholarship to a state educational institution, as the term is defined in section 176.010, RSMo, of the person's choice. Such scholarship shall consist of an exemption from tuition at the institution attended. Persons seeking a scholarship pursuant to this section shall provide documentation of age to the institution attended and shall satisfy all other necessary entrance requirements of the school of their choice in order to be eligible to receive a scholarship.

2. Certification and eligibility for the tuition benefits provided under this section, including satisfaction of applicable entrance requirements, shall be determined by the chosen educational institution.

3. Each state educational institution shall determine the number of students who may receive the tuition benefit based on available class space after tuition-paying students have enrolled. No institution shall be required to provide tuition benefits to any person if the institution is already providing tuition benefits to at least as many students as the number of students established pursuant to this subsection.

4. If a recipient of a scholarship pursuant to this section is found no longer eligible for tuition benefits under this section by the institution while enrolled in a course of study, the scholarship shall be terminated on the date the member is found no longer eligible for tuition benefits.

5. A person receiving a scholarship pursuant to this section shall take all tuition-free courses on a non-credit basis and shall satisfy all course prerequisites of the institution.

6. An institution may charge a registration fee, not to exceed twenty-five dollars per semester, from any person receiving a scholarship at that institution pursuant to this section."; and

Further amend the title and enacting clause accordingly.

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

Senator Jacob offered SA 3:

SENATE AMENDMENT NO. 3

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Bill No. 1694, Page 1, In the Title, Lines 2-5, by striking all of said lines and inserting in lieu thereof the following: "To repeal sections 174.620 and 175.021, RSMo 1994, and sections 172.035, 174.055 and 174.610, RSMo Supp. 1997, relating to higher education, and to enact in lieu thereof thirty new sections relating to the same subject, with an effective date for a certain section."; and

Further amend said bill and page, section A, lines 1 to 6, by striking all of said lines and inserting lieu thereof the following:

Section A. Sections 174.620 and 175.021, RSMo 1994, and sections 172.035, 174.055 and 174.610, RSMo Supp. 1997, are repealed and thirty new sections enacted in lieu thereof, to be known as sections 166.400, 166.410, 166.415, 166.420, 166.425, 166.430, 166.435, 166.440, 166.445, 166.450, 166.455 172.035, 172.036, 172.037, 173.775, 173.778, 173.781, 173.784, 173.787, 173.793, 173.796, 174.055, 174.056, 174.057, 174.610, 174.620, 174.622, 175.021, 175.022 and 175.023, to read as follows:"; and

Further amend said bill, page 11, section 166.455, line 10, by inserting after all of said line the following:

"172.035. 1. The governor shall, by and with the advice and consent of the senate, appoint a student representative to the board of curators of the University of Missouri, who shall attend all meetings and participate in all deliberations of the board[, except any meeting, record or vote closed under the provisions of section 610.025, RSMo]. Such student representative shall not have the right to vote on any matter before the board.

2. Such student representative shall be a full-time student at the university as defined by the board, selected from a panel of three names submitted to the governor by the student government presidents of the campuses of the university, a citizen of the United States, and a resident of the state of Missouri. No person may be appointed who is not actually enrolled during the term of [his] such person's appointment as a student at the University of Missouri.

3. The term of the student representative shall be two years, except that the person first appointed shall serve until January 1, 1986.

4. If a vacancy occurs for any reason in the position of student representative, the governor shall appoint a replacement who meets the qualifications set forth in subsection 2 of this section and who shall serve until [his] the student representative's successor is appointed and qualified.

5. If the student representative ceases to be a student at the University of Missouri, or a resident of the state of Missouri, or fails to follow the board's attendance policy, the student representative's position shall at once become vacant, unless [his] such absence is caused by sickness or some accident preventing [his] such representative's arrival at the time and place appointed for the meeting.

[6. The student representative while attending meetings of the board shall receive his actual expenses which shall be paid out of the ordinary revenues of the university.]

6. The student representative shall receive the same reimbursement for expenses as other members of the board of curators receive pursuant to section 172.040.

7. Appointments made under this section shall be made in rotation from each of the four campuses of the University of Missouri, beginning with a student from the Columbia campus, next from the Rolla campus, next from the Kansas City campus, and then from the St. Louis campus.

8. Unless alternative arrangements for payment have been made and agreed to by the student and the university, the student representative shall have paid all student and tuition fees due prior to such appointment and shall pay all future student and tuition fees during the term of office when such fees are due.

172.036. 1. The governor shall, by and with the advice and consent of the senate, appoint a faculty representative to the board of curators of the University of Missouri, who shall attend all meetings and participate in all deliberations of the board. Such faculty representative shall have the same powers as other members of the board of curators except that such faculty member representative shall not have the right to vote on any matter before the board.

2. Such faculty member representative shall be selected from a panel of three names submitted to the governor by the faculty government presidents of the campuses of the university, be a full-time faculty member at the university, be a citizen of the United States, and a resident of the state of Missouri.

3. The term of the faculty member representative shall be two years.

4. If a vacancy occurs for any reason in the position of faculty member representative, the governor shall appoint a replacement who meets the qualifications set forth in subsection 2 of this section and who shall serve until such faculty member representative's successor is appointed and qualified.

5. If the faculty member representative ceases to be a full-time faculty member at such member's campus of the University of Missouri, or a resident of the state of Missouri, such position shall at once become vacant.

6. The faculty member representative shall receive the same reimbursement for expenses as other members of the board of curators receive pursuant to section 172.040.

7. Appointments made pursuant to this section shall be made in rotation from each of the four campuses of the University of Missouri, beginning with a faculty member from the Columbia campus, next from the Kansas City campus, next from the Rolla campus, and then from the St. Louis campus.

172.037. 1. For the purposes of this chapter, confidentiality, as determined by the board and as provided by law, shall apply to all members and representatives on the board.

2. Any member or representative on the board may recuse himself or herself from any deliberation or proceeding of the board.

3. Upon a unanimous affirmative vote of the members of the board who are present and who are not a student or faculty representative, a given meeting closed pursuant to sections 610.021 and 610.022, RSMo, shall be closed to the student representative, the faculty representative or both."; and

Further amend said bill, page 18, section 173.796, line 2, by inserting after all of said line the following:

"174.055. 1. The governor shall, by and with the advice and consent of the senate, appoint a student representative to the board of regents or governors of each educational institution referred to in section 174.020 who shall attend all meetings and participate in all deliberations of the board[, except any meeting, record or vote closed under the provisions of section 610.025, RSMo]. Such student representative shall not have the right to vote on any matter before the board.

2. Such student representative shall be a full-time student at the institution as defined by the board, selected from a panel of three names submitted to the governor by the student government president, a citizen of the United States, and a resident of the state of Missouri. No person may be appointed who is not actually enrolled during the term of [his] such person's appointment as a student at the institution.

3. The term of the student representative shall be two years, except that the person first appointed shall serve until January 1, 1986.

4. If a vacancy occurs for any reason in the position of student representative, the governor shall appoint a replacement who meets the qualifications set forth in subsection 2 of this section and who shall serve until [his] such representative's successor is appointed and qualified.

5. If the student representative ceases to be a student at the institution, or a resident of the state of Missouri, or fails to follow the board's attendance policy, the student representative's position shall at once become vacant, unless the student representative's absence is caused by sickness or some accident preventing the student representative's arrival at the time and place appointed for the meeting.

[6. The student representative shall receive no compensation or reimbursement for expenses.]

6. The student representative shall receive the same reimbursement for expenses as other members of the board of regents receive pursuant to section 174.100.

7. Unless alternative arrangements for payment have been made and agreed to by the student and the educational institution, the student representative shall have paid all student and tuition fees due prior to such appointment and shall pay all future student and tuition fees during the term of office when such fees are due.

174.056. 1. There shall be a faculty representative to the board of regents or governors of each educational institution referred to in section 174.020, appointed by the governor with the advice and consent of the senate, who shall attend all meetings and participate in all deliberations of the board. Such faculty member representative shall have the same powers as the other members of the board, except that such faculty member representative shall not have the right to vote on any matter before the board.

2. Such faculty member representative shall be selected from a panel of three names submitted to the governor by the president of each institution's faculty government association, be a full-time faculty member at the institution, a citizen of the United States, and a resident of the state of Missouri.

3. The term of the faculty member representative shall be two years.

4. If a vacancy occurs for any reason in the position of faculty member representative, the governor shall appoint a replacement who meets the qualifications set forth in subsection 2 of this section and who shall serve until such faculty member representative's successor is appointed and qualified.

5. If the faculty member representative ceases to be a full-time faculty member at the institution, or a resident of the state of Missouri, such position shall at once become vacant.

6. The faculty member representative shall receive the same reimbursement for expenses as other members of the board of regents receive pursuant to section 174.100.

174.057. 1. For the purposes of this chapter, confidentiality, as determined by the board and as provided by law, shall apply to all members and representatives on the board.

2. Any member or representative on the board may recuse himself or herself from any deliberation or proceeding of the board.

3. Upon a unanimous affirmative vote of the members of the board who are present and who are not a student or faculty representative, a given meeting closed pursuant to sections 610.021 and 610.022, RSMo, shall be closed to the student representative, the faculty representative or both.

174.610. [1.] The governing board of the Truman State University shall be a board of governors consisting of [ten] eleven members, composed of seven voting members and [three] four nonvoting members as provided in section 174.620, who shall be appointed by the governor of Missouri, by and with the advice and consent of the senate. No person shall be appointed a voting governor who is not a citizen of the United States and who has not been a resident of the state of Missouri for at least two years [next] immediately prior to [his] such person's appointment. Not more than four voting governors shall belong to any one political party. The appointed members of the board of regents serving on January 1, 1986, shall become members of the board of governors on January 1, 1986, and serve until the expiration of the terms for which they were appointed.

[2. The board of regents of the Truman State University is abolished.]

174.620. 1. The board of governors shall be appointed as follows:

(1) Four voting members [shall be selected] from the counties of Adair, Audrain, Boone, Callaway, Chariton, Clark, Howard, Knox, Lewis, Lincoln, Linn, Marion, Macon, Monroe, Montgomery, Pike, Putnam, Ralls, Randolph, St. Charles, Schuyler, Scotland, Shelby, Sullivan, and Warren, provided that not more than one member shall be appointed from the same county [of these aforementioned counties];

(2) Three voting members [shall be selected] from any of the seven college districts as contained in section 174.010, provided that no more than one member shall be appointed from the same congressional district;

(3) Two nonvoting members whose residence is other than the state of Missouri and who are knowledgeable of the educational mission of liberal arts institutions [shall be selected]; [and]

(4) One nonvoting member who is a student [shall be selected as provided in section 174.055]. Such student representative shall attend all meetings and participate in all deliberations of the board. Such student representative shall not have the right to vote on any matter before the board, but shall have all other powers and duties of section 174.055, and shall also meet the qualifications of section 174.055;

(5) One nonvoting member who is a full-time faculty member shall be selected as provided in section 174.622.

2. The term of service of the governors shall be as follows:

(1) The voting members shall be appointed for terms of six years; except, that of the voting members first appointed, two shall serve for terms of two years, two for terms of four years, and three for terms of six years;

(2) The nonvoting members who are not students or faculty members shall be appointed for terms of six years; except, that of the nonvoting members first appointed, one shall serve for a term of three years, and one shall serve a term of six years; and

(3) The nonvoting student member shall serve a two-year term as provided in section 174.055, and the nonvoting faculty member shall serve a two-year term as provided in section 174.622.

3. The governors, both nonvoting and voting, while attending the meetings of the board shall receive their actual and necessary expenses, which shall be paid out of the ordinary revenues of the university. Vacancies in terms of office caused by death, resignation or removal shall be filled in the manner provided by law for such vacancies on the board of curators of the [State] University of Missouri.

174.622. 1. The governor shall with the advice and consent of the senate appoint a faculty member representative to the board of governors of Truman State University, who shall attend all meetings and participate in all deliberations of the board. Such faculty member representative shall have the same powers and duties as the other members of the board of governors, except that such faculty member representative shall not have the right to vote on any matter before the board.

2. Such faculty member representative shall be selected from a panel of three names submitted to the governor by the president of the university's faculty senate, be a full-time faculty member at the university, a citizen of the United States, and a resident of the state of Missouri.

3. The term of the faculty member representative shall be two years.

4. If a vacancy occurs for any reason in the position of faculty member representative, the governor shall appoint a replacement who meets the qualifications set forth in subsection 2 of this section and who shall serve until such faculty member representative's successor is appointed and qualified.

5. If the faculty member representative ceases to be a full-time faculty member at the university, or a resident of the state of Missouri, such position shall at once became vacant.

175.021. 1. The governor shall, by and with the advice and consent of the senate, appoint a student representative to the board of curators of Lincoln University, who shall attend all meetings and participate in all deliberations of the board[, except any meeting, record or vote closed under the provisions of section 610.025, RSMo]. Such student representative shall not have the right to vote on any matter before the board.

2. Such student representative shall be a full-time student at the university as defined by the board, selected from a panel of three names submitted to the governor by the student government association of the university, a citizen of the United States, and a resident of the state of Missouri. No person may be appointed who is not actually enrolled during the term of [his] such person's appointment as a student at the university.

3. The term of the student representative shall be two years, except that the person first appointed shall serve until January 1, 1989.

4. If a vacancy occurs for any reason in the position of student representative, the governor shall appoint a replacement who meets the qualifications set forth in subsection 2 of this section and who shall serve until [his] such student representative's successor is appointed and qualified.

5. If the student representative ceases to be a student at the university, or a resident of the state of Missouri, or fails to attend any regularly called meeting of the board of which [he] such representative has due notice, [his] the position shall at once become vacant, unless [his] such student representative's absence is caused by sickness or some accident preventing [his] such representative's arrival at the time and place appointed for the meeting.

[6. The student representative shall receive no compensation or reimbursement for expenses.]

6. The student representative shall receive the same reimbursement for expenses as other members of the board of curators receive pursuant to section 175.030.

7. Unless alternative arrangements for payment have been made and agreed to by the student and the university, the student [representatives of all public colleges and universities] representative shall have paid all student and tuition fees due prior to [said appointments] such appointment and shall pay all future student and tuition fees during the term of office when [said] such fees are due.

175.022. 1. The governor shall with the advice and consent of the senate appoint a faculty member representative to the board of curators of Lincoln University, who shall attend all meetings and participate in all deliberations of the board. Such faculty member representative shall have the same powers as the other members of the board of curators, except that such faculty member representative shall not have the right to vote on any matter before the board.

2. Such faculty member representative shall be selected from a panel of three names submitted to the governor by the chair of the university faculty senate, be a full-time faculty member at the university, a citizen of the United States, and a resident of the state of Missouri.

3. The term of the faculty member representative shall be two years.

4. If a vacancy occurs for any reason in the position of faculty member representative, the governor shall appoint a replacement who meets the qualifications set forth in subsection 2 of this section and who shall serve until such faculty member representative's successor is appointed and qualified.

5. If the faculty member representative ceases to be a full-time faculty member at the university, or a resident of the state of Missouri, such position shall at once become vacant.

6. The faculty member representative shall receive the same reimbursement for expenses as other members of the board of curators receive pursuant to section 175.030.

175.023. 1. For the purposes of this chapter, confidentiality, as determined by the board and as provided by law, shall apply to all members and representatives on the board.

2. Any member or representative on the board may recuse himself or herself from any deliberation or proceeding of the board.

3. Upon a unanimous affirmative vote of the members of the board who are present and who are not a student or faculty representative, a given meeting closed pursuant to sections 610.021 and 610.022, RSMo, shall be closed to the student representative, the faculty representative or both.".

Senator Jacob moved that the above amendment be adopted.

Senator Mathewson assumed the Chair.

Senator Flotron raised the point of order that SA 3 is out of order in that the amendment goes beyond the intent of the subject matter of the bill.

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

Senator House offered SA 4:

SENATE AMENDMENT NO. 4

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Bill No. 1694, Page 11, Section 166.455, Line 10, by inserting after all of said line the following:

"173.260. 1. As used in this section, unless the context clearly requires otherwise, the following terms mean:

(1) "Board", the coordinating board for higher education;

(2) "Eligible child", the natural, adopted or stepchild of a public safety officer or employee, as defined in this section, who is less than twenty-four years of age and who is a dependent of a public safety officer or employee or was a dependent at the time of death or permanent and total disability of a public safety officer or employee;

(3) "Employee", any full-time employee of the department of highways and transportation engaged in the construction or maintenance of the state's highways, roads and bridges;

(4) "Grant", the public safety officer or employee survivor grant as established by this section;

(5) "Institution of postsecondary education", any approved public or private institution as defined in section 173.205;

(6) "Line of duty", any action of a public safety officer, whose primary function is crime control or reduction, enforcement of the criminal law, or suppression of fires, is authorized or obligated by law, rule, regulation or condition of employment or service to perform;

[(6)] (7) "Public safety officer", any firefighter, police officer, capitol police officer, parole officer, probation officer, state correctional employee, water safety officer, park ranger, conservation officer or highway patrolman employed by the state of Missouri or a political subdivision thereof who is killed or permanently and totally disabled in the line of duty;

(8) "Permanent and total disability", a disability which renders a person unable to engage in any gainful work;

(9) "Spouse", the husband, wife, widow or widower of a public safety officer or employee at the time of death or permanent and total disability of such public safety officer;

[(7)] (10) "Tuition", any tuition or incidental fee or both charged by an institution of postsecondary education, as defined in this section, for attendance at that institution by a student as a resident of this state.

2. Within the limits of the amounts appropriated therefor, the coordinating board for higher education shall provide, as defined in this section, a grant for either of the following to attend an institution of postsecondary education:

(1) An eligible child of a public safety officer or employee killed or permanently and totally disabled in the line of duty [to attend an institution of postsecondary education.]; or

(2) A spouse of a public safety officer killed or permanently and totally disabled in the line of duty.

3. An eligible child or spouse may receive a grant under this section only so long as the child or spouse is enrolled in a program leading to a certificate, or an associate or baccalaureate degree. In no event shall a child or spouse receive a grant beyond the completion of the first baccalaureate degree or, in the case of a child, age twenty-four years, except that the child may receive a grant through the completion of the semester or similar grading period in which the child reaches his twenty-fourth year. No child or spouse shall receive more than one hundred percent of tuition when combined with similar funds made available to such child or spouse.

4. The coordinating board for higher education shall:

(1) Promulgate all necessary rules and regulations for the implementation of this section;

(2) Determine minimum standards of performance in order for a child or spouse to remain eligible to receive a grant under this program;

(3) Make available on behalf of an eligible child or spouse an amount toward the child's or spouse's tuition which is equal to the grant to which the child or spouse is entitled under the provisions of this section;

(4) Provide the forms and determine the procedures necessary for an eligible child or spouse to apply for and receive a grant under this program.

5. An eligible child or spouse who is enrolled or has been accepted for enrollment as an undergraduate postsecondary student at an approved institution of postsecondary education shall receive a grant in an amount not to exceed the least of the following:

(1) The actual tuition, as defined in this section, charged at an approved institution where the child or spouse is enrolled or accepted for enrollment; or

(2) The amount of tuition charged a Missouri resident at the University of Missouri for attendance as a full-time student, as defined in section 173.205.

6. An eligible child or spouse who is a recipient of a grant may transfer from one approved public or private institution of postsecondary education to another without losing his entitlement under this section. The board shall make necessary adjustments in the amount of the grant. If a grant recipient at any time withdraws from the institution of postsecondary education so that under the rules and regulations of that institution he is entitled to a refund of any tuition, fees, or other charges, the institution shall pay the portion of the refund to which he is entitled attributable to the grant for that semester or similar grading period to the board.

7. If an eligible child or spouse is granted financial assistance under any other student aid program, public or private, the full amount of such aid shall be reported to the board by the institution and the eligible child or spouse.

8. Nothing in this section shall be construed as a promise or guarantee that a person will be admitted to an institution of postsecondary education or to a particular institution of postsecondary education, will be allowed to continue to attend an institution of postsecondary education after having been admitted, or will be graduated from an institution of postsecondary education.

9. A public safety officer who is permanently and totally disabled shall be eligible for a grant pursuant to the provisions of this section.

10. An eligible child of a public safety officer or employee, spouse of a public safety officer or public safety officer shall cease to be eligible for a grant pursuant to this section when such public safety officer or employee is no longer permanently and totally disabled."; and

Further amend the title and enacting clause accordingly.

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

Senator House offered SA 5:

SENATE AMENDMENT NO. 5

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Bill No. 1694, Page 1, In the Title, Line 4, by striking the words "financial assistance for certain students" and inserting in lieu thereof the words "higher education"; and

Further amend said bill, Page 11, Section 166.455, Line 10, by inserting after all of said line the following:

"173.005. 1. There is hereby created a "Department of Higher Education", and the division of higher education of the department of education is abolished and all its powers, duties, functions, personnel and property are transferred as provided by this act.

2. The commission on higher education is abolished and all its powers, duties, personnel and property are transferred by type I transfer to the "Coordinating Board for Higher Education", which is hereby created, and the coordinating board shall be the head of the department. The coordinating board shall consist of nine members appointed by the governor with the advice and consent of the senate, and not more than five of its members shall be of the same political party. None of the members shall be engaged professionally as an educator or educational administrator at the time appointed or during his term. The other qualifications, terms and compensation of the coordinating board shall be the same as provided by law for the curators of the University of Missouri. The coordinating board may, in order to carry out the duties prescribed for it in subsections 1, 2, 3, 7, and 8 of this section, employ such professional, clerical and research personnel as may be necessary to assist it in performing those duties, but this staff shall not, in any fiscal year, exceed twenty-five full-time equivalent employees regardless of the source of funding. In addition to all other powers, duties and functions transferred to it, the coordinating board for higher education shall have the following duties and responsibilities:

(1) The coordinating board for higher education shall have approval of proposed new degree programs to be offered by the state institutions of higher education;

(2) In consultation with the heads of the institutions of higher education affected and against a background of carefully collected data on enrollment, physical facilities, manpower needs, institutional missions, the coordinating board for higher education shall establish guidelines for appropriation requests by those institutions of higher education; however, other provisions of this act notwithstanding, all funds shall be appropriated by the general assembly to the governing board of each public four-year institution of higher education which shall prepare expenditure budgets for the institution;

(3) No new state supported senior colleges or residence centers shall be established except as provided by law and with approval of the coordinating board for higher education;

(4) The coordinating board for higher education shall establish admission guidelines consistent with institutional missions;

(5) The coordinating board shall establish policies and procedures for institutional decisions relating to the residence status of students;

(6) The coordinating board shall establish guidelines to promote and facilitate the transfer of students between institutions of higher education within the state;

(7) The coordinating board shall collect the necessary information and develop comparable data for all institutions of higher education in the state. The coordinating board shall use this information to delineate the areas of competence of each of these institutions and for any other purposes deemed appropriate by the coordinating board;

(8) Compliance with requests from the coordinating board for institutional information and the other powers, duties and responsibilities, herein assigned to the coordinating board, shall be a prerequisite to the receipt of any funds for which the coordinating board is responsible for administering; [and]

(9) If any institution of higher education in this state, public or private, willfully fails or refuses to follow any lawful guideline, policy or procedure established or prescribed by the coordinating board, or knowingly deviates from any such guideline, or knowingly acts without coordinating board approval where such approval is required, or willfully fails to comply with any other lawful order of the coordinating board, the coordinating board may, after a public hearing, withhold or direct to be withheld from that institution any funds the disbursement of which is subject to the control of the coordinating board, or may remove the approval of the institution as an "approved institution" within the meaning of section 173.205, but nothing in this section shall prevent any institution of higher education in this state from presenting additional budget requests or from explaining or further clarifying its budget requests to the governor or the general assembly[.]; and

(10) The coordinating board shall not restrict any approved private institution of higher education, as defined in section 173.205, from creating or modifying a course or program of study or adding a new location.

3. The coordinating board shall meet at least four times annually with an advisory committee who shall be notified in advance of such meetings. The coordinating board shall have exclusive voting privileges. The advisory committee shall consist of twenty-two members, who shall be the president or other chief administrative officer of the University of Missouri; the chancellor of each campus of the University of Missouri; the president of each state supported four-year college or university, including Harris-Stowe State College, Missouri Southern State College, Missouri Western State College, and Lincoln University; three representative public junior college presidents, selected by the public junior college presidents each biennium and representatives of each of five accredited private institutions selected biennially, under the supervision of the coordinating board, by the presidents of all of the state's privately supported institutions; but always to include at least one representative from one privately supported junior college, one privately supported four-year college, and one privately supported university. The conferences shall enable the committee to advise the coordinating board of the views of the institutions on matters within the purview of the coordinating board.

4. The University of Missouri, Lincoln University, and all other state governed colleges and universities, chapters 172, 174 and 175, RSMo, and others, are transferred by type III transfers to the department of higher education subject to the provisions of subsection 2 of this section.

5. The state historical society, chapter 183, RSMo, is transferred by type III transfer to the University of Missouri.

6. The state anatomical board, chapter 194, RSMo, is transferred by type II transfer to the department of higher education.

7. All the powers, duties and functions vested in the division of public schools and state board of education relating to junior college state aid and the supervision, formation of districts and all matters otherwise related to the state's relations with junior college districts and matters pertaining to junior colleges in public school districts, chapters 163 and 178, RSMo, and others, are transferred to the coordinating board for higher education by type I transfer. Provided, however, that all responsibility for administering the federal-state programs of vocational-technical education, except for the 1202a post-secondary educational amendments of 1972 program, shall remain with the department of elementary and secondary education. The department of elementary and secondary education and the coordinating board for higher education shall cooperate in developing the various plans for vocational-technical education; however, the ultimate responsibility will remain with the state board of education.

8. The administration of sections 163.171 and 163.181, RSMo, relating to teacher-training schools in cities, is transferred by type I transfer to the coordinating board for higher education.

9. All the powers, duties, functions, personnel and property of the state library and state library commission, chapter 181, RSMo, and others, are transferred by type I transfer to the coordinating board for higher education, and the state library commission is abolished. The coordinating board shall appoint a state librarian who shall administer the affairs of the state library under the supervision of the board.

10. All the powers, duties, functions, and properties of the state poultry experiment station, chapter 262, RSMo, are transferred by type I transfer to the University of Missouri, and the state poultry association and state poultry board are abolished. In the event the University of Missouri shall cease to use the real estate of the poultry experiment station for the purposes of research or shall declare the same surplus, all real estate shall revert to the governor of the state of Missouri and shall not be disposed of without legislative approval.

173.006. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is promulgated under the authority of this chapter, shall become effective only if the agency has fully complied with all of the requirements of 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 as of the effective date of this act, however nothing in this act shall be interpreted to repeal or affect the validity of any rule adopted and promulgated prior to the effective date of this act. If the provisions of section 536.028, RSMo, apply, the provisions of this section are nonseverable and if any of the powers vested with the general assembly pursuant to section 536.028, RSMo, 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, except that nothing in this act shall affect the validity of any rule adopted and promulgated prior to the effective date of this act."; and

Further amend the title and enacting clause accordingly.

Senator House moved that the above amendment be adopted.

Senator Caskey 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 well taken.

Senator Ehlmann offered SA 6:

SENATE AMENDMENT NO. 6

Amend Senate Substitute for Senate Committee Substitute for House Substitute for House Bill No. 1694, Page 18, Section 173.796, Line 2, by inserting after said line the following:

"Section 1. 1. The coordinating board for higher education shall establish, by rule, a tuition prepayment program which shall allow a parent, guardian or other responsible person to contribute, on behalf of a child, a fixed annual amount beginning when the child is three years of age for a period of fifteen years. Upon payment of the final annual installment, the child shall, if otherwise qualified to attend such school, be entitled to attend any campus of the state university for up to four years of full-time attendance or an equivalent amount of attendance with a complete exemption from all tuition and other related fees. If a payment is not made for a year for which a payment is otherwise required pursuant to this section, the payee may opt to make a double payment the following year and maintain eligibility for full tuition benefits or to agree, in writing, to continue to make the regular annual payments in all required succeeding years, including such following year, in exchange for a prorated tuition exemption according to a schedule established by the coordinating board.

2. The board shall establish the amount of contributions required, the terms and conditions for such contributions and any applicable penalties for withdrawal. Penalties for early withdrawal may include part or all of any interest accrued, but the principal paid shall be refunded in its entirety upon any such withdrawal. The board shall have all powers necessary to administer the program established pursuant to this section.

3. The assets of the program shall be preserved, invested and expended only for the purposes of this section and according to approved agreements, and no property rights therein shall exist in favor of the state.

4. The assets of the program and the assets of any similar plan qualified pursuant to Section 529 of the Internal Revenue Code and any income therefrom shall be exempt from all taxation by the state or any of its political subdivisions. Income earned or received from the program and any benefits received by any participant or beneficiary shall not be subject to state income tax and shall be eligible for any benefits provided in accordance with the savings plan provisions of the Internal Revenue Code. The exemption from taxation pursuant to this section shall apply only to assets and income maintained, accrued, or expended pursuant to the requirements of the program established pursuant to this section and benefits received pursuant to the provisions of this section and the applicable provisions of the Internal Revenue Code, and no exemption shall apply to assets and income expended for any other purposes or to funds withdrawn from the program. Contributions made to the program shall not be counted towards the calculation of gross income for state income tax purposes.

5. The provisions of this section shall apply to tax years beginning on or after January 1, 1999.

6. Any rule or portion of a rule promulgated pursuant to this section shall become effective only if it has been promulgated pursuant to chapter 536, RSMo."; and

Further amend the title and enacting clause accordingly.

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

Senator Maxwell moved that SS for SCS for HS for HB 1694, as amended, be adopted, which motion prevailed.

On motion of Senator Maxwell, SS for SCS for HS for HB 1694, as amended, was read the 3rd time and passed by the following vote:

YEAS--Senators
Bentley Caskey Childers Clay
DePasco Flotron Goode Graves
House Howard Jacob Johnson
Kenney Kinder Klarich Lybyer
Mathewson Maxwell McKenna Mueller
Quick Russell Schneider Scott
Sims Staples Westfall Wiggins--28
NAYS--Senators
Rohrbach Singleton Yeckel--3
Absent--Senators
Banks Curls Ehlmann--3
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 Staples moved that motion lay on the table, which motion prevailed.

HB 1229, with SCS, introduced by Representatives Copeland and Leake, entitled:

An Act to repeal section 105.927, RSMo 1994, relating to the state deferred compensation program, and to enact in lieu thereof one new section relating to the same subject, with an emergency clause.

Was taken up by Senator Clay.

SCS for HB 1229, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1229

An Act to repeal section 105.927, RSMo 1994, relating to the state deferred compensation program, and to enact in lieu thereof one new section relating to the same subject.

Was taken up.

Senator Johnson assumed the Chair.

Senator Clay moved that SCS for HB 1229 be adopted, which motion prevailed.

On motion of Senator Clay, SCS for HB 1229 was read the 3rd time and passed by the following vote:

YEAS--Senators
Banks Bentley Caskey Childers
Clay DePasco Ehlmann Flotron
Goode Graves House Howard
Jacob Johnson Kenney Kinder
Klarich Lybyer Mathewson Maxwell
McKenna Rohrbach Russell Schneider
Scott Sims Singleton Staples
Westfall Wiggins Yeckel--31
NAYS--Senator Mueller--1
Absent--Senators
Curls Quick--2
Absent with leave--Senators--None

The President declared the bill passed.

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

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

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

HS for HCS for HBs 1237, 1409, 1166, 1154 and 1491, with SCA 1, entitled:

An Act to repeal sections 287.030, 287.035, 287.061, 287.090, 287.128, 287.140, 287.160, 287.170, 287.190, 287.197, 287.210, 287.220, 287.250, 287.270, 287.337, 287.380, 287.430, 287.460, 287.480, 287.495, 287.530, 287.610, 287.615 and 287.640, RSMo 1994, and sections 287.280 and 287.650, RSMo Supp. 1997, relating to workers' compensation, and to enact in lieu thereof twenty-eight new sections relating to the same subject, with penalty provisions.

Was taken up by Senator Flotron.

SCA 1 was taken up.

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

Senator Flotron offered SS for HS for HCS for HBs 1237, 1409, 1166, 1154 and 1491, entitled:

SENATE SUBSTITUTE FOR

HOUSE SUBSTITUTE FOR

HOUSE COMMITTEE SUBSTITUTE FOR

HOUSE BILLS NOS. 1237, 1409, 1166, 1154 and 1491

An Act to repeal sections 287.030, 287.035, 287.061, 287.090, 287.123, 287.128, 287.140, 287.160, 287.170, 287.190, 287.197, 287.210, 287.220, 287.250, 287.270, 287.337, 287.380, 287.430, 287.460, 287.480, 287.495, 287.530, 287.610, 287.615 and 287.640, RSMo 1994, and sections 287.280 and 287.650, RSMo Supp. 1997, relating to workers' compensation, and to enact in lieu thereof twenty-nine new sections relating to the same subject, with penalty provisions.

Senator Flotron moved that SS for HS for HCS for HBs 1237, 1409, 1166, 1154 and 1491 be adopted.

Senator Schneider offered SA 1:

SENATE AMENDMENT NO. 1

Amend Senate Substitute for House Substitute for House Committee Substitute for House Bills Nos. 1237, 1409, 1166, 1154 and 1491, Page 42, Section 287.210, Line 13 of said page, by inserting after "insurer," the following: "the state through the central accident reporting office or the second injury fund or its legal counsel,"; and

Further amend said bill and section, page 47, line 10 of said page, by inserting an opening bracket "[" before the word "The"; and

Further amend said bill and section, page 47, line 11 of said page, by inserting a closing bracket "]" after the word "fund.".

Senator Schneider moved that the above amendment be adopted.

Senator Wiggins assumed the Chair.

Senator House requested a roll call vote be taken on the adoption of SA 1 and was joined in his request by Senators Childers, Howard, Schneider and Russell.

SA 1 failed of adoption by the following vote:

YEAS--Senators
Ehlmann Goode Howard Jacob
Kinder Quick Russell Schneider
Scott--9
NAYS--Senators
Banks Bentley Caskey Childers
Clay DePasco Flotron Graves
House Johnson Kenney Klarich
Lybyer Mathewson Maxwell McKenna
Mueller Rohrbach Sims Singleton
Staples Westfall Wiggins Yeckel--24
Absent--Senator Curls--1
Absent with leave--Senators--None

Senator Flotron moved that SS for HS for HCS for HBs 1237, 1409, 1166, 1154 and 1491 be adopted, which motion prevailed.

On motion of Senator Flotron, SS for HS for HCS for HBs 1237, 1409, 1166, 1154 and 1491 was read the 3rd time and passed by the following vote:

YEAS--Senators
Banks Bentley Caskey Childers
Curls DePasco Ehlmann Flotron
Goode Graves House Howard
Jacob Johnson Kenney Kinder
Klarich Lybyer Mathewson Maxwell
McKenna Mueller Quick Rohrbach
Russell Schneider Scott Sims
Singleton Staples Westfall Wiggins
Yeckel--33
NAYS--Senators--None
Absent--Senator Clay--1
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 Schneider moved that SCS for HB 1880 be called from the Consent Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

Senator Mathewson assumed the Chair.

Senator Maxwell assumed the Chair.

Senator Schneider moved that SCS for HB 1880 be read the 3rd time and finally passed, which motion failed to receive a constitutional majority by the following vote:

YEAS--Senators
Clay DePasco Ehlmann Flotron
Goode House Jacob Johnson
Mathewson Maxwell McKenna Schneider
Scott Wiggins--14
NAYS--Senators
Bentley Caskey Childers Curls
Graves Howard Kenney Kinder
Lybyer Mueller Rohrbach Russell
Sims Singleton Staples Westfall
Yeckel--17
Absent--Senators
Banks Klarich Quick--3
Absent with leave--Senators--None

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 HS for HCS for SB 827, entitled:

An Act to repeal section 32.110, RSMo 1994, sections 32.115, 135.110, 447.700, 447.702, 447.704, 447.706 and 447.708, RSMo Supp. 1997, and sections 135.208 and 620.1039 as enacted by senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly and approved by the governor, relating to tax credits administered by and relating to the department of economic development, and to enact in lieu thereof thirteen new sections relating to the same subject.

With House Substitute Amendment No. 1 for House Amendment No. 1, House Amendments Nos. 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, House Substitute Amendment No. 1 for House Amendment No. 14, House Amendments Nos. 15 and 16.

HOUSE SUBSTITUTE AMENDMENT NO. 1

FOR HOUSE AMENDMENT NO. 1

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 1, In the Title, Line 3, by inserting after the number "135.110," the following: "209.251, 209.253, 209.255, 209.257, 209.258, 209.259,"; and

Further amend said bill, Page 1, In the Title, Line 5, by inserting after the word "sections" the number "135.100,"; and

Further amend said bill, Page 1, In the title, Line 11, by deleting the word "thirteen" and inserting in lieu thereof the word "twenty"; and

Further amend said bill, Page 1, Section A, Line 16, by inserting after the number "135.110," the following: "209.251, 209.253, 209.255, 209.257, 209.258, 209.259,"; and

Further amend said bill, Page 1, Section A, Line 17, by inserting after the word "sections" the number "135.100,"; and

Further amend said bill, Page 1, Section A, Line 20, by deleting the word "thirteen" and inserting in lieu thereof the word "twenty"; and

Further amend said bill, Page 1, Section A, Line 21, by inserting after the number "32.115," the number "135.100,"; and

Further amend said bill, Page 1, Section A, Line 21, by inserting after the number "135.208," the following: "209.251, 209.253, 209.255, 209.257, 209.258, 209.259,"; and

Further amend said bill, Page 11, Section 32.115, Line 11, by inserting after all of said line the following:

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

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

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

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

(4) "New business facility", a facility which satisfies the following requirements:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(9) "Related taxpayer" shall mean:

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

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

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

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

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

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

(11) "Revenue producing enterprise" means:

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

(b) Agricultural activities classified as SIC 025;

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

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

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

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

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

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

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

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

(k) Interexchange telecommunications services as defined in subdivision [(20)] (24) or local exchange telecommunications services as defined in subdivision (31) of section 386.020, RSMo, or training activities conducted by an interexchange telecommunications company or by a local exchange telecommunications company as defined in [subdivision (19)] subdivisions (23) and (30) of section 386.020, RSMo;

(l) Recycling activities classified as SIC 5093;

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

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

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

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

(q) Any combination of any of the foregoing activities;

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

(13) "SIC", the primary standard industrial classification as such classifications are defined in the 1987 edition of the Standard Industrial Classification Manual as prepared by the Executive Office of the President, Office of Management and Budget. For the purpose of this subdivision, "primary" means at least fifty percent of the activities so classified are performed at the new business facility during the taxpayer's tax period in which such tax credits are being claimed;

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

Further amend said bill, Page 21, Section 135.110, Line 7, by inserting after the word "company" the following: "or local exchange telecommunications company"; and

Further amend said bill, Page 29, Section 135.208, Line 8, by inserting after all of said line the following:

"209.251. As used in sections 209.251 to 209.259, the following terms mean:

(1) "Adaptive telephone equipment", equipment that modifies or replaces the functions of a telephone used to place and receive voice calls, including but not limited to the functions of hearing, speaking, dialing and manipulating the handset. Adaptive telephone equipment does not include equipment needed for personal communication or mobility, such as hearing aids, eyeglasses, wheelchairs, prosthetics and orthotics;

(2) "Basic telephone access line", a telephone line which provides service from the telephone company central office to the customer's premises which enables the customer to originate and terminate long distance and local calling;

[(2)] (3) "Commission", the public service commission;

[(3)] (4) "Eligible subscriber", any individual who has been certified as deaf, hearing-impaired, speech-impaired or as having another disability that causes the inability to use traditional telephone equipment and services by a licensed physician, audiologist, speech pathologist or [a qualified state] an approved agency;

[(4)] (5) "Missouri assistive technology advisory council", the entity established pursuant to section 191.853, RSMo;

(6) "Surcharge", an additional charge which is to be paid by local exchange telephone company subscribers pursuant to the rate recovery mechanism established pursuant to sections 209.255, 209.257 and 209.259 in order to implement the [program] programs described in sections 209.251 to 209.259;

[(5)] (7) "Telecommunications device for the deaf" or "TDD", a telecommunications device capable of allowing deaf, hearing-impaired or speech-impaired individuals to transmit messages over basic telephone access lines by sending and receiving typed messages.

209.253. 1. The commission shall initiate an investigation to determine the most beneficial and cost-effective method to implement the provision of a statewide dual-party system, using third-party intervention to connect deaf, hearing-impaired and speech-impaired persons and offices of organizations representing the deaf, hearing-impaired and speech-impaired with telecommunication devices for the deaf (TDDs) and the telephone system, making available reasonable access to telephone service to eligible subscribers. In conducting this investigation the commission shall solicit the advice, counsel, and assistance of statewide nonprofit organizations of the deaf, the office of the public counsel and representatives of telecommunications companies. The commission shall complete this investigation within six months of July 10, 1990.

2. The commission shall initiate an investigation to determine the most beneficial and cost-effective method to implement the provision of a statewide telecommunications equipment distribution program making available reasonable access to telephone service for eligible subscribers who are unable to use traditional telephone equipment due to disability. In conducting this investigation the commission shall solicit the advice, counsel and assistance of statewide nonprofit organizations for individuals with disabilities, the office of the public counsel and representatives of telecommunications companies. The commission shall complete such investigation within six months of August 28, 1996.

3. Within sixty days of the completion of the investigations provided in subsections 1 and 2 of this section, the division of purchasing, on behalf of the commission, shall issue a request for competitive bids to provide a statewide dual-party relay service and equipment distribution program which meets the specifications and criteria determined by such investigations. The request for competitive bids shall contain the date, as determined by the division of purchasing, by which all bids shall be submitted and the division of purchasing shall not accept or consider any bids received after that date.

4. Within sixty days of the date provided in subsection 3 of this section requiring bids to be submitted, the division of purchasing shall open all bids and shall thereafter award a contract to the best bidder and shall in all instances reserve the right to reject any and all bids. A bond satisfactory to the division shall be given by the party to whom the contract is awarded, to secure the faithful performance of such contract.

5. The Missouri assistive technology advisory council shall administer the statewide telecommunications equipment distribution program. The Missouri assistive technology advisory council shall review the recommendations of the investigation described in subsection 2 of this section and shall solicit additional input as needed to update the recommendations. Using such recommendations, the Missouri assistive technology advisory council shall design the equipment distribution program to provide adaptive telephone equipment to eligible subscribers in the most beneficial and cost-effective manner. The equipment distribution program shall include consumer support and outreach.

6. Nothing in sections 209.251 to 209.259 shall be construed to require the state to purchase, install or maintain equipment on an eligible subscriber's premises which will enable the eligible subscriber to participate in the dual-party relay system.

7. Nothing in sections 209.251 to 209.259 shall be construed to require the state to provide adaptive telephone equipment to all eligible subscribers. Any procedures adopted by the Missouri assistive technology advisory council to limit eligibility for adaptive telephone equipment shall not be based on an individual's type of disability.

209.255. 1. The commission shall establish a rate recovery mechanism to recover the costs of implementing and maintaining the dual-party relay program provided for in section 209.253, which shall be applied to each basic telephone access line. A rate recovery mechanism, in an amount equal to sixty-five percent rounded to the nearest whole cent of the dual-party relay rate recovery surcharge, shall be established to recover the costs of implementing and maintaining the statewide telecommunications equipment distribution program provided for in section 209.253, which shall also be applied to each basic telephone access line. Any surcharge established by such rate recovery mechanism shall not be imposed upon more than one hundred basic telephone access lines per subscriber per location. Any surcharge established by such rate recovery mechanism shall not be imposed on any telephone line used to provide pay telephone service. The surcharge may appear on the bill of each local exchange telephone subscriber identified separately as a deaf relay service and equipment distribution program fund surcharge. The commission shall not vary the amount of the surcharge between telephone companies nor between the class or grade of customers of any telephone company. The surcharge provided for in this section shall be exempt from the taxes provided for in chapter 144, RSMo, and the surcharge shall not be construed as gross receipts or revenue of the company collecting such for the purpose of local taxation.

2. Each basic telephone access line subscriber is liable for the payment of any [surcharge] surcharges provided for in subsection 1 of this section. The local exchange telephone company shall not be liable for any uncollected [surcharge] surcharges, nor shall it have any obligation to initiate any action to enforce the collection of the [surcharge] surcharges.

209.257. The local exchange telephone company shall deduct and retain a percentage of the total surcharge amount collected each month to recover the billing, collecting, remitting and administrative costs attributed to the deaf relay service and equipment distribution program fund [surcharge] surcharges. The commission shall determine the appropriate percentage to be deducted and retained and shall include this percentage as part of its order establishing the deaf relay service and equipment distribution program fund [surcharge] surcharges. All remaining deaf relay service and equipment distribution program fund [surcharge] surcharges money collected by local exchange telephone companies shall be remitted to the commission, who shall use such money exclusively to fund the programs provided for in section 209.253.

209.258. 1. All remaining deaf relay service fund surcharge and equipment distribution program fund surcharge money collected by local exchange telephone companies pursuant to section 209.257 shall be paid to the director of revenue in a manner prescribed by the public service commission. The director of revenue shall remit such payments to the state treasurer.

2. The state treasurer shall credit such deaf relay service payments to a special fund, which is hereby created, to be known as the "Deaf Relay Service [and Equipment Distribution Program] Fund" which [fund] shall be devoted solely to the payment of the expenditures actually incurred in operation of the statewide dual-party relay service [and equipment distribution program] authorized by section 209.253, including expenses associated with the administration of the dual-party relay service [and equipment distribution program] or incurred by members of any advisory committee appointed by the commission to help it administer the dual-party relay service and equipment distribution program authorized by section 209.253.

3. The state treasurer shall credit such equipment distribution program payments to a special fund, which is hereby created, to be known as the "Equipment Distribution Program Fund" which shall be devoted solely to the payment of the expenditures actually incurred in operation of the statewide equipment distribution program authorized by section 209.253, including expenses associated with the administration of the statewide equipment distribution program or incurred by members of any advisory committee appointed by the Missouri assistive technology advisory council to help it administer the statewide equipment distribution program authorized by section 209.253.

4. Any unexpended balance in the deaf relay service fund at the end of the fiscal year shall be exempt from the provisions of section 33.080, RSMo, relating to the transfer of unexpended balances to the general revenue fund, but shall be applicable by appropriation of the general assembly to the payment of expenditures for the dual-party relay service [and equipment distribution program] in the succeeding fiscal year.

5. Any unexpended balance in the equipment distribution fund at the end of each fiscal year shall be exempt from the provisions of section 33.080, RSMo, related to the transfer of unexpended balances to the general revenue fund, but shall be applicable by appropriation of the general assembly to the payment of expenditures for the equipment distribution program in the succeeding fiscal year.

[4.] 6. Any unexpended balance in the deaf relay service and equipment distribution program fund on August 28, [1996] 1998, shall be [transferred to] divided as follows: sixty percent to the deaf relay service fund created in subsection 2 of this section and forty percent to the equipment distribution program fund [which is] created in subsection [2] 3 of this section.

209.259. From the date of implementing the deaf relay service [and equipment distribution] fund surcharge, the commission shall review such surcharge no less frequently than every two years but no more than annually and shall order changes in the amount of the surcharge as necessary to assure available funds for the provision of the [program] deaf relay service established in section 209.253. Concurrent with the review of the surcharge, the commission shall review the percentage deducted and retained by the local exchange telephone company provided in section 209.257 and if necessary shall order adjustments to the percentage to assure a just and reasonable compensation to the local exchange telephone company. Where the review of the surcharge determines that excess funds are available, the commission may order the suspension of the deaf relay service [and equipment distribution program] fund surcharge for a period which the commission deems appropriate.".

HOUSE AMENDMENT NO. 2

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 1, In the Title, Line 5, by inserting after the word "sections" the number "135.100,"; and

Further amend said bill, Page 1, In the Title, Line 11, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 17, by inserting after the word "sections" the number "135.100,"; and

Further amend said bill, Page 1, Section A, Line 20, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 21, by inserting after the number "32.115," the number "135.100,"; and

Further amend said bill, Page 11, Section 32.115, Line 11, by inserting after all of said line the following:

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

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

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

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

(4) "New business facility", a facility which satisfies the following requirements:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(9) "Related taxpayer" shall mean:

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

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

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

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

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

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

(11) "Revenue producing enterprise" means:

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

(b) Agricultural activities classified as SIC 025;

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

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

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

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

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

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

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

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

(k) Interexchange telecommunications services as defined in subdivision [(20)] (24) or local exchange telecommunications services as defined in subdivision (31) of section 386.020, RSMo, or training activities conducted by an interexchange telecommunications company or by a local exchange telecommunications company as defined in [subdivision (19)] subdivisions (23) and (30) of section 386.020, RSMo;

(l) Recycling activities classified as SIC 5093;

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

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

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

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

(q) Any combination of any of the foregoing activities;

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

(13) "SIC", the primary standard industrial classification as such classifications are defined in the 1987 edition of the Standard Industrial Classification Manual as prepared by the Executive Office of the President, Office of Management and Budget. For the purpose of this subdivision, "primary" means at least fifty percent of the activities so classified are performed at the new business facility during the taxpayer's tax period in which such tax credits are being claimed;

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

Further amend said bill, Page 21, Section 135.110, Line 7, by inserting after the word "company" the following: "or local exchange telecommunications company".

HOUSE AMENDMENT NO. 3

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 1, In the Title, Line 5, by inserting after the number "135.208" the following: ", 620.1023"; and

Further amend said bill, Page 1, In the Title, Line 11, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 17, by inserting after the number "135.208" the following: ", 620.1023"; and

Further amend said bill, Page 1, Section A, Line 20, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 2, Section A, Line 1, by inserting after the number "447.708," the number "620.1023,"; and

Further amend said bill, Page 61, Section 447.708, Line 12, by inserting after all of said line the following:

"620.1023. 1. There is hereby created in the state treasury a revolving fund to be administered by the department of economic development to be known as the "Business Extension Service Team Fund". The fund shall consist of all moneys which may be appropriated to it by the general assembly, gifts, contributions, grants or bequests received from federal, private or other sources. A percentage of the moneys in such fund shall be used by the department for grants or loans for qualified community development projects in order to create or retain jobs in any city not within a county [and], any city with a population of three hundred fifty thousand or more inhabitants which is located in more than one county and any fourth class city with a population of at least three thousand five hundred inhabitants but not more than five thousand five hundred inhabitants which is located in a county of the first classification with a charter form of government with a population of at least nine hundred thousand inhabitants, and shall be targeted toward economically blighted urban districts for new businesses, expansion of existing businesses and for employee training and housing. The department may require such grants or loans to be made on a matching fund basis. Any city that receives funding from the business extension service team fund may use up to twenty percent of such grant or loan for administrative costs. As used in this subdivision, "economically blighted urban districts" means areas which meet all of the following criteria:

(1) The area is one of pervasive poverty, unemployment, and general distress;

(2) The area is located wholly within an area which meets the requirements for federal assistance under section 119 of the Housing and Community Development Act of 1974, as amended;

(3) At least sixty-five percent of the residents living in the area have incomes below eighty percent of the median income of all residents within the state of Missouri according to the last decennial census or other appropriate source as approved by the director of the department of economic development;

(4) The resident population of the area is at least four thousand at the time of designation as an economically blighted urban district. If the population of the jurisdiction of the governing authority does not meet the minimum population requirements set forth in this subdivision, the population of the area must be at least fifty percent of the population of the jurisdiction; and

(5) The level of unemployment of persons, according to the most recent data available from the division of employment security or from the United States Bureau of Census and approved by the director of the department of economic development, within the area exceeds one and one-half times the average rate of unemployment for the state of Missouri over the previous twelve months, or the percentage of area residents employed on a full-time basis is less than fifty percent of the statewide percentage of residents employed on a full-time basis.

2. The department of economic development may use a percentage of the moneys in the fund established in subsection 1 of this section to directly contract with community development corporations established pursuant to section 135.400, RSMo, for the provision of job training or for creating or retaining jobs in any area meeting the criteria outlined in subsection 1 of this section.

3. All moneys remaining in the business extension service team 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 business extension service team fund.".

HOUSE AMENDMENT NO. 4

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 1, In the Title, Line 11, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 20, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 2, Section A, Line 1, by deleting the word and number "and 2" and inserting in lieu thereof the following: ", 2 and 3"; and

Further amend said bill, Page 67, Section 2, Line 10, by inserting after all of said line the following:

"Section 3. Notwithstanding any other provision of law to the contrary, any taxpayer having tax credits available pursuant to sections 135.200 to 135.256, RSMo, in connection with a facility or facilities located in Missouri producing from agricultural products alcohol, or fuel additives from alcohol, for incorporation into fuel or fuel additives may apply such credits against any and all of such taxpayer's tax liability imposed by chapter 143, RSMo, or chapter 148, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, and such taxpayer may allocate all or any part of such credits to its shareholders, partners, members, substantial suppliers or substantial creditors, in any manner of allocation as such taxpayer shall determine. The maximum amount of tax credits allowable pursuant to the provisions of this section shall not annually exceed three million dollars.".

HOUSE AMENDMENT NO. 5

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 1, In the Title, Line 2, by deleting the word and number "section 32.110" and inserting in lieu thereof the following; "sections 32.110 and 137.115"; and

Further amend said bill, Page 1, In the Title, Line 11, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 15, by deleting the word and number "Section 32.110" and inserting in lieu thereof the following: "Sections 32.110 and 137.115"; and

Further amend said bill, Page 1, Section A, Line 20, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 21, by inserting after the number "135.208," the number "137.115,"; and

Further amend said bill, Page 29, Section 135.208, Line 8, by inserting after all of said line the following:

"137.115. 1. All other laws to the contrary notwithstanding, the assessor or his deputies in all counties of this state including the city of St. Louis shall annually make a list of all real and tangible personal property taxable in his city, county, town or district. Except as otherwise provided in subsection 3 of this section, he shall annually assess all personal property at thirty-three and one-third percent of its true value in money as of January first of each calendar year. He shall annually assess all real property, including any new construction and improvements to real property, and possessory interests in real property at the percent of its true value in money set in subsection 5 of this section. He shall annually assess all real property in the following manner: New assessed values shall be determined as of January first of each odd-numbered year and shall be entered in the assessor's books; those same assessed values shall apply in the following even-numbered year, except for new construction and property improvements which shall be valued as though they had been completed as of January first of the preceding odd-numbered year. He may call at the office, place of doing business, or residence of each person required by this chapter to list property, and require the person to make a correct statement of all taxable real property in the county owned by the person, or under his care, charge or management, and all taxable tangible personal property owned by the person or under his care, charge or management, taxable in the county. On or before January first of each even-numbered year, the assessor shall prepare and submit a two-year assessment maintenance plan to the county governing body and the state tax commission for their respective approval or modification. The county governing body shall approve and forward such plan or its alternative to the plan to the state tax commission by February first. If the county governing body fails to forward the plan or its alternative to the plan to the state tax commission by February first, the assessor's plan shall be considered approved by the county governing body. If an assessment maintenance plan is agreed upon by the county assessor, the county governing body and the state tax commission within thirty days of submission to the state tax commission, the county shall be eligible for state cost-share funds as outlined in section 137.750. If the state tax commission fails to approve a plan within thirty days after the date submitted and if the state tax commission and the assessor and the governing body of the county involved are unable to resolve the differences within an additional thirty days, then the differences shall be submitted to the circuit court of the county involved for final resolution within an additional thirty days. The decision of the circuit court may be appealed pursuant to chapter 621, RSMo. In the event a valuation of subclass (1) real property within any first class charter county, or within a city not within a county, is made by a computer, computer assisted method or a computer program, the burden of proof, supported by clear, convincing and cogent evidence to sustain such valuation, shall be on the assessor at any hearing or appeal. In any such county, unless the assessor proves otherwise, there shall be a presumption that the assessment was made by a computer, computer assisted method or a computer program. Such evidence shall include, but shall not be limited to, the following:

(1) The findings of the assessor based on an appraisal of the property by generally accepted appraisal techniques; and

(2) The purchase prices from sales of at least three comparable properties and the address or location thereof. As used in this paragraph, the word "comparable" means that:

(a) Such sale was closed at a date relevant to the property valuation; and

(b) Such properties are not more than one mile from the site of the disputed property, except where no similar properties exist within one mile of the disputed property, the nearest comparable property shall be used. Such property shall be within five hundred square feet in size of the disputed property, and resemble the disputed property in age, floor plan, number of rooms, and other relevant characteristics.

2. Assessors in each county of this state and the city of St. Louis may send personal property assessment forms through the mail.

3. The following items of personal property shall each constitute separate subclasses of tangible personal property and shall be assessed and valued for the purposes of taxation at the following percents of their true value in money:

(1) Grain and other agricultural crops in an unmanufactured condition, one-half of one percent;

(2) Livestock, twelve percent;

(3) Farm machinery, twelve percent;

(4) Motor vehicles which are eligible for registration as and are registered as historic motor vehicles under section 301.131, RSMo, and aircraft which are at least twenty-five years old and which are used solely for noncommercial purposes and are operated less than fifty hours per year or aircraft that are home built from a kit, five percent; [and]

(5) Poultry, twelve percent[.]; and

(6) Tools and equipment used for pollution control and tools and equipment used in retooling for the purpose of introducing new product lines or used for making improvements to existing products by any company which is located in a state enterprise zone and which is identified by any standard industrial classification number cited in subdivision (6) of section 135.200, RSMo, twenty-five percent.

4. The person listing the property shall enter a true and correct statement of the property, in a printed blank prepared for that purpose. The statement, after being filled out, shall be signed and either affirmed or sworn to as provided in section 137.155. The list shall then be delivered to the assessor.

5. All subclasses of real property, as such subclasses are established in section 4(b) of article X of the Missouri Constitution and defined in section 137.016, shall be assessed at the following percentages of true value:

(1) For real property in subclass (1), nineteen percent;

(2) For real property in subclass (2), twelve percent; and

(3) For real property in subclass (3), thirty-two percent.

6. Manufactured homes, as defined in section 700.010, RSMo, which are actually used as dwelling units shall be assessed at the same percentage of true value as residential real property for the purpose of taxation. The percentage of assessment of true value for such manufactured homes shall be the same as for residential real property. If the county collector cannot identify or find the manufactured home when attempting to attach the manufactured home for payment of taxes owed by the manufactured home owner, the county collector may request the county commission to have the manufactured home removed from the tax books, and such request shall be granted within thirty days after the request is made; however, the removal from the tax books does not remove the tax lien on the manufactured home if it is later identified or found. A manufactured home located in a manufactured home rental park, rental community or on real estate not owned by the manufactured home owner shall be considered personal property. A manufactured home located on real estate owned by the manufactured home owner may be considered real property.

7. Each manufactured home assessed shall be considered a "parcel" for the purpose of reimbursement under section 137.750, unless the manufactured home has been converted to real property in compliance with section 700.111, RSMo, and assessed as a realty improvement to the existing real estate parcel.

8. Any amount of tax due and owing based on the assessment of a manufactured home shall be included on the personal property tax statement of the manufactured home owner unless the manufactured home has been converted to real property in compliance with section 700.111, RSMo, in which case the amount of tax due and owing on the assessment of the manufactured home as a realty improvement to the existing real estate parcel shall be included on the real property tax statement of the real estate owner.

9. The assessor of each county and each city not within a county shall use the trade-in value published in the October issue of the National Automobile Dealers' Association Official Used Car Guide, or its successor publication, as the recommended guide of information for determining the true value of motor vehicles described in such publication. In the absence of a listing for a particular motor vehicle in such publication, the assessor shall use such information or publications which in his judgment will fairly estimate the true value in money of the motor vehicle.

10. If the assessor increases the assessed valuation of any parcel of subclass (1) real property by more than seventeen percent since the last assessment, excluding increases due to new construction or improvements, then the assessor shall conduct a physical inspection of such property.".

HOUSE AMENDMENT NO. 6

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 54, Section 447.700.11.3, Line 20, by deleting the words, " "No Further Action" letter" and inserting in lieu thereof the words, "Letter of Completion".

HOUSE AMENDMENT NO. 7

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 1, In the Title, Line 2, by inserting after the number "32.110" the following: "section 260.285,"; and

Further amend said bill, Page 1, In the Title, Line 11, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 15, by inserting after the number "32.110" the following: "260.285,"; and

Further amend said bill, Page 1, Section A, Line 20, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 21, by inserting after the number "135.208," the number "260.285,"; and

Further amend said bill, Page 29, Section 135.208, Line 8, by inserting after all of said line the following:

"260.285. 1. Any manufacturer engaged in this state in production of a meat or poultry food product intended for human consumption that is recycling flexible cellulose casing manufactured from cotton linters used and consumed directly in the production of such food product shall be eligible for a credit as defined in subsection 2 of this section.

2. The credit authorized in subsection 1 shall be equal to the amount of state sales or use taxes paid by a manufacturer to a retailer on such packaging material which is subsequently recycled by either the manufacturer or other person or entity to which the manufacturer conveys such packaging materials, less any consideration received by the manufacturer for such conveyance.

3. A manufacturer shall claim the refund in the month following the month in which the material has been recycled or conveyed for recycling. When claiming a credit [under] pursuant to this section, a manufacturer shall provide a detailed accounting of the amount of packaging material recycled, amount of sales or use tax paid on such material, an affidavit attesting that the manufacturer is eligible [under] pursuant to the provisions of this section for the credit being claimed and any other documentation determined necessary by the director of the department of revenue. The director shall refund any valid credit claims within sixty days of receipt. If the director determines that a fraudulent claim for the credit has been filed, the director may assess a penalty in an amount not to exceed twice the amount of fraudulent credits claimed.

4. Payment of credits authorized by this section shall not alter the liability of a retailer regarding sales tax on such material. Credits authorized by this section shall be paid from funds appropriated for the refund of taxes.

5. This section shall become effective October 1, 1991. [This section shall expire October 1, 2001.]".

HOUSE AMENDMENT NO. 8

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 67, Section 2, Line 10, of said page, by inserting immediately after said line the following:

"Section 3. For all tax years beginning on or after January 1, 1999, a grape grower or wine producer shall be allowed a tax credit against the state tax liability incurred pursuant to chapter 143, RSMo, exclusive of the provisions relating to the withholding of tax as provided in sections 143.191 to 143.265, RSMo, in an amount equal to twenty-five percent of the purchase price of all new equipment and materials used directly in the growing of grapes or the production of wine in the state. Each grower or producer shall apply to the department of economic development and specify the total amount of such new equipment and materials purchased during the calendar year. The department of economic development shall certify to the department of revenue the amount of such tax credit to which a grape grower or wine producer is entitled pursuant to this section. The provisions of this section notwithstanding, a grower or producer may only apply for and receive the credit authorized by this section for five tax periods"; and,

Further amend the title and enacting clause accordingly.

HOUSE AMENDMENT NO. 9

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 29, Section 135.208, Line 8, by inserting after said line the following new subsection:

"8. In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone for any fourth class city with a population of at least five hundred but not more than six hundred inhabutants, and which city is located in two third class counties, one with a population of at least seven thousand but not more than eight thousand inhabutants, and the other county with a population of at least twenty thousand but not more than twenty-two thousand inhabutants, such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all in the requirements of section 135.205."

HOUSE AMENDMENT NO. 10

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 1, In the Title, Line 2, by deleting the word and number "section 32.110" and inserting in lieu thereof the following: "sections 32.110 and 135.256"; and

Further amend said bill, Page 1, In the Title, Line 11, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 15, by deleting the word and number "Section 32.110"; and

Further amend said bill, Page 1, Section A, Line 20, by deleting the word "thirteen" and inserting in lieu thereof the word "fourteen"; and

Further amend said bill, Page 1, Section A, Line 21, by inserting after the number "135.208," the number "135.256,"; and

Further amend said bill, Page 29, Section 135.208, Line 8, by inserting after all of said line the following:

"135.256. 1. In addition to the number of enterprise zones authorized under the provisions of sections 135.206 and 135.210, the department of economic development shall designate one such zone in every city of the third class in every county of the third class which contains a state university whose primary mission is engineering studies and technical research, in any third class city with a population of at least two thousand three hundred but not more than three thousand inhabitants located in a county of the fourth classification with a population of at least forty-two thousand but not more than forty-eight thousand inhabitants, and in any fourth class city with a population of at least one thousand but not more than one thousand five hundred inhabitants located in a county of the third classification with a population of eight thousand but not more than nine thousand inhabitants that adjoins three counties of the third classification with a township form of government and also three counties of the third classification without a township form of government. Such enterprise zone designation shall only be made if the area in the city which is to be included meets all the requirements of section 135.205.".

HOUSE AMENDMENT NO. 11

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 29, Section 135.208, Line 8, by inserting immediately after said line the following:

"135.444. 1. For all tax years beginning on or after January 1, 1999, any person, firm or corporation engaging in the business of conducting games of bowling in bowling alleys located in Missouri shall be eligible for a tax credit on incomes taxes otherwise due pursuant to chapter 143, RSMo, except sections 143.191 to 143.261, RSMo, in an amount equal to ten percent of the purchase price of machinery, equipment and other tangible personal property required to conduct games of bowling in bowling alleys.

2. When applying for a tax credit pursuant to this section, the person, firm or corporation shall make application for the credit to the director of the department of economic development. The director of the department of economic development shall prescribe the method for submitting applications to claim the credit and shall certify to the department of revenue that the taxpayer has made qualified purchases.

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

4. Pursuant to rules promulgated by the director of the department of revenue for the state income tax, the taxpayer may elect to assign to a third party the approved tax credit. Certification of assignment and other appropriate forms shall be filed with the department of revenue.

5. The provisions of this section shall not apply to:

(1) Excursion gambling boats licensed pursuant to sections 313.800 to 313.850, RSMo;

(2) Any corporation owning more than three bowling alleys in this state; or

(3) Any person, firm or corporation that applies for the credit allowed by this section on or after January 1, 2005."

Amend title and enacting clause accordingly.

HOUSE AMENDMENT NO. 12

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 29, Section 135.208, Line 8, by inserting immediately after said line the following:

"135.400. As used in sections 135.400 to 135.430, the following terms mean:

(1) "Certificate", a tax credit certificate issued by the department of economic development in accordance with sections 135.400 to 135.430;

(2) "Community bank", either a bank community development corporation or development bank, which are financial organizations which receive investments from commercial financial institutions regulated by the federal reserve, the office of the comptroller of the currency, the office of thrift supervision, or the Missouri division of finance. Community banks, in addition to their other privileges, shall be allowed to make loans to businesses or equity investments in businesses or in real estate provided that such transactions have associated public benefits;

(3) "Community development corporation", a not for profit corporation and a recipient of Community Development Block Grant (CDBG) funds pursuant to the Housing Community Development Act of 1974. Such corporations design specific, comprehensive programs to stimulate economic development, housing or other public benefits leading to the development of economically sustainable neighborhoods or communities;

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

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

(6) "Investment", a transaction in which a Missouri small business or a community bank receives a monetary benefit from an investor [under] pursuant to the provisions of sections 135.403 to 135.414;

(7) "Investor", an individual, partnership, financial institution, trust or corporation meeting the eligibility requirements of sections 135.403 to 135.414. In the case of partnerships and nontaxable trusts, the individual partners or beneficiaries shall be treated as the investors;

(8) "Missouri small business", an independently owned and operated business as defined in Title 15 U.S.C. section 632(a) and as described by Title 13 C.F.R. Part 121, which is headquartered in Missouri and which employs at least eighty percent of its employees in Missouri, except that no such small business shall employ more than one hundred employees. Such businesses must be involved in interstate or intrastate commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, real estate, insurance or professional services. For the purpose of qualifying for the tax credit pursuant to sections 135.400 to 135.430, "Missouri small business" shall include cooperative marketing associations organized pursuant to chapter 274, RSMo, which are engaged in the business of producing and marketing fuels derived from agriculture commodities, without regard for whether a cooperative marketing association has more than one hundred employees. Cooperative marketing associations organized pursuant to chapter 274, RSMo, shall not be required to comply with the requirements of section 135.414;

(9) "Primary employment", work which pays at least the minimum wage and which is not seasonal or part-time;

(10) "Principal owners", one or more persons who own an aggregate of fifty percent or more of the Missouri small business and who are involved in the operation of the business as a full-time professional activity;

(11) "Project", any commercial or industrial business or other economic development activity undertaken in a target area, designed to reduce conditions of blight, unemployment or widespread reliance on public assistance which creates permanent primary employment opportunities;

(12) "State tax liability", any liability incurred by a taxpayer [under] pursuant to the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, section 375.916, 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;

(13) "Target area", a group of blocks or a self-defined neighborhood where the rate of poverty in the area is greater than twice the national poverty rate and as defined by the department of social services in conjunction with the department of economic development. Areas of the state satisfying the criteria of this subdivision may be designated as a "target area" following appropriate findings made and certified by the departments of economic development and social services. In making such findings, the departments of economic development and social services may use any commonly recognized records and statistical indices published or made available by any agency or instrumentality of the federal or state government. No area of the state shall be a target area until so certified by the department of social services and the revitalization plan submitted pursuant to section 208.335, RSMo, has received approval.

And amend title and enacting clause accordingly.

HOUSE AMENDMENT NO. 13

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 65, Section 2, Line 8, by deleting the figure "1999" found on said line and inserting in lieu thereof the figure "1998".

HOUSE SUBSTITUTE AMENDMENT NO. 1 FOR

HOUSE AMENDMENT NO. 14

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 34, Section 447.700, Lines 1-5, by inserting after the word "occur" on line 5, the following:

", if approval from the general assembly has been given for any improvements to, or remediation, lease or sale of said property;".

HOUSE AMENDMENT NO. 15

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 1, In the Title, Line 2 of said page, by inserting after "Supp. 1997," the following: "and sections 253.557 and 253.559 as enacted by senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly and approved by the governor,"; and

Further amend said bill, Page 1, In the Title, Line 11 of said page, by deleting the word "thirteen" and inserting in lieu thereof the word "fifteen"; and

Further amend said bill, Page 1, Section A, Line 15 of said page by inserting after "Supp. 1997," the following: "and sections 253.557 and 253.559 as enacted by senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly and approved by the governor,"; and

Further amend said bill, Page 1, Section A, Line 20 of said page, by deleting the word "thirteen" and inserting in lieu thereof the word "fifteen"; and

Further amend said bill, Page 1, Section A, Line 21 of said page, by inserting after the figure "135.208," the figures "253.557, 253.559,"; and

Further amend said bill, Page 29, Section 135.208, Line 8 of said page, by inserting after all of said line the following:

"253.557. 1. If the amount of such credit exceeds the total tax liability for the year in which the rehabilitated property is placed in service, the amount that exceeds the state tax liability may be carried back to any of the three preceding years or carried forward for credit against the taxes imposed pursuant to chapter 143, RSMo, and chapter 148, RSMo, except for sections 143.191 to 143.265, RSMo, for the succeeding ten years, or until the full credit is used, whichever occurs first. The tax credit can be transferred, sold or assigned. Credits granted to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the partners, members or owners respectively pro rata or pursuant to an executed agreement among the partners, members or owners documenting an alternate distribution method.

2. Notwithstanding any provision of law to the contrary, any entity which is not for profit, excluding religious and governmental institutions, may sell, assign, exchange, convey or otherwise transfer tax credits allowed pursuant to section 253.550 under the terms and conditions prescribed in this subsection. Such entity, hereinafter the assignor for the purposes of this subsection, may sell, assign, exchange or otherwise transfer earned tax credits.

The assignee of the tax credits, hereinafter the assignee for purposes of this subsection, may use acquired credits to offset up to one hundred percent of the tax liabilities otherwise imposed pursuant to chapter 143, RSMo, and chapter 148, RSMo, except for sections 143.191 to 143.265, RSMo. Unused credits in the hands of the assignee may be carried forward and carried back in accordance with subsection 1 of this section. The assignor shall enter into a written agreement with the assignee establishing the terms and conditions of the agreement and shall perfect such transfer by notifying the department of economic development in writing within thirty calendar days following the effective date of the transfer and shall provide any information as may be required by the department of economic development to administer and carry out the provisions of this section. Notwithstanding any provision of law to the contrary, the excess of the par value of such credits over the amount paid by the assignee for such credit shall be taxable as income of the assignee. The aggregate of all tax credits authorized pursuant to the provisions of this subsection per eligible property shall not exceed twenty-one million dollars per fiscal year. Fourteen million dollars of such credits shall be reserved for projects which individually are earned credits of five hundred thousand dollars or more. Seven million dollars of such credits shall be reserved for projects which individually are earned to credits of less than five hundred thousand dollars. The department of economic development with the approval of the department of natural resources shall promulgate rules to implement the provisions of this subsection, including the establishment of selection criteria.

3. The provisions of subsection 2 of this section shall expire December 31, 2003.

253.559. 1. To claim the credit authorized pursuant to sections 253.550 to 253.561 of senate bill no. 1 of the second extraordinary session of the eighty-ninth general assembly and section 253.557 of this act, the taxpayer shall apply to the department of economic development which, in consultation with the department of natural resources, shall determine the amount of eligible rehabilitation costs and expenses and whether the rehabilitation meets the standards of the Secretary of the United States Department of the Interior for rehabilitation as determined by the state historic preservation officer of the Missouri department of natural resources. For financial institutions credits authorized pursuant to sections 253.550 to 253.561 shall be deemed to be "economic development credits" for purposes of section 148.064, RSMo. The issuing of certificates of eligible credits to taxpayers shall be performed by the department of economic development. The taxpayer shall attach the certificate to all Missouri income tax returns on which the credit is claimed.

2. The department of economic development shall determine, on an annual basis, the overall economic impact to the state from the rehabilitation of eligible property.".

HOUSE AMENDMENT NO. 16

Amend House Substitute for House Committee Substitute for Senate Bill No. 827, Page 267, Section 2, Line 10, by inserting after said line the following new section:

"Section 3. By the effective date of this act, the Speaker of the house of representatives shall appoint 9 members of the house, not more than five of whom shall be from the same political party, to evaluate all tax credit programs administered by the department of economic development. Such interim committee shall submit a report with recommendations concerning such tax credit programs by March 1, 1999, to the Speaker of the house of representatives.".

In which the concurrence of the Senate is respectfully requested.

BILL REFERRALS

President Pro Tem McKenna referred HCS for HB 1265 and HB 1258, with SCA 1, to the Committee on State Budget Control.

HOUSE BILLS ON THIRD READING

HB 1876, with SCS, introduced by Representative Leake, et al, entitled:

An Act to repeal section 275.350, RSMo 1994, relating to funds in the commodity merchandising program, and to enact in lieu thereof one new section relating to the same subject, with an emergency clause.

Was taken up by Senator Johnson.

SCS for HB 1876, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

HOUSE BILL NO. 1876

An Act to repeal section 275.350, RSMo 1994, relating to funds in the commodity merchandising program, and to enact in lieu thereof one new section relating to the same subject, with an emergency clause.

Was taken up.

Senator Johnson moved that SCS for HB 1876 be adopted, which motion prevailed.

On motion of Senator Johnson, SCS for HB 1876 was read the 3rd time and passed by the following vote:

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

The President declared the bill passed.

The emergency clause was adopted by the following vote:

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

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

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

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

Senator Wiggins moved that HB 1507, with SCS, SA 1, SSA 1 for SA 1 and SA 1 to SSA 1 for SA 1 (pending), be called from the Informal Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

At the request of Senator Scott, SA 1 to SSA 1 for SA 1 was withdrawn.

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

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

At the request of Senator Wiggins, HB 1507, with SCS (pending), was placed on the Informal Calendar.

RESOLUTIONS

Senator Westfall offered Senate Resolution No. 1915, regarding the One Hundredth Anniversary of the First Baptist Church, Dadeville, which was adopted.

Senator McKenna offered Senate Resolution No. 1916, regarding the Fiftieth Wedding Anniversary of Mr. and Mrs. Jack Cronin, which was adopted.

Senator Singleton offered Senate Resolution No. 1917, regarding the One Hundred Twenty-fifth Anniversary of the City of Joplin, which was adopted.

Senator House offered Senate Resolution No. 1918, regarding Jim and Donna Joerling, New Melle, which was adopted.

INTRODUCTIONS OF GUESTS

Senator Flotron introduced to the Senate, fourth, fifth and sixth grade students from Chesterfield Day School-St. Albins, St. Louis.



Senator Scott introduced to the Senate, Madeline May Reardon, St. Louis; and Madeline was made an honorary page.

On motion of Senator Johnson, the Senate adjourned until 9:30 a.m., Wednesday, May 13, 1998.