Journal of the Senate

FIRST REGULAR SESSION


TWENTY-FOURTH DAY--TUESDAY, FEBRUARY 16, 1999


The Senate met pursuant to adjournment.

President Pro Tem Quick in the Chair.

The Reverend Carl R. Gauck offered the following prayer:

"Blessed are those who recognize their need of God for their's is the Kingdom of Heaven." (Matthew 5:1 (Phillips'))

Almighty God: Like most leaders we are aware of our need of You for on our own we can do little and nothing of real consequence. So we pray this day for Your presence in all we do and say that we might make decisions and take actions keeping with Your will. And we pray for so many suffering from flu and colds and pray for Your healing power to bring health and strength to those who are ill. This we ask in Your Name. 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 Bland Caskey
Childers Clay DePasco Ehlmann
Flotron Goode Graves House
Howard Jacob Johnson Kenney
Kinder Klarich Mathewson Maxwell
Mueller Quick Rohrbach Russell
Schneider Scott Sims Singleton
Staples Steelman Stoll Westfall
Wiggins Yeckel--34
Absent with leave--Senators--None
The Lieutenant Governor was present.


RESOLUTIONS

Senator Rohrbach offered Senate Resolution No. 243, regarding Patra, pet of John and Donna Jacobs, Lohman, which was adopted.

Senator Rohrbach offered Senate Resolution No. 244, regarding Cecil Koechner, Tipton, which was adopted.

INTRODUCTION OF BILLS

The following Bill was read the 1st time and 1,000 copies ordered printed:

SB 454-By Bentley.

An Act to repeal section 88.812, RSMo 1994, relating to special assessments for public works, and to enact in lieu thereof one new section relating to the same subject.

SENATE BILLS FOR PERFECTION

Senator Jacob moved that SB 318, with SCS, SS for SCS, SA 1 and SSA 2 for SA 1 (pending), be called from the Informal Calendar and again taken up for perfection, which motion prevailed.

SSA 2 for SA 1 was again taken up.

President Wilson assumed the Chair.

President Pro Tem Quick assumed the Chair.

Senator Wiggins assumed the Chair.

Senator DePasco announced that photographers from Channel-8 had been given permission to take pictures in the Senate Chamber today.

Senator Kenney offered SA 1 to SSA 2 for SA 1:

SENATE AMENDMENT NO. 1 TO

SENATE SUBSTITUTE AMENDMENT NO. 2 FOR

SENATE AMENDMENT NO. 1

Amend Senate Substitute Amendment No. 2 for Senate Amendment No. 1 to Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 218 of the Senate Journal for Wednesday, February 10, 1999, Column 1, Line 39 of said column, by inserting immediately after all of said line the following:

"Further amend said bill, Page 7, Section 147.010, Line 7 of said page, by inserting immediately after all of said line the following:

"160.500. 1. Sections 160.500 to 160.538, sections 160.545 and 160.550, sections 161.099 and 161.610, RSMo, sections 162.203 and 162.1010, RSMo, section 163.023, RSMo, sections 166.275 and 166.300, RSMo, section 170.254, RSMo, section 173.750, RSMo, and sections 178.585 and 178.698, RSMo, may be cited as the "Outstanding Schools Act" and includes provisions relating to reduced class size, the A+ schools program, funding for parents as teachers and early childhood development, teacher training, the upgrading of vocational and technical education, measures to promote accountability and other provisions of those sections.

2. There is hereby established in the state treasury the "Outstanding Schools Trust Fund". The moneys in the fund shall be available to support only the provisions, reforms and programs referenced in subsection 1 of this section or otherwise contained in this act. The fund shall consist of moneys required by law to be credited to such fund and moneys appropriated annually by the general assembly. Notwithstanding the provisions of section 33.080, RSMo, to the contrary, moneys in the fund shall not be transferred to the credit of the general revenue fund at the end of the biennium. All yield, interest, income, increment or gain received from time deposit of moneys in the state treasury to the credit of the fund shall be credited by the state treasurer to the fund. Of all refunds made of taxes deposited into the fund, the appropriate percentage of any refund shall be paid from the fund or deducted from transfers to the fund.

3. The commissioner of administration shall estimate and furnish to the state treasurer the appropriate net increase in the amount of state tax revenues collected and any adjustments to previous estimates pursuant to this act from the following: the additional one and one-fourth percent tax on Missouri taxable income collected under subsection 2 of section 143.071, RSMo; and the reduction of the federal income tax deduction pursuant to [subsections 2 and 3] subsection 2 of section 143.171, RSMo, not including any change in tax collections resulting from any revision of the federal tax code made after January 1, 1993. For all tax years beginning on or after January 1, 1999, the commissioner of administration shall also include in such estimate an amount equal to three and one-eighth percent of the cumulative amount claimed by all corporate taxpayers as a deduction for federal income tax liability pursuant to section 143.171, RSMo. The treasurer shall transfer monthly from general revenue an amount equal to the estimate to the outstanding schools trust fund established in subsection 2 of this section."; and".

Senator Kenney moved that the above amendment be adopted.

Senator Schneider raised the point of order that SA 1 to SSA 2 for SA 1 is out of order in that it goes beyond the scope of the subject matter of SSA 2 for SA 1.

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

At the request of Senator Jacob, SB 318, with SCS, SS for SCS, SA 1 and SSA 2 for SA 1 (pending), was placed on the Informal Calendar.

REPORTS OF STANDING COMMITTEES

Senator Caskey, Chairman of the Committee on Civil and Criminal Jurisprudence, submitted the following report:

Mr. President: Your Committee on Civil and Criminal Jurisprudence, to which was referred SB 275, begs leave to report that it has considered the same and recommends that the Senate Committee Substitute, hereto attached, do pass and be placed on the Consent Calendar.

Senator Clay, Chairman of the Committee on Financial and Governmental Organization, submitted the following report:

Mr. President: Your Committee on Financial and Governmental Organization, to which was referred SB 175, begs leave to report that it has considered the same and recommends that the Senate Committee Substitute, hereto attached, do pass and be placed on the Consent Calendar.

REFERRALS

President Pro Tem Quick referred SCR 15 to the Committee on Rules, Joint Rules and Resolutions.

President Pro Tem Quick referred SB 4 to the Committee on State Budget Control.

HOUSE BILLS ON SECOND READING

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

HCS for HB 14--Appropriations.

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 taken up and adopted HCR 4.

HOUSE CONCURRENT RESOLUTION NO. 4



WHEREAS, section 33.155, RSMo, allows the commissioner of administration and the state treasurer to establish an electronic funds transfer system to allows state employees' compensation to be transferred directly into employees' accounts in financial institutions; and

WHEREAS, some state employees do not have an account established at a financial institution; and

WHEREAS, certain state agencies are requiring employees in the agency to authorize the direct electronic transfer of the employees' compensation into an account at a financial institution; and

WHEREAS, such requirement creates an undue hardship on such employees:

NOW, THEREFORE, BE IT RESOLVED that the members of the Missouri House of Representatives of the Ninetieth General Assembly, First Regular Session, the Senate concurring therein, hereby direct the commissioner of administration and the state treasurer to establish in the standards and procedures for administering an electronic funds transfer pursuant to section 33.155, RSMo, a requirement for all state agencies to allow state employees earning less than one thousand five hundred dollars per month to have the option to either receive their monthly compensation in the form of a bank draft made payable to the employee or to have such monthly compensation transferred directly into the employee's account at a financial institution; and

BE IT FURTHER RESOLVED that the Chief Clerk of the Missouri House of Representatives be instructed to prepare properly inscribed copies of this resolution for the commissioner of administration and the state treasurer.

In which the concurrence of the Senate is respectfully requested.

Also,

Mr. President: I am instructed by the House of Representatives to inform the Senate that the House has taken up and adopted HCR 9.

HOUSE CONCURRENT RESOLUTION NO. 9

WHEREAS, the current financial crises in Asia, Russia and other regions have involved massive depreciation in the currencies of several key steel-producing and steel-consuming countries and a collapse in the domestic demand for steel in those countries; and

WHEREAS, these crises have generated and will continue to generate surges in United States imports of steel, both from the countries whose currencies have depreciated in the crisis and from steel-producing countries that are no longer able to export steel to the countries in economic crisis; and

WHEREAS, foreign government trade restrictions and private restraints of trade distort international trade and investment patterns and result in burdens on United States commerce, including absorption of a disproportionate share of diverted steel trade, which ultimately has a detrimental effect on this state's economy; and

WHEREAS, there is a well-recognized need for improvements in the enforcement of United States trade laws to provide an effective response to these situations:

NOW, THEREFORE, BE IT RESOLVED that the members of the Missouri House of Representatives of the Ninetieth General Assembly, First Regular Session, the Senate concurring therein, hereby request the President of the United States to commence an immediate study to determine the entry into the customs territory of the United States of all steel products that are the products of, or are manufactured in, Australia, China, South Africa, Ukraine, Indonesia, India, Japan, Russia, South Korea or Brazil, to determine whether the governments of those countries are abiding by the spirit and letter of international trade agreements with respect to imports of steel products into the United States, and take all actions necessary to enforce applicable trade agreements and laws of the United States pertaining to steel imports; and

BE IT FURTHER RESOLVED that we, the members of the Missouri Ninetieth General Assembly, First Regular Session, request the President of the United States to immediately impose a one-year ban on imports of all steel products that are the product of, or are manufactured in, Australia, China, South Africa, Ukraine, Indonesia, India, Japan, Russia, South Korea or Brazil, if the President finds that the governments of those countries are not abiding by the spirit and letter of international trade agreements with respect to imports of steel products in the United States; and

BE IT FURTHER RESOLVED that we, the members of the Missouri Ninetieth General Assembly, First Regular Session, request the President of the United States to establish a task force within the executive branch to closely monitor imports of steel products to the United States from other countries to determine whether international trade agreements are being violated; and

BE IT FURTHER RESOLVED that the Chief Clerk of the Missouri House of Representatives be instructed to prepare properly inscribed copies of this resolution for the President of the United States and to the members of the Missouri Congressional delegation.

RESOLUTIONS

Senator Westfall offered Senate Resolution No. 245, regarding the death of Raymond Eugene Leek, Springfield, which was adopted.

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

RECESS

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

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

RESOLUTIONS

Senator Mathewson offered Senate Resolution No. 248, regarding Issam B. Amary, Marshall, which was adopted.

Senator Flotron offered Senate Resolution No. 246, regarding Kevin P. Toben, St. Louis, which was adopted.

Senator Steelman offered Senate Resolution No. 247, regarding James E. Markham, Holts Summit, which was adopted.

THIRD READING OF SENATE BILLS

SB 90, with SCS, introduced by Senator Johnson, entitled:

An Act to repeal section 79.070, RSMo 1994, relating to fourth class cities, and to enact in lieu thereof one new section relating to the same subject.

Was called from the Consent Calendar and taken up.

SCS for SB 90, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 90

An Act to repeal section 79.070, RSMo 1994, relating to fourth class cities, and to enact in lieu thereof one new section relating to the same subject.

Was taken up.

Senator Johnson moved that SCS for SB 90 be adopted, which motion prevailed.

On motion of Senator Johnson, SCS for SB 90 was read the 3rd time and passed by the following vote:

YEAS--Senators
Banks Bland Caskey Childers
Clay DePasco Ehlmann Flotron
Goode House Howard Jacob
Johnson Kenney Kinder Klarich
Mathewson Maxwell Mueller Quick
Rohrbach Russell Schneider Scott
Sims Singleton Steelman Stoll
Westfall Wiggins Yeckel--31
NAYS--Senators--None
Absent--Senators
Bentley Graves Staples--3
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 Scott moved that motion lay on the table, which motion prevailed.

Senator Scott moved that SB 10 be called from the Consent Calendar and again taken up for 3rd reading and final passage, which motion prevailed.

On motion of Senator Scott, SB 10 was read the 3rd time and passed by the following vote:

YEAS--Senators
Banks Bland Caskey Childers
Clay DePasco Ehlmann Flotron
Graves House Howard Jacob
Johnson Kenney Kinder Klarich
Mathewson Mueller Quick Rohrbach
Russell Schneider Scott Sims
Singleton Steelman Stoll Westfall
Wiggins Yeckel--30
NAYS--Senators
Goode Maxwell--2
Absent--Senators
Bentley Staples--2
Absent with leave--Senators--None

The President Pro Tem declared the bill passed.

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

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

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

SB 51, with SCS, introduced by Senator Westfall, entitled:

An Act to amend chapter 301, RSMo, by adding thereto one new section relating to motor vehicle license plates.

Was called from the Consent Calendar and taken up.

SCS for SB 51, entitled:

SENATE COMMITTEE SUBSTITUTE FOR

SENATE BILL NO. 51

An Act to amend chapter 301, RSMo, by adding thereto one new section relating to motor vehicle license plates.

Was taken up.

Senator Westfall moved that SCS for SB 51 be adopted, which motion prevailed.

On motion of Senator Westfall, SCS for SB 51 was read the 3rd time and passed by the following vote:

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

The President Pro Tem declared the bill passed.

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

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

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

SB 115, introduced by Senator Russell, entitled:

An Act to repeal section 301.441, RSMo Supp. 1998, relating to licensing of motor vehicles, and to enact in lieu thereof one new section relating to the same subject.

Was called from the Consent Calendar and taken up.

On motion of Senator Russell, SB 115 was read the 3rd time and passed by the following vote:

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

The President Pro Tem declared the bill passed.

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

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

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

INTRODUCTION OF BILLS

The following Bills were read the 1st time and 1,000 copies ordered printed:

SB 455-By Stoll, DePasco and Quick.

An Act to repeal sections 116.160, 116.170, 116.175 and 116.190, RSMo Supp. 1998, and to enact in lieu thereof five new sections relating to the powers of the general assembly.

SB 456-By Klarich.

An Act to repeal section 362.077, RSMo Supp. 1998, relating to bank charters, and to enact in lieu thereof one new section relating to the same subject, with an emergency clause.

REPORTS OF STANDING COMMITTEES

Senator Howard, Chairman of the Committee on Aging, Families and Mental Health, submitted the following report:

Mr. President: Your Committee on Aging, Families and Mental Health, to which was referred SB 329, begs leave to report that it has considered the same and recommends that the bill do pass and be placed on the Consent Calendar.

Senator Johnson, Chairman of the Committee on Agriculture, Conservation, Parks and Tourism, submitted the following reports:

Mr. President: Your Committee on Agriculture, Conservation, Parks and Tourism, to which was referred SB 310, begs leave to report that it has considered the same and recommends that the bill do pass and be placed on the Consent Calendar.

Also,

Mr. President: Your Committee on Agriculture, Conservation, Parks and Tourism, to which was referred SB 357, begs leave to report that it has considered the same and recommends that the bill do pass, with Senate Committee Amendment No. 1, and be placed on the Consent Calendar.

SENATE COMMITTEE AMENDMENT NO. 1

Amend Senate Bill No. 357, Page 1, Section 1, Line 2, by striking the word "Weiss" and inserting in lieu thereof the following: "Weis"; and further amend said section, line 8, by striking "Weiss" and inserting in lieu thereof the following: "Weis".

Senator Stoll, Chairman of the Committee on Elections, Veterans' Affairs and Corrections, submitted the following report:

Mr. President: Your Committee on Elections, Veterans' Affairs and Corrections, to which was referred SB 158, begs leave to report that it has considered the same and recommends that the bill do pass and be placed on the Consent Calendar.

SENATE BILLS FOR PERFECTION

Senator Jacob moved that SB 318, with SCS, SS for SCS, SA 1 and SSA 2 for SA 1 (pending), be called from the Informal Calendar and again taken up for perfection, which motion prevailed.

SSA 2 for SA 1 was again taken up.

At the request of Senator Kenney, the above substitute amendment was withdrawn.

Senator Kenney offered SSA 3 for SA 1:

SENATE SUBSTITUTE AMENDMENT NO. 3 FOR

SENATE AMENDMENT NO. 1

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 4, Section 147.010, Line 4, by inserting immediately before said line the following:

"143.171. 1. For all tax years beginning before January 1, 1994, for an individual taxpayer and for all tax years beginning before September 1, 1993, for a corporate taxpayer, the taxpayer shall be allowed a deduction for his federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils).

2.  For all tax years beginning on or after January 1, 1994, but before December 31, 1998, an individual taxpayer shall be allowed a deduction for his federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed, not to exceed five thousand dollars on a single taxpayer's return or ten thousand dollars on a combined return, after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils). For all tax years beginning on or after January 1, 1999, but before December 31, 1999, an individual taxpayer shall be allowed a deduction for his or her federal income tax liability under Chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed, not to exceed ten thousand dollars on a single taxpayer's return or twenty thousand dollars on a combined return, after reduction for all credits thereon, except as specified in this subsection. For all tax years beginning on or after January 1, 2000, but before December 31, 2000, an individual taxpayer shall be allowed a deduction for his or her federal income tax liability under Chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed, not to exceed twenty thousand dollars on a single taxpayer's return or forty thousand dollars on a combined return, after reduction for all credits thereon, except as specified in this subsection. For all tax years beginning on or after January 1, 2001, an individual taxpayer shall be allowed a full deduction for his or her federal income tax liability under Chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed, after reduction for all credits thereon, except as specified in this subsection.

3. For all tax years beginning on or after September 1, 1993, but before January 1, 1999, a corporate taxpayer shall be allowed a deduction for fifty percent of its federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels and lubricating oils). For all tax years beginning on or after January 1, 1999, but before January 1, 2000, a corporate taxpayer shall be allowed a deduction for sixty-seven percent of its federal income tax liability under Chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except as specified in this subsection. For all tax years beginning on or after January 1, 2000, but before January 1, 2001, a corporate taxpayer shall be allowed a deduction of eighty-three percent of its federal income tax liability under Chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except as specified in this subsection. For all tax years beginning on or after January 1, 2001, a corporate taxpayer shall be allowed a full deduction for its federal income tax liability under Chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except as specified in this subsection.

4. If a federal income tax liability for a tax year prior to the applicability of sections 143.011 to 143.996 for which he was not previously entitled to a Missouri deduction is later paid or accrued, he may deduct the federal tax in the later year to the extent it would have been deductible if paid or accrued in the prior year."; and

Further amend Page 7, Section 147.010, line 7, by inserting immediately thereafter the following:

"160.500. 1. Sections 160.500 to 160.538, sections 160.545 and 160.550, sections 161.099 and 161.610, RSMo, sections 162.203 and 162.1010, RSMo, section 163.023, RSMo, sections 166.275 and 166.300, RSMo, section 170.254, RSMo, section 173.750, RSMo, and sections 178.585 and 178.698, RSMo, may be cited as the "Outstanding Schools Act" and includes provisions relating to reduced class size, the A+ schools program, funding for parents as teachers and early childhood development, teacher training, the upgrading of vocational and technical education, measures to promote accountability and other provisions of those sections.

2. There is hereby established in the state treasury the "Outstanding Schools Trust Fund". The moneys in the fund shall be available to support only the provisions, reforms and programs referenced in subsection 1 of this section or otherwise contained in this act. The fund shall consist of moneys required by law to be credited to such fund and moneys appropriated annually by the general assembly. Notwithstanding the provisions of section 33.080, RSMo, to the contrary, moneys in the fund shall not be transferred to the credit of the general revenue fund at the end of the biennium. All yield, interest, income, increment or gain received from time deposit of moneys in the state treasury to the credit of the fund shall be credited by the state treasurer to the fund. Of all refunds made of taxes deposited into the fund, the appropriate percentage of any refund shall be paid from the fund or deducted from transfers to the fund.

3. The commissioner of administration shall estimate and furnish to the state treasurer the appropriate net increase in the amount of state tax revenues collected and any adjustments to previous estimates pursuant to this act from the following: the additional one and one-fourth percent tax on Missouri taxable income collected under subsection 2 of section 143.071, RSMo; and the reduction of the federal income tax deduction pursuant to [subsections 2 and 3] subsection 2 of section 143.171, RSMo, not including any change in tax collections resulting from any revision of the federal tax code made after January 1, 1993. For all tax years beginning on or after January 1, 1999, the commissioner of administration shall also include in such estimate an amount equal to three and one-eighth percent of the cumulative amount claimed by all corporate taxpayers as a deduction for federal income tax liability pursuant to section 143.171, RSMo. The treasurer shall transfer monthly from general revenue an amount equal to the estimate to the outstanding schools trust fund established in subsection 2 of this section."; and

Further amend the title and enacting clause accordingly.

Senator Kenney moved that the above substitute amendment be adopted.

Senator Schneider offered SA 1 to SSA 3 for SA 1:

SENATE AMENDMENT NO. 1 TO

SENATE SUBSTITUTE AMENDMENT NO. 3 FOR

SENATE AMENDMENT NO. 1

Amend Senate Substitute Amendment No. 3 for Senate Amendment No. 1 to Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 2, Section 143.171, Lines 37 and 38, by striking "for fifty percent of"; and amend line 40, by inserting after the word "filed" the words: "not to exceed ten thousand dollars"; and amend lines 45 to 58 on pages 2 and 3, by striking all of said lines; and amend page 3, lines 20 to 36, by striking the bold face type in said lines.

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

Senator Schneider closed on the amendment.

Senator Schneider requested unanimous consent to make technical changes in his amendment.

Senator Ehlmann raised the point of order that Senator Schneider had closed and therefore could not make any additional remarks.

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

Senator Schneider requested that the amendment be returned.

Senator Ehlmann raised the point of order that the request made by Senator Schneider is out of order as Senator Schneider was recognized to close and did so.

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

SA 1 to SSA 3 for SA 1 failed of adoption by the following vote:

YEAS--Senators
Banks Bland Caskey Clay
DePasco Goode Jacob Mathewson
Maxwell Quick Schneider Scott
Staples Stoll Wiggins--15
NAYS--Senators
Bentley Childers Ehlmann Flotron
Graves House Howard Johnson
Kenney Kinder Klarich Mueller
Rohrbach Russell Sims Singleton
Steelman Westfall Yeckel--19
Absent--Senators--None
Absent with leave--Senators--None

SSA 3 for SA 1 was again taken up.

Senator Klarich requested a roll call vote be taken on the adoption of SSA 3 for SA 1 and was joined in his request by Senators Childers, Kenney, Sims and Yeckel.

SSA 3 for SA 1 failed of adoption by the following vote:

YEAS--Senators
Bentley Childers Ehlmann Flotron
Graves Kenney Kinder Klarich
Mueller Rohrbach Russell Sims
Singleton Steelman Westfall Yeckel--16
NAYS--Senators
Banks Bland Caskey Clay
DePasco Goode House Howard
Jacob Johnson Mathewson Maxwell
Quick Schneider Scott Staples
Stoll Wiggins--18
Absent--Senators--None
Absent with leave--Senators--None

SA 1 was again taken up.

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

Senator Mathewson assumed the Chair.

Senator Klarich offered SA 2:

SENATE AMENDMENT NO. 2

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 5, Section 147.010, Lines 11-17 of said substitute, by striking all of said lines and inserting in lieu thereof the following: "state."; and

Further amend said bill, page 7, section 147.010, line 7 of said substitute, by inserting after all of said line the following:

"147.020. 1. For each taxable year beginning on or after January 1, 1980, but before January 1, 2000, every corporation liable to the tax prescribed in section 147.010 shall make a report in writing showing the financial condition of the corporation at the beginning of business on the first day of its taxable year to the secretary of state annually on or before the fifteenth day of the fourth month of the corporation's taxable year in such form as the secretary of state may prescribe. The report shall be signed by an officer of the corporation.

2. For each taxable year beginning on or after January 1, 1980, but before January 1, 2000, if a corporation shall obtain an extension of time for filing its annual Missouri income tax return pursuant to section 143.551, RSMo, such corporation will also be granted a corresponding extension of time for filing the report required under this chapter for its taxable year immediately succeeding the taxable year for which the income tax extension is granted. At the time the corporation files its annual corporate report, it shall inform the secretary of state in writing of such extension.

3. Every corporation having a transitional year liable for the tax prescribed in section 147.010 shall make a report in writing, showing the financial condition of the corporation at the beginning of business on the first day of its transitional year, on or before April 15, 1980, in such form as the director may prescribe. The report shall be signed by an officer of the corporation.

147.030. 1. For each taxable year beginning on or after January 1, 1980, but before January 1, 2000, the franchise tax provided for in this chapter shall be paid on or before the fifteenth day of the fourth month of the corporation's taxable year.

2. For each taxable year beginning on or after January 1, 1980, but before January 1, 2000, if a corporation shall obtain an extension of time for paying its annual Missouri income tax pursuant to section 143.551, RSMo, such corporation will also be granted a corresponding extension of time for paying the franchise tax due under this chapter for its taxable year immediately succeeding the taxable year for which the income tax extension is granted.

3. If the time for filing the franchise tax report is extended under section 147.020, but the time for payment of the franchise tax is not extended under this section, the corporation shall pay, on or before the fifteenth day of the fourth month of its taxable year, the amount properly estimated as its franchise tax for the taxable year.

4. Every corporation having a transitional year shall pay the franchise tax provided for in this chapter on or before the fifteenth day of April 1980.

147.050. 1. For each taxable year beginning on or after January 1, 1980, but before January 1, 2000, every corporation organized under any laws of this state and every foreign corporation engaged in business in this state and having no shares shall make a report in writing to the secretary of state, annually, on or before the fifteenth day of the fourth month of the corporation's taxable year, in the form as the secretary of state may prescribe.

2. The report shall be signed by an officer of the corporation, and forwarded to the secretary of state; provided, that all state, district, county, town and farmers' mutual companies now organized or that may be hereafter organized under any of the laws of this state, organized for the sole purpose of writing fire, lightning, windstorm, tornado, cyclone, hail and plate glass and mutual automobile insurance and for the purpose of paying any loss incurred by any member by assessment, shall not be required to make reports and shall be exempt from all the provisions of this section and chapter and shall not be required to pay any fees as in this chapter provided.

3. Every corporation having a transitional year and coming under the provisions of this section shall make the report required hereunder on or before the fifteenth day of April, 1980.

147.070. 1. Every corporation organized as a mutual insurance corporation not having shares, or any other corporation not organized strictly for religious, charitable or educational purposes and having no shares or of a company or association organized to transact business of life or accident insurance on the assessment plan for the purpose of mutual protection and benefit to its members and the payment of stipulated sums of money to the family, heirs, executors, administrators or assigns of the deceased member thereof shall in addition to filing the report prescribed in section 147.050 pay an annual fee of twenty-five dollars.

2. All foreign life, fire, accident, surety, liability, steam boiler, tornado, health, or other kind of insurance company of whatever nature coming within the provisions of section 147.050 and doing business in this state having outstanding shares with stated capital of less than five hundred thousand dollars shall pay an annual fee of fifty dollars, and all other such insurance companies having outstanding shares with stated capital of more than five hundred thousand dollars an annual fee of one hundred dollars for the privilege of doing business in this state, and all savings and loan associations and domestic and foreign regulated investment companies as defined by section 170 of the act of Congress commonly known as the "Revenue Act of 1942", as now existing or hereafter amended, to pay an annual fee to the state of twenty-five dollars for the privilege of doing business in this state in place of the fee based on the outstanding shares and surplus as herein provided.

3. For each taxable year beginning on or after January 1, 1980, but before January 1, 2000, any corporation coming under the provisions of this section shall pay the fee stipulated hereunder on or before the fifteenth day of the fourth month of the corporation's taxable year.

4. Every corporation having a transitional year and coming under the provisions of this section shall compute the fee due hereunder as provided in subsection 6 of section 147.010 and pay such fee on or before the fifteenth day of April 1980."; and

Further amend the title and enacting clause accordingly.

Senator Klarich moved that the above amendment be adopted and requested a roll call vote be taken. He was joined in his request by Senators Childers, Kinder, Mueller and Westfall.

SA 2 was adopted by the following vote:

YEAS--Senators
Banks Bentley Childers Ehlmann
Flotron Graves House Kenney
Kinder Klarich Mueller Russell
Scott Sims Singleton Westfall
Yeckel--17
NAYS--Senators
Bland Caskey Clay DePasco
Goode Howard Jacob Johnson
Mathewson Maxwell Quick Schneider
Staples Steelman Stoll Wiggins--16
Absent--Senator Rohrbach--1
Absent with leave--Senators--None

Senator Jacob offered SA 3, which was read:

SENATE AMENDMENT NO. 3

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 2, Section 143.113, Line 4 of said page, by striking the numeral "1999" and inserting in lieu thereof the numeral "2000".

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

Senator House offered SA 4:

SENATE AMENDMENT NO. 4

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 1, Section 143.111, Line 1, by inserting before all of said line the following:

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

(1) "Contribution", a donation of cash, stock, bonds or other marketable securities;

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

[(2)] (3) "State tax liability", in the case of a business taxpayer, any liability incurred by such taxpayer pursuant to the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions, and in the case of an individual taxpayer, any liability incurred by such taxpayer pursuant to the provisions of chapter 143, RSMo;

[(3)] (4) "Taxpayer", a 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 pursuant to the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo, or an individual subject to the state income tax imposed by the provisions of chapter 143, RSMo.

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

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

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

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

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

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

8. This section shall become effective January 1, [1998] 2000, and shall apply to all tax years after December 31, [1997] 1999.

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

(1) "Contribution", a donation of cash, stock, bonds or other marketable securities;

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

[(2)] (3) "State tax liability", in the case of a business taxpayer, any liability incurred by such taxpayer pursuant to the provisions of chapter 143, RSMo, chapter 147, RSMo, chapter 148, RSMo, and chapter 153, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo, and related provisions, and in the case of an individual taxpayer, any liability incurred by such taxpayer pursuant to the provisions of chapter 143, RSMo;

[(3)] (4) "Taxpayer", a 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 pursuant to the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo, or an individual subject to the state income tax imposed by the provisions of chapter 143, RSMo.

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

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

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

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

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

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

8. This section shall become effective January 1, [1998] 2000, and shall apply to all tax years after December 31, [1997] 1999."; and

Further amend the title and enacting clause accordingly.

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

President Wilson assumed the Chair.

PRIVILEGED MOTIONS

Having voted on the prevailing side, Senator House moved that the vote by which SA 2 was adopted be reconsidered, which motion prevailed by the following vote:

YEAS--Senators
Banks Bland Caskey Clay
DePasco Goode House Howard
Jacob Johnson Mathewson Maxwell
Quick Schneider Scott Staples
Stoll Wiggins--18
NAYS--Senators
Bentley Childers Ehlmann Flotron
Graves Kenney Kinder Klarich
Mueller Rohrbach Russell Sims
Singleton Steelman Westfall Yeckel--16
Absent--Senators--None
Absent with leave--Senators--None

SA 2 was again taken up.

Senator Staples assumed the Chair.

Senator Johnson assumed the Chair.

Senator Klarich requested a roll call vote be taken on the adoption of SA 2 and was joined in his request by Senators Bentley, Ehlmann, Graves and Westfall.

President Wilson assumed the Chair.

SA 2 failed of adoption by the following vote:

YEAS--Senators
Bentley Childers Ehlmann Flotron
Graves Kenney Klarich Mueller
Rohrbach Russell Scott Sims
Singleton Steelman Westfall Yeckel--16
NAYS--Senators
Banks Bland Caskey Clay
DePasco Goode House Howard
Jacob Johnson Mathewson Maxwell
Quick Schneider Staples Stoll
Wiggins--17
Absent--Senator Kinder--1
Absent with leave--Senators--None

Senator Flotron offered SA 5:

SENATE AMENDMENT NO. 5

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 1, Section 143.111, Line 1, by inserting immediately before said line the following:

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

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

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

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

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

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

(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

(c) [Except] Where a reasonable, but unsuccessful, effort has been made to place the child with appropriate adoptive parents, except when 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 a special needs child on or after January 1, 1988, and before January 1, 2000, 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 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. Any person residing in this state who proceeds in good faith with the adoption of a special needs child on or after January 1, 2000, shall be eligible to receive a tax credit of up to ten thousand dollars for nonrecurring adoption expenses for each child that may be applied to taxes due under chapter 143, RSMo. Any business entity providing funds to an employee to enable that employee to 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 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.

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

4. Notwithstanding any provision of law to the contrary, any individual or business entity may assign, transfer or sell tax credits allowed in this section. Any sale of tax credits claimed pursuant to this section to a for profit entity shall be at a discount rate of seventy-five percent or greater of the amount sold.

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, transferred or sold as allowed in section 135.327 may be assigned, transferred or sold in their entirety notwithstanding the taxpayer's tax due."; and

Further amend the title and enacting clause accordingly.

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

Senator Childers offered SA 6:

SENATE AMENDMENT NO. 6

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 2, Section 143.113, Line 22, by inserting the following language after the period on said line:

"143.124. 1. Other provisions of law to the contrary notwithstanding, the total amount of all annuities, pensions, or retirement allowances above the amount of six thousand dollars annually provided by any law of this state, the United States, or any other state to any person except as provided in subsection 4 of this section, shall be subject to tax pursuant to the provisions of this chapter, in the same manner, to the same extent and under the same conditions as any other taxable income received by the person receiving it. For purposes of this section, annuity, pension, or retirement allowance shall be defined as an annuity, pension or retirement allowance provided by the United States, this state, any other state or any political subdivision or agency or institution of this or any other state. For all tax years beginning on or after January 1, 1998, for purposes of this section, annuity, pension or retirement allowance shall be defined to include self-employed retirement plans, also known as Keogh plans, annuities from a defined pension plan and individual retirement arrangements, also known as IRAs, as described in the Internal Revenue Code, as well as an annuity, pension or retirement allowance provided by the United States, this state, any other state or any political subdivision or agency or institution of this or any other state.

2. For the period beginning July 1, 1989, and ending December 31, 1989, there shall be subtracted from Missouri adjusted gross income for that period, determined pursuant to section 143.121, the first three thousand dollars of retirement benefits received by each taxpayer:

(1) If the taxpayer's filing status is single, head of household or qualifying widow(er) and the taxpayer's Missouri adjusted gross income is less than twelve thousand five hundred dollars; or

(2) If the taxpayer's filing status is married filing combined and their combined Missouri adjusted gross income is less than sixteen thousand dollars; or

(3) If the taxpayer's filing status is married filing separately and the taxpayer's Missouri adjusted gross income is less than eight thousand dollars.

3. For the tax years beginning on or after January 1, 1990, there shall be subtracted from Missouri adjusted gross income, determined pursuant to section 143.121, the first six thousand dollars of retirement benefits received by each taxpayer from sources other than privately funded sources, and for tax years beginning on or after January 1, 1998, there shall be subtracted from Missouri adjusted gross income, determined pursuant to section 143.121, the first one thousand dollars of any retirement allowance received from any privately funded source for tax years beginning on or after January 1, 1998, but before January 1, 1999, and the first three thousand dollars of any retirement allowance received from any privately funded source for tax years beginning on or after January 1, 1999, but before January 1, 2000, and the first four thousand dollars of any retirement allowance received from any privately funded source for tax years beginning on or after January 1, 2000, but before January 1, 2001, and the first five thousand dollars of any retirement allowance received from any privately funded source for tax years beginning on or after January 1, 2001, but before January 1, 2002, and the first six thousand dollars of any retirement allowance received from any privately funded sources for tax years beginning on or after January 1, 2002:

(1) If the taxpayer's filing status is single, head of household or qualifying widow(er) and the taxpayer's Missouri adjusted gross income is less than [twenty-five] thirty-two thousand dollars; or

(2) If the taxpayer's filing status is married filing combined and their combined Missouri adjusted gross income is less than [thirty-two] forty thousand dollars; or

(3) If the taxpayer's filing status is married filing separately and the taxpayer's Missouri adjusted gross income is less than [sixteen] twenty thousand dollars.

4. To determine the maximum Missouri adjusted gross income limits referenced in this section, any Social Security benefits included in Missouri adjusted gross income shall be subtracted. But Social Security benefits shall not be subtracted for purposes of other computations pursuant to this chapter, and are not to be considered as retirement benefits for purposes of this section.

5. The provisions of subdivisions (1) and (2) of subsection 3 of this section shall apply during all tax years in which the federal Internal Revenue Code provides exemption levels for calculation of the taxability of Social Security benefits that are the same as the levels in subdivisions (1) and (2) of subsection 3 of this section. If the exemption levels for the calculation of the taxability of Social Security benefits are adjusted by applicable federal law or regulation, the exemption levels in subdivisions (1) and (2) of subsection 3 of this section shall be accordingly adjusted to the same exemption levels.

6. The portion of a taxpayer's lump sum distribution from an annuity or other retirement plan not otherwise included in Missouri adjusted gross income as calculated pursuant to this chapter, but subject to taxation under Internal Revenue Code section 402 shall be taxed in an amount equal to ten percent of the taxpayer's federal liability on such distribution for the same tax year.

7. The exemptions provided for in this section shall not affect the calculation of the income to be used to determine the property tax credit provided in sections 135.010 to 135.035, RSMo.

Section B. The repeal and reenactment of section 143.124 shall become effective on January 1, 2000, and shall apply to all taxable years beginning on or after January 1, 2000."; and

Further amend the title and enacting clause accordingly.

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

SA 6 failed of adoption by the following vote:

YEAS--Senators
Bentley Childers Ehlmann Flotron
Graves Kenney Kinder Klarich
Mueller Rohrbach Russell Sims
Singleton Steelman Westfall Yeckel--16
NAYS--Senators
Banks Bland Caskey Clay
DePasco Goode House Howard
Jacob Johnson Mathewson Maxwell
Quick Schneider Scott Staples
Stoll Wiggins--18
Absent--Senators--None
Absent with leave--Senators--None

At the request of Senator DePasco, the Senate stood at ease for 15 minutes.

Senator Rohrbach offered SA 7:

SENATE AMENDMENT NO. 7

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 7, Section 147.010, Line 7 of said page, by adding at the end of said line the following:

"306.016. 1. By January 1, 1995, the owner of any vessel documented by the United States Coast Guard on August 28, 1994, and the new owner of any vessel purchased after August 28, 1994, who upon the sale or transfer of the vessel desires to document the vessel with the United States Coast Guard, shall apply for a vessel certificate of registration and pay a certification fee of seven dollars and fifty cents, an initial registration fee in an amount equal to the amount required for a certificate of number under section 306.030 and all applicable state and local [or in lieu watercraft] taxes as provided by law in effect on the date the vessel was documented or submit proof that all applicable registration fees have been paid to the department of revenue and all applicable taxes [or in lieu watercraft] taxes have been paid in this or another state. Such application shall include the county in which such vessel will be normally maintained by the new owner. A certificate of registration and a set of registration decals in a form the director shall prescribe shall be issued for a documented vessel. A Missouri resident shall make application for a vessel certificate of registration within thirty days of acquiring or bringing the vessel into this state. A nonresident shall make application for a vessel certificate of registration within sixty days after acquiring a vessel in this state or bringing a vessel into this state if the vessel will be kept in this state for a period in excess of sixty consecutive days. A delinquency penalty fee of ten dollars shall be imposed for each thirty days of delinquency, not to exceed a total of thirty dollars. If the director of revenue learns that any person has failed to make application for a vessel certificate of registration in accordance with this section or has sold a vessel documented by the United States Coast Guard without obtaining a certificate of registration as provided in this section, the director shall cancel the registration of all vessels and outboard motors registered in the name of the person, either as sole owner or a coowner, and shall notify the person that the cancellation will remain in force until the person pays the delinquency penalty fee together with all fees, charges, and payments which the person should have paid in connection with the vessel certificate of registration.

[2. A boat or vessel documented by the United States Coast Guard or other agency of the federal government and operated on the waters of this state shall not be liable for the payment of any state or local sales or use tax on the purchase, but shall be liable for the payment of an in lieu watercraft tax, which is hereby imposed. The in lieu watercraft tax shall be collected by the director of revenue and deposited in the state treasury to the credit of general revenue and shall be appropriated for use by the Missouri state water patrol. Watercraft dealers in this state shall report to the director of revenue on forms furnished by the director the sale of each watercraft sold to a resident of this state. If the watercraft is registered and licensed pursuant to the provisions of this chapter and all applicable sales taxes have been paid, the director shall not collect the in lieu tax imposed by this subsection. If the watercraft is registered with the United States Coast Guard or other agency of the federal government and not under the provisions of this chapter the director shall bill the purchaser of the watercraft for the in lieu tax imposed by this subsection. Any person who fails to pay the in lieu tax due under this section, within thirty days after receipt of the bill from the director of revenue, shall be liable to the same penalties imposed by law for failure to pay sales and use taxes due the state. The in lieu tax shall be determined as follows:

PURCHASE PRICE OF

WATERCRAFT TAX DUE

$50,000 or less $ 650.00

$50,001 to $100,000 1,250.00

$100,001 to $150,000 1,850.00

$150,001 to $200,000 2,450.00

$200,001 and above 3,050.00

3.] 2. The registration decals for any vessel documented by the United States Coast Guard shall be in force and effect for a period of three years so long as the vessel is owned or held by the original holder of the certificate of registration and shall be renewed upon application and payment of a registration renewal fee equal to the amount required for a certificate of number under section 306.030. The owner shall attach the registration decals to both sides of the forward half of the bow of the documented vessel in a place that is fully visible.

[4.] 3. The department of revenue may issue a temporary vessel certificate of registration authorizing the operation of a vessel to be documented by the United States Coast Guard for not more than sixty days. The temporary registration shall be made available by the department of revenue and may be purchased from the department of revenue or from a dealer upon proof of purchase of a vessel. The department shall make temporary certificates of registration available to registered dealers in this state in sets of ten. The fee for the temporary certificates of registration shall be five dollars each. No dealer shall charge more than five dollars for each temporary certificate of registration issued. The temporary registration shall be valid for a period of sixty days from the date of issuance by the department of revenue to the purchaser of the vessel or from the date of sale of the vessel by a dealer from which the purchaser obtains a certificate of registration. The temporary certificate of registration shall be issued on a form prescribed by the department of revenue and issued only for the purchaser's use in the operation of the vessel purchased to enable the purchaser to legally operate the vessel while a certificate of registration is being obtained, and shall be displayed on no other vessel. Temporary certificates of registration issued under this section shall not be transferable or renewable and shall not be valid upon issuance of a proper certificate of registration. The dealer or authorized agent shall insert the date of issuance and expiration date, year, make and the manufacturer's identification number of the vessel on the temporary registration when issued to the purchaser. The dealer shall complete the information on the temporary registration in full. Every dealer that issues a temporary certificate of registration shall keep, for inspection by authorized officers, a correct record of each temporary certificate of registration issued by the dealer by recording the registration number, purchaser's name and address, year, make and manufacturer's identification number of the vessel on which the temporary certificate of registration is to be used and the date of issuance.

[5.] 4. Upon the sale or transfer of any vessel documented by the United States Coast Guard for which a certificate of registration has been issued, the registration shall be terminated. If the new owner elects to have the vessel documented by the United States Coast Guard, the new owner shall submit, in addition to the properly assigned certificate of registration, proof of release from the documentation provided by the United States Coast Guard and shall comply with the provisions of this section. If the new owner elects not to document the vessel with the United States Coast Guard, the owner shall comply with the applicable provisions of this chapter.

[6.] 5. The certificate of registration shall be available at all times for inspection on the vessel for which it is issued, whenever the vessel is in operation."; and

Further amend the titling and enacting clauses accordingly.

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

SA 7 failed of adoption by the following vote:

YEAS--Senators
Bentley Childers Flotron Goode
Graves Rohrbach Russell Schneider
Singleton Westfall--10
NAYS--Senators
Banks Bland Caskey Clay
DePasco Ehlmann House Howard
Jacob Johnson Kenney Kinder
Klarich Mathewson Maxwell Mueller
Quick Scott Sims Staples
Steelman Stoll Wiggins Yeckel--24
Absent--Senators--None
Absent with leave--Senators--None

Senator Graves offered SA 8:

SENATE AMENDMENT NO. 8

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 1, Section 143.111, Line 1, by inserting immediately before said line the following:

"137.100. The following subjects are exempt from taxation for state, county or local purposes:

(1) Lands and other property belonging to this state;

(2) Lands and other property belonging to any city, county or other political subdivision in this state, including market houses, town halls and other public structures, with their furniture and equipments, and on public squares and lots kept open for health, use or ornament;

(3) Nonprofit cemeteries;

(4) The real estate and tangible personal property which is used exclusively for agricultural or horticultural societies organized in this state, including not-for-profit agri-business associations;

(5) All property, real and personal, actually and regularly used exclusively for religious worship, for schools and colleges, or for purposes purely charitable and not held for private or corporate profit, except that the exemption herein granted does not include real property not actually used or occupied for the purpose of the organization but held or used as investment even though the income or rentals received therefrom is used wholly for religious, educational or charitable purposes;

(6) Household goods, furniture, wearing apparel and articles of personal use and adornment, as defined by the state tax commission, owned and used by a person in his home or dwelling place."; and

Further amend the title and enacting clause accordingly.

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

Senator Klarich offered SA 9:

SENATE AMENDMENT NO. 9

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 1, Section 143.111, Line 1, by inserting immediately before said line the following:

"137.102. 1. This act shall be known and may be cited as "The Missouri Homestead Preservation Act".

2. Notwithstanding any other provision of law to the contrary, the assessed value of residential property, excluding any value added by new construction or improvements, owned by any person who is under the age of sixty-five years and using the property as a homestead, or owned by any person who is sixty-five years of age or older who has resided on such property for a period of less than five years, shall not increase during any two-year reassessment period by more than the consumer price index or five percent, whichever is less.

3. The assessed value of residential property, excluding any value added by new construction or improvements, owned by any person who is sixty-five years of age or older and who has used that property as a homestead for a period of five years or longer shall not increase during the period of time that person resides on that property after attaining the age of sixty-five years. Any homestead property taken or condemned through judicial proceeding by the United States, or by any political subdivision of the state of Missouri shall exempt the owner of said homestead property under this subsection from the five-year residency eligibility requirement. Age and years of residence for purposes of this section shall be determined as of January 1 of each odd-numbered year; provided, however, that such information shall be provided by affidavit of the owner of homestead property by such date to the county assessor.

4. All revenue losses of any political subdivision resulting from the limitation on assessed valuations contained in this section shall be reimbursed to those political subdivisions by the state of Missouri through appropriations. Data substantiating revenue losses resulting from the limitation on assessed valuations as contained in this section shall be provided to the state auditor in such form as shall be prescribed by the state auditor by rule promulgated pursuant to chapter 536, RSMo. The required data shall be submitted for each political subdivision levying a property tax and shall be submitted by either the county or the individual taxing authority as requested by the state auditor. Calculation or verification of the revenue loss shall be determined by the state auditor subsequent to the annual property tax rate review completed pursuant to section 137.073. All data and documents substantiating the revenue loss for each political subdivision shall be copied to each county clerk respectively and shall be retained and made available for public inspection by the county for a minimum of three years. Whenever a taxpayer in a taxing jurisdiction has cause to believe that the taxing jurisdiction has not complied with the provisions of this section, the taxpayer shall have legal standing to bring a civil action to determine and require compliance with this section."; and

Further amend said bill, page 7, section 147.010, line 7, by inserting after said line the following:

"Section B. Section 137.102 shall become effective January 1, 2000, and shall apply to all tax years beginning on or after January 1, 2000."; and

Further amend the title and enacting clause accordingly.

Senator Klarich moved that the above amendment be adopted.

Senator Jacob raised the point of order that SA 9 is out of order in that the amendment exceeds the scope of the bill and is not germane.

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

Senator Klarich raised the point of order that SS for SCS for SB 318 is out of order as it exceeds the scope of the original bill.

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

Senator Singleton offered SA 10:

SENATE AMENDMENT NO. 10

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 2, Section 143.113, Line 22, by inserting immediately after all of said line the following:

"143.131. 1. The Missouri standard deduction may be deducted in determining Missouri taxable income of a resident individual unless the taxpayer or his spouse has elected to itemize his deduction as provided in section 143.141.

2. The Missouri standard deduction shall be the allowable federal standard deduction, increased for all taxable years beginning on or after January 1, 2001, to the extent not otherwise deductible by the taxes for the same taxable year for which the return is being filed that are imposed by section 3101 of the Internal Revenue Code, relating to the tax on employees under the Federal Insurance Contributions Act, by sections 3201 and 3211, relating to the taxes on railroad employees and railroad employee representatives under the Railroad Retirement Act, and by section 1401, relating to tax on self-employment income, to the extent that such taxes were not deducted in the computation of the taxpayer's federal adjusted gross income under the Internal Revenue Code of 1986, as amended."; and

Further amend the title and enacting clause accordingly.

Senator Singleton moved that the above amendment be adopted and requested a roll call vote be taken. He was joined in his request by Senators Childers, Johnson, Kinder and Mueller.

SA 10 failed of adoption by the following vote:

YEAS--Senators
Bentley Childers Ehlmann Flotron
Graves Kenney Kinder Klarich
Mueller Rohrbach Russell Sims
Singleton Steelman Westfall Yeckel--16
NAYS--Senators
Banks Bland Caskey Clay
DePasco Goode House Howard
Jacob Johnson Mathewson Maxwell
Quick Schneider Scott Staples
Stoll Wiggins--18
Absent--Senators--None
Absent with leave--Senators--None

Senator Sims offered SA 11:

SENATE AMENDMENT NO. 11

Amend Senate Substitute for Senate Committee Substitute for Senate Bill No. 318, Page 4, Section 143.161, Line 3 of said page, by inserting after all of said line the following:

"143.171. 1. For all tax years beginning before January 1, 1994, for an individual taxpayer and for all tax years beginning before September 1, 1993, and on or after January 1, 2000, for a corporate taxpayer, the taxpayer shall be allowed a deduction for his federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils).

2. For all tax years beginning on or after January 1, 1994, an individual taxpayer shall be allowed a deduction for his federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed, not to exceed five thousand dollars on a single taxpayer's return or ten thousand dollars on a combined return, after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels, and lubricating oils).

3. For all tax years beginning on or after September 1, 1993, but before January 1, 2000, a corporate taxpayer shall be allowed a deduction for fifty percent of its federal income tax liability under chapter 1 of the Internal Revenue Code for the same taxable year for which the Missouri return is being filed after reduction for all credits thereon, except the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credits allowed by the Internal Revenue Code by section 31 (tax withheld on wages), section 27 (tax of foreign country and United States possessions), and section 34 (tax on certain uses of gasoline, special fuels and lubricating oils).

4. If a federal income tax liability for a tax year prior to the applicability of sections 143.011 to 143.996 for which he was not previously entitled to a Missouri deduction is later paid or accrued, he may deduct the federal tax in the later year to the extent it would have been deductible if paid or accrued in the prior year."; and

Further amend the title and enacting clause accordingly.

Senator Sims moved that the above amendment be adopted and requested a roll call vote be taken. She was joined in her request by Senators Kenney, Russell, Singleton and Yeckel.

SA 11 failed of adoption by the following vote:

YEAS--Senators
Bentley Childers Ehlmann Flotron
Graves Kenney Kinder Klarich
Mueller Rohrbach Russell Sims
Singleton Westfall Yeckel--15
NAYS--Senators
Banks Bland Caskey Clay
DePasco Goode House Howard
Jacob Johnson Mathewson Maxwell
Quick Schneider Scott Staples
Steelman Stoll Wiggins--19
Absent--Senators--None
Absent with leave--Senators--None

At the request of Senator Jacob, SB 318, with SCS and SS for SCS, as amended (pending), was placed on the Informal Calendar.

REPORTS OF STANDING COMMITTEES

Senator Mathewson, Chairman of the Committee on Local Government and Economic Development, submitted the following report:

Mr. President: Your Committee on Local Government and Economic Development, to which was referred SB 401, begs leave to report that it has considered the same and recommends that the bill do pass and be placed on the Consent Calendar.

Senator Banks, Chairman of the Committee on Public Health and Welfare, submitted the following report:

Mr. President: Your Committee on Public Health and Welfare, to which was referred SB 276, begs leave to report that it has considered the same and recommends that the bill do pass, with Senate Committee Amendment No. 1, and be placed on the Consent Calendar.

SENATE COMMITTEE AMENDMENT NO. 1

Amend Senate Bill No. 276, Page 4, Section 360.015, Line 96, by striking the opening bracket "["; and further amend by inserting an opening bracket "[" immediately before the word "in".

INTRODUCTIONS OF GUESTS

Senator Bentley introduced to the Senate, Steve Cox and Don Cotter, Springfield.

Senator Mueller introduced to the Senate, the Physician of the Day, Dr. Garry Johnson, Des Peres.

Senator Rohrbach introduced to the Senate, Mrs. Gwen Thompson and fourth grade students from South Elementary School, Jefferson City; and Michael Marcum, Will Spencer, Elise Hasty and Endya Corbin were made honorary pages.

Senator Russell introduced to the Senate, his son-in-law, Jim Montgomery, and Grant Marsh, Springfield.

Senator Russell introduced to the Senate, Randy Walters and David Lawson, Waynesville.

Senator Steelman introduced to the Senate, Correne Davis, Megan Moore and Tasha Brownlee, Rolla; and Judy Cavender, St. James.



Senator Flotron introduced to the Senate, ninety fourth grade students from Bridgeway Elementary School, Bridgeton; and Robyn Odegard, Collin Galster, Marshall Branco and Greg Cummings were made honorary pages.

Senator Yeckel introduced to the Senate, Girl Scout Troop 36 from St. Catherine LaBourne School, St. Louis; and Brittny Beckerle, Mary Kate Hogan, Megan Batsch and Vanessa Kamp were made honorary pages.

Senator Singleton introduced to the Senate, Derik Campbell and Debbie Scoeberl, Joplin.

Senator Schneider introduced to the Senate, Kenneth Thomas, Ferguson.

Senator Bentley introduced to the Senate, Rosa Archibald, Springfield.

Senator Rohrbach introduced to the Senate, Brian King, St. Louis.

Senator Bentley introduced to the Senate, Nancy Brown, Springfield.

On motion of Senator DePasco, the Senate adjourned under the rules.