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JOURNAL OF THE HOUSE
Second Regular Session, 97th GENERAL ASSEMBLY
FIFTY-NINTH DAY, TUESDAY, APRIL 29, 2014
The House met pursuant to adjournment.
Speaker Jones in the Chair.
Prayer by Representative Sue Entlicher.
Let us pray.
Psalm 15 in the Message asks: God, who gets invited to dinner at
Your place? How do we get on Your guest list? Godsays: Walk
straight, act right, tell the truth, don't hurt your friend, don't
blame your neighbor, keep your word even whenit costs you, make an
honest living, and never take a bribe. If you live like this you'll
be invited.
So today Lord, we ask for Your presence in this House. Keep us
ever mindful God of Your love for us, Your protectionover us and
Your provision that sustains us. Help us God, to throw off our
shackles of destruction that destroy us, andGod give us a glorious
new song. Abide in us today to keep these words of the Psalmist
David foremost in our mindsas we do the work set before us.
In Your precious Son's name we pray, Amen.
The Pledge of Allegiance to the flag was recited.
The Speaker appointed the following to act as Honorary Pages for
the Day, to serve withoutcompensation: Caroline Burke, Brynn
Hollister, Christopher Mesfin, Evan Thomassen,Ruthie Underwood,
Makayla Voris, and Christian Heston.
The Journal of the fifty-eighth day was approved as printed.
HOUSE COURTESY RESOLUTIONS OFFERED AND ISSUED
House Resolution No. 2577 through House Resolution No. 2634
HOUSE CONCURRENT RESOLUTION
Representative Torpey, et al., offered House Concurrent
Resolution No. 52.
1332
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1333 Journal of the House
COMMITTEE REPORTS
Committee on Fiscal Review, Chairman Flanigan reporting:
Mr. Speaker: Your Committee on Fiscal Review, to which was
referred HCS SB 662, begsleave to report it has examined the same
and recommends that it Do Pass.
Mr. Speaker: Your Committee on Fiscal Review, to which was
referred SB 812, begs leaveto report it has examined the same and
recommends that it Do Pass.
THIRD READING OF SENATE BILLS
HCS SS SB 694, relating to unsecured loans of five hundred
dollars or less, was taken upby Representative Dugger.
On motion of Representative Dugger, HCS SS SB 694 was
adopted.
On motion of Representative Dugger, HCS SS SB 694 was read the
third time and passedby the following vote:
AYES: 112
Allen Anderson Austin Bahr Barnes
Bernskoetter Berry Brattin Brown Burlison
Cierpiot Colona Conway 10 Conway 104 Cookson
Cornejo Cox Crawford Cross Davis
Diehl Dohrman Dugger Elmer Engler
English Englund Entlicher Fitzpatrick Fitzwater
Flanigan Fraker Franklin Frederick Funderburk
Gannon Grisamore Guernsey Haahr Haefner
Hampton Hansen Harris Hicks Higdon
Hinson Hoskins Hough Houghton Hubbard
Jones 50 Justus Keeney Kelley 127 Koenig
Kolkmeyer Korman Kratky Lair Lant
Lauer Leara Lichtenegger Love Lynch
McCaherty McGaugh McKenna Messenger Miller
Molendorp Morris Muntzel Neely Neth
Nichols Otto Parkinson Pfautsch Phillips
Pike Redmon Reiboldt Remole Rhoads
Richardson Riddle Roorda Ross Rowden
Rowland Scharnhorst Schatz Schieffer Shull
Smith Solon Sommer Spencer Stream
Swan Swearingen Thomson Torpey Walker
White Wieland Wilson Wood Wright
Zerr Mr. Speaker
NOES: 039
Anders Black Burns Butler Curtis
Curtman Dunn Ellington Frame Gardner
Gosen Hurst Johnson Kelly 45 Kirkton
LaFaver Marshall McCann Beatty McDonald McManus
McNeil Meredith Mims Mitten Montecillo
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Fifty-ninth Day–Tuesday, April 29, 2014 1334
Moon Morgan Newman Norr Pace
Peters Pierson Pogue Rehder Rizzo
Runions Schieber Schupp Walton Gray
PRESENT: 000
ABSENT WITH LEAVE: 008
Carpenter Gatschenberger Hodges Hummel May
Mayfield Shumake Webber
VACANCIES: 003
Speaker Jones declared the bill passed.
SS SB 741, relating to financial transactions of gaming
establishments, was taken up byRepresentative Scharnhorst.
Speaker Pro Tem Hoskins assumed the Chair.
On motion of Representative Scharnhorst, SS SB 741 was truly
agreed to and finally passedby the following vote:
AYES: 125
Allen Anders Anderson Austin Barnes
Bernskoetter Berry Black Brown Burlison
Burns Butler Carpenter Cierpiot Colona
Conway 10 Conway 104 Cookson Cornejo Crawford
Cross Curtis Davis Diehl Dohrman
Dunn Engler English Englund Fitzpatrick
Fitzwater Flanigan Fraker Frame Franklin
Frederick Gannon Gardner Gosen Grisamore
Guernsey Haahr Haefner Hampton Hansen
Harris Hicks Higdon Hinson Hoskins
Houghton Hubbard Hummel Hurst Johnson
Jones 50 Keeney Kelley 127 Kelly 45 Koenig
Kolkmeyer Kratky LaFaver Lair Lant
Lauer Leara Lichtenegger Lynch Mayfield
McCaherty McCann Beatty McDonald McGaugh McKenna
McManus Meredith Messenger Miller Mims
Mitten Molendorp Montecillo Morgan Muntzel
Neely Neth Nichols Norr Pace
Parkinson Peters Pfautsch Phillips Pierson
Pike Redmon Rehder Reiboldt Rhoads
Richardson Riddle Rizzo Roorda Ross
Rowden Runions Scharnhorst Schieffer Schupp
Shull Smith Solon Sommer Spencer
Stream Swan Swearingen Torpey Walker
Walton Gray Wieland Wright Zerr Mr. Speaker
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1335 Journal of the House
NOES: 021
Bahr Brattin Cox Dugger Ellington
Entlicher Justus Kirkton Korman Love
Marshall McNeil Moon Newman Pogue
Remole Rowland Schatz Schieber Thomson
White
PRESENT: 000
ABSENT WITH LEAVE: 013
Curtman Elmer Funderburk Gatschenberger Hodges
Hough May Morris Otto Shumake
Webber Wilson Wood
VACANCIES: 003
Speaker Pro Tem Hoskins declared the bill passed.
PERFECTION OF HOUSE BILLS - APPROPRIATIONS
HCS HB 2020 was taken up by Representative Stream.
On motion of Representative Stream, HCS HB 2020 was adopted.
On motion of Representative Stream, HCS HB 2020 was ordered
perfected and printed.
PERFECTION OF HOUSE BILLS
HB 1157, relating to the privacy of student data, was taken up
by Representative Lair.
Representative Guernsey offered House Amendment No. 1.
House Amendment No. 1
AMEND House Bill No. 1157, Page 2, Section 161.108, Lines 44-47,
by deleting all of said lines and inserting in lieuthereof the
following:
"(6) Ensure that any contracts that govern databases,
assessments, or instructional supports whichinclude student or
redacted data and are outsourced to private vendors include express
provisions that safeguardprivacy and security, including but not
limited to provisions that prohibit private vendors from selling
studentdata or from using student data in furtherance of
advertising, and include penalties for noncompliance; and"; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
On motion of Representative Guernsey, House Amendment No. 1 was
adopted.
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Fifty-ninth Day–Tuesday, April 29, 2014 1336
Representative Cierpiot moved the previous question.
Which motion was adopted by the following vote:
AYES: 096
Allen Anderson Austin Bahr Barnes
Bernskoetter Berry Brattin Brown Burlison
Cierpiot Conway 104 Cookson Cornejo Cox
Crawford Cross Diehl Dohrman Dugger
Elmer Entlicher Fitzwater Flanigan Fraker
Franklin Frederick Gannon Gosen Guernsey
Haahr Haefner Hansen Hicks Higdon
Hinson Hoskins Hough Houghton Hurst
Johnson Justus Keeney Kelley 127 Koenig
Kolkmeyer Korman Lair Lant Lauer
Leara Lichtenegger Love Lynch McCaherty
McGaugh Messenger Miller Molendorp Moon
Morris Muntzel Neely Neth Parkinson
Pfautsch Phillips Pike Pogue Redmon
Rehder Reiboldt Remole Rhoads Riddle
Ross Rowden Rowland Scharnhorst Schatz
Schieber Shull Solon Sommer Spencer
Stream Swan Thomson Torpey Walker
White Wieland Wilson Wood Zerr
Mr. Speaker
NOES: 047
Anders Black Burns Butler Carpenter
Colona Conway 10 Curtis Dunn Ellington
Englund Frame Gardner Harris Hubbard
Hummel Kelly 45 Kirkton Kratky LaFaver
Mayfield McCann Beatty McDonald McKenna McManus
McNeil Meredith Mims Mitten Montecillo
Morgan Newman Nichols Norr Otto
Pace Peters Pierson Rizzo Roorda
Runions Schupp Smith Swearingen Walton Gray
Webber Wright
PRESENT: 000
ABSENT WITH LEAVE: 016
Curtman Davis Engler English Fitzpatrick
Funderburk Gatschenberger Grisamore Hampton Hodges
Jones 50 Marshall May Richardson Schieffer
Shumake
VACANCIES: 003
On motion of Representative Lair, HB 1157, as amended, was
ordered perfected andprinted.
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1337 Journal of the House
THIRD READING OF SENATE BILLS
SS SCS SB 510, relating to disqualification from unemployment
benefits, was taken up byRepresentative Cierpiot.
On motion of Representative Cierpiot, SS SCS SB 510 was truly
agreed to and finally passedby the following vote:
AYES: 107
Allen Anderson Austin Bahr Barnes
Bernskoetter Berry Brattin Brown Burlison
Cierpiot Conway 10 Conway 104 Cookson Cornejo
Cox Crawford Cross Curtman Davis
Diehl Dohrman Dugger Elmer Engler
Entlicher Fitzpatrick Fitzwater Flanigan Fraker
Franklin Frederick Funderburk Gannon Gosen
Guernsey Haahr Haefner Hampton Hansen
Hicks Higdon Hinson Hoskins Hough
Houghton Hurst Johnson Jones 50 Justus
Keeney Kelley 127 Kelly 45 Koenig Kolkmeyer
Korman Lair Lant Lauer Leara
Lichtenegger Love Lynch McCaherty McGaugh
Messenger Miller Molendorp Moon Morris
Muntzel Neely Neth Parkinson Pfautsch
Phillips Pike Pogue Redmon Rehder
Reiboldt Remole Rhoads Richardson Riddle
Ross Rowden Scharnhorst Schatz Schieber
Shull Solon Sommer Spencer Stream
Swan Thomson Torpey Walker Webber
White Wieland Wilson Wood Wright
Zerr Mr. Speaker
NOES: 045
Anders Black Burns Butler Carpenter
Colona Curtis Dunn Ellington English
Englund Frame Gardner Harris Hubbard
Hummel Kirkton Kratky LaFaver Marshall
Mayfield McCann Beatty McKenna McManus McNeil
Meredith Mims Mitten Montecillo Morgan
Newman Nichols Norr Otto Pace
Peters Pierson Rizzo Roorda Runions
Schieffer Schupp Smith Swearingen Walton Gray
PRESENT: 000
ABSENT WITH LEAVE: 007
Gatschenberger Grisamore Hodges May McDonald
Rowland Shumake
VACANCIES: 003
Speaker Pro Tem Hoskins declared the bill passed.
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Fifty-ninth Day–Tuesday, April 29, 2014 1338
SB 689, relating to the sale of intoxicating liquors in the
original package, was taken up byRepresentative Gosen.
On motion of Representative Gosen, SB 689 was truly agreed to
and finally passed by thefollowing vote:
AYES: 143
Allen Anders Anderson Austin Bahr
Barnes Bernskoetter Berry Black Brattin
Brown Burlison Butler Carpenter Cierpiot
Colona Conway 10 Conway 104 Cookson Cornejo
Cox Crawford Cross Curtis Curtman
Davis Diehl Dohrman Dunn Ellington
Elmer Engler English Englund Entlicher
Fitzpatrick Fitzwater Fraker Frame Franklin
Frederick Funderburk Gannon Gardner Gosen
Grisamore Guernsey Haahr Haefner Hampton
Hansen Harris Higdon Hinson Hoskins
Hough Houghton Hubbard Hummel Hurst
Johnson Jones 50 Justus Keeney Kelley 127
Kelly 45 Kirkton Koenig Kolkmeyer Korman
Kratky LaFaver Lair Lant Lauer
Leara Lichtenegger Love Lynch Marshall
Mayfield McCaherty McGaugh McKenna McManus
McNeil Meredith Messenger Miller Mims
Mitten Montecillo Moon Morgan Morris
Muntzel Neely Neth Newman Nichols
Norr Pace Parkinson Peters Pfautsch
Phillips Pierson Pike Rehder Reiboldt
Remole Rhoads Richardson Riddle Rizzo
Roorda Ross Rowland Runions Scharnhorst
Schatz Schieber Schieffer Schupp Shull
Solon Sommer Spencer Stream Swan
Swearingen Thomson Torpey Walker Walton Gray
Webber White Wieland Wilson Wood
Wright Zerr Mr. Speaker
NOES: 001
Pogue
PRESENT: 000
ABSENT WITH LEAVE: 015
Burns Dugger Flanigan Gatschenberger Hicks
Hodges May McCann Beatty McDonald Molendorp
Otto Redmon Rowden Shumake Smith
VACANCIES: 003
Speaker Pro Tem Hoskins declared the bill passed.
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1339 Journal of the House
HCS SS SB 525, relating to food safety, was taken up by
Representative Fraker.
Representative Fraker offered House Amendment No. 1.
House Amendment No. 1
AMEND House Committee Substitute for Senate Substitute for
Senate Bill No. 525, Page 1, Section 196.056, Line 3,by deleting
the word, "shall" and inserting in lieu thereof the word, "may";
and
Further amend said section and page, Line 18, by deleting the
second occurrence of the word, "and"; and
Further amend said section, Page 2, Line 20, by inserting
immediately after the word, "inhabitants" the words,", any county
of the first classification with more than two hundred thousand but
fewer than two hundred sixtythousand inhabitants, and any county of
the first classification with more than one hundred fifty thousand
butfewer than two hundred thousand inhabitants"; and
Further amend said bill, Page 2, Section 196.298, Line 30, by
inserting after all of said line the following:
"6. Nothing in this section shall be construed to prohibit the
authority of the department of health andsenior services or local
health departments to conduct an investigation of a foodborne
disease or outbreak."; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
On motion of Representative Fraker, House Amendment No. 1 was
adopted.
On motion of Representative Fraker, HCS SS SB 525, as amended,
was adopted.
On motion of Representative Fraker, HCS SS SB 525, as amended,
was read the third timeand passed by the following vote:
AYES: 125
Allen Anders Anderson Austin Bahr
Barnes Bernskoetter Berry Black Burlison
Burns Butler Cierpiot Conway 10 Conway 104
Cookson Cornejo Cox Crawford Cross
Curtman Davis Dohrman Dugger Ellington
Elmer Engler English Entlicher Fitzpatrick
Fitzwater Flanigan Fraker Frame Franklin
Frederick Funderburk Gannon Gosen Grisamore
Guernsey Haahr Haefner Hampton Hansen
Harris Hicks Hinson Hoskins Hough
Houghton Hubbard Hurst Johnson Jones 50
Justus Keeney Kelley 127 Kelly 45 Koenig
Kolkmeyer Korman Kratky Lair Lant
Lauer Leara Lichtenegger Love Lynch
Mayfield McCaherty McCann Beatty McDonald McGaugh
McKenna Messenger Miller Mims Montecillo
Moon Morgan Morris Muntzel Neely
Neth Nichols Otto Parkinson Peters
Pfautsch Phillips Pierson Pike Redmon
Rehder Reiboldt Remole Rhoads Richardson
Riddle Rizzo Roorda Ross Rowden
Rowland Runions Scharnhorst Schatz Schieffer
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Fifty-ninth Day–Tuesday, April 29, 2014 1340
Shull Solon Sommer Spencer Stream
Swan Thomson Torpey Walker White
Wieland Wilson Wood Zerr Mr. Speaker
NOES: 023
Carpenter Colona Curtis Dunn Englund
Gardner Kirkton LaFaver Marshall McManus
McNeil Meredith Mitten Molendorp Newman
Norr Pace Pogue Schieber Schupp
Smith Swearingen Walton Gray
PRESENT: 000
ABSENT WITH LEAVE: 011
Brattin Brown Diehl Gatschenberger Higdon
Hodges Hummel May Shumake Webber
Wright
VACANCIES: 003
Speaker Pro Tem Hoskins declared the bill passed.
SCS SB 529, relating to the payment of public works projects,
was taken up byRepresentative Korman.
Representative Keeney assumed the Chair.
On motion of Representative Korman, SCS SB 529 was truly agreed
to and finally passedby the following vote:
AYES: 143
Allen Anders Anderson Austin Bahr
Barnes Berry Black Brattin Burlison
Burns Butler Carpenter Cierpiot Colona
Conway 10 Conway 104 Cookson Cornejo Cox
Crawford Cross Curtis Curtman Davis
Dohrman Dugger Dunn Ellington Elmer
Engler English Englund Entlicher Fitzwater
Flanigan Fraker Frame Franklin Frederick
Gannon Gardner Gosen Guernsey Haahr
Haefner Hampton Hansen Harris Higdon
Hinson Hoskins Hough Houghton Hubbard
Hurst Johnson Jones 50 Justus Keeney
Kelley 127 Kelly 45 Kirkton Koenig Kolkmeyer
Korman Kratky LaFaver Lair Lant
Lauer Leara Lichtenegger Love Lynch
Marshall Mayfield McCaherty McCann Beatty McDonald
McGaugh McKenna McManus McNeil Meredith
Messenger Miller Mims Mitten Molendorp
Montecillo Moon Morgan Morris Muntzel
Neely Neth Newman Nichols Norr
Otto Pace Parkinson Peters Pfautsch
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1341 Journal of the House
Phillips Pierson Pike Redmon Rehder
Reiboldt Remole Rhoads Richardson Riddle
Rizzo Roorda Ross Rowden Rowland
Runions Schatz Schieber Schieffer Schupp
Shull Smith Solon Sommer Spencer
Swan Swearingen Thomson Torpey Walker
Walton Gray Webber White Wieland Wilson
Wood Zerr Mr. Speaker
NOES: 001
Pogue
PRESENT: 000
ABSENT WITH LEAVE: 015
Bernskoetter Brown Diehl Fitzpatrick Funderburk
Gatschenberger Grisamore Hicks Hodges Hummel
May Scharnhorst Shumake Stream Wright
VACANCIES: 003
Representative Keeney declared the bill passed.
HCS SB 606, relating to prepaid legal service plans, was taken
up by Representative Rhoads.
On motion of Representative Rhoads, HCS SB 606 was adopted.
On motion of Representative Rhoads, HCS SB 606 was read the
third time and passed bythe following vote:
AYES: 099
Allen Anderson Austin Bahr Barnes
Bernskoetter Berry Black Brattin Brown
Cierpiot Conway 104 Cookson Cornejo Cox
Crawford Cross Curtis Curtman Davis
Dohrman Dugger Elmer Engler Entlicher
Fitzpatrick Fitzwater Fraker Franklin Frederick
Funderburk Gannon Gosen Haahr Haefner
Hansen Hicks Higdon Hinson Hoskins
Hough Houghton Hurst Johnson Jones 50
Justus Keeney Kelley 127 Kelly 45 Koenig
Kolkmeyer Korman Lair Lant Lauer
Leara Lichtenegger Love Marshall McGaugh
Messenger Miller Molendorp Moon Morris
Muntzel Neely Neth Parkinson Pfautsch
Phillips Pike Redmon Rehder Reiboldt
Remole Rhoads Richardson Riddle Ross
Rowden Scharnhorst Schatz Schieber Shull
Solon Sommer Spencer Stream Swan
Thomson Torpey Walker White Wieland
Wilson Wood Zerr Mr. Speaker
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Fifty-ninth Day–Tuesday, April 29, 2014 1342
NOES: 042
Anders Burlison Burns Butler Carpenter
Colona Conway 10 Dunn English Englund
Frame Harris Hubbard Kirkton Kratky
LaFaver Mayfield McCann Beatty McDonald McKenna
McManus McNeil Meredith Mims Mitten
Montecillo Morgan Newman Nichols Otto
Pace Peters Pierson Pogue Rizzo
Roorda Runions Schupp Smith Swearingen
Walton Gray Webber
PRESENT: 000
ABSENT WITH LEAVE: 018
Diehl Ellington Flanigan Gardner Gatschenberger
Grisamore Guernsey Hampton Hodges Hummel
Lynch May McCaherty Norr Rowland
Schieffer Shumake Wright
VACANCIES: 003
Representative Keeney declared the bill passed.
SB 609, relating to providing certain insurance documents
through electronicmeans, was taken up by Representative Gosen.
On motion of Representative Gosen, SB 609 was truly agreed to
and finally passed by thefollowing vote:
AYES: 141
Allen Anders Anderson Austin Bahr
Barnes Bernskoetter Berry Black Brattin
Brown Burlison Burns Butler Carpenter
Cierpiot Colona Conway 10 Conway 104 Cookson
Cornejo Cox Crawford Cross Curtis
Curtman Davis Diehl Dohrman Dugger
Dunn Ellington Elmer Engler English
Englund Entlicher Fitzpatrick Fitzwater Fraker
Franklin Frederick Funderburk Gannon Gardner
Gosen Haahr Haefner Hampton Hansen
Harris Hicks Higdon Hoskins Hough
Houghton Hubbard Hurst Johnson Jones 50
Justus Keeney Kelley 127 Kelly 45 Kirkton
Koenig Kolkmeyer Korman Kratky LaFaver
Lair Lant Lauer Leara Lichtenegger
Love Lynch Mayfield McCaherty McCann Beatty
McDonald McGaugh McKenna McManus McNeil
Meredith Messenger Miller Mims Molendorp
Montecillo Moon Morgan Morris Neely
Neth Newman Nichols Norr Otto
Pace Parkinson Peters Pfautsch Phillips
Pierson Pike Rehder Reiboldt Rhoads
Richardson Riddle Rizzo Roorda Ross
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1343 Journal of the House
Rowden Rowland Runions Scharnhorst Schatz
Schieber Schieffer Schupp Shull Smith
Solon Sommer Spencer Stream Swan
Swearingen Thomson Torpey Walker Walton Gray
Webber White Wieland Wood Zerr
Mr. Speaker
NOES: 002
Marshall Pogue
PRESENT: 000
ABSENT WITH LEAVE: 016
Flanigan Frame Gatschenberger Grisamore Guernsey
Hinson Hodges Hummel May Mitten
Muntzel Redmon Remole Shumake Wilson
Wright
VACANCIES: 003
Representative Keeney declared the bill passed.
SB 610, relating to commercial exterior contractors, was taken
up by Representative Gosen.
On motion of Representative Gosen, SB 610 was truly agreed to
and finally passed by thefollowing vote:
AYES: 134
Allen Anders Anderson Austin Bahr
Barnes Berry Black Brattin Burlison
Burns Butler Carpenter Cierpiot Colona
Conway 10 Conway 104 Cookson Cornejo Cox
Crawford Cross Curtis Davis Dohrman
Dunn Ellington Engler English Englund
Entlicher Fitzwater Fraker Frame Franklin
Frederick Funderburk Gannon Gardner Gosen
Haahr Haefner Hampton Hansen Harris
Hicks Higdon Hinson Hoskins Hough
Houghton Hubbard Hurst Johnson Jones 50
Justus Keeney Kelley 127 Kirkton Koenig
Kolkmeyer Korman Kratky LaFaver Lair
Lant Lauer Leara Love Lynch
Mayfield McCaherty McCann Beatty McDonald McGaugh
McKenna McManus McNeil Meredith Messenger
Miller Mims Mitten Molendorp Montecillo
Moon Morgan Morris Neely Neth
Newman Nichols Norr Otto Pace
Parkinson Pfautsch Phillips Pierson Pike
Pogue Redmon Rehder Reiboldt Rhoads
Richardson Riddle Rizzo Roorda Ross
Rowden Runions Scharnhorst Schatz Schieber
Schieffer Schupp Shull Smith Solon
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Fifty-ninth Day–Tuesday, April 29, 2014 1344
Sommer Spencer Stream Swearingen Thomson
Torpey Walker Walton Gray White Wieland
Wood Wright Zerr Mr. Speaker
NOES: 002
Elmer Marshall
PRESENT: 000
ABSENT WITH LEAVE: 023
Bernskoetter Brown Curtman Diehl Dugger
Fitzpatrick Flanigan Gatschenberger Grisamore Guernsey
Hodges Hummel Kelly 45 Lichtenegger May
Muntzel Peters Remole Rowland Shumake
Swan Webber Wilson
VACANCIES: 003
Representative Keeney declared the bill passed.
SCS SB 526, relating to a database for workers’ compensation
claims, was taken up byRepresentative Fraker.
Representative Richardson offered House Amendment No. 1.
House Amendment No. 1
AMEND Senate Committee Substitute for Senate Bill No. 526, Page
1, in the title, Lines 2-3, by deleting "a databasefor workers'
compensation claims" and inserting in lieu thereof "workers'
compensation"; and
Further amend said bill and page, Section A, Line 2, by
inserting after all of said line the following:
"287.140. 1. In addition to all other compensation paid to the
employee under this section, the employee shallreceive and the
employer shall provide such medical, surgical, chiropractic, and
hospital treatment, including nursing,custodial, ambulance and
medicines, as may reasonably be required after the injury or
disability, to cure and relieve fromthe effects of the injury. If
the employee desires, he shall have the right to select his own
physician, surgeon, or othersuch requirement at his own expense.
Where the requirements are furnished by a public hospital or other
institution,payment therefor shall be made to the proper
authorities. Regardless of whether the health care provider is
selected bythe employer or is selected by the employee at the
employee's expense, the health care provider shall have the
affirmativeduty to communicate fully with the employee regarding
the nature of the employee's injury and recommended
treatmentexclusive of any evaluation for a permanent disability
rating. Failure to perform such duty to communicate shallconstitute
a disciplinary violation by the provider subject to the provisions
of chapter 620. When an employee is requiredto submit to medical
examinations or necessary medical treatment at a place outside of
the local or metropolitan areafrom the employee's principal place
of employment, the employer or its insurer shall advance or
reimburse the employeefor all necessary and reasonable expenses;
except that an injured employee who resides outside the state of
Missouri andwho is employed by an employer located in Missouri
shall have the option of selecting the location of services
providedin this section either at a location within one hundred
miles of the injured employee's residence, place of injury or
placeof hire by the employer. The choice of provider within the
location selected shall continue to be made by the employer. In
case of a medical examination if a dispute arises as to what
expenses shall be paid by the employer, the matter shallbe
presented to the legal advisor, the administrative law judge or the
commission, who shall set the sum to be paid andsame shall be paid
by the employer prior to the medical examination. In no event,
however, shall the employer or itsinsurer be required to pay
transportation costs for a greater distance than two hundred fifty
miles each way from placeof treatment.
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1345 Journal of the House
2. If it be shown to the division or the commission that the
requirements are being furnished in such mannerthat there is
reasonable ground for believing that the life, health, or recovery
of the employee is endangered thereby, thedivision or the
commission may order a change in the physician, surgeon, hospital
or other requirement.
3. All fees and charges under this chapter shall be fair and
reasonable, shall be subject to regulation by thedivision or the
commission, or the board of rehabilitation in rehabilitation cases.
A health care provider shall not chargea fee for treatment and care
which is governed by the provisions of this chapter greater than
the usual and customary feethe provider receives for the same
treatment or service when the payor for such treatment or service
is a privateindividual or a private health insurance carrier. The
division or the commission, or the board of rehabilitation
inrehabilitation cases, shall also have jurisdiction to hear and
determine all disputes as to such charges. A health careprovider is
bound by the determination upon the reasonableness of health care
bills.
4. The division shall, by regulation, establish methods to
resolve disputes concerning the reasonableness ofmedical charges,
services, or aids. This regulation shall govern resolution of
disputes between employers and medicalproviders over fees charged,
whether or not paid, and shall be in lieu of any other
administrative procedure under thischapter. The employee shall not
be a party to a dispute over medical charges, nor shall the
employee's recovery in anyway be jeopardized because of such
dispute. Any application for payment of additional reimbursement,
as such termis used in 8 CSR 50-2.030, as amended, shall be filed
not later than:
(1) Two years from the date the first notice of dispute of the
medical charge was received by the health careprovider if such
services were rendered before July 1, 2013; and
(2) One year from the date the first notice of dispute of the
medical charge was received by the health careprovider if such
services were rendered after July 1, 2013. Notice shall be presumed
to occur no later than five business days after transmission by
certified United States mail. For the purposes of this section, the
phrase "notice of dispute" shall include, but not be limited to, an
explanationof benefits delivered with final payment of the medical
fee or charge that evidences that the payment is consideredto be
the full payment of the fee or charge.
5. No compensation shall be payable for the death or disability
of an employee, if and insofar as the death ordisability may be
caused, continued or aggravated by any unreasonable refusal to
submit to any medical or surgicaltreatment or operation, the risk
of which is, in the opinion of the division or the commission,
inconsiderable in view ofthe seriousness of the injury. If the
employee dies as a result of an operation made necessary by the
injury, the deathshall be deemed to be caused by the injury.
6. The testimony of any physician or chiropractic physician who
treated the employee shall be admissible inevidence in any
proceedings for compensation under this chapter, subject to all of
the provisions of section 287.210.
7. Every hospital or other person furnishing the employee with
medical aid shall permit its record to be copiedby and shall
furnish full information to the division or the commission, the
employer, the employee or his dependentsand any other party to any
proceedings for compensation under this chapter, and certified
copies of the records shall beadmissible in evidence in any such
proceedings.
8. The employer may be required by the division or the
commission to furnish an injured employee withartificial legs,
arms, hands, surgical orthopedic joints, or eyes, or braces, as
needed, for life whenever the division or thecommission shall find
that the injured employee may be partially or wholly relieved of
the effects of a permanent injuryby the use thereof. The director
of the division shall establish a procedure whereby a claim for
compensation may bereactivated after settlement of such claim is
completed. The claim shall be reactivated only after the claimant
can showgood cause for the reactivation of this claim and the claim
shall be made only for the payment of medical proceduresinvolving
life-threatening surgical procedures or if the claimant requires
the use of a new, or the modification, alterationor exchange of an
existing, prosthetic device. For the purpose of this subsection,
"life threatening" shall mean a situationor condition which, if not
treated immediately, will likely result in the death of the injured
worker.
9. Nothing in this chapter shall prevent an employee being
provided treatment for his injuries by prayer orspiritual means if
the employer does not object to the treatment.
10. The employer shall have the right to select the licensed
treating physician, surgeon, chiropractic physician,or other health
care provider; provided, however, that such physicians, surgeons or
other health care providers shall offeronly those services
authorized within the scope of their licenses. For the purpose of
this subsection, subsection 2 ofsection 287.030 shall not
apply.
11. Any physician or other health care provider who orders,
directs or refers a patient for treatment, testing,therapy or
rehabilitation at any institution or facility shall, at or prior to
the time of the referral, disclose in writing if suchhealth care
provider, any of his partners or his employer has a financial
interest in the institution or facility to which thepatient is
being referred, to the following:
(1) The patient; (2) The employer of the patient with workers'
compensation liability for the injury or disease being treated;
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Fifty-ninth Day–Tuesday, April 29, 2014 1346
(3) The workers' compensation insurer of such employer; and (4)
The workers' compensation adjusting company for such insurer. 12.
Violation of subsection 11 of this section is a class A
misdemeanor. 13. (1) No hospital, physician or other health care
provider, other than a hospital, physician or health care
provider selected by the employee at his own expense pursuant to
subsection 1 of this section, shall bill or attempt tocollect any
fee or any portion of a fee for services rendered to an employee
due to a work-related injury or report to anycredit reporting
agency any failure of the employee to make such payment, when an
injury covered by this chapter hasoccurred and such hospital,
physician or health care provider has received actual notice given
in writing by the employee,the employer or the employer's insurer.
Actual notice shall be deemed received by the hospital, physician
or health careprovider five days after mailing by certified mail by
the employer or insurer to the hospital, physician or health
careprovider.
(2) The notice shall include: (a) The name of the employer; (b)
The name of the insurer, if known; (c) The name of the employee
receiving the services; (d) The general nature of the injury, if
known; and (e) Where a claim has been filed, the claim number, if
known. (3) When an injury is found to be noncompensable under this
chapter, the hospital, physician or other health
care provider shall be entitled to pursue the employee for any
unpaid portion of the fee or other charges for authorizedservices
provided to the employee. Any applicable statute of limitations for
an action for such fees or other charges shallbe tolled from the
time notice is given to the division by a hospital, physician or
other health care provider pursuant tosubdivision (6) of this
subsection, until a determination of noncompensability in regard to
the injury which is the basisof such services is made, or in the
event there is an appeal to the labor and industrial relations
commission, until adecision is rendered by that commission.
(4) If a hospital, physician or other health care provider or a
debt collector on behalf of such hospital, physicianor other health
care provider pursues any action to collect from an employee after
such notice is properly given, theemployee shall have a cause of
action against the hospital, physician or other health care
provider for actual damagessustained plus up to one thousand
dollars in additional damages, costs and reasonable attorney's
fees.
(5) If an employer or insurer fails to make payment for
authorized services provided to the employee by ahospital,
physician or other health care provider pursuant to this chapter,
the hospital, physician or other health careprovider may proceed
pursuant to subsection 4 of this section with a dispute against the
employer or insurer for any feesor other charges for services
provided.
(6) A hospital, physician or other health care provider whose
services have been authorized in advance by theemployer or insurer
may give notice to the division of any claim for fees or other
charges for services provided for awork-related injury that is
covered by this chapter, with copies of the notice to the employee,
employer and theemployer's insurer. Where such notice has been
filed, the administrative law judge may order direct payment from
theproceeds of any settlement or award to the hospital, physician
or other health care provider for such fees as aredetermined by the
division. The notice shall be on a form prescribed by the
division.
14. The employer may allow or require an employee to use any of
the employee's accumulated paid leave,personal leave, or medical or
sick leave to attend to medical treatment, physical rehabilitation,
or medical evaluationsduring work time. The intent of this
subsection is to specifically supercede and abrogate any case law
that contradictsthe express language of this section."; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
Representative Roorda raised a point of order that House
Amendment No. 1 goes beyondthe scope of the bill.
Representative Keeney requested a parliamentary ruling.
The Parliamentary Committee ruled the point of order not well
taken.
On motion of Representative Richardson, House Amendment No. 1
was adopted.
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1347 Journal of the House
Representative Jones (50) offered House Amendment No. 2.
House Amendment No. 2
AMEND Senate Committee Substitute for Senate Bill No. 526, Page
1, in the title, Lines 2 through 3, by deleting thewords "a
database for workers' compensation claims" and inserting in lieu
thereof the words "workers' compensation";and
Further amend said bill and page, Section A, Line 2, by
inserting immediately after all of said line the following:
"287.040. 1. Any person who has work done under contract on or
about his premises which is an operationof the usual business which
he there carries on shall be deemed an employer and shall be liable
under this chapter to suchcontractor, his subcontractors, and their
employees, when injured or killed on or about the premises of the
employerwhile doing work which is in the usual course of his
business. 2. The provisions of this section shall not apply to the
owner of premises upon which improvements are beingerected,
demolished, altered or repaired by an independent contractor but
such independent contractor shall be deemedto be the employer of
the employees of his subcontractors and their subcontractors when
employed on or about thepremises where the principal contractor is
doing work. 3. In all cases mentioned in the preceding subsections,
the immediate contractor or subcontractor shall beliable as an
employer of the employees of his subcontractors. All persons so
liable may be made parties to theproceedings on the application of
any party. The liability of the immediate employer shall be
primary, and that of theothers secondary in their order, and any
compensation paid by those secondarily liable may be recovered from
thoseprimarily liable, with attorney's fees and expenses of the
suit. Such recovery may be had on motion in the
originalproceedings. No such employer shall be liable as in this
section provided, if the employee was insured by his immediateor
any intermediate employer. 4. The provisions of this section shall
not apply to:
(1) The relationship between a for-hire motor carrier operating
within a commercial zone as defined in section390.020 or 390.041 or
operating under a certificate issued by the Missouri department of
transportation or by the UnitedStates Department of Transportation,
or any of its subagencies, and an owner, as defined in subdivision
(43) of section301.010, and operator of a motor vehicle; or
(2) An independent contractor providing application of
agricultural materials used in crop dusting,seeding, spraying or
fertilizing operations from an aircraft."; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
On motion of Representative Jones (50), House Amendment No. 2
was adopted.
Representative Austin offered House Amendment No. 3.
House Amendment No. 3
AMEND Senate Committee Substitute for Senate Bill No. 526, Page
1, in the title, Lines 2-3, by deleting "a databasefor workers'
compensation claims" and inserting in lieu thereof "workers'
compensation"; and
Further amend said bill and page, Section A, Line 2, by
inserting the following after all of said line:
"287.221. Notwithstanding the provisions of subsection 15 of
section 287.220 to the contrary, the divisionshall be authorized to
pay second injury fund liabilities for physical rehabilitation
payments under subsection 3of section 287.141, medical expenses
under subsection 7 of section 287.220 incurred after a temporary or
finalaward of future medical benefits, and wage loss benefits under
subsection 11 of section 287.220."; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
-
Fifty-ninth Day–Tuesday, April 29, 2014 1348
Representative Schatz offered House Amendment No. 1 to House
Amendment No. 3.
House Amendment No. 1to
House Amendment No. 3
AMEND House Amendment No. 3 to Senate Committee Substitute for
Senate Bill No. 526, Page 1, Line 11, by deletingall of said line
and inserting in lieu thereof the following:
"loss benefits under subsection 11 of section 287.220.
287.957. The experience rating plan shall contain reasonable
eligibility standards, provide adequate incentivesfor loss
prevention, and shall provide for sufficient premium differentials
so as to encourage safety. The uniformexperience rating plan shall
be the exclusive means of providing prospective premium adjustment
based uponmeasurement of the loss-producing characteristics of an
individual insured. An insurer may submit a rating plan or
plansproviding for retrospective premium adjustments based upon an
insured's past experience. Such system shall providefor
retrospective adjustment of an experience modification and premiums
paid pursuant to such experience modificationwhere a prior reserved
claim produced an experience modification that varied by greater
than fifty percent from theexperience modification that would have
been established based on the settlement amount of that claim. The
rating planshall prohibit an adjustment to the experience
modification of an employer if the total medical cost does not
exceed [onethousand dollars] twenty percent of the current split
point of primary and excess losses under the uniformexperience
rating plan, and the employer pays all of the total medical costs
and there is no lost time from theemployment, other than the first
three days or less of disability under subsection 1 of section
287.160, and no claim isfiled. An employer opting to utilize this
provision maintains an obligation to report the injury under
subsection 1 ofsection 287.380.
287.975. 1. The advisory organization shall file with the
director every pure premium rate, every manual ofrating rules,
every rating schedule and every change or amendment, or
modification of any of the foregoing, proposedfor use in this state
no more than thirty days after it is distributed to members,
subscribers or others.
2. The advisory organization which makes a uniform
classification system for use in setting rates in this stateshall
collect data for two years after January 1, 1994, on the payroll
differential between employers within theconstruction group of code
classifications, including, but not limited to, payroll costs of
the employer and number ofhours worked by all employees of the
employer engaged in construction work. Such data shall be
transferred to thedepartment of insurance, financial institutions
and professional registration in a form prescribed by the director
of thedepartment of insurance, financial institutions and
professional registration, and the department shall compile the
dataand develop a formula to equalize premium rates for employers
within the construction group of code classificationsbased on such
payroll differential within three years after the data is submitted
by the advisory organization.
3. The formula to equalize premium rates for employers within
the construction group of code classificationsestablished under
subsection 2 of this section shall be the formula in effect on
January 1, 1999. This subsection shallbecome effective on January
1, 2014.
4. For the purposes of calculating the premium credit under the
Missouri contracting classificationpremium adjustment program, an
employer within the construction group of code classifications may
submit tothe advisory organization the required payroll record
information for the first, second, third, or fourth calendarquarter
of the year prior to the workers’ compensation policy beginning or
renewal date, provided that theemployer clearly indicates for which
quarter the payroll information is being submitted."; and"; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
Representative Roorda raised points of order that House
Amendment No. 1 to HouseAmendment No. 3 is not properly drafted and
is not germane to the bill.
Representative Keeney requested a parliamentary ruling.
The Parliamentary Committee ruled the points of order not well
taken.
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1349 Journal of the House
On motion of Representative Schatz, House Amendment No. 1 to
House AmendmentNo. 3 was adopted.
On motion of Representative Austin, House Amendment No. 3, as
amended, was adopted.
Representative Haahr offered House Amendment No. 4.
House Amendment No. 4
AMEND Senate Committee Substitute for Senate Bill No. 526, Page
1, in the title, Line 3, by deleting all of said lineand inserting
in lieu thereof "workers' compensation."; and
Further amend said bill and page, Section A, Line 2, by
inserting the following after all of said line:
"287.120. 1. Every employer subject to the provisions of this
chapter shall be liable, irrespective of negligence,to furnish
compensation under the provisions of this chapter for personal
injury or death of the employee by accidentor occupational disease
arising out of and in the course of the employee's employment. Any
employee of such employershall not be liable for any injury or
death for which compensation is recoverable under this chapter and
every employerand employees of such employer shall be released from
all other liability whatsoever, whether to the employee or anyother
person, except that an employee shall not be released from
liability for injury or death if the employee engagedin an
affirmative negligent act that purposefully and dangerously caused
or increased the risk of injury. The term"accident" as used in this
section shall include, but not be limited to, injury or death of
the employee caused by theunprovoked violence or assault against
the employee by any person.
2. The rights and remedies herein granted to an employee shall
exclude all other rights and remedies of theemployee, his wife, her
husband, parents, personal representatives, dependents, heirs or
next kin, at common law orotherwise, on account of such injury or
death by accident or occupational disease, except such rights and
remedies asare not provided for by this chapter.
3. No compensation shall be allowed under this chapter for the
injury or death due to the employee's intentionalself-inflicted
injury, but the burden of proof of intentional self-inflicted
injury shall be on the employer or the personcontesting the claim
for allowance.
4. Where the injury is caused by the failure of the employer to
comply with any statute in this state or anylawful order of the
division or the commission, the compensation and death benefit
provided for under this chapter shallbe increased [fifteen]
twenty-five percent.
5. Where the injury is caused by the failure of the employee to
use safety devices where provided by theemployer, or from the
employee's failure to obey any reasonable rule adopted by the
employer for the safety ofemployees, the compensation and death
benefit provided for herein shall be reduced [at least twenty-five
but not morethan fifty] twenty-five percent; provided, that it is
shown that the employee had actual knowledge of the rule so
adoptedby the employer; and provided, further, that the employer
had, prior to the injury, made a reasonable effort to cause hisor
her employees to use the safety device or devices and to obey or
follow the rule so adopted for the safety of theemployees.
6. (1) Where the employee fails to obey any rule or policy
adopted by the employer relating to a drug-freeworkplace or the use
of alcohol or nonprescribed controlled drugs in the workplace, the
compensation and death benefitprovided for herein shall be reduced
fifty percent if the injury was sustained in conjunction with the
use of alcohol ornonprescribed controlled drugs.
(2) If, however, the use of alcohol or nonprescribed controlled
drugs in violation of the employer's rule orpolicy is the proximate
cause of the injury, then the benefits or compensation otherwise
payable under this chapter fordeath or disability shall be
forfeited.
(3) The voluntary use of alcohol to the percentage of blood
alcohol sufficient under Missouri law to constitutelegal
intoxication shall give rise to a rebuttable presumption that the
voluntary use of alcohol under such circumstanceswas the proximate
cause of the injury. A preponderance of the evidence standard shall
apply to rebut such presumption. An employee's refusal to take a
test for alcohol or a nonprescribed controlled substance, as
defined by section 195.010,at the request of the employer shall
result in the forfeiture of benefits under this chapter if the
employer had sufficientcause to suspect use of alcohol or a
nonprescribed controlled substance by the claimant or if the
employer's policy clearlyauthorizes post-injury testing.
-
Fifty-ninth Day–Tuesday, April 29, 2014 1350
7. Where the employee's participation in a recreational activity
or program is the prevailing cause of the injury,benefits or
compensation otherwise payable under this chapter for death or
disability shall be forfeited regardless thatthe employer may have
promoted, sponsored or supported the recreational activity or
program, expressly or impliedly,in whole or in part. The forfeiture
of benefits or compensation shall not apply when:
(1) The employee was directly ordered by the employer to
participate in such recreational activity or program; (2) The
employee was paid wages or travel expenses while participating in
such recreational activity or
program; or (3) The injury from such recreational activity or
program occurs on the employer's premises due to an unsafe
condition and the employer had actual knowledge of the
employee's participation in the recreational activity or programand
of the unsafe condition of the premises and failed to either
curtail the recreational activity or program or cure theunsafe
condition.
8. Mental injury resulting from work-related stress does not
arise out of and in the course of the employment,unless it is
demonstrated that the stress is work related and was extraordinary
and unusual. The amount of work stressshall be measured by
objective standards and actual events.
9. A mental injury is not considered to arise out of and in the
course of the employment if it resulted from anydisciplinary
action, work evaluation, job transfer, layoff, demotion,
termination or any similar action taken in good faithby the
employer.
10. The ability of a firefighter to receive benefits for
psychological stress under section 287.067 shall not bediminished
by the provisions of subsections 8 and 9 of this section."; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
Representative Fitzpatrick offered House Amendment No. 1 to
House Amendment No. 4.
House Amendment No. 1to
House Amendment No. 4
AMEND House Amendment No. 4 to Senate Committee Substitute for
Senate Bill No. 526, Page 1, Line 25, bydeleting the words,
"[fifteen] twenty-five" and inserting in lieu thereof the word,
"fifteen"; and
Further amend said page, Line 29, by deleting the number
"twenty-five" and inserting in lieu thereof thenumber, "fifteen";
and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
On motion of Representative Fitzpatrick, House Amendment No. 1
to House AmendmentNo. 4 was adopted.
Representative Marshall offered House Amendment No. 2 to House
Amendment No. 4.
House Amendment No. 2to
House Amendment No. 4
AMEND House Amendment No. 4 to Senate Committee Substitute for
Senate Bill No. 526, Page 1, Line 2, byinserting after all of said
line the following:
"Further amend said bill, Page 1, Section A, Line 2, by
inserting after all of said line the following:
"287.203. Whenever the employer has provided compensation under
section 287.140, 287.170, 287.180 or287.200, and terminates such
compensation, the employer shall notify the employee of such
termination and shall advisethe employee of the reason for such
termination. If the employee disputes the termination of such
benefits, the employeemay request a hearing before the division and
the division shall set the matter [for hearing] to be heard within
sixty days
-
1351 Journal of the House
of such request and the division shall hear the matter on the
date of hearing and no continuances or delays may begranted except
upon a showing of good cause or by consent of the parties. The
division shall render a decision withinthirty days of the date of
hearing. If the division or the commission determines that any
proceedings have been brought,prosecuted, or defended without
reasonable grounds, the division may assess the whole cost of the
proceedings uponthe party who brought, prosecuted, or defended
them."; and"; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
Representative Marshall moved that House Amendment No. 2 to
House Amendment No. 4be adopted.
Which motion was defeated.
On motion of Representative Haahr, House Amendment No. 4, as
amended, was adopted.
Representative Dohrman offered House Amendment No. 5.
House Amendment No. 5
AMEND Senate Committee Substitute for Senate Bill No. 526, Page
1, Section A, Line 2, by inserting after said linethe
following:
"287.090. 1. This chapter shall not apply to: (1) Employment of
farm labor, domestic servants in a private home, including family
chauffeurs, or occasional
labor performed for and related to a private household; (2)
Qualified real estate agents and direct sellers as those terms are
defined in Section 3508 of Title 26 United
States Code; (3) Employment where the person employed is an
inmate confined in a state prison, penitentiary or county or
municipal jail, or a patient or resident in a state mental
health facility, and the labor or services of such inmate,
patient,or resident are exclusively on behalf of the state, county
or municipality having custody of said inmate, patient, orresident.
Nothing in this subdivision is intended to exempt employment where
the inmate, patient or resident was hiredby a state, county or
municipal government agency after direct competition with persons
who are not inmates, patientsor residents and the compensation for
the position of employment is not contingent upon or affected by
the worker'sstatus as an inmate, patient or resident;
(4) Except as provided in section 287.243, volunteers of a
tax-exempt organization which operates under thestandards of
Section 501(c)(3) or Section 501(c)(19) of the federal Internal
Revenue Code, where such volunteers arenot paid wages, but provide
services purely on a charitable and voluntary basis;
(5) Persons providing services as adjudicators, sports
officials, or contest workers for interscholastic
activitiesprograms or similar amateur youth programs who are not
otherwise employed by the sponsoring school, association ofschools
or nonprofit tax-exempt organization sponsoring the amateur youth
programs.
2. Any employer exempted from this chapter as to the employer or
as to any class of employees of the employerpursuant to the
provisions of subdivision (3) of subsection 1 of section 287.030 or
pursuant to subsection 1 of this sectionmay elect coverage as to
the employer or as to the class of employees of that employer
pursuant to this chapter bypurchasing and accepting a valid
workers' compensation insurance policy or endorsement, or by
written notice to thegroup self-insurer of which the employer is a
member. The election shall take effect on the effective date of the
workers'compensation insurance policy or endorsement, or by written
notice to the group self-insurer of which the employer isa member,
and continue while such policy or endorsement remains in effect or
until further written notice to the groupself-insurer of which the
employer is a member. Any such exempt employer or employer with an
exempt class ofemployees may withdraw such election by the
cancellation or nonrenewal of the workers' compensation insurance
policyor endorsement, or by written notice to the group
self-insurer of which the employer is a member. In the event
theemployer is electing out of coverage as to the employer, the
cancellation shall take effect on the later date of thecancellation
of the policy or the filing of notice pursuant to subsection 3 of
this section.
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Fifty-ninth Day–Tuesday, April 29, 2014 1352
3. Any insurance company authorized to write insurance under the
provisions of this chapter in this state shallfile with the
division a memorandum on a form prescribed by the division of any
workers' compensation policy issuedto any employer and of any
renewal or cancellation thereof.
4. The mandatory coverage sections of this chapter shall not
apply to the employment of any member of afamily owning a family
farm corporation as defined in section 350.010 or to the employment
of any salaried officer ofa family farm corporation organized
pursuant to the laws of this state, but such family members and
officers of suchfamily farm corporations may be covered under a
policy of workers' compensation insurance if approved by a
resolutionof the board of directors. Nothing in this subsection
shall be construed to apply to any other type of corporation
otherthan a family farm corporation.
5. A corporation may withdraw from the provisions of this
chapter, when there are no more than two ownersof the corporation
who are also the only employees of the corporation, by filing with
the division notice of election tobe withdrawn. The election shall
take effect and continue from the date of filing with the division
by the corporationof the notice of withdrawal from liability under
this chapter. Any corporation making such an election may
withdrawits election by filing with the division a notice to
withdraw the election, which shall take effect thirty days after
the dateof the filing, or at such later date as may be specified in
the notice of withdrawal."; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
Representative McGaugh offered House Substitute Amendment No. 1
for HouseAmendment No. 5.
House Substitute Amendment No. 1for
House Amendment No. 5
AMEND Senate Committee Substitute for Senate Bill No. 526, Page
1, Section A, Line 2, by inserting after said linethe
following:
"287.030. 1. The word "employer" as used in this chapter shall
be construed to mean: (1) Every person, partnership, association,
corporation, limited liability partnership or company, trustee,
receiver, the legal representatives of a deceased employer, and
every other person, including any person or corporationoperating a
railroad and , any public service corporation, using the service of
another for pay;
(2) The state, county, municipal corporation, township, school
or road, drainage, swamp and levee districts,or school boards,
board of education, regents, curators, managers or control
commission, board or any other politicalsubdivision, corporation,
or quasi-corporation, or cities under special charter, or under the
commission form ofgovernment;
(3) Any of the above-defined employers must have five or more
employees to be deemed an employer for thepurposes of this chapter
unless election is made to become subject to the provisions of this
chapter as provided insubsection 2 of section 287.090, except that
construction industry employers who erect, demolish, alter or
repairimprovements shall be deemed an employer for the purposes of
this chapter if they have [one] three or more employees. An
employee who is a member of the employer's family within the third
degree of affinity or consanguinity shall becounted in determining
the total number of employees of such employer.
2. Any reference to the employer shall also include his or her
insurer or group self-insurer.
287.090. 1. This chapter shall not apply to: (1) Employment of
farm labor, domestic servants in a private home, including family
chauffeurs, or occasional
labor performed for and related to a private household; (2)
Qualified real estate agents and direct sellers as those terms are
defined in Section 3508 of Title 26 United
States Code; (3) Employment where the person employed is an
inmate confined in a state prison, penitentiary or county or
municipal jail, or a patient or resident in a state mental
health facility, and the labor or services of such inmate,
patient,or resident are exclusively on behalf of the state, county
or municipality having custody of said inmate, patient, orresident.
Nothing in this subdivision is intended to exempt employment where
the inmate, patient or resident was hiredby a state, county or
municipal government agency after direct competition with persons
who are not inmates, patients
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1353 Journal of the House
or residents and the compensation for the position of employment
is not contingent upon or affected by the worker'sstatus as an
inmate, patient or resident;
(4) Except as provided in section 287.243, volunteers of a
tax-exempt organization which operates under thestandards of
Section 501(c)(3) or Section 501(c)(19) of the federal Internal
Revenue Code, where such volunteers arenot paid wages, but provide
services purely on a charitable and voluntary basis;
(5) Persons providing services as adjudicators, sports
officials, or contest workers for interscholastic
activitiesprograms or similar amateur youth programs who are not
otherwise employed by the sponsoring school, association ofschools
or nonprofit tax-exempt organization sponsoring the amateur youth
programs.
2. Any employer exempted from this chapter as to the employer or
as to any class of employees of the employerpursuant to the
provisions of subdivision (3) of subsection 1 of section 287.030 or
pursuant to subsection 1 of this sectionmay elect coverage as to
the employer or as to the class of employees of that employer
pursuant to this chapter bypurchasing and accepting a valid
workers' compensation insurance policy or endorsement, or by
written notice to thegroup self-insurer of which the employer is a
member. The election shall take effect on the effective date of the
workers'compensation insurance policy or endorsement, or by written
notice to the group self-insurer of which the employer isa member,
and continue while such policy or endorsement remains in effect or
until further written notice to the groupself-insurer of which the
employer is a member. Any such exempt employer or employer with an
exempt class ofemployees may withdraw such election by the
cancellation or nonrenewal of the workers' compensation insurance
policyor endorsement, or by written notice to the group
self-insurer of which the employer is a member. In the event
theemployer is electing out of coverage as to the employer, the
cancellation shall take effect on the later date of thecancellation
of the policy or the filing of notice pursuant to subsection 3 of
this section.
3. Any insurance company authorized to write insurance under the
provisions of this chapter in this state shallfile with the
division a memorandum on a form prescribed by the division of any
workers' compensation policy issuedto any employer and of any
renewal or cancellation thereof.
4. The mandatory coverage sections of this chapter shall not
apply to the employment of any member of afamily owning a family
farm corporation as defined in section 350.010 or to the employment
of any salaried officer ofa family farm corporation organized
pursuant to the laws of this state, but such family members and
officers of suchfamily farm corporations may be covered under a
policy of workers' compensation insurance if approved by a
resolutionof the board of directors. Nothing in this subsection
shall be construed to apply to any other type of corporation
otherthan a family farm corporation.
5. A corporation may withdraw from the provisions of this
chapter, when there are no more than two ownersof the corporation
who are also the only employees of the corporation, by filing with
the division notice of election tobe withdrawn. The election shall
take effect and continue from the date of filing with the division
by the corporationof the notice of withdrawal from liability under
this chapter. Any corporation making such an election may
withdrawits election by filing with the division a notice to
withdraw the election, which shall take effect thirty days after
the dateof the filing, or at such later date as may be specified in
the notice of withdrawal."; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
MOTION
Representative Roorda moved that pursuant to Rule 25(22), SCS SB
526, as amended, bereferred to the Committee on Fiscal Review prior
to such time as said bill is third read and finallypassed.
Speaker Pro Tem Hoskins resumed the Chair.
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Fifty-ninth Day–Tuesday, April 29, 2014 1354
Representative Roorda again moved that pursuant to Rule 25(22),
SCS SB 526, as amended,be referred to the Committee on Fiscal
Review prior to such time as said bill is third read and
finallypassed.
Which motion was defeated by the following vote:
AYES: 049
Anders Black Burns Butler Carpenter
Colona Conway 10 Curtis Dunn Ellington
English Englund Frame Gardner Harris
Hubbard Hummel Kelly 45 Kirkton Kratky
LaFaver Marshall Mayfield McCann Beatty McKenna
McManus McNeil Meredith Mims Mitten
Montecillo Morgan Newman Nichols Norr
Otto Pace Peters Pierson Rizzo
Roorda Runions Schieffer Schupp Smith
Swearingen Walton Gray Webber Wright
NOES: 099
Allen Anderson Austin Bahr Barnes
Bernskoetter Berry Brattin Brown Burlison
Cierpiot Conway 104 Cookson Cornejo Cox
Crawford Cross Curtman Davis Diehl
Dohrman Dugger Elmer Engler Entlicher
Fitzpatrick Fitzwater Flanigan Fraker Franklin
Frederick Funderburk Gannon Gosen Grisamore
Haahr Haefner Hampton Hansen Hicks
Higdon Hoskins Hough Houghton Hurst
Johnson Justus Keeney Kelley 127 Koenig
Kolkmeyer Korman Lair Lant Lauer
Leara Lichtenegger Love Lynch McCaherty
McGaugh Messenger Miller Molendorp Moon
Morris Muntzel Neely Neth Parkinson
Pfautsch Phillips Pike Pogue Redmon
Rehder Reiboldt Remole Rhoads Richardson
Riddle Ross Rowden Scharnhorst Schieber
Shull Solon Sommer Spencer Stream
Swan Thomson Torpey Walker White
Wilson Wood Zerr Mr. Speaker
PRESENT: 000
ABSENT WITH LEAVE: 011
Gatschenberger Guernsey Hinson Hodges Jones 50
May McDonald Rowland Schatz Shumake
Wieland
VACANCIES: 003
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1355 Journal of the House
Representative Frederick offered House Amendment No. 1 to House
SubstituteAmendment No. 1 for House Amendment No. 5.
House Amendment No. 1to
House Substitute Amendment No. 1for
House Amendment No. 5
AMEND House Substitute Amendment No. 1 for House Amendment No. 5
to Senate Committee Substitute forSenate Bill No. 526, Page, 1,
Line 13, by deleting the word "five" and inserting lieu thereof the
following:
"[five] ten"; and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
Representative Roorda raised a point of order that House
Amendment No. 1 to HouseSubstitute Amendment No. 1 for House
Amendment No. 5 is not properly drafted.
The Chair ruled the point of order not well taken.
Representative Cierpiot moved the previous question.
Which motion was adopted by the following vote:
AYES: 091
Allen Anderson Austin Bahr Bernskoetter
Berry Brattin Brown Burlison Cierpiot
Conway 104 Cookson Cornejo Cox Crawford
Cross Curtman Dohrman Dugger Elmer
Engler Entlicher Fitzpatrick Fitzwater Fraker
Franklin Frederick Funderburk Gannon Gosen
Haahr Haefner Hampton Hansen Hicks
Higdon Hoskins Houghton Hurst Johnson
Justus Keeney Kelley 127 Koenig Kolkmeyer
Korman Lair Lant Lauer Leara
Lichtenegger Love Lynch McCaherty McGaugh
Messenger Miller Molendorp Moon Morris
Muntzel Neely Parkinson Pfautsch Phillips
Pike Pogue Redmon Rehder Reiboldt
Remole Rhoads Richardson Riddle Ross
Rowden Scharnhorst Schieber Shull Solon
Sommer Spencer Swan Thomson Walker
White Wieland Wilson Wood Zerr
Mr. Speaker
NOES: 047
Anders Black Burns Butler Carpenter
Colona Conway 10 Curtis Dunn Ellington
English Englund Frame Gardner Harris
Hubbard Hummel Kelly 45 Kirkton Kratky
LaFaver Marshall Mayfield McCann Beatty McKenna
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Fifty-ninth Day–Tuesday, April 29, 2014 1356
McManus McNeil Meredith Mims Mitten
Montecillo Morgan Newman Nichols Norr
Otto Pace Peters Pierson Rizzo
Roorda Runions Schieffer Schupp Swearingen
Walton Gray Wright
PRESENT: 000
ABSENT WITH LEAVE: 021
Barnes Davis Diehl Flanigan Gatschenberger
Grisamore Guernsey Hinson Hodges Hough
Jones 50 May McDonald Neth Rowland
Schatz Shumake Smith Stream Torpey
Webber
VACANCIES: 003
On motion of Representative Frederick, House Amendment No. 1 to
House SubstituteAmendment No. 1 for House Amendment No. 5 was
adopted.
Representative McGaugh moved that House Substitute Amendment No.
1 for HouseAmendment No. 5, as amended, be adopted, the ayes and
noes having been demanded byRepresentative Hummel.
Which motion was defeated by the following vote:
AYES: 050
Anderson Austin Bahr Berry Brattin
Brown Burlison Cierpiot Cookson Crawford
Curtman Davis Diehl Entlicher Fitzpatrick
Fitzwater Flanigan Fraker Franklin Frederick
Guernsey Hansen Hoskins Houghton Johnson
Justus Keeney Kelley 127 Koenig Kolkmeyer
Korman Lair Lant Leara Love
Lynch McGaugh Neely Phillips Pike
Redmon Rehder Reiboldt Ross Shull
Spencer Swan Walker Wilson Mr. Speaker
NOES: 097
Allen Anders Barnes Bernskoetter Black
Burns Butler Carpenter Colona Conway 10
Conway 104 Cornejo Cox Cross Curtis
Dohrman Dugger Dunn Ellington Elmer
Engler English Englund Frame Funderburk
Gannon Gardner Gosen Grisamore Haahr
Haefner Hampton Harris Hicks Higdon
Hubbard Hummel Hurst Jones 50 Kelly 45
Kirkton Kratky LaFaver Lauer Lichtenegger
Marshall Mayfield McCaherty McCann Beatty McKenna
McManus McNeil Meredith Messenger Miller
Mims Mitten Molendorp Montecillo Moon
Morgan Morris Muntzel Newman Nichols
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1357 Journal of the House
Norr Otto Pace Parkinson Peters
Pfautsch Pierson Pogue Remole Rhoads
Richardson Riddle Rizzo Roorda Rowden
Runions Scharnhorst Schieber Schieffer Schupp
Smith Solon Sommer Stream Swearingen
Thomson Walton Gray White Wieland Wood
Wright Zerr
PRESENT: 001
Torpey
ABSENT WITH LEAVE: 011
Gatschenberger Hinson Hodges Hough May
McDonald Neth Rowland Schatz Shumake
Webber
VACANCIES: 003
On motion of Representative Dohrman, House Amendment No. 5 was
adopted.
Speaker Jones resumed the Chair.
Representative Fitzpatrick offered House Amendment No. 6.
House Amendment No. 6
AMEND Senate Committee Substitute for Senate Bill No. 526, Page
1, in the title, Lines 2-3, by deleting the phrase "adatabase for";
and
Further amend said bill and said page, Section A, Line 2, by
inserting immediately after said line the following:
"287.037. 1. Notwithstanding any other provision of law to the
contrary, beginning January 1, 1997, thoseinsurance companies
providing coverage pursuant to chapter 287, to a limited liability
company, as defined in section347.015, shall provide coverage for
the employees of the limited liability company who are not members
of the limitedliability company. Members of the limited liability
company, as defined in section 347.015, shall also be
providedcoverage pursuant to chapter 287, but such members may
individually elect to reject such coverage by providing awritten
notice of such rejection on a form developed by the department of
insurance, financial institutions andprofessional registration to
the limited liability company and its insurer. Failure to provide
notice to the limited liabilitycompany shall not be grounds for any
member to claim that the rejection of such coverage is not legally
effective. Amember who elects to reject such coverage shall not
thereafter be entitled to workers' compensation benefits under
thepolicy, even if serving or working in the capacity of an
employee of the limited liability company, at least until such
timeas said member provides the limited liability company and its
insurer with a written notice which rescinds the priorrejection of
such coverage. The written notice which rescinds the prior
rejection of such coverage shall be on a formdeveloped by the
department of insurance, financial institutions and professional
registration. Any rescission shall beprospective in nature and
shall entitle the member only to such benefits which accrue on or
after the date the notice ofrescission form is received by the
insurance company.
2. Notwithstanding any other provision of law to the contrary,
beginning January 1, 2015, a shareholderof an S corporation, as
defined in subsection 1 of section 143.471, with at least forty
percent or greater interestin the S corporation may individually
elect to reject coverage under this chapter by providing a written
noticeof such rejection to the S corporation and its insurer.
Failure to provide notice to the S corporation shall not begrounds
for any shareholder to claim that the rejection of such coverage is
not legally effective. A shareholderwho elects to reject such
coverage shall not thereafter be entitled to workers' compensation
benefits under the
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Fifty-ninth Day–Tuesday, April 29, 2014 1358
policy, even if serving or working in the capacity of an
employee of the S corporation, at least until such time assuch
shareholder provides the S corporation and its insurer with a
written notice which rescinds the priorrejection of such coverage.
Any rescission shall be prospective in nature and shall entitle the
shareholder onlyto such benefits which accrue on or after the date
the notice of rescission is received by the insurance
company.";and
Further amend said bill by amending the title, enacting clause,
and intersectional references accordingly.
On motion of Representative Fitzpatrick, House Amendment No. 6
was adopted.
On motion of Representative Fraker, SCS SB 526, as amended, was
read the third time andpassed by the following vote:
AYES: 091
Allen Anderson Austin Bahr Bernskoetter
Berry Brattin Brown Burlison Cierpiot
Cookson Cornejo Cox Crawford Cross
Curtman Davis Diehl Dohrman Dugger
Elmer Engler Entlicher Fitzpatrick Fitzwater
Flanigan Fraker Franklin Frederick Gannon
Gosen Guernsey Haahr Haefner Hampton
Hansen Hicks Hoskins Houghton Hurst
Johnson Jones 50 Justus Keeney Kelley 127
Koenig Kolkmeyer Lair Lant Lauer
Leara Lichtenegger Love Lynch McGaugh
Messenger Miller Molendorp Morris Muntzel
Neely Neth Parkinson Pfautsch Phillips
Pike Redmon Rehder Reiboldt Remole
Rhoads Richardson Riddle Ross Rowden
Scharnhorst Schatz Shull Sommer Spencer
Stream Swan Thomson Torpey Walker
White Wieland Wilson Wood Zerr
Mr. Speaker
NOES: 059
Anders Barnes Black Burns Butler
Carpenter Conway 10 Conway 104 Curtis Dunn
Ellington English Englund Frame Funderburk
Gardner Grisamore Harris Higdon Hubbard
Hummel Kelly 45 Kirkton Korman Kratky
LaFaver Marshall Mayfield McCaherty McCann Beatty
McDonald McKenna McManus McNeil Meredith
Mims Mitten Montecillo Moon Morgan
Newman Nichols Norr Otto Pace
Peters Pierson Pogue Rizzo Roorda
Runions Schieber Schieffer Schupp Smith
Solon Swearingen Walton Gray Wright
PRESENT: 000
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1359 Journal of the House
ABSENT WITH LEAVE: 009
Colona Gatschenberger Hinson Hodges Hough
May Rowland Shumake Webber
VACANCIES: 003
Speaker Jones declared the bill passed.
SCS SB 675, relating to the Missouri Local Government Employees'
Retirement System,was taken up by Representative Leara.
On motion of Representative Leara, SCS SB 675 was truly agreed
to and finally passed bythe following vote:
AYES: 136
Allen Anders Bahr Barnes Bernskoetter
Berry Black Brown Burns Butler
Carpenter Cierpiot Colona Conway 10 Conway 104
Cookson Cornejo Cox Crawford Cross
Curtis Davis Diehl Dohrman Dunn
Ellington Elmer Engler English Englund
Entlicher Fitzwater Flanigan Fraker Frame
Franklin Frederick Gannon Gardner Gosen
Haahr Haefner Hampton Hansen Harris
Hicks Higdon Hoskins Houghton Hubbard
Hummel Hurst Johnson Jones 50 Justus
Keeney Kelley 127 Kelly 45 Kirkton Koenig
Kolkmeyer Korman Kratky LaFaver Lair
Lant Lauer Leara Lichtenegger Love
Lynch Marshall Mayfield McCaherty McCann Beatty
McDonald McGaugh McKenna McManus McNeil
Meredith Messenger Miller Mims Mitten
Molendorp Montecillo Morgan Morris Muntzel
Neely Newman Nichols Norr Otto
Pace Peters Pfautsch Pierson Pike
Redmon Rehder Reiboldt Remole Rhoads
Richardson Riddle Rizzo Roorda Rowden
Runions Scharnhorst Schatz Schieber Schieffer
Schupp Shull Smith Solon Sommer
Spencer Stream Swan Swearingen Thomson
Torpey Walker Walton Gray Webber White
Wieland Wilson Wood Wright Zerr
Mr. Speaker
NOES: 010
Anderson Austin Burlison Dugger Fitzpatrick
Hough Moon Phillips Pogue Ross
PRESENT: 000
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Fifty-ninth Day–Tuesday, April 29, 2014 1360
ABSENT WITH LEAVE: 013
Brattin Curtman Funderburk Gatschenberger Grisamore
Guernsey Hinson Hodges May Neth
Parkinson Rowland Shumake
VACANCIES: 003
Speaker Jones declared the bill passed.
SCS SB 612, relating to nonresident entertainer income taxes,
was taken up byRepresentative Hoskins.
Representative Jones (50) offered House Amendment No. 1.
House Amendment No. 1
AMEND Senate Committee Substitute for Senate Bill No. 612, Page
1, in the title, Line 3, by deleting the words,"nonresident
entertainer income taxes" and inserting in lieu thereof the words
"taxation"; and
Further amend said bill, Page 5, Section 143.183, Line 142, by
inserting immediately after said line thefollowing:
"143.451. 1. Missouri taxable income of a corporation shall
include all income derived from sources withinthis state.
2. A corporation described in subdivision (1) of subsection 1 of
section 143.441 shall include in its Missouritaxable income all
income from sources within this state, including that from the
transaction of business in this state andthat from the transaction
of business partly done in this state and partly done in another
state or states. However:
(1) Where income results from a transaction partially in this
state and partially in another state or states, andincome and
deductions of the portion in the state cannot be segregated, then
such portions of income and deductions shallbe allocated in this
state and the other state or states as will distribute to this
state a portion based upon the portion ofthe transaction in this
state and the portion in such other state or states.
(2) The taxpayer may elect to compute the portion of income from
all sources in this state in the followingmanner, or the manner set
forth in subdivision (3) of this subsection:
(a) The income from all sources shall be determined as provided,
excluding therefrom the figures for theoperation of any bridge
connecting this state with another state.
(b) The amount of sales which are transactions wholly in this
state shall be added to one-half of the amountof sales which are
transactions partly within this state and partly without this
state, and the amount thus obtained shallbe divided by the total
sales or in cases where sales do not express the volume of
business, the amount of businesstransacted wholly in this state
shall be added to one-half of the amount of business transacted
partly in this state andpartly outside this state and the amount
thus obtained shall be divided by the total amount of business
transacted, andthe net income shall be multiplied by the fraction
thus obtained, to determine the proportion of income to be used
toarrive at the amount of Missouri taxable income. The investment
or reinvestment of its own funds, or sale of any suchinvestment or
reinvestment, shall not be considered as sales or other business
transacted for the determination of saidfraction.
(c) For the purposes of this subdivision, a transaction
involving the sale of tangible property is: a. "Wholly in this
state" if both the seller's shipping point and the purchaser's
destination point are in this state; b. "Partly within this state
and partly without this state" if the seller's shipping point is in
this state and the
purchaser's destination point is outside this state, or the
seller's shipping point is outside this state and the
purchaser'sdestination point is in this state;
c. Not "wholly in this state" or not "partly within this state
and partly without this state" only if both the seller'sshipping
point and the purchaser's destination point are outside this
state.
(d) For purposes of this subdivision: a. The purchaser's
destination point shall be determined without regard to the FOB
point or other conditions
of the sale; and
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1361 Journal of the House
b. The seller's shipping point is determined without regard to
the location of the seller's principle office or placeof
business.
(3) The taxpayer may elect to compute the portion of income from
all sources in this state in the followingmanner:
(a) The income from all sources shall be determined as provided,
excluding therefrom the figures for theoperation of any bridge
connecting this state with another state;
(b) The amount of sales which are transactions in this state
shall be divided by the total sales, and the netincome shall be
multiplied by the fraction thus obtained, to determine the
proportion of income to be used to arrive atthe amount of Missouri
taxable income. The investment or reinvestment of its own funds, or
sale of any such investmentor reinvestment, shall not be considered
as sales or other business transacted for the determination of said
fraction;
(c) For the purposes of this subdivision, a transaction
involving the sale of tangible property is: a. "In this state" if
the purchaser's destination point is in this state; b. Not "in this
state" if the purchaser's destination point is outside this state;
(d) For purposes of this subdivision, the purchaser's destination
point shall be determined without regard to
the FOB point or other conditions of the sale and shall not be
in this state if the purchaser received the tangible
personalproperty from the seller in this state for delivery to the
purchaser's location outside this state;
(e) For the purposes of this subdivision, a transaction
involving the sale other than the sale of tangibleproperty is "in
this state" if the taxpayer's market for the sales is in this
state. The taxpayer's market for salesis in this state:
a. In the case of sale, rental, lease, or license of real
property, if and to the extent the property is locatedin this
state;
b. In the case of rental, lease, or license of tangible personal
property, if and to the extent the propertyis located in this
state;
c. In the case of sale of a service, if and to the extent the
benefit of the service is delivered to a purchaserlocation in this
state; and
d. In the case of intangible property:(i) That is rented,
leased, or licensed, if and to the extent the property is used in
this state by the rentee,
lessee, or licensee, provided that intangible property utilized
in marketing a good or service to a consumer is"used in this state"
if that good or service is purchased by a consumer who is in this
state. Franchise fees orroyalties received for the rent, lease,
license, or use of a trade name, trademark, service mark, or
franchise systemor provides a right to conduct business activity in
a specific geographic area are "used in this state" to the
extentthe franchise location is in this state; and
(ii) That is sold, if and to the extent the property is used in
this state, provided that:i. A contract right, government license,
or similar intangible property that authorizes the holder to
conduct a business activity in a specific geographic area is
"used in this state" if the geographic area includes allor part of
this state;
ii. Receipts from intangible property sales that are contingent
on the productivity, use, or disposition ofthe intangible property
shall be treated as receipts from the rental, lease, or licensing
of such intangible propertyunder item (I) of this subparagraph;
and
iii. All other receipts from a sales of intangible property
shall be excluded from the numerator anddenominator of the sales
factor;
(f) If the state or states of assignment under paragraph (e) of
this subdivision cannot be determined, thestate or states of
assignment shall be reasonably approximated;
(g) If the state of assignment cannot be determined under
paragraph (e) of this subdivision or reasonablyapproximated under
paragraph (f) of this subdivision, such sales shall be excluded
from the denominator of thesales factor;
(h) The director may prescribe such rules and regulations as
necessary or appropriate to carry out thepurposes of this
section.
(4) For purposes of this subsection, the following words shall,
unless the context otherwise requires, have thefollowing
meaning:
(a) "Administration services" include, but are not limited to,
clerical, fund or shareholder accounting,participant record
keeping, transfer agency, bookkeeping, data processing, custodial,
internal auditing, legal and taxservices performed for an
investment company;
(b) "Affiliate", the meaning as set forth in 15 U.S.C. Section
80a-2(a)(3)(C), as may be amended from timeto time;
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Fifty-ninth Day–Tuesday, April 29, 2014 1362
(c) "Distribution services" include, but are not limited to, the
services of advertising, servicing, marketing,underwriting or
selling shares of an investment company, but, in the case of
advertising, servicing or marketing shares,only where such service
is performed by a person who is, or in the case of a closed end
company, was, either engagedin the services of underwriting or
selling investment company shares or affiliated with a person that
is engaged in theservice of underwriting or selling investment
company shares. In the case of an open end company, such service
ofunderwriting or selling shares must be performed pursuant to a
contract entered into pursuant to 15 U.S.C. Section 80a-15(b), as
from time to time amended;
(d) "Investment company", any person registered under the
federal Investment Company Act of 1940, asamended from time to
time, (the act) or a company which would be required to register as
an investment company underthe act except that such person is
exempt to such registration pursuant to Section 80a-3(c)(1) of the
act;
(e) "Investment funds service corpo