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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? God says: Walk straight, act right, tell the truth, don't hurt your friend, don't blame your neighbor, keep your word even when it 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 protection over us and Your provision that sustains us. Help us God, to throw off our shackles of destruction that destroy us, and God give us a glorious new song. Abide in us today to keep these words of the Psalmist David foremost in our minds as 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 without compensation: 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

JOURNAL OF THE HOUSE · 2014. 4. 30. · JOURNAL OF THE HOUSE Second Regular Session, 97th GENERAL ASSEMBLY FIFTY-NINTH DAY, TUESDAY, APRIL 29, 2014 The House met pursuant to adjournment

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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

  • 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

  • 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

  • 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.

  • 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.

  • 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.

  • 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.

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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.

  • 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;

  • 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.

  • 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.

  • 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.

  • 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

  • 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.

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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;

  • 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