FIRST REGULAR SESSION

HOUSE BILL NO. 579

91ST GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVES LUETKEMEYER, SECREST (Co-sponsors), MOORE,

BEARDEN, NORDWALD, FROELKER AND PHILLIPS.

Read 1st time January 30, 2001, and 1000 copies ordered printed.

TED WEDEL, Chief Clerk

0149L.02I

AN ACT

To amend chapter 287, RSMo, by adding thereto one new section relating to S corporations.



Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Chapter 287, RSMo, is amended by adding thereto one new section, to be known as section 287.036, to read as follows:

287.036. Notwithstanding any other provision of law to the contrary, beginning January 1, 2002, those insurance companies providing coverage pursuant to this chapter, to a corporation, as defined in article XI, section 1, of the Constitution of the State of Missouri, which claims the status of an S corporation pursuant to the Internal Revenue Code of the United States, subchapter S, shall also provide coverage for officers of the corporation who are also employees of the corporation, and for other employees of the corporation, consistent with section 287.030; except that the president, vice president, secretary, and treasurer of the corporation may individually elect to reject such coverage by providing a written notice of such rejection on a form developed by the department of insurance to the corporation and its insurer; and except that when calculating the number of employees of the corporation for purposes of subdivision (3) of subsection 1 of section 287.030, officers who have elected to reject coverage shall be deemed employees. Failure to provide notice to the corporation shall not be grounds for any officer to claim that the rejection of such coverage is not legally effective. An officer who elects to reject such coverage shall not thereafter be entitled to workers' compensation benefits under the policy, even if serving or working in the capacity of an employee of the corporation, at least until such time as said officer provides the corporation and its insurer with a written notice which rescinds the prior rejection of such coverage. The written notice which rescinds the prior rejection of such coverage shall be on a form developed by the department of insurance. Any rescission shall be prospective in nature and shall entitle the officer only to such benefits which accrue on or after the date the notice of rescission form is received by the insurance company.


Missouri House of Representatives