Journal of the House

First Regular Session, 91st General Assembly

SIXTY-THIRD DAY, Thursday, April 26, 2001

Speaker Pro Tem Abel in the Chair.

Prayer by Representative Gary Marble.

Dear Heavenly, thank You for this beautiful day and the many blessings of life. Thank You for the opportunity to serve You in this Honored Body. Thank You for our families who willingly sacrifice every day, so we can serve. And, most of all, thank You for Your son who has given us the hope of eternal life.

Now, Father, I pray, as we look forward to the work before us this day and the coming three weeks; that You will give us wisdom and help us to follow Your directions as found in Micah 6:8: "He has shown You, O man, what does the Lord require of you but to do justly, to love mercy, and to walk humbly with your God."

For it's in Jesus name I 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: Nicole Ottersburg, Jamie Hillier, Andrew Nabors, Olivia Crain, Cassie Wright, April Willsie, Amber Clifton, Whitney Dameron, Krystal Himes, Amanda Theiler, Elizabeth Kimack, Jennifer Horton, Latasha Brock, Kareema Harrell, Amanda Rackers, Sarah Estep, Honnah Marshall, Grace Miller, Ethan S. Musick, Richie Shy, Clint Blevins and Rob Morgan.

The Journal of the sixty-second day was approved as corrected.

HOUSE COURTESY RESOLUTIONS OFFERED AND ISSUED

House Resolution No. 1669 - Representative Berkstresser

House Resolution No. 1670 - Representative Champion

House Resolution No. 1671 - Representative Berkstresser

House Resolution No. 1672 - Representatives Berkstresser and Robirds

House Resolution No. 1673 - Representative George

House Resolution No. 1674 - Representative Davis

House Resolution No. 1675

through

House Resolution No. 1677 - Representative King

House Resolution No. 1678 - Representatives Bartle and Cunningham

House Resolution No. 1679 - Representative Wiggins

House Resolution No. 1680

and

House Resolution No. 1681 - Representative Williams

House Resolution No. 1682 - Representative Ostmann

House Resolution No. 1683 - Representative Riback Wilson (25), et al

House Resolution No. 1684 - Representative Walton

House Resolution No. 1685

and

House Resolution No. 1686 - Representative Enz

House Resolution No. 1687

through

House Resolution No. 1693 - Representatives Williams and Berkstresser

House Resolution No. 1694

and

House Resolution No. 1695 - Representative Merideth

House Resolution No. 1696 - Representative Barry

House Resolution No. 1697 - Representative Hollingsworth

House Resolution No. 1698

through

House Resolution No. 1711 - Representative Jetton

House Resolution No. 1712 - Representative Farnen

SECOND READING OF SENATE JOINT RESOLUTION

SS SCS SJRs 1 & 4 was read the second time.

SECOND READING OF SENATE BILLS

SCS SBs 247 & 330 and SS SCS SBs 551, 410, 539, 528 & 296 were read the second

time.

COMMITTEE REPORT

Committee on Rules, Joint Rules, and Bills Perfected and Printed, Chairman Crump reporting:

Mr. Speaker: Your Committee on Rules, Joint Rules, and Bills Perfected and Printed, to which was referred HCS HB 14, HCS HB 428 and HS HB 555, begs leave to report it has examined the same and finds them to be truly perfected and that the printed copies thereof furnished the members are correct.

THIRD READING OF SENATE BILLS - CONSENT

HCS SB 321, relating to sheltered workshops, was taken up by Representative Crump.

On motion of Representative Crump, HCS SB 321 was adopted.

On motion of Representative Crump, HCS SB 321 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

HCS SCS SB 151, relating to auto insurance, was taken up by Representative Gaskill.

On motion of Representative Gaskill, HCS SCS SB 151 was adopted.

On motion of Representative Gaskill, HCS SCS SB 151 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

Representative Carnahan assumed the Chair.

SCS SB 234, relating to the sales/use tax: telecommunications, was taken up by Representative Kennedy.

On motion of Representative Kennedy, SCS SB 234 was truly agreed to and finally passed by the following vote:

Representative Carnahan declared the bill passed.

SB 553, relating to conveyance in Nodaway County, was taken up by Representative Barnett.

On motion of Representative Barnett, SB 553 was truly agreed to and finally passed by the following vote:

Representative Carnahan declared the bill passed.

SCS SB 270, relating to administrative law judges, was taken up by Representative Monaco.

On motion of Representative Monaco, SCS SB 270 was truly agreed to and finally passed by the following vote:

Representative Carnahan declared the bill passed.

Speaker Pro Tem Abel resumed the Chair.

THIRD READING OF HOUSE BILL - APPROPRIATIONS

HCS HB 14, relating to appropriations, was taken up by Representative Green (73).

On motion of Representative Green (73), HCS HB 14 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

Representative Liese assumed the Chair.

Speaker Pro Tem Abel resumed the Chair.

THIRD READING OF HOUSE JOINT RESOLUTION

HCS HJR 7, relating to the transportation commission, was taken up by Representative Koller.

On motion of Representative Koller, HCS HJR 7 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

Representative Berkowitz requested a verification of the roll call on the third reading and final passage of HCS HJR 7.

THIRD READING OF HOUSE BILL

HB 436, relating to the Missouri Airport Protection Act, was taken up by Representative Merideth.

On motion of Representative Merideth, HB 436 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

HS HB 349, relating to protection of the elderly, was taken up by Representative Hosmer.

On motion of Representative Hosmer, HS HB 349 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

HS HCS HB 488, relating to tourism, was taken up by Representative Koller.

On motion of Representative Koller, HS HCS HB 488 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

HCS HB 660, relating to public school retirement, was taken up by Representative Hagan-Harrell.

On motion of Representative Hagan-Harrell, HCS HB 660 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

The emergency clause was adopted by the following vote:

HB 678, relating to ethics, was taken up by Representative Seigfreid.

On motion of Representative Seigfreid, HB 678 was read the third time and passed by the following vote:

Speaker Pro Tem Abel declared the bill passed.

Representative Villa assumed the Chair.

HCS HB 426, relating to retirement, was taken up by Representative O'Toole.

On motion of Representative O'Toole, HCS HB 426 was read the third time and passed by the following vote:

Representative Villa declared the bill passed.

HCS HB 831, relating to crime victims' compensation, was taken up by Representative Carnahan.

On motion of Representative Carnahan, HCS HB 831 was read the third time and passed by the following vote:

Representative Villa declared the bill passed.

PERFECTION OF HOUSE BILLS - APPROPRIATIONS

HB 16, with House Committee Amendment No. 1, relating to appropriations, was taken up by Representative Green (73).

On motion of Representative Green (73), House Committee Amendment No. 1 was adopted.

Representative Green (73) offered House Amendment No. 1.

House Amendment No. 1

AMEND House Bill No. 16, Page 25, Section 16.170, Line 5, by deleting the number "152" and inserting in lieu thereof the following: "389, Section 612"; and

Further amend said bill, Page 25, Section 16.172, Line 5, by deleting the number "152" and inserting in lieu thereof the following: "389, Section 612"; and

Further amend said bill, Page 26, Section 16.174, Line 5, by deleting the number "152" and inserting in lieu thereof the following: "389, Section 612".

On motion of Representative Green (73), House Amendment No. 1 was adopted.

On motion of Representative Green (73), HB 16, as amended, was ordered perfected and printed.

HB 17, with House Committee Amendment No. 1, relating to appropriations, was taken up by Representative Green (73).

On motion of Representative Green (73), House Committee Amendment No. 1 was adopted.

Representative Ransdall offered House Amendment No. 1.

House Amendment No. 1

AMEND House Bill No. 17, Page 27, Section 17.176, Line 2, by deleting from said line the word "part" and inserting in lieu thereof the word "park".

On motion of Representative Ransdall, House Amendment No. 1 was adopted.

Representative Bray offered House Amendment No. 2.

House Amendment No. 2

AMEND House Bill No. 17, Page 35, Section 17.218, Lines 1-8, by deleting all of said Section.

Speaker Pro Tem Abel resumed the Chair.

Representative Bray moved that House Amendment No. 2 be adopted.

Which motion was defeated by the following vote:

On motion of Representative Green (73), HB 17, as amended, was ordered perfected and printed.

PERFECTION OF HOUSE BILLS - INFORMAL

HCS HB 279, relating to screening of newborns, was taken up by Representative Shoemyer.

On motion of Representative Shoemyer, HCS HB 279 was adopted.

On motion of Representative Shoemyer, HCS HB 279 was ordered perfected and printed.

HCS HBs 981 & 665, relating to tort immunity for teachers, was taken up by Representative Willoughby.

Representative Willoughby offered HS HCS HBs 981 & 665.

Representative Willoughby offered House Amendment No. 1.

House Amendment No. 1

AMEND House Substitute for House Committee Substitute for House Bill Nos. 981 & 665, Page 6, Section 160.261, Line 16, by deleting all of said line and inserting in lieu thereof the following:

"State law, acts of school violence, within the".

Representative Shields offered House Substitute Amendment No. 1 for House Amendment No. 1.

House Substitute Amendment No. 1

for

House Amendment No. 1

AMEND House Substitute for House Committee Substitute for House Bill Nos. 981 & 665, Page 6, Section 160.261, Line 16, by deleting all of said line and inserting in lieu thereof the following:

"state law, acts of school violence or threatened acts of school violence, within the".

On motion of Representative Shields, House Substitute Amendment No. 1 for House Amendment No. 1 was adopted.

On motion of Representative Willoughby, HS HCS HBs 981 & 665, as amended, was adopted.

On motion of Representative Willoughby, HS HCS HBs 981 & 665, as amended, was ordered perfected and printed.

HCS HB 780, relating to economic development, was taken up by Representative Scheve.

Representative Scheve offered House Amendment No. 1.

House Amendment No. 1

AMEND House Committee Substitute for House Bill No. 780, Page 8, Section 135.200, Line 52, by deleting all of said line and inserting in lieu thereof the following:

"thousand eight hundred and classified as SIC 7011 or NAICS 72111. Notwithstanding any other provisions of law to the contrary, hotel and motel activities as defined in this subdivision shall not be eligible for state enterprise zone tax credits but shall be eligible for the real property improvements exemption provided in subsection 1 of section 135.215, regardless of the number of new jobs created and maintained;"; and

Further amend said bill, Page 13, Section 135.208, Line 87, by deleting all of said line and inserting in lieu thereof the following: "population of at least one thousand four hundred but less than one thousand four hundred fifty inhabitants and"; and

Further amend said bill, Page 13, Section 135.208, Lines 90 and 91, by deleting all of said lines and inserting in lieu thereof the following: "rule city with a population of at least twenty-two thousand two hundred but less than twenty-two thousand four hundred inhabitants and located in a county of the first"; and

Further amend said bill, Page 14, Section 135.208, Lines 96 and 97, by deleting all of said lines and inserting in lieu thereof the following: "fourth class city with a population of at least two thousand seven hundred but less than two thousand seven hundred ten inhabitants and located in a county of the first classification with"; and

Further amend said bill, Page 17, Section 135.411, Line 8, by inserting after all of said line the following:

"135.478. As used in sections 135.481 to 135.487, the following terms mean:

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

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

(3) "Distressed community", as defined in section 135.530;

(4) "Eligible costs for a new residence", expenses incurred for property acquisition, development, site preparation [other than demolition], surveys, architectural and engineering services and construction and all other necessary and incidental expenses incurred for constructing a new market rate residence, which is or will be owner-occupied, which is not replacing a national register listed or local historic structure; except that, costs paid for by the taxpayer with grants or forgivable loans, other than tax credits, provided pursuant to state or federal governmental programs are ineligible;

(5) "Eligible costs for rehabilitation", expenses incurred for the renovation or rehabilitation of an existing residence including site preparation, surveys, architectural and engineering services, construction, modification, expansion, remodeling, structural alteration, replacements and alterations; except that, costs paid for by the taxpayer with grants or forgivable loans other than tax credits provided pursuant to state or federal governmental programs are ineligible;

(6) "Eligible residence", a single-family residence forty years of age or older, located in this state and not within a distressed community as defined by section 135.530, which is occupied or intended to be or occupied long-term by the owner or offered for sale at market rate for owner-occupancy and which is either located within a United States census block group which, if in a metropolitan statistical area, has a median household income of less than ninety percent, but greater than or equal to seventy percent of the median household income for the metropolitan statistical area in which the census block group is located, or which, if located within a United States census block group in a nonmetropolitan area, has a median household income of less than ninety percent, but greater than or equal to seventy percent of the median household income for the nonmetropolitan areas in the state. An eligible residence shall include a condominium or residence within a multiple residential structure or a structure containing multiple single family residences;

(7) "Flood plain", any land or area susceptible to being inundated by water from any source or located in a one hundred-year flood plain area determined by Federal Emergency Management Agency mapping as subject to flooding;

(8) "New residence", a residence constructed on land which if located within a distressed community has either been vacant for at least two years or is or was occupied by a structure which has been condemned by the local entity in which the structure is located or which, if located outside of a distressed community but within a census block group as described in subdivision (6) or (10) of this section, either replaces a residence forty years of age or older demolished for purposes of constructing a replacement residence, or which is constructed on vacant property which has been classified for not less than forty continuous years as residential or utility, commercial, railroad or other real property pursuant to article X, section 4(b) of the Missouri Constitution, as defined in section 137.016, RSMo, or, if not a first class county with a charter form of government, vacant property classified residential or agricultural and horticultural property, as defined in section 137.016, RSMo; except that, no new residence shall be constructed in a flood plain or on property used for agricultural purposes. In a distressed community, the term "new residence" shall include condominiums, owner-occupied units or other units intended to be owner-occupied in multiple unit structures;

(9) "Project", new construction, rehabilitation or substantial rehabilitation of a residence or residences, whether comprised of one structure containing multiple single-family residences or multiple individual structures that [qualifies] qualify for a tax credit pursuant to sections 135.475 to 135.487;

(10) "Qualifying residence", a single-family residence, forty years of age or older, located in this state which is occupied or intended to be occupied long-term by the owner or offered for sale at market rate for owner-occupancy and which is located in a metropolitan statistical area or nonmetropolitan statistical area within a United States census block group which has a median household income of less than seventy percent of the median household income for the metropolitan statistical area or nonmetropolitan area, respectively, or which is located within a distressed community. A qualifying residence shall include a condominium or residence within a multiple residential structure or a structure containing multiple single-family residences which is located within a distressed community;

(11) "Substantial rehabilitation", rehabilitation the costs of which exceed fifty percent of either the purchase price or the cost basis of the structure immediately prior to rehabilitation; provided that, the structure is at least fifty years old notwithstanding any provision of sections 135.475 to 135.487 to the contrary;

(12) "Tax liability", the tax due pursuant to chapter 143, 147 or 148, RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265, RSMo;

(13) "Taxpayer", any person, partnership, corporation, trust or limited liability company.

135.481. 1. (1) Any taxpayer who incurs eligible costs for a new residence located in a distressed community or within a census block group as described in subdivision (6) or (10) of section 135.478, or for a multiple unit condominium described in subdivision (2) of this subsection, shall receive a tax credit equal to [fifteen] twenty percent of such costs against his or her tax liability. The tax credit shall not exceed forty thousand dollars per new residence in any ten-year period.

(2) For the purposes of this section, a "multiple unit condominium" is one that is intended to be owner occupied, which is constructed on property subject to an industrial development contract as defined in section 100.310, RSMo, and which lies within an area with a city zoning classification of urban redevelopment district established after January 1, 2000, and before December 31, 2001, and which is constructed in connection with the qualified rehabilitation of a structure more than ninety years old eligible for the historic structures rehabilitation tax credit described in sections 253.545 to 253.559, RSMo, and is under way by January 1, 2000, and completed by January 1, 2002.

[2. Any taxpayer who incurs eligible costs for a new residence located within a census block as described in subdivision (6) of section 135.478 shall receive a tax credit equal to fifteen percent of such costs against his or her tax liability. The tax credit shall not exceed twenty-five thousand dollars per new residence in any ten-year period.]

[3.] 2. Any taxpayer who is not performing substantial rehabilitation and who incurs eligible costs for rehabilitation of an eligible residence or a qualifying residence shall receive a tax credit equal to twenty-five percent of such costs against his or her tax liability. The minimum eligible costs for rehabilitation of an eligible residence shall be ten thousand dollars. The minimum eligible costs for rehabilitation of a qualifying residence shall be five thousand dollars. The tax credit shall not exceed twenty-five thousand dollars in any ten-year period.

[4.] 3. Any taxpayer who incurs eligible costs for substantial rehabilitation of a qualifying residence shall receive a tax credit equal to thirty-five percent of such costs against his or her tax liability. The minimum eligible costs for substantial rehabilitation of a qualifying residence shall be ten thousand dollars. The tax credit shall not exceed seventy thousand dollars in any ten-year period.

[5.] 4. A taxpayer shall be eligible to receive tax credits for new construction or rehabilitation pursuant to only one subsection of this section.

[6.] 5. No tax credit shall be issued pursuant to this section for any structure which is in violation of any municipal or county property, maintenance or zoning code.

[7.] 6. No tax credit shall be issued pursuant to sections 135.475 to 135.487 for the construction or rehabilitation of rental property."; and

Further amend said bill, Page 17, Section 135.484, Line 3, by deleting from said line the word "initially"; and

Further amend said bill, Page 18, Section 135.484, Line 16, by deleting from said line the word "sixty"; and

Further amend said bill, Page 18, Section 135.484, Lines 17 and 18, by deleting all of said lines and inserting in lieu thereof the following: "The maximum tax credit for a project [consisting of multiple-unit qualifying residences in a distressed community] shall not exceed [three] one million five hundred thousand dollars."; and

Further amend said bill, Page 18, Section 135.484, Line 35, by inserting after all of said line the following:

"135.487. 1. To obtain any credit allowed pursuant to sections 135.475 to 135.487, a taxpayer shall submit to the department, for preliminary approval, an application for tax credit. The director shall, upon final approval of an application and presentation of acceptable proof of substantial completion of construction, issue the taxpayer a certificate of tax credit. In the case of projects involving the new construction, rehabilitation or substantial rehabilitation of more than one residence, one application for tax credit may be submitted to the department for preliminary approval for the entire project, and the director shall issue the taxpayer a certificate of tax credit upon final approval of an application and presentation of acceptable proof of substantial completion of construction for each individual residence rather than delaying issuance of a tax credit pursuant to sections 135.475 to 135.487 until substantial completion of the entire project. The director shall issue all credits allowed pursuant to sections 135.475 to 135.487 in the order the applications are received. In the case of a taxpayer other than an owner-occupant, the director shall not delay the issuance of a tax credit pursuant to sections 135.475 to 135.487 until the sale of a residence at market rate for owner-occupancy. A taxpayer, taxpayer other than an owner-occupant who receives a certificate of tax credit pursuant to sections 135.475 to 135.487 shall, within thirty days of the date of the sale of a residence, furnish to the director satisfactory proof that such residence was sold at market rate for owner- occupancy. If the director reasonably determines that a residence was not in good faith intended for long-term owner occupancy, the director make revoke any tax credits issued and seek recovery of any tax credits issued pursuant to section 620.017, RSMo.

2. The department may cooperate with a municipality or a county in which a project is located to help identify the location of the project, the type and eligibility of the project, the estimated cost of the project and the completion date of the project.

3. The department may promulgate such rules or regulations or issue administrative guidelines as are necessary to administer the provisions of sections 135.475 to 135.487. No rule or portion of a rule promulgated pursuant to the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.

4. The department shall conduct annually a comprehensive program evaluation illustrating where the tax credits allowed pursuant to sections 135.475 to 135.487 are being utilized, explaining the economic impact of such program and making recommendations on appropriate program modifications to ensure the program's success."; and

Further amend said bill, Page 19, Section 135.500, Lines 17 and 18, by deleting from said lines the following: "or qualified Missouri agricultural business"; and

Further amend said bill, Page 19, Section 135.500, Lines 23 and 24, by deleting all of said lines and inserting in lieu thereof the following:

"(4) "Certified capital investment", an investment of cash by an investor in a Missouri certified capital company that fully funds either the investor's equity interest in a certified capital company, a qualified debt instrument that a certified capital company issues, or both;"; and

Further amend said bill, Page 19, Section 135.500, Line 38, by deleting all of said line and inserting in lieu thereof the following:

"(11) "Qualified debt instrument", a debt instrument that a certified capital company issues at par value or at a premium that:

(a) Has an original maturity date of at least five years from the date on which it was issued;

(b) Has a repayment schedule that is no faster than a level principal amortization; and

(c) Until the certified capital company may make distributions other than qualified distributions, the interest, distribution or payment features of which are not related to the certified capital company's profitability or the performance of its investment portfolio;

(12) "Qualified distribution", any distribution of payment to equity holders of a certified"; and

Further amend said bill, Page 19, Section 135.500, Lines 42 and 43, by deleting all of said lines and inserting in lieu thereof the following:

"(b) Management fees for managing and operating the certified capital company [; and] which, on an annual basis, do not exceed two and one-half percent of the certified capital company's total certified capital;

(c) Reasonable and necessary fees paid for professional services related to the operation of the certified capital company; and

[(c)] (d) Any increase in federal or state taxes, penalties and interest, including those related"; and

Further amend said bill, Page 19, Section 135.500, Line 46, by deleting the number "(12)" and inserting in lieu thereof the following: "[(12)] (13)"; and

Further amend said bill, Page 19, Section 135.500, Lines 47 and 48, by deleting all of said lines and inserting in lieu thereof the following:

"company in such a manner as to acquire capital in a qualified Missouri business. The investment must also be for the purchase of an equity security of the qualified business or a debt security of the qualified business, provided the debt has a maturity of at least one year. Other than debt securities issued by a qualified business located in a distressed community or by a qualified Missouri agricultural business, the debt security must be unsecured or be convertible into equity securities or equity participation instruments such as options or warrants. As a condition of the investment, the qualified business must agree to retain its headquarters and principal business operations in the state, or in a distressed community, if the investment is to be credited to a distressed community allocation, for three years following any qualified investment;"; and

Further amend said bill, Page 19, Section 135.500, Line 49, by deleting therefrom the number "(13)" and inserting in lieu thereof the following: "(14)"; and

Further amend said bill, Page 20, Section 135.500, Lines 59 to 75, by deleting all of said lines and inserting in lieu thereof the following:

"[(13)] (15) "Qualified Missouri business", an independently owned and operated business, which is headquartered and [located] has its principal business operations in Missouri and which is in need of venture capital and cannot obtain conventional financing. Such business:

(a) Shall have no more than two hundred employees[,];

(b) Shall have at least eighty percent of [which are] its employees employed in Missouri[. Such business];

(c) Shall be involved in commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, real estate, real estate development, insurance and professional services provided by accountants, lawyers or physicians[.];

(d) If [such business] it has been in existence for three years or less, its gross sales during its most recent complete fiscal years shall not have exceeded four million dollars. If such business has been in existence for longer than three years, its gross sales during its most recent complete fiscal year shall not have exceeded three million dollars[.];

(e) Shall certify that it will maintain its headquarters and principal business operations in this state, or in a distressed community, if the investment is to be credited to a distressed community allocation, for three years following any qualified investment; and

(f) If any business which is classified as a qualified Missouri business at the time of the first investment in such business by a Missouri certified capital company shall, for a period of seven years from the date of such first investment, remain classified as a qualified Missouri business and may receive follow-on investments from any Missouri certified capital company and such follow-on investments shall be qualified investments even though such business may not meet the [other] qualifications of paragraphs (a), (b) and (d) of this [subsection] subdivision at the time of such follow-on investments, provided, however, that such business continues to meet the other requirements set forth in this subdivision, and such business reaffirms its intention to maintain its headquarters and its principal business operations in this state, or in a distressed community, if the investment is to be credited to a distressed community allocation;"; and

Further amend said bill, Page 20, Section 135.500, Line 76, by deleting the number "(15)" and inserting in lieu thereof the following: "(16)"; and

Further amend said bill, Page 21, Section 135.503, Line 24, by deleting from said line the opening bracket "["; and

Further amend said bill, Page 21, Section 135.503, Lines 30 to 38, by deleting all of said lines and inserting in lieu thereof the following: "to subsection 1 of this section. During any calendar year in which the limitation described in this subsection will limit"; and

Further amend said bill, Page 22, Section 135.503, Line 50, by deleting all of said line and inserting in lieu thereof the following: "following: for calendar year 1999 [and for any year thereafter,] an amount to be determined by the"; and

Further amend said bill, Page 22, Section 135.503, Line 52, by inserting after the word "year" the following:

"; and for calendar year 2002, an amount to be determined by the director, but not to exceed forty million dollars, entitling all Missouri certified capital company investors in the applicable funds to take aggregate credits not to exceed four million dollars for any year,"; and

Further amend said bill, Page 22, Section 135.503, Line 56, by inserting after the number "4" the following: "or 5"; and

Further amend said bill, Page 22, Section 135.503, Lines 60 to 64, by deleting all of said lines and inserting in lieu thereof the following:

"subdivision [(13)] (15) of subsection 2 of section 135.500 means:

(a) A Missouri business that is located in a distressed community as defined in section 135.530, has at least eighty percent of its employees in distressed communities, and meets all of the requirements of subdivision [(13)] (15) of subsection 2 of section 135.500, except that its gross sales during its most recent complete fiscal year shall not have exceeded five million dollars; or

(b) With respect to certified capital invested in 2002, a qualified Missouri agricultural business.

During any calendar year in which the limitation described in this subsection limits the amount"; and

Further amend said bill, Page 22, Section 135.503, Line 79, by inserting after the number "4" the following: "or 5"; and

Further amend said bill, Page 23, Section 135.503, Line 81, by inserting after all of said line the following:

"7. In no event shall the cumulative amount of tax credits authorized by this section exceed one hundred eighty million dollars.

135.508. 1. The department may certify profit or not-for-profit entities which submit an application to be designated as a Missouri certified capital company. The department shall review the organizational documents for each applicant for certification and the business history of the applicant, determine that the Missouri certified capital company's cash, marketable securities and other liquid assets are at least five hundred thousand dollars, determine that the liquid asset base for certified companies is at least five hundred thousand dollars at all times during the company's participation in the program authorized by sections 135.500 to 135.529, and determine that the officers and the board of directors, partners, trustees or managers are thoroughly acquainted with the requirements of sections 135.500 to 135.529.

2. To be certified, at least two of the principals have a minimum of five years of experience making venture capital investments out of private equity funds, with no less than twenty million dollars being provided by third-party investors for investment in the early stage of operating businesses. At least one full-time manager or principal of the certified capital company who has such experience must be primarily located in an office of the certified capital company which is based in this state.

3. To be certified, there must be no evidence that the applicant has:

(1) Violated any provision of this law;

(2) Made a material misrepresentation or false statement or concealed any essential or material fact from any person during the application process or with respect to information and reports required of certified capital companies pursuant to this law;

(3) Been convicted of, or entered a plea of guilty or nolo contendere to, a crime against the laws of this state or any other state or of the United States or any other country or government, including a fraudulent act in connection with the operation of a certified capital company, or in connection with the performance of fiduciary duties in another capacity;

(4) Been adjudicated liable in a civil action on grounds of fraud, embezzlement, misrepresentation or deceit; or

(5) Been the subject of any decision, finding, injunction, suspension, prohibition, revocation, denial, judgment or administrative order by any court of competent jurisdiction, administrative law judge, or any state or federal agency, national securities, commodities, or option exchange, or national securities, commodities or option association, involving a material violation of any federal or state securities or commodities law or any rule or regulation adopted pursuant to such law, or any rule or regulation of any national securities, commodities or options exchange, or national securities, commodities or options association; or

(6) Been the subject of any injunction or adverse administrative order by a state or federal agency regulating banking, insurance, finance or small loan companies, real estate, mortgage brokers or other related or similar industries.

4. No insurance company which receives tax credits permitted under sections 135.500 to 135.529 for an investment in a Missouri certified capital company shall, individually or with or through one or more affiliates, be a managing general partner of or control the direction of investments of that Missouri certified capital company. Within seventy-five days of application, the department shall either issue the certification and notify the department of revenue and the director of the department of insurance of such certification or shall refuse the certification and communicate in detail to the applicant the grounds for the refusal, including the suggestions for the removal of those grounds.

5. The department shall be responsible for the administration of the tax credits authorized by sections 135.500 to 135.529. No rule or portion of a rule promulgated under the authority of sections 135.500 to 135.529 shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo. All rulemaking authority delegated prior to June 27, 1997, is of no force and effect and repealed; however, nothing in this section shall be interpreted to repeal or affect the validity of any rule filed or adopted prior to June 27, 1997, if such rule complied with the provisions of chapter 536, RSMo. The provisions of this section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, including the ability to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule, are subsequently held unconstitutional, then the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void."; and

Further amend said bill, Page 23, Section 135.516, Lines 11 to 14, by deleting all of said lines and inserting in lieu thereof the following: "capital shall be, or have been, placed in qualified investments. A Missouri certified capital company may not make an investment in"; and

Further amend said bill, Page 24, Section 135.516, Lines 38 to 46, by deleting all of said lines and inserting in lieu thereof the following:

"which has been placed in qualified investments and can be received by the company[, may be held or invested in such manner as the Missouri certified capital company, in its discretion, deems appropriate]:

(a) Shall be held in a financial institution or held by a registered broker-dealer;

(b) Shall not be invested in a certified investor of the certified capital company or any affiliate of the certified investor of the certified capital company other than a result of an investment permitted by subparagraph c of paragraph (c) of subdivision (5) of subsection 1 of this section;

(c) Shall be invested only in:

a. Any United States Treasury obligations;

b. Certificates of deposit or other obligations, maturing within three years after acquisitions of such certificates or obligations, issued by a financial institution or trust company incorporated pursuant to the laws of the United States;

c. Obligations which (i) are rated "A" or better by any nationally recognized credit rating agency, or (ii) issued by, or guaranteed with respect to payment by, an entity whose unsecured indebtedness is rated "A" or better by any nationally recognized credit rating agency and which is not subordinated to other unsecured indebtedness of the issuer or guarantor, as the case may be;

d. Mortgage-backed securities, with an average life of five years or less, after the acquisition of such securities, which are rated "A" or better by any nationally recognized credit rating agency;

e. Collateralized mortgage obligations and real estate mortgage investment conduits that are direct obligations of an agency of the United States government, are not private-label issues, are in book-entry form, and do not include the classes of interest only, principal only, residual or zero; or

f. Interests in money market funds, the portfolio of which is limited to cash and obligations described in subparagraphs a to e of this paragraph.

2. The"; and

Further amend said bill, Page 24, Section 135.516, Line 51, by deleting from said line the number "2." and inserting in lieu thereof the following: "[2.] 3."; and

Further amend said bill, Page 24, Section 135.516, Lines 54 to 56, by deleting all of said lines and inserting in lieu thereof the following: "investments. Cumulative distributions to equity holders, other than"; and

Further amend said bill, Page 25, Section 135.516, Line 72, by inserting after all of said line the following:

"4. In the event that a business in which a qualified investment is made fails to comply with its agreement to retain its headquarters and principal business operations in the state, or in a distressed community, if the investment is to be credited to a distressed community allocation, for three years following any qualified investment, by relocating its headquarters or principal business operations of such business within the state to another state, the cumulative amount of qualified investment shall be reduced for purposes of this subsection only by the amount of such qualified investment, unless:

(1) The certified capital company invests an amount of at least equal to the investment of certified capital in the relocated business in a qualified business located in the state or in a distressed community, if the investment is to be credited to a distressed community allocation, within six months of the relocation; or

(2) The business demonstrates that it has returned its principal business operations to Missouri or a distressed community, if the investment is to be credited to a distressed community allocation, within three months of such relocation."; and

Further amend said bill, Page 25, Section 135.516, Line 73, by deleting the number "3." and inserting in lieu thereof the following: "[3.] 5."; and

Further amend said bill, Page 25, Section 135.516, Line 76, by deleting the number "4." and inserting in lieu thereof the following: "[4.] 6."; and

Further amend said bill, Page 25, Section 135.516, Line 79, by deleting the number "5." and inserting in lieu thereof the following: "[5.] 7."; and

Further amend said bill, Page 25, Section 135.516, Line 94, by inserting after all of said line the following:

"135.527. 1. On an annual basis, on or before January thirty-first, each certified capital company shall file with the department, on forms or in a manner prescribed by the department, a report for the period ending December thirty-first of the immediately preceding calendar year:

(1) The total dollar amount the certified capital company received from certified investors, the identity of the certified investors and the amount received from each certified investor;

(2) The total dollar amount the certified capital company invested and the amount invested in qualified businesses, together with the identity and location of those businesses and the amount invested in each qualified business; and

(3) The total number of permanent, full-time jobs either created or retained by the qualified business, the average wage of the jobs created or retained, the industry sectors in which the qualified businesses operate and any additional capital invested in qualified businesses from sources other than certified capital companies.

2. The report shall be verified by one or more principals of the certified capital company submitting the form.

3. The department may audit and examine the accounts, books or records of certified capital companies, certified investors and qualified Missouri businesses that received qualified investments for the purpose of ascertaining the correctness of any report filed, and to ascertain a certified capital company's compliance with the provisions of sections 135.500 to 135.529.

4. Beginning on March 31, 2002, and on March thirty-first of each even-numbered year thereafter, the department shall report on a biennial basis to the governor, the speaker of the house of representatives, and the president pro tempore of the senate on or before April first:

(1) The total dollar amount each certified capital company received from all certified investors and any other investor, the identity of the certified investors, and the total amount of premium tax credit used by each certified investor for the previous calendar year;

(2) The total dollar amount invested by each certified capital company and that portion invested in qualified businesses, the identity and location of those businesses, the amount invested in each qualified business and the total number of permanent, full-time jobs created or retained by each qualified business; and

(3) The return for the state as a result of the certified capital company investments, including the extent to which:

(a) Certified capital company investments have contributed to employment growth;

(b) The wage level of businesses in which certified capital companies have invested exceeds the average wage for the county in which the jobs are located; and

(c) The investments of the certified capital companies in qualified businesses have contributed to expanding or diversifying the economic base of the state."; and

Further amend said bill, Page 25, Section 135.530, Line 8, by deleting all of said line and inserting in lieu thereof the following: "statistical area which has a population of at least [two thousand] five hundred, and each block"; and

Further amend said bill, Page 26, Section 135.530, Lines 17 to 22, by deleting all of said lines and inserting in lieu thereof the following:

"decennial census. In metropolitan statistical areas, the definition shall include areas that are designated as either a federal empowerment zone, a federal enhanced enterprise community, or a state enterprise zone that was originally designated prior to January 1, 1986."; and

Further amend said title, enacting clause and intersectional references accordingly.

On motion of Representative Scheve, House Amendment No. 1 was adopted.

Representative Merideth offered House Amendment No. 2.

House Amendment No. 2

AMEND House Committee Substitute for House Bill No. 780, Page 11, Section 67.1360, Line 52, by inserting after all of said line the following:

"135.205. For purposes of sections 135.200 to 135.256, an area must meet all the following criteria in order to qualify as an enterprise zone:

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

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

(3) The resident population of the area must be at least four thousand but not more than seventy-two thousand at the time of designation as an enterprise zone if the area lies within a metropolitan statistical area, as established by the United States Census Bureau; or, if the area does not lie within a metropolitan statistical area, the resident population of the area at the time of designation must be at least one thousand but not more than [twenty] twenty-five thousand inhabitants. If the population of the jurisdiction of the governing authority does not meet the minimum population requirements set forth in this subdivision, the population of the area must be at least fifty percent of the population of the jurisdiction; provided, however, no enterprise zone shall be created which consists of the total area within the political boundaries of a county; and

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

Further amend said title, enacting clause and intersectional references accordingly.

On motion of Representative Merideth, House Amendment No. 2 was adopted.

Representative Foley offered House Amendment No. 3.

House Amendment No. 3

AMEND House Committee Substitute for House Bill No. 780, Page 17, Section 135.230, Line 110, by inserting after all of said line the following:

"135.406. Notwithstanding sections 135.403 and 135.405, no more than one million dollars of the total amount of Missouri small business tax credits available for qualified investments in Missouri small businesses shall be used and made available for qualified investments in Missouri small businesses, which are enterprises which consist of one or more establishments assigned a SIC code of 8731 and the results of the activities of which are designed to be used by establishments assigned a SIC code of 2834, engaged solely in pharmaceutical research and development; but in the event this one million dollar set aside is not used in its entirety by September first of any year, the balance of the credit may be used by other entities qualifying for tax credits under the capital tax credit program as defined in sections 135.400 to 135.430. The limitations of subsection 2 of section 135.403 and section 135.405 upon the amounts of qualified investments, the aggregate of tax credits authorized and the maximum tax credits which may be evidenced by certificates of tax credit issued or owned by a single taxpayer shall not apply to amounts allocated by this section. The director shall give preference in issuing certificates of tax credit to applicants under this section."; and

Further amend said title, enacting clause and intersectional references accordingly.

On motion of Representative Foley, House Amendment No. 3 was adopted.

Representative Jetton offered House Amendment No. 4.

House Amendment No. 4

AMEND House Committee Substitute for House Bill No. 780, Page 17, Section 135.230, Line 110, by inserting after said line the following:

"135.305. A Missouri wood energy producer shall be eligible for a tax credit on taxes otherwise due under chapter 143, RSMo, except sections 143.191 to 143.261, RSMo, as a production incentive to produce processed wood products in a qualified wood producing facility using Missouri forest product residue. The tax credit to the wood energy producer shall be five dollars per ton of processed material. The credit may be claimed for a period of [five] ten years and is to be a tax credit against the tax otherwise due."; and

Further amend the title, enacting clause and intersectional references accordingly.

On motion of Representative Jetton, House Amendment No. 4 was adopted.

Representative Hohulin offered House Amendment No. 5.

House Amendment No. 5

AMEND House Committee Substitute for House Bill No. 780, Page 28, Line 3, by adding the following:

"the owner of a recreational facility located in a third class county of less than 30,000 inhabitants bordered by a state line and two other third class counties shall be eligible for an 80% tax credit for improvements made to such facility. The maximum allowable tax credit for such facility shall be $10,000.".

On motion of Representative Hohulin, House Amendment No. 5 was adopted.

Representative Reid offered House Amendment No. 6.

House Amendment No. 6

AMEND House Committee Substitute for House Bill No. 780, Page 26, Section 620.1450, Line 2, by inserting immediately after said line the following:

"Section 1. For real property tax increment allocation redevelopment projects, no project with the portion of total redevelopment project costs pursuant to section 99.805, RSMo, for retail equal to fifty percent or more of such total costs shall be approved beginning August 28, 2001 to March 1, 2003 in a county of the first classification having a charter form of government and a population greater than nine hundred thousand inhabitants."; and

Further amend title, enacting clause and intersectional references accordingly.

Representative Scheve raised a point of order that House Amendment No. 6 goes beyond the scope of the bill.

The Chair ruled the point of order not well taken.

Representative Reid moved that House Amendment No. 6 be adopted.

Which motion was defeated by the following vote:

Representative Griesheimer offered House Amendment No. 7.

House Amendment No. 7

AMEND House Committee Substitute for House Bill No. 780, Page 26, Line 2, by inserting after all of said line the following:

"447.700. As used in sections 447.700 to 447.718, the following terms mean:

(1) "Abandoned property", real property previously used for, or which has the potential to be used for, commercial or industrial purposes which reverted to the ownership of the state, a county, or municipal government, or an agency thereof, through donation, purchase, tax delinquency, foreclosure, default or settlement, including conveyance by deed in lieu of foreclosure; or a privately owned property endorsed by the city, or county if the property is not in a city, for inclusion in the program which will be transferred to a person other than the potentially responsible party as defined in chapter 260, RSMo, and has been vacant for a period of not less than three years from the time an application is made to the department of economic development;

(2) "Allowable cost", all or part of the costs of project facilities, including the costs of acquiring the property, relocating any remaining occupants, constructing, reconstructing, rehabilitating, renovating, enlarging, improving, equipping or furnishing project facilities, demolition, site clearance and preparation, supplementing and relocating public capital improvements or utility facilities, designs, plans, specifications, surveys, studies and estimates of costs, expenses necessary or incident to determining the feasibility or practicability of assisting an eligible project or providing project facilities, architectural, engineering and legal service fees and expenses, the costs of conducting any other activities as part of a voluntary remediation and such other expenses as may be necessary or incidental to the establishment or development of an eligible project and reimbursement of moneys advanced or applied by any governmental agency or other person for allowable costs. In any third class city with a population of more than eleven thousand but less than twelve thousand inhabitants located in a county of the first classification with a population of more than eighty thousand but less than eighty-two thousand inhabitants, allowable costs shall also include the demolition of any building or structure which is located on the site of an abandoned or underutilized property;

(3) "Applicant", the person that submits an application for consideration of a project or location or real property for financial, tax credit or other assistance pursuant to sections 447.700 to 447.718; an applicant may not be any party who intentionally or negligently caused the release or potential release of hazardous substances at the eligible project as that term is defined pursuant to chapter 260, RSMo;

(4) "Eligible project", abandoned or underutilized property to be acquired, established, expanded, remodeled, rehabilitated or modernized for industry, commerce, distribution or research or any combination thereof, the operation of which, alone or in conjunction with other facilities, will create new jobs or preserve existing jobs and employment opportunities, attract new businesses to the state, prevent existing businesses from leaving the state and improve the economic welfare of the people of the state. The term "eligible project", without limitation, includes voluntary remediation conducted pursuant to sections 260.565 to 260.575, RSMo. To be an "eligible project" pursuant to sections 447.700 to 447.718, the obligations of the prospective applicant and the governmental agency shall be defined in a written agreement signed by both parties. The facility, when completed, shall be operated in compliance with applicable federal, state and local environmental statutes, regulations and ordinances. An "eligible project" shall be determined by consideration of the entire project. The definition or identification of an "eligible project" shall not be segmented into parts to separate commercial and industrial uses from residential uses;

(5) "Financial assistance", direct loans, loan guarantees, and grants pursuant to sections 447.702 to 447.706; and tax credits, inducements and abatements pursuant to section 447.708;

(6) "Governmental action", any action by a state, county or municipal agency relating to the establishment, development or operation of an eligible project and project facilities that the governmental agency has authority to take or provide for the purpose under law, charter or ordinance, including but not limited to, actions relating to contracts and agreements, zoning, building, permits, acquisition and disposition of property, public capital improvements, utility and transportation service, taxation, employee recruitment and training, and liaison and coordination with and among governmental agencies;

(7) "Governmental agency", the state, county and municipality and any department, division, commission, agency, institution or authority, including a municipal corporation, township, and any agency thereof and any other political subdivision or public corporation; the United States or any agency thereof; any agency, commission or authority established pursuant to an interstate compact or agreement and any combination of the above;

(8) "Person", any individual, firm, partnership, association, limited liability company, corporation or governmental agency, and any combination thereof;

(9) "Project facilities", buildings, structures and other improvements and equipment and other property or fixtures, excluding small tools, supplies and inventory, and public capital improvements;

(10) "Public capital improvements", capital improvements or facilities owned by a governmental agency and which such agency has authority to acquire, pay the costs of, maintain, relocate or operate, or to contract with other persons to have the same done, including but not limited to, highways, roads, streets, electrical, gas, water and sewer facilities, railroad and other transportation facilities, and air and water pollution control and solid waste disposal facilities;

(11) "Underutilized", real property of which less than thirty-five percent of the commercially usable space of the property and improvements thereon, are used for their most commercially profitable and economically productive use; or property that was used by the state of Missouri as a correctional center for a period of at least one hundred years and which requires environmental remediation before redevelopment can occur, if approval from the general assembly has been given for any improvements to, or remediation, lease or sale of, said property;

(12) "Voluntary remediation", an action to remediate hazardous substances and hazardous waste pursuant to sections 260.565 to 260.575, RSMo."; and

Further amend said title, enacting clause and intersectional references accordingly.