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Holy God, Almighty Father of all humankind, the rally yesterday demanded that our attention turn to resources for the education of children and youth. From other directions we are shown the need to form children in other basic values that they might become trustworthy and productive citizens. And some children do not have parents able to nurture them, and these become wards of the State, demanding and deserving our special care.

About our children, we remember Your word given to us in a proverb: Train children in the way they should go, and even when they are old, they will not swerve from it. (Proverbs 22:6).

Dear God, whatever the agenda we work on today, guide us to be sensitive to its effects upon children and youth. When the time comes for making decisions that affect the well being of children and youth, give us the understanding to know what is best for their education and their healthy formation and growth. May Your Holy Spirit stir in us a truly parental attitude and concern for those children who are in the custody and care of the State.

The Speaker appointed the following to act as an Honorary Page for the Day, to serve without compensation: Laura Portwood.

The Journal of the twenty-second day was approved as printed by the following vote:

The Missouri State Future Farmers of America officers were introduced by Representative Quinn.

Ms. Gina Eckler, President of the Missouri State Future Farmers of America, addressed the House.

HB 1494, introduced by Representative Ervin, relating to boards of directors for regional recreational districts.

HB 1495, introduced by Representatives Bland, Fraser, Walker, Riback Wilson (25), Hilgemann, Selby, Sager, Thompson, Hoskins and Jones, relating to certain health care benefits.

HCS HBs 1268 & 1211, relating to employees, was taken up by Representative Smith (118).

AMEND House Substitute for House Committee Substitute for House Bill Nos. 1268 & 1211, Pages 30 and 31, Section 288.050, Lines 7 to 24, and 1 to 10, by deleting all of said lines and inserting in lieu thereof the following:

"2. [Notwithstanding the other provisions of this law,] If a deputy finds that a claimant has been discharged for misconduct connected with the claimant's work, such claimant[, depending upon the seriousness of the misconduct as determined by the deputy according to the circumstances in each case,] shall be disqualified for waiting week credit or benefits [for not less than four nor more than sixteen weeks for which the claimant claims benefits and is otherwise eligible], and no benefits shall be paid nor shall the cost of any benefits be charged against any employer for any period of employment within the base period until the claimant has earned wages for work insured under the unemployment laws of this state or any other state as prescribed in this section. In addition to the disqualification for benefits pursuant to this provision the division may in the more aggravated cases of misconduct, cancel all or any part of the individual's wage credits, which were established through the individual's employment by the employer who discharged such individual, according to the seriousness of the misconduct. A disqualification provided for pursuant to this subsection shall not apply to any week which occurs after the claimant has earned wages for work insured pursuant to the unemployment compensation laws of any state in an amount equal to eight times the claimant's weekly benefit amount. Should a claimant be disqualified on a second or subsequent occasion within the base period or subsequent to the base period the claimant shall be required to earn wages in an amount equal to or in excess of eight times the claimant's weekly benefit amount for each disqualification, such additionally required wages shall run consecutively. For the purpose of this chapter, a professionally administered and documented positive chemical test result for a controlled substance as defined under section 195.010, RSMo, or for blood alcohol content of eight-hundredths of one percent or more by weight of alcohol in the claimant's blood shall be deemed misconduct connected with work. The employer shall have notified the employee of the employer's controlled substance and alcohol workplace policy by conspicuously posting the policy in the workplace, by including the policy in an employee handbook, or by a statement of such policy in a collective bargaining agreement governing employment of the employee. The policy shall state that a positive test result shall be deemed misconduct and may result in suspension or termination of employment. Use of a controlled substance as defined under section 195.010, RSMo, under, and in conformity with the lawful order of a healthcare practitioner shall not be deemed to be misconduct connected with work for the purposes of this section."; and

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

The hour of recess having expired, the House was called to order by Speaker Pro Tem Jetton.

HB 1496, introduced by Representatives Bean, Wallace, Kingery, King, May, Mayer, Cooper (155), Cunningham (86), Stevenson, Bough, Schlottach, Dethrow, Guest, Byrd, Schaaf, Icet, Ruestman, Reinhart, Roark, Viebrock, Nieves, Emery, Phillips, Sander, Wood, Hobbs, Kelly (144), Angst, Wasson and Bearden, relating to the prevailing wage.

HB 1497, introduced by Representatives Pearce, Seigfreid, Bean, Davis (122), Deeken, Luetkemeyer, Walker, Jolly, Myers and Walsh, relating to customer call centers.

HB 1498, introduced by Representatives Schneider, Hubbard, Johnson (47), Parker, Icet, Deeken, Bearden, Schaaf, Smith (14), Cooper (155), Dixon, Bivins, Villa, Thompson, Salva, Bland, Barnitz, Yates, Muckler, Bringer, Page, Lawson, Davis (122), Zweifel, Spreng, Bishop, Brown, Hunter, Ruestman, Wallace, Hobbs, Myers, Engler, Nieves, Sutherland, Dusenberg, Kelly (144), Jackson, Phillips, Emery, Wood, Cunningham (145), Angst, Mayer and Stevenson, relating to A+ school reimbursements.

HB 1499, introduced by Representatives Ransdall, Henke, Kuessner, Witte, Swinger and Sager, relating to medical benefits for certain department of transportation and highway patrol retirees.

HB 1500, introduced by Representatives Mayer, Lipke, Behnen, Black, Kingery, Bean, and Kelly (36), relating to court costs.

HB 1501, introduced by Representative Bruns, relating to the vocational enterprises program.

HB 1502, introduced by Representatives Wilson (42), Young, Burnett, Curls, Bland, Sager, Walker, Campbell, Lowe and Haywood, relating to school employee retirement.

HB 1503, introduced by Representatives Ervin, Pearce, Richard, Dempsey, Black, Baker, Reinhart, Wildberger, Munzlinger and Page, relating to business use incentives.

HB 1504, introduced by Representatives Lipke and Crowell, relating to the assessment of damages for the restriction or loss of access to highways when eminent domain is exercised.

HB 1505, introduced by Representative Lembke, relating to the statute of limitations for certain sexual offenses.

HCS HBs 1268 & 1211, with House Amendment No. 1 and HS, pending, relating to employees, was again taken up by Representative Smith (118).

On motion of Representative Morris, House Amendment No. 1 was adopted by the following vote:

AYES: 108

Angst	Baker	Barnitz	Bean	Bearden
Behnen	Bishop	Black	Bough	Bringer
Brown	Bruns	Byrd	Cooper 120	Cooper 155
Crowell	Cunningham 145	Cunningham 86	Davis 122	Davis 19
Deeken	Dempsey	Dethrow	Dixon	Dusenberg
Emery	Engler	Ervin	Fares	Goodman
Guest	Hampton	Harris 110	Harris 23	Hobbs
Holand	Hunter	Icet	Jackson	Jetton
Johnson 47	Kelly 144	Kelly 36	King	Kingery
Kuessner	Lager	Lembke	LeVota	Lipke
Luetkemeyer	May	Mayer	Miller	Moore
Morris	Munzlinger	Myers	Nieves	Page
Parker	Pearce	Phillips	Portwood	Pratt
Purgason	Quinn	Ransdall	Rector	Reinhart
Richard	Roark	Ruestman	Rupp	Sager
Salva	Sander	Schaaf	Schlottach	Schneider
Schoemehl	Seigfreid	Selby	Self	Shoemaker
Shoemyer	Skaggs	Smith 118	Smith 14	St. Onge
Stefanick	Stevenson	Sutherland	Swinger	Taylor
Threlkeld	Viebrock	Wallace	Wasson	Whorton
Willoughby	Wilson 119	Wilson 130	Witte	Wood
Wright	Yates	Young

NOES: 045

Abel	Bland	Brooks	Burnett	Campbell
Corcoran	Curls	Darrough	Daus	Donnelly
El-Amin	Fraser	George	Graham	Green
Haywood	Henke	Hilgemann	Hoskins	Hubbard
Johnson 61	Johnson 90	Jolly	Jones	Kratky
Liese	Lowe	McKenna	Meadows	Meiners
Muckler	Spreng	Thompson	Villa	Vogt
Wagner	Walker	Walsh	Walton	Ward
Wildberger	Wilson 25	Wilson 42	Yaeger	Zweifel

PRESENT: 000

ABSENT WITH LEAVE: 010

Avery	Bivins	Boykins	Carnahan	Crawford
Dougherty	Lawson	Marsh	Townley	Madam Speaker

Representative El-Amin requested a verification of the roll call on the motion to adopt House Amendment No. 1.

AMEND House Substitute for House Committee Substitute for House Bill Nos. 1268 & 1211, Page 65, Line 23, by inserting after all of said line the following:

"Section 1. 1. There is hereby created a Missouri State Unemployment Council ("the council"). The council shall consist of nine appointed voting members and two appointed nonvoting members. All appointees shall be persons whose training and experience qualify them to deal with the difficult problems of unemployment compensation, particularly legal, accounting, actuarial, economic, and social aspects of unemployment compensation.

(1) Three voting members shall be appointed to the council by the governor. One voting member shall be appointed on account of his or her vocation, employment, or affiliations being classed as representative of employers. One voting member shall be appointed on account of his or her vocation, employment, or affiliations being classed as representative of employees. One voting member shall be appointed to represent the public interest separate from employee or employer representation.

(2) Three voting members and one nonvoting member shall be appointed to the council by the speaker of the house of representatives. One voting member shall be appointed on account of his or her vocation, employment, or affiliations being classed as representative of employers that employ twenty or less employees. One voting member shall be appointed on account of his or her vocation, employment, or affiliations being classed as representative of employees. One voting member shall be appointed to represent the public interest separate from employee or employer representation. One nonvoting member shall be appointed from the house of representatives.

(3) Three voting members and one nonvoting member shall be appointed to the council by the president pro tem of the senate. One voting member shall be appointed on account of his or her vocation, employment, or affiliations being classed as representative of employers. One voting member shall be appointed on account of his or her vocation, employment, or affiliations being classed as representative of employees. One voting member shall be appointed to represent the public interest separate from employee or employer representation. One nonvoting member shall be appointed from the senate.

2. The council shall organize itself and select a chairperson or co-chairpersons and other officers from the nine voting members. Six voting members shall constitute a quorum and the council shall act only upon the affirmative vote of at least five of the voting members. The council shall meet no less than four times yearly. Members of the council shall serve without compensation, but are to be reimbursed the amount of actual expenses. Actual expenses shall be paid from the special employment security fund under section 288.310.

3. The division shall provide professional and clerical assistance as needed for regularly scheduled meetings.

4. Each nonvoting member shall serve for a term of four years or until he or she is no longer a member of the general assembly whichever occurs first. A nonvoting member's term shall be a maximum of four years. Each voting member shall serve for a term of three years. For the initial appointment, the governor-appointed employer representative, the speaker of the house-appointed employee representative, and the president pro tem of the senate-appointed public interest representative shall serve an initial term of one year. For the initial appointment, the governor-appointed employee representative, the speaker of the house-appointed public interest representative, and the president pro tem of the senate-appointed employer representative shall serve an initial term of two years. At the end of a voting member's term he or she may be reappointed; however, he or she shall serve no more than two terms excluding the initial term for a maximum of eight years.

5. The council shall advise the division in carrying out the purposes of this chapter. The council shall submit annually by January fifteenth to the governor and the general assembly its recommendations regarding amendments of this chapter, the status of unemployment insurance, the projected maintenance of the solvency of unemployment insurance, and the adequacy of unemployment compensation.

6. The council shall present to the division every proposal of the council for changes in this chapter and shall seek the division's concurrence with the proposal. The division shall give careful consideration to every proposal submitted by the council for legislative or administrative action and shall review each legislative proposal for possible incorporation into department of labor and industrial relations recommendations.

7. The council shall have access to only the records of the division that are necessary for the administration of this chapter and to the reasonable services of the employees of the division. It may request the director or any of the employees appointed by the director or any employee subject to this chapter, to appear before it and to testify relative to the functioning of this chapter and to other relevant matters. The council may conduct research of its own, make and publish reports, and recommend to the division needed changes in this chapter or in the rules of the division as it considers necessary.

8. The council, unless prohibited by a concurrent resolution of the general assembly, shall be authorized to commission an outside study of the solvency, adequacy, and staffing and operational efficiency of the Missouri unemployment system. The study shall be conducted every five years, the first being conducted in fiscal year 2005. The study shall be funded subject to appropriation from the special employment security fund under section 288.310."; and

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

AMEND House Substitute for House Committee Substitute for House Bill Nos. 1268 & 1211, Page 65, Section 288.295, Line 23, by inserting after said line the following:

"Section 1. The department of labor and industrial relations may contract with a private entity for the purpose of identifying and recovering overpayments to employees and collection of delinquent employer contributions."; and

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

AMEND House Substitute for House Committee Substitute for House Bill Nos. 1268 & 1211, Section 288.050.1.(1), Page 27, Line 9, following the word “worked;” by deleting the word “or”; and

Further amend House Substitute for House Committee Substitute for House Bill Nos. 1268 & 1211, Section 288.050.1.(1), Page 27, Line 21, following the word “paragraph;” by inserting the following:

(e) If the deputy finds the claimant quit such work due to such claimant reasonably fearing for his or her physical health and safety by reason of domestic violence. The claimant shall be required to demonstrate continued employment places the claimant in immediate danger of further violence and that he or she:

(2) has filed for and received an ex parte, temporary or permanent order of protection against the alleged abuser, or

(3) has filed with the appropriate police jurisdiction a report of the alleged violence.”; and

AMEND House Substitute for House Committee Substitute for House Bill Nos. 1268 & 1211, Pages 14 and 15, Section 288.036, Lines 3 to 24 and 1 to 10, by deleting all of said lines and inserting in lieu thereof the following:

"2. The increases or decreases to the state taxable wage base for calendar year [1999] 2005, and each calendar year thereafter, shall be determined by the provisions within this subsection. On January 1, 2005, the state taxable wage base for calendar year [1999, and] 2005 shall be eleven thousand dollars for the balance of the calendar year. The state taxable wage base for each calendar year thereafter[,] shall be determined by the preceding September thirtieth balance of the unemployment compensation trust fund, less any outstanding federal Title XII advances received pursuant to section 288.330, or if the fund is not utilizing moneys advanced by the federal government, then less the principal, interest, and administrative expenses related to bonds issued under section 288.330, or the principal, interest, and administrative expenses related to financial agreements under subdivision (17) of subsection 2 of section 288.330, or the principal, interest, and administrative expenses related to a combination of bonds and financial agreements. When the September thirtieth unemployment compensation trust fund balance, less any outstanding federal Title XII advances received pursuant to section 288.330, is:

(1) Less than, or equal to, three hundred fifty million dollars, then the wage base shall increase by [five hundred] one thousand dollars; or

(2) [Four] Five hundred [fifty] million or more, then the state taxable wage base for the subsequent calendar year shall be decreased by five hundred dollars. In no event, however, shall the state taxable wage base increase beyond [ten] eleven thousand [five hundred] dollars, or decrease to less than seven thousand dollars.

For any calendar year, the state taxable wage base shall not be reduced to less than that part of the remuneration which is subject to a tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment compensation trust fund. Nothing in this section shall be construed to prevent the wage base from increasing or decreasing by increments of five hundred dollars."; and

Further amend said bill, Pages 37 to 39, Section 288.121, Lines 20 to 24 and 1 to 23 and 1 to 7, by deleting all of said lines and inserting in lieu thereof the following:

"288.121. 1. On October first of each calendar year, if the average balance, less any federal advances, of the unemployment compensation trust fund of the four preceding quarters (September thirtieth, June thirtieth, March thirty-first and December thirty-first of the preceding calendar year) is less than four hundred fifty million dollars, then each employer's contribution rate calculated for the four calendar quarters of the succeeding calendar year shall be increased by the percentage determined from the following table:

[Notwithstanding the table in this section, each employer's contribution rate calculated for the four calendar quarters of calendar year 1994 shall be increased by forty percent, instead of thirty percent, as previously indicated in the table in this section. After the forty percent increase, each employer's contribution rate for the four calendar quarters of calendar year 1994 shall be increased by adding three-tenths of one percent.] Beginning on January 1, 2005, and continuing until such time as the trust fund balance including any outstanding indebtedness, is greater than or equal to zero the contribution rate of any employer who is paying the maximum contribution rate of six percent shall be increased by forty percent.

2. Effective January 1, 2005, an employer's total contribution rate shall equal the employer's base rate plus a temporary solvency charge of one-tenth of one percent added to the base rate plus the increase authorized under subsection 1 of this section. The temporary solvency charge shall expire upon the last day of the fourth calender quarter following the effective date of this section."; and

Further amend said bill, Pages 39 to 41, Section 288.128, Lines 8 to 24 and 1 to 24 and 1 to 3, by deleting all of said lines and inserting in lieu thereof the following:

"288.128. 1. In addition to all other contributions due under this chapter, if the fund is utilizing moneys advanced by the federal government under the provisions of 42 U.S.C.A., section 1321 pursuant to section 288.330[,] or if the fund is not utilizing moneys advanced by the federal government, then from the proceeds of bonds issued under section 288.330, or from the moneys advanced under financial agreements under subdivision (17) of subsection 2 of section 288.330, or a combination of bond proceeds and moneys advanced under financial agreements each employer shall be assessed an amount solely for the payment of interest due on such federal advancements, or if the fund is not utilizing moneys advanced by the federal government, or in the case of issuance of bonds for the payment of the principal, interest, and administrative expenses related to such bonds, or in the case of financial agreements for the payment of principal, interest, and administrative expenses related to such financial agreements, or in the case of a combination of bonds and financial agreements for the payment of principal, interest, and administrative expenses for both. The rate shall be determined by dividing the interest due on federal advancements or if the fund is not utilizing moneys advanced by the federal government, then the principal, interest, and administrative expenses related to bonds, or the principal, interest, and administrative expenses related to financial agreements under subdivision (17) of subsection 2 of section 288.330, or the principal, interest, and administrative expenses related to a combination of bonds and financial agreements by ninety-five percent of the total taxable wages paid by all Missouri employers in the preceding calendar year. Each employer's proportionate share shall be the product obtained by multiplying such employer's total taxable wages for the preceding calendar year by the rate specified in this section. Each employer shall be notified of the amount due under this section by June thirtieth of each year and such amount shall be considered delinquent thirty days thereafter. The moneys collected from each employer for the payment of interest due on federal advances or if the fund is not utilizing moneys advanced by the federal government, then the payment of principal, interest, and administrative expenses related to bonds, or the payment of the principal, interest, and administrative expenses related to financial agreements under subdivision (17) of subsection 2 of section 288.330, or the payment of the principal, interest, and administrative expenses related to a combination of bonds and financial agreements shall be deposited in the special employment security fund.

2. If on December thirty-first of any year the money collected under this section exceeds the amount of interest due on federal advancements by one hundred thousand dollars or more, then each employer's experience rating account shall be credited with an amount which bears the same ratio to the excess moneys collected under this section as that employer's payment collected under this section bears to the total amount collected under this section. Further, if on December thirty-first of any year the moneys collected under this section exceed the amount of interest due on the federal advancements by less than one hundred thousand dollars, the balance shall be transferred from the special employment security fund to the Secretary of the Treasury of the United States to be credited to the account of this state in the unemployment trust fund."; and

Further amend said bill, Pages 50 to 53, Section 288.310, Lines 2 to 24 and 1 to 24 and 1 to 24 and l to 7, by deleting all of said lines and inserting in lieu thereof the following:

"288.310. 1. There is hereby created in the state treasury a special fund to be known as the "Special Employment Security Fund". All interest and penalties collected under the provisions of this law, including moneys collected pursuant to section 288.128 for the payment of interest due on federal advances received pursuant to section 288.330, or if the fund is not utilizing moneys advanced by the federal government, then the payment of principal, interest, and administrative expenses related to bonds issued under section 288.330, or the payment of the principal, interest, and administrative expenses related to financial agreements under subdivision (17) of subsection 2 of section 288.330, or the payment of the principal, interest, and administrative expenses related to a combination of bonds and financial agreements shall be paid into this fund. The moneys collected pursuant to section 288.128 shall be used [exclusively] for the payment of interest due on federal advances received pursuant to section 288.330, or if the fund is not utilizing moneys advanced by the federal government, then the payment of principal, interest, and administrative expenses related to bonds issued under that section, or the payment of principal, interest, and administrative expenses related to financial agreements under subdivision (17) of subsection 2 of section 288.330, or the payment of the principal, interest, and administrative expenses related to a combination of bonds and financial agreements. Such moneys, except for moneys collected pursuant to section 288.128, shall not be expended or available for expenditure in any manner which would permit their substitution for, or a corresponding reduction in, federal funds which would in the absence of such money be available to finance expenditures for the administration of the employment security law, but nothing in this section shall prevent such moneys, except for moneys collected pursuant to section 288.128, from being used as a revolving fund, to cover expenditures, necessary and proper under the law, for which federal funds have been duly requested but not yet received, subject to the charging of such expenditures against such funds when received. Subject to the approval of the director of the department of labor and industrial relations, the moneys in this fund, except for moneys collected pursuant to section 288.128, shall be used by the department of labor and industrial relations for the payment of costs of administration which are found not to have been properly and validly chargeable against federal grants or other funds received for or in the unemployment compensation administration fund. Such moneys, except for moneys collected pursuant to section 288.128, shall be available either to satisfy the obligations incurred by the department of labor and industrial relations for the division directly or by requesting the board of fund commissioners to transfer the required amount from the special employment security fund to the unemployment compensation administration fund. The board of fund commissioners shall upon receipt of a written request of the department of labor and industrial relations make any such transfer. No expenditures of this fund or transfer herein provided, except for moneys collected pursuant to section 288.128, shall be made unless and until the director of the department of labor and industrial relations finds that no other funds are available or can properly be used to finance such expenditures, except that as hereinafter authorized expenditures from such fund may be made for the purpose of acquiring lands and buildings, or for the erection of buildings on lands so acquired, which are deemed necessary by the director of the department of labor and industrial relations for the proper administration of this law. The director of the department of labor and industrial relations shall order the transfer of such funds or the payment of any such obligation and such funds shall be paid by the state treasurer on requisitions drawn by the director of the department of labor and industrial relations directing the state auditor to issue his or her warrant therefor. Any such warrant shall be drawn by the state auditor based upon bills of particulars and vouchers certified by an officer or employee designated by the director of the department of labor and industrial relations. Such certification shall among other things include a duly certified copy of the director of the department of labor and industrial relations' findings hereinbefore referred to. The moneys in this fund, except for moneys collected pursuant to section 288.128, are hereby specifically made available to replace, within a reasonable time, any moneys received by this state pursuant to section 302 of the Federal Social Security Act (42 U.S.C.A. Sec. 502), as amended, which, because of any action or contingency, have been lost or have been expended for purposes other than, or in amounts in excess of, those necessary for the proper administration of the employment security law. The moneys in this fund shall be continuously available to the director of the department of labor and industrial relations for expenditure in accordance with the provisions of this section and shall not lapse at any time or be transferred to any other fund except as herein provided."; and

Further amend said bill, Pages 54 to 64, Section 288.330, Lines 22 to 24 and 1 to 24 and 1 to 24 and l to 24 and 1 to 24 and 1 to 24 and 1 to 24 and 1 to 24 and 1 to 24 and 1 to 24 and 1 to 2, by deleting all of said lines and inserting in lieu thereof the following:

"288.330. 1. Benefits shall be deemed to be due and payable only to the extent that moneys are available to the credit of the unemployment compensation fund and neither the state nor the division shall be liable for any amount in excess of such sums. [Neither the state of Missouri, nor any person or agency acting for it, may under any circumstance, by issuing bonds or otherwise borrow money from any source whatsoever to pay benefits hereunder, except as provided in 42 U.S.C.A. Section 1321.] The governor is authorized to apply for an advance to the state unemployment fund and to accept the responsibility for the repayment of such advance [in accordance with the conditions specified in Title XII of the Social Security Act, as amended,] in order to secure to this state and its citizens the advantages available under the provisions of [such title] federal law. Effective January 1, 2006, in the event the fund balance including any outstanding loans or indebtedness is less than or equal to zero and the governor applies for an advance as provided in 42 U.S.C. Section 1321 or the state is required to incur other indebtedness as authorized in this chapter in order to maintain funding for the payment of benefits as authorized by this chapter, the state of Missouri shall be obligated to pay the interest incurred as a result of such advance or indebtedness.

2. (1) The purpose of this subsection is to provide a method of financing the replenishment of the state's unemployment compensation fund as an alternative to borrowing or obtaining advances from the federal unemployment trust fund or for refinancing those loans or advances, and to provide a method through which the state may continue its unemployment compensation program at the least possible cost to the state and its employers.

(2) For the purposes of this subsection, "bond" means any type of obligation issued under this section, including any bond, note, tax anticipation note or similar instrument.

(3) There is hereby created for the purposes of implementing the provisions of this subsection a body corporate and politic to be known as the "Missouri Commission on Employment Security Financing". The powers of the commission shall be vested in seven commissioners who shall be residents of this state and be appointed by the governor with the advice and consent of the senate except that the director of the division of employment security shall serve as a nonvoting ex officio member of the commission. The commission shall have all powers necessary to effectuate its purposes including without limitation the power to provide a seal, keep records of its proceedings, provide for professional services, and elect a chair from its members. Not more than four of the commissioners shall be of the same political party.

(a) The commissioners shall serve five-year terms with each term beginning July first and ending on June thirtieth, except that of the commissioners first appointed one shall be appointed for a term of two years, two shall be appointed for a term of three years, two shall be appointed for a term of four years, and two shall be appointed for a term of five years. Each commissioner appointed thereafter shall be appointed for a term ending five years from the date of expiration of the term for which his or her predecessor was appointed, except that a person appointed to fill a vacancy prior to the expiration of such a term shall be appointed for the remainder of the term. No commissioner appointed under this subsection by the governor shall serve more than two consecutive full terms. Each commissioner shall hold office for the term of his or her appointment and until his or her successor is appointed and qualified.

a. No officer or employee of this state shall be deemed to have forfeited or shall forfeit his or her office or employment by reason of his or her acceptance of an appointment as a commissioner to the commission or for his or her service to the commission;

b. It shall not constitute a conflict of interest for a director, officer, or employee of any financial institution, investment banking firm, brokerage firm, commercial bank or trust company, architectural firm, insurance company, or any other firm, person, or corporation, to serve as a commissioner of the commission, provided such trustee, director, officer, or employee shall abstain from deliberation, action, and vote by the commission in each instance where the business affiliation or public office association of any such trustee, director, officer, or employee is involved.

(c) Before entering into his or her duties each commissioner shall execute a surety bond in the sum of fifty thousand dollars, or in lieu thereof the chair of the commission may execute a blanket bond covering all members of the commission with each surety bond to be conditioned upon the faithful performance of the duties of the office or offices covered and to be executed by a surety company authorized to transact business in this state as a surety and to be approved by the attorney general and filed in the office of the secretary of state. The cost of each such bond shall be paid by the commission.

(d) Commissioners shall receive no compensation for the performance of their duties under this subsection, but each commissioner shall be reimbursed from the funds of the commission for his or her actual and necessary expenses incurred in carrying out his or her official duties under this subsection.

(e) In the event that any of the commissioners or officers of the commission whose signatures or facsimile signatures appear on any bonds shall cease to be commissioners or officers before the delivery of such bonds, their signatures or facsimile signatures shall be valid and sufficient for all purposes as if such commissioners or officers had remained in office until delivery of such bonds.

(f) The commissioners executing the bonds of the commission shall not be subject to any personal liability or accountability by reason of the issuance of the bonds.

(g) The commission shall following the close of each fiscal year submit an annual report of its activities for the preceding year to the governor and the general assembly. Each report shall set forth a complete operating and financial statement for the commission during the fiscal year it covers. At least once in each year an independent certified public accountant shall audit the records and accounts of the commission.

(4) The commission is authorized to issue, sell, and deliver bonds which shall mature no later than ten years after issuance in the name of the commission in an amount determined by the commission not to exceed a total of four hundred fifty million dollars of indebtedness that results in reducing or avoiding the need to borrow or obtain an advance under 42 U.S.C., Section 1321, or any similar federal legislation, or in an amount necessary to refinance any borrowing or advance previously made by the state for those purposes. The commission shall make an affirmative finding that the issuance of bonds for the purposes established in this section results in a savings to the state and its employers.

(5) The commission shall provide for the payment of the principal of the bonds, any redemption premiums, the interest on the bonds, and the costs attributable to the bonds being issued or outstanding as provided in this subsection and in section 288.310. Unless the commission directs otherwise, the bonds shall be repaid in the same time frame and in the same amounts as would be required for loans issued pursuant to 42 U.S.C. Section 1321; however, in no case shall bond indebtedness continue beyond five consecutive years.

(6) The commission may irrevocably pledge money received from the contributions received under section 288.128 as revenue for the payment of bonds and deposited in an account created for such purpose in the special employment security fund or other money legally available to it.

(7) Bonds issued under this section shall not constitute debts of this state or of any agency, political corporation, or political subdivision of this state and are not a pledge of the faith and credit of this state or of any of those governmental entities. The bonds are payable only from revenue provided for under this chapter. The bonds shall contain a statement to the effect that:

(a) Neither the state nor any agency, political corporation, or political subdivision of the state shall be obligated to pay the principal or interest on the bonds except as provided by this section; and

(b) Neither the full faith and credit nor the taxing power of the state nor any agency, political corporation, or political subdivision of the state is pledged to the payment of the principal, premium, if any, or interest on the bonds except as provided by this section.

(8) The owner of any bonds issued under this section shall at the time of purchase agree to waive any right of recovery and forever hold harmless the state and any agency, political corporation, or political subdivision thereof. The bond owner shall agree the sole source of revenue for repayment of such bonds shall be those revenues derived from contributions received under section 288.128.

(9) The state pledges and agrees with the owners of any bonds issued under this section that the state will not limit or alter the rights vested in the commission to fulfill the terms of any agreements made with the owners or in any way impair the rights and remedies of the owners until the bonds are fully discharged except as provided by this section.

(10) The commission may provide for the flow of funds and the establishment and maintenance of separate accounts within the special employment security fund, including the interest and sinking account, the reserve account, and other necessary accounts, and may make additional covenants with respect to the bonds in the documents authorizing the issuance of bonds including refunding bonds. The resolutions authorizing the issuance of bonds may also prohibit the further issuance of bonds or other obligations payable from appropriated moneys or may reserve the right to issue additional bonds to be payable from appropriated moneys on a parity with or subordinate to the lien and pledge in support of the bonds being issued and may contain other provisions and covenants as determined by the commission.

(11) The commission may issue bonds to refund all or any part of the outstanding bonds issued under this section including matured but unpaid interest.

(12) The bonds issued by the commission, any transaction relating to the bonds, and profits made from the sale of the bonds are free from taxation by the state or by any municipality, court, special district, or other political subdivision of the state.

(13) As determined necessary by the commission the proceeds of the bonds less the cost of issuance shall be placed in the state's unemployment compensation fund and may be used for the purposes for which that fund may otherwise be used. If those net proceeds are not placed immediately in the unemployment compensation fund they shall be held in the special employment security fund in an account designated for that purpose until they are transferred to the unemployment compensation fund.

(14) The commission may enter into any contract or agreement deemed necessary or desirable to effectuate cost effective financing hereunder. Such agreements may include credit enhancement, credit support, or interest rate agreements. Any fees or costs associated with such agreements shall be deemed administrative expenses for the purposes of calculating assessments relating to payment of the principal, interest, and administrative expenses related to bonds pursuant to the provisions of section 288.128.

(15) To the extent this section conflicts with other laws the provisions of this section prevail. This section shall not be subject to the provisions of sections 23.250 to 23.298, RSMo.

(16) If the United States Secretary of Labor holds that a provision of this subsection does not conform with a federal statute or would result in the loss to the state of any federal funds otherwise available to it the commission may administer this subsection to conform with the federal statute until the general assembly meets in its next regular session and has an opportunity to amend this subsection.

(17) (a) As used in this subdivision the term "lender" means any state or national bank.

(b) The commission is authorized to enter financial agreements with any lender that result in reducing or avoiding the need to borrow or obtain an advance under 42 U.S.C., Section 1321, or any similar federal legislation. The total amount of the outstanding obligation under the agreement shall not exceed the difference of four hundred fifty million dollars and the bond indebtedness incurred under this subsection. In no instance shall such indebtedness under any financial agreement continue for more than five consecutive years. Repayment of obligations to lenders shall be made from the special employment security fund, section 288.310.

3. In event of the suspension of this law, any unobligated funds in the unemployment compensation fund, and returned by the United States Treasurer because such Federal Social Security Act is inoperative, shall be held in custody by the treasurer and under supervision of the division until the legislature shall provide for the disposition thereof. In event no disposition is made by the legislature at the next regular meeting subsequent to suspension of said law, then all unobligated funds shall be returned ratably to those who contributed thereto."; and

Further amend said bill, Page 65, Section 288.385, Line 13, by inserting after all of said line the following:

"4. The department of labor and industrial relations by and through the division may analyze and project financial data for proposed legislation. In doing so the department and the division shall provide any financial data, projections, or models relating to pending legislation to the sponsor or sponsors of such legislation at least forty-eight hours prior to making such information public. Failure to comply with this subsection shall result in a five hundred dollar civil penalty per violation levied against the agent or employee of the department or division responsible for such violation."; and

Further amend said bill, Page 65, Section 288.395, Lines 14 to 23, by deleting all of said lines and inserting in lieu thereof the following:

"288.395. Any person or entity perpetrating a fraud or misrepresentation under this chapter for which a penalty has not herein been specifically provided, shall be guilty of a class A misdemeanor and, in addition, shall be liable to this state for a civil penalty not to exceed double the value of the fraud. Any person or entity who has previously pled guilty to or has been found guilty of perpetrating a fraud or misrepresentation under this chapter and who subsequently violated any such provisions shall be guilty of a class D felony."; and

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

AMEND House Substitute for House Committee Substitute for House Bill Nos. 1268 & 1211, Page 65, Line 23, by inserting after all of said line the following:

"288.397. The division shall send on or before September 30, 2004, to all employing units a report containing a summary of changes enacted in this act including but not limited to changes in the tax rate, contribution rate, taxable wage base, temporary solvency charges, benefit or eligibility charges, and other pertinent information to enable the employing units to comply with the changes made."; and

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

Representative Goodman raised a point of order that House Amendment No. 7 goes beyond the scope of the bill.

Madam Speaker: I am instructed by the Senate to inform the House of Representatives that the Senate has taken up and passed SS SB 732, entitled:

An act to repeal sections 67.1706 and 67.1754, RSMo, and to enact in lieu thereof two new sections relating to the duties of the metropolitan park and recreation system.

Madam Speaker: I am instructed by the Senate to inform the House of Representatives that the Senate has taken up and passed SS SB 1000, entitled:

An act to repeal sections 650.050, 650.052, 650.055, and 650.100, RSMo, and to enact in lieu thereof five new sections relating to a DNA profiling system, with penalty provisions and an effective date for certain sections.

Madam Speaker: I am instructed by the Senate to inform the House of Representatives that the Senate has taken up and passed SCS SBs 1144, 919 & 874, entitled:

An act to repeal sections 301.141, 301.142, 301.143, and 302.181, RSMo, and to enact in lieu thereof five new sections relating to the operation of motor vehicles, with penalty provisions and an effective date.

I am requesting that House Bill 1260 be withdrawn. Thank you for your consideration.

On motion of Representative Crowell, the House adjourned until 10:00 a.m., Wednesday, February 18, 2004.

Public testimony. Departments of Health, Mental Health, and Social Services. CANCELLED

Departments of Health, Mental Health, and Social Services. Public testimony. AMENDED

Wednesday, February 18, 2004, Hearing Room 7, upon evening adjournment or 5:00 p.m.

Thursday, February 26, 2004, Hearing Room 5 upon morning adjournment of both Chambers.

Public hearings to be held on: HB 975, HB 880, HB 843, HB 1042, HB 947, HB 1047, HB 1275