HCS SB 462 -- AGRICULTURE

SPONSOR:  Westfall (Legan)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agriculture by a vote of 23 to 0.

This substitute adds and modifies provisions relating to
agriculture.

COOPERATIVE ASSOCIATIONS

The substitute reduces the percentage of gross sales a
cooperative association must make to its members to retain its
status as a cooperative association from 50% to 25%.

AGROFORESTRY

In cooperation with the University of Missouri College of
Agriculture, the University of Missouri Center for Agroforestry,
the University of Missouri Extension Service, the Department of
Natural Resources, and private industry councils, the Department
of Agriculture is required to develop and implement an
agroforestry program to encourage conservation of soil and
diversification of the state's agricultural base.  Through the
use of trees planted in an agroforestry configuration, the
program is to accommodate alley cropping, forested-riparian
buffers, silvopasture, and windbreaks.

Agricultural land which is susceptible to soil erosion and has a
recent crop history, marginal pasture land, land surrounding
livestock enclosures, and land comprising riparian zones is
eligible for the program.

The University of Missouri Center of Agroforestry and Extension
Service, in consultation with the Director of the Department of
Agriculture, is to establish agroforestry demonstration areas
and develop and deliver training.

The Director of the Department of Agriculture is allowed to pay
for the planting of trees not to exceed 75% of the cost of
establishment.

FARMLAND PROTECTION ACT

The Farmland Protection Act applies to tracts of real property
comprised of 10 or more contiguous acres, used as agricultural
or single family residential property or both, and not located
in a platted subdivision.

The purpose of the act is to protect agricultural,
horticultural, and forestry land; promote continued rural
economic viability; promote quality of life; promote continued
viability of those businesses dependent on providing materials,
equipment, and services to agriculture, horticulture, and
forestry; and protect farmland from negative impacts.

The act requires the state or any political subdivision to hold
sewer and water assessments in abeyance, without interest, until
improvements on property covered by the act are connected to the
sewer or water system.  Upon connection to the sewer or water
system, the owner is to pay an amount equal to the proportionate
charge for the number of system lines connected to improvements
on the property and a reasonable hookup charge.

These provisions do not apply to public water supply districts,
except that a public water supply district is not to require
payment from landowners whose property is crossed to service
another tract of land until the landowner requests connection to
the public water supply district.

In Kansas City, assessments on tracts of land subject to
protection under the act are to be held in abeyance, except that
an initial payment not to exceed $500 per acre of the tract up
to an amount not to exceed $10,000 may be assessed.

Persons purchasing property located within one-half mile of
property used for agricultural purposes are to be given a notice
of that prior to the final sale.  The act specifies the language
of the notice.

Property subject to the act is not to be taken by any political
subdivision of the state by eminent domain except after an open
public hearing.

SOIL AND WATER CONSERVATION DISTRICTS

Under current law, soil and water conservation subdistricts are
governed by district supervisors.  The substitute gives
governing powers to the trustees of the subdistrict, except in
the formation, consolidation, expansion, or disestablishment of
the subdistrict.  District supervisors continue to act as
advisors and must be provided with the minutes of each
subdistrict meeting.

The substitute also requires subdistrict trustees to own land
within the subdistrict.  Under current law, trustees must live
within the subdistrict.  The Soil and Water Districts Commission
will fill the unexpired terms of vacant subdistrict trustee
positions by appointment.

VETERINARY MEDICINE LOAN REPAYMENT PROGRAM

The substitute creates the Large Animal Veterinary Medicine Loan
Repayment Program.  The Missouri Veterinary Medical Board will
designate counties, communities, or portions of rural regions as
areas needing large animal veterinary services.  A veterinary
student meeting certain requirements may enter into a contract
with the board for repayment of educational loans.  If the
student agrees to serve 5 years or more in a board-designated
area, the board may pay up to $10,000 for each year the student
agrees to serve in the area.  Provisions for failure of the
student to meet contractual obligations are included in the
substitute.  The board may authorize repayment for up to 5
veterinarians each year.

NEW GENERATION COOPERATIVES

The substitute creates an additional kind of new generation
cooperative agricultural project which qualifies for tax credits
from the Agricultural Product Utilization Tax Credit Fund.  A
new generation cooperative with an investment of $15 million or
more and employing at least 100 employees will be eligible for
up to $3 million in tax credits.

This portion of the substitute has an emergency clause.

BIODIESEL FUEL

For school years 2002-2003 to 2005-2006, the substitute allows
school districts to establish contracts with nonprofit,
farmer-owned new generation cooperatives to supply bus fuel
containing at least 20% biodiesel.  Subject to appropriation,
districts that establish contracts will receive additional state
school aid for costs above the market price for regular diesel
fuel.  Initial statewide payments are capped at 0.7% of the
1998-1999 entitlement for state transportation aid, but may be
increased by 4% each year.

AGRICULTURAL PRODUCT UTILIZATION CONTRIBUTOR TAX CREDIT

Persons receiving tax credits for contributing to the
Agriculture and Small Business Development Authority are allowed
to use the tax credits for their estimated quarterly tax due.

WARRANTY REPAIR WORK

Retailers who sell and service industrial, maintenance, and
construction power equipment or outdoor power equipment and who
do warranty work are to be reimbursed by the manufacturer at a
hourly rate equal to or greater than the hourly labor rate the
retailer currently charges consumers for nonwarranty repair work.

CRIME OF SPREADING DISEASE TO LIVESTOCK

A person who intentionally spreads a contagious, communicable,
or infectious disease to livestock or animals is guilty of a
class D felony.

FISCAL NOTE:  Net Estimated Income to Pesticide Project Fund of
$1,068,693 in FY 2002, $1,068,606 in FY 2003, and $1,066,321 in
FY 2004.  Estimated Net Effect on State School Moneys Fund of $0
in FY 2002, FY 2003, and FY 2004.  Estimated Net Cost to
Veterinary Medical Board Fund of $2,666 in FY 2002, $2,728 in FY
2003, and $2,792 in FY 2004.  Estimated Net Cost to General
Revenue Fund of Less Than $150,000 in FY 2002, Less Than
$1,126,614 in FY 2003, and Less Than $1,213,678 in FY 2004.
Total cost does not include costs for Agroforestry, which are
unknown.

PROPONENTS:  Supporters say that due to the shrinking number of
agricultural producers it is very difficult for a cooperative
association to maintain economic viability without a lower
percentage of sales to members.

Testifying for the bill were Senator Westfall; and MFA
Incorporated.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:47 am