HCS SCS SB 773 -- AGRICULTURE

SPONSOR:  Cauthorn (Fisher)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Agri-Business by a vote of 10 to 0.

This substitute changes the laws regarding agricultural programs
in Missouri.

MITIGATION OF PROPERTY DAMAGE AND DESTRUCTION

This substitute exempts owners of anhydrous ammonia from
reasonable cleanup costs caused by illegal tampering and
specifies that a person who negligently damages or destroys a
field crop product is liable only for actual damages directly
related to the damaged or destroyed crop.  Currently, a person
who knowingly damages or destroys a field crop product is liable
for double the damages.

DRAINAGE DISTRICTS

The substitute authorizes drainage district boards to impose an
annual processing fee for assessed tracts when the board
determines that the costs of preparing and processing the
district's maintenance tax statement exceed the amount of tax
imposed.  The fee will be set by the board at the district's
annual maintenance tax hearing.

BIODIESEL FUEL USE IN DEPARTMENT OF TRANSPORTATION VEHICLES

Currently, at least 75% of the Department of Transportation's
diesel-powered vehicle fleet and heavy equipment are required to
use diesel fuel with a biodiesel fuel oil content of "B-20",
which is defined as a blend of 20% by volume biodiesel fuel and
80% by volume petroleum-based diesel fuel, if it is commercially
available.  The substitute allows the Department of Agriculture
in consultation with the Department of Transportation by rule to
exempt in whole or in part the Department of Transportation's
affected vehicles from the B-20 biodiesel fuel requirement.

AGRICULTURAL LOANS

The substitute defines "vermiculture operation" as a Missouri
business entity engaged in raising earthworms under a controlled
environment and makes them eligible for certain agricultural loan
programs including Agricultural Linked Deposit loans and
single-purpose animal facility loan guarantees.


GOVERNOR'S ADVISORY COUNCIL ON AGRICULTURAL SCIENCE AND
TECHNOLOGY

The substitute establishes the Governor's Advisory Council on
Agricultural Science and Technology consisting of seven members
appointed by the Governor.  The council will be required to:

(1)  Apprise the Governor of new developments in science and
technology;

(2)  Identify the state's long-term needs regarding science and
technology;

(3)  Provide scientific inquiry into regulatory matters upon
request by the Governor; and

(4)  Identify potential economic opportunities for the state in
the plant biotechnology industry.

STEALING ANIMALS

The substitute revises the crime of stealing any animal to
include all livestock as defined in Section 144.010, RSMo.

AGRICULTURAL BUSINESS DEVELOPMENT

The substitute renames the Marketing Division within the
Department of Agriculture as the Agriculture Business Development
Division.  The Marketing Development Fund is also renamed as the
Agriculture Business Development Fund.

SALES TAX EXEMPTION ON DIESEL FUEL USED IN FARMING AND SALES AND
LOCAL USE TAX EXEMPTION FOR UTILITIES FOR CERTAIN AGRI-BUSINESSES

The substitute authorizes an exemption from state and local sales
and use tax for the cost of all utilities used in the
manufacturing, processing, compounding, mining, or production of
pesticides, meat, petfood, livestock and poultry feed, purchases
for research and development of agricultural biotechnology
products, and prescription pharmaceuticals.  The substitute also
exempts the current sales tax on one half of the purchase price
of diesel fuel used for agricultural purposes.

PURCHASE OF DAIRY COWS INCENTIVE PROGRAM

The substitute specifies that the Agricultural Small Business
Development Authority will pay the first year of charged interest
payments on all linked deposit loans used for acquisition of
dairy cows.

NEW GENERATION COOPERATIVES

Any reimbursement to a interim forming board, unless specified in
the membership contract, is required to be approved by a vote of
the association members.  This voting requirement does not apply
to any association that specified in the membership contract that
interim officers would receive a specified remuneration amount.

No agricultural tax credits are to be issued to any new
generation processing entity member if the entity is not in
compliance with the Packers and Stockyard Act of 1921.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 in FY
2007, $0 to $311,220 in FY 2008, and $0 to $384,668 in FY 2009.
No impact on Other State Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that the bill is necessary to
revitalize the state's dairy industry.  Missouri no longer
produces an adequate amount of milk to satisfy the state's needs
and has fallen from fourteenth to twenty-first in milk production
nationally.  For every additional dairy cow added to a dairy
operation in Missouri, $13,700 of economic activity is created.

Testifying for the bill were Senator Cauthorn; Department of
Agriculture; and Missouri Dairy Council.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:46 am