HB 1590 -- Agricultural Incentives and Programs

Sponsor:  Munzlinger

This bill changes the laws regarding the administration of
agricultural incentives and programs.

MANAGED ENVIRONMENT LIVESTOCK OPERATION TAX CREDITS

Beginning January 1, 2008, the bill authorizes a tax credit to
owners of livestock operations for the eligible costs of
implementing odor abatement best management practices and systems
as administered through the Missouri Agricultural and Small
Business Development Authority.  The maximum tax credit amount
for implementing a system necessary to achieve managed
environment livestock operation (MELO) accreditation and/or
improving basic infrastructure to increase the setback from the
property line will be the lessor of 50% of the eligible expenses
or $50,000.  The maximum tax credit amount for implementing a
system necessary to meet preferred environmental practices and/or
improving basic infrastructure to increase the setback from the
property line will be the lessor of 75% of the eligible expenses
or $75,000.  The yearly maximum amount of tax credits issued by
the authority for odor abatement will be $3 million.  The tax
credits may be carried back three years, carried forward five
years, transferred, or taken against the estimated quarterly tax
or quarterly taxes.

The authority is required to establish rules for tax credit
eligibility based on odor abatement impact, the owner's
prospective use and funding of proven technologies, and other
factors that the authority deems necessary.  Ninety percent of
the tax credits issued in any one year will go to livestock
operation owners for the implementation of best management
practices and systems necessary to achieve MELO accreditation.
Ten percent and any remaining MELO tax credits will be issued to
livestock operation owners for the implementation of preferred
environmental practices.  Any unissued tax credits will not carry
over to the succeeding year.  The authority will impose an
application fee of .25% of the tax credit amount issued.

TAX REPORTING REQUIREMENTS

The definition of "agricultural tax credits" as it relates to the
Missouri Agricultural and Small Business Development Authority is
revised to include family farm breeding livestock loan tax
credits and qualified beef tax credits and makes them subject to
the reporting requirements under the Tax Credit Accountability
Act of 2004.  The bill also requires new generation cooperatives
to report under the act if the agricultural tax credit is issued
as a result of a producer member investing in the new generation
cooperative.

QUALIFIED BIOMASS

Beginning January 1, 2009, through December 31, 2019, Missouri
qualified fuel ethanol producers producing fuel ethanol from
qualified biomass will be eligible to receive grants from the
Department of Agriculture.  The aggregate amount of the grants is
not to exceed $10 million per year.

STATE AND LOCAL SALES AND USE TAX EXEMPTION FOR AGRICULTURAL
FENCING, FORESTRY EQUIPMENT, AND MOTOR FUEL

The bill authorizes a state and local sales and use tax exemption
for fencing materials, forestry equipment, and motor fuel used
for agricultural purposes.

HAZARDOUS SUBSTANCES

The bill specifies that when a hazardous substance release occurs
the person having control of the hazardous substance is liable
for the reasonable and necessary costs for the cleanup or
containment incurred by the political subdivision or volunteer
fire protection association providing the emergency services.  No
later than 60 days after completion of the hazardous substance
cleanup, the political subdivision or the emergency services
provider is required to furnish the liable person with an
itemized statement of all costs associated with the hazardous
substance release.  The statement of costs must include certain
explanations for why the costs were incurred.  A cleanup cost
statement may be appealed to the Director of the Department of
Natural Resources with the burden of proof on the political
subdivision or the emergency services provider.

NAME CHANGES

The bill renames the Marketing Division within the Department of
Agriculture as the Agriculture Business Development Division, the
Marketing Development Fund as the Agriculture Business
Development Fund, the Missouri Agricultural Products Marketing
Development Fund as the AgriMissouri Fund, and the Citizens'
Advisory Commission for Marketing Missouri Agricultural Products
as the AgriMissouri Advisory Commission for Marketing Missouri
Agricultural Products.

NOXIOUS WEEDS

The bill requires persons, corporations, the State Highways and
Transportation Commission, state departments, state agencies,
county commissions, township boards, school boards, drainage
boards, governing bodies of incorporated cities, railroad
companies and other transportation companies, and persons
supervising state-owned lands to control the spread of and
eradicate by methods approved by the federal Environmental
Protection Agency spotted knapweed (Centaurea biebersteinii,
including all subspecies) and sericea lespedeza (Lespedeza
cuneata), which are designated as noxious and dangerous weeds to
agriculture.

DAIRY COWS AND DAIRY OPERATIONS

Subject to appropriations, the Missouri Agricultural and Small
Business Development Authority must pay the first year of charged
interest payments on all linked deposit loans used for the
acquisition of dairy cows.  The authority is authorized to charge
a service fee, not to exceed $50, to defray the administrative
costs of processing a loan.

The authority is required to develop and implement dairy business
planning grants.  The aggregate amount of the grants will not
exceed $50,000; and no single grant can exceed $5,000.  An
application fee may be charged, not to exceed $50 per grant
application, to defray the administrative costs of administering
the grant.

The applicant's dairy operation must be located in Missouri and
at least 51% owned by Missouri residents.  The grant proceeds
must be used solely to contract with a dairy business planning
professional approved by the authority.  The authority is
required to establish rules on eligibility and award criteria
including improved profitability, modernization, and expansion of
the dairy operation.  The experience, education, and relevant
dairy experience of both the grant applicant and the dairy
business planning professional are required to be part of the
respective selection criteria.

AGRICULTURAL TAX CREDITS

The bill requires that certain types of agricultural production
facilities be located in Missouri to qualify its producer member
for agricultural tax credits.

FAMILY FARM LIVESTOCK LOAN PROGRAM

The bill increases from $150,000 to $300,000 the maximum amount
of tax credits that the Missouri Agricultural and Small Business
Development Authority is authorized to issue annually to eligible
lenders participating in the Family Farm Livestock Loan Program.

AUTOMOTIVE LUBRICANTS AND PETROLEUM PRODUCTS

Automotive lubricants are required to meet the American Society
for Testing and Materials (ASTM) current standards.  If no ASTM
standard exists for certain fuels and petroleum-based products,
the Department of Agriculture may adopt other generally
recognized national consensus standards by rule.

The department is authorized to regulate the posting of prices at
gas stations and convenience stores for fuels, petroleum
products, and automotive lubricants.

Currently, the penalty for a first violation of the product
standards or labeling and advertisement requirements for certain
fuels and petroleum products is not to exceed a written
reprimand.  The bill allows the penalty to exceed a written
reprimand when it is deemed necessary to protect the public's
health and safety.

The bill also:

(1)  Requires dealers, distributors, producers, or compounders of
certain fuels and oils to immediately provide a sample upon a
department request;

(2)  Allows the department director to have access during
business hours to all places where automotive lubricants are
marketed;

(3)  Prohibits the storing or selling of automotive lubricants in
a deceptive manner; and

(4)  Allows the directors of the departments of Agriculture and
Revenue, upon request, to have access to shipping records of
automotive lubricants as kept by common carriers and marketers of
fuels or petroleum products.

The provisions regarding the managed environment livestock
operation tax credits will expire August 28, 2011; and the
provisions regarding the tax exemption for agricultural fencing,
forestry equipment, and motor fuel used for agricultural purposes
will expire six years from the effective date.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm