CCS HCS SS SCS SB 931 -- AGRICULTURAL INCENTIVES AND PROGRAMS

This bill changes the laws regarding agricultural incentives and
programs.

ALTERNATIVE FUEL REFUELING STATION INCENTIVES (Section 135.710,
RSMo)

The bill authorizes a tax credit, from January 1, 2009, to
December 31, 2011, for eligible applicants who install and
operate a qualified alternative fuel vehicle refueling station.
The credit may be claimed for any tax year in which the applicant
is constructing the station.  The credit will be the lesser of
$20,000 or 20% of the total direct costs for the purchase and
installation of alternative fuel storage and dispensing
equipment.  The costs of purchasing land or an existing
alternative fuel vehicle refueling station or the construction or
purchase of a structure are not considered eligible costs.  The
total amount of tax credits which can be claimed cannot exceed $3
million in 2009, $2 million in 2010, and $1 million in 2011.  Tax
credits may be carried forward for two years and sold, but will
be forfeited if a tax credit recipient stops selling alternative
fuel.

AGRICULTURAL TAX CREDITS (Section 135.800)

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.

QUALIFIED BIOMASS (Section 142.028)

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.  Grants of up to $7.5 million will be
available for up to two qualified fuel ethanol producers.

STATE AND LOCAL SALES AND USE TAX EXEMPTION FOR AGRICULTURAL
FENCING, FORESTRY EQUIPMENT, AND MOTOR FUEL (Sections 144.053 and
144.063)

A state and local sales and use tax exemption is authorized for
fencing materials, forestry equipment, and motor fuel used for
agricultural purposes.

HAZARDOUS SUBSTANCES (Section 260.546)

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 (Section 261.035)

The Marketing Division within the Department of Agriculture is
renamed 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 (Section 263.232)

Persons, corporations, partnerships, the 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 are required to control the spread
of spotted knapweed (Centaurea stoebe ssp. micranthos, including
all subspecies), which is designated as a noxious and dangerous
weed to agriculture.

NATIONAL ANIMAL IDENTIFICATION SYSTEM (Section 267.168)

The bill allows the Department of Agriculture to support a
voluntary animal identification program.  The department is
prohibited from mandating National Animal Identification System
(NAIS) premises registration or participation in the NAIS
administered by the United States Department of Agriculture
without specific authorization from the General Assembly.

Any person who participates in the NAIS may withdraw from the
system at any time, and all personal information related to a
participant will be deleted from the system unless the
participant is part of an ongoing disease investigation or
disease monitoring or control program.

If these provisions interfere with the marketing of Missouri
livestock, the Governor, by executive order, can waive the
requirements until the General Assembly takes action to reinstate
or modify the provisions during the next regular session of the
General Assembly or any special session called by the Governor.

WATERSHED DISTRICTS (Section 278.070)

"Subdistrict," "watershed," and "watershed district" for purposes
of the Soil and Water Conservation Districts Law are defined and
will have the same meaning as the term "watershed district"
except when the term "subdistrict" is used to describe the
relationship to an established soil and water conservation
district or districts that may be established as a watershed
district.

PESTICIDES (Section 281.260)

Retailers will be given a reasonable amount of time in which to
dispose of existing stocks of pesticides in the event that a
manufacturer or distributor stops registering the product.

LARGE ANIMAL VETERINARY STUDENT LOAN ASSISTANCE (Sections
340.337, 340.341, and 340.375 - 340.396)

The bill changes the laws regarding the Large Animal Veterinary
Medicine Loan Repayment Program and the Large Animal Veterinary
Student Loan Program within the Department of Agriculture.  The
bill:

(1)  Adds lawful permanent residency in the United States to the
criteria for a student to be eligible to participate in the Large
Animal Veterinary Medicine Loan Repayment Program;

(2)  Specifies that up to six qualifying veterinarian students
can be awarded a maximum of $20,000 per academic year up to a
cumulative total of $80,000 with priority given to eligible
students who have established a financial need;

(3)  Specifies that the maximum amount the department can forgive
for each year of qualifying service is $20,000;

(4)  Requires a loan recipient who fails to meet the qualified
service requirement to begin repayment of the loan plus interest
within six months of the first day on which he or she did not
meet the service requirement; and

(5)  Authorizes the department to grant a loan deferment, not to
exceed four years, to a student who is on active duty in any
branch of the armed forces of the United States.

DAIRY COWS AND DAIRY OPERATIONS (Sections 348.230 and 348.235)

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 per individual, to defray the
administrative costs of processing a loan.

Subject to appropriations, 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 or no more than 90% of the cost of the plan,
whichever is less.  An application fee may be charged, not to
exceed $50 per grant application, to defray the administrative
costs of the grant.

The applicant's dairy operation must be located in Missouri and
be 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.

FAMILY FARM LIVESTOCK LOAN PROGRAM (Section 348.505)

The bill increases from $150,000 to $300,000 the maximum amount
of tax credits that the authority is authorized to issue annually
to eligible lenders participating in the Family Farm Livestock
Loan Program.

LIVESTOCK FEED AND CROP INPUT LOAN GUARANTEE PROGRAM (Sections
348.515 - 348.533)

The Missouri Agricultural and Small Business Development
Authority must provide assistance to independent livestock and
poultry family farm operations by implementing a livestock feed
and crop input loan guarantee program to grant partial guarantees
on loans for the purchase of livestock feed and crop inputs to
produce crops for feeding livestock.

Qualified independent family farm operations may be issued a
certificate of guaranty by the authority covering a 50%
first-loss guarantee on a declining principal basis to local
lenders, up to $40,000.  The authority will charge a one-time
participation fee of $50 on the loan.  A special loan guarantee
fee of up to 1% per annum of the outstanding principal of the
loan may be charged by the lender and paid to the authority.

The Livestock Feed and Crop Input Loan Guarantee Fund is created
consisting of moneys appropriated by the General Assembly;
bequests from federal, private, or other sources; and investment
income on the fund.  Beginning with Fiscal Year 2008 - 2009, the
General Assembly may appropriate up to $4 million to the fund.

The Large Animal Veterinary Student Loan Program will expire
June 30, 2013, and the provisions regarding tax credits for
alternative fuel vehicle refueling stations will expire six years
from the effective date.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm