SCS/HCS/HB 581 - This act revises numerous provisions relating to agriculture.

TERRITORIAL AGREEMENTS - This portion of the act provides for the ability to enter into an agreement and the resolution of disputes regarding provision of water service to property annexed into a political subdivision that is also located in a water district which does not currently receive water service from the political subdivision or water district.

FARMLAND PROTECTION ACT - This act creates the Farmland Protection Act. The provisions of the act only apply to tract of real property that are comprised of at least 10 contiguous acres and at least 75% of the property must be used for farming purposes. The state or any political subdivision shall hold sewer and water assessments in abeyance until improvements on property covered by the act are connected to the sewer or water system or when the property ceases to be used for farming purposes. The political subdivision shall notify the owner of the details of the assessment and the provision of the Farmland Protection Act.

In Kansas City, property entitled to protection pursuant to this act, an initial assessment can be charged for the proportionate cost of water or sewer improvements up to $500 per acre but not to exceed $10,000. The remaining portion will be held in abeyance until improvements on property covered by the act are connected to the sewer or water system.

If a political subdivision sues to have this act declared null and void, the owner of the property will be considered a state agency and shall have legal representation provided by the state. If the political subdivision then loses the suit they will be liable to reimburse the state for the costs of defense.

A notice is required to be given to purchasers of property located within one-half mile of any property used for agriculture or farming purposes and the language of the notice is provided.

Property subject to the provisions of the act may not be taken by eminent domain unless a public hearing is held. This portion of the act is similar to SB 9 and SB 509 (2001).

AGRICULTURAL COOPERATIVES - The restriction on cooperative marketing associations dealing with non-members is revised. Cooperative marketing associations must do at least 25 percent of its business with its members. The restriction is changed in Section 274.060, RSMo which deals with Cooperative Marketing Associations and the definitional of Section 409.401, RSMo, dealing with securities. This portion of the act is similar to SB 462 (2001).

WATERSHED DISTRICTS - The term for soil and water conservation subdistricts is changed to watershed districts. Authority for soil and water conservation watershed districts would vest with the watershed district except in matters of formation, consolidation, expansion or disestablishment of the watershed district. The soil and water conservation district supervisor of the soil and water conservation district will act in an advisory capacity to the watershed district board and watershed district trustees are vested with governing authority. Five landowners of the watershed districts will be elected as trustees of the watershed district. Vacancies in unexpired terms will be filled by appointment by the state soil and water districts commission.

LARGE ANIMAL VET LOAN REPAYMENT PROGRAM - This act would create the Large Animal Veterinary Medicine Loan Repayment Program. The Missouri Veterinary Medical Board would designate areas of defined need. Up to five veterinary students, in their final year of education, would be eligible to enter a contract with the Board to receive up to $10,000 for each year of obligated services. Funds for the program are subject to appropriation. This portion of the act is similar to SB 532 and HB 411 (2001).

TAX CREDITS - Tax credits from the Agricultural Product Utilization Contributor Tax Credit or the New Generation Cooperative Incentive Tax Credit will be allowed to be claimed either as a credit against the tax or the estimated quarterly tax. The New Generation Cooperative Incentive Tax Credit is modified to change the allocation of the tax credits between small capital costs projects, employee qualified capital projects and large capital projects as well as eligibility to claim the credit. This portion of the act is similar to HB 308.

FARM EQUIPMENT - Retailers who sell and service farm equipment and who do warranty work shall be reimbursed by the manufacturer at the same hourly rate as nonwarranty work.

BIODIESEL - School districts, for school years 2002-2003 and lasting through 2005-2006, are allowed 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 0.065% of the 1998-1999 entitlement for state transportation aid, but may be increased by 4% each year. This portion of the act is similar to SB 615 and HB 868 (2001).

PRIVATE WATER SYSTEMS - Missouri landowners have the right to own private water systems, unless prohibited by city ordinance, as long as the landowner complies with all regulations of DNR. This provision is similar to a provision in SCS/HB 501.

LIVESTOCK DISEASE CRIME - It is a Class D felony for a person to knowingly and with malicious intent spread any type of contagious, communicable or infectious disease among livestock.
CINDY KADLEC