SB 428 Modifies various provisions relating to agriculture
Sponsor: Purgason
LR Number: 1607L.09C Fiscal Note: 1607-09
Committee: Agriculture, Conservation, Parks & Natural Resources
Last Action: 5/18/2007 - H Calendar S Bills for Third Reading Journal Page:
Title: HCS SS SCS SB 428 Calendar Position:
Effective Date: August 28, 2007
House Handler: Quinn

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Current Bill Summary


HCS/SS/SCS/SB 428 - This act modifies provisions related to agriculture.

SECTION 135.633 - MELO Tax Credits

This section creates a tax credit for odor abatement activities by concentrated animal feeding operations. The tax credit shall be equal to either: 1) the lesser of fifty percent of the eligible expense incurred by a producer to achieve Managed Environment Livestock Operation (MELO) accreditation or fifty thousand dollars; or 2) the lesser of seventy-five percent of the eligible expense incurred by a producer to meet preferred environmental practices or seventy-five thousand dollars. The cumulative amount of tax credits issued by the Missouri Agricultural and Small Business Development Authority (MASBDA) to all taxpayers in any fiscal year shall not exceed $3,000,000. The provisions of this section shall expire June 30, 2012.

This section is similar to HB 881 (2007) and SB 643 (2007).

SECTION 135.660 - Qualified Beef Tax Credit

This section authorizes the Missouri Agricultural and Small Business Development Authority to issue a tax credit in an amount equal to 10 cents per pound above 450 pounds when qualified beef cattle are sold and 10 cents per pound above the previous weight if the weight of the qualified beef at a subsequent sale is greater than the weight at the previous sale. The beef cattle must be born in Missouri after August 28, 2007 and must have been raised and finished in-state to qualify for the tax credit. The maximum amount of tax credits that may be issued beginning January 1, 2009, and ending December 31, 2016, shall not exceed $500,000 per year, and the cumulative total for all years shall not exceed $500,000.

This section is similar to HB 630 (2007).

SECTION 135.678 - Odor Control Tax Credit

This act creates a tax credit program for certain odor abatement activities by Class IB, Class IC, and Class II CAFOs. Any owner of these CAFOs who installs certain odor control technologies can apply for a tax credit for 50% of the cost to install such technologies, up to a maximum of $100,000 per CAFO per year. The CAFO Review Board, which is created in the act, shall administer the tax credit program and shall issue no greater than $2 million of credits per fiscal year. Tax credits shall be issued based on priority of need and the tax credit program shall sunset December 31, 2012.

This section is similar to SS/SCS/SB 364 (2007).

SECTIONS 135.800-135.805 - Tax Credit Accountability

These sections make the Family Farm Breeding Livestock Loan tax credit subject to the same reporting requirements as what is required for agricultural tax credits under the Tax Credit Accountability Act. The sections also require new generation cooperatives to report under the Tax Credit Accountability Act, when an agricultural tax credit is issued as a result of a producer member investing in the cooperative.

These sections are similar to SB 503 (2007) and HB 840 (2007).

SECTION 142.028 - Fuel Ethanol from Qualified Biomass

Under current law, a qualified fuel ethanol producer is eligible for a monthly grant for fuel ethanol produced from Missouri agricultural products. This section allows such fuel ethanol to also be produced from biomass that is qualified by MASBDA in consultation with the Conservation Commission. Fuel ethanol grant incentives paid for fuel ethanol produced from biomass are authorized between January 1, 2008 and December 31, 2018, not to exceed $10 million per year.

This section is similar to HCS/HB 709 (2007) and SCS/SB 499 (2007).

SECTION 142.031 - Biodiesel Production using Out-of-State Feedstock

Under current law, the biodiesel producer monthly incentive payment is calculated based on the estimated number of gallons of biodiesel produced from agricultural products originating in Missouri. This section removes the in-state origination criteria and allows the incentive payment to be calculated based on the amount of biodiesel produced from agricultural products originating in any state.

This section is similar to SS/SCS/SB 571 (2007).

SECTION 144.030 - Sales Tax Exemptions

This section includes "trailers manufactured in Missouri" as part of the definition of "farm machinery and equipment" for which a sales tax exemption shall apply and authorizes the sales tax exemption for diesel fuel to include gasoline, kerosene, and other blended fuel if they are used exclusively for agricultural purposes.

The sales tax exemption for tangible personal property used for research and development of prescription pharmaceuticals is expanded to include a sales tax exemption for utilities used for this purpose or for the research and development of agricultural biotechnology or plant genomics products. The section removes the existing provision that limits the amount of sales tax exemptions at $1,300,000 per year and removes the June 30, 2003 expiration date for the sales tax exemption for tangible personal property used by life science companies.

This section is similar to HB 323 (2007).

SECTION 144.051 - Sales Tax Exemption for Forestry Products

Any new or used farm tractors, machinery, or equipment, including parts, supplies, and fuel, used to plant, harvest, process, or transport forestry products shall be exempt from state and local sales tax, similar to other farm machinery in section 144.030.

SECTION 144.063 - Sales Tax Exemption for Agricultural Fencing

This section creates a sales tax exemption for the purchase of fencing materials for agricultural purposes and contains an emergency clause.

This section is similar to HB 711 (2007) and HB 477 (2007).

SECTION 192.300 - Local Public Health Laws

The act prohibits any county public health order, ordinance, rule, or regulation from applying to agricultural operations, but allows any such existing local law to remain in effect until such time as the MELO standards required under the act are developed. This prohibition does not apply to public health matters located on a farm that are not intrinsically related to the agricultural operation, nor does the prohibition restrict any planning or zoning authority otherwise granted to a county.

This section is similar to SS/SCS/SB 364 (2007).

SECTIONS 261.035-261.239 and 265.200 - Department of Agriculture Name Changes

These sections make the following name changes in the Department of Agriculture: the Marketing Division to the "Agriculture Business Development Division;" the Marketing Development Fund to the "Agriculture Business Development Fund;" the Missouri Agricultural Products Marketing Development Fund to the "AgriMissouri Fund;" and the Citizen's Advisory Commission for Marketing Missouri Agricultural Products to the "AgriMissouri Advisory Commission for Marketing Missouri Agricultural Products."

These sections are similar to HB 841 (2007) and SB 488 (2007).

SECTION 261.175 - MELO Standards

The act directs the Department of Agriculture to develop standards for a “Managed Environment Livestock Operation” or “MELO,” which is a CAFO that implements certain best management practices. The Department shall develop procedures to determine if a CAFO meets the MELO standards and shall make such determinations within 30 days of the receipt of a CAFO permit application by the Department of Natural Resources.

This section is similar to SS/SCS/SB 364 (2007).

SECTION 263.232 - Noxious Weeds

This section makes the plants spotted knapweed and sericea lespedeza subject to existing noxious weed control laws.

This section is similar to HCS/HB 244 (2007).

SECTION 265.525 - Missouri Rice Certification Act

This section establishes the Missouri Rice Certification Act, which prohibits the production, transporting, or handling of certain rice varieties except as provided in rules promulgated by the Department of Agriculture.

The Rice Advisory Council is created, made up of ten members with representation described. The Council may: identify and review rice varieties with characteristics of commercial impact; review terms and conditions of rice identity preservation programs; and make recommendations to the director of the Department of Agriculture.

The Department shall promulgate rules to implement the provisions of this section. The Department shall: prevent the contamination of rice that has not been identified as having characteristics of commercial impact; require certain notifications for producers, transporters, and receivers of rice with characteristics of commercial impact; enforce restrictions on rice with characteristics of commercial impact; and investigate alleged violations, issue written notices of violation, and impose penalties for violation.

The Department shall regularly report to the Rice Advisory Council with regard to rice varieties with the potential to have characteristics of commercial impact. Within 60 days of the receipt by the Department of any recommendation made by the Rice Advisory Council with regard to rice varieties that have unreasonable adverse impact on the environment or public health, the Department shall hold a public hearing. Within 30 days of any such hearing, the Department shall issue a detailed response to the Council's recommendation.

The penalty for violation shall be at least ten thousand dollars but not more than one hundred thousand dollars per day per violation. The provisions of this section become effective one hundred eighty days from the August 28, 2007.

This section is similar to SS/SCS/SB 387 (2007).

SECTION 267.165 - National Animal Identification System (NAIS)

The act prohibits the Department of Agriculture from participating in the National Animal Identification System (NAIS) administered by the U.S. Department of Agriculture mandating participation in premises registration, animal identification, and animal tracing without specific authorization of the General Assembly.

Nothing in the act shall be construed as prohibiting the Department of Agriculture from issuing voluntary premises identification and participating in any voluntary or private animal identification program that verifies the health of livestock required for interstate export or marketing, or to address a specific disease. The act does not prohibit the Department from participating in a voluntary or private animal identification program for the purpose of adding value to Missouri livestock.

Conditions are listed for any voluntary animal identification program in which the Department participates. The Department may make reasonable requirements for participation in any voluntary or private animal identification program.

Failure to participate in a premises registration or animal identification program shall not be deemed a crime, nor evidence of any negligence on the part of any livestock owner.

This section is similar to HB 747 (2007).

SECTION 311.297 - Wine Tasting

Wineries, distillers, manufacturers, wholesalers, or brewers may hold alcoholic beverage tastings off a licensed retail premises, provided no sales transactions take place. Alcoholic beverage tastings may be held by these same entities on temporarily licensed retail premises.

This section is similar to HB 44 (2007) and HB 81 (2007).

SECTIONS 340.335-340.405 - Large Animal Veterinary Student Loan Assistance

Administration of the Large Animal Veterinary Medicine Loan Repayment Program is transferred from the Missouri Veterinary Medical Board to the Department of Agriculture. The number of veterinarians to whom repayment can be granted each year is increased from five to six and the number of years an individual must agree to work in an area of defined need is decreased from five to four. The maximum amount of loan repayment that may be paid on behalf an individual per year of service is increased from $10,000 to $20,000.

The Large Animal Veterinary Student Loan Program is created, which makes loans available to a maximum of six eligible students per year at the College of Veterinary Medicine at the University of Missouri-Columbia. A student may receive loan funding for each year he or she remains in good standing at the College, up to a maximum of $80,000. Loan principal and interest shall be forgiven provided the loan recipient practices large animal veterinary medicine in underserved areas of the state as determined by the Department. The program shall expire on June 30, 2013.

The director of the Department shall appoint an advisory panel to make recommendations regarding the administration of both the Large Animal Veterinary Medicine Loan Repayment Program and the Large Animal Veterinary Student Loan Program.

These sections are similar to SS/SCS/SB 320 (2007) and HCS/HB 693 (2007).

SECTIONS 348.230-348.235 - Dairy Cows

MASBDA shall pay for the first full year of interest on any applicable Missouri linked deposit program loan, provided the loan pertains to the acquisition of dairy cows. MASBDA may charge a fee up to $50 for this service.

Subject to appropriation not exceeding $50,000, MASBDA shall award dairy business planning grants for up to $5,000 per grant or no greater than 90% of the cost of the plan, whichever is less. MASBDA may charge a fee up to $50 to apply for a grant. Eligible applicants for the grants shall be existing or start-up dairy operations in Missouri that are at least 51% owned by Missouri residents. MASBDA may promulgate rules for the grant program to establish eligibility and award criteria.

These sections are similar to SB 444 (2007), SB 471 (2007), and HCS/HB 346 (2007).

SECTIONS 348.430-348.432 - "Within the State" Criteria

A new generation cooperative must operate within the state in order to be eligible for either the Agricultural Product Utilization Contributor tax credit or the New Generation Cooperative Incentive tax credit.

These sections are similar to SB 503 (2007) and HB 840 (2007).

SECTION 348.434 - Increasing Certain Agricultural Tax Credits

This section increases from $6 million to $12 million the aggregate amount of tax credits that may be issued per fiscal year for the Agricultural Product Utilization Contributor tax credit and the New Generation Cooperative Incentive tax credit.

MASBDA is allowed to issue up to $1 million in Agricultural Product Utilization tax credits in any fiscal year to individuals contributing cash funds. Additional Agricultural Product Utilization tax credits may be issued in circumstances as described.

This section is similar to SB 489 (2007) and HCS/HB 346 (2007).

SECTION 348.465 - CAFO Review Board

The act creates the CAFO Review Board, which shall be a 5-member board composed of the directors of the Department of Agriculture and the Department of Natural Resources, the director of the Commercial Agriculture Program at the University of Missouri, the executive director of the Missouri Association of Counties, and a representative of Missouri’s agricultural community. The board shall contract with the Missouri Agricultural and Small Business Development Authority for use of the Authority’s staff to carry out its functions. The duties of the Board are to: review and revise the MELO standards, approve expenditures from the Concentrated Animal Feeding Operation Indemnity Fund, administer the odor control tax credit program created in the act, and provide input to the Department of Natural Resources on its CAFO permitting process.

This section is similar to SS/SCS/SB 364 (2007).

SECTION 348.505 - Family Farm Livestock Loan Interest Tax Credit

The total cumulative amount of tax credits issued by MASBDA per fiscal year for interest waived for family farm livestock loans is increased from $150,000 to $1,000,000.

This section is similar to HB 748 (2007).

SECTION 414.420 - Missouri Alternative Fuels Commission

The Missouri Ethanol and Other Renewable Fuel Sources Commission is renamed as the "Missouri Alternative Fuels Commission" and its membership is expanded from seven to nine members. The Commission shall: 1) make recommendations on legislation to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles; 2) promote the production and use of alternative fuels; 3)promote the development and use of alternative fuel vehicles and other related technology; 4)educate consumers about alternative fuels; 5) develop a long-range plan to reduce petroleum fuel use; and 6) report annually to the Governor and General Assembly.

This section is similar to SCS/SB 156 (2007).

Section 444.770 - Gravel Removal

Individuals removing gravel from property for purposes other than gravel mining shall be exempt from requiring a surface mining permit, with certain notification and tonnage maximum requirements listed. No gravel may be removed between March 15th and June 1st of any year or when the gravel site is within a certain distance from specified pieces of infrastructure.

This section is similar to HCS/HB 628 (2007).

SECTION 537.295 - Protection for Farms against Suits of Trespass

Under current law, farms and farming-related activities are protected against nuisance suits resulting from changed conditions in land around the farm, provided the farm or activity has been in existence at least one year and has not previously been found a nuisance. This act adds protection from suits of trespass for farms and farming activities under the same conditions. Additionally, current law allows farms and farming-related activities to reasonably expand and still retain their protected status against nuisance suits, provided the farm or farming activity meets certain criteria as specified. This act allows farms and farming-related activities to also reasonably diversify or modernize under similar criteria and remain protected against suits of nuisance and trespass.

The act protects farms and farming-related activities from suits of nuisance or trespass for any condition resulting from, but not limited to, the acts of planting, cultivating, harvesting, mowing, applying pesticides or herbicides, land clearing, livestock management, or construction of farm roads, lakes, and ponds.

Farms or farming-related activities are not protected from suits of nuisance or trespass resulting from negligent conduct.

This section is similar to SS/SCS/SB 364 (2007).

SECTION 578.018 - Impoundment of Animals

Existing law allows an authorized public health official or law enforcement officer to seek a warrant to enter private property to inspect, care for, or impound neglected or abused animals. This act also allows such official or officer to enter private property for the purpose of quarantining a neglected or abused animal.

The act prohibits the impounding of any farm animal that weighs more than 50 pounds unless such animal is determined to be in imminent danger of dying or if the animal’s condition cannot be reasonably improved before a disposition hearing can take place.

The State Veterinarian, or his or her designee, shall accompany any official or officer onto private property for purposes of examining any farm animal believed to be neglected or abused. If the veterinarian believes further action is needed to protect the animal, the veterinarian shall advise the court on appropriate actions which shall include quarantine, impoundment, placement, medical treatment, or euthanasia. Farm animals not impounded shall be quarantined by the veterinarian. Owners of such farm animals shall be given written instructions regarding how to correct the animal's condition, and the veterinarian shall make follow-up visits to verify the improvement of the quarantined animal's condition. Animals whose conditions have not improved during the quarantine are subject to impoundment.

The act adds a provision requiring the notice given to any owner of an animal taken into custody under this act to be in writing and requires diligent effort to notify the owner of any farm animals when they are believed to have been under the care of someone other than the owner.

This section is similar to HB 46 (2007).

Sections 640.710-640.740 - Department of Natural Resources

Upon the promulgation of the MELO standards required in the act, any new Class I CAFO that meets the MELO standards shall be subject to existing buffer requirements for public buildings and occupied residences. Any new Class I CAFO that does not meet the MELO standards shall be subject to the existing buffer requirements plus 25%. Existing Class I CAFOs are exempt from the new buffer requirements, however if such CAFO expands to a higher classification, it shall be subject to the new buffers.

The Department of Natural Resources may recommend a variance to the required buffer distances, which shall be sent to the applicable county governing body. If the county rejects the variance and provides written notice of the rejection to the Department within a certain 60-day time period, the Department shall not authorize the variance.

The act removes a provision stating that state regulation of certain concentrated animal feeding operations shall not be construed as restricting local control over concentrated animal feeding operations.

The Department of Natural Resources shall submit a copy of any draft operating permit issued for a new Class IA CAFO to the applicable county governing body. If the county rejects the draft operating permit and provides written notice of the rejection to the Department within a certain 60-day time period, the Department shall not approve the draft permit as a final permit.

The act requires Class II CAFOs with more than 650 animal units to obtain either a letter of approval or an operating permit from the Department of Natural Resources. The act provides certain buffer and neighbor notice requirements for such CAFOs.

The act gives statutory authority for the Department to regulate CAFOs that are not required by law to have a permit to operate, but who choose to be voluntarily-regulated.

Current law allows the Concentrated Animal Feeding Operation Indemnity Fund to be used to close abandoned CAFOs. This act also allows the Fund to be used to address animal manure spills from Class I or II CAFOs, when such spill results in a county being liable for the cost of cleanup.

These sections are similar to SS/SCS/SB 364 (2007).

ERIKA JAQUES