- House Committee Substitute -

HCS/SS/SCS/SBs 740, 886 & 1178 - This act pertains to agriculture programs. A breakdown of the act follows:

SECTION 148.330 - Pertaining to agricultural tax credits. This section makes changes to subsection 4 of Section 148.330, RSMo, with regard to holding both schools and counties harmless with the apportioned moneys from the county stock insurance fund. Additional language was added that clarifies that the county stock insurance fund shall be included in the calculation of state revenue pursuant to article x, section 18, the Missouri Constitution. This section is similar to SB 740 and SB 84 (2003).

These tax credits may be carried back three tax years. The substitute decreases the required number of employees in an employee-qualified capital project from 100 to 60 for investors to receive a New Generation Cooperative Incentive Tax Credit.

SECTION 261.115 - Records and documents submitted to the department of agriculture that may endanger the competitiveness of a business shall be deemed a "closed record".

SECTIONS 261.256 and 261.259 - Pertaining to grower's districts. This section creates voluntary districts for individuals who are owners or operators of land used in the cultivation of commercial crops within the physical boundaries of the district. These sections are similar to SB 886 and provisions (Sections 261.250 to 261.289) that were contained in SS/SCS/HCS/HB 257 (2003).

SECTION 265.475 - Pertaining to meat inspection programs. This section authorizes the director of the department of agriculture to promulgate regulations consistent with and equal to the Federal Meat Inspection Act, the Federal Poultry Products Inspection Act, and all other similar federal regulations.

SECTIONS 348.406 to 348.410 - Pertaining to the Agricultural Business Development Loan Program. This section allows the Missouri Agricultural and Small Business Development Authority (MASBDA) to issue certificates of guaranty covering a first loss up to but not more than fifty percent for eligible borrowers. This section states that outstanding guaranteed loans shall at no time exceed an amount which would allow immediate redemption of twenty percent of the outstanding loans guaranteed by the fund at any one time. This section is similar to SB 1178.

SECTIONS 348.430 to 348.432 - Pertaining to agricultural tax credits. These sections allow contributors to take the tax credits for new generation cooperatives and new generation processing entities on a quarterly basis. An allowance is made for tax credits allowed under this section, for all fiscal years beginning on or after July 1, 2004, to be carried back to any of the contributor's three prior tax years and forward to any of the contributor's five subsequent taxable years. Current law states that these tax credits may be sold or transferred, new language states that the new owner of the tax credit shall have the same rights as the contributor.

This act adds language that mirrors the "carry back three prior tax years and forward any five" is added to by new language that clarifies that option can be entertained regardless of the type of tax liability to which such credits are applied.

SECTIONS 267.470 to 267.556 - Obsolete provisions repealed with this act pertaining to animal health and incpections.

MEGAN CRAIN