SB 942 Modifies provisions pertaining to the administration of agriculture incentives and programs
Sponsor: Clemens
LR Number: 3956L.06C Fiscal Note: 3956-06
Committee: Education
Last Action: 5/16/2008 - H Calendar S Bills for Third Reading w/HCS Journal Page:
Title: HCS SCS SB 942 Calendar Position:
Effective Date: August 28, 2008
House Handler: Quinn

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Current Bill Summary


HCS/SCS/SB 942 - This act modifies provisions pertaining to the administration of agriculture incentives and programs.

SECTION 135.633 - Tax Credit for MELO Accreditation

This act 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 to all taxpayers in any fiscal year shall not exceed $300,000. The Department of Agriculture shall promulgate rules to create the MELO accreditation program. The provisions of this section shall expire three years from the effective date of the Department's MELO rules.

SECTION 135.710 - Tax Credit for Alternative Fuel Stations

This act creates an income tax credit for the costs of constructing a qualified alternative fuel vehicle refueling property in tax years 2009, 2010, and 2011. The tax credit shall not exceed the lesser of $20,000 or 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment. The cumulative amount of credits which may be claimed shall not exceed $3,000,000 for taxable year 2009. For taxable year 2010, the cumulative amount of tax credits which may be claimed is reduced to $2,000,000, and for taxable year 2011, the amount is further reduced to $1,000,000. The act contains a recapture provision for refueling properties that cease sales of alternative fuel.

SECTIONS 135.800-135.805 - Tax Reporting Requirements

This act makes the MELO tax credit, the Family Farm Breeding Livestock Loan tax credit, and the Qualified Beef tax credit subject to the same reporting requirements as what is required for agricultural tax credits under the Tax Credit Accountability Act. The act also requires 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.

SECTION 142.028 - Qualified Biomass for Fuel Ethanol

Under current law, a qualified fuel ethanol producer is eligible for a monthly grant for fuel ethanol produced from Missouri agricultural products. This act allows such fuel ethanol to also be produced from biomass that is qualified by the Missouri Agricultural and Small Business Development Authority in consultation with the Conservation Commission. Fuel ethanol grant incentives paid for fuel ethanol produced from biomass are authorized between January 1, 2009 and December 31, 2019 and shall not exceed $10 million per year.

SECTION 143.114 - Hybrid Motor Vehicle Tax Deduction

The act creates an income tax deduction for tax year 2009, for a taxpayer's purchase of qualified hybrid vehicles. The deduction will equal the lesser of $1,500 or 10% of the purchase price of the vehicle. The tax deduction must be taken in the year in which the purchase is made.

SECTION 144.053 - Sales Tax Exemption for Forestry Equipment

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 Fencing and Fuel

This act creates a sales tax exemption for the purchase of fencing materials and motor fuel for agricultural purposes.

SECTION 260.546 - Hazardous Substance Spill Cleanup

Current law makes an owner of a released hazardous substance liable for reasonable cleanup costs. This act adds the requirement that the costs for which the owner is liable also be “necessary.” The act adds costs incurred for cleaning up any hazardous substances to the costs for which an owner is liable.

The act specifies a 60-day timeframe in which the political subdivision or volunteer fire protection association involved in the cleanup must submit the itemized statement of costs to the owner of the released substance. The statement of costs must include certain explanations for why the costs were incurred.

In the event of an appeal by the owner of the released hazardous substance, the burden of proof is on the political subdivision or volunteer fire protection association to justify the cleanup costs.

The act increases the timeframe from 30 days to 60 days in which the director of the Department of Natural Resources must notify the involved parties of his or her decision regarding an appeal.

SECTIONS 261.035-261.239 and 265.200 - Dept. of Ag. Name Changes

The act makes 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."

SECTION 263.232 - Noxious Weed Control

This act makes the plant spotted knapweed subject to existing noxious weed control laws.

SECTIONS 340.337-340.396 - Large Animal Veterinary Students

This act modifies provisions pertaining to the Large Animal Veterinary Medicine Loan Repayment Program and the Large Animal Veterinary Student Loan Program.

The act adds the requirement that permanent residency be "lawful" as a criteria for the eligibility standards applicable to participants in the Large Animal Veterinary Medicine Loan Repayment Program.

Currently, eligible veterinary students at the University of Missouri may be awarded up to $80,000 worth of Large Animal Veterinary Student loans for veterinary school. This act specifies that no more than $20,000 may be awarded per academic year and does not allow the loans to be awarded retroactively.

Under current law, the Department of Agriculture can forgive loans made through the Large Animal Veterinary Student Loan Program in exchange for large animal veterinary service in under-served parts of the state. This act places a dollar limit of $20,000 as the maximum amount that shall be forgiven by the Department per year of qualified service.

Under current law, a loan recipient is required to begin repayment within one year of completing the veterinary degree program unless the individual fulfills the qualified service requirement. The act requires a loan recipient who fails to meet the qualified service requirement to begin repayment within 6 months of the first day on which he or she did not meet the service requirement.

The act allows the Department to grant a loan deferment to anyone who is on active duty in any branch of the U.S. armed forces.

The Large Animal Veterinary Student Loan Program shall expire on June 30, 2013.

The act reorganizes the sections pertaining to the Large Animal Veterinary Student Loan Program.

SECTIONS 348.230-348.235 - Dairies

Subject to appropriation, the Missouri Agricultural and Small Business Development Authority (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 to exceed $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.

SECTIONS 348.430-348.432 - "In State" Requirement

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.

SECTION 348.505 - Tax Credit Maximum Increase

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 $300,000.

SECTIONS 348.515-348.533 - Loan Guarantee Program

MASBDA shall develop and implement a Livestock Feed and Crop Input Loan Guarantee Program, which shall provide loan guarantees for up to 50% of the amount of a loan on a declining principal basis, not to exceed $40,000 per individual loan. The loan guarantee program shall make such payment to eligible lenders in the event of loan default by recipients of loans given for the purpose of purchasing or growing feed for livestock production.

Beginning in fiscal year 2009, up to $4 million may be appropriated to administer the program. The act describes eligibility and other administrative requirements.

SECTIONS 414.012-414.122 - Automotive Lubricants

This act requires automotive lubricants to meet ASTM International standards. In the event no ASTM standard exists for certain fuels and petroleum-based products, the Department of Agriculture may promulgate rules that establish standards for such fuel or products, provided they are consistent with generally recognized national standards.

The act allows the Department to regulate the posting of prices for fuels, petroleum products, and automotive lubricants, and adds petroleum products and automotive lubricants to the types of products the Department has authority to inspect.

Under current law, the penalty for a first violation of the product standards, or the labeling and advertisement requirements for certain fuels and petroleum products shall not exceed a written reprimand. This act removes this provision.

Dealers, distributors, producers, or compounders of certain oils or fuels must provide a sample of automotive lubricants to the Department immediately upon request.

The act permits the director of the Department, or his or her representative, to have access during normal business hours to all places where automotive lubricants are marketed.

The act prohibits the storing or selling of automotive lubricants in a deceptive manner.

Upon request, the directors of the Departments of Agriculture and Revenue shall have access to shipping records of automotive lubricants as kept by common carriers and marketers of fuels or petroleum products.

SECTION 414.082 - Motor Fuel Inspection Fee

The act increases the maximum fee, from $.025 to $.03 per barrel, that may be assessed by the Department of Revenue for the inspection of gasoline, gasoline-alcohol blends, kerosene, diesel fuel, heating oil, aviation turbine fuel, and other motor fuels.

This act is similar to the perfected SB 898 (2008).

ERIKA JAQUES