HCS HB 908 -- FOREST CONSERVATION LANDS

SPONSOR:  McBride

COMMITTEE ACTION:  Voted "do pass" by the Committee on State
Parks, Natural Resources and Mining by a vote of 15 to 0.

This substitute establishes a forest conservation lands
program.  Owners of tracts 15 acres or larger may apply to the
Conservation Commission to have up to 1,000 acres classified as
forest conservation lands.  Classification is for a period of 20
years and may be renewed.  Owners of lands currently classified
as forest croplands may apply to have their lands reclassified
as forest conservation lands.  Total enrollment in the program
is capped at 2 million acres.

Owners of forest conservation lands must implement a forest
management plan approved by the commission and may not convert
their land to pasture or other uses.  Beginning January 1, 2000,
owners are eligible for an income tax credit of $3.50 per acre
per year for the first 5 years of classification.  The credit
increases by 50 cents per acre for each successive 5-year period
of classification, reaching a maximum of $5 per acre per year
for the fourth 5-year period of classification.  Owners who
apply for a second 20-year classification receive a credit of $5
per acre per year for the entire period of classification.
Credits are not transferrable or refundable, but may be carried
forward up to 3 years.

Owners who fail to follow their approved management plan will be
removed from the program and must reimburse the state for all
tax credits received plus 10% interest.  Owners who voluntarily
remove their land from the program before expiration of the
classification must reimburse the state for all tax credits
received plus 5% interest.

The substitute also changes the existing forest croplands
program.  The minimum acreage requirement is decreased from 20
to 15 acres, the term of enrollment is decreased from 25 to 20
years, and the 6% yield tax assessed on timber harvested from
forest croplands is repealed.

Finally, the substitute repeals provisions that allow landowners
to make payments to the commission for special attention in
forest fire control.

FISCAL NOTE:  Estimated Net Decrease to General Revenue Fund of
$525,000 in FY 2000, $902,391 in FY 2001, and $1,225,000 in FY
2002.  Estimated Net Decrease to Conservation Fund of $374,095
in FY 2000, $288,822 in FY 2001, and $294,650 in FY 2002.

PROPONENTS:  Supporters say that an update of forestry law is
needed in response to increasing demands on forest resources.
This bill provides financial incentives that enhance
opportunities for sustainable forest management.

Testifying for the bill were Representative McBride; Missouri
Forest Products Association; Department of Conservation;
Conservation Federation of Missouri; and Missouri Coalition for
the Environment.

OPPONENTS:  There was no opposition voiced to the committee.

Terry Finger, Senior Legislative Analyst

HB 908 -- Forest Conservation Lands

Sponsor:  McBride

This bill establishes a forest conservation lands program.
Owners of tracts 15 acres or larger may apply to the
Conservation Commission to have up to 1,000 acres classified as
forest conservation lands.  Classification is for a period of 25
years and may be renewed.  Owners of lands currently classified
as forest croplands may apply to have their lands reclassified
as forest conservation lands.  Total enrollment in the program
is capped at 2 million acres.

Owners of forest conservation lands must implement a forest
management plan approved by the commission and may not convert
their land to pasture or other uses.  Beginning January 1, 2000,
owners are eligible for an income tax credit of $3 per acre per
year for the first 5 years of classification.  The credit
increases by 50 cents per acre for each successive 5-year period
of classification, reaching a maximum of $5 per acre per year
for the fifth 5-year period of classification.  Owners who apply
for a second 25-year classification receive a credit of $5 per
acre per year for the entire period of classification.  Credits
are not transferrable or refundable, but may be carried forward
up to 3 years.

Owners who fail to follow their approved management plan will be
removed from the program and must reimburse the state for all
tax credits received plus 10% interest.  Owners who voluntarily
remove their land from the program before expiration of the
classification must reimburse the state for all tax credits
received plus 5% interest.

In other provisions, the bill decreases the minimum acreage
requirement for participation in the forest croplands program
from 20 to 15 acres and repeals provisions that allow landowners
to make payments to the commission for special attention in
forest fire control.