HCSHB642--AGRICULTURE
SPONSOR: Diehl
COMMITTEEACTION:Voted"DoPasswithHCS"bytheStanding
CommitteeonAgriculturebyavoteof19to3.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
642.
Thisbillmodifiestheprovisionsrelatingtoagriculture.
FIRESUPPRESSIONSPRINKLERSYSTEMS(Scections64.198and321.220)
Thebillprohibitsacountyorfireprotectiondistrictsfrom
enactingorexercisingordinancesthatimposeregulationson,or
requirepermitswithrespecttotheinstallationorerectionof
firesuppressionsprinklersystemsinanimalorlivestock
agriculturalbuildingsorstructures.
ThisprovisionissimilartoHCSHB533(2025).
AGRICULTURALTAXCREDITS(Various)
Thebillrepealsthesunsetonthefollowingagriculturaltax
credits:
(1)WoodEnergyTaxCredit(Section135.305,RSMo);
(2)MeatProcessingFacilitiesInvestmentTaxCredit(Section
135.686);
(3)HighEthanolBlendSellerTaxCredit(Section135.772);
(4)BiodieselBlendSellerTaxCredit(Section135.775);
(5)BiodieselProducerTaxCredit(Section135.778);
(6)UrbanFarmsTaxCredit(Section135.1610);
(7)RollingStockTaxCredit(Section137.1018);
(8)AgriculturalProductionTaxCredits(Section348.436);and
(9)SpecialtyAgriculturalCropsTaxCredit(Sections348.491and
348.493).
Thebillalsospecifiesthatataxpayerclaimingataxcreditunder
theBiodieselBlendSellerTaxCreditisnotliableforpenalties orinterestonanincometaxbalancedueifthetaxpayerisdenied
partorallofataxcredittowhichthetaxpayerhasqualifieddue
tolackofavailablefunds,andsuchdenialcausesabalance-due.
Thetaxpayermustpaythebalanceduewithin60daysorbesubject
topenaltiesandinterest (Section 135.775).
ThisprovisionissimilartoHCSHB1317andSB466(2025).
BEGINNINGFARMERINCOMETAXDEDUCTION(Section143.121)
Currently,anindividualowneroffarmlandwhosellsallora
portionofsuchfarmlandtoa"beginningfarmer"cansubtractfrom
hisorherMissouriadjustedgrossincomecertainamountswhen
calculatingtheindividuals'taxobligation.
Thisbillbroadensthescopeofthosetaxpayerswhocansubtract
certainamountsfromtheirMissouriadjustedgrossincome
calculations.
ThisprovisionissimilartoHCSHB1042(2025).
AGRICULTURALEDUCATION(Section178.530)
Thisbillendsthecurrentpilotprogramforagricultureeducation
inelementaryschoolsinthe2025-26schoolyearandauthorizes
thatbeginninginthe2026-27schoolyeartheprogramcanbe
implementedbytheDepartmentofElementaryandSecondaryEducation
statewideforallelementaryschools.
ThisprovisionissimilartoHCSHB1555&1026(2025).
FENCESANDENCLOSURES(Sections272.138and272.380)
Thebillspecifiesthatiftheownerofapropertyoracontractor
hiredbytheownerconstructs,maintains,orrepairsadivision
fenceusedtoencloseafieldorenclosurewhereanimalsarekept,
theownerorcontractorcanenterontotheadjoiningpropertyupto
10feettorepair,maintain,orconstructthefence.Theowneror
contractorisnotliablefordamagesforclearinganytrees,brush,
orvegetationwithinthe10footboundaryordivisionfence.
However,theownerorcontractorwouldbeliablefordamagescaused
byentryontotheadjoiningproperty,includingdamagestocrops.
Theseprovisionsdonotincludeadjoiningpropertyownedbyany
utilitycompany,railroad,orcertainzoologicalparks,wildlife
conservationfacilities,oranimalsanctuaries. Theprovisionsdo
notallowanownerorcontractortoenterintoabuildingonthe
adjoiningproperty. ThisprovisionissimilartoHCSHB1116(2025).
WATEREXPORTATIONPERMITS(Section640.406)
Thebillprohibitsanypersonfromexportingwaterresources
outsidetheStateunlessthepersonholdsawaterexportation
permitissuedbytheDepartmentofNaturalResources,subjectto
certainspecifiedexemptions.
TheDirectoroftheDepartmentmustrevieweachwaterexportation
permitapplicationandallsupportingdocumentstoensurethe
requiredconditionshavebeenmetpriortoacceptingawater
exportationapplicationforpubliccommentandreviewbytheState
SoilandWaterDistrictsCommission. Intheeventofaconflict
betweenwaterusesoutsidetheStateandtheneedsoftheState,
theDirectorandtheCommissionmustprioritizetheneedsofthe
State.
Within180daysafterreceiptofacompleteapplication,the
Directormustdeterminewhethertheapplicantcompliedwiththe
requirementsforapermit.Aftermakingsuchadetermination, the
Directormustholda30-daypubliccommentperiodregardingthe
determination. Within60daysafterthecommentperiod,the
Directormustrecommendapprovalordenialofthepermitandsubmit
therecommendation andpubliccommentstotheCommission. The
Commissionmustmakethefinaldecisionastotheapprovalor
denialofthepermit,asspecifiedinthebill.
Torenewawaterexportationpermit,anapplicantmustfilea
renewalapplicationwiththeDepartment,asrequiredinthebill.
Theprocessforreviewingtherenewalapplicationisdescribedin
thebill.Intheabsenceofanappeal,thedecisionofthe
Commissionmustbefinal.
Thepermitisineffectforthreeyearsfromissuanceandthe
permitholderwillannuallyreportthewaterusevolumesand
withdrawalratestotheDepartment. Thewaterexportationpermit
applicationmustincludeallwaterexportationrequestedbythe
applicant. Anapplicantcanincludemultiplewaterwithdrawalsfor
exportfromvariouslocationswithinonewaterexportationpermit
application.
AmajorwaterusercanrequesttheDepartmenttoreevaluateany
existingwaterexportationpermitusingthecriteriaspecifiedin
thebill.TheDepartmentmustcreateamechanismforamajorwater
usertosubmitarequestforreevaluationofthepermit.
Apersonisnotprecludedfrombringinganyclaimtodefendthe
person'swaterrights.Apermitwillnotserveasadefensetoany claimbroughtagainstawaterpermitholderfortheinfringementof
waterrights.Inaddition,anypersonharmedbytheissuanceofa
permitcanbringactiontoenforcetheprovisionsofthebill.
IftheAttorneyGeneralreceivesacomplaintforviolationsofthe
provisionsofthebill,orattherequestoftheDepartment,the
AttorneyGeneralcanbringacivilaction.Asuitcanbebrought
inColeCountyoranycountywherethedefendant'sprincipalplace
ofbusinessislocatedorwherethewithdrawalofwateroccurred.
WheneverastateofemergencyisdeclaredbytheGovernorinany
partoftheStatebasedondroughtconditions,theDepartmentmust
reevaluateanyexistingwaterexportationpermit.
ThisprovisionissimilartoHCSHB1295andSB82(2025).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: Supporterssaythatthetaxcreditsaffectedbythis
billhavehelpedspurgrowthinagriculturalproductsthroughout
theStateandsupportjobcreationandretentionintheindustry.
Byremovingthesunsetsonthetaxcredits,thebillwillprovide
thoseintheagricultureindustrywithcertaintythatwhenthey
investincertainprogramsthetaxincentiveswillstillbein
place.
TestifyinginpersonforthebillwereRepresentative Diehl;
MissouriCattlemen’sAssociation;RailwaySupplyInstitute,
MissouriForestProductsAssociation; MissouriRenewableFuels
Association;PoetBiofuels;MissouriPorkAssociation;Missouri
SoybeanAssociation;Mo-Ag;MissouriCornGrowersAssociation;and
MissouriFarmBureau.
OPPONENTS: Therewasnooppositionvoicedtothecommittee.
OTHERS:Otherstestifyingonthebillansweredquestionsaboutthe
historyoftheprogramshousedundertheMissouriAgriculturaland
SmallBusinessDevelopmentAuthorityandtheeffectivenessofthe
programs.
TestifyinginpersononthebillwereJillWood,Missouri
AgriculturalandSmallBusinessDevelopmentAuthority;andTrinity
Crouch,MissouriDepartmentofAgriculture. Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.