HS HCS HB 1762 -- MARKETING OF MISSOURI AGRICULTURAL PRODUCTS
(Williams, 159)

This substitute permits family farms, family farm corporations,
and eligible new generation cooperatives formed in Missouri to
participate in the Neighborhood Assistance Act.

Organizations which perform community service or economic
development activities are permitted to qualify as neighborhood
organizations under the act by contributing to help finance a
building or structure and any equipment necessary therein which
is located within the state and used to sell or add value to
agricultural food products grown or produced in Missouri.  Under
the act, business firms making contributions to neighborhood
organizations receive tax credits.  The total amount of tax
credits allowed is $2.5 million per fiscal year for fiscal years
2002 to 2006.

The agricultural marketing program currently known as
AgriMissouri is renamed "Producers Choice."

The Department of Agriculture, for the use of the Marketing
Division, is to develop and implement rules and regulations by
product category for all Missouri agricultural products.

The substitute also creates the Missouri Agricultural Products
Marketing Development Fund, for the use of the Marketing
Division of the Missouri Department of Agriculture.  Subject to
appropriation, $1.3 million in 2002, $1 million in 2003, and
$750,000 in 2004 to 2006 from the General Revenue Fund and fees
collected pursuant to participation in the Producers Choice
trademark marketing program are to be placed in the fund.

The Citizens' Advisory Commission for Marketing Missouri
Agricultural Products is created to advise the Marketing
Division of the Missouri Department of Agriculture on marketing
activities associated with the Producers Choice trademark.  The
commission's composition, duties, and member's terms are
specified.

The commission is to establish a fee structure for sellers of
Missouri agricultural products electing to use the Producers
Choice trademark.  All sellers having gross annual sales greater
than $2 million per fiscal year of Missouri agricultural
products are to remit a trademark fee of 0.5% of the aggregate
amount of all of the seller's wholesale sales of products
carrying the Producers Choice trademark.  All sellers having
gross annual sales less than or equal to $2 million per fiscal
year of Missouri agricultural products, after 3 years of selling
Missouri agricultural products carrying the Producers Choice
trademark are to remit a trademark fee of 0.5% of the aggregate
amount of all of the seller's wholesale sales of products
carrying the Producers Choice trademark.

The substitute allows the commission to create 2 additional
trademark labels to be associated with Missouri agricultural
products.  The trademark labels are for certified organic
products and certified family farm produced products.

The Marketing Division of the Missouri Department of Agriculture
is to create an Internet web site for the purpose of fostering
the marketing of Missouri agricultural products.  The web site
is to allow consumers to place orders for Missouri agricultural
products over the Internet and is to enable small companies
which process Missouri agricultural products to pool products
with other small companies.

The substitute makes farmers who have formed a group for the
purpose of selling products derived from their farming
activities at a common structure, when at least 50% of the cost
of such structure is paid by the group, eligible for tax credits
under the Neighborhood Assistance Act.

The Department of Agriculture is to develop standards and
labeling for organic farming.

The substitute enacts the Farmland Protection Act.  The purpose
of the act is to protect agricultural, horticultural, and
forestry land; promote continued economic viability; promote
quality of life; and protect farmlands from negative impacts.
The provisions of this act apply to tracts of real property
comprising 10 or more contiguous acres used as agricultural or
single family residential property or both and not located in a
platted subdivision.  The act requires the state or any
political subdivision to hold sewer and water assessments in
abeyance until improvements on property covered by the act are
connected to the sewer or water system.  Property subject to the
provisions of the act may not be taken by eminent domain unless,
in addition to approval by the county commission, a public
hearing is held on the proposed taking.

FISCAL NOTE:  Estimated Net Cost to the General Revenue Fund of
$287,214 in FY 2001, $1,554,898 in FY 2002, and $1,261,212 in FY
2003.  Estimated Net Effect to the Missouri Agricultural
Products Marketing Development Fund of $0 in FY 2001, FY 2002,
and FY 2003.

HCS HB 1762 -- MARKETING OF MISSOURI VALUE-ADDED AGRICULTURAL
PRODUCTS

SPONSOR:  Williams (159)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Agri--
Business by a vote of 17 to 0.

This substitute permits new generation cooperatives formed in
Missouri to participate in the Neighborhood Assistance Act.

Organizations which perform community service or economic
development activities are permitted to qualify as neighborhood
organizations under the act by contributing to the construction
of a building used to sell agricultural food products produced
in Missouri by members of a new generation cooperative.  Under
the act, business firms making contributions to neighborhood
organizations receive tax credits not to exceed $5 million per
fiscal year for fiscal years 2002 to 2006.

The substitute also allows the Commissioner of Administration to
provide a 5% bidding preference for agricultural food products
produced by new generation cooperatives.

The marketing program currently known as AgriMissouri is renamed
"Producer's Choice."

The Department of Agriculture, for the use of the Marketing
Division of the department, is to develop and implement rules
and regulations, by product category, for all value-added
agricultural products.

The substitute also creates the Value-Added Agricultural
Products Marketing Fund, for the use of the Marketing Division.
Subject to annual appropriation, $500,000 for fiscal years 2002
to 2006 is to be placed in the fund.  The department is to
develop a matching-fund reimbursement program to promote
advertising of value-added agricultural products.  The program
is to be administered by the Marketing Division of the
Department of Agriculture.

The Marketing Division is to create an Internet web site for the
purpose of fostering the marketing of value-added agricultural
products.  The web site is to allow consumers to place orders
for value-added agricultural products over the Internet and is
to enable small companies which process value-added agricultural
products to pool products with other small companies.

FISCAL NOTE:  Cost to General Revenue Fund of $0 in FY 2001,
$500,000 in FY 2002, and $500,000 in FY 2003.  Totals are
subject to appropriation.  Estimated Net Effect to the Value--
Added Agricultural Products Marketing Development Fund of $0 in
FY 2001, FY 2002, and FY 2003.

PROPONENTS:  Supporters say that the bill will aid in connecting
producers of value-added agricultural products with consumers
and establish quality standards for value-added agricultural
products.

Testifying for the bill were Representatives Williams (159),
Wiggins, and Leake; and Missouri Farm Bureau.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

HB 1762 -- Agricultural Marketing

Co-Sponsors:  Williams (159), Wiggins, Gaw, Hegeman, Legan,
Koller, Merideth, Leake, Britt

This bill permits new generation cooperatives formed in Missouri
to participate in the Neighborhood Assistance Act.

Organizations which perform community service or economic
development activities are permitted to qualify as neighborhood
organizations under the act by contributing to the construction
of a building used to sell agricultural food products produced
in Missouri by members of a new generation cooperative.  Under
the act, business firms making contributions to neighborhood
organizations receive tax credits.

The bill also allows the Commissioner of Administration to
provide a 10% bidding preference for agricultural food products
produced by new generation cooperatives.