House Bill 1234

AN ACT TO CREATE THE "MISSISSIPPI AGRICULTURE RECREATION PROMOTION ACT"; TO DEFINE CERTAIN TERMS; TO ESTABLISH A VOLUNTARY REGISTRATION PROCESS OF AGRICULTURE RECREATION PROGRAMS WITH THE MISSISSIPPI DEPARTMENT OF AGRICULTURE AND COMMERCE; TO REQUIRE ALL REGISTERED AGRICULTURE RECREATION OPERATORS TO POST AND MAINTAIN SIGNAGE CONTAINING CERTAIN WARNING NOTICE PROVISIONS; TO PROVIDE THAT ANY PARTICIPANT IS ASSUMING THE INHERENT RISKS OF A REGISTERED AGRICULTURE RECREATION ACTIVITY WHEN THE PARTICIPANT ENGAGES IN SUCH AGRICULTURE RECREATION ACTIVITY; TO ESTABLISH A TAX CREDIT TO OFFSET THE EXPENSE OF AGRICULTURE RECREATION LIABILITY INSURANCE PAID BY A REGISTERED AGRICULTURE RECREATION OPERATOR; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. This act may be cited as the "Mississippi Agriculture Recreation Promotion Act."

SECTION 2. The purpose of this act is to promote rural economic development by encouraging owners or operators of farms, ranches, and rural attractions, including historic, cultural, and natural attractions, to invite members of the public to view, observe and participate in such operations and attractions for recreational or entertainment purposes. This act shall be liberally construed to effectuate that purpose.

SECTION 3. As used in this act:

(a) "Agriculture recreation activity" means any fee based or nonfee based agriculture activity that allows members of the general public, for recreational, entertainment or educational purposes, to purchase farm products, to view or enjoy rural activities, including, but not limited to, farming activities, ranching activities, hunting, fishing, wildlife tourism, ecotourism, agritourism, agritainment activities, agricultural fairs, festivals or historic, cultural or natural attractions.

An activity may be an agriculture recreation activity whether or not the participant pays to participate in the activity.

(b) "Inherent risks of a registered agriculture recreation activity" means those dangers or conditions that are an integral part of such agriculture recreation activity including, but not limited to, certain hazards such as surface and subsurface conditions; natural conditions of land, vegetation, and waters; the behavior of wild or domestic animals; and ordinary dangers of structures or equipment ordinarily used in farming or ranching operations. "Inherent risks of a registered agriculture recreation activity" also includes the potential of a participant to act in a negligent manner that may contribute to injury to the participant or others, such as failing to follow instructions given by the registered agriculture recreation operator or failing to exercise reasonable caution while engaging in the registered agriculture recreation activity.

(d) "Registered agriculture registration activity" means any agriculture recreation activity registered with the Mississippi Department of Agriculture and Commerce under Section 4 of this act.

(e) "Registered agriculture recreation location" means a specific parcel of land that is registered with the Mississippi Department of Agriculture and Commerce under Section 4 of this act, and where a registered agriculture recreation operator engages in registered agriculture recreation activities.

(f) "Registered agriculture recreation operator" means any person who is engaged in the business of providing one or more agriculture recreation activities and is registered with the Department of Agriculture and Commerce under Section 4 of this act.

(g) "Department of Agriculture" means the Mississippi Department of Agriculture and Commerce.

SECTION 4. (1) Any person who is engaged in the business of providing one or more agriculture recreation activities may register with the Department of Agriculture. The registration shall contain all of the following:

(a) Information describing the agriculture recreation activity which the person conducts or intends to conduct.

(b) Information describing the location where the person conducts or intends to conduct the agriculture recreation activity.

(2) The Department of Agriculture shall maintain a list of all registered agriculture recreation operators, the registered agriculture recreation activities conducted by each operator and the registered agriculture recreation farm location where the operator conducts such activities. The list shall be made available to the public. The Department of Agriculture, in conjunction with other agriculture recreation and rural economic efforts of the Department of Agriculture, shall promote and publicize registered agriculture recreation operators, activities and locations to advance the purpose of this act by promoting and encouraging rural economic development.

(3) Registration under this section shall be for a period of five (5) years.

(4) No fee shall be charged to persons registering under this section.

SECTION 5. (1) At every registered agriculture recreation location, the registered agriculture recreation operator shall post and maintain signage that contains the warning notice specified in subsection (3) of this section. This section shall be deemed satisfied if such signage is placed in a clearly visible location at or near the registered agriculture recreation location. The warning notice specified in subsection (3) of this section shall appear on the sign in black letters, with each letter to be a minimum of one (1) inch in height.

(2) Every written contract entered into by a registered agriculture recreation operator shall contain in clearly readable print the warning notice and language specified in subsection (3) of this section.

(3) The signs described in subsection (1) of this section and the contracts described in subsection (2) shall contain the following warning notice:

"WARNING

Under Mississippi law, there is no liability for an injury or death of a participant in a registered agriculture recreation activity conducted at this registered agriculture recreation location if an injury or death results from the inherent risks of the agriculture recreation activity. Inherent risks of agriculture recreation activities include, but shall not be limited to, the potential of you as a participant to act in a negligent manner that may contribute to your injury or death and the potential of another participant to act in a negligent manner that may contribute to your injury or death. You are assuming the risk of participating in this registered agriculture recreation activity."

(4) Upon request, the registered agriculture recreation farm operator shall provide to any participant a written description of the registered agriculture recreation activity, as set forth in the registration under Section 4 of this act, for which this act limits the registered agriculture recreation operator's liability at the registered agriculture recreation location.

SECTION 6. Except as provided in Section 7 of this act, any participant is assuming the inherent risks of a registered agriculture recreation activity when the participant engages in such agriculture recreation activity. In any action for damages arising from the operation of a registered agriculture recreation activity, the registered agriculture recreation farm operator shall plead an affirmative defense of assumption of risk by the participant.

SECTION 7. Nothing in this act shall prevent or limit the liability of a registered agriculture recreation operator if:

(a) The registered agriculture recreation operator injures the participant by willful or wanton conduct; or

(b) The registered agriculture recreation operator has actual knowledge of a dangerous condition in the land, facilities or equipment used in the registered agriculture recreation activity or the dangerous propensity of a particular animal used in the activity and does not make such dangerous condition known to the participant and such dangerous condition causes the participant to sustain injuries.

SECTION 8. Any limitation on legal liability afforded to a registered agriculture recreation operator by this act shall be in addition to any other limitation of legal liability otherwise provided by law.

SECTION 9. (1) For taxable years commencing on and after December 31, 2005, December 31, 2006, December 31, 2007, December 31, 2008, and December 31, 2009, there shall be allowed as a credit against the income tax liability of a taxpayer an amount equal to twenty percent (20%) of the cost of liability insurance paid by a registered agriculture recreation operator who operates an agriculture recreation activity on July 1, 2006. No tax credit claimed under this subsection shall exceed Two Thousand Dollars ($2,000.00). If the amount of the tax credit exceeds the taxpayer's income tax liability for the taxable year, the amount thereof that exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of tax credit has been deducted from tax liability, except that no such tax credit shall be carried forward for deduction after the third taxable year succeeding the taxable year in which the tax credit is claimed.

(2) For the first five (5) taxable years beginning after a taxpayer opens such taxpayer's business, after July 1, 2006, there shall be allowed as a credit against the income tax liability of a taxpayer an amount equal to twenty percent (20%) of the cost of liability insurance paid by a registered agriculture recreation operator who starts an agriculture recreation activity after July 1, 2006. No tax credit claimed pursuant to this subsection shall exceed Two Thousand Dollars ($2,000.00). If the amount of the tax credit exceeds the taxpayer's income tax liability for the taxable year, the amount thereof that exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of tax credit has been deducted from tax liability, except that no such tax credit shall be carried forward for deduction after the third taxable year succeeding the taxable year in which the tax credit is claimed.

(3) The State Tax Commission shall adopt rules and regulations establishing criteria for determining those costs that qualify as costs of liability insurance for agriculture recreation activities of a registered agritourism operator.

(4) As used in this section, terms have the meanings provided by Section 3 of this act.

SECTION 10. The Mississippi Department of Agriculture and Commerce and the Mississippi Cooperative Extension Service shall work jointly to develop programs related to agriculture recreation farming activities in the state.

SECTION 11. Section 9 of this act shall take effect and be in force from and after January 1, 2007, and the remainder of this act shall take effect and be in force from and after July 1, 2007.