Ad Hoc Committee on Agriculture Regulations

Senator Amanda Aguirre Representative Bill Konopnicki

Senator John Nelson Larry McDonald

Opening Remarks

Co-Chairman Jones remarked on the amount of work done for the recommendations of the Second Revision for January 5 Ad Hoc Meeting (Attachment 1). The Committee will try to arrive at a consensus to adopt the recommendations and pass them on to the legislative process. He added that they will also set follow-up meetings if the Committee deems it necessary and will hold stakeholder meetings as early as next week to explore specific legislation and to open bills that come out of these meetings.

Public Testimony

Co-Chairman Jones announced that the public testimony will be for agency responses to the recommendations and revisions.

Discussion and Recommendations by the Ad Hoc Committee

Herb Guenther, Director, Department of Water Resources (Department), commented that some of these issues need to be clarified and asked if that would happen in the stakeholder meetings. Co-Chairman Jones confirmed that the issues would be clarified. General discussion continued on addressing specific issues in the stakeholder meetings.

Mr. Guenther commented on the recharge credits for farmers and irrigation. He inquired as to what kind of water would be used and the conditions of the credits given. He mentioned concerns about leasing back lands to farmers under the depressed economy and the use of brackish water. Co-Chairman Jones asked Mr. Guenther if he had objections to the water issue recommendations. Mr. Guenther responded that the Department had some concerns based on what the intent was by the individuals who proposed the recommendations.

Ben Grumbles, Arizona Department of Environmental Quality (ADEQ), concurred with Mr. Guenther, stating that the Department is looking for ways to increase water sustainability. He emphasized that it is important to understand the terms of use and transport. He is concerned with certain ADEQ pesticide regulations because of Arizona’s unique water conditions. Mr. Grumbles pointed out water availability for dust control, the Clean Air Act and water conservation. The key is to define what “reconcile” means to ADEQ. Co-Chairman Jones agreed with Mr. Grumbles and thanked him for his input.

Representative Pancrazi stated that most of her issues can be addressed in the stakeholder meetings

Victor Smith, Arizona Agriculture Industry, agreed with the discussion so far and pointed out that there was not much detail in these recommendations. His biggest concern is the legislative fund sweeps, which must be addressed in this Committee. There needs to be a dedicated fund source that is protected. Co-Chairman Jones agreed with Mr. Smith and added that a structure must be created to secure funds. Discussion ensued on dedicated fund sources.

Co-Chairman Jones continued with the recommendations outline (Attachment 1) and commented on the Personal Business Property Tax that is assessed against capital equipment. He opined that this is constitutional but that the assessment rate could be changed, not eliminated.

Steven Williams, on behalf of Commissioner Maria Baier, State Land Department, stated that in regards to the State Trust Lands issues they look forward to exploring the ‘valuing and compensating lessees for improvements’ in the stakeholder meetings. In regards to updating records improvement in the lease files, it may be a moot point because the Department allows lessees to update their records whenever they need to keep true and accurate records.

Co-Chairman Jones announced that another Ad Hoc committee will be scheduled as soon as possible in the next stakeholder meeting. He introduced the Arizona Department of Agriculture Recommendations to the Ad Hoc Committee on Agriculture Regulations draft, (Attachment 2) and asked if there are any comments. He asked if there are any objections to incorporating the draft into the Agriculture Recommendations.

Mr. Guenther moved that the Committee adopt the amended recommendations. The motion carried.

Co-Chairman Jones thanked the Committee Members and the staff for all their hard work.

Without objection the meeting adjourned at 11:02 a.m.

____________________________

Sarah Griffith, Committee Secretary

January 22, 2010

(Original Minutes, attachments and audio on file in the Office of the Chief Clerk; video archives available at http://www.azleg.gov)

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AD HOC COMMITTEE ON

AGRICULTURE REGULATIONS

January 5, 2010

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Senator Steve Pierce, Co-Chair	Representative Russell Jones, Co-Chair
Steven Williams on behalf of Maria Baier	Representative Lynne Pancrazi
Steven Bales	Ben Grumbles

AD HOC COMMITTEE ON AGRICULTURE REGULATIONS

Members Present

Members Absent