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ARIZONA HOUSE OF REPRESENTATIVES
Forty-ninth Legislature – First Regular Session
AD HOC COMMITTEE ON AGRICULTURE REGULATIONS
Minutes of Interim Meeting
Monday, November 16, 2009
House Hearing Room 1 -- 3:00 p.m.
Co-Chairman Jones called the meeting to order at 3:14 p.m. and attendance was noted by the secretary.
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Senator Steve Pierce, Co-Chairman |
Representative Russell Jones, Co-Chairman |
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Senator Amanda Aguirre |
Representative Bill Konopnicki |
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Steven Bales |
Representative Lynne Pancrazi |
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Donald Butler |
Herb Guenther |
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Susan Chase |
Larry McDonald |
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Senator John Nelson |
Ben Grumbles |
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Maria Baier |
Victor Smith |
Co-Chairman Jones welcomed everyone and each of the Members gave a brief introduction.
Susan Chase, Desierto Verde Native Plant Salvage, who was scheduled to present at the last meeting as a representative of the industry, explained that her company also grows desert trees in-ground. She stated that, at the last meeting, Ed Mulrean represented the ornamental plant industry and the challenges it faces quite well. She added that times are difficult right now for wholesale ornamental plant growers and the landscape industry.
Co-Chairman Jones stated that the Committee has heard from the agencies and today would receive input from the stakeholders.
Presentations from Agricultural Stakeholders
Bas Aja, Arizona Cattlemen's Association, stated that the food animal industry is in difficult times which began about two years ago. He explained that cost of production and energy costs have risen dramatically, feed costs have gone up, and recently consumers have stopped spending and export markets have dried up. Ten percent of the dairies have declared bankruptcy or shut down and equity has left the beef industry.
Mr. Aja distributed an overview of the federal and state regulations which affect the industry (Attachment 1). He described state programs that deal with groundwater, air quality and waste. He discussed the general permit programs, stating his preference for those rather than for individual permits. He explained conservation and environmental protection programs that the industry employs. He urged the Members to provide more certainty in the regulatory environment.
Co-Chairman Jones asked about PM10, particulate matter 10 microns or smaller, resulting from agricultural activities such as dust. Mr. Aja replied that livestock and poultry are included in this measurement and research is ongoing to address this.
Representative Konopnicki asked if the two recommendations (on water conservation and use and on State Trust Land improvements) in Attachment 1 should lead to legislation. Mr. Aja replied that the improvements issue probably requires legislation, but not the conservation issue, which can be handled through the rules process in Arizona Department of Water Resources (ADWR). Representative Konopnicki urged Mr. Aja’s involvement in creating proposed legislation.
Joe Siggs, Arizona Farm Bureau, addressed the Committee (Attachment 2) stating that proposed new regulations must have a plan for success; he argued for proper funding of regulatory programs and various state agencies. He stated that agriculture can improve prospects if the Legislature fosters a culture that is business-friendly with an educated work force. He urged the Members to remember the phrase “do no harm” and to refuse to sweep Agriculture’s funds. He commented that the sales tax structure is a patchwork, with some inputs exempted and some not.
In the area of transportation, Mr. Siggs described battles with the Arizona Department of Public Safety (DPS) about the rural/urban interface and a reinterpretation of the driver’s license exemption. He opined that sometimes it seems that the goal of DPS is to rid the roads and highways of the implements and trucks of agriculture.
Co-Chairman Jones inquired about the impact in the central part of the state as well as Tucson when, after 2030, Central Arizona Project (CAP) water will not be provided for agriculture. Mr. Siggs replied that much of the dairy and agriculture production may shift to the reservations because of the water issue, but it is difficult to predict.
Senator Aguirre asked if the DPS incidents were frequent. Mr. Siggs replied that they are very frequent and that his Bureau often receives multiple calls on transportation issues, including trucks delayed for several hours or a driver who must go to court. He explained that these incidents disrupt the schedule and may compromise commodities that do not hold up well during delays.
Co-Chairman Pierce inquired about a guest worker program; he wondered if unemployment payments were cancelled, would those individuals then go pick lettuce. Mr. Siggs replied in the negative: they would not pick lettuce. He added that the industry needs visa reform in order to secure a legal and reliable labor force. Co-Chairman Jones commented that perhaps construction workers could shift to agriculture.
Mr. Bales asked about e-Verify. Mr. Siggs replied that the industry uses it in order to comply with state law, but that it has created a market for false documentation. Representative Konopnicki added that e-Verify has placed quite a burden on Arizona employers, forcing them to do what the federal government cannot do.
Chris Udall, Agri-Business Council of Arizona, informed the Members that his organization was formed in 1978 as a non-profit trade association to serve as Arizona’s reclamation representative to the National Water Resources Association (NWRA) (Attachment 3). A concern brought forward by his members is that of managing land that was once actively farmed, then purchased by developers, then returned to the original landowner under foreclosure. This land has had water rights extinguished and now lies fallow growing tumbleweeds which create traffic hazards and block canals and irrigation ditches. He discussed several other concerns, listed in Attachment 3. He urged the Members to consider changing chemical licensing (pesticides) to last two years.
Mr. Bales concurred that the tumbleweed problem is quite serious.
Shelly Tunis, Yuma Fresh Vegetable Association, explained that her association is a 62-year old organization of farmers and shippers in the Yuma area (Attachment 4). She provided background on the industry, explaining how assessment fees are paid into special funds for support of various services such as food safety or inspection. She urged the Members to return control of funds to those producers, adding that courts have said that it is not proper for funds paid to be swept by the Legislature. She added that some groups have control of their funds; others do not.
She discussed PM10 regulation in Yuma, informing the Members that a Best Management Practices program was instituted in 2005, which is different than in Maricopa and Pinal counties. She stressed the importance of recognizing the different conditions in different areas of the state.
Co-Chairman Jones asked about a general versus a specific permit with respect to the Yuma area. Ms. Tunis explained that the general permit process is not statutory but informal and has worked well.
Rick Lavis, Arizona Cotton Growers, discussed the thirty years of legislation that have served to protect agriculture from onerous laws and regulations while still serving public policy (Attachment 5). He discussed the creation of the Arizona Cotton Research and Protection Council in 1984, a state agency which has never asked for help from the General Fund. He provided examples of the actions of this Council, including eradicating the boll weevil and managing the whitefly.
Co-Chairman Jones inquired if there were any threats to the current water supply. Mr. Lavis replied that there is a water management problem, not a water problem.
Mr. Bales asked how many acres of cotton will be grown, now and in the coming year. Mr. Lavis replied that 140,000 acres are grown, which is down from 240,000 five years ago.
Anna Marie Knorr, Arizona Western Growers, provided a handout which showed how the proposed budget cuts will impact commerce (Attachment 6). She stated that the 15 percent reduction proposed by the Governor will have a huge negative impact. She described exporting regulations and about trapping and quarantining federally-regulated pests. The entire state could be shut down if these regulations are violated or these programs are not followed.
She urged the Legislature to stop the fund sweeps.
Ms. Knorr discussed a guest (commuter) worker program which would help to protect legal Arizona workers. She added that American workers do not want these jobs. She urged the Members to consider what the Legislature would do if the industry could not produce food.
Co-Chairman Jones stated the importance of educating public officials about these issues.
Representative Konopnicki stated his agreement with the sentiments about the fund sweeps, which should not happen. However, with the current Arizona deficit, he asked what kinds of things could be done and what cuts could be applied that would be the least detrimental to agriculture. Ms. Knorr replied that as long as food is not taxed, the industry is happy.
Co-Chairman Jones distributed a document about fund sweeps from Robert Shuler of Agriculture Crop Protection Materials who was unable to attend today (Attachment 7).
Co-Chairman Jones urged the Members to consider all of this input and to decide if the Department of Agriculture is properly structured statutorily to protect the public health, our food supply, and the industries that provide the food. He informed the Committee that the next meeting on December 7 will last for three hours and will present recommendations and the agencies’ responses to them.
Without objection, the meeting adjourned at 4:51 p.m.
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Jane Dooley, Committee Secretary
December 3, 2009
(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
November 16, 2009
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