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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, December 7, 2009
House Hearing Room 1 -- 1:00 p.m.
Co-Chairman Jones called the meeting to order at 1:13 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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Steven Bales |
Ben Grumbles |
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Donald Butler |
Herb Guenther |
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Susan Chase |
Larry McDonald |
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Victor Smith |
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Senator Amanda Aguirre |
Representative Bill Konopnicki |
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Senator John Nelson |
Representative Lynne Pancrazi |
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Maria Baier |
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Co-Chairman Jones welcomed everyone and informed them that this is the third meeting of this Ad Hoc Committee: the first invited presentations from the agencies and the second from the stakeholders. The meeting today is to enable the agencies to respond to the suggestions and ideas presented earlier, and then to discuss the structure and funding needs of the Department of Agriculture and possible legislation.
Agencies’ Responses to Committee’s Previous Recommendations
Mr. Butler (Department of Agriculture) stated his wish that he had more recommendations but since all the agencies are starving for funds it is difficult to predict what can be done. His Department is currently working on its fee structures.
Co-Chairman Jones asked about the Department’s rent. Mr. Butler replied that the rent is ten percent of his total budget and will go up soon, but he cannot move until new tenants are found for the facility.
Mr. Grumbles (Arizona Department of Environmental Quality) stated that he is committed to “best management practices” and will collaborate with the Department of Agriculture on animal issues.
Co-Chairman Jones relayed that, in the Ad Hoc Committee on Mining meeting, there was a desire to ensure that fees are fair and are for the service, and that everyone pays their fair share. Mr. Grumbles concurred that agriculture is very much a stakeholder with regard to permitting processes.
Henry Darwin, Director of Water Quality, Arizona Department of Environmental Quality, stated that the Department is moving towards general permits.
Mr. Guenther (Arizona Department of Water Resources) stated that his Department is working on feedlot issues and the water allotted per head of cattle.
Co-Chairman Jones opined that the concerns heard from all the groups regarding Legislative funds sweeps will lead to activity in the next Legislative Session to grant the agriculture community more control of their funds. He added that the budget dilemmas will continue for several more years.
Co-Chairman Jones recessed the meeting at 1:30 p.m.
Co-Chairman Jones reconvened the meeting at 1:40 p.m. with the same Members present.
Discussion Concerning the Structure and Funding Needs of the Department of Agriculture
Co-Chairman Jones explained that the structure of the Department of Agriculture needs substantive change in order to incorporate a “fee for services” model. He stated that the current model is flawed and allows the funds sweeps and problems funding fees for services.
He added that this Ad Hoc Committee can continue to meet in 2010 to look at other models and to work on recommendations for the Department of Agriculture.
Mr. McDonald commented on the importance of building up reserves and spending those monies, adding that funds cannot be swept if they are being used.
Co-Chairman Jones stated that the seasonality of the industry necessitates that funds are utilized episodically, which must be built into the appropriations process.
Ms. Chase stated that, even in these hard times, the nursery group is in support of raising fees as long as they are not swept.
Mr. Guenther added that small agencies are in difficult straits trying to run with this reduced funding. He stated that a dedicated funding source is needed to ensure that the Legislature will not sweep the fees.
Mr. Smith asked if the Legislature can be persuaded to leave these funds alone.
Co-Chairman Pierce stated that he is totally against fund sweeps and that the Legislature needs leadership to avoid these and to initiate sound fiscal policies.
Co-Chairman Jones concurred, stating that due to lack of resources Arizona responsibilities are passed on to the Federal government.
Mr. Guenther stated that it might be time to send these issues to the voters in the form of a referendum or initiative.
Mr. McDonald asked if legislation is required to correct the funds sweeps. Co-Chairman Jones explained that changing a referendum decision can require a super majority of the Legislature.
Public Testimony
Robert Shuler, Western Growers Association, informed the Committee that, since FY 2008, $1.8 million has been swept from his agency by the Legislature and the Governor. He urged the Legislature to pass legislation to protect agencies, adding that Republican leadership will not raise taxes, but they will take agencies’ funds. He noted that the California Legislature allows funds to be kept at a bank outside the State Treasury, which prevents their being swept.
Bas Aja, Arizona Cattlemen's Association, submitted a recommendation (Attachment 1) for the Committee to consider. He stated that the State must be responsible as it collects and deploys these funds. Right now the agencies cannot respond to an animal or food emergency because the contingency funds to do that have been swept.
Co-Chairman Jones stated that is a very good point, citing an example in Yuma which recently had a citrus pest outbreak. He stated that the role that these agencies play in public safety is very important and the Legislature must fund these agencies adequately in order to protect the public.
Mr. Aja urged the Legislature to understand that these funds are held in trust.
Annamarie Knorr, Western Growers Association, stated that it might be wise to create a circumstance where the funds do not accumulate and are therefore not available to be swept by the Legislature. If there is a big budget cut in the Department of Agriculture, needed programs cannot be kept and members cannot get services.
Co-Chairman Jones asked if she had any recommendations for emergencies. Ms. Knorr replied that there are emergencies that are created by offices closing but that she is speaking of agriculture emergencies that just occur, such as pest and plant and food emergencies.
Mr. Shuler commented that if the industry knew that the funds were secure, it could plan for contingencies.
Discussion and Recommendations by the Committee
Mr. Smith commented that the answer is to halt the funds sweeps and to educate the Legislators on the issue.
Co-Chairman Jones stated that the Committee now has a great deal of information to review and he thinks it best to take time to collate all of it, then to meet one more time to formulate the Committee’s recommendations. He announced that the Committee will meet on Tuesday, January 5, 2010.
Without objection, the meeting adjourned at 2:39 p.m.
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Jane Dooley, Committee Secretary
December 17, 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
December 7, 2009
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