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ARIZONA HOUSE OF REPRESENTATIVES
Forty-ninth Legislature – First Regular Session
AD HOC COMMITTEE ON
AGRICULTURAL REGULATIONS
Minutes of Interim Meeting
Friday, October 30, 2009
House Hearing Room 1 -- 10:00 a.m.
Co-Chairman Jones called the meeting to order at 10:19 a.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 |
Representative Lynne Pancrazi |
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Jack Peterson (for Donald Butler) |
Victor Smith |
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Herb Guenther |
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Larry McDonald |
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Senator Amanda Aguirre |
Representative Bill Konopnicki |
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Senator John Nelson |
Ben Grumbles |
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Maria Baier |
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Susan Chase |
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Introduction of Members and Opening Remarks
Co-Chairman Jones and each of the Members of the Committee gave brief introductions to the audience.
Co-Chairman Jones explained that the purpose of this Ad Hoc Committee is to deal with issues of regulatory reform which came to light in the recent Legislative Session, particularly in light of the current state of Arizona’s economy and the importance of the agricultural industry to the state. He described situations in which multiple agencies share statutory responsibilities and oversight of agricultural activities. He stressed the need to consolidate authorities in order to streamline processes.
He informed the Members that today’s meeting will be informational, and that subsequent meetings will be held for stakeholders (November 16, 2009) and to make recommendations for needed legislation (December 7, 2009).
Presentations by Agencies Involved in Agriculture Regulation
Patrick Cunningham, Deputy Director, Arizona Department of Environmental Quality (ADEQ), addressed the Committee to discuss two of the department’s most important programs: the agriculture best management practices (Ag BMPs) and the pesticide registration program. He added that these programs might fit the Committee’s consolidation goals.
Mr. Cunningham explained that the Ag BMPs are a very important part of ADEQ’s clean air program in Arizona and address PM10, which is particulate matter 10 microns or smaller resulting from agricultural activities such as tillage and harvest. The agriculture community regulates itself and must follow these court-approved BMPs.
He explained that the pesticides program was enacted in 1986; it has a registration program at the Agriculture Department and a groundwater protection program handled by ADEQ. These functions were split intentionally by the Legislature. These programs use science, not special interest, to drive activities.
Co-Chairman Jones asked how cap & trade would affect the Ag BMPs program. Mr. Cunningham replied that agriculture will be part of the solution because it functions as a carbon sink by pulling carbon out of the atmosphere and putting it to productive use. Agriculture will provide offsets that can be sold in the future.
Herb Guenther, Director, Arizona Department of Water Resources (ADWR), addressed the Committee to describe a rather limited interaction with agriculture contained in two programs: a base program and a BMP program. The base program is limitations set in the 1980 Groundwater Management Act which states that, in active management areas (AMAs), additional irrigation cannot be added. The BMP program started with ADWR stakeholders and is a practical approach to conserving water without sacrificing a farm’s productivity or long-term sustainability.
Mr. Guenther commented that the Governor has asked ADWR to reduce its annual budget by 15 percent, which will severely reduce staff positions.
Discussion ensued on opportunities to bring in revenue and general fund funding. Co-Chairman Jones stated that Arizona is looking for investments that can be made in home-grown industries such as mining and agriculture.
Mr. Guenther reminded the Members that the Colorado River is over-appropriated and that the seven states in the Compact are working collectively to find other water sources, including augmentation, weather modification, conservation, reuse, and desalination.
Mr. Smith added that agriculture uses 74 percent of Arizona’s water. Discussion ensued about the impact of Arizona’s need for urbanization on Yuma’s agriculture.
Ben Alteneder, Legislative Liaison, Arizona State Land Department, gave an overview (Attachment 1) of state trust land which was set aside in the mid-1800s to support education. In 1915 the Arizona State Land Code established the Land Department to manage these trust lands. Every county in the state has trust land and the beneficiaries are mostly kindergarten through grade 12 students. Trust Land can be secured by 10-year leases for agricultural use, but the land cannot be encumbered in any way. The Land Department holds the land in perpetual trust and is responsible for stewardship and conservation. The 379 agricultural leases are not regulatory in nature, but are intended to make money for the beneficiaries. There are over 1,200 grazing leases and 122 public land uses.
Discussion ensued on how fair market value is ascertained, which the Arizona Constitution has mandated must use an appraisal and appeal process. Also discussed were concerns from rural communities about getting projects such as right-of-ways through the State Land Department.
Jack Peterson, Associate Director, Arizona Department of Agriculture (AzDA), stated that Arizona is based on agriculture, which is a large economic engine in the state. He explained that the AzDA provides food safety, market access, homeland security, pest and disease exclusion for everyone, a safe environment, and consumer protection. He described the functions of the Department’s five Divisions (Attachment 2):
· Animal Services
· Plant Services
· Environmental Services
· State Agricultural Laboratory
· Agricultural Consultation and Training Program
Mr. Peterson explained that the Department has also been asked by the Governor to cut 15 percent of its budget and described how it would affect the agricultural industry:
· The Tucson office which issues export permits may be closed.
· Meat and poultry inspection programs may have to be given back to the federal government.
Mr. Peterson stated that, in 1991 when the Department was created, its budget was $9.8 million and this year it is $9.3 million.
Mr. Peterson stated that staff reductions could weaken the Department’s ability to fulfill its Homeland Security responsibilities with regard to bioterrorism, Arizona’s proximity to the border, and Arizona’s resources and preparedness. Discussion ensued about identifying more detail on a plan or process to follow in the event of an incident. There was discussion about consolidation of functions and responsibilities within the Department.
Presentation by Representatives of Agriculture Economic Sectors
Stephen Bales, representing Commodity Crop Production, explained that his family has been farming in Arizona for five generations (Attachment 3), that his industry embraces technology and provides a diversity of products. He described how the industry is at the mercy of the market and must absorb any new costs, how it cannot “name its own price.” He explained that the industry is either planting or harvesting a crop every month. He stressed that the industry does not need new regulations and that it has a history of solving its own problems.
Larry McDonald, representing Food Animal Production, described the cattle industry as Arizona’s leading agricultural product (Attachment 4). He explained that it requires intense management and is dependent upon its ability to produce. The industry does not want over-regulation which could damage its ability to produce food and to retain access to markets (Attachment 5). Some examples of over-regulation are in the general permitting area, access to markets, and the environmental laws which could affect the food animal industry (Attachment 6).
Victor Smith, representing Food Plant Production, stressed that the leafy greens industry needs labor, which has been greatly affected by the economy and by immigration reform, and water. He explained that market access for fruits and vegetables, pesticide regulation and food safety regulation are all extremely important. He stressed that the industry funds itself and manages itself in order to be able to move quickly; he cited the spinach problem from last year as an example of how effective and safe is the Arizona industry. He reminded the Members that the industry self-funds and it must be certain that the state cannot then sweep its funds. Regarding consolidation, Mr. Smith explained that there is overlap with federal legislation and no redundancies at the state level.
Ed Mulrean, representing Ornamental Plant Production, explained that this segment of the industry provides over 30,300 jobs and $710 million in wages. The aggregate green industry (wholesale and landscape) totals $1.7 billion (Attachment 7). He stated that important programs to the industry are compliance to pesticides, import and export programs, and certification programs. He described efforts to promote low-water-use plants and explained that agricultural production will continue in the West Valley as urbanization has stopped there for the last 10-15 years due to the down economy.
Co-Chairman Jones stated that the next meeting will be dedicated to input from the stakeholders.
Without objection, the meeting adjourned at 12:30 p.m.
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Jane Dooley, Committee Secretary
November 9, 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
October 30, 2009
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