CROPS: Chairman Stevenson, Representatives Bolz, Shirley, and
Naccarato.

LIVESTOCK: Chairman Lake, Representatives Langford and Jaquet.

GENERAL ADMINISTRATION: Chairman Trail, Representatives Field,
Rydalch, and Andersen.

Sub-committee Chairmen were asked to hold the meetings after the
regular committee meeting Thursday January 16.

The Department of Agriculture gave a brief summary of their upcoming
legislation.

Several new pieces of legislation will be introduced on Wednesday
January 22. The subcommittees will present their Rules Review
recommendations to the committee Monday January 20 if the
subcommittees complete their discussions.

Idaho is currently ranked 5^th among US wheat producers. Growers pay
$.015 per bushel that the Wheat Commission uses for market
development, research, information and education.

Seventy percent of Idaho wheat is exported and patterns have recently
changed in the world import and export markets. Several countries that
were importers are now exporting. Currently prices are high because
utilization is outpacing production and world wheat reserves are at a
twenty year low.

Idaho has 2 markets. North Idaho ships product to Portland then to Asia
and Mexico. Southern Idaho ships mainly to the western US and Mexico
markets. Southern Idaho is less competitive due to higher transportation
costs from Union Pacific Railroad.

The Market may be moving to more contract growing for specific varieties.
Idaho is one of the few places in the world where many classes of wheat
can be grown.

The budget projection for next year is $1,350,000 with projected spending
at $1,835,000. Spending is down 5% from last year and IWC will reduce
it’s reserves to make up the budget difference.

EXCUSED:

Mr. Weiss explained that the University of Idaho was established in 1865
as a land grant University with a mission of education for the masses.
Their current mission is to “support economic growth and enhance the
quality of life for the people of Idaho” through teaching, research and
extension services.

The CALS had a total reduction of $2.7 million for FY03. The future
planning is based on the assumption that 4-5 years will be needed for the
economy to recover. The CALS lost 109 positions (18% reduction) due to
budget reductions, resignations, and early retirement. They plan to fill 50
of these positions. They are reorganizing extension and teaching
programs. They have not had to fire any personnel, however, anymore
budget cuts will force cuts in people and positions. The budget cuts are
also making it difficult for the University to be competitive in keeping
research grants and hiring personnel.

Representative Shirley commended the College for their handling of the
holdbacks.

The complete presentation will be available in the “Legislative Library
Minutes Book”.

Representatives were concerned that 72 hours advanced notice and
receipt of approval from the department may not be possible while
animals are in transit.

EXCUSED:

Dwight Johnson, Executive Director for the Idaho Department of Labor,
gave the committee a presentation on the implementation of the Farm
Workers Minimum Wage. Implementation has been delayed in order to
conduct extensive outreach and training programs. Information is posted
on their web site and 200 mailings to farmers have been sent. Their goal
is to avoid claim problems through education. No one is currently
registered but the deadline for registration is April 1^st. In 2002 there were
33 wage complaints about workers not receiving minimum wage, 22 of
these complaints were valid. Information for the counties is available on
their website and is updated every 2 weeks.

Mel Anderson, Executive Director for the Idaho Potato Commission, gave
the financial report for 2002 and the 2003 proposed budget. The
commission collects 10¢/cwt, 60% comes from the grower and 40%
comes from the shipper/processor. The seed growers have a voluntary
agreement to contribute funding. Some of the expenses are difficult to
predict such as penalty collection and legal audits. The fund does have a
reserve to handle a crisis situation.

John Chatburn, ISDA Animal Industries Department Administrator,
explained that the purpose of this legislation is to add a new section to
allow the department to control private feeding of big game animals. This
will give the department authority, by rule, to designate areas where big
game feeding can be prohibited. This legislation is needed due to a
Brucellosis outbreak in cattle in Easter Idaho where infected wild elk were
feeding with cattle. The department is also concerned about controlling
any future outbreaks of other diseases such as CWD and TB.

The committee had some concerns on the word “purposely” and how the
department would hand those incidentally feeding wild game.

John Chatburn explained that the purpose of the legislation is to clarify
the “fur bearing animal” designation, add licensing requirements, and
designate where fur bearing animals can be held. This is needed to
control the import of species that may be detrimental to some areas and
native species.

Mike Cooper, ISDA Plant Industries Administrator, explained that the
purpose of this legislation is to require a plant health certificate for potato
seeds. This will give the grower more history and ensure that seeds from
other states meet or exceed Idaho standards.

Vice Chairman Trail turned the chair over to Representative Lake so he
could present this legislation. Representative Trail explained that the
purpose of this Joint Memorial is to change National policy to allow the
reintroduction of industrial hemp growing in Idaho as an alternative crop.
The fiber from hemp has many uses and is a $150M business in the US
from imports. The primary opposition is from law enforcement because of
it’s similarity to marijuana. Hemp has a very low level of THC and cross
pollination can actually decrease the quality of marijuana. Other countries
that grow hemp have not seen an increase in crime.

The committee was concerned that this legislation has not been
discussed with the Idaho Congressional delegation. Visually there is no
difference if the two products are grown side by side. This legislation has
not been well received by the Legislature in the past.

Senate Chairman Williams, Senators Schroeder, Goedde, Gannon,
Stennett, Kennedy

EXCUSED:

Senate Vice Chairman Noble, Senators Noh, Burtenshaw

Patti Gora told the committee that they have set up offices on the
ground in Rathdrum and the Reservation to monitor burn areas. Several
of the impacted areas do not have air quality monitors. Their organization
feels that there is an increase in emergency room visits, doctor visits and
serious injuries to certain individuals during the burn period. They believe
there have been several deaths attributed to the burning. People are
effected by the toxins as well as the particulates in the smoke. Particulate
levels have not exceeded EPA levels but the high concentration causes
irreparable damage to some individuals and the standards are
inadequate. Bonner County is a smoke target they believe, because of
the high percentage of low income families that can’t fight back. They
believe the burning practice also effects the tourist industry.

They believe that the smoke management efforts have failed and the
burn calls are unreliable. Growers can challenge the “no burn” call and
ISDA gets a lot of pressure to change the call.

SAFE is actively involved in litigation against individuals who had
burned Kentucky Bluegrass under the Federal Resource Conservation
and Recovery Act.

Safe has published “The 2002 Burn Season White Paper” and a copy
of this publication will be available in the House Agricultural Committee
Office.

He agrees that particulate matter is harmful, however the levels
established by the EPA in the Clean Air Act are an important
consideration to the courts and EPA. EPA has the authority to move on
any incident of immediate and substantial harm. If they are doing nothing
then they are not doing their duty. The standards have never been
violated in Northern Idaho and there are other sources that also contribute
to the particulate matter.

An increase in the number of burn days would help dilute the effects.
Burns that occur in September are slower clearing because of the
increased humidity and cooler temperatures. If the number of acres
burned could be spread out over more days the concentrations would be
lower.

SAFE had obtained an injunction to stop burning from a district court
judge. Blaise feels the ruling dismissed the standards set by the Clear Air
Act to protect the citizens. The Idaho Supreme court has reversed this
ruling. Idaho also has a right to farm statute that provides protection to
agriculture. The case will continue to a full hearing in the Idaho Supreme
Court.

A brief discussion followed and several points were clarified:

Ms. Gora

1. Solution is in research, there are some forward thinkers among
   growers
2. Yields are the same with shorter (4 year) rotations
3. An increase in the number of burn days is not an acceptable
   option
4. Splitting off monitoring from DEQ to ISDA was not a good idea as
   the two have different missions
5. More monitors are needed but they are very expensive
6. No improvement seen with new rules, there is nowhere to send
   the smoke that is not populated

Mr. Baise

1. EPA standards are evaluated on a continuing basis
2. Number of burn days needs to be expanded
3. Standards do not apply to the “eggshell” or sensitive population
4. Rotation is not working for the growers, yields decrease when the
   fields are not burned
5. There was no autopsy performed in the death that SAFE referred
   to as being due to smoke
6. There are often other factors that contribute to high particulate
   counts
7. The pending case can set a precedent for anyone to set a
   standard on a nuisance or trespass on their property

ADJOURN:

EXCUSED:

Representative Bolz moved to accept the minutes of January 30 as
printed. All Aye. Motion Carried.

The 2002 and the 2003 projected budgets were given to the committee.
The grant money listed in 2002 budget was for two years and will run out
in 2003 budget. The commission is focusing on teacher education
workshops and materials for the K-12 grades. Public relations are
focusing on NPR and a 10 second advertisement at the end of “Idaho
Outdoors” on Idaho Public TV. They have made a new video “Ranching
in Harmony with the Land” that depicts stories of diversity using three
different ranches in all four seasons. This video will air on Idaho Public
TV and is free to teachers upon request.

Laura Johnson, Marketing Bureau Chief for ISDA, presented this
legislation. The Department needs rule making authority to market
products. Some foreign governments need certification that products
meet their requirements. They also need authority to charge a fee for use
of Idaho trademarks. The emergency clause is needed because the
brand identity program will be ready this summer.

Russ Dapsauski, ISDA Program Manger for the Bonded Warehouse
Division, presented this legislation. The Seed Indemnity Fund law needs
to be amended to allow for one bond to cover both the Seed Indemnity
Fund and the Commodity Indemnity Fund. The minimum bond
requirement will also be removed. Certificates of deposit will now be
allowed. The double bond was creating a hardship and the minimum
bond requirement unfairly penalized small operations. The emergency
clause is need because buyer and warehouse licenses will be due
starting April 1and the bond runs concurrent to the license period.

Russ Dapsauski, ISDA Program Manger for the Bonded Warehouse
Division, presented this legislation. This amendment allows for one bond
to cover the Commodity Indemnity Fund and the Seed Indemnity Fund.
The minimum bond requirement will be removed.

Russ Dapsauski, ISDA Program Manger for the Bonded Warehouse
Division, presented this legislation. This amendment allows one bond to
cover Commodity Dealer law and the Seed Indemnity Fund law. The
minimum bond requirement will be removed.

Dwight Johnson, Executive Director for the Idaho Department of Labor,
presented this legislation. This legislation repeals the 1972 Agriculture
Labor Act. There has never been a request for action under this act and
the Agricultural Labor Board has not had a meeting since 1977. More
recent state and federal laws address agricultural labor concerns.

Dr. Bob Hillman, ISDA Administrator for Animal Industries Division,
presented this legislation. This legislation will authorize the department to
permit and regulate domestic cervidae and domestic cervidae ranches.

The department has had discussions with elk ranchers and the
Governor’s office about this legislation. They are requesting that this
legislation be introduced for printing but not brought forward for a hearing.
They want it printed to make easier access for a wider distribution through
the legislative website. They feel this will increase the discussion needed
between all concerned parties.

The Committee had concerns about the expense of printing vs holding
in committee. Representative Lake was concerned that constituents
would think that this bill will progress and how the public would know that
this will go no further. Chairman Jones assured the Committee that the
bill would go no further.

Representative Lake made a substitute motion to return RS12636 to the
sponsor. Motion failed by a show of hands.

Original motion passed by a voice vote. RS12636 will be introduced for
printing. Representative Lake requested to be recorded as a NO vote.

Dr. Bob Hillman, ISDA Administrator for Animal Industries Division,
presented this legislation. This legislation will give ISDA in conjunction
with the Fish & Game department authority by rule to prohibit the
importation of exotic animals. This legislation is in the best interest of the
public to protect the environment, native species, and control the spread
of disease.

Dr. Bob Hillman, ISDA Administrator for Animal Industries Division,
presented this legislation. This legislation will require 72 hours notice
prior to the diversion of livestock from outside the state. This is needed
so the department can have the people in place for inspection and
vaccination (if needed). The department feels this is necessary to help
with disease control, giving them time to find and stop movement and
spread of disease.

Representatives had concerns with the functionality of this legislation.
They felt it would be difficult to give notice and receive approval in 72
hours, especially during the weekends.

Dr. Bob Hillman, ISDA Administrator for Animal Industries Division,
presented this legislation. This legislation will update the language for
indemnity payments to an appraised value. Fair market value will be
determined by a team of appraisers.

EXCUSED:

Candi Fitch, Promotions Coordinator for the Apple and Cherry
Commission, gave these Commission budget reports. An early frost in
May reduced the apple crop to 75% of normal resulting in higher prices.
Crop assessment income was about the same as projected despite lower
yields. The commission keeps half of the years budget in a reserve
account. Promotions consist of an interactive website, pavilions at
several different events and working with the US Apple Commission.

The cherry crop was also effected by the early frost causing a decreased
yield for the entire Pacific Northwest resulting in higher prices. They will
maintain their membership in the NWCG promotion. The cherry yield is
expected to increase in the future because of young trees reaching
maturity.

The complete budget report for the Apple and Cherry Commissions are
available in the “Legislative Library Minutes Book”.

Jerry Nicolescu, Administrative Officer for the Soil Conservation
Commission, gave their annual budget report. The Soil Conservation
Commission is a non-regulatory agency that works in cooperation with the
Department of Agriculture. Some of the key programs this year are the
“OnePlan” and TMDL watershed planning & implementation. They work
very closely with DEQ on the TMDL project. Some of the money for their
loan programs comes from the DEQ State revolving clean water fund
which has about $6M available to SCC. The holdbacks and hiring freeze
resulted in the reduction of 2 field staff personnel. To offset this loss 50%
field time is now required of management. The complete Commission
report is available in the “Legislative Library Minutes Book”.

This legislation will update some old language, consolidate powers and
duties in one place, and standardize the format. Definitions have been
added and rewritten. This legislation was passed last year and vetoed by
the Governor. The Governor’s office has approved the changes.

Kent Foster, Executive Director of Idaho Association of Soil Conservation
Districts, testified that this legislation has the full support of his
association.

This bill was brought before the Committee by Chairman Jones to be
designated as “Held in Committee” as discussed for RS12636 in the
February 4, 2003 meeting.

EXCUSED:

Dr. Greg Nelson representing the Idaho Farm Bureau Federation
presented this legislation. The purpose of this legislation is to make it
clear that the law of trespass is not intended to extend to certain
agricultural activities. Field burning is an important tool and control is
managed by state agencies.

Dr. Greg Nelson representing the Idaho Farm Bureau Federation
presented this legislation. The purpose of this legislation is to eliminate
private lawsuits for injunctions or damages against farmers who engage in
crop residue burning in accordance with accepted common sense
practices and rules. The Idaho Departments of Agriculture and
Environmental Quality regulate these agricultural activities.

Representative Meyer presented this legislation. The purpose of this
legislation is to clarify that DEQ opacity standards should not apply to
agricultural field burning.

Richard Lawson, Bureau Chief for ISDA Plant Industries Division,
presented this legislation. This legislation will add a member of the Idaho
Seed Analysts Association to the State Seed Advisory Board. The Seed
Analysts Association voted unanimously to add this position.

Roger Batt, representing Idaho Eastern Oregon Seed Growers
Association consisting of about 70 seed companies, stated that his
organization supports this legislation.

EXCUSED:

John Orr, Commission Chairman, reported on the organization of the
Commission’s first year. There are 11 members on the board. Grant
money ($80,000 of the available $100,000) has been issued to the
commission from ISDA. The operating guide and research funding
proposal (RFP) forms are near completion. The Commission priorities
have been established. They expect to be ready to begin dispersing
funds by mid-April 2003. Mr. Orr’s complete presentation is available in
the “Legislative Library Minutes Book”.

Diana Caldwell, Idaho Bean Commission Administrator, presented their
annual report. Production increased 34% with yield increases of 5% over
2001. Beans are the 6^th most valuable crop in Idaho and Idaho is ranked
4^th in US bean production. The fluctuation in price is a concern to the
commission so they have applied for several grants from ISDA to lend
assistance in testing, and promotion. They have developed a new logo
and website. They plan to strengthen association with grower/dealer
groups in Mexico and Canada. The complete report is available in the
“Legislative Library Minutes Book”.

Mike Cooper, Acting Administrator for ISDA plant industries division,
presented this legislation. The purpose of this legislation is to require
that all potatoes offered for sale, sold or delivered under contract into or
within the state of Idaho for planting in the state be accompanied by a
“plant health certificate”. This certificate will show the seed generation
history for diseases and pests. This will ensure that incoming seeds meet
the same seed tolerance as Idaho standards. One generation from
growers own certified seed potatoes can be planted as part of a growers
own operation.

Ray Hess, Vice President of Potato Growers of Idaho, spoke in favor of
this legislation.

Keith Esplin, Executive Director of Potato Growers of Idaho, spoke in
favor of this legislation. The certificate will allow the commercial and seed
side to have a better idea of what they are growing.

Wendell Rich, Freemont County Farm Bureau President and seed grower,
stated that these standards will protect the market and is in the best
interest of the industry.

All Aye. Motion Carried. Representative Lake will be the floor sponsor.

Laura Johnson, ISDA Marketing Bureau Chief, presented this legislation.
This will give the department rule making authority to implement programs
and the ability to charge a fee for these programs. They have drafted an
amendment that changes lines 15&16 to insert the word “voluntary” in
response to a commodity commission’s concern. This program will help
many different commodities promote their products inside the state,
nationally, and internationally. Rules are needed to create the mark or
brand and govern their use. ISDA will incorporate the Department of
Commerce’s chosen color and font into their mark. The emergency
clause was added to give the department an extra two months to get
more industry input and get the program on the ground by October 1.

Mike Cooper, Acting Administrator for ISDA plant industries division, also
spoke on this legislation. A state wide rule is need for the production and
sale of greenhouse grown threatened species such as ginseng and
orchids.

Nathan Jones, President of the Idaho Organic Alliance, spoke in favor of
this legislation. This is a long overdue concept for the support of Idaho
agriculture. The program will be a benefit to the small growers. Labeling
is very important to the organic industry. They would use their label in
conjunction with the ISDA marks. Their labels are similar and they feel
they can reach an agreement on the differences.

Mel Anderson, Executive Director for the Idaho Potato Commission,
spoke against this legislation. The word “marketing” may effect their
ongoing litigation concerning their Idaho Seal. The IPC Board voted to
not support this bill in its present form for the following reasons:

1. Terms used “Marketing” and “Sale”. The ISDA can only promote or
   support the marketing of agricultural products by others.
2. “Voluntary” program change, proposed legislation allows for the
   development of a program with or without the approval of any particular
   individual or industry.
3. Fee language states only that they be reasonable.
4. ISDA marks may conflict or infringe upon existing brands or marks

The complete copy of IPC concerns will be available in the “Legislative
Library Minutes Book”.

1. Simon Farms
2. Harvest Classic Bakery
3. G & G Hay

Some concerns from the Committee on this legislation were:

1. The Department is a regulatory agency and this will be a voluntary
   program
2. The need for the emergency clause
3. How the program would work with other commodity commissions
4. Why rules would be needed to create and use the mark
5. How will the program tie in with the “Buy Idaho” program
6. Change the word “marketing” to “promotion”

ISDA responded to these concerns:

1. The program will facilitate all Idaho agriculture and could never take
   over the function of the commissions which are grower supported
2. The “Buy Idaho” program is supportive and they will work together
   closely
3. “reasonable fee” will be set only after industry input
4. The word “marketing” is already in the rules as duties of the Director

Pat Takasugi, Director for ISDA, asked the Committee to hold the bill for
time certain to clear up any misunderstandings.

Dr. Bob Hillman, Administrator for ISDA Animal Industries Division,
presented this legislation. The purpose of this legislation is to give ISDA
authority to control the feeding of big game animals in areas of the state
with disease control issues. This only applies to people who are
purposely feeding animals in these areas. The main concern now is
Brucellosis infection in Eastern Idaho but they need to have a mechanism
in place in case of outbreaks of a disease in other areas. Possible
outbreaks of TB and CWD are also a concern. Rules will be made in
cooperation with the Idaho Fish & Game Department.

Steve Huffaker, Director of the Idaho Fish and Game Department, spoke
in support of this legislation. This legislation may be needed in a time
critical sense and ISDA should have the authority to resolve any
outbreaks.

Monty Straley from the Wood River Valley has concerns about the bill and
personal property rights. If the words “big game” are ever taken out the
bill would say that wild animals can’t be fed.

Stand Boyd of the IWG and ICA stated that his association has big
enough concerns about disease control that they support this legislation.

The Committee had concerns with:

1. The possibility of interfering with personal property rights
2. Requiring of fenced areas
3. Applying the rule to the whole state when only one area is of concern

EXCUSED:

Kelly Olson from the Idaho Barley Commission gave the annual budget
report. They passed their biennial audit with no findings. The FY 03
budget is 6.1% above the actual FY 02 budget. Income for FY 03 is
expected to be up 6.3% because of increased production. Idaho prices
are above the national average for feed and malt barley. The new
Pesticide Management Commission is working with them to help
accelerate barley pesticide registration. The Commission will be using
more of their funds to support pesticide registration and barley variety
research previously done jointly with the University of Idaho College of
Agriculture. They are also working with Union Pacific Railroad to improve
rates and services. Rail rates for shipments to Mexico are currently
prohibitive. The complete budget and presentation are available in the
“Legislative Library Minutes Book”.

Dar Olberding representing the Idaho Grain Producers presented this
legislation. This legislation will limit the exposure on the commodity
indemnity fund by limiting the time the account is vulnerable. The time
limit for the contract is now 6 months. The contract can be re-signed if
more than 6 months is needed.

Letters and articles supporting this legislation will be available in the
“Legislative Library Minutes Book”.

1. “Hidden Liabilities” by Elizabeth Curry Williams
2. Grant 4-D Farms

1. Idaho Bankers Association

MOTION:

Russ Dapsauski, ISDA Program Manager for the Bonded Warehouse
Control Division, presented this legislation. This amendment to the Seed
Indemnity Fund Law was a 2 year effort with input from IEOSA, IGP,
ISDA, and the Governor’s Family Farm Task Force. This will eliminate
the unforseen burden of double bonding. One bond can be used to cover
the SIFL, BWL and CDL. A certificate of deposit will now be allowed in
lieu of a bond. The $25,000 minimum bond requirement was difficult for
the small seed buyers and has been removed.

Roger Batt representing IEOSA stated that his organization supports
H155.

Kevin Jones from Weiser Seed & Storage supports this legislation. He
has an elevator and seed business that was directly effected by the
double bond and the extra regulatory burden.

Russ Dapsauski, ISDA Program Manager for the Bonded Warehouse
Control Division, presented this legislation. One bond will now be
allowed to cover both the seed indemnity fund and the commodity
indemnity fund. This eliminates the double bond required by previous
legislation and removes the minimum bond requirement. The amount of
the bond will be based on 6% of the amount paid or owed to the producer.

Dennis Capson ,Snake River Grain (commodity dealer), spoke in
opposition to this legislation. The new calculation for indebtedness will
make it difficult for the small dealer to obtain a bond. The amount of the
bond is also based on the entire year’s indebtedness. He stated that new
federal warehouse regulations will cause warehouses to drop their state
license and no longer pay into the indemnity fund. Mr. Capson’s complete
testimony will be available in the “Legislative Library Minutes Book”.

Dar Olberding, representing the Idaho Grain Producers, supports this
legislation.

Kevin Jones, from Weiser Feed and Storage, supports this legislation.
The state licensing program is much cheaper than the federal program.
Basing the bond on the volume of business is a fair compromise.

Pat Takasugi, ISDA Director, updated the committee on the status of the
USDA Warehouse Merchandising rule. This program, expected to go into
effect February 17, is now on hold after Congress approved a six-month
moratorium. The complete news release from NASDA will be available in
the “Legislative Library Minutes Book”.

Representatives had the following concerns:

1. All three bills (H154,H155, H156) need to pass to remove the double
   bond requirement
2. The number of warehouse/dealer failures
3. Playing field level for all
4. Bonding requirements for one year and 30 day contracts

MOTION:

The bond rate calculation was reviewed and changed to make laws more
equitable between bonded warehouse and commodity dealers. The
minimum bond requirement was removed. Payment by a commodity
dealer does not have to occur within 30 days if other agreements have
been made by contract.

Dennis Capson, Snake River Grain (commodity dealer), spoke in
opposition to this legislation. The purpose of the bond was never meant to
cover a failure only to have another set of eyes on the industry. There
has only been one small failure and the indemnity fund did it’s job.

Mr. Dapsauski stated that there is a wide spectrum of commodity dealers
including out of state dealers, truckers, farmers, and brokers that need to
be regulated.

Representative Lake stated that the bond was never intended to cover a
loss only to check the personal integrity of the dealer.

EXCUSED:

Deanna Sessions, Administrator for the Commission, gave the annual
budget report. The dairy industry is Idaho’s number one agricultural
commodity and Idaho is ranked 5^th in US milk production. There is an
increased worldwide demand for US produced milk.

The independent audit for FY02 showed no findings. The commission
ended FY02 with a balance of over $1 million. The projected income and
expenses for FY03 are expected to be about the same as FY02,
approximately $9.4M.

The producers are assessed a total of 15.5¢/cwt (check off funds).
The national dairy producer program receives 15¢ and the remaining 0.5¢
goes to the Idaho Dairymen’s Association. The Idaho Dairy Products
Commission petitions for and receives 10¢ back from the national fund for
promotion, research and education programs.

The Commission is concerned with California cheese being slotted into
supermarkets and is withholding funds to protect Idaho’s cheese market.
Their new national promotion “3 servings a day for stronger bones” is
targeting the obesity crisis. Their complete presentation will be available
in the “Legislative Library Minutes Books”.

Senators and Representatives had the following questions:

• Commissions participation in the new proposed promotion program for
  Idaho products through ISDA
• The Commission will not be participating in the ISDA program

• Involvement in the Dairy Odor Issue
• The Commission needs to stay out of the dairy odor issue.
• Representative Jones asked the Commission, as a quasi state
  agency, to clarify their legal authority to lobby.
• Bob Naerebout stated that he believed that the ability to lobby was
  within the legal framework of the Idaho Dairymen’s Association but
  they need a legal opinion.

Steve Richards, a dairy farmer from Homedale, is dissatisfied with the use
of his check off funds. He feels they need to do more to promote the use
of milk in the US. Mr. Richards gave the committee a sample of UHT
(Ultra High Temperature Pasteurization) milk that is widely available in
other countries. This milk has a much longer expiration date and does
not require refrigeration.

EXCUSED:

David Ferguson from the Soil Conservation Commission reported to the
Committee on the newly formed Advisory Committee for Carbon
Sequestration. The committee consists of 16 members from several
industries and departments that were appointed by the Governor. The
purpose of the committee is to explore potential practices and land uses
which increase stored carbon, assess agricultural and private forest lands
for past and future carbon sequestration potential, develop a method for
measuring carbon storage and explore the potential markets (emission
offsets). Oregon currently has emission caps on CO₂ and new energy
must pay into the state forestry trust. Some of the ancillary benefits are
helping to improve water quality (meet TMDL objectives), improve air
quality, improve habitats for threatened or endangered species, and
enhance local and state economies. One of the methods that has a high
potential for reducing greenhouse gasses is ethanol production.
Regulation and tracking systems for purchasing emission offsets need to
be developed to ensure that credits are not sold more than once.

The following are some of the Advisory Committees recommendations;
maintain the advisory committee, enhance research relevant to Idaho,
further study of economic benefits, initiate a carbon market pilot program,
establish a baseline, and explore market potentials. The complete
presentation will be available in the “Legislative Library Minutes Book”.

Roger Batt, Executive Director for IEOSA, explained that the purpose of
this legislation is to remove the double bond for a company selling both
commodities and seeds. The bond amount has been changed and will be
a scale based on the amount of the annual sales.

This legislation is part of a package deal with the Commodity Dealer Law
(RS13092) and the Bonded Warehouse Law (RS13093). If one fails then
they all fail. The new legislation being introduced will replace H155 (Seed
Indemnity Fund Law), H156 (Bonded Warehouse Law), and H154
(Commodity Dealer Law) introduced earlier to the Committee. H154 was
held in committee due to concerns on how the bond was calculated and
the effect on small commodity dealers. The complete testimony will be
available in the “Legislative Library Minutes Book”.

Dar Olberding from Idaho Grain Producers explained that this legislation
has the same changes as the Seed Indemnity Fund for eliminating the
double bond and determining the bond amount.

Dar Olberding from Idaho Grain Producers explained that this legislation
has the same changes as the Seed Indemnity Fund for eliminating the
double bond and determining the bond amount. Everybody agrees that
the new bond amount scale is fair.

EXCUSED:

Michael Becerra, Manager for the Idaho Food Quality Institute, gave the
committee a status report for the laboratory. The lab is running better
than ever and is working in cooperation with ISDA, U of I, IPC and CSI.
Sara Braasch who has done an outstanding job to increase efficiency has
recently resigned as Board Chair. Representative Bolz is the new
Chairman and has given the institute great support. The institute has an
intern program with many of it’s graduates going on for further study or
careers in science and agriculture.

They received a one time $257,000 grant from the USDA specialty crop
fund which they have used to upgrade equipment. They expect to be
running in the black despite a 16% drop in income. They are working to
increase their client base which must be from government. They have
approached the commodity commissions but none of them have come
forth yet. They are currently only working with the Idaho Potato
Commission.

Representative Stevenson stated that the purpose of this legislation is to
require the Board of County Commissioners to have at least one public
hearing for people within a 1 mile radius of the proposed large CAFO
siting. The word “may” has been changed to “shall” in regard to requiring
a public meeting. The proposed amendment deletes the exclusion for
counties with processes currently in place.

Bill Chisholm, Buhl, ID, stated that he basically supports the concept of
this legislation but feels it does not go far enough. He feels that 6-7 miles
would be better. He would rather have a bill that addresses all the issues
rather than just pieces.

• Representative Jaquet has concerns with the 1 mile radius and the
  term “Primary Residence” for people eligible to testify.
• Representative Lake is concerned about the exponential effect on
  notification by increasing the1 mile radius- increasing the radius if
  necessary is an option for the board with this legislation.
• Representative Rydalch felt that the decision to increase the distance
  should be under local control.

Rich Carlson from the Idaho Rural Council proposed the following
changes to the legislation.

1. The word Permit should be inserted in the language for the hearing
   process.
2. The word “Large” should be stricken, all size CAFO’S should be
   considered.
3. Remove the loophole for counties with a process in place.
4. The one mile limit is arbitrary and will lead to lawsuits. Anyone with
   “standing” should be allowed to testify.
5. The measuring point for the one mile should be defined.

Kerry Ellen Elliot from IAC stated that the current distance for notification
in LLUPA (Local Land Use Planning Act) is 300 feet from the external
boundaries of the property.

Bob Narebout representing the Idaho Dairymen’s Association stated that
their organization is in favor of this legislation. He was also representing
Brent Olmstead from the Milk Producers of Idaho who are also in favor of
this legislation. The dairy industry feels it is crucial to the state economy.
They need to take in the concerns of their neighbors and provide a them a
voice.

Neil Colwell from Hammett in Elmore county stated that CAFO’s in the
King Hill area are not allowed within a 1.5 mile radius. The one mile limit
in this legislation would eliminate anyone in their area from testifying. He
supports the amendment proposed by Mr. Chisholm and Mr. Carlson.

Stan Boyd representing the Idaho Cattle Association and Wool Growers
stated that the Cattle Association has concerns with this legislation.
Changing “may” to “shall” will make it mandatory for a county to have a
plan in place and will give the county authority to approve or reject a site.

In closing Representative Stevenson stated that only the large CAFO’s
were addressed in this legislation to not make it onerous on the small
operators. The siting distance is intended for the people in the affected
area. The county commissioners need to make their own decisions with
one place for everyone to meet.

Agricultural Affairs: Chairman Jones, Vice Chairman Trail,
Representatives Field(23), Lake, Stevenson, Bolz, Langford, Rydalch,
Shirley, Jaquet, Andersen, Naccarato

Judiciary, Rules and Administration

Chairman Debbie Field and those members common to the other
committees.

EXCUSED:

H 217 inserts the phrase “public or private” into Section 52-108, Idaho
Code. The result of this would be that if an activity is authorized under
law, it cannot be considered a nuisance. H 226 amends trespass law to
exclude smoke and odor from being trespassers. Dr. Nelson said that it
would be dangerous to say that smoke could be a trespasser because
smoke from barbecues, ditch burning, or leaf burning could potentially be
considered trespassers as well. He said that the law was never intended
to include intangible objects as trespassers. H 227 adds a new section to
Idaho Code. It will eliminate private lawsuits against farmers who engage
in crop residue burning in accordance with accepted and common sense
practices and rules. Private citizens should not be punished for following
the law, Dr. Nelson said. The Idaho Farm Bureau maintains that the state
cannot afford to get rid of any more economy; farmers need to be
supported, not destroyed.

Bill Chisholm rose in opposition to H 217, H 226, and H 227. He said
that these bills stand against the purpose of government, which is to
protect the right of due process. He said that odor in Buhl is a huge issue
and that it is dangerous to exclude smoke or odor from being a trespasser.

Del Rust, Benewah County Farm Bureau, spoke in favor of all four bills.
He said that these bills will promote the common welfare and protect farms
and businesses.

Frank Priestly, Idaho Farm Bureau, spoke in favor of all four bills. He
said that farmers should be protected from lawsuits if they are only doing
what is allowable by law. He doesn’t think it is fair to have an entity in
another part of the state telling farmers when they can burn.

Lauren McLean, Idaho Conservation League, stood in opposition to all
four bills. She believes the bills will restrict citizens’ rights to protect their
property. She said that select polluters will be favored.

Mike Ricks, Idaho Grain Growers, stood in favor of all four bills. He said
that farmers should not be held liable for acting in accordance with law.
Production agriculture needs all the available tools to survive, and farmers
cannot afford to lose the tool of burning.

Kevin Beaton, attorney for Idaho Farm Bureau and Food Producers,
spoke to the legal issues of the bills. He does not believe that there are
any legal hurdles involved. These bills will simply codify existing laws.

Fred Riggers, Nezperce farmer, asked the committees to vote for all four
bills. He said that farmers need all the help they can get to get out from
underneath this pressure.

Ginny Gunn rose in opposition to H 217, H 226, and H 227. She said that
she was guaranteed the right of enjoyment when she bought her property,
but she has been unable to do that because of dairy odors. She said that
the Idaho Farm Bureau wants to take away the right to file suit.

Helen McCracken rose in opposition to all four bills. She stated that H
217 destroys victims’ rights of redress.

V.C. Prudek said he does not want the Idaho Farm Bureau to speak for
him. He does not want conflict and thinks both sides should unite
together.

Scott Burgstaller, Sandpoint physician, stood in opposition to all four
bills. He said that the issue is health, not a nuisance problem. He stated
that there have been fatalities caused by the smoke.

Patti Gora, SAFE director, stood in opposition to all four bills. She said
that there may be Constitutionality problems with H 217, H 226, and H
227. She said that there is plenty of economic harm on the other side of
the issue, including people losing their jobs because of illness or having to
flee from their homes. Permitting burning cannot remove the obligation to
operate responsibly.

Tony Park, a Boise Attorney representing the American Lung
Association, spoke in opposition to H217, H226, and H228. Field burning
has an adverse impact on individuals whose health is already impaired.

Ralph Sleyager from Sandpoint, ID spoke in opposition to H217, H226,
H227 and H228 because field smoke affects peoples lives.

Pat Takasugi, Director Of ISDA, stated that for the state and the health
of the state you have to look at the possible economic impact of this
legislation or a lack of legislation. There have been problems
implementing programs because of the litigation. The checks and
balances in the legislature are the best forum to resolve these problems,
not in the court. Preserving and protecting the environment is the right
thing to do but there are two environments; air, water, and soil is one and
the other is the business environment.

Bob Stoltz from Castle Ford, ID spoke in opposition to H217 and H226
stating that in the long run they would harm agriculture.

Phong Smith from Filer, ID spoke in opposition to H217 and H226 stating
that they take away the rights of citizens to protect themselves and to seek
remedy for nuisances thrust upon them.

Jim Dekleinhans a professional engineer from Twin Falls, ID spoke in
opposition to H217, H 226 and H227. He considers this legislation to be for
special interests and against the good of the general public. Operators
should be encouraged to eliminate odors.

Allen Hagelthorn, executive director for the Bonner County Board of
Realtors, spoke in opposition to all the proposed legislation. He stated
that they benefit a few and impact many. They believe the burning has
caused a $2M drop in tourist revenue in Sandpoint.

Ed Smith from Filer, ID spoke in opposition to all the proposed legislation
stating that they were an assault on his quality of life and they are for
special interest groups.

Roger Batt, representing IEOSA and the Idaho Mint Growers
Association, spoke in support of all the legislation. The mint industry
generates $14.5M in revenue and the seed industry $250M in annual
revenue to support Idaho.

Victoria Paulson, from the Idaho Medical Association, stated that
resolution of this issue will occur with the tools created by the legislature.

Keith Damon from Benewah County spoke in favor of all the proposed
legislation. He is one of 70 farmers that are currently being sued by
SAFE. In their mediation attempts SAFE has made it clear that there is no
settlement short of a complete ban. The “balance” plaintiffs are seeking
will bankrupt the farmers.

Kristy Reed Johnson from Post Falls, ID serves on the Kootenai County
air quality advisory board and spoke in regard to H227. The farmers
should not be sued as individuals if they are compliant with the smoke
management programs. The PM_2.5 concentration that is of concern to
health officials needs to take into consideration all open burning.

Bob Branson a farmer from Nezperce, ID spoke in support of H227 and
any legislation that protects a rural farm family from lawsuits.

Paul Damon and his son Timothy Damon from Benewah County
spoke in favor of H217, H226, H227, and H228. Timothy would like to be
able to become a fourth generation farmer. The environmentally beneficial
crop helps to maintain the clean water and air of the area. They are
currently involved in the lawsuit against bluegrass growers and they stand
to lose their farm. These bills are needed to clarify the intent of the “Right
to Farm Law”.

Phil Lampert a farmer in Benewah County, spoke in favor of H217,
H226, H227, and H228. He burns responsibly and has a good rapport
with his neighbors.

Lawrence Lampert spoke in favor of H217, H226, H227, and H228. The
added cost to producers by not burning is about $40/acre and shortens the
stand life and it’s yield potential. The burn ban in Washington left 90% of
the pollutants in Spokane County unscathed.

Jim Wenholf a farmer from Grangeville, ID spoke in favor of H217,
H226, H227, and H228. He described his current situation as “when urban
sprawl collides with agriculture”. He feels a Seattle law firm has been
hired out to set Idaho Policy. They now have to lobby for protection from
lawsuits after obeying every letter of the law.

Nathan Riggers a farmer in Nezperce, ID spoke in favor of H217, H226,
H227, and H228. There is a double standard for agriculture burning and
proscribed forest burning. Simplot is closing a local plant because of the
uncertainty in the grass seed industry.

David and Peter Lampert farmers from Worley, ID spoke in favor of
H217, H226, H227, and H228. They are involved in the lawsuit even
though they have followed every rule in the books and have never violated
any EPA standard. Continued insurance coverage is a concern if this
legislation is not passed.

Linda Clovis from the North Idaho Farmers Association spoke in favor
of H217, H226, H227, and H228. Farmers have been bombarded by
lawsuits and the nuisance and trespass lawsuits are just another way for
the opposition to try to end field burning. The PM_2.5 concentration has
been at it’s highest on the 4^th of July and during slash burning for the last
three years. The farmers have not violated any EPA guidelines or laws.

Kyle Holly a farmer from Moscow, ID spoke in favor of H217, H226,
H227, and H228.

Walt Meyer a farmer from the Rathdrum Prairie spoke in favor of H217,
H226, H227, and H228. The farmers are being litigated out of business
when no standards or rules have been broken. These lawsuits will affect
the US’s ability to compete in the world agriculture markets. The majority
of people in the area would like them to continue raising bluegrass
because of the environmental benefits.

Jeff Tee a farmer from North Idaho spoke in favor of H217, H226, H227,
and H228. The land is not suitable for other commodities. The industry
currently creates jobs, cash flow and tax revenue which will be lost.

Richard Morrison a farmer from Benewah County spoke in favor of
H217, H226, H227, and H228. He recently had his liability coverage
cancelled because he has been named in the lawsuit. He was only able to
obtain new insurance because he signed a no-burn clause.

Bill Dole a farmer from Kootenai County spoke in favor of H217, H226,
H227, and H228.

Dave Tellessen from Seeds Inc. spoke in favor of H217, H226, H227,
and H228. 80% of grass they process is grown in Idaho. Most of the
grass growers from Washington have left the business due to the burn
bans there. This legislation will protect Idaho farmers and jobs.

Davis Mosman a farmer from North Idaho spoke in favor of H217,
H226, H227, and H228.

Katie Simmons from Buhl, ID spoke in opposition to H217, H226, H227
and H228.

EXCUSED:

The Attorney General’s office submitted an opinion on H226 and H227 for
constitutionality and possible conflicts with other areas of the Idaho Code.
Chairman Jones pointed out several areas for consideration:

1. Page 1 Brief Answer #2: abolishment of cause of action “may be
   subject to challenge if abolishment works to the benefit of a select
   section of citizenry”
2. Page 3 bottom paragraph: “unlikely a court would view the limitation of
   the statutory trespass action as a taking”
3. Page 5 2^nd paragraph: H226 and H227 if enacted “would abolish only
   future causes of action, not preexisting causes of action”
4. Page 6 Special Privilege Legislation: Constitutionality issue raised by
   Article III, Section 19 of the Idaho Constitution “special privilege
   legislation”, “releasing or extinguishing, in a whole or in part, the
   indebtedness, liability or obligation of any person or corporation”
5. Page 7 : H226 & H227 likely to be considered unconstitutional due to
   the absence of “a well-prepared record showing why farmers deserve
   to be treated differently than any other persons”
6. Page 8: “lack of explicit enforcement authority may undercut
   arguments that the substitution of state regulation is a rational basis for
   abrogation of causes of action”

This legislation has been widely distributed in a draft form and has been
negotiated with DEQ, industry, and the Governor’s Office. This legislation
is needed to address the concerns of EPA regarding Idaho’s field burning
program.

Representative Trail was called to the Senate and Representative Field
assumed the chair.

This legislation will add a new section to the current code that creates a
penalty scheme for violations of unauthorized burning. For the first
unauthorized burning violation burning will be prohibited for one year. A
subsequent violation within three years will result in a civil penalty not to
exceed $10,000. DEQ will be required to investigate every complaint
(multiple complaints for the same violation will be investigated only once).
Protection for those who abide by the law has also been added. This
legislation focuses only on the applicable counties (Benewah and
Kootenai) and removes extraneous topics not related to smoke
management. The penalty section will help address EPA concerns.

Representatives had the following questions and concerns:

1. One year vs. seasonal burn ban for violators
2. Special interest legislation being considered unconstitutional
3. Requirements of the Reservation to comply
4. Possible fiscal impact to DEQ for complaint investigation
5. Conflict of authority for ISDA and DEQ
6. More time is needed for notification and discussion of new bill

Robert Wilkosz, Program Manager for DEQ, stated that the Coeur
Alene tribe has their own smoke management plan that is integrated with
the state plan. They would need to discuss this new legislation with them.

Brad Hoaglun representing the Food Producers of Idaho asked that the
bill be held in time certain so his organization could take a look at the
legislation.

EXCUSED:

Dr. Nelson from the IFBF asked that H226 be held in committee.

Dr. Nelson from the IFBF asked that H227 be held in committee.

Representative Jones asked that H364 be held in committee.

EXCUSED:

Vice Chairman Trail assumed the chair so Chairman Jones could present
the new legislation. This is compromise legislation that is the result of
negotiations with many groups(Governor’s Office, SAFE, & Growers
Organizations) over a long period of time. All previous legislation on
smoke management for this session has been held in committee except
H228 from the Environmental Affairs Committee.

This legislation expands the smoke management plan to include all 10
counties of North Idaho. The inclusion of the all North Idaho counties will
improve the constitutional position since North Idaho is so geographically
different from Southern Idaho. Penalties for violations have been added
and all operation and enforcement has been transferred to ISDA from
DEQ. A safe harbor provision has been added for farmers who obey the
laws and rules. The safe harbor only applies to the smoke management
code not all of agriculture. The use of money collected from field
registration fees has also been clarified.

During discussion Representatives had the following questions:

1. What constitutes a violation
2. Why the whole state isn’t included
3. Representative Jaquet is concerned about authority being transferred
   to ISDA and their ability to enforce.
4. Funding sources for monitoring and running the program

1. Constitutional issues

Chairman Jones resumed the chair.

Nick Lawson, a farmer from North Idaho and PERC (Panhandle
Environmental Resource Coalition), stated that this legislation is
desperately needed. They are in favor of the penalty section and feel this
is a good compromise.

Dr. Greg Nelson, from IFBF, stated that this is tough legislation but the
IFBF will fully support it.

Patti Gora, executive director for SAFE, stated that their organization feels
there are some good points to this legislation which include: increasing
the area to all of North Idaho, use of fee money for research alternatives,
and the penalty and complaint section. They would like the following
amendments to the legislation; eliminate the immunity provisions, and
consider phase out in more populated areas. SAFE does not support this
legislation and “remains committed to ending blue grass burning in North
Idaho”.

Rick Waitley, from the Nezperce Grass Growers Association, stated that
these rules would not be difficult for the majority of the growers to follow.
They accept the field registration fee and control by ISDA. Mr Waitley
also represents the Food Producers of Idaho and stated that the loss of
the previous legislation was not looked at favorably by this organization.
They have agreed to support H391.

Dar Olberding, from the Idaho Grain Producers, stated that this
organization has been involved in negotiations from the beginning. They
do not agree with everything but they support this legislation.

Fred Riggers, a grass grower from North Idaho, stated that the growing of
blue grass on the prairie has reduced the erosion problems and helps
clean the water. He supports this legislation.

Keith Damon, a Benewah County grass grower (also a member of PERC,
IGPA, & IFBF) submitted written testimony in response to an article in a
North Idaho publication comparing the growers to a speeding delivery
driver. He feels they have not violated the “speed limit” because they
have not exceeded the Federal Clean Air Act limits. Bluegrass plays an
important role in preserving the environment and the farmers want to be
good neighbors. He supports this legislation.

Michael Bogert, Governor Kempthorne’s attorney, stated that the
Governor appreciates the leadership and effort that has gone into this
legislation. There appears to be confusion surrounding the Governor’s
position on this matter. H243 passed in 1999 has nothing in it that
inhibits DEQ from enforcing th environmental health and welfare act. In
his state of the State address 2 years ago the Governor directed the
administration to find a solution to grass burning. They have made
numerous attempts to negotiate with both sides for a settlement but were
served with the $10 million lawsuit just prior to mediation this summer.
The Governor tried to personally talk with the plaintiff to help negotiate a
settlement. The plaintiffs attorney stated that this was improper contact
and any further contact needed to be through the attorney. Mr Bogert
asked the committee to determine from this information which party
refused to discuss settlement.

Lauren McLean from the Idaho Conservation League stated that they
support the following changes; creating of a new burn zone, requirement
that investigations take place following complaints, and the new penalty
provision. They oppose this legislation for the following reasons; DEQ
loses oversight, citizens rights to protect their families and property are
taken away, and public health and safety is at risk by stripping
responsibility from the polluters for damages.

Representative Trail supports the motion but has concerns with ISDA
manpower and the constitutional issues.

Representative Stevenson supports the motion because the safe harbor
provision is a way to bring people in that may not normally participate.

Representative Bolz supports the motion because this legislation is a
good compromise.