Joint Committee Committee on Joint Agriculture and Natural Resources (01/18/2012)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT AGRICULTURE AND NATURAL RESOURCES

Date:	01/18/2012	ATTENDANCE

Time:	07:31 AM to 08:50 AM	Baumgardner	X
		Brophy	*
Place:	HCR 0107	Brown	X
		Carroll	X
This Meeting was called to order by		Coram	X
	Representative Sonnenberg	Fischer	*
		Giron	X
This Report was prepared by		Grantham	X
	David Beaujon	Harvey	*
		Jones	X
		Looper	X
		McKinley	X
		Ryden	X
		Scott	X
		Tochtrop	X
		Vaad	X
		Vigil	X
		Wilson	*
		Sonnenberg	X
		Schwartz	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Future Farmers of America Report from the State Auditor Department of Agriculture SMART Act Hearing		Briefing only Briefing only Briefing only

07:32 AM -- Future Farmers of America

Members of the Future Farmers of America's Executive Committee introduced themselves and invited the House Agriculture, Livestock, and Natural Resources Committee and the Senate Agriculture, Natural Resources, and Energy Committee to attend the Colorado Agriculture Hall of Fame banquet on February 23, 2012 in Denver.

07:38 AM -- Report from the State Auditor

Dianne Ray, State Auditor, explained that the SMART Government Act (Section 2-7-201, et seq., C.R.S) requires the State Auditor to report to committees of reference any audit recommendations that have not been implemented by a state agency. She explained that the Department of Agriculture and the Department of Natural Resources do not have any audit recommendations that have not been implemented. She also described the process for causing an audit of a state agency and identified recent audits of the Department of Agriculture.

07:43 AM -- Department of Agriculture SMART Act Hearing

Commissioner Salazar described the state of Colorado's agriculture economy. He explained that Colorado agricultural exports increase 20 percent in 2011. Agriculture supports nearly 170,000 jobs in the state and contributes more than $40 billion to state's economy. He estimated that net agricultural income for 2011 rose nearly $300 million to $1.66 billion. He estimated that 2012 will also be a good year for Colorado's agricultural economy due to new trade agreements, improved market access, and a weaker dollar that will help exports (Attachment A).

07:49 AM

Commissioner Salazar identified Department of Agriculture staff attending the meeting and the described the functions of the divisions within the Department of Agriculture including the Animal Industry Division; Brands Division; Colorado State Fair; Conservation Services; Inspection and Consumer Services; Markets Division; and the Plant Industry Division.

07:53 AM

Tom Lipetzky, Director of the Markets Division, responded to questions from the committee about opportunities to increase hop production in Colorado.

07:54 AM

Commissioner Salazar summarized the Department of Agriculture's FY 2012-13 budget request. He explained that that the department is requesting a budget of $39.1 million and 279.4 FTE for FY 2012-13, including $5.8 million in General Funds, $28.5 million in cash funds (primarily fees); and $3.9 million in federal funds. General Fund support for the department has decreased by approximately 50 percent since 2002. He also explained that the department is requesting to fully cash fund the Inspection and Consumer Services Division. The division has been cash funded for six of the last nine years, which saved approximately $2.7 million in General Fund appropriations in FY 2010-11 and FY 2011-12. With continued cash funding of the division, $1.3 million will be saved during FY 2012-13. Commissioner Salazar responded to questions from the committee about the effect of fully cash funding the division on the agriculture industry.

08:01 AM

Mr. Lipetzky responded to questions from the committee about use of the Agriculture Management Fund to promote agriculture.

08:05 AM

Steve Bornmann, Division of Inspection and Consumer Services, responded to questions from the committee about General Fund and cash fund support for programs within the division.

08:09 AM

Mr. Lipetzky summarized the provisions of the Department of Agriculture's FY 2012 strategic plan that includes a mission statement, vision statement, and strategic priorities (Attachment B). He also described the results of a survey of the agriculture industry to determine the level of satisfaction with the department's performance. Mr. Lipetzky responded to questions from the committee about tracking of complaints by the department and responses to complaints as part of the strategic plan. He also explained how the department seeks to promote fuel production from agricultural products.

08:24 AM

Commissioner Salazar responded to questions from the committee about federal incentives for renewable energy production including corn-based ethanol production, opportunities to increase fertilizer production in Colorado, efforts to expand exports of Colorado agriculture products, and efforts to address animal diseases and pests.

08:38 AM

Commissioner Salazar identified efforts to implement the FY 2012 Strategic Plan and responded to questions from the committee about legislation to reduce regulation of the agriculture industry including legislation to repeal oversight of rendering facilities.

08:40 AM

Mr. Lipetzky responded to questions about proposed legislation to continue the Advancing Colorado's Renewable Energy (ACRE) program that promotes renewable energy production by agriculture. He also described the survey of users of the department's services and efforts to identify services that received the highest level of dissatisfaction.

08:50 AM -- Public Testimony

There was no public testimony

08:50 AM

The committee adjourned.