Assembly on Federal Issues

Representative Maxine Bell, Idaho

Representative Bob Bastian, Pennsylvania
Senator Richard Kneeland, Maine
Assemblywoman Barbara Matthews, California
Senator Larry Mumper, Ohio
Representative Phil Prelli, Connecticut
Representative Roger Thomas, Kentucky

MEETING SUMMARY

Wednesday, December 5, 2001

Nutrition, Agriculture, and Development: A Farm Bill Status Report (CLE)

At the time of this session, three versions of the bill were competing for attention: the House-passed version, the Senate Agriculture Committee original bill (the Harkin bill), and the Lugar bill. While the committees met, the Senate vote ordered the Harkin bill brought to the floor for debate the week of December 10^th. Jerry Hagstrom raced from the Senate to the session to report on the debate and to offer his views on the fate of the legislation. The committees reviewed the recommendations recently adopted by the Council of State Governments (CSG) Agriculture Policy Task Force on the Farm Bill and considered, in particular, the nutritional assistance.

• "The 2001 Farm Bill"
• "Side-by-Side Comparison of Food Stamp Provisions in Proposed Farm Bills" Prepared by the Center on Budget and Policy Priorities
• "State Government Recommendations on the 2002 Farm Bill" Council of State Governments
• "What a State Legislator Can Do to Increase Participation in the Summer Food Service Program (SFSP)
• "Food Stamp Program Participation Increases Again in August 2001" Food Research & Action Center Special Analysis
• "The Ranks of Low-Income Hungry Americans is Growing According to America's Second Harvest National Study" Hunger in America 2001
• State and Local Coalition on Immigration--Immigrant Policy Project
• "Building the New American Community" Project Summary
• "Immigrant Policy News..." Immigrant Policy Project
• "The Federal and State Nutritional Assistance to Immigrant Families in a Post-Welfare World" State and Local Coalition on Immigration
• State and Local Coalition on Immigration Background
• "A Guide to Starting the Summer Food Service Program in Your Community" U.S. Department of Agriculture
• "Food That's In When School Is Out" U.S. Department of Agriculture
• "Biographies for CLE Credit"

Implications of International Treaties: Are Your State Laws Safe from Challenge? (CLE)

Private parties may challenge state laws under international treaties if the laws place unreasonable burdens on international commerce. During this session, the potential impact of the North American Free Trade Agreement (NAFTA), particularly Chapter 11 of the treaty, on state environmental and agricultural laws was discussed. There was also much discussion on the role of state legislatures and NCSL in the negotiations within the World Trade Organization (WTO) and the Free Trade Agreement of the Americas (FTAA) since the barriers to international trade now being targeted reach beyond tariffs and duties at the border.

• "Balancing Democracy & Trade: Trade Agreements Affect State Law-Making Power" Harrison Institute for Public Law
• "NAFTA Threatens Core Governmental Functions"
• "NAFTA's Investment Chapter: A Pandora's Box of Property Rights?" Harrison Institute for Public Law
• "Federal Response Plan: Executive Overview" Federal Emergency Management Agency (FEMA)
• "Terrorism Preparedness and Response"
• "Takings: Property Owners Gaining Ground in Takings Cases, Groups Say" Greenwire 3 December 2001
• "Natural Resources Listserve Sign-Up"
• Law and Justice Committee Palazzolo v. Rhode Island
• "Religious Land Use--State and Federal Legislation" NCSL LegisBrief
• "The New Water Worry: Is it Safe?" NCSL

Speaker Marty Stephens, Chair of the AFI, led a brief discussion of proposals currently being debated by the NCSL Executive Committee regarding the reorganization of the Assembly on Federal Issues and the Assembly on State Issues. He then requested each AFI committee report on the policies slated for discussion during the December meeting. On behalf of the Agriculture and International Trade Committee, Representative Bell reported that the committee would take up the renewal of extant Beginning Farmers Program and the Payments in Lieu of Taxes (PILT) Program policies, both of which were due to expire at the Denver 2002 Annual Meeting. Speaker Stephens mentioned that legislation presently in Congress -- the Conservation and Reinvestment Act (CARA) -- contained a PILT provision and questioned how this would affect NCSL's policy. The Environment Committee reported that they anticipated a policy from one of its committee members on antibiotics in animal feed; Representative Bell made a motion that the policy be jointly considered by the Agriculture and International Trade Committee. There was also a motion for this policy to be considered by the Health Committee, but the Chair ruled policies should only be referred to two committees, though he encouraged the Health Committee to provide input.

Thursday, December 6, 2001

During this time, the Committee reviewed, discussed, and voted on two policy statements expiring as of the 2002 Annual Meeting in Denver: Beginner Farmer Programs and Payments in Lieu of Taxes (PILT) Program. At least 12 states were present for the discussion and votes. Representative Pope reviewed the basis for the Beginner Farmer Program policy and made a motion to amend the policy with some stronger language. Both Representative Pope's amendment and the policy were adopted by unanimous consent. The PILT policy was brought up for discussion and Representative Bell mentioned Speaker Stephens' query regarding CARA. The committee discussed and decided that the policy as written was adequate and would allow NCSL to support the PILT language in CARA. The policy was adopted by unanimous consent.

Following the Business Meeting, the Committee engaged in a roundtable discussion of the agriculture and trade issues in their states and other matters that may be surfacing in Washington of interest to the Committee. Ideas for the May and July meetings as well as possible policy resolutions were also discussed. Ideas included BSE, agri-terrorism (including food security, livestock safety, and laboratory preparedness), harmonization of registration and regulation of pesticides across international borders, FTAA, and use of antibiotics in animal feed.

• Beginner Farmer Programs Policy
• Payments in Lieu of Taxes Policy
• "Committee Jurisdiction and Policies" AFI Agriculture & International Trade Committee
• "Payments in Lieu of Taxes (PILT) Funding" National Association of Counties (NACo)
• "Why Trade Promotion Authority is Needed for Agriculture" American Farm Bureau Federation
• "H.R. 701 Conservation and Reinvestment Act" Bill Text
• "Bill Summary & Status H.R. 701"
• "Inferences Made for U.S. Rendering, Feed Industries" Feedstuffs
• "The Rendering Industry: Economic Impact of Future Feeding Regulations" Prepared for The National Renderers Association by Sparks Companies, Inc.

In the aftermath of September 11^th, Americans have become increasingly aware of a whole host of security concerns. The protection of domestic agriculture and American food supplies ranks among those concerns. During this session, the Committee discussed these critical homeland security issues with experts. Jonathan Ban made a presentation on the nature and sources of bioterrorism, noting that the United States has been dealing with this issue on a smaller, more isolated scale for at least a decade. Dr. Rhona Applebaum made a presentation reviewing how the food processors industry is responding to threat of bioterrorism for the protection of America's food supply. She noted that current food security concerns do not dramatically diverge from the industry's prior concerns for and safeguards against tampering by disgruntled employees or the like. Encouraged by NFPA, a broad coalition of producers, processors, regulators, and consumers are meeting regularly in Washington to stay current and prepared regarding food security; Dr. Applebaum invited NCSL to join the coalition. Finally, Dr. Henderson discussed how the U.S. Department of Agriculture, and in particular the Food Safety and Inspection Service (FSIS), was reorganizing in order to maximize preparedness against bioterrorist threats. She noted that FSIS was a member of the aforementioned coalition, lauded the coalition's efforts, and recommended that NCSL invite representatives from sister agencies within USDA, such as the Animal and Plant Health Inspection Service, to discuss their plans for addressing food security concerns.

• "The New Water Worry: Is it Safe?" NCSL

The security steps the country has taken since the September 11^th terrorist attacks and the role of state governments in this national effort was the focus of this session.

This session explored what types of industries are best suited for rural areas and how states can best promote business development by ensuring that adequate financial resources are available.

Ray Daffner discussed small business as a viable way of supporting small town Main Street as well as ways that the ARC and states can encourage entrepreneurship. Representative Thomas reviewed some of the programs that Kentucky has instituted to encourage rural development. Joe Dunn discussed the rural development title of the Farm Bill and some of the interesting tools that it may provide, such as credit options or broadband access, that could have significant implications for rural development.

• "Cultivating Prosperity in the Commonwealth: Kentucky's Long-Term Plan to Redesign Our Rural Economy" PowerPoint Presentation by Representative Roger Thomas, Kentucky
• "Exploring Policy Options for a New Rural America--A Conference Summary" Federal Reserve Bank of Kansas City
• "Looking to the States for New Rural Policies" The Main Street Economist Federal Reserve Bank of Kansas City
• "Farm Bill Rural Development Side-by-Side Analysis" Prepared by the National Association of Development Organizations
• "State Government Recommendations on the 2002 Farm Bill" Council of State Governments
• "Tools for Entrepreneurship" Appalachian Regional Commission
• "Entrepreneurship Initiative Approved Projects" Appalachian Regional Commission

Representative Bell reported that the Agriculture & International Trade Committee had unanimously adopted the two policies brought up during its business meeting. She also reported that the PILT policy as adopted would allow NCSL to support the PILT provision of CARA.

Friday, December 7, 2001

The AFI Agriculture and International Trade Committee Officers and a small group of committee members went to the Office of the U.S. Trade Representative to meet with Ambassador Allen Johnson, the USTR chief agriculture negotiator. During this private meeting, Ambassador Johnson discussed the Administration's three trade-related goals for the year, all of which he thought would soon be achieved: 1) get China into the WTO, 2) launch another round of WTO negotiations, and 3) secure trade promotion authority (TPA or "fast track"). In this context, Ambassador Johnson recognized market access, export subsidies, and community supports as three of the most significant elements to agricultural trade negotiations. Legislators posed a variety of questions: Representative Bob Bastian asked about technology exports; Representative Jones asked about trade in minor crops, many of which seem to be below the USTR's radar; and Representative Kropf asked about enforcement, monitoring, and equity. The delegation was very successful in raising NCSL's agricultural trade concerns with USTR as USTR continues WTO, FTAA, and other negotiations.

Special Briefings

Sponsor: National Legislative Services and Security Association Legislature

Legislatures will tackle many tough aspects of the recent terrorist events in the next legislative session including: protecting water, electricity and natural gas supplies and infrastructure; maintaining fire and police forces as National Guard and reservists are called up for duty; and defining the crimes related to terrorism and the appropriate penalties. This session examined these issues, explained how terrorists think about public buildings as targets, and clarified what federal actions may affect the states.

In an era of deregulation and competition, the existing telecommunications tax system is fast becoming unworkable and costly to administer for both state tax departments and telecommunications carriers. One area in which this is especially true is in determining which jurisdiction has authority to tax very mobile telecommunication services. This special briefing discussed the federal Mobile Telecommunications Sourcing Act and state proposals to establish uniform rules.

In 1996, the federal government adopted historic welfare reform legislation, including the creation of the TANF block grant with tremendous policymaking flexibility for the states. As Congress approaches reauthorization this year, what are the key issues? With new budget pressures, will TANF funds be cut? Could flexibility be lost? This session tried to answer many of these questions.

All policies reported by the AFI committees this meeting, including the Agriculture & International Trade Committee's Beginner Farmers Program and PILT Program policies, were unanimously adopted in committee and therefore appeared on the Consent Calendar, which was adopted without dissent by the full Assembly on Federal Issues. These policies may now be lobbied by NCSL staff but must be adopted again at the full Conference Business Meeting at the Annual Meeting in Denver before becoming official NCSL policies.

Since his appointment to lead the nation's health department, much as changed and new issues have emerged. Bioterrorism, stem cell research, and human cloning are just some of the issues Secretary Tommy Thompson has on his plate today. These are in addition to the more traditional issues of welfare reform, Medicaid, Medicare, foster care, and child care that his predecessors have dealt with in the past that he must continue to work on today. Secretary Thompson shared his thoughts on these health and human services issues that will be the key issues in the remainder of this year and in 2002.

The federal budget has moved from record surpluses to great uncertainty in a few months. How will states be affected by the federal budget outlook? Will there be a reemergence of unfunded mandates and other cost shifts? This session officially closed the joint AFI and ASI meeting and opens the fiscal chairs seminar.