LEGISLATIVE BULLETIN - January 24, 2003

Action has heated up as the Legislative Session moved into its third week.  At least a couple hundred more bills have been introduced and the resolutions are rolling in also.  Here is a recap on some of the more important bills your Association is following and what has happened recently.  CALLS TO ACTION ARE IN CAPS.

HB 1157 is the PSC bill regarding grain warehouses, grain buyers, and condo storage.  It is OK.  Heard on 1/17 and received a 13-0 DP (Do Pass) in the House Ag Committee. 

HB 1026, which would create a Transgenic Wheat Board, was heard in House Ag on 1/16.  The room was packed and the hearing went on for more than 90 minutes.  Grain Dealers, Wheat Commission and ND Ag Department suggested some changes in the bill.  We want more marketing people on it and some teeth in it to hold back GMO wheat seed until the market is ready.  There was much opposition to the bill, some from those who thought it went to far, some from those who thought it didn’t go far enough.  GMO proponents appear to want no oversight or control from state government.  Prospects for 1026 are questionable.   CONTACTS WITH HOUSE AG MEMBERS WOULD BE HELPFUL.

SB 2008 is the PSC’s budget, including the $250,000 to begin looking into a rail rate complaint.  The bill received favorable hearing on 1/20, with many positive comments and questions from Senate Appropriations Committee members. Speaking for the $250,000 were the PSC, Wheat Commission, Farmers Union, Grain Growers, Farm Bureau and Grain Dealers.  Those speaking against the bill included the Red River Valley & Western Railroad and Crete Grain, both saying the local rail assistance fund was not the proper place to get the money.  This view had been countered by proponents who said the quarter million dollars would rehabilitate only one or two miles of track, but a successful rate complaint could result in millions of dollars of savings annually for thousands of North Dakotans.  BNSF provided information attempting to show rate stability.  Committee members questioned the fairness issue of rates from North Dakota before and now.  Others had pointed out that the railroad had shifted significant costs to shippers and the public.  CONTINUING CONTACT WITH MEMBERS OF THE SENATE APPROPRIATIONS COMMITTEE NEEDED, ESPECIALLY SUBCOMMITTE SENATORS SCHOBINGER, CHRISTMANN, AND MATHERN IS NEEDED.

HB 1313 imposes a 3% excise tax on sales of special fuels sold for railroad purpose, with half going to the highway distribution fund and half going to the local rail assistance fund.  It was heard on 1/21 in the House Finance and Taxation Committee.  Railroads opposed the bill.  Mention was made that this could drive fuel business out of the state.  Grain Dealers was represented at the hearing, but did not speak for nor against the bill.

SB 2111 is OK.  It corrects contradictory language in state law about licensing of anhydrous facilities.  Heard in Senate IBL (Industry, Business and Labor) on 1/22.   SB 2113 concerns weighing and measuring of anhydrous.  Also heard in Senate IBL on 1/22.  It would phase out the use of percent gauges by 2013 and says that no new facilities built after 1/1/04 can use them.  PSC said these are not as accurate as scales and that 60% of the time the gauge favors the seller; 40% of the time the buyer.  PSC preparing amendments to make this one more understandable.

It is incredible that we would need a law relieving owners of anhydrous from civil liability to a thief, but that’s what these next three bills address.  HB 1194 gives farmers immunity from civil liability if someone gets hurt in the process of stealing their anhydrous.  Prime sponsor is Rep Bruce Eckre of Wahpeton; cosponsor is Rep Chet Pollert of Carrington.   HB 1222 is a better bill because it extends this immunity to any owners of anhydrous, including dealers.  Prime sponsor is Pollert,  cosponsor is Eckre.  A third bill, HB 1352, was introduced at the request of the Attorney General. This requires the Insurance Commissioner to develop rules that require locking devices on anhydrous tanks.  The bill also goes on to relieve liability IF the locking device requirements are followed. 

HB 1352 was heard in House Judiciary on 1/22.  Your Association testified against the requirement for locking devices because it appears ineffective. Thieves will cut the hose or drill through the tank itself, possibly creating even more of a hazard.  There was discussion about who holds the keys, dealer or farmer, that some locks might damage valves while the tank is moving on the road, and that a small leak through the valve could turn into a major danger while someone fumbled for or looked for the key.  Farm Bureau, Farmers Union, ND Ag Dept and ND Ag Ass’n also opposed.  NDGDA said it also resents the implication in 1352 that if the locks are NOT in place, there IS civil liability.  WE NEED CONTACTS WITH HOUSE JUDICIARY COMMITTEE MEMBERS OPPOSING HB 1352 AND ITS LOCK REQUIREMENTS.  Be prepared to say that we are no unconcerned about controlling meth, but that locks on tanks are likely not the answer.

NDGDA testified on 1/23 in House Ag in favor of HB 1194 and offered amendments.  In its original form the bill gave immunity from civil liability “If a person in the normal course of farming leaves an anhydrous ammonia tank unattended in a field”.  NDGDA amendments say “in the normal course of business” and eliminate the “in a field”.  

HB 1222 has been assigned to House Judiciary, no hearing scheduled.   RECAP:  Oppose 1352; support 1222; support 1194 with Grain Dealer amendments.

HB 1197 is the indemnity fund for credit sale contracts.  It was heard in House Ag on 1/23.  Grain Dealers is OK with this bill, but suggests that the $100,000 coverage cap be removed.   Farmers Union, Farm Bureau, Grain Growers, Ag Coalition all testified in favor.  No one testified opposed.   There will be some amendments. 

HB 1310 limits the assessed value of commercial elevators sold for private use to a sales price or an average sales price in the area.  Your Association testified at the hearing on 1/22 and offered amendments so that the bill applies to commercial sales also.   CONTACT WITH HOUSE FINANCE & TAXATION COMMITTEE MEMBERS NEEDED.

A new bill is being introduced at the ND Grain Dealers Association request that will provide some relief on rail lease costs, site sale prices, and the one-sited indemnity and insurance requirement clauses of railroad leases and track agreements.   Association legal counsel Brian Bjella spoke on this topic at the convention. 

HB 1314 will allow soil sampling to a depth of 24 inches, instead of the current 18 inches, without having the field flagged.  NDGDA testified in favor in the House Political Subdivisions Committee hearing on 1/24.  

HB 1372 will exempt grain warehouses from the 10-minute railroad-crossing limit when necessary to load or unload product.  Grain Dealers will support.

HB 1291 deals with the disposition of ABANDONED railroad right of way.

HB 1403 deals with the disposition of SURPLUS property along railroad right of way. 

HB 1429 would create a Forage Legumes and Grass Board that would take over from the State Seed Department the regulation of those products.  This appears to be an unnecessary new government agency, whose function is already being carried out.  GRAIN DEALERS OPPOSED.

HB 1456 would impose a $200 charge per car originating at a shuttle train facility that would be deposited in an account with the Public Service Commission.  The account would be used to reimburse grain warehouses that do not have shuttle train contracts.  The reimbursement would be prorated based on how many cars are shipped from those grain warehouses.

HB 1486 seeks to raise the Wheat Commission checkoff from the current one-cent per bushel (10 mills) to 1.5 cents per bushel (15 mills) with four mills split between “two trade associations that are incorporated in this state and which have as their primary purpose the representation of wheat producers.”  The Grain Growers Association and Durum Growers Association are pushing this proposal and are the intended beneficiaries of the extra levy.  The Wheat Commission itself is opposing the increase for reasons of likely producers resistance, use of funds and accountability.  By resolution adopted at the Grain Dealers convention, your Association concurs with the Wheat Commission position. 

House Concurrent Resolution 3018 is a study of the impact of high volume grain terminals on the highway system and how to litigate impact.  Hearing on 1/24 in House Transportation.  NDGDA SUPPORTS.   HCR 3021 would put the legislature on record as opposing the federal preemption of state grain buyer laws.  NDGDA SUPPORTS.

The bill for ANNUAL Legislative Sessions is back.  This year its number is SB 2294.  It proposes that the Legislature will meet in even-numbered years as well, for budget adjustment purposes or “subjects requiring immediate action of the Legislative Assembly.”  

SB 2304 gives grain producers a claim for relief against the patent holder of a transgenic crop for damages sustained through cross-pollination. 

CONVENTION ACTION:  Keith Brandt, Mike McNamee and Clyde Krebs were reelected to the positions of President, 1^st Vice President and 2^nd Vice President respectively.  New Board member is Roger Wagner of Hankinson, taking over the one year remaining on the term of Clark Holzwarth who resigned about a year ago.  Resolutions were adopted:  1)supporting a formal rail rate complaint to the Surface Transportation Board, 2)calling for legislation to correct problems and inequities with rail leases, site sale costs and one-sided provisions in rail leases, 3)supporting the credit sale indemnity fund, 4)opposing federal preemption of state grain buyer laws, and 5)concurring with Wheat Commission opposition to a checkoff increase.