Agriculture, Forestry & Economic Development - Senate

In your packet. You look we we have an amendment to this bill. All it does Farrer Johnson date just adds co sponsors. Your body of government. Which players Committee. past second all in favor say aye. All right. Ready to present your bill is amended. Thank you chairman members this bill is a it's a protection of agricultural production lands and and all I mean as a matter of national security we need to be able to feed and clothe ourselves this this bill will help protect our agriculture production is a state and as a nation there's many states that have this protection in different ways I looked at our. Missouri and and Mississippi this is a Missouri Merrillville from Missouri. And in that defines agriculture production and I was asked by the forestry if it included forestry and and other definitions of agriculture it does not the this will not affect forest land so this is you know cattle row crop check in and and other things that help feed our world in our in our state and this will help protect protect our our. One major investment in the United States an asset is because the land that we have to feed ourselves I'd appreciate a good vote. Questions for senator Johnson. One question Sir John this fix ownership only if if yet foreign investors in the state the they could at least land rent land farming for a living is that correct they on on page four those who have that land now can is great are grandfathered in can could continue due to the possess that lamp if if they had have position now. This would be from here on you know what I mean if if someone were to come in leased land farm it to does this affect that at all if they can do that for a period of ten years at maximum okay if they want to do that that's the last paragraph on the last page I think that's a maximum but but they can come in and buy that agricultural land if they're going to develop into industry here are some other business besides production this this protects production with our land. Any other questions. Senator John so that's one make sure I do DO understand this total now if the. Someone from China comes over they can buy your form if they want to if they plan on making it into an industrial industrial park industrial facility or something that correct yes thank you. Anyone else. Later the committee. We'll just do pass. What you don't for Ferguson misli but we can't anyone here speak for the bill or speak against the bill. Okay I have do pass as second. As amended second all in favor say aye. All opposed. Remember your bill passes church of thank you members thank chairman. Replacement for you here. Looking at the house bill twelve seventy three. Yes Sir thank you Mr chairman committee members request permission to have Mr Arnold said with me to help answer questions yes. For both you all would please introduce yourself for the record and you'll be recognized store's mistake the state Representative district sixty three Batesville. Blair Arnold and partial Michael. Here is my code I know it was not senator thank you border Arnold member of the law firm of Brower free Thompson Arnold skater and Castleberry and bites will. Thanks B. twelve seventy three is an oil and gas owners lien act in the purpose of this bill is to protect the land owners royalty owners in the event that a well operator or owner should take bankruptcy or go into receivership. Without a creditors could take the moneys and gas all without having to pay the royalties it also has provisions that protect the creditor operator and third party purchaser this is similar to a bill that was introduced several years ago which protected farmers storing grain in an elevator that took bankruptcy and. Thus far this bill has had no opposition. Entertain any questions. Questions from committee. You want to start Senate bill. Can you give us a little more detail on this one the two of you you know we've got a an eleven page bill here that is all under lines with all new and we just had a short twenty five seconds the sermon on so we give a lot more detail in just that sure this bill originated from the Oklahoma act that passed which was called in that case the producers were selling to a company who is buying energy trying to sell it at a greater price the company back wrong on some speculative Page rewatch hedging and speculation went bankrupt. the producers in Oklahoma in this case it was working and Christian operator lost a hundred and twenty seven million dollars to secured creditors this bill in our state Oklahoma legislature did a great job it produces it protects not royalty owners when there's a world of a minority central west and south of Arkansas but it is actually productive protects the producers as well. And it per protection creditors they're grandfathered in and in fact but you can have security in the future but just not on the royalties when the money is paid to the royalty owners or the producers the lien expires but if they go into buying group without this. We certainly the royalty owners and the producers for that matter would be general unsecured creditors and would get nothing. And this is to in fact give them a lane so if a if a Someone who body whether it be the producer whether it be who the producer showed it to failed to pay into the bankruptcy of this would protect both producers and royalty owners and creditors for that matter actually the Oklahoma did a great job correcting this bill and more I scrutinized if more impressed I was with the. If any other questions or did I answer that sufficiently I think I went over your twenty five seconds. I want to follow up on that will make sure I'm I'm following on the if you say you had a eighty twenty rule. Roddy twenty split. At any point is that twenty percent who goes back to the royalty owners is that touch by the creditors. it can be affected if the let me let me back up tell you what the situation is now for a roll the owner to have a lien that would survive bankruptcy and be able to get their money and not be general unsecured creditor day in the producers operator would have to enter into signed a security agreement they have to do a financing statement they would have to file it with the Secretary of State and I would have to renew it I think it's over three years that's not being done. so if let's say it is in the case royalty owners if I operator to bankruptcy. That role of the owner would be a general unsecured creditor in the bankruptcy court and I don't know where the elevator bit involved in bankruptcy the creditor. But if you have you will know if your general unsecured creditor you're either going to get nothing or very little. by the same token in Oklahoma what happened these producers these operators were selling to a company called Seema. C. mobile goes bankrupt it covered producers United States but just in Oklahoma the producers lost a hundred twenty seven million dollars because the bankruptcy court in Delaware ruled that they were general unsecured creditors and date drive under an Oklahoma statute a trust to impose an implied trust in the bankruptcy judge said no in response to that the Oklahoma legislature passed an act that basically is identical to what Representative Smith is introduced to your. because I didn't want people to be burned that badly that thank you for our member right I've got a copy the bankruptcy court decision but I think the hundred twenty seven million spread out over a thousand operators working interest owners well that's a lot of people lose a lot of money which was unnecessary. Any other questions. Not seeing any I'll ask Is there anyone in the audience that wants to speak for the bill or speak against the bill. Not seeing any knowledge course pleasures Committee. After a do pass as their second. Second. Check back so all in favor say aye. All opposed. Congratulations bill passes. Really. Okay. Senate bill. We're doing here H. B. thirteen fifteen. If you would introducer for the record you're recognized. Senator Ricky Hill district twenty nine. You're recognized. Thank you Sir. Startin with the bill thirteen fifteen that we look at the other day and discussed it. Extensively. We're currently that whenever we pulled it back or ask about the the funding for this particular bill in the funding will come from appropriation through the FM ninety. for this bill. Any questions on that. That's from General Revenue correct yes. I think the question was also asked last. I think questions also asked what the fees are going to be charged the job getting that information will will refer to the Secretary ward. Let me conclude. Sorvillo I don't think you enter that question correct. The date when we should come general revenues going to checkerboard that this coming from D. F. A. budget budget budget budget there's not a surplus general revenue turned back on to the little clear only add to that that that is correct in technical terms it may be general revenue but is not if you perceive that it it's it's coming from a within the definite budget. We're going to. Yes Sir I was for from the Arkansas department of agriculture and so what I do. To to clarify the the fees portion and and how the program is paid for in or or anticipation it is a general revenue funded program however you know as as there is some language in in the bill about you're with an application for your inspection for you you're with their we are our view on that is that there were there would be a minimal fee associate nominal fee associated with that but it wouldn't be a the overall broader cost of the program would be general revenue funded at least your and really kind of our perspective to you and I hope I don't get to for or held off base here but at least for the first two years as a program assistant up and started so there there is there is a link to the process and we've been having several conversations with other states organ in particular who's going through the same process of starting up their respective program or twenty seven other states that have one it takes it takes a little older there is a timeline associated with getting a program set up and approved so you're what we hear from other states it takes about we we have to have a person to come in your legislature passes a law we bring someone in and to start working through the rule making process that that takes some time that comes back to a legislature for their approval from there after that happens that plan just submitted to USDA that state inspection plan gets submitted and that can take up to a year for US the USDA to approve that before we ever start of those and inspections so so our our plan really and and talking with partners is you we've got this two year period to get the program up and started and running and then about twenty twenty three session we've got a really good idea of here's here's what we need here's here's how we need to adjust this here's what we need to do different based off of what we've figured out over this two year period. I hope that if. Answer the question sure Sturch. Thank Mr two two ones one make sure I understand what's and then for the first two years we're mainly focusing on using what appropriation you get just mainly for the organization part of the program there they won't actually be inspections being done there won't be fees being collected this initial time so it's not I guess what I'm saying is not that we're going to start off nominal at three dollars you know ahead or whatever and then all of a sudden we have jumped up six dollars because we don't know how much it costs with this first two years we're just using at an appropriation to get started and then we'll know from the other states and from what our cost or what we need to charge to cover that back is that but but that's mostly correct yes Sir if you're if if we can get the process approved quickly enough you know there is the possibility that you're late next year we we we would be able to start doing inspections but it is it is a process and you know it and it isn't just a matter of we walked into a facility and start inspecting may have to apply they have to show that they've met all the standards and so even even that itself takes a little bit of time but to your point yes Sir that's that's that's the anticipation is that we would go through that process and and have all of that very clearly figured out over this between now the twenty twenty three session. Anyone else. Sure Sir but. You know what I like to program I like what we're trying to get to the the concern that I have there's always the cost. And I've I've I think I've made a fairly clear last couple weeks here but what I don't want to happen is on the ninety first General Assembly we're sitting here. And being asked for. Whatever the number is because we can't get out of we had a conversation last week we had one again today we can't get to a ballpark of what this. Annual cost us to the state. based on whatever some ginger used to come up with the program and that's what's concerning to me is the we. Okay can you can you look at it and and provide some type of. Annual cost after twenty twenty three. We we do have an and I've got some extra copies here of just some some brief notes of other state inspection for not all of them there's twenty seven states that have on but we and I would be happy to share this with with everyone our or afterwards just look at Missouri Oklahoma Mississippi origin and Kansas on their programs you know generally generally the overall costs for those programs is anywhere from two million to ten million and that depends on if you have a full fledged laboratory that depends on if you've got twenty inspected facilities or if you have fifty inspected facilities and you know how big the state is and how for the distances between there's a so there there's just a lot of factors that go into that or or or estimate would be you know just looking at several is situated states you know Mississippi's a two million dollar program fifty percent of that is cost shared with USDA so we we think even didn't fully operational Mississippi has fifty three for so as we don't know that we would have that many so or or gas would be somewhere around that total cost would be about two million. Fifty percent of that being covered by USDA so that puts it roughly million dollar a year prospect. To get more. Do you anticipate that the inspection fees will cover costs of the program we. Participation at this point it would be part of the rule making process we would have there's in there you are. And talking with partners we we believe that an inspection fee would be a a nominal applications out for you you know what we're not anticipating you know you're charged into a large dollar figure per header per pounder or anything like that. Correct Sir I guess no one correct yes Sir but at the same time would you again it would be a we. Current situation current current status we we think that fee would be nominal but would help offset administrative costs lap cost things like that but wouldn't fund the full scope of the program. So there is some offset. What we within with with the fees you plant a charger correct an application fee of thank you things that nature but it would be it would be fairly minimal. Any other questions from committee. If not to anyone in the audience wish to speak for or against the bill. Not financially ready to close your bill. Thank you sector ward. I think it's the needed bill for the state of Arkansas I think we've seen in the past our food supply chain has been broken not only during covert but also during the the the snow storm we had two weeks ago when you go into Walmart any other grocery store in all the meats going I think this is a way that will definitely help us look forward to working with the cattlemen with farm bureau and everyone else to to get this board and with that said Sir on closed. With with a motion to pass yes for that as a second level. All in favor say aye. All opposed congratulations. Okay. Right now house bill twelve ten. I have an amendment. motion doctor amendment. Everybody of copular. Second you're more. All in favor of documents say aye All opposed. Manifest you're recognized entry of. Thank you Sir. This is H. B. twelve PM looking forward to this bill this is as amended I think this might be the first time I know it is that I remember that. All of us in the at committee on the house side and the Senate side have signed known as as co sponsors of this bill that is greatly appreciated all this bill does. Enough making this bill up doing the amendment part of it is it combines what a culture. In another treatment into one. On board member. And that bill that board position will be filled by a farmer. And we are adding one more board member which will be a former as well and actually to be more specific this will be a soybean farmer that were looking at on that. In the industry side of it will be given to names to the governor from the industry a minimum of two to the governor which will be. Chosen by the governor and confirmed by the Senate. I'm open for questions. Question. To preclude. Thank you Mr just for the benefit of people who might be watching at home Senate this been one of the more closely tracked bill throughout the session house bill twelve ten the Amendment completely scraped everything that was in the bill originally replaces it with all new language that is correct thank you. You know the question. Anyone in the audience who wish to speak for the bill or speak against the bill. For example you're recognized. Motion do pass as amended second by a the issue more all in favor say aye All opposed. Congratulations bill questions thank you Miss. And with that to we don't have anything on the agenda at the four thirty and do not expect this to have a meeting Thursday we're Jr.