ARIZONA STATE SENATE
RESEARCH STAFF
MEGAN GNAGY
TO: JOINT LEGISLATIVE AUDIT COMMITTEE LEGISLATIVE RESEARCH ANALYST
NATURAL RESOURCES &
RURAL AFFAIRSCOMMITTEE DATE: November 28,2007 Telephone: ( 602) 926- 3 171
Facsimile: ( 602) 926- 3833
SUBJECT: Sunset Review of the Arizona Beef Council
Attached is the final report of the sunset review of the Arizona Beef Council, which was
conducted by the Senate Natural Resources and Rural Affairs and House of Representatives Water and
Agriculture Committee of Reference on November 8,2007.
This report has been distributed to the following individuals and agencies:
Governor of the State of Arizona
The Honorable Janet Napolitano
President of the Senate
Senator Tim Bee
Senate Members
Senator Chuck Gray, Cochair
Senator Amanda Aguirre
Senator Marsha Arzberger
Senator Robert Blendu
Senator Karen Johnson
Arizona Beef Council
Arizona State Library, Archives & Public Records
Auditor General
Senate Majority Staff
Senate Research Staff
Senate Democratic Staff
Senate Resource Center
Speaker of the House of Representatives
Representative James Weiers
House Members
Representative Lucy Mason, Cochair
Representative Jack Brown
Representative Jennifer Burns
Representative John Kavanagh
Representative Lynne Pancrazi
House Majority Staff
House Research Staff
House Democratic Staff
Chief Clerk
MG/ j as
Attachment
COMMITTEE OF REFERENCE REPORT
ARIZONA BEEF COUNCIL
Background
Pursuant to section 41- 2953, Arizona Revised Statutes, the Joint Legislative Audit
Committee ( JLAC) assigned the sunset review of the Arizona Beef Council to the Senate Natural
Resources and Rural Affairs and House of Representatives Water and Agriculture Committee of
Reference.
The Beef Council was established by the Legislature in 1970. It is made up of nine
members, consisting of three producers of range cattle, three cattle feeders and three dairymen,
all appointed by the Governor. The mission of the Beef Council is to " establish a self- financed
program to help develop and maintain state, national, and foreign markets for beef and beef
products." The Beef Council is funded through a $ 1 assessment on each head of cattle sold in
Arizona, and that assessment is collected at the same time that the Arizona Department of
Agriculture ( ADA) collects brand inspection fees. The ADA retains five percent of each
assessment for purposes of an administration fee for collecting the funds.
In 1985, when the federal Beef Promotion and Research Act and the Beef Promotion and
Research Order were passed, the Cattlemen's Beef Promotion and Research Board ( CBB) was
established as a national beef promotion council and each state was required to establish an
assessment on the sale of cattle. At that time the Arizona Beef Council became a certified state
council, which means that a portion of the money collected in Arizona is distributed to the CBB
for national programs. From every dollar collected, $ 0.50 is distributed to the CBB, $ 0.05 is
retained by the ADA for collecting the assessments and $ 0.45 is directed to the Arizona Beef
Council. According to the Beef Council, the assessments collected equal approximately
$ 700,000 per year in total, which provides the Council with approximately $ 350,000 to develop
and conduct beef promotion and research programs in Arizona.
In addition to the statutory requirements outlined in A. R. S. 5 3- 1233 that the Beef Council
meet at least every three months, receive and disburse funds and prepare an annual report, the
Beef Council is additionally authorized to do the following:
Conduct or contract for scientific research to discover and develop improved marketing
methods for beef and beef products, including programs of consumer education and
protection.
Disseminate reliable information, founded upon research; showing uses or probable uses of
beef and beef products.
Study state and federal legislation with respect to tariffs, duties, trade agreements, import
quotas and other matters concerning the beef industry.
Sue and be sued as a Council.
Enter into contracts.
Appoint advisory groups.
Make grants to research agencies.
Appoint officers and employees of the Council.
Cooperate with any state, local or nationwide organization or governmental entity to carry
out joint programs.
Adopt rules and regulations and adopt, rescind, modify or amend all proper regulations,
orders and resolutions for the exercise of its powers and duties.
Committee of Reference Sunset Review Procedures
The Committee of Reference held a public hearing on November 8, 2007, to review the
Arizona Beef Council's response to the sunset factors as required by A. R. S. 41- 2954,
subsection D and F ( See Attachment 2) and to receive public testimony ( See Attachment 4).
Testimony was received from Bas Aja, Executive Director of the Arizona Beef Council.
Committee of Reference Recommendation
The Committee of Reference recommended that the Arizona Beef Council be continued for
ten years.
Attachments
1. Letter from Senator Chuck Gray to the Arizona Beef Council requesting information.
2. Sunset factors pursuant to A. R. S. 41- 2954, subsection D and F.
3. Meeting Notice.
4. Minutes of the Committee of Reference Meeting.
SENATOR CHUCK G!? AY
1700 WEST WASHINGTON, SUITE S
PHOENIX. ARIZONA 85007- 2844
CAPITOL PHONE. ! 602) 926- 5268
CAPITOL FAX. ( 602) 417- 3161
TOLL FREE 1- 800- 352- 6404
cgray@ azleg. gov
COMMITTEES.
JVDICl. 4RY. CH4! RMAN
NATURAL RESOURCES AND
KdiiAL AFFAIRS. VICE ChA! RMAN
Dueiic SAFETY AND ~ u ~ 3 . 4 ~
SERVICES
LEGISWT\ VE COUNCIL
DISTRICT 19 - MESA
August 8,2007
Arizona Beef Council
Basilio Aja, Executive Director
1401 N. 24''' St., Ste. 4
Phoenix, Arizona 85008
Dear Director Aja:
The sunset review process prescribed in Title 41, Chapter 27, Arizona Revised Statutes, provides a system
for the Legislature to evaluate the need to continue the existence of state agencies. Durins the sunset
review process, an agency is reviewed by a legislative committee of reference. On completion of the
sunset review, the committee of reference recommends to continue, revise, consolidate, or terminate the
agency.
The Joint Legislative Audit Committee ( JLAC) has assigned the sunset review of the Arizona Beef
Councxl to the committee of reference comprised of members of the Senate Natural Resources and Rural
Affairs Committee and the House of Representatives Water and Agriculture Committee.
Pursuant to A. R. S. 941- 2954, the committee of reference is required to consider certain faciors : n
deciding whether to recommend continuance, modification or termination of an agency. Please pro\, ide
your response to those factors as provided below:
1. The objective and purpose in establishing the agency
2. The effectiveness with which the agency has met its objective and purpose and the efficiency with
which it has operated.
3. The extent to which the agency has operated within the public interest
4. The extent to which rules adopted by the agency are consisrent with the legislative mandate
5. The extent to which the agency has encouraged input from the public before adopting its rules and the
extent to which it has informed the public as to its actions and their expected impact on the public.
6. The extent to which the agency has been able to investigate and resolve complaints that are within its
jurisdiction.
7. The extent to which the Attorney General or any other applicable agency of state government has the
authoriq to prosecute actions under the enabling legislation.
8. The extent to which agencies have addressed deficiencies in their enablins statutes which prevent
them from fulfilling their statutory mandate.
9. The extent to which changes are necessary in the laws of the agency to adequately co~ nply with the
factors iisted in this subsection.
10. The extent to which the termination of the agency would significantly hann the public health, safe?.
or welfare.
1 1. The extent to which the level of regulation exercised by the agency is appropriate and whether less or
more stringent levels of regulation would be appropriate.
13. The extent to which the agency has used private contractors in the performance of its duties and 110-\;\ I
effective use of private coiltractors could be accomplished.
Additionally, please provide written responses to the following:
1. An identification of the problem or the needs that the agency is intended to address.
2. ' 4 statement, to the extent practicable, in quantitative and qualitative terms, of the objectives of such
agency and its anticipated accomplishments.
3. An identification of any other agencies having similar, conflicting or duplicate objectives, and an
explanation of the manner in w- hich the agency avoids duplication or conflict with other such
agencies.
4. An assessment of the consequences of eliminating the agency or of consolidating it with another
agency.
111 addition to responding to the factors in A. R. S. $ 41- 2954: please provide the committee of reference
with copies of minutes from your meetings for the current fiscal year and your most recent annual report.
Your response should be received by September 1'' so we may proceed with the sunset review and
schedule the required public hearing. Please submit the requested information to:
Megan Gnagy
Arizona State Senate
1700 West Washington
Phoenix, Arizona 85007
Thank you for your cooperation. If you have any questions, please feel free to contact me at ( 602) 926-
5288 or Ms. Gnae at ( 602) 926- 3 171.
Sincerely,
Chuck Gray
State Senator
Chailman, Senate ru'atural Resources and Rural Affairs Committee of Reference
ARIZONA BEEF COUNCIL
SUNSET REVIEW
RESPONSE
August 23,2007
Delivered to:
Senate Natural Resources and Rural Affairs Committee of Reference
Chairman, Honorable Senator Chuck Gray
1 4 0 1 N . 2 4 T H S T R E E T
P H O E N I X , AZ 8 5 0 0 8
( 6 0 2 ) 2 7 3 - 7 4 1 4
* I
ARIZONA BEEF COUNCIL
1401 North 24th Street Phoenix, Arizona 85008 ( 602) 273- 71 63
August 23,2007
Senator Chuck Gray
Chairman, Senate Natural Resources and Rural Affairs Committee of Reference
1700 W. Washington, Suite S
Phoenix, AZ 85007- 2844
RE: Arizona Beef Council Sunset Review
Dear Senator Gray:
The Arizona Beef Council Board of Directors respectfully requests the
Committee of Reference consider a recommendation to continue the Arizona
Beef Council for 10 years. The Arizona Beef Council and its promotion and
research programs are solely funded by private beef producer dollars collected
via a $ 1 per head checkoff.
The Arizona Beef Council is a non- regulatory program established under
ARS Title 3, Chapter 11, and Article 2. The program has great support from
Arizona's beef producing families for its continuation.
Attached is the information you requested for the sunset review process.
If you have the need for any further information I can be reached at ( 602) 399-
01 83 or at baia@ arizonabeef. org.
Ranchers, Feeders and Dairymen working together on Beef Promotion, Education and Research
Sunset Factors for the Arizona Beef Council
Prepared August 23,2007
Question: The objective and purpose of establishing the agency.
Answer: Laws 1970, Ch. 87, 91; Laws 1988. Ch. 12, § 5; and Laws 1998,
Ch. 5 $ 3 have consistently provided that: " The legislature intends by this act to
provide the cattle industry in this state with authority to establish a self- financed
program to help market, develop, maintain and expand the state, national and
foreign markets for beef and beef products produced, processed or
manufactured in this state and to encourage the use and consumption of such
beef and beef products."
Pursuant to § 3- 1233 the council shall:
1. Receive and disburse funds under the provisions of this article to be used
in administering the provisions of this article.
2. Annually elect a chairman from among its members. No chairman shall
succeed himself more than once.
3. Elect a secretary- treasurer who may be from among its members.
4. Meet regularly every three months and at such other times as called by
the chairman or when requested by five or more members of the council.
5. Keep a permanent record of its proceedings and prepare for the governor
and the beef industry an annual report of its activities, receipts and
expenditures.
B. The council may:
1. Conduct or contract for scientific research to discover and develop
improved marketing methods for beef and beef products, including
programs of consumer education and protection.
2. Disseminate reliable information, founded upon research; showing uses or
probable uses of beef and beef products.
3. Study state and federal legislation with respect to tariffs, duties, reciprocal
trade agreements, import quotas and other matters concerning the beef
industry.
4. Sue and be sued as a council, without individual liability, for acts of the
council within the scope of the powers and duties conferred upon it by this
article.
5. Enter into contracts to carry out the purpose of the council as provided in
this article, including contracts for promotion of beef and beef products
and development of new markets through such promotion.
6. Appoint advisory groups composed of representatives from organizations,
institutions or businesses related to or interested in the welfare of the beef
industry.
7. Make grants to research agencies for financing special or emergency
studies, or for purchase or acquisition of facilities necessary to carry out
the purposes of the council.
8. Appoint subordinate officers and employees of the council and prescribe
their duties and fix their compensation.
9. Cooperate with any local, state or nationwide organization or agency
engaged in work or activities similar to or related to those of the council,
and enter into contracts with such organizations or agencies for carrying
on joint programs.
10. Act jointly and in cooperation with the state or federal government, or both,
or any agency thereof in the administration of any program of the
government or of a governmental agency deemed by the council as
beneficial to the beef industry of this state, and expend funds in
connection therewith.
11 . Adopt rules and regulations necessary to carry out the provisions of this
article.
12. Adopt1 rescind, modify or amend all proper regulations, orders and
resolutions for the exercise of its powers and duties.
Question: The effectiveness with which the agency has met its objective and
purpose and the efficiency with which it has operated.
Answer: The ABC has effectively implemented programs which have
increased beef demand 20% since 1998 ( Per capita consumption versus retail
price chart attached). We have accomplished this feat through development and
participation in the industry's first Long Range Plan focusing on: Quality;
Consistency; and Convenience ( Integrated Plan Chart attached). Participation in
the Beef Demand Study Group designed to identify drivers for beef demand. The
drivers we focus on are: Convenience; nutrition; safety; tenderness; and exports.
We have supported research to improve the safety of beef by developing
intervention methods and thereby reducing the incidence of E. coli in ground beef
( Prevalence of E. Coli Chart attached). The ABC has been successful in
increasing the amount consumers expend for beef and beef products ( Consumer
Expenditure Chart Attached).
All of these efforts begin with the development of the ABC1s Annual Market Plan.
These programs and projects are developed by nine appointed beef producers
from Arizona and it is carefully coordinated with state and national organizations
to maximize cost and staff effectiveness. Fifty percent of our promotion dollars
are allocated to national development programs allowing Arizona to bring these
programs back to Arizona for implementation. This allows the ABC staff to
concentrate on input and implementation rather than development costs.
Question: The extent to which the agency has operated within the public
interest.
Answer: The ABC has operated within the public interest by providing
research monies to develop and discover food safety intervention methods to
reduce the incidence of food borne illness. We have developed and provided
product information at no cost to the consuming public regarding nutrition,
cooking and handling information about beef. The ABC operates a school
nutrition program whereby resources and presentations are offered to schools
about food handling, food safety, nutrition and production information regarding
beef and beef products.
Question: The extent to which the rules adopted by the agency are consistent
with the legislative mandate.
Answer: The ABC operates under the rules and regulations developed for
the Beef Promotion Act of 1985 by the Cattlemen's Beef Promotion Board and
United States Department of Agriculture. These rules are consistent with the
legislative mandate. These federal rules and specific procedures are
communicated to producers and collection points by the ABC. This is
accomplished by presentations at producer forums, auction markets and annual
publications. The Arizona Department of Agriculture, Animal Services Division is
kept apprised of these rules and operates closely with the ABC on Beef Check
Off issues. The Arizona Department of Agriculture's Associate Director of Animal
Services serves on the ABC Board as a non- voting member.
Question: The extent to which the agency has encouraged input from the
public before adopting its rules and the extent to which it has
informed the public as to its actions and their expected impact on
the public.
Answer: The ABC in conjunction with the Cattlemen's Beef Promotion Board
and the United States Department of Agriculture has diligently encouraged input
from the public on both collection procedures and actual promotion program
content. The public, universities, and other agricultural non- profit organizations
are notified 90 days prior to development of the ABC1s Annual Market Plan for
input and program requests. Any proposed changes in these federal rules are
preceded by discussions with industry leaders and the public through a variety of
industry publications and forums. The ABC routinely communicates promotion
program content and progress through local cattlemen and dairymen meetings,
public speaking appearances, and articles in industry literature, correspondence
and direct mail contact encouraging public comment or suggestions.
Question: The extent to which the agency has been able to investigate and
resolve complaints within its jurisdiction.
Answer: Response to producer complaints is prompt and courteous.
Whenever procedure clarification is needed the ABC communicates in writing
and the appropriate documentation is provided. Any necessary investigations
are coordinated with the Cattlemen's Beef Promotion Board, United States
Department of Agriculture and the Arizona Department of Agriculture to ensure
any necessary corrections are made. If the complaint is from a consumer
regarding specific beef information, details are documented, problem is
investigated and the suggested correction is made back to the consumer. If a
complaint regarding incorrect nutrition labeling on a package of fresh beef
occurred, it would result in the ABC approaching the appropriate retail outlet and
discuss the information. Our recommendation may be to adjust the label with
specifically based data from our office.
Question: The extent to which the attorney general or any other applicable
agency of state government has the authority to prosecute actions
under the enabling legislation.
Answer: Failure to comply with the state beef check off collection is a class 2
misdemeanor. ABC would forward non- compliance complaints to the Arizona
Attorney General's office for prosecution under the state statute. In its 37 year
history, ABC has only filed one complaint for non- compliance.
Question: The extent to which agencies have addressed deficiencies in their
enabling statutes which prevent them from fulfilling their statutory
mandate.
Answer: The beef industry has twice requested legislation be introduced to
increase check off funding. These increases were a reflection of change from a
commodity- type marketing program to a consumer- oriented one. It has allowed
for the expansion of program content to address consumer needs and was
necessary for beef to compete in today's marketplace. A legislated check off has
ensured uniform collection procedures where all producers are treated in the
same manner and allowed to accept responsibility for marketing beef as a
finished product. This type of self- help program avoids government subsidy
since the ABC even pays the Arizona Department of Agriculture for the cost of
collection.
Question: The extent to which changes are necessary in the laws of the
agency to adequately comply with the factors listed in this
subsection.
Answer: There are no changes necessary to enhance the ABC's compliance
with the factors associated with this review. The ABC always assumes the
responsibility for being accountable to the producers who pay the check off. The
ABC is subject to the strictest financial audit each year and the Cattlemen's Beef
Board conducts a procedural audit of the ABC on a recurring basis. The ABC
always wants the Arizona Department of Agriculture to keep proper collection
records and work with the ABC on collection issues.
Question: The extent to which the termination of the agency would
significantly harm the public health, safety or welfare.
Answer: Eliminating the ABC would not significantly harm the public health,
safety and welfare; it would affect the quality of consumer information regarding
nutrition and the safe handling of beef. It is important that consumers have
access to current food safety and nutrition information and the ABC provides
such a service. The ABC's primary objective is to help market, maintain and
develop markets for beef. The elimination of ABC would limit Arizona's ability to
expand beef marketing opportunities.
Question: The extent to which the level of regulation exercised by the agency
is appropriate and whether less or more stringent levels of
regulation would be appropriate.
Answer: The ABC does not regulate cattle producers. It simply implements
the producer directed efforts for beef promotion and research. No change is
needed.
Question: The extent to which the agency has used private contractors in the
performance of its duties and how effective use of private
contractors could be accomplished.
Answer: ABC utilizes private sector contractors for a variety of services
whenever possible. For example, the ABC contracts with private printing
companies for production of brochures and newsletters. It contracts with private
contractors for bookkeeping, administrative and receptionist services. The
production and design of public displays and booths is contracted and the
implementation of a variety of promotion programs is contracted with private
parties.
Request for Additional written responses:
Statement: Identification of the problem or needs that the agency is intended to
address.
Response: The ABC fulfills the need for cattle producers to have a focused and
effective producer directed promotion and research program. The ABC provides
the location and programs for a single clearing house for producers to direct
resources towards the promotion and research programs which best serves their
businesses. In addition, the ABC provides a location for consumers to address
questions and find resources regarding food preparation, nutrition and food
safety.
Statement: A statement, to the extent practicable, in quantitative and qualitative
terms, of the objectives of such agency and its anticipated
accomplishments.
Response: The ABC is focused on increasing the demand for beef while
providing a healthy, safe and nutritious meal choice for consumers. Since 1993,
the Beef Checkoff Program, funded by 50 cents of every dollar we collect in
Arizona, has invested more than $ 25 million in beef safety research reducing the
incidence of food borne pathogens such as E. coli. The checkoff's award-winning
School Wellness Kit helps school staff implement policies promoting
balanced nutrition and healthy lifestyles. Combined with the checkoff's popular
fourth- and fifth- grade Choose Well classroom kit, important nutrition lessons are
being communicated to school wellness personnel and students. In the retail
arena, the beef checkoff achieved partnerships with 27 different retailers in 40
markets in Fiscal 2006. Total dollar sales of beef in those markets advanced 3
percent for the year and volume sales jumped 6 percent. From the Today Show
to Bon Appetit to the food & lifestyle sections of newspapers across the country,
checkoff- funded public relations generated substantial media coverage
highlighting recipes, preparation information and the positive nutritional attributes
of beef, totaling more than 4.6 billion consumer media impressions in Fiscal
2006. In 2006, the checkoff's www. zip4tweens Web site received a prestigious
Parents' Choice approved award. The checkoff's teacher- oriented Web site,
www. teachfree. com, meantime, realized a 175 percent increase in online orders
during the year. Checkoff- funded " Beef. It's What's for Dinner" consumer ads
reached 96 percent of adults I 8 times - at a total cost of less than ? 4 penny per
time - in Fiscal 2006. Tracking research shows that checkoff consumer ads
clearly communicate and improve consumer perceptions about beef, with 79
percent of respondents who had seen the ads stating that " beef is a food I would
have a hard time giving up" and 73 percent saying that they felt better about
eating beef after seeing the checkoff's nutrition ads.
Statement: An identification of any other agencies having similar, conflicting or
duplicative objectives, and an explanation of the manner in which
the agency avoids duplication or conflict with other such agencies.
Response: There are no other agencies which perform the objectives or
services provided by the ABC. While there are other " general nutrition"
messages conveyed by Departments of Health, none of these are directing
research and education focused efforts about the role of beef in a healthy
lifestyle. Our partnerships with private retail outlets, regarding beef promotion,
are not replicated anywhere else.
Statement: An assessment of the consequences of eliminating the agency or of
consolidating it with another agency.
Response: The ABC operates only with checkoff dollars from beef producers.
Eliminating it would deprive Arizona's beef producers of a focused and effective
beef promotion research and education program operated by the ABC, a
qualified state beef council. Since there are no other agencies performing this
type of beef specific program, utilizing beef producer dollars, there are no likely
candidates for consolidation. In addition, the Arizona Department of Agriculture
is paid 5% of all ABC collections, which occur while they are already performing
other statutorily mandated inspections, and they would lose these revenues if the
program were eliminated.
REVISED # 2 REVISED # 2 REVISED # 2
Interim agendas can be obtained via the Internet at http: llwww. azleg. state. az. usllnterimCommittees. asp
ARIZONA STATE LEGISLATURE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND HOUSE WATER AND
AGRICULTURE COMMITTEE OF REFERENCE
Date: Thursday, November 8,2007
Time: 1: 00 P. M.
Place: SHR I
AGENDA
1. Call to Order
2. Opening Remarks
3. Arizona Beef Council
Presentation
Public Testimony
Discussion
Recommendations by the Committee of Reference
4. Arizona State Veterinary Medical Examining Board
Presentation
Public Testimony
Discussion
Recommendations by the Committee of Reference
a;
6. Adjourn
Members:
Senator Chuck Gray, Co- Chair
Senator Amanda Aguirre
Senator Marsha Arzberger
Senator Robert Blendu
Senator Karen Johnson
Representative Lucy Mason, Co- Chair
Representative Jack Brown
Representative Jennifer Burns
Representative John Kavanagh
Representative Lynne Pancrazi
Persons with a disability may request a reasonable accommodation such as a sign language interpreter, by contacting the
Senate Secretary's Office: ( 602) 926- 4231 ( voice). Requests should be made as early as possible to allow time to arrange the accommodation.
Page 1 of 1
ARIZONA STATE LEGISLATURE
Forty- eighth Legislature - First Regular Session
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE WATER AND AGRICULTURE
COMMITTEE OF REFERENCE
Minutes of Interim Meeting
Thursday, November 8,2007
Senate Hearing Room 1 - 1 : 00 P. M.
Chairman Gray called the meeting to order at 1: 10 p. m. and attendance was noted by the
secretary.
Members Present
Senator Chuck Gray, Co- Chair
Senator Marsha Arzberger
Senator Karen Johnson
Senator Amanda Aguirre
Senator Robert Blendu
Representative Jack Brown
Representative John Kavanagh
Representative Lynne Pancrazi
Members Absent
Representative Lucy Mason, Co- Chair
Representative Jennifer Burns
Chairman Gray announced that the meeting will begin even though a quorum is not yet present.
He stated that no votes will be taken until a quoruin is reached.
ARIZONA BEEF COUNCIL
Megan Gnagv, Senate Natural Resources and Rural Affairs Analyst, described the background of
tlie Arizona Beef Council.
Presentation
Bas Aia, Arizona Beef Council, addressed the committee to explain that, although lie is
associated with the Arizona Cattleman's Association, he is today functioliing as the Executive
Director for the Arizona Beef Council, which does not deal with any policy matters related to
beef production, but rather functions as the promotion and research arm for the industry in
Arizona.
Mr. Aja explained that the Arizona Beef Council is a lion- profit organization established by
statute because federal law requires a state charter for the program. He explained that the
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE WATER AND AGRICULTURE
COMMITTEE OF REFERENCE
November 8, 2007
Council has established a program that promotes and provides research on beef nutrition and
food safety and all other matters related to beef and beef products. He explained the financing
structure.
Chairinan Gray explained that this Committee, not the Auditor General, audits this agency.
Discussion ensued regarding the various administrative services provided to the Arizona Beef
Council. Mr. Aja explained that his service is contracted through the Cattleman's Association,
and that the Council has no employees and a nine- member Board appointed by the Governor; he
explained the process that the Council uses to secure services.
Chairman Gray stated that the request is for a ten year continuation, but that, due to Legislative
term limits, he wondered what Mr. Aja would think about a five year sunset; Mr. Aja replied
that there are many checks on the Council from other sources.
Chairman Gray asked if the Council did any internal audit, and how often; Mr. - 4ja explained
that the Council comes under scrutiny by:
1. State Auditor General
2. Solicitor of US Department of Agriculture
3. annual procedural audits by Cattleman's Beef Board
Discussion ensued about recent audits, recommendations, and compliance. Chairman Gray
requested a copy of the most recent review and the policies and procedures manual which was
developed to document existing practices and correct identified deficiencies.
Representative Brown stated that the Council is a well- handled state agency and expressed his
opinion that Arizona needs to continue it and that he supports the ten year sunset.
Representative Kavanagh stated that any deficiencies seem to be procedural and that a seven year
sunset might be advisable.
Representative Pancrazi stated her support for a ten year sunset.
Senator Arzberger stated that she supports a ten year sunset for these small, self- funded agencies.
Senator Johnson stated that Legislative members are to have oversight and that she is in favor of
a five or a seven year time frame to bracket Legislative term limits.
Mr. Aja concurred that there call be some institutional gaps in the sunset process due to term
limits, but stated that for agencies such as the Council, he prefers ten year sunset reviews.
Chairman Gray stated his opinion that the Beef Council has no problems and has responded to
recommendations from the Beef Board, so there is no reason to scrutinize it; however, he stated,
he agrees with Senator Johnson's comments and is in favor of a seven year sunset review.
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE WATER AND AGRICULTURE
COMMITTEE OF REFERENCE
2 November 8,2007
Recommendations by the Committee of Reference
Senator Johnson moved that the Senate Natural Resources and Rural Affairs and
House Water and Agriculture Committee of Reference recommend the continuation
of the Arizona Beef Council for seven years. The motion failed by a voice vote.
Senator Johnson moved that the Senate Natural Resources and Rural Affairs and
House Water and Agriculture Committee of Reference recommend the continuation
of the Arizona Beef Council for ten years. The motion carried by a voice vote.
Chairinan Gray directed staff to draft Legislation to effect the motion.
ARIZONA STATE VETERINARY MEDICAL EXAMINING BOARD
Ms. Gnagy explained the statutory mandate of the Arizona State Veterinary Medical Examining
Board to license and regulate veterinarians, veterinary technicians, veterinary premises and
crematoriums.
Presentation
Jeima Jones, AZ Veterinary Medical Examining Board, explained that this Board is self- funding
and its mission is to protect the general welfare of the public and of animals. She described the
Board which is comprised of nine members: five veterinarians and four public members, one of
whoin represents the cattle industry. She stated that the Board has five- and- a- half employees
and two primary programs, licensing & regulation and investigation. She explained that their
last sunset review was in 1997, and as a result of that they have changed their investigative
process by instituting investigative committees.
Chairman Gray asked if any license renewal was ever denied. Discussion ensued about license
renewals, continuing education hours, premise inspections, and complaint handling.
Ms. Jones concluded by requesting a ten year continuation.
Chairman Gray asked about a seven year versus a ten year continuation; Ms. Jones replied that
because hers is a small agency with many projects underway and a good history, she asks for a
ten year continuation.
Chairman Gray asked about the mission statement and any areas of improvement; Ms. Jones
stated that they protect the public and that they have met their mandate. She further explained
that information teclmology via their website is an area of improvement that is underway, and
that they are working to improve the investigative process.
Chairman Gray asked about the complaint process and how they handle unfounded complaints;
Ms. Jones described the processes which are followed, explaining that letters of concern may be
issued. Ms. Jones added that the Veterinary Medical Association supports continuance and is
available to testify.
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE WATER AND AGRICULTURE
COMMITTEE OF REFERENCE
3 November 8,2007
Rick Crisler, AZ Veterinary Medical Examining Board, addressed the committee and explained
that in the case of multiple complaints, each issue is handled individually.
Representative Pancrazi asked if the letters of concern are available to the public; Dr. Crisler
explained that they are kept in files for ten years. Ms. Jones added that if the letter is disciplinary
in nature, it is kept for twenty- five years and is available by request to the public.
Senator Arzberger stated her concern with " five- and- a- half' employees.
Recommendations by the Committee of Reference
Senator Johnson moved that the Senate Natural Resources and Rural Affairs and
House Water and Agriculture Committee of Reference recommend the continuation
of the Arizona State Veterinary Medical Examining Board for ten years. The
motion carried by a voice vote.
Chairman Gray noted that three members were in favor of a seven year sunset due to legislative
term limits, not to any activity of the Arizona State Veterinary Medical Examining Board.
Chairman Gray directed staff to draft Legislation to effect the motion.
Without objection, the meeting adjourned at 2: 07 p. m.
( Original minutes, attachments and audio on file in the Office of the Chief Clerk; video archives
available at l~ ttp:// www. azlep;. p; ov/)
SENATE NATURAL RESOURCES AND RURAL AFFAIRS AND
HOUSE WATER AND AGRICULTURE
COMMITTEE OF REFERENCE
4 November 8,2007
