Meeting Minutes) Is Prepared by the Legislative Service Office (LSO) and Is the Official Record of the Proceedings of a Legislative Committee Meeting

D r a f t O n l y A p p r o v a l P e n d i n g SUMMARY of PROCEEDINGS J O I N T A G R I C U L T U R E , S T A T E A N D P U B L I C L A N D S & W A T E R R E S O U R C E S C O M M I T T E E

COMMITTEE MEETING INFORMATION May 24-25, 2021 | 8:30 AM Gillette College Technical Education Center, Room 136 3251 South 4-J Road Gillette, Wyoming

COMMITTEE MEMBERS PRESENT Senator Brian Boner, Co-chairman Representative John Eklund, Co-chairman Senator Anthony Bouchard Senator Tim French Senator R. J. Kost Senator Jeff Wasserburger Representative Jim Blackburn Representative Aaron Clausen Representative Bill Fortner Representative Scott Heiner Representative Dan Laursen Representative Cyrus Western Representative Robert Wharff Representative John Winter

LEGISLATIVE SERVICE OFFICE STAFF Heather Jarvis, Staff Attorney Katie Talbott, Legislative Editor Heather Kammerman, Executive and Fiscal Assistant Joe Peterson, Information Technology Specialist

OTHERS PRESENT AT MEETING Please refer to Appendix 1-02 to review the Committee Sign-in Sheet for a list of other individuals who attended the meeting.

The Committee Meeting Summary of Proceedings (meeting minutes) is prepared by the Legislative Service Office (LSO) and is the official record of the proceedings of a legislative committee meeting. This document does not represent a transcript of the meeting; it is a digest of the meeting and provides a record of official actions taken by the Committee. All meeting materials and handouts provided to the Committee by the Legislative Service Office, public officials, lobbyists, and the public are on file at the Legislative Service Office and are part of the official record of the meeting. An index of these materials is provided at the end of this document and these materials are on file at the Legislative Service Office. For more information or to review meeting materials, please contact the Legislative Service Office at (307) 777-7881 or by e-mail at [email protected]. The Summary of Proceedings for each legislative committee meeting can be found on the Wyoming Legislature’s website at www.wyoleg.gov. PAGE 2 OF 18

EXECUTIVE SUMMARY The Joint Agriculture, State and Public Lands and Water Resources Interim Committee met for two days in Gillette. The Committee began their work on interim topics by receiving testimony from State and local agencies including the Wyoming Energy Authority, Wyoming Community Development Authority, and the Wyoming Business Council concerning quasi-governmental entity organizations and bonding. The Wyoming Department of Agriculture, Wyoming Livestock Board, Office of State Lands and Investments and the Wyoming Business Council provided information regarding the organization and history of those agencies. The Committee received agency updates and reports from Office of State Lands and Investments, Wyoming Department of Agriculture, Wyoming Livestock Board, Wyoming State Fair and the University of Wyoming College of Agriculture and Natural Resources. Predator management, trespass of wild, feral and estray horses, livestock water rights on federal lands and perfecting land exchanges with the federal government all brought numerous state and federal agencies and partners to the discussion including the Bureau of Land Management, United States Forest Service, United States Department of Agriculture, Animal Plant Health Inspections Service, Wildlife Services, United States Fish and Wildlife Service, Wyoming Department of Agriculture, Wyoming State Engineer, and numerous stakeholder groups. The meeting can be viewed on YouTube – Joint Agriculture, State and Public Lands and Water Resources Interim Committee, May 24, 2021 AM, PM, May 25, 2021 AM, PM. The next Committee meeting is scheduled for September 9-10, 2021.

CALL TO ORDER (MAY 24, 2021) Co-chairman John Eklund called the meeting to order at 8:30 a.m. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 1-01 to review the Committee Meeting Agenda.

ADOPTION OF INTERIM COMMITTEE MEETING RULES The Committee voted to adopt the proposed Interim Committee Rules at Appendix 1-03, as amended by deleting the last sentence of the first page regarding polling members and further amended by requiring a majority of members of the Committee from each house to sponsor legislation.

AUTHORITIES/QUASI-GOVERNMENTAL ENTITIES IN WYOMING – OVERVIEW/HISTORY AND EMPIRICAL EXPERIENCES

Information on revenue bonding Donna Shippen, Research Deputy Administrator, Legislative Service Office (LSO), provided slides, Appendix 2-05, summarizing her research memo outlining Industrial Revenue Bonds (IRB), Appendix 2- 01. IRBs are bonds issued by state and local governments to finance the acquisition, construction, or expansion of capital facility projects for private, for-profit businesses. Wyoming is using 50% of the statutorily set $300 million tax-exempt volume cap each year. Ms. Shippen explained that it may not be feasible to use IRBs as matching funds for a Wyoming meat processing expansion grant program due to the small amount, $1 million, of the grant, because banking and legal fees may be as much at $60-70,000. She responded that there is no limit on the dollar amount of taxable bonds that could be issued, except that when using taxable bonds in combination with tax-exempt bonds, the total cost of a project is limited to $20 million.

Wyoming Energy Authority Glen Murrell, Wyoming Energy Authority, provided the background of the Wyoming Energy Authority, which was created July 1, 2020 by merging the Infrastructure Authority and the Pipeline Authority to create

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 3 OF 18 a unified entity to support the energy industry in the state. Their mission is to secure and sustain the energy economy in Wyoming, which is the third largest state energy economy in the country. The Wyoming Energy Authority has an IRB cap of $3 billion, which can be deployed for infrastructure facility build outs related to the energy sector. The State Treasurer may invest in the IRBs but is under no obligation to do so. While this bonding authority has existed for approximately eighteen years, bonds have been used twice.

Wyoming Community Development Authority Scott Hoversland, Executive Director, Wyoming Community Development Authority (WCDA), provided a brief history of the WCDA, created in 1975, Appendix 2-03. No substantial changes have occurred to the Wyoming Community Development Act since 1988. The WCDA issues mortgage revenue bonds to finance the purchase of first-time homebuyer loans for the citizens of the State of Wyoming. The bonds are tax- exempt and subject to the private activity volume cap of the State. Projects eligible for financing through private activity bonds include funding and refinancing loans for students, airports, private universities, hospitals, affordable rental housing and first-time lower-income home buyers. The WCDA will be adding the Community Development Block Grant (CDBG) Program on July 1, 2021. The federal CDBG Program provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low-and moderate-income persons.

Wyoming Business Council Josh Dorrell, CEO, Ron Gullberg, and Jill Tregemba, Wyoming Business Council (WBC), provided information and slides found in Appendix 4-05 and Appendix 4-06. The WBC is tasked with developing not only a diverse economy, but also a resilient economy for Wyoming. Ms. Tregemba highlighted a few areas of success within the agricultural sector including the expansion of eight additional small United States Department of Agriculture (USDA) meat processing plants in three years.

The Committee requested a report from the WBC regarding the audits following the distribution of CARES Act funds. The funds distributed are publicly available on wyopen.gov. The Committee asked about the amount of funds distributed to agricultural related businesses through business ready grants and would like to have that information available at the next meeting.

The Committee voted to request a bill draft to clarify the use of IRBs for agricultural and agricultural- related businesses. The request was to specifically look at modifying statutes W.S. 15-1-701 et seq.

AGRICULTURE RELATED AGENCIES AND ROLES – CURRENT ORGANIZATION (AND 5-10 YEAR HISTORY)

Wyoming Department of Agriculture Doug Miyamoto, Director, Wyoming Department of Agriculture (WDA) provided an overview and background on the WDA and the services they provide. The WDA's biggest focus is consumer protection. The WDA has five divisions: Administration, Analytical Services, Consumer Health Services, Natural Resources and Technical Services and eighty-six employees, Appendix 4-02. Mr. Miyamoto emphasized the WDA did not hire additional employees with CARES Act funds due to the one-time nature of those funds. The Committee discussed the challenges of hiring qualified meat inspectors in the state.

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

Wyoming Livestock Board Steve True, Director, Wyoming Livestock Board (WLSB) and Shaun Sims, Board President, provided an update as well as an organizational chart of the WLSB, Appendix 4-03. The WLSB is tasked with the regulation, enforcement, and protection of the livestock industry in Wyoming. The WLSB oversees animal health, brand recording and inspections. The Committee discussed the memorandum of understanding (MOU) program the WLSB has in place for law enforcement purposes after law enforcement positions were eliminated from the WLSB.

Office of State Lands and Investments Jenifer Scoggin and Jason Crowder, Director and Deputy Director, Office of State Lands and Investments (OSLI), presented the OSLI organizational chart and activities in a series of slides, Appendix 2-04. The OSLI mission is to effectively manage natural resources and funds for current and future generations. The OSLI is the administrative arm of the Board of Land Commissioners and the State Loan and Investment Board (SLIB) and has approximately 100 full time employees. The Board of Land Commissioners, composed of the top five elected positions in the state, is charged with optimizing revenue from state trust lands. In 2009, in response to the Weed and Pest Act and acting as a landowner for the State, the Board adopted a weed and pest rule to encourage participation in weed and pest control on state trust lands. The program reimburses county weed and pest districts only and not lessees directly. The Committee requested the amount of staff time necessary to coordinate and execute the weed and pest program within the OSLI. Ms. Scoggin discussed the SLIB Farm Loan Program which brought questions from the Committee concerning the interest rate charged and whether or not those statutes needed to be reviewed.

Information on surrounding states, Legislative Service Office Abigail Boudewyns, Research/Evaluation Administrator, LSO, presented the research memo in Appendix 4-01, outlining other states’ departments of agriculture regulatory and marketing functions. Ms. Boudewyns outlined Wyoming, Kansas, Nebraska, North Dakota, Montana and Idaho and how those departments of agriculture are organized. Surrounding states have divisions for the promotion, marketing and outreach of agriculture; Wyoming does not.

Committee Action The Committee voted in favor of a bill draft to move weed and pest functions, funding and one employee from the OSLI to the WDA.

AGENCY UPDATES, REPORTS, LEGISLATIVE NEEDS Office of State Lands and Investments and Board of Land Commissioners Governor Mark Gordon, on behalf of the Board of Land Commissioners, and Joe Budd, policy advisor for the Governor’s Office, provided remarks concerning the bidding and leasing process for state lands and the state’s work with vacant lands. Language in Article 18, Section 3 of the Wyoming Constitution compelling the Board to realize the largest possible proceeds for state lands has led to some confusion with "preferences" referred to in state land statutes. They pointed out instances that may not be understood in all circumstances, such as where there are two leases that are not proximate to one another or where the federal government is an adjacent landowner. The OSLI has draft rules for vacant land leasing that may help resolve the confusion. Proposed legislation during the 2021 General Session (2021 SF0114) aimed to address the issue but fell short after several amendments and was ultimately vetoed by the Governor.

State Treasurer Curt Meier, speaking on his own behalf, would prefer an open bidding process rather than a process where a person with a preference may match the high bid. Mr. Meier indicated if you only enter

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 5 OF 18 into a bid match process it could potentially drive down the value of the land rather than an open bidding process, which could maximize proceeds for the beneficiaries. To protect properties, he suggested restricting who qualifies to lease lands and the terms of the leases. Balancing both goals, preference for adjoining landowners and making as much money as possible for the State, could be accomplished by agency rules. He also suggested looking at public leases versus private leases and animal unit per month (AUM) prices.

Director Scoggin, Deputy Director Crowder and Bill Crapser, State Forester, provided the agency update for the OSLI. The Committee asked them to follow up on the vacant land leasing rules they are drafting pursuant to SF0114, which will be ready for the Board of Land Commissioners on June 3, 2021 and will become public at that time. Ms. Scoggin will provide those rules to the Committee. Director Scoggin informed the Committee about the voluntary land exchange rules on which the OSLI is also working.

Mr. Crowder reviewed the materials in Appendix 4-04, which included project costs and revenues from state trust lands.

Mr. Crapser provided an update and cautioned about the forecasted warm and dry summer conditions across the state, increasing the potential for a devastating fire season. This fire season will likely deplete the $8.5 million in the fire suppression account. Last year there were about 1200 fires reported in the Wyoming, 84% of those were human caused.

Public Comment Jim Magagna, Wyoming Stock Growers Association (WSGA), spoke regarding 2021 SF0114 "State land leases," which he supported until the final amendment, believing it eliminated some necessary flexibility. Mr. Magagna supports greater clarity with respect to landowner preference and matching the high bid, and he spoke against the open bidding concept due to the uniqueness of lease lands and specific needs of agricultural operations.

Amy Hendrickson, Wyoming Wool Growers Association, spoke regarding the role of the WDA and the regulatory burdens, but also the support the government can exercise.

Committee Action The Committee voted to resurrect 2020 HB0037-Voluntary land exchange process as a bill draft, amended to include that within thirty days of the submittal of the application the OSLI shall post public notice of a proposed land exchange. The Committee also authorized a bill draft based on 2021 SF0114 as enacted, with anticipated recommendations for changes at the next meeting from the Governor, OSLI and producer groups.

Wyoming Department of Agriculture Director Miyamoto provided the agency update for the WDA. He indicated it had been a hectic year with the COVID-19 health emergency, and the WDA worked hard to develop emergency rules and roll out numerous aid programs. The primary item the WDA was tasked with was the Wyoming Meat Expansion Grant Program which required a very fast turnaround to use CARES Act funds. The WDA is currently preparing emergency rules for a Wyoming Meat Expansion Grant Program 2.0 in case an additional allocation of funding becomes available to the WDA. The WDA was also forced to pass emergency rules for the food and restaurant industry related to food trucks. Truck stops were forced to close due to the pandemic and the trucking industry needed food services while on the road, the emergency rules allowed

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 6 OF 18 for mobile food services to be available and allowed trucks to overnight in rest areas, as well as dealing with a backlog overstock of winterized diesel fuel. Mr. Miyamoto stated that Wyoming was fortunate during the pandemic to not experience the closure of any meat processing plants, unlike surrounding states.

Mr. Miyamoto briefed the Committee on the Zebra mussels invasive species found in moss balls. The WDA has been cooperating with the Wyoming Game and Fish Department (WGFD) and implemented an importation quarantine ban almost immediately upon discovery of the issue in March.

Mr. Miyamoto discussed the USDA audit of the WDA based on the 2020 HB0155-Animal shares bill. Because distribution of meat pursuant to an animal share direct from the farm or ranch where the animal is located differs from standard meat inspection and distribution processes, the USDA has concerns regarding compliance with federal regulations. The USDA conducted inspections at numerous meat processing plants in Wyoming and did not discover any record keeping violations. Additional inspections will occur in the future.

The step 2 and 3 budget cuts affected the WDA by eliminating a scale inspector from Lander and another position, in addition to other funding. Director Miyamoto has concerns about continuing the basic services required for the inspection of scales. Lastly the Director told the Committee that Wyoming would be hosting the National Association of State Departments of Agriculture in 2023.

Wyoming Livestock Board Director Steve True, State Veterinarian Dr. Jim Logan and WLSB President Shaun Sims presented the WLSB update. Dr. Logan provided an update on the reportable diseases list, which included brucellosis, and reported there is currently only one affected bison herd under quarantine in the state as of April 15, 2021. Training in and around the Designated Surveillance Area (DSA) continues as the WLSB encourages risk assessment and herd plan development. Dr. Logan presented further information on reportable diseases in Appendix 6-01. Dr. Logan reported on Rabbit Hemorrhagic Disease Virus 2 (RHDV2), which has increased in the United States and Wyoming in domestic and wild rabbits. Dr. Logan also discussed the increase in Johne’s disease in bovine, goat, and sheep populations. He recommended establishing a working group to address the increased incidence of the disease.

Director True briefed the Committee on the updated brand renewal process, which now includes renewals in 10-year increments up to 100 years. There are 5250 brands. Mr. True indicated brand renewals are a consistent means of estimating revenue with 80% of brands renewing, whereas brand inspection revenue is more variable and difficult to predict.

WLSB President Shaun Sims provided a brief update on the WLSB and its membership regarding outgoing and newly appointed members.

Wyoming State Fair Courtny Conkle and Reba Sundseth, General Manager and Assistant General Manager, Wyoming State Fairgrounds, along with Director Miyamoto, provided an update regarding the Wyoming State Fair. The Wyoming State Fair is a division within the WDA. Ms. Conkle reported all contracts for the 2021 State Fair have been drafted, all retail spaces are sold out, and they have diversified the entertainment, food, and shopping offerings for this year’s fair. The fairgrounds are booked for all but four weeks of the year, which has maximized the available maintenance and manpower. The Wyoming State Fair experienced an 8.6% increase in revenue in 2020 as they were one of the few state fairs to continue through the COVID-19 health emergency. There has, however, been a decrease in permanent campers in the campground.

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

UW College of Agriculture and Natural Resources Barbara Rasco, Dean, University of Wyoming College of Agriculture and Natural Resources, presented slides, Appendix 6-02. Ms. Rasco shared a number of accomplishments, challenges, and needs of the College. Ms. Rasco reviewed the College’s budget, exception request, and position summary. Dean Rasco told the Committee there were currently six counties without Extension educators. The Wyoming State Vet Lab will possibly receive its Biosafety Level-3 (BSL3) designation from the Centers for Disease Control (CDC) in July. Ms. Rasco discussed a new ranch management and leadership program, infrastructure needs, and potential use of American Rescue Plan Act (ARPA) funds for a “Ranch of the Future” program. The Committee questioned her about the budget cuts the College faced compared with the rest of the University and how they were dealing with them. Dean Rasco indicated it is a troubling situation, especially if the cuts continue into 2024.

Public Comment Shaun Sims commented concerning the importance of weights and measures in his livestock production business and urged the Committee to proceed with caution in the reorganization of those duties. He also addressed the budget cuts to the Rangeland Health Assessment Program (RHAP), indicating it was a very valuable program and advocated for its return if possible.

MEETING RECESS The Committee recessed at 5:20 p.m.

TUESDAY, MAY 25, 2021 Co-chairman Boner called the meeting to order at 8:30 a.m.

PREDATOR MANAGEMENT – OVERALL CONCERNS AND REIMBURSEMENT MATTERS Wyoming Department of Agriculture Director Miyamoto, Kent Drake, and Jerry Johnson, WDA, were all present to provide background and information on the predator management and control program within the WDA, Appendix 10-01. In 1953 the Wyoming Legislature authorized the WDA to be the lead agency in predator management. Until 1988 most of the trapping and predator control was done by the WDA, at that time the USDA Animal and Plant Health Inspection Service Wildlife Services (Wildlife Services) became involved and assumed a portion of those duties. In 1999 the Wyoming Legislature formed the Animal Damage Management Board (ADMB), and in 2006 the program received significant funding in the amount of $5.2 million. Predator management is a three-legged stool to manage: the WDA, the counties and Wildlife Services. There is also a subcomponent of the predator management program, wildlife protection and research, operated by the WGFD.

Mr. Drake described the expansion of the ADMB to the counties and the current structure of the partnership with the ADMB. There are twenty-two predator management districts and nineteen boards. All but three counties, Laramie, Platte, and Teton, have predator management boards. Those three counties and Sublette County deal with predators differently than through a partnership with the ADMB. The nonparticipating counties choose not to charge $1.00 per head as required to participate with the ADMB for cost share. Of those participating they can choose to either contract with Wildlife Services for hunting and trapping or alternatively they can choose an independent contractor for those services. Director Miyamoto and Brian

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

Nesvik, Director of the WGFD, serve as co-chairmen on the ADMB. The WDA also administers the aerial permitting contracts.

There are significant contract costs with Wildlife Services; however an exemption has continuously been granted to the WDA and the ADMB. If that exemption were to discontinue it would seriously impact the work of the ADMB. Availability of aircraft pilots (for aerial shooting) has also been a challenge in recent years.

Wyoming Wool Growers Association and County Predatory Boards Ms. Hendrickson told the Committee predators are possibly the number one reason sheep producers leave the industry. A loss of 15% from eagles is often normal, but she described a single producer who experienced a 55% loss of replacement ewes to eagle depredation. The ability to respond quickly is important and the resources are not always readily available. Losses are felt not only by livestock producers, but also by farmers and crop producers. Wildlife Services are often responsible for many areas of animal management, including bird strikes at airports, and frequently do not have the resources to cover all areas of animal and predator management necessary. Agriculture and Wildlife services are often the first services to experience budget cuts. She implored more authority for the WDA to help counties when Wildlife Services cannot respond in ample time. The Wyoming program is the envy of the west; however, it cannot be taken for granted and the need for funding continues to increase. There are more predators than ever before, in part because of the federal protections in place. Predator boards also serve communities and public health by helping to control rabies by controlling skunks.

Wyoming Stock Growers Association Mr. Magagna spoke to the negotiating power of twenty-two separate predator boards with a federal agency, rather than a single, combined force, such as the ADMB/WDA. Mr. Magagna requested help from the Committee to enhance the relationships with the federal government and to strengthen the position of the WDA to negotiate with the federal agencies, especially on performance standards. Many of the current MOUs lack specificity and instead have language requiring consultation.

United States Department of Agriculture, APHIS Wildlife Services Michael Foster, State Director for Wyoming USDA APHIS Wildlife Services and supervisory wildlife biologist, has been with the Service for twenty-five years. He described the size and scope of Wildlife Services, which is intended to provide federal leadership and skill to resolve wildlife interactions that threaten public health and safety, as well as agricultural, property, and natural resources. Wildlife Services works in every state to conduct a program of integrated wildlife damage management in response to local requests, Appendix 10-02. He addressed questions regarding wolf reintroduction in Colorado and explained that Colorado already has wolves, an established pack that migrated from Wyoming. The new ballot initiative would introduce additional wolves.

County Predatory Animal Boards John Auzqui, Sheridan County Predator Board, explained their predator program that does not contract with Wildlife Services. Mr. Auzqui spoke favorably regarding the interactions with the WDA.

Pete Camino, Johnson County Predator Board, described their predator board. They have two contract labor trappers, two part-time labor skunk trappers. They have included outfitters in their flying program. Mr. Camino reported dealing with skunks, marmots, coyotes, mountain lions, bears, wolves and ravens. His

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 9 OF 18 board has data to report that the predator control of coyotes in and around sage grouse leks has in fact increased sage grouse populations in twelve different leks.

Kevin Geis, Campbell County Predator Board, described their contract program. They focus on livestock predation. Campbell County does not contract with Wildlife Services. Mr. Geis indicated they disposed of 155 skunks in one month, while that is a community health benefit it takes time from livestock predation. Predator management provides benefits to the pronghorn and sage grouse populations. They take all manner of animals including coyotes, eagles, ravens and crows.

Wyoming Game and Fish Department Director Nesvik described the role the WGFD takes in predator management and predator projects that benefit wildlife populations. He discussed habitat matters and effects of avian predation. Mr. Nesvik pointed out that Wyoming has the largest sage grouse population in the world, but it remains under threat constantly from predators and environmental factors. He addressed questions regarding wolf reintroduction in Colorado and indicated the state would have very little input in the program. He pointed out that wolves are considered predators in Wyoming except for the northwest corner of the state.

Public Comment Shaun Sims commented from the perspective of a sheep rancher, indicating that eagles and ravens are an issue and expressing frustration over the response time to active predation and permit applications. He commented that bounties are not always successful.

Lisa Robertson, Wyoming resident, spoke in opposition to aerial hunting for predator management. Ms. Robertson expressed concern over a correlation between violence against animals and domestic abuse and criminal behavior. She spoke against chasing and running over coyotes with snowmobiles, promoting 2019 HB0288 and offering additional bill language.

Kristin Combs, Wyoming Wildlife Advocates, spoke in favor of funding for non-lethal predator control methods so that predators can live together with other wildlife and livestock.

Representative Laursen received a text from Park County to ask that funds remain available for mitigation for big game herds moving onto hay grounds due to pressure from wolves and bears.

Committee Action The Committee voted to coordinate with the Travel, Recreation and Wildlife Committee on a letter to the Federal Administration of Wyoming’s desire and intent to proceed with the delisting of grizzly bears.

The Committee voted to draft a bill specifying that the WDA be the primary liaison with other agencies for predator control and also allow the ADMB to contract directly for predator control services instead of going through a local predator control board.

TRESPASS OF WILD, FERAL AND ESTRAY HORSES Bureau of Land Management Kim Leibhauser, Acting BLM Wyoming State Director, presented her testimony provided in Appendix 12- 07, and Appendix 12-06. From fiscal year 2020 to May 25, 2021 the BLM has accomplished 2287 wild horse removals, 171 fertility control treatments, and 491 private care placements in Wyoming. The BLM manages wild horses and burros on 177 designated herd management areas (HMA) on 26.9 million acres

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 10 OF 18 of public lands in ten western states. With virtually no natural predators, wild horse and burro populations can nearly double every four to five years. Wyoming has sixteen HMAs on five million acres, which can adequately support up to 3,795 horses. There are currently more than 7,700 horses on BLM lands in Wyoming.

Kristen Lenhardt, Deputy State Director, discussed options they use for gathering and removal or for fertility control using Porcine Zona Pellucida (PZP), which is not permanent, and spaying, which requires compliance with and impact study according to the National Environmental Policy Act.

Wyoming Stock Growers Association Mr. Magagna thanked the acting State BLM director for working closely with the WSGA. This is a difficult situation for the BLM based on the actions of Congress, such as preventing the sales of gathered horses, which causes disposal not to occur in the numbers that it needs to. There has been an annual increase in wild horse numbers of approximately 20-27%. Mr. Magagna provided documents supporting his testimony, Appendix 12-02 and Appendix 12-05. There is little the Wyoming Legislature or the WSGA can do to remedy the situation as the responsibility lies with Congress. He recommends billing the BLM for damage at different rates depending on whether an area is above or below the appropriate management level (AML). See Appendix 12-04. BLM is lacking in the necessary authority and resources to manage wild horses in reasonable numbers. Much of their budget is being spent on maintenance and care rather than on gathering and disposal.

Shoshone & Arapaho Fish and Game Art Lawson, Director, Shoshone and Arapaho Fish and Game and acting livestock officer, provided information regarding grazing conditions on the Wind River Indian Reservation (WRIR). The WRIR consists of approximately two million acres and there are currently 18,000 feral horses doing damage by destroying fences and degrading grassland and wildlife conditions. Funding is not sufficient to manage the current horse population. There are additional options on the WRIR for addressing this issue, because the WRIR is not subject to the Wild Free-Roaming Horses and Burros Act.

U.S. Fish and Wildlife Service Pat Hnilicka, U.S. Fish and Wildlife Service in Lander, presented slides, Appendix 12-08, detailing current rangeland conditions and impacts of feral horse populations on the WRIR. One horse is the equivalent to approximately two and a half head of elk in terms of forage consumption.

Wyoming Livestock Board Director True explained the WLSB's role with the wild horse population in Wyoming is strictly from a brand inspections perspective. He thanked the LSO and referred to the overlap identified between federal and state statutes identified in the LSO memo, see Appendix 12-01. He noted that a surface owner may authorize a gather, but problems with checkerboard land ownership exist. He noted that they distinguish estrays from wild horses in conjunction with the BLM. If it is not a federal wild horse, then the estray process is triggered to gather then sell, slaughter, or destroy. If they are not wild horses then they can deal with horses as estrays and sell them at public auction.

Wyoming Wild Horse Improvement Partnership Christi Chapman and Mary Santagata, Wyoming Wild Horse Improvement Partnership (WYWHIP), a Wyoming non-profit, works with other agencies to manage the herds to keep them from overpopulating, Appendix 12-03. When the horses overpopulate is when they are forced to expand their range. WYWHIP

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 11 OF 18 has offered to work with the BLM on range improvement projects as well as pursue funding for additional fertility control measures in the wild horse population. They are both certified darters for the remote delivery of PZP. They explained the science about how PZP works. They also have a database to keep track of the horses in each HMA, which allows the public to learn about and adopt the horses.

County Attorneys Violating Wyoming's laws regarding wild horses, estrays or feral livestock constitutes a crime; so several county attorneys participated in the discussion. Representative Ember Oakley, Fremont County and County Attorneys Association, added that proposed state action in regard to feral horses would be addressed by the Attorney General. Responding as to whether state action would benefit the Reservation, she indicated that it would not directly, except insofar as there is state or private land within the Reservation. Dan Erramouspe, Sweetwater County and County Attorneys Association, added that individually or as an association they would be willing to offer any assistance. John Worrall, President County Attorneys Association, Washakie County, mentioned that the Reservation may exercise more management activities than allowed on BLM land. He remarked that the questions remain: who owns the wild horses? If it is the federal government, then after a length of time might they become estrays? He encouraged the committee to reach out to the Association if they can be of help, for research or anything.

Public Comment Beth Callaway, Governor’s Office, Policy Advisor, explained Governor Gordon’s position on wild horse management in Wyoming. It is a concern and he would like to explore solutions that encourage multiple uses. Overpopulation above the AML is a concern. The Governor supports all options to address the situation.

Committee Action The Committee voted in favor of bill drafts to address options one and two from Mr. Magagna's materials, Appendix 12-04, and including that private landowners would be able to apply for payments also.

The Committee voted to have a bill draft prepared for the special session to authorize the use of ARPA funds to assist the state in gathering wild horses and to include lands on the WRIR and an MOU with the BLM. If there is no special session, the Committee may consider a letter to the Governor asking him to consider the use of the ARPA funds for those purposes.

LIVESTOCK WATER RIGHTS ON FEDERAL LANDS Mr. Magagna spoke regarding 2021 SF0135, Water rights-livestock on federal lands, as introduced, which inserts a new section in water law specific to water rights for watering livestock on federal land, Appendix 14-01. A list of remaining issues was presented as Appendix 14-02 that could be examined and potentially resolved. Mr. Magagna further referenced a report on stock water permits and rights on federal lands written by a WSGA extern in 2010, Appendix 14-03.

Wyoming State Engineer Greg Lanning, State Engineer, explained that the bill was brought last session and there were several amendments from the Senate Agriculture Committee. Mr. Lanning suggested an alternate, targeted approach that would be a recommendation to amend other statutes in title 41. He summarized the BLM comments that they appreciate the relationship with the state of Wyoming and think the MOUs work well, and in general, there are no issues. With respect to the legislation in other states, they have had some recent court cases, specifically about the names on the permits and beneficial use. The difference is the focus on

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 12 OF 18 the diversion, rather than the permittee, appurtenant to the land. Wyoming can have multiple applicants. Once adjudicated, however, a right is adjudicated to the underlying landowner. The application and permit are perfected and constitute its own property right. An applicant and an agency can be on the permit. Both MOUs are for a 10-year duration. The United States Forest Service (USFS) MOU with the State expires at the end of this year. The BLM MOU with the State expires at the end of next year. He commented that the bill could supplant the MOUs.

Bureau of Land Management Acting Director Liebhauser provided testimony on behalf of the BLM, Appendix 12-06. She referred to a long-standing MOU with the State Engineer’s office, due to expire in 2022, and the BLM is looking forward to working with the State to renew the MOU and address potential changes that support partnership goals.

United States Forest Service Kathryn Conant, Director for Lands and Minerals, Intermountain Region, USFS, addressed the Committee and provided written testimony, Appendix 14-05. Ms. Conant also expressed her appreciation for a good working relationship with the State of Wyoming and is looking forward to renewing the MOU that expires on December 31, 2021, Appendix 14-04. The MOU addresses more topics than stock water. At this time, she is not aware of any existing conflicts or issues with respect to stock water on National Forest Service lands. She indicated that the bill raises management questions such as whether there could be multiple permittees for the same allotment or overlapping permittees, and what would happen if a permittee moves from one allotment to another or if there is not agreement among permittees.

Public Comment Robert and Jean Harshbarger, Newcastle, Wyoming provided testimony and written comments, Appendix 14-06. They appeared in opposition to 2021 SF0135, indicating it fails to protect long-held rights. The Harshbargers contended the federal government should hold no beneficial uses as they own no animals and no wildlife other than wild horses.

Brett Moline, Wyoming Farm Bureau Federation, indicated that 2021 SF0135 does not go as far as his membership would like. They would like to see the permittee's name on the permit with the federal government's. The state of Nevada passed legislation prohibiting federal agencies from holding a water right on federal land, and no water has been developed on federal range in Nevada since that took effect.

Committee Action The Committee voted in favor of a bill draft similar to 2021 SF0135 with amendments from Appendix 14-02 suggested by the Attorney General’s office as the Committee discussed today.

PERFECTING LAND EXCHANGES WITH THE FEDERAL GOVERNMENT, CONGRESSIONAL APPROVAL PROCESS Chairman Boner introduced the topic, indicating that there are state school sections that are inaccessible due to surrounding federal land status. The idea is to exchange those 640-acre sections in favor of areas better suited for development.

Bureau of Land Management Acting Director Liebhauser explained the process of perfecting land exchanges, Appendix 12-06.

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

Duane Spencer, Deputy State Director for Minerals and Lands, BLM, answered the question about how to be successful with a land exchange. He indicated that first the parties must agree on which lands, which can be complicated by the many mineral rights. It can be a good idea to start with simple exchanges first.

United States Forest Service Ms. Conant provided an overview of the USFS land exchange process, Appendix 16-01. She responded about other states and not having completed land exchanges with other state agencies. They have a number of exchanges in various stages with private companies, such as mining companies. Stumbling blocks include hazardous materials and split minerals estates.

Office of State Lands and Investments Director Scoggin, Deputy Director Crowder, and Mr. Crapser, OSLI, presented the acquisition, disposal and exchange processes, Appendix 16-03. Mr. Crowder explained a report, "State Trust Lands in Federal Areas of Critical Environmental Concern, Wilderness Study Areas, and Wilderness Areas – Inventory and Maps," Id. at page 5. He offered to review the report again and update the numbers for the Committee. Chairman Boner asked whether it would be beneficial to have an additional position dedicated to pursuing land exchanges. The OSLI responded in the affirmative.

Public Comment Denise Langley, landowner near Thunder Basin National Grassland, described that they have had a land exchange in progress for twenty years. The landowners seeking the exchange were told that there were sixty-four steps, and they have not had enough resources to complete the steps. If the Committee or any attendees could speed up the process, they would appreciate help. There are state lands surrounded by USFS lands. She requested that if the State does exchange any lands, please first speak with the permittee, because many lessees have a use that an exchange could jeopardize or cause hardship.

Kristen Gunther, Wyoming Outdoor Council, spoke in favor of these land exchanges. She spoke in favor of providing additional resources to OSLI for the exchanges. She offered her organization as a resource for this endeavor.

Committee Action The Committee voted in favor of a bill draft to authorize one additional OSLI employee. Alternatively, they could send a letter to the Joint Appropriations Committee to use temporary funds (ARPA funds) for a temporary employee or a contract employee (AWAC position).

Directives to staff LSO staff provided a recap of all of the bill draft requests. Representative Laursen moved, and the Committee voted in favor of, drafting a Committee bill to change the interest rate in W.S. 11-34-117 from 8% to 3% above the yield of a ten-year treasury bond. Currently the rate is at 1.6%, but over the past ten years the rate has been 4 to 10%.

Additional Business Representative Eric Barlow, Speaker of the Wyoming House of Representatives, spoke regarding a potential special session and the matrix of decision points and voluminous new federal guidance. He explained that the Legislature in 2021 SF0118 already appropriated the COVID-19 relief money. He also explained that the State already received $532 million in ARPA funds, plus money for education, counties and the university.

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

Representative Robert Wharff moved that the Committee draft a bill for special session similar to 2021 SF0081 with amendments according to his handout, Appendix 17-01. The chairmen suggested that Committee sponsorship instead of personal sponsorship of the bill may add unnecessary controversy, and the bill subject matter is not under the Committee's interim topics. A vote passed to draft a bill for special session.

The next meeting is scheduled for September 9-10, 2021 in Riverton, Wyoming.

MEETING ADJOURNMENT There being no further business, Co-chairman Boner adjourned the meeting May 25, 2021 at 5:15 p.m.

Respectfully submitted,

Representative John Eklund, Co-chairman

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

Index Agenda Item Document Description Document Provider Number

1-01 Agenda LSO

1-02 Sign-In Sheet Legislative Service Office

Joint Agriculture, State and Public Lands and Call to Order and 1-03 Water Resources Interim Committee Proposed LSO Announcements Interim Rules

Authorities/Quasi- governmental Entities in 2-01 Wyoming - Industrial Revenue Bonds w/Appendix LSO Overview/History and Empirical Experiences

Authorities/Quasi- governmental Entities in 2-02 Wyoming - Background Memo SF122 LSO Overview/History and Empirical Experiences

Authorities/Quasi- governmental Entities in History of Wyoming Community Development 2-03 Wyoming - WCDA Authority Overview/History and Empirical Experiences

Authorities/Quasi- governmental Entities in 2-04 Wyoming - OSLI Presentation OSLI Overview/History and Empirical Experiences

Authorities/Quasi- governmental Entities in 2-05 Wyoming - IRB Presentation LSO Overview/History and Empirical Experiences

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

Agriculture Related Agencies and Roles - Current Organization (and 5-10 year history) and Possible Reorganization to 4-01 Memo - State Departments of Agriculture LSO Address Regulation/Consumer Protection and Support/Development of Agricultural Matters

Agriculture Related Agencies and Roles - Current Organization (and 5-10 year history) and Possible Reorganization to Wyoming Department of Agriculture Wyoming Department of 4-02 Address Information-Presentation Agriculture Regulation/Consumer Protection and Support/Development of Agricultural Matters

Agriculture Related Agencies and Roles - Current Organization (and 5-10 year history) and Possible Reorganization to Wyoming Livestock 4-03 Livestock Board Organizational Charts Address Board Regulation/Consumer Protection and Support/Development of Agricultural Matters

Agriculture Related Agencies and Roles - Current Organization (and 5-10 year history) and Possible Reorganization to Office of State Lands and Investments - May Office of State Lands & 4-04 Address 2021 Complete Report Investments Regulation/Consumer Protection and Support/Development of Agricultural Matters

Agriculture Related Agencies and Roles - Current Organization (and WBC Wyoming State Economic Development Wyoming Business 4-05 5-10 year history) and Possible Reorganization to Strategy Council Address Regulation/Consumer Protection and

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

Support/Development of Agricultural Matters

Agriculture Related Agencies and Roles - Current Organization (and 5-10 year history) and Possible Reorganization to Wyoming Business 4-06 WBC - Presentation Address Council Regulation/Consumer Protection and Support/Development of Agricultural Matters

Agency Updates, Reports, Legislative Needs (topic is Wyoming State 6-01 State Veterinarian Report scheduled for before and Veterinarian after break)

Agency Updates, Reports, UW - College of Legislative Needs (topic is UW College of Agriculture and Natural 6-02 Agriculture and Natural scheduled for before and Resources Presentation Resources after break)

Predator Management - Wyoming Department of Agriculture-Chapter 14: Wyoming Department of 10-01 Overall Concerns and Predators Agriculture Reimbursement Matters

Predator Management - Michael Foster - USDA 10-02 Overall Concerns and USDA APHIS Wildlife Services background APHIS Wildlife Services Reimbursement Matters

Trespass of Wild, Feral and 12-01 Memo - Wild, Feral and Estray Horses LSO Estray Horses

Trespass of Wild, Feral and Wyoming Stock Growers Association Wild Wyoming Stock Growers 12-02 Estray Horses Horse Background Materials Association

Trespass of Wild, Feral and Wyoming Wild Horse Improvement Partnership 12-03 WYWHIP Estray Horses Intro Packet

Trespass of Wild, Feral and 12-04 Wild Horse Management WSGA Estray Horses

Trespass of Wild, Feral and 12-05 Wild Horse Issue WSGA Estray Horses

Trespass of Wild, Feral and 12-06 BLM Testimony BLM Estray Horses

Trespass of Wild, Feral and 12-07 BLM Wildhorse HMAs Wyoming BLM Estray Horses

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

Trespass of Wild, Feral and 12-08 Feral Horse Impacts WRR - USFWS Estray Horses

Livestock Water Rights on 14-01 SF135 Water rights-livestock on federal land LSO Federal Lands

Livestock Water Rights on 14-02 SF135 Issues remaining Senator Hicks Federal Lands

Livestock Water Rights on WSGA Report on Water Permits and Rights on 14-03 Senator Hicks Federal Lands Federal Lands 10/2010

Livestock Water Rights on 14-04 USFS-SEO MOU 2016 USFS Federal Lands

Livestock Water Rights on 14-05 USFS Comments-Stockwater Rights USFS Federal Lands

Livestock Water Rights on 14-06 Public Comment-Harshbarger Public Comment Federal Lands

Perfecting Land Exchanges with the Federal 16-01 USFS Comments-Land Exchange USFS Government, Congressional Approval Process

Perfecting Land Exchanges with the Federal 16-02 BLM Testimony BLM Government, Congressional Approval Process

Perfecting Land Exchanges with the Federal 16-03 OSLI Land Transaction Processes OSLI Government, Congressional Approval Process

17-01 Day Two Adjournment SF0018 - Tracked Amendments LSO

JOINT AGRICULTURE, STATE AND PUBLIC LANDS & WATER RESOURCES COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov