Testimony of Roger Johnson
House Bill 1352
January 22, 2003
9:00 a.m.
House Judiciary Committee
Prairie Room

Chairman DeKrey and members of the committee. My name is Roger Johnson, ND Commissioner of Agriculture. I am here to testify in opposition of HB 1352 dealing with administrative rule making for locking of anhydrous ammonia nurse tanks.

First of all, the tanks referred to in this bill should be referred to as "nurse tanks" and not "nursing tanks". Section 1 of this bill gives rule making authority for chapter 19-20.2 to the Insurance Commissioner. Section 19-20.2-01 already gives this authority to the Agriculture Commissioner. Having two agencies with rule making authority over one chapter of the Century Code will lead to confusion with the constituents that are regulated under this chapter. Under the current statute, the Insurance Department is charged with the inspection of anhydrous ammonia facilities and equipment while the Agriculture Department is charged with enforcing the chapter.

Section 2 of the bill deals with immunity for theft of anhydrous ammonia. This section states that an owner of anhydrous ammonia must have a locking system in place to be immune from civil liability but does not state who has the responsibility to obtain and maintain locks on the nurse tanks. The financial impact this will have on farmers will be significant. Locking mechanisms range in price from $80 to $300 per tank, the cost of which will likely be passed to the end user (see attached pictures). The Insurance Department estimates about 10,000 nurse tanks in the state (6,500 dealers and 3,500 private). This could amount to a cost of $1 to $3 million dollars of investment that neither farmers nor anhydrous ammonia dealers can afford and does not include the maintenance nor replacement costs of these locks.

These locks will not guarantee the security of the product. Most locks will not allow the tank to be transported without removal because of causing further damage to the tank and its valves. Locking mechanisms can also be unintentionally detrimental to the end user of the tank. If a leak were to develop while being transported or parked, unlocking the lock and shutting off the valve could prove to be cumbersome and dangerous.

Enforcement of this bill will be very cumbersome as the Agriculture Department does not have enough staff to fulfill the legal requirements of this bill. N.D.C.C. 19-20.2-09 states that the Commissioner of Agriculture shall enforce the requirements of this chapter and any rules (whether by the Agriculture Department or the Insurance Department) issued under it. N.D.C.C. 19-20.2-07 instructs the Commissioner of Insurance to cooperate with the Commissioner of Agriculture to develop and implement the inspection program (Insurance) and enforcement program (Agriculture).

I believe that methamphetamines are a very large problem in North Dakota and something needs to be done to stop the increasing use of this drug. However, farmers and agricultural suppliers should not be burdened by exorbitant costs for a less than perfect remedy that will not prevent further theft. My office is more than willing to work with other agencies to coordinate efforts to address this subject. As of today, my office has not been consulted or asked to participate in any of these discussions.

Thank you for the opportunity to testify. I would be happy to answer any questions?