Exercising Vigilance Over State Laws Important Role of State Councils
There has been a lively debate in
recent years regarding what types of governmental programs are best carried out
by state government, and which are best left to the federal government. This
debate directly impacts some cooperative operations.
In the state of Iowa, for example,
the ongoing hog-price crisis resulted in the introduction of legislation that
would force cooperatives to pay equity to member owners on demand. States in the
Northeast and Southeast regions have debated and, in some cases, established
compacts that set prices for fluid milk. There has been a heated debate in
Colorado over requiring installation of covers over lagoons that store waste
from large-scale hog farms, some of which are owned by cooperatives.
Farm supply cooperatives that handle
anhydrous ammonia have been challenged to protect storage tanks that have been
subject to thefts by drug dealers. The Missouri legislature recently considered
legislation that would provide funds for grants and other assistance to aid
development of new value-added cooperatives.
The list goes on, but all these
examples make an important point: legislative bodies - at both the state and
federal levels - are constantly weighing proposals that directly affect the
day-to-day operations of cooperative-owned businesses at the local, regional and
national levels. In response, cooperatives have to use their associations and
allied groups to fend for themselves in promoting constructive laws and
regulations and prohibiting harmful ones.
At the state level, this role has
historically been filled by statewide cooperative councils, institutes or
associations. They are a mouthpiece for all co-ops in their state and perform an
important leadership role in coalescing cooperative positions on various
legislative and administrative issues. They are also instrumental in supporting
university and high school programs in education about cooperatives.
While regional cooperatives play a
similarly important role in dealing with state legislatures, they often do not
capture the local cooperative's positions on critical issues in the
representation process. For this reason, state councils must be supported by
local cooperatives so they remain vigilant on issues affecting their well-being.
In an era of considerable structural
change, cooperative leaders cannot afford to overlook the continuing role and
importance of having a strong mouthpiece at the state level to deal with issues
important to their survival and prosperity.
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