House File 611
HOUSE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO HSB 289)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the development of crop biotechnology, and
2 providing for precision=use crop utilization financial
3 assistance.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 3119HV 80
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PAG LIN
1 1 Section 1. NEW SECTION. 15E.113 PRECISION=USE CROP
1 2 UTILIZATION FINANCIAL ASSISTANCE PROGRAM.
1 3 1. The department shall establish a precision=use crop
1 4 utilization financial assistance program. As used in this
1 5 section, a "precision=use crop" means a crop originating from
1 6 a genetically modified agricultural seed as defined in section
1 7 199.1, if the crop is designated to be produced for a specific
1 8 purpose other than for human consumption as food or animal
1 9 consumption as feed, as designated by the United States food
1 10 and drug administration or the United States department of
1 11 agriculture. The department shall consult with the Iowa corn
1 12 growers association and the Iowa soybean association. The
1 13 purpose of the program is to encourage the increased
1 14 production and utilization of precision=use crops, including
1 15 grain produced from such crops in this state. In awarding
1 16 financial assistance, the department shall commit resources to
1 17 assist facilities which are involved in the development of new
1 18 innovative products and processes related to the utilization
1 19 of precision=use crops. In establishing and administering the
1 20 program, the department shall consult with the Iowa corn
1 21 growers association and the Iowa soybean association.
1 22 2. A person is eligible to receive assistance under the
1 23 program if the person satisfies the following requirements:
1 24 a. The person owns an established business, including a
1 25 constructed facility or is proposing to establish a business,
1 26 including by constructing a facility. The business operation,
1 27 including the facility must be located in this state. The
1 28 business, including the facility, must do any of the
1 29 following:
1 30 (1) Produce a good derived from a precision=use crop if
1 31 the good is not commonly produced from a precision=use crop.
1 32 (2) Use a process to produce a good derived from a
1 33 precision=use crop if the process is not commonly used to
1 34 produce the good.
1 35 b. The person applies to the department in a manner and
2 1 according to procedures required by the department.
2 2 c. The person submits a business plan which demonstrates
2 3 managerial and technical expertise. The business plan must
2 4 include a marketing plan, a budget, and a statement of purpose
2 5 stating how the financial assistance will be used.
2 6 3. The department may provide financial assistance to an
2 7 eligible person upon review and evaluation of the person's
2 8 application. Financial assistance shall be in the form of a
2 9 loan, forgivable loan, loan guarantee, cost share,
2 10 indemnification of costs, or any combination of such financing
2 11 as deemed appropriate by the department. The department shall
2 12 not approve an application to refinance an existing loan.
2 13 4. The department shall approve an application for
2 14 financial assistance based on a point system which accounts
2 15 for all of the following criteria:
2 16 a. The feasibility of the existing or proposed business to
2 17 remain a viable enterprise in this state for a minimum of six
2 18 years.
2 19 b. The degree to which the business will increase the
2 20 utilization of precision=use crops produced in this state.
2 21 c. The degree to which the business requires financial
2 22 assistance from a governmental source.
2 23 d. The extent to which the existing or proposed business
2 24 is located in a rural region of the state.
2 25 e. The proportion of a local or private funding match to
2 26 be contributed to the project.
2 27 f. The level of need of the region where the existing
2 28 facility is located or the proposed facility is to be located.
2 29 g. The degree to which the facility produces a coproduct
2 30 which is marketed in the same locality where the facility is
2 31 located.
2 32 h. The quality of the jobs to be created. In rating the
2 33 quality of the jobs, the department shall award more points to
2 34 those jobs that have a higher wage scale, have a lower
2 35 turnover rate, are full=time or career=type positions, provide
3 1 comprehensive health benefits, or have other related factors
3 2 which could be considered to be higher in quality than to
3 3 other jobs. Businesses that have wage scales substantially
3 4 below that of existing Iowa businesses in that area should be
3 5 rated as providing the lowest quality of jobs and should be
3 6 given the lowest ranking for providing such assistance.
3 7 i. Whether all known required environmental permits have
3 8 been issued and regulations met.
3 9 5. The university of Iowa, Iowa state university, and the
3 10 university of northern Iowa shall cooperate in assisting
3 11 facilities receiving financial assistance under this section.
3 12 Community colleges and private universities and colleges are
3 13 not precluded from providing this assistance.
3 14 Sec. 2. NEW SECTION. 15E.114 PRECISION=USE CROP
3 15 UTILIZATION FINANCIAL ASSISTANCE FUND.
3 16 1. A precision=use crop utilization financial assistance
3 17 fund is created in the state treasury under the control of the
3 18 department.
3 19 2. The fund shall include any moneys appropriated to the
3 20 fund by the general assembly, payments of interest earned,
3 21 recaptures of awards, repayments of moneys loaned or expended
3 22 by the precision=use crop utilization financial assistance
3 23 program as provided in section 15E.113, the repossession and
3 24 sale of assets securing a loan made under the precision=use
3 25 crop utilization financial assistance program, moneys
3 26 allocated from the Iowa strategic investment fund created in
3 27 section 15.313, and any other moneys available to and obtained
3 28 or accepted by the department from the federal government or
3 29 private sources for placement in the fund.
3 30 3. Moneys in the fund are appropriated to the department
3 31 exclusively to pay the expenses of the department in
3 32 administering the precision=use crop utilization financial
3 33 assistance program as provided in section 15E.113. The moneys
3 34 shall not be transferred, used, obligated, appropriated, or
3 35 otherwise encumbered except as provided in this section and
4 1 section 15E.113.
4 2 4. In administering the fund, the department may do any of
4 3 the following:
4 4 a. Contract, sue and be sued, and adopt administrative
4 5 rules necessary to carry out the provisions of this section
4 6 and section 15E.113. However, the department shall not in any
4 7 manner directly or indirectly pledge the credit of the state.
4 8 b. Authorize payment from the fund for costs, commissions,
4 9 attorney fees, consultant fees, and other reasonable expenses,
4 10 including expenses related to carrying out duties necessary
4 11 for awarding financial assistance under precision=use crop
4 12 utilization financial assistance program, and for the recovery
4 13 of loan moneys insured or guaranteed or the management of
4 14 property acquired in connection with such loans.
4 15 5. Section 8.33 does not apply to any moneys in the fund.
4 16 Notwithstanding section 12C.7, interest earned on moneys in
4 17 the fund shall be credited to the fund.
4 18 6. The fund is subject to an annual audit by the auditor
4 19 of state. Moneys in the fund, which may be subject to
4 20 warrants written by the director of revenue and finance, shall
4 21 be drawn upon the written requisition of the director of the
4 22 department of economic development or an authorized
4 23 representative of the director.
4 24 EXPLANATION
4 25 This bill provides for the development of crop
4 26 biotechnology. The bill amends or creates a number of
4 27 provisions relating to financing businesses associated with
4 28 crop biotechnology and specifically precision=use crops. The
4 29 bill defines a precision=use crop as a grain crop originating
4 30 from genetically modified seed, if the crop is designed to be
4 31 produced for a specific purpose other than for human
4 32 consumption as food or animal consumption as feed as
4 33 designated by the federal government.
4 34 The bill creates two new Code sections providing programs
4 35 to assist businesses involved in processing precision=use
5 1 crops, and specifically grains from such crops. The bill also
5 2 establishes a fund to support the program but does not provide
5 3 for a specific appropriation. The program is administered by
5 4 the department of economic development and the program and
5 5 fund are based on the value=added agricultural products and
5 6 processes financial assistance program (VAPPFAP) and its
5 7 related fund created in Code sections 15E.111 and 15E.112.
5 8 The purpose of the program is to assist businesses involved
5 9 in the production of goods derived from a precision=use crop
5 10 if the good is not commonly produced from a precision=use
5 11 crop, or uses a process to produce a good derived from a
5 12 precision=use crop if the process is not commonly used to
5 13 produce the good. The bill provides for procedures required
5 14 to consider and approve applications for assistance. The bill
5 15 provides a list of criteria that the department must consider
5 16 when considering an application which relates to the viability
5 17 of the business to process precision=use crops, its potential
5 18 to increase local revenue, the quality of jobs to be created,
5 19 and its environmental impact.
5 20 LSB 3119HV 80
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