House File 597 - Introduced



                                       HOUSE FILE       
                                       BY  ZIRKELBACH, FOEGE, KUHN,
                                           THOMAS, and WENDT


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to economic development assistance to facilities
  2    involved in aquaculture.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2910HH 81
  5 da/pj/5

PAG LIN



  1  1    Section 1.  Section 15E.111, subsection 1, unnumbered
  1  2 paragraph 1, Code 2005, is amended to read as follows:
  1  3    The department shall establish a value=added agricultural
  1  4 products and processes financial assistance program.  The
  1  5 department shall consult with the Iowa corn growers
  1  6 association and the Iowa soybean association as appropriate.
  1  7 The purpose of the program is to encourage the increased
  1  8 utilization of agricultural commodities produced in this
  1  9 state.  The program shall assist in efforts to revitalize
  1 10 rural regions of this state, by committing resources to
  1 11 provide financial assistance to new or existing value=added
  1 12 production facilities.  In awarding financial assistance, the
  1 13 department shall commit resources to assist the following:
  1 14    Sec. 2.  Section 15E.111, subsection 1, Code 2005, is
  1 15 amended by adding the following new paragraph:
  1 16    NEW PARAGRAPH.  c.  Production facilities involved in
  1 17 aquaculture, as defined in section 481A.1, if all of the
  1 18 following apply to a specific production facility:
  1 19    (1)  The production facility is a business which is
  1 20 associated with a cooperative association as defined in
  1 21 section 10B.1 or a limited liability company as defined in
  1 22 section 490A.102, and the cooperative association or limited
  1 23 liability company is engaged in the processing and marketing
  1 24 of agricultural commodities or agricultural products.
  1 25    (2)  The production facility is located in an indoor,
  1 26 controlled environment which is capable of operating during
  1 27 all months of the year.
  1 28    (3)  The production facility complies with production
  1 29 standards which are established by the cooperative association
  1 30 or the limited liability company.
  1 31    Sec. 3.  Section 15E.111, subsection 3, Code 2005, is
  1 32 amended to read as follows:
  1 33    3.  a.  The Except as provided in paragraph "b", the
  1 34 department of economic development shall grant financial
  1 35 assistance to a person determined by the department to be
  2  1 eligible to receive assistance under this section, upon review
  2  2 and evaluation of the person's application by the agricultural
  2  3 products advisory council as established in section 15.203.
  2  4 The department shall consider the council's evaluation in
  2  5 granting or denying assistance.  The department shall not
  2  6 approve an application for assistance under this section to
  2  7 refinance an existing loan.  The Except as provided in
  2  8 paragraph "b", the department shall not directly award
  2  9 financial assistance to support an activity directly related
  2 10 to farming as defined in section 9H.1, including the
  2 11 establishment or operation of a livestock production
  2 12 operation, regardless of whether the activity is related to a
  2 13 renewable fuel production facility.
  2 14    b.  This subsection shall not apply to a production
  2 15 facility involved in aquaculture.
  2 16    Sec. 4.  Section 15E.111, Code 2005, is amended by adding
  2 17 the following new subsection:
  2 18    NEW SUBSECTION.  3A.  The department shall not approve an
  2 19 application for assistance under this section to refinance an
  2 20 existing loan.
  2 21                           EXPLANATION
  2 22    This bill amends provisions in Code section 15E.111
  2 23 establishing a value=added agricultural products and processes
  2 24 financial assistance program within the department of economic
  2 25 development.  The purpose of the program is to encourage the
  2 26 increased utilization of agricultural commodities produced in
  2 27 this state.  The program is supported by a value=added
  2 28 agricultural products and processes financial assistance fund.
  2 29 The program targets facilities which are involved in the
  2 30 development of new innovative products and processes related
  2 31 to agriculture and renewable fuel production facilities.
  2 32    The bill provides that program funding may also be used to
  2 33 assist a facility involved in aquaculture if the facility is a
  2 34 business which is associated with a cooperative association or
  2 35 limited liability company engaged in the processing and
  3  1 marketing of agricultural commodities or agricultural
  3  2 products.  The facility must be located in an indoor,
  3  3 controlled environment which is capable of operating during
  3  4 all months of the year.  Finally, the production facility must
  3  5 comply with production standards which are established by the
  3  6 cooperative association or the limited liability company.
  3  7    The bill amends provisions in the Code section which
  3  8 require participation by the agricultural products advisory
  3  9 council and which prohibits financial assistance to be awarded
  3 10 to farming operations.  The bill provides that those
  3 11 provisions do not apply to a production facility involved in
  3 12 aquaculture.
  3 13 LSB 2910HH 81
  3 14 da:rj/pj/5