Senate File 2360 - Introduced SENATE FILE 2360 BY HECKROTH A BILL FOR An Act providing for a local food, farms, and jobs initiative, 1 providing for the powers and duties of a board, providing 2 for a fund, authorizing the establishment and collection of 3 fees, providing for the purchase of local foods by state 4 entities, and providing for appropriations. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5191XS (4) 83 da/sc

S.F. 2360 DIVISION I 1 LOCAL FOOD, FARMS, AND JOBS BOARD 2 Section 1. NEW SECTION . 159B.1 Short title. 3 This Act may be cited as the “Local Food, Farms, and Jobs 4 Act” . 5 Sec. 2. NEW SECTION . 159B.2 Definitions. 6 1. “Board” means the local food, farms, and jobs board 7 created in section 159B.3. 8 2. “Department” means the department of agriculture and land 9 stewardship. 10 3. “Local farm or food products” means raw food or processed 11 products originating from raw food, if such raw food is grown 12 by Iowa residents or businesses located wholly within the 13 borders of this state. 14 4. “Fund” means the local food, farms, and jobs fund created 15 in section 159B.9. 16 5. “Governmental subdivision” means the same as defined in 17 section 8A.101. 18 6. “State agency” means the same as defined in section 19 8A.101. 20 Sec. 3. NEW SECTION . 159B.3 Local food, farms, and jobs 21 board —— creation and membership. 22 1. A local food, farms, and jobs board is created. 23 2. The local food, farms, and jobs board is comprised of the 24 following members: 25 a. The heads or the designees of the following departments: 26 (1) The department of agriculture and land stewardship. 27 (2) The department of economic development. 28 (3) The department of education. 29 (4) The department of human services. 30 (5) The Iowa department of public health. 31 b. The following individuals appointed by the governor: 32 (1) Four individuals actively engaged in producing milk, 33 meat, vegetables, or grain in this state. 34 (2) Four individuals actively engaged in producing flowers, 35 -1- LSB 5191XS (4) 83 da/sc 1/ 10

S.F. 2360 fruit, fish, trees, sod, seeds, fiber, vegetables, ornamental 1 plants, or other specialty crops for sale at wholesale or 2 retail. 3 (3) Two individuals engaged in processing raw food produced 4 in this state. 5 (4) Two individuals engaged in distributing local farm or 6 food products. 7 (5) Three individuals who are associated with 8 not-for-profit educational organizations that specialize in 9 supporting and expanding local farm or food product networks. 10 (6) An individual actively engaged in organic food 11 production. 12 (7) An individual representing farm or food product 13 consumers. 14 (8) Two individuals each of whom is a member of a general 15 farm organization in this state. 16 (9) An individual actively engaged in selling local farm or 17 food products on a retail basis. 18 (10) Two individuals who are members of a governmental 19 subdivision that actively encourages the development of markets 20 for local farm or food products. 21 (11) Four individuals who are associated with 22 community-based organizations focusing on access to local farm 23 or food products. 24 (12) One chef who specializes in the preparation of local 25 farm or food products for human consumption. 26 3. Members appointed by the governor are subject to 27 confirmation by the senate and shall serve four-year staggered 28 terms as designated by the governor. Members appointed by the 29 governor are subject to the requirements of sections 69.16, 30 69.16A, 69.16C, and 69.19. 31 4. The governor may consider the appointment of individuals 32 based on nominations submitted by interested organizations as 33 designated by the governor. 34 5. A member is eligible for reappointment to the board. 35 -2- LSB 5191XS (4) 83 da/sc 2/ 10

S.F. 2360 6. Vacancies shall be filled in the same manner as original 1 appointments. A vacancy shall be filled for the balance of the 2 unexpired term. 3 Sec. 4. NEW SECTION . 159B.4 Local food, farms, and jobs 4 board —— procedures and payment. 5 1. The local food, farms, and jobs board shall elect a 6 chairperson from among its members each year on a rotating 7 basis as provided by the board. The board shall meet on a 8 regular basis and at the call of the chairperson or upon the 9 written request to the chairperson of ten or more members. 10 2. A majority of the members of the local food, farms, 11 and jobs board constitute a quorum and the affirmative vote 12 of a majority of the members present is necessary for any 13 substantive action to be taken by the board. The majority 14 shall not include any member who has a conflict of interest, 15 and a statement by a member that the member has a conflict of 16 interest is conclusive for this purpose. A vacancy in the 17 membership does not impair the duties of the board. 18 3. Members appointed by the governor shall be reimbursed for 19 actual and necessary expenses incurred in performance of their 20 duties. Such members are also eligible to receive compensation 21 as provided in section 7E.6. 22 Sec. 5. NEW SECTION . 159B.5 Local food, farms, and jobs 23 board —— mission. 24 The local food, farms, and jobs board shall facilitate the 25 growth of an Iowa-based local farm and food product economy 26 that revitalizes rural and urban communities, promotes healthy 27 eating with access to fresh foods, creates jobs, ensures a 28 readily available supply of safe food in an emergency event, 29 and supports economic growth through making local farm or food 30 products available to all Iowa residents. 31 Sec. 6. NEW SECTION . 159B.6 Local food, farms, and jobs 32 board —— goals. 33 1. In order to create, strengthen, and expand local farm 34 and food economies throughout Iowa, it is the goal of this 35 -3- LSB 5191XS (4) 83 da/sc 3/ 10

S.F. 2360 state that by 2020 at least twenty percent of all food and food 1 products purchased by state agencies shall be local farm or 2 food products. 3 2. The local food, farms, and jobs board shall work to 4 ensure that by 2020 at least ten percent of all food and food 5 products purchased by entities funded in whole or in part by 6 state moneys, and which spend more than twenty-five dollars 7 per year on food or food products, shall be local farm or food 8 products. 9 Sec. 7. NEW SECTION . 159B.7 Local food, farms, and jobs 10 board —— general powers. 11 The local food, farms, and jobs board has all the powers 12 necessary to carry out its mission as provided in section 13 159B.5 and accomplish its goals as provided in section 159B.6, 14 including all of the following: 15 1. To sue and be sued in its own name. 16 2. To make and execute agreements, contracts, and other 17 instruments, with any public or private entity, including 18 but not limited to any federal governmental agency or 19 instrumentality. All governmental subdivisions and other state 20 agencies may enter into contracts and otherwise cooperate with 21 the board. 22 3. To establish and collect fees for its services. 23 4. a. To accept appropriations, gifts, grants, loans, or 24 other aid from public or private entities. A record of all 25 gifts or grants, stating the type, amount, and donor, shall be 26 clearly set out in the board’s annual report along with the 27 record of other receipts. 28 b. The board shall not pledge the faith or credit of the 29 state. No debt or obligation of board shall become the debt or 30 obligation of the state. 31 5. To provide technical assistance and counseling to state 32 agencies and governmental subdivisions. 33 6. To conduct studies and make recommendations including 34 legislative proposals to the general assembly. 35 -4- LSB 5191XS (4) 83 da/sc 4/ 10

S.F. 2360 7. a. Subject to the availability of moneys, to employ an 1 executive director or other staff and to contract with persons 2 as necessary. 3 b. The heads of departments who serve as members on the 4 board or who appoint designees to serve as members on the board 5 may redirect existing full-time equivalent positions to serve 6 as staff to the board. The department shall provide office 7 space, meeting space, and other research and communication 8 services as appropriate. 9 8. To adopt rules consistent with the provisions of this 10 chapter and subject to chapter 17A. 11 Sec. 8. NEW SECTION . 159B.8 Local food, farms, and jobs 12 board —— duties. 13 The local food, farms, and jobs board shall do all of the 14 following: 15 1. Assist state agencies with the purchase of local farm or 16 food products and with tracking and reporting such purchases in 17 order to carry out its mission as provided in section 159B.5 18 and accomplish its goals as provided in section 159B.6. 19 2. Assist local farm and food entrepreneurs to identify 20 and secure necessary resources and equipment to begin, 21 maintain, and expand projects and networks necessary for the 22 development of local farm or food products. However, the board 23 may facilitate program start-ups and then relinquish rights, 24 benefits, and control within a reasonably short period of time. 25 3. Facilitate the building of infrastructure, including 26 aggregation, processing, storage, packaging, and distribution 27 facilities necessary to move local farm or food products to 28 local and other markets. 29 4. Support and expand programs that recruit, train, and 30 provide technical assistance to Iowa farmers and residents in 31 order to encourage the production and consumption of local farm 32 or food products. 33 5. Coordinate interagency policies, initiatives, and 34 procedures to promote local farm and food products in Iowa 35 -5- LSB 5191XS (4) 83 da/sc 5/ 10

S.F. 2360 communities, by cooperating with state agencies, governmental 1 subdivisions, federal agencies, community-based organizations, 2 educational institutions, and trade organizations. 3 6. Facilitate the elimination of legal barriers hindering 4 the development of a local farm and food economy by cooperating 5 with state agencies, including the attorney general, 6 governmental subdivisions, and federal agencies. The board 7 shall work to create consistent and compatible regulations for 8 the production, storage, distribution, and marketing of local 9 farm or food products. 10 7. Facilitate the use of public lands for growing local 11 farm or food products by cooperating with state agencies, 12 governmental subdivisions, and federal agencies. 13 8. Provide technical assistance and counseling to state 14 agencies and governmental subdivisions. 15 9. Conduct studies and make recommendations including 16 legislative proposals to the general assembly. 17 10. Establish annual goals for all purchases of local farm 18 or food products and monitor the development and expansion of a 19 local farm and food economy through data collection, tracking, 20 measurement, and analysis. The board shall prepare and submit 21 a report to the general assembly on or before January 10 of 22 each year. The report shall describe the board’s progress in 23 carrying out its mission as provided in section 159B.5 and 24 accomplishing its goals as provided in section 159B.6. 25 11. Develop, in collaboration with the department, a label 26 and certification program for identifying local farm and food 27 products. 28 12. Develop, in cooperation with state agencies, a system 29 for doing all of the following: 30 a. Establishing a base year by identifying the percentage 31 of local farm or food products purchased for the fiscal year 32 beginning July 1, 2012, and ending June 30, 2013. 33 b. Tracking and reporting local farm or food products 34 purchases on a fiscal year basis. 35 -6- LSB 5191XS (4) 83 da/sc 6/ 10

S.F. 2360 13. Initiate and facilitate public awareness campaigns 1 about the economic benefits of a local farm and food economy. 2 Sec. 9. NEW SECTION . 159B.9 Local food, farms, and jobs 3 fund. 4 A local food, farms, and jobs fund is created in the state 5 treasury under the control of the local food, farms, and jobs 6 board. 7 1. The fund is separate from the general fund of the state. 8 2. The fund is composed of all of the following: 9 a. Moneys appropriated by the general assembly. 10 b. Fees collected by the board pursuant to section 159B.7, 11 subsection 3. 12 c. The recapture of awards or penalties, or other repayments 13 of moneys originating from the fund. 14 d. Moneys available to and obtained or accepted by the 15 board from the United States government or private sources for 16 placement in the fund pursuant to section 159B.7, subsection 4. 17 3. Moneys in the fund are appropriated to the department 18 exclusively to support the local food, farms, and jobs board 19 in carrying out its mission as provided in section 159B.5 and 20 accomplishing its goals as provided in section 159B.6. 21 4. a. Notwithstanding section 12C.7, interest or earnings 22 on moneys in the local food, farms, and jobs fund shall be 23 credited to the fund. 24 b. Notwithstanding section 8.33, unencumbered and 25 unobligated moneys remaining in the fund at the close of each 26 fiscal year shall not revert but shall remain available in the 27 fund for expenditure for the same purposes. 28 DIVISION II 29 PURCHASING OF LOCAL FARM OR FOOD PRODUCTS 30 BY STATE AGENCIES 31 Sec. 10. Section 8A.311, subsection 14, Code 2009, is 32 amended by adding the following new paragraph: 33 NEW PARAGRAPH . d. The purchasing of local farm or food 34 products in accordance with the requirements of section 8A.318. 35 -7- LSB 5191XS (4) 83 da/sc 7/ 10

S.F. 2360 Sec. 11. NEW SECTION . 8A.318 Procurement —— local farm or 1 food products. 2 1. As used in this section, unless the context otherwise 3 requires, “local farm or food products” means the same as 4 defined in section 159B.2. 5 2. The department shall establish a program for the purchase 6 of local farm or food products. The preference program shall 7 include but is not limited to all of the following: 8 a. The inclusion of program information in publications used 9 to solicit bids from suppliers. 10 b. A description of the preference program at bidders’ 11 conferences. 12 c. Discussion of the preference program in requests for 13 proposals or invitations to bid. 14 d. Efforts to inform industry trade associations about the 15 preference program. 16 3. When purchasing farm or food products, the department 17 shall not purchase a local farm or food product that is more 18 than ten percent greater in price than a farm or food product 19 that the department would purchase absent the preference 20 program. 21 Sec. 12. Section 216B.3, Code Supplement 2009, is amended by 22 adding the following new subsection: 23 NEW SUBSECTION . 18A. Give preference to purchasing local 24 farm or food products in accordance with the requirements of 25 section 8A.318. 26 Sec. 13. NEW SECTION . 260C.19D Purchase of local farm or 27 food products. 28 The board of directors of a merged area shall give preference 29 to purchasing local farm or food products in accordance with 30 the requirements of section 8A.318. 31 Sec. 14. NEW SECTION . 262.25D Purchase of local farm or 32 food products. 33 The state board of regents and institutions under the 34 control of the board shall give preference to purchasing local 35 -8- LSB 5191XS (4) 83 da/sc 8/ 10

S.F. 2360 farm or food products in accordance with the requirements of 1 section 8A.318. 2 Sec. 15. Section 307.21, subsection 2, Code Supplement 3 2009, is amended by adding the following new paragraph: 4 NEW PARAGRAPH . f. Give preference to purchasing local farm 5 or food products in accordance with the requirements of section 6 8A.318. 7 Sec. 16. NEW SECTION . 904.312D Purchase of local farm or 8 food products. 9 The department shall give preference to purchasing local 10 farm or food products in accordance with the requirements of 11 section 8A.318. 12 EXPLANATION 13 DIVISION I. This bill provides for the promotion of local 14 food, farms, and food products, which include raw food or 15 processed products originating from raw food, if such raw food 16 is grown by Iowa residents or businesses located wholly within 17 the borders of this state. 18 CREATION OF A BOARD. The bill creates a local food, farms, 19 and jobs board composed of the heads or designees of a number 20 of state agencies, and persons appointed by the governor who 21 are interested or experienced in producing, distributing, 22 selling, or consuming locally grown food or related products. 23 The bill provides procedures for the management of the board 24 and provides for the payment of expenses and compensation. 25 Office and meeting space and research and communication 26 services are to be provided by the department of agriculture 27 and land stewardship. 28 BOARD’S MISSION. The board’s mission is to facilitate the 29 growth of an Iowa-based local farm and food product economy 30 that revitalizes rural and urban communities, promotes healthy 31 eating with access to fresh foods, creates jobs, ensures a 32 readily available supply of safe food in an emergency event, 33 and supports economic growth. 34 STATE GOAL. The bill provides that the goal of the state 35 -9- LSB 5191XS (4) 83 da/sc 9/ 10

S.F. 2360 is that by 2020, at least 20 percent of all food and food 1 products purchased by state agencies and at least 10 percent 2 of such purchases made by persons receiving substantial state 3 financing, be local farm or food products. 4 BOARD’S POWERS AND DUTIES. The bill provides for the board’s 5 powers and duties, including being able to sue or be sued, make 6 contracts, establish and collect fees, accept moneys, employ an 7 executive director and provide for other staffing, and adopt 8 rules. The board is required to assist state agencies with the 9 purchase of local farm or food products, assist local farm and 10 food entrepreneurs, facilitate the building of infrastructure, 11 support technical assistance programs, coordinate interagency 12 policies to promote local farm and food products, facilitate 13 the elimination of legal barriers hindering the development of 14 a local farm and food economy, facilitate the use of public 15 lands for growing local farm or food products, establish 16 annual goals for purchases of local farm or food products, 17 submit an annual report to the general assembly, develop, in 18 collaboration with the department, a label and certification 19 program, and initiate public awareness campaigns. 20 FUND. The bill creates a local food, farms, and jobs fund 21 in the state treasury under the control of the board. The 22 board may accept moneys for placement in the fund, including 23 fees established in the bill. The moneys in the fund are 24 appropriated to the board to carry out its mission and 25 accomplish the state goals. 26 DIVISION II —— PURCHASING LOCAL FARM OR FOOD PRODUCTS BY 27 STATE AGENCIES. The bill requires state agencies to give 28 preference to purchasing local farm or food products. The bill 29 specifically affects governmental entities having procurement 30 authority including the department of administrative services, 31 the department for the blind, community colleges, state board 32 of regents institutions, the department of transportation, and 33 the department of corrections. 34 -10- LSB 5191XS (4) 83 da/sc 10/ 10