House
File
2433
-
Introduced
HOUSE
FILE
2433
BY
COMMITTEE
ON
AGRICULTURE
(SUCCESSOR
TO
HF
2308)
A
BILL
FOR
An
Act
establishing
a
dairy
processing
and
milk
production
1
innovation
and
revitalization
fund
and
program
to
be
2
administered
by
the
economic
development
authority,
in
3
consultation
with
the
department
of
agriculture
and
land
4
stewardship,
and
creating
a
task
force
to
explore
the
5
feasibility
of
establishing
an
artisanal
dairy
processing
6
program
at
a
community
college
or
at
an
institution
governed
7
by
the
state
board
of
regents.
8
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9
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Section
1.
NEW
SECTION
.
15E.371
Dairy
processing
and
milk
1
production
innovation
and
revitalization
fund
and
program.
2
1.
As
used
in
this
section
unless
the
context
otherwise
3
requires:
4
a.
“Department”
means
the
department
of
agriculture
and
land
5
stewardship.
6
b.
“Financial
assistance”
means
assistance
provided
only
7
from
the
funds
and
assets
legally
available
to
the
authority
8
pursuant
to
this
section
and
includes
assistance
in
the
form
of
9
grants,
low-interest
loans,
and
forgivable
loans.
10
c.
“Fund”
means
the
dairy
processing
and
milk
production
11
innovation
and
revitalization
fund.
12
d.
“Located
in”
means
the
place
or
places
at
which
13
a
business’s
operations
are
located
and
where
at
least
14
ninety-eight
percent
of
the
business’s
employees
work,
or
where
15
employees
that
are
paid
at
least
ninety-eight
percent
of
the
16
business’s
payroll
work.
17
e.
“Program”
means
the
dairy
processing
and
milk
production
18
innovation
and
revitalization
program.
19
2.
a.
The
fund
is
created
in
the
state
treasury
under
20
the
control
of
the
authority
and
consists
of
any
moneys
21
appropriated
to
the
fund
by
the
general
assembly
and
any
22
other
moneys
available
to
or
obtained
or
accepted
by
the
23
authority
for
placement
in
the
fund.
Moneys
in
the
fund
are
24
appropriated
to
the
authority
to
award
financial
assistance
as
25
provided
under
the
program.
The
authority
shall
use
any
moneys
26
specifically
appropriated
for
purposes
of
this
section
only
for
27
the
purposes
of
the
program.
28
b.
Notwithstanding
section
8.33,
moneys
in
the
fund
29
that
remain
unencumbered
or
unobligated
at
the
close
of
the
30
fiscal
year
shall
not
revert
but
shall
remain
available
for
31
expenditure
for
the
purposes
designated
until
the
close
of
the
32
succeeding
fiscal
year.
33
3.
The
authority,
in
consultation
with
the
department,
34
shall
establish
and
administer
the
program
for
the
purpose
of
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awarding
financial
assistance
to
eligible
businesses
engaged
in
1
projects
that
do
any
of
the
following:
2
a.
Expand
or
refurbish
existing
milk
plants
or
establish
a
3
new
milk
plant,
operating
pursuant
to
a
permit
issued
pursuant
4
to
section
192.111.
5
b.
Expand
or
refurbish
existing
mobile
dairy
processing
6
units,
or
establish
new
mobile
dairy
processing
units.
7
c.
Rent
building,
refrigeration
facilities,
freezer
8
facilities,
or
equipment
necessary
to
expand
dairy
processing
9
capacity,
including
mobile
dairy
or
refrigeration
units
used
10
exclusively
for
dairy
processing.
11
d.
Incorporate
methods
and
technologies
that
reduce
farm
12
labor
associated
with
milk
production
and
storage,
including
13
but
not
limited
to
the
use
of
robotics
and
processes
or
systems
14
that
operate
using
computerized
equipment
or
machinery.
15
4.
The
authority,
in
consultation
with
the
department,
16
shall
establish
eligibility
criteria
for
the
program
by
rule.
17
The
eligibility
criteria
must
include
all
of
the
following:
18
a.
The
business
must
be
located
in
this
state.
19
b.
The
business
must
not
have
been
subject
to
any
regulatory
20
enforcement
action
related
to
federal,
state,
or
local
21
environmental,
worker
safety,
food
processing,
or
food
safety
22
laws,
rules,
or
regulations
within
the
last
five
years.
23
c.
The
business
must
only
employ
individuals
legally
24
authorized
to
work
in
this
state.
25
d.
The
business
must
not
currently
be
in
bankruptcy.
26
e.
The
business
must
employ
less
than
fifty
individuals.
27
5.
A
business
seeking
financial
assistance
under
this
28
section
shall
make
application
to
the
authority
in
the
manner
29
prescribed
by
the
authority
by
rule.
30
6.
Applications
shall
be
accepted
during
one
or
more
31
annual
application
periods
to
be
determined
by
the
authority
32
by
rule.
Upon
reviewing
and
scoring
all
applications
that
are
33
received
during
an
application
period,
and
subject
to
funding,
34
the
authority
may,
in
consultation
with
the
department,
award
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financial
assistance
to
eligible
businesses.
A
financial
1
assistance
award
shall
not
exceed
the
amount
of
eligible
2
project
costs
included
in
the
eligible
business’s
application.
3
Priority
shall
be
given
to
eligible
businesses
whose
proposed
4
project
under
subsection
3
will
do
any
of
the
following:
5
a.
Create
new
dairy
processing
jobs.
6
b.
Create
or
expand
opportunities
for
local
small-scale
milk
7
producers
to
market
pasteurized
milk
and
milk
products
under
8
private
labels.
9
c.
Provide
greater
flexibility
or
convenience
for
local
10
small-scale
farmers
to
have
milk
processed.
11
d.
Reduce
labor
associated
with
the
on-farm
production
and
12
storage
of
milk.
13
7.
A
business
that
is
awarded
financial
assistance
under
14
this
section
may
apply
for
financial
assistance
under
other
15
programs
administered
by
the
authority.
16
8.
The
authority
may
use
not
more
than
five
percent
of
17
the
moneys
in
the
fund
at
the
beginning
of
each
fiscal
year
18
for
purposes
of
administrative
costs,
marketing,
technical
19
assistance,
and
other
program
support.
20
9.
The
authority
shall,
in
consultation
with
the
21
department,
adopt
rules
pursuant
to
chapter
17A
to
administer
22
this
section.
23
Sec.
2.
TASK
FORCE
——
ARTISANAL
DAIRY
PROCESSING
PROGRAM.
24
1.
The
artisanal
dairy
processing
program
task
force
25
is
created
within
the
department
of
agriculture
and
land
26
stewardship
for
the
purpose
of
exploring
the
feasibility
27
of
establishing
an
artisanal
dairy
processing
program
at
a
28
community
college
or
at
an
institution
governed
by
the
state
29
board
of
regents.
30
2.
Members
of
the
task
force
shall
include
all
of
the
31
following:
32
a.
The
secretary
of
agriculture
or
a
designee
of
the
33
secretary,
who
shall
serve
as
chairperson.
34
b.
One
member
appointed
by
the
president
of
northeast
Iowa
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community
college.
The
member
must
be
experienced
in
dairy
1
science
or
the
dairy
business.
2
c.
Two
members
appointed
by
the
president
of
Iowa
state
3
university
of
science
and
technology.
The
members
must
be
4
knowledgable
about
dairy
science
or
the
dairy
business.
One
of
5
the
members
must
be
associated
with
the
university’s
extension
6
and
outreach
programs.
7
d.
One
member
of
the
economic
development
authority
8
appointed
by
the
director
of
the
authority.
The
member
must
be
9
knowledgable
regarding
state
finance
programs.
10
e.
Two
members
appointed
by
the
executive
director
of
the
11
Iowa
state
dairy
association.
The
members
must
be
actively
12
engaged
in
milk
production.
13
f.
Two
members
appointed
by
the
secretary
of
agriculture.
14
The
members
must
own
or
operate
a
milk
plant.
One
of
the
15
members
must
own
or
operate
a
small-to-medium-scale
milk
plant.
16
3.
The
members
shall
not
be
entitled
to
a
per
diem
as
17
specified
in
section
7E.6.
Members
shall
not
be
entitled
to
18
actual
and
necessary
expenses
incurred
while
engaged
in
their
19
official
duties.
20
4.
The
department
of
agriculture
and
land
stewardship
shall
21
provide
the
task
force
with
staff
and
administrative
support.
22
5.
The
task
force
shall
consider
staffing
and
equipment
23
requirements,
potential
enrollment
numbers,
overall
employment
24
outlook
for
graduates,
apprenticeship
and
internship
25
opportunities,
program
costs,
curriculum,
and
regulatory
and
26
legal
requirements.
27
6.
The
task
force
shall
submit
a
report
by
December
31,
28
2022,
to
the
general
assembly
that
includes
the
task
force’s
29
findings
and
recommendations.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
establishes
a
dairy
processing
and
milk
production
34
innovation
and
revitalization
fund
(fund)
and
program
(program)
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2433
to
be
administered
by
the
economic
development
authority
1
(authority),
in
consultation
with
the
department
of
agriculture
2
and
land
stewardship
(department),
and
creates
a
task
force
3
to
explore
the
feasibility
of
establishing
an
artisanal
dairy
4
processing
program
at
a
community
college
or
at
an
institution
5
governed
by
the
state
board
of
regents.
6
The
bill
creates
the
fund
in
the
state
treasury
under
7
the
control
of
the
authority,
which
consists
of
any
moneys
8
appropriated
to
the
fund
by
the
general
assembly
and
any
other
9
moneys
available
to
the
authority
for
placement
in
the
fund.
10
Moneys
in
the
fund
are
appropriated
to
provide
financial
11
assistance
(assistance)
as
provided
under
the
program.
12
“Financial
assistance”
is
defined
to
include
assistance
in
the
13
form
of
grants,
low-interest
loans,
and
forgivable
loans.
14
The
authority
must
use
any
moneys
specifically
appropriated
15
to
the
program
only
for
purposes
of
supporting
the
program.
16
The
appropriated
moneys
that
remain
unencumbered
or
unobligated
17
at
the
close
of
the
fiscal
year
do
not
revert
but
remain
18
available
for
expenditure
for
the
program
until
the
close
of
19
the
succeeding
fiscal
year.
Not
more
than
5
percent
of
moneys
20
in
the
fund
at
the
beginning
of
the
fiscal
year
can
be
used
for
21
program
support.
22
The
authority,
in
consultation
with
the
department,
must
23
establish
and
administer
the
program
for
the
purpose
of
24
awarding
assistance
to
eligible
businesses
for
projects
that
25
expand
or
refurbish
an
existing,
or
establish
a
new,
milk
26
plant;
expand
or
refurbish
an
existing,
or
establish
a
new,
27
mobile
dairy
processing
unit;
rent
buildings,
refrigeration
28
facilities,
freezer
facilities,
or
equipment
necessary
29
to
expand
processing
capacity,
including
mobile
dairy
or
30
refrigeration
units;
or
incorporate
methods
and
technologies
31
that
reduce
farm
labor
associated
with
milk
production
and
32
storage.
33
The
authority,
in
consultation
with
the
department,
must
34
establish
eligibility
criteria
for
the
program
by
rule,
and
the
35
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2433
criteria
must
include
the
requirements
detailed
in
the
bill.
1
A
business
seeking
assistance
under
the
program
must
make
2
application
to
the
authority
in
the
manner
prescribed
by
the
3
authority
by
rule.
Applications
must
be
accepted
during
one
or
4
more
annual
application
periods
determined
by
the
authority
by
5
rule.
After
reviewing
and
scoring
all
applications
received
6
during
an
application
period,
and
subject
to
funding,
the
7
authority,
in
consultation
with
the
department,
may
award
8
assistance
to
eligible
businesses.
A
financial
assistance
9
award
cannot
exceed
the
amount
of
eligible
project
costs
10
included
in
an
eligible
business’s
application.
The
bill
11
requires
that
priority
be
given
to
eligible
businesses
whose
12
proposed
project
will
create
new
dairy
processing
jobs;
create
13
or
expand
opportunities
for
local
small-scale
milk
producers
14
to
market
pasteurized
milk
and
milk
products
under
private
15
labels;
provide
greater
flexibility
or
convenience
for
local
16
small-scale
farmers
to
have
milk
processed;
and
reduce
labor
17
associated
with
the
on-farm
production
and
storage
of
milk.
18
A
business
that
is
awarded
assistance
under
the
program
may
19
apply
for
assistance
under
other
programs
administered
by
the
20
authority.
21
The
authority,
in
consultation
with
the
department,
is
22
required
to
adopt
rules
to
administer
the
fund
and
program.
23
An
artisanal
dairy
processing
program
task
force
is
24
created
within
the
department
for
the
purpose
of
exploring
25
the
feasibility
of
establishing
an
artisanal
dairy
processing
26
program
at
a
community
college
or
at
an
institution
governed
27
by
the
state
board
of
regents.
Members
of
the
task
force
28
must
include
the
secretary
of
agriculture
or
a
designee
and
29
representatives
of
various
groups
and
organizations
interested
30
in
dairy
processing
and
milk
production.
The
department
31
must
provide
the
task
force
with
staff
and
administrative
32
support.
The
task
force
must
consider
staffing
and
equipment
33
requirements,
potential
enrollment
numbers,
overall
employment
34
outlook
for
graduates,
apprenticeship
and
internship
35
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opportunities,
program
costs,
curriculum,
and
regulatory
and
1
legal
requirements.
2
The
bill
requires
the
task
force
to
submit
a
report
by
3
December
31,
2022,
to
the
general
assembly
that
includes
the
4
task
force’s
findings
and
recommendations.
5
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7/
7