House File 787 - Introduced HOUSE FILE 787 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HF 670) A BILL FOR An Act establishing a butchery innovation and revitalization 1 fund and program to be administered by the economic 2 development authority and creating a task force to explore 3 the feasibility of establishing an artisanal butchery 4 program at a community college or at an institution governed 5 by the state board of regents. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 2706HV (2) 89 ko/jh

H.F. 787 Section 1. NEW SECTION . 15E.370 Butchery innovation and 1 revitalization fund and program. 2 1. As used in this section unless the context otherwise 3 requires: 4 a. “Financial assistance” means assistance provided only 5 from the funds and assets legally available to the authority 6 pursuant to this section and includes assistance in the form of 7 grants, low-interest loans, and forgivable loans. 8 b. “Fund” means the butchery innovation and revitalization 9 fund. 10 c. “Located in” means the place or places at which 11 a business’s operations are located and where at least 12 ninety-eight percent of the business’s employees work, or where 13 employees that are paid at least ninety-eight percent of the 14 business’s payroll work. 15 d. “Program” means the butchery innovation and 16 revitalization program. 17 2. a. The fund is created in the state treasury under 18 the control of the authority and consists of any moneys 19 appropriated to the fund by the general assembly and any other 20 moneys available and obtained or accepted by the authority 21 for placement in the fund. The fund shall be used to award 22 financial assistance as provided under the program. The 23 authority shall use any moneys specifically appropriated for 24 purposes of this section only for the purposes of the program. 25 b. Notwithstanding section 8.33, moneys in the fund 26 that remain unencumbered or unobligated at the close of the 27 fiscal year shall not revert but shall remain available for 28 expenditure for the purposes designated until the close of the 29 succeeding fiscal year. 30 3. The authority shall establish and administer the program 31 for the purpose of awarding financial assistance to eligible 32 businesses for the following projects: 33 a. To expand or refurbish an existing, or to establish a 34 new, state-inspected small-scale meat processing business. 35 -1- LSB 2706HV (2) 89 ko/jh 1/ 6

H.F. 787 b. To expand or refurbish an existing, or to establish a 1 new, federally inspected small-scale meat processing business. 2 c. To expand or refurbish an existing, or to establish a 3 new, licensed custom locker. 4 d. To expand or refurbish an existing, or to establish a 5 new, mobile slaughter unit that operates in compliance with 6 the most current mobile slaughter unit compliance guide issued 7 by the United States department of agriculture food safety and 8 inspection service. 9 4. The authority shall establish eligibility criteria for 10 the program by rule. The eligibility criteria must include all 11 of the following: 12 a. The business must be located in this state. 13 b. The business must not have been in violation of any 14 federal, state, or local environmental, worker safety, food 15 processing, or food safety laws, rules, or regulations at any 16 time within the last five years. 17 c. The business must only employ individuals legally 18 authorized to work in the state. 19 d. The business must not currently be in bankruptcy. 20 5. A business seeking financial assistance under this 21 section shall make application to the authority in the manner 22 prescribed by the authority by rule. 23 6. Applications shall be accepted during an annual 24 application period established by the authority. Upon 25 reviewing and scoring all applications that are received during 26 the annual application period, and subject to funding, the 27 authority shall award financial assistance to the selected 28 eligible businesses. The authority shall give priority to 29 eligible businesses whose proposed project under subsection 3 30 will do any of the following: 31 a. Create new jobs. 32 b. Create or expand opportunities for local small-scale 33 farmers to market processed meat under private labels. 34 c. Provide greater flexibility or convenience for local 35 -2- LSB 2706HV (2) 89 ko/jh 2/ 6

H.F. 787 small-scale farmers to have animals processed. 1 7. A business that is awarded financial assistance under 2 this section may apply for financial assistance under other 3 programs administered by the authority. 4 8. The authority shall adopt rules pursuant to chapter 17A 5 to administer this section. 6 Sec. 2. TASK FORCE —— ARTISANAL BUTCHERY PROGRAM. 7 1. The artisanal butchery program task force is created 8 within the economic development authority for the purpose of 9 exploring the feasibility of establishing an artisanal butchery 10 program at a community college or at an institution governed 11 by the state board of regents. 12 2. Members of the task force shall be appointed by the 13 director of the economic development authority and must include 14 one representative of the economic development authority and 15 at least one representative of each of the following groups or 16 organizations: 17 a. The Iowa association of community college trustees. 18 b. The Iowa culinary institute. 19 c. Artisan butchers that reside and work in the state. 20 d. The department of agriculture and land stewardship meat 21 and poultry inspection bureau. 22 e. Meat science staff at the extension service at Iowa state 23 university of science and technology. 24 f. The Iowa meat processors association. 25 g. Small-scale hog farmers that farm in the state. 26 h. Small-scale cattle farmers that farm in the state. 27 i. Owners or operators of licensed custom lockers located 28 in the state. 29 j. Owners or operators of state-inspected small-scale meat 30 processing facilities located in the state. 31 k. Owners or operators of federally inspected small-scale 32 meat processing facilities located in the state. 33 l. Individuals who hold a master’s or doctoral degree in 34 meat science and who reside in the state. 35 -3- LSB 2706HV (2) 89 ko/jh 3/ 6

H.F. 787 m. The Iowa conservation alliance. 1 3. The economic development authority shall provide the 2 task force with staff and administrative support. 3 4. The task force shall consider staffing and equipment 4 requirements, potential enrollment numbers, overall employment 5 outlook for graduates, apprenticeship and internship 6 opportunities, program costs, curriculum, and regulatory and 7 legal requirements. 8 5. The task force shall submit a report by December 31, 9 2021, to the general assembly and to the chairpersons and 10 the vice-chairpersons of the committees on economic growth 11 and education that includes the task force’s findings and 12 recommendations. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill establishes a butchery innovation and 17 revitalization fund (fund) and a butchery innovation and 18 revitalization program (program) to be administered by the 19 economic development authority (authority), and creates a task 20 force to explore the feasibility of establishing an artisanal 21 butchery program at a community college or at an institution 22 governed by the state board of regents. 23 The bill creates the fund in the state treasury under 24 the control of the authority, which consists of any moneys 25 appropriated to the fund by the general assembly and any 26 other moneys available to the authority for placement in the 27 fund. The fund must be used to provide financial assistance 28 (assistance) as provided under the program. “Assistance” 29 is defined to include assistance in the form of grants, 30 low-interest loans, and forgivable loans. 31 The authority must use any moneys specifically appropriated 32 for purposes of the program only for the purposes of the 33 program. The appropriated moneys that remain unencumbered or 34 unobligated at the close of the fiscal year do not revert but 35 -4- LSB 2706HV (2) 89 ko/jh 4/ 6

H.F. 787 remain available for expenditure for the program until the 1 close of the succeeding fiscal year. 2 The authority must establish and administer the program 3 for the purpose of awarding assistance to eligible businesses 4 for projects that expand or refurbish, or that establish a 5 new, state or federally inspected small-scale meat processing 6 business, licensed custom locker, or mobile slaughter unit. 7 A mobile slaughter unit must operate in compliance with the 8 most current mobile slaughter unit compliance guide issued by 9 the United States department of agriculture food safety and 10 inspection service. 11 The authority must establish eligibility criteria for the 12 program by rule, and the criteria must include the requirements 13 detailed in the bill. A business seeking assistance under the 14 program must make application to the authority in the manner 15 prescribed by the authority by rule. Applications must be 16 accepted during an annual application period established by 17 the authority. After reviewing and scoring all applications 18 received during the application period, and subject to 19 funding, the authority must award assistance to the selected 20 eligible businesses. The bill requires the authority to give 21 priority to eligible businesses whose proposed project will 22 create new jobs; create or expand opportunities for local 23 small-scale farmers to market processed meat under private 24 labels; or provide greater flexibility or convenience for local 25 small-scale farmers to have animals processed. 26 A business that is awarded assistance under the program may 27 apply for assistance under other programs administered by the 28 authority. 29 The authority is required to adopt rules to administer the 30 fund and program. 31 The artisanal butchery program task force is created within 32 the authority for the purpose of exploring the feasibility 33 of establishing an artisanal butchery program at a community 34 college or at an institution governed by the state board of 35 -5- LSB 2706HV (2) 89 ko/jh 5/ 6

H.F. 787 regents. Members of the task force are appointed by the 1 director of the authority and must include representatives 2 of various groups and organizations as detailed in the bill. 3 The authority must provide the task force with staff and 4 administrative support. The task force must consider staffing 5 and equipment requirements, potential enrollment numbers, 6 overall employment outlook for graduates, apprenticeship and 7 internship opportunities, program costs, curriculum, and 8 regulatory and legal requirements. 9 The bill requires the task force to submit a report 10 by December 31, 2021, to the general assembly and to the 11 chairpersons and the vice-chairpersons of the committees on 12 economic growth and education, that includes the task force’s 13 findings and recommendations. 14 -6- LSB 2706HV (2) 89 ko/jh 6/ 6