House File 857 - Introduced HOUSE FILE 857 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 787) (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, in consultation with the department 3 of agriculture and land stewardship, and creating a 4 task force to explore the feasibility of establishing an 5 artisanal butchery program at a community college or at an 6 institution governed by the state board of regents. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 2706HZ (2) 89 ko/jh

H.F. 857 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. “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 butchery innovation and revitalization 11 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 butchery innovation and 18 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 other 22 moneys available and obtained or accepted by the authority 23 for placement in the fund. The fund shall be used to award 24 financial assistance as provided under the program. The 25 authority shall use any moneys specifically appropriated for 26 purposes of this section only for the purposes of the program. 27 b. Notwithstanding section 8.33, moneys in the fund 28 that remain unencumbered or unobligated at the close of the 29 fiscal year shall not revert but shall remain available for 30 expenditure for the purposes designated until the close of the 31 succeeding fiscal year. 32 3. The authority, in consultation with the department, 33 shall establish and administer the program for the purpose of 34 awarding financial assistance to eligible businesses for the 35 -1- LSB 2706HZ (2) 89 ko/jh 1/ 6

H.F. 857 following projects: 1 a. To expand or refurbish an existing, or to establish a 2 new, state-inspected small-scale meat processing business. 3 b. To expand or refurbish an existing, or to establish a 4 new, federally inspected small-scale meat processing business. 5 c. To expand or refurbish an existing, or to establish a 6 new, licensed custom locker. 7 d. To expand or refurbish an existing, or to establish a 8 new, mobile slaughter unit that operates in compliance with 9 the most current mobile slaughter unit compliance guide issued 10 by the United States department of agriculture food safety and 11 inspection service. 12 e. To rent buildings, refrigeration facilities, freezer 13 facilities, or equipment necessary to expand processing 14 capacity, including mobile slaughter or refrigeration units 15 used exclusively for meat or poultry processing. 16 4. The authority, in consultation with the department, 17 shall establish eligibility criteria for the program by rule. 18 The eligibility criteria must include all of the following: 19 a. The business must be located in this state. 20 b. The business must not have been subject to any regulatory 21 enforcement action related to federal, state, or local 22 environmental, worker safety, food processing, or food safety 23 laws, rules, or regulations within the last five years. 24 c. The business must only employ individuals legally 25 authorized to work in the state. 26 d. The business must not currently be in bankruptcy. 27 e. The business must employ less than fifty individuals. 28 5. A business seeking financial assistance under this 29 section shall make application to the authority in the manner 30 prescribed by the authority by rule. 31 6. Applications shall be accepted during one or more 32 annual application periods to be determined by the authority 33 by rule. Upon reviewing and scoring all applications that are 34 received during an application period, and subject to funding, 35 -2- LSB 2706HZ (2) 89 ko/jh 2/ 6

H.F. 857 the authority may, in consultation with the department, award 1 financial assistance to eligible businesses. A financial 2 assistance award shall not exceed the amount of eligible 3 project costs included in the eligible business’s application. 4 Priority shall be given to eligible businesses whose proposed 5 project under subsection 3 will do any of the following: 6 a. Create new jobs. 7 b. Create or expand opportunities for local small-scale 8 farmers to market processed meat under private labels. 9 c. Provide greater flexibility or convenience for local 10 small-scale farmers to have animals processed. 11 7. A business that is awarded financial assistance under 12 this section may apply for financial assistance under other 13 programs administered by the authority. 14 8. The authority shall, in consultation with the 15 department, adopt rules pursuant to chapter 17A to administer 16 this section. 17 Sec. 2. TASK FORCE —— ARTISANAL BUTCHERY PROGRAM. 18 1. The artisanal butchery program task force is created 19 within the department of agriculture and land stewardship for 20 the purpose of exploring the feasibility of establishing an 21 artisanal butchery program at a community college or at an 22 institution governed by the state board of regents. 23 2. Members of the task force shall be appointed by the 24 secretary of agriculture and must include one representative 25 of the department of agriculture and land stewardship and at 26 least one representative of each of the following groups or 27 organizations: 28 a. The Iowa association of community college trustees. 29 b. The Iowa culinary institute. 30 c. The economic development authority. 31 d. Meat science staff at the extension service at Iowa state 32 university of science and technology. 33 e. The Iowa meat processors association. 34 f. A swine producer selected by the Iowa pork producers 35 -3- LSB 2706HZ (2) 89 ko/jh 3/ 6

H.F. 857 association. 1 g. A cattle producer selected by the Iowa cattlemen’s 2 association. 3 h. Owners or operators of licensed custom lockers located 4 in the state. 5 i. Owners or operators of state-inspected small-scale meat 6 processing facilities located in the state. 7 j. Owners or operators of federally inspected small-scale 8 meat processing facilities located in the state. 9 k. The Iowa conservation alliance. 10 3. The department of agriculture and land stewardship shall 11 provide the task force with staff and administrative support. 12 4. The task force shall consider staffing and equipment 13 requirements, potential enrollment numbers, overall employment 14 outlook for graduates, apprenticeship and internship 15 opportunities, program costs, curriculum, and regulatory and 16 legal requirements. 17 5. The task force shall submit a report by December 31, 18 2021, to the general assembly that includes the task force’s 19 findings and recommendations. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill establishes a butchery innovation and 24 revitalization fund (fund) and a butchery innovation and 25 revitalization program (program) to be administered by the 26 economic development authority (authority), in consultation 27 with the department of agriculture and land stewardship 28 (department), and creates a task force to explore the 29 feasibility of establishing an artisanal butchery program at a 30 community college or at an institution governed by the state 31 board of regents. 32 The bill creates the fund in the state treasury under 33 the control of the authority, which consists of any moneys 34 appropriated to the fund by the general assembly and any 35 -4- LSB 2706HZ (2) 89 ko/jh 4/ 6

H.F. 857 other moneys available to the authority for placement in the 1 fund. The fund must be used to provide financial assistance 2 (assistance) as provided under the program. “Assistance” 3 is defined to include assistance in the form of grants, 4 low-interest loans, and forgivable loans. 5 The authority must use any moneys specifically appropriated 6 for purposes of the program only for the purposes of the 7 program. The appropriated moneys that remain unencumbered or 8 unobligated at the close of the fiscal year do not revert but 9 remain available for expenditure for the program until the 10 close of the succeeding fiscal year. 11 The authority, in consultation with the department, must 12 establish and administer the program for the purpose of 13 awarding assistance to eligible businesses for projects 14 that expand or refurbish, or that establish a new, state or 15 federally inspected small-scale meat processing business, 16 licensed custom locker, or mobile slaughter unit. An eligible 17 business’s project may also include renting buildings, 18 refrigeration facilities, freezer facilities, mobile slaughter 19 or refrigeration units, or equipment that is necessary to 20 expand the business’s processing capacity. A mobile slaughter 21 unit must operate in compliance with the most current mobile 22 slaughter unit compliance guide issued by the United States 23 department of agriculture food safety and inspection service. 24 The authority, in consultation with the department, must 25 establish eligibility criteria for the program by rule, and 26 the criteria must include the requirements detailed in the 27 bill. A business seeking assistance under the program must 28 make application to the authority in the manner prescribed 29 by the authority by rule. Applications must be accepted 30 during one or more annual application periods determined 31 by the authority by rule. After reviewing and scoring all 32 applications received during an application period, and subject 33 to funding, the authority, in consultation with the department, 34 may award assistance to eligible businesses. A financial 35 -5- LSB 2706HZ (2) 89 ko/jh 5/ 6

H.F. 857 assistance award cannot exceed the amount of eligible project 1 costs included in an eligible business’s application. The 2 bill requires that priority be given to eligible businesses 3 whose proposed project will create new jobs; create or expand 4 opportunities for local small-scale farmers to market processed 5 meat under private labels; or provide greater flexibility or 6 convenience for local small-scale farmers to have animals 7 processed. 8 A business that is awarded assistance under the program may 9 apply for assistance under other programs administered by the 10 authority. 11 The authority, in consultation with the department, is 12 required to adopt rules to administer the fund and program. 13 The artisanal butchery program task force is created within 14 the department for the purpose of exploring the feasibility 15 of establishing an artisanal butchery program at a community 16 college or at an institution governed by the state board of 17 regents. Members of the task force are appointed by the 18 secretary of agriculture and must include representatives of 19 various groups and organizations as detailed in the bill. 20 The department must provide the task force with staff and 21 administrative support. The task force must consider staffing 22 and equipment requirements, potential enrollment numbers, 23 overall employment outlook for graduates, apprenticeship and 24 internship opportunities, program costs, curriculum, and 25 regulatory and legal requirements. 26 The bill requires the task force to submit a report by 27 December 31, 2021, to the general assembly that includes the 28 task force’s findings and recommendations. 29 -6- LSB 2706HZ (2) 89 ko/jh 6/ 6