SF 2290 (LSB 5405SV (1) 89)

SENATE FILE 2290

BY  COMMITTEE ON AGRICULTURE

(SUCCESSOR TO SSB 3135)

A BILL FOR

An Act establishing a dairy processing and milk production innovation and revitalization fund and program to be administered by the economic development authority, in consultation with the department of agriculture and land stewardship, and creating a task force to explore the feasibility of establishing an artisanal dairy processing program at a community college or at an institution governed by the state board of regents.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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