H.F. 558 Section 1. NEW SECTION . 190A.11 Definitions. 1 As used in this subchapter, unless the context otherwise 2 requires: 3 1. “Department” means the department of agriculture and land 4 stewardship. 5 2. “Farm source” means a farmer who produces fresh farm 6 produce and sells directly to consumers or to a distributor or 7 broker of fresh farm produce. 8 3. “Fresh farm produce” means vegetables, fruits, or nuts 9 intended for inclusion as part of a school diet, including 10 school meals and snacks as described in section 190A.3, if the 11 vegetables, fruits, or nuts are not processed except for being 12 trimmed, cleaned, dried, sorted, or packaged. 13 4. “Fund” means the local farm produce fund created in 14 section 190A.12. 15 5. “Program” means the local farm produce program created 16 in section 190A.13. 17 6. “School” means a public school or nonpublic school, as 18 those terms are defined in section 280.2, or that portion of a 19 public school or nonpublic school that provides facilities for 20 teaching any grade from kindergarten through grade twelve. 21 7. “School district” means a school district as described 22 in chapter 274. 23 Sec. 2. NEW SECTION . 190A.12 Local farm produce fund. 24 1. A local farm produce fund is created in the state 25 treasury under the management and control of the department. 26 2. The fund shall include moneys appropriated to the fund 27 by the general assembly. The fund may include other moneys 28 available to and obtained or accepted by the department, 29 including moneys from public or private sources. 30 3. Moneys in the fund are appropriated to support the 31 program in a manner determined by the department, including for 32 reasonable administrative costs incurred by the department. 33 However, the department shall not use more than five percent 34 of moneys credited to the fund during a fiscal year to pay for 35 -1- LSB 2437YH (2) 90 da/ns 1/ 4

H.F. 558 reasonable administrative costs. 1 4. a. Notwithstanding section 12C.7, interest or earnings 2 on moneys in the fund shall be credited to the fund. 3 b. Notwithstanding section 8.33, moneys credited to the 4 fund that remain unencumbered or unobligated at the end of a 5 fiscal year shall not revert but shall remain available for 6 expenditure for the purposes designated. 7 Sec. 3. NEW SECTION . 190A.13 Local farm produce program. 8 1. A local farm produce program is created. The program 9 shall be controlled and administered by the department. 10 2. The purpose of the program is to assist schools and 11 school districts in purchasing fresh farm produce. 12 3. The department shall reimburse a school or school 13 district for expenditures incurred by the school or school 14 district for the purchase of fresh farm produce during 15 the school year in which the school or school district is 16 participating in the program. 17 4. A school or school district must apply each year to the 18 department to participate in the program according to rules 19 adopted by the department pursuant to chapter 17A. 20 5. To be eligible to participate in the program, a school or 21 school district must purchase the fresh farm produce directly 22 from a farm source as follows: 23 a. Except as provided in paragraph “b” , the farm source must 24 be located in this state. 25 b. If the school district shares a border with another 26 state, or the school is part of a school district that shares 27 a border with another state, the farm source may be located 28 in the other state. However, the food source must be located 29 within thirty miles from the school district’s border with that 30 state and the department must approve the purchase. 31 6. The department shall require proof of purchase prior to 32 reimbursing the school or school district for the purchase of 33 fresh farm produce. 34 7. The department may administer the program in cooperation 35 -2- LSB 2437YH (2) 90 da/ns 2/ 4

H.F. 558 with the department of education and the participating school 1 district or school district in which a participating school is 2 located. 3 8. a. The department shall reimburse a participating 4 school or school district that submits a claim as required 5 by the department. The department shall pay the claim on a 6 matching basis with the department contributing one dollar for 7 every three dollars expended by the school or school district. 8 However, a school or school district shall not receive 9 more than five thousand dollars during any year in which it 10 participates in the program. 11 b. If the department determines that there are not 12 sufficient moneys in the fund to satisfy all applications that 13 are submitted by schools and school districts, the department 14 shall distribute available moneys after reducing the requested 15 amounts by a like percentage. 16 c. Notwithstanding paragraph “a” , if the department 17 determines that there are sufficient moneys in the fund to 18 satisfy all claims that may be submitted by schools and school 19 districts, the department shall provide for the distribution of 20 the available moneys in a manner determined equitable by the 21 department to schools and school districts in counties where 22 the county board of health has identified obesity or another 23 diet-related illness in youth as a priority in the board’s 24 community health needs assessment and health improvement plan. 25 Sec. 4. APPROPRIATION. 26 1. Notwithstanding section 8.57G, subsection 2, there is 27 appropriated from the Iowa coronavirus fiscal recovery fund 28 to the department of agriculture and land stewardship for the 29 fiscal year beginning July 1, 2023, and ending June 30, 2024, 30 the following amount, or so much thereof as is necessary, to be 31 used for the purposes designated: 32 For deposit in the local farm produce fund created in section 33 190A.12, as enacted in this Act: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,925,000 35 -3- LSB 2437YH (2) 90 da/ns 3/ 4

H.F. 558 2. Notwithstanding section 190A.12, as enacted in this 1 Act, moneys appropriated to the local farm produce fund that 2 remain unencumbered or unobligated shall not revert and shall 3 be transferred on December 31, 2024, to the general fund of 4 the state and are appropriated to the economic development 5 authority for the period beginning January 1, 2025, and 6 ending June 30, 2026, for purposes related to assisting small 7 businesses. 8 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 9 importance, takes effect upon enactment. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill creates a local farm produce program to assist 14 schools and school districts purchasing fresh farm produce 15 directly from farmers or distributors of fresh farm produce 16 (Code chapter 190A). The department of agriculture and 17 land stewardship may reimburse a school or school district 18 for expenditures on such products to the extent moneys are 19 available to support the program. The available moneys would 20 be allocated during the school year on a matching basis, 21 subject to a $5,000 cap. The bill also creates a local farm 22 produce fund to support the program. 23 The bill appropriates moneys from Iowa coronavirus fiscal 24 recovery fund to the local farm produce fund for the period 25 beginning July 1, 2023, and ending December 31, 2024. However, 26 any unencumbered or unobligated moneys remaining on December 27 31, 2024, are transferred to the general fund and appropriated 28 to the economic development authority to support small 29 businesses. 30 The bill takes effect upon enactment. 31 -4- LSB 2437YH (2) 90 da/ns 4/ 4