House File 143 - Introduced HOUSE FILE 143 BY WOOD A BILL FOR An Act providing for a rural veterinary practice innovation 1 and revitalization fund and program to assist veterinary 2 practices in certain counties, and making appropriations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2286YH (3) 91 da/ns

H.F. 143 Section 1. Section 187.102, Code 2025, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 01. “Agricultural animal” means an animal 3 belonging to the bovine, caprine, equine, ovine, or porcine 4 species; farm deer as defined in section 170.1; ostriches, 5 rheas, and emus; turkeys, chickens, domestic geese or ducks, or 6 other domestic fowl; fish or other aquatic organisms confined 7 in private waters for human consumption; or honey bees. 8 NEW SUBSECTION . 8A. “Licensed veterinarian” means an 9 individual who is validly and currently licensed to practice 10 veterinary medicine in the state under chapter 169. 11 NEW SUBSECTION . 13. “Veterinary practice” means a business 12 engaged in the practice of veterinary medicine as defined in 13 section 169.3, as any of the following: 14 a. An individual acting as a solo veterinary practitioner. 15 b. A partnership or a limited liability partnership formed 16 under chapter 486A in which all partnership interests are held 17 by licensed veterinarians. 18 c. A limited partnership formed under chapter 488 in which 19 all interests are held by licensed veterinarians. 20 d. A professional limited liability company formed under 21 chapter 489 in which all membership interests are held by 22 licensed veterinarians. 23 e. A professional corporation formed under chapter 496C in 24 which all shares are held by licensed veterinarians. 25 f. A corporation formed under chapter 504 in which all 26 shares are held by licensed veterinarians. 27 Sec. 2. Section 187.102, subsection 7, Code 2025, is amended 28 by striking the subsection. 29 Sec. 3. Section 187.201, subsection 3, Code 2025, is amended 30 to read as follows: 31 3. Moneys in the fund are appropriated to the department and 32 shall be used exclusively to administer the programs created 33 in this subchapter chapter as determined and directed by the 34 department, and shall not require further special authorization 35 -1- LSB 2286YH (3) 91 da/ns 1/ 6

H.F. 143 by the general assembly. 1 Sec. 4. NEW SECTION . 187.211 Rural veterinary practice 2 innovation and revitalization fund. 3 1. A rural veterinary practice innovation and 4 revitalization fund is established in the state treasury under 5 the management and control of the department. 6 2. The fund shall include moneys appropriated by the general 7 assembly and other moneys available to and obtained or accepted 8 by the department, including moneys from public or private 9 sources. 10 3. a. Moneys in the fund are appropriated to the department 11 for the purpose of supporting the rural veterinary practice 12 innovation and revitalization program established in section 13 187.316. 14 b. The department may use not more than five percent of 15 the balance of the unencumbered and unobligated moneys in the 16 fund at the beginning of a fiscal year to pay for the costs of 17 administering the program. 18 4. a. Notwithstanding section 12C.7, interest or earnings 19 on moneys in the fund shall be credited to the fund. 20 b. Notwithstanding section 8.33, moneys in the fund that 21 remain unencumbered or unobligated at the end of a fiscal year 22 shall not revert. 23 Sec. 5. NEW SECTION . 187.315 Administration. 24 In administering the rural veterinary practice innovation 25 and revitalization program, the department shall consult with 26 the Iowa board of veterinary medicine as provided in section 27 169.5 and organizations interested in animal agriculture and 28 the health of agricultural animals. 29 Sec. 6. NEW SECTION . 187.316 Rural veterinary practice 30 innovation and revitalization program. 31 1. The department shall establish and administer the rural 32 veterinary practice innovation and revitalization program 33 for the purpose of awarding financial assistance to eligible 34 veterinary practices to expand and improve veterinary services 35 -2- LSB 2286YH (3) 91 da/ns 2/ 6

H.F. 143 provided to agricultural animals in those counties with a 1 population of thirty thousand or less according to the latest 2 preceding federal decennial census or the latest applicable 3 population estimate issued by the United States census bureau, 4 whichever is most recent. 5 2. The department shall award financial assistance to 6 pay for project costs incurred by doing one or more of the 7 following: 8 a. Improve or expand existing facilities. 9 b. Acquire existing equipment, devices, tools, or 10 instruments. 11 c. Incorporate new methods and technologies, including 12 computerized systems. 13 3. The department shall establish eligibility criteria for 14 the program by rule. The eligibility criteria must include all 15 of the following: 16 a. The veterinary practice must be located in this state. 17 b. A licensed veterinarian associated with the veterinary 18 practice as a solo practitioner, partner, limited partner, 19 member, or shareholder must not have been subject to 20 disciplinary action in this state or another state within the 21 last five years. 22 c. The veterinary practice must only employ individuals 23 legally authorized to work in this state. 24 d. The veterinary practice must not currently be in 25 bankruptcy. 26 e. The veterinary practice must employ less than fifty 27 individuals. 28 4. A veterinary practice seeking financial assistance under 29 this section must make application to the department in the 30 manner prescribed by the department by rule. 31 5. Applications shall be accepted during one or more annual 32 application periods to be determined by the department. Upon 33 reviewing and scoring all applications that are received during 34 an application period, and subject to funding, the department 35 -3- LSB 2286YH (3) 91 da/ns 3/ 6

H.F. 143 may award financial assistance to eligible veterinary 1 practices. A financial assistance award shall not exceed the 2 amount of eligible project costs included in the eligible 3 application. 4 Sec. 7. RURAL VETERINARY PRACTICE INNOVATION AND 5 REVITALIZATION FUND AND PROGRAM —— APPROPRIATION. 6 1. There is appropriated from the general fund of the state 7 to the department of agriculture and land stewardship for the 8 fiscal year beginning July 1, 2025, and ending June 30, 2026, 9 the following amount, or so much thereof as is necessary, to be 10 used for the purposes designated: 11 For deposit in the rural veterinary practice innovation and 12 revitalization fund established in section 187.211: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 750,000 14 2. Of the moneys appropriated in this section, a veterinary 15 practice shall not receive more than $25,000 in any fiscal 16 year under the rural veterinary practice innovation and 17 revitalization program established in section 187.316. 18 Sec. 8. CODE EDITOR DIRECTIVE. 19 1. The Code editor shall designate chapter 187, subchapter 20 II, sections 187.201 through 187.210 as part 1 and sections 21 187.211 through 187.300 as part 2. 22 2. The Code editor shall redesignate chapter 187, 23 subchapter III, part 3, as subchapter IV. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 BACKGROUND —— CHOOSE IOWA ACT. 2024 Iowa Acts, chapter 1177, 28 in part combined a number of existing programs promoting the 29 sale of Iowa farm commodities administered by the department of 30 agriculture and land stewardship (DALS) into new Code chapter 31 187, entitled the “Choose Iowa Act” (Code section 187.101). 32 The Code chapter is divided into three subchapters, including 33 subchapter I which provides for the chapter’s general subject 34 matter such as a definitions section (Code section 187.102), 35 -4- LSB 2286YH (3) 91 da/ns 4/ 6

H.F. 143 subchapter II which provides for financing various promotion 1 programs by establishing the choose Iowa fund (Code section 2 187.201), and subchapter III which is divided into three parts 3 for separate promotional programs to encourage the production 4 and consumption of Iowa commodities and products. Part 1 5 establishes the choose Iowa promotional program providing 6 for the advertising of an agricultural commodity produced 7 on an Iowa farm or an agricultural product processed from a 8 commodity produced on an Iowa farm (Code sections 187.301 9 through 187.303), part 2 establishes the dairy innovation 10 and revitalization program to promote the development, 11 modernization, and expansion of this state’s dairy industry 12 by providing financing (Code section 187.311), and part 3 13 creates a value-added agricultural grant program to identify, 14 evaluate, and support projects and services that add value to 15 agricultural commodities produced on Iowa farms (Code section 16 187.321). 17 BILL’S PROVISIONS. This bill establishes a rural veterinary 18 practice innovation and revitalization fund (fund) (Code 19 section 187.211) and rural veterinary practice innovation and 20 revitalization program (program) administered by DALS acting 21 in consultation with the Iowa board of veterinary medicine 22 (board) (Code sections 187.315 and 187.316). The purpose 23 of the fund and program is to award financial assistance to 24 eligible veterinary practices to expand and improve veterinary 25 services provided to agricultural animals in counties with a 26 population of 30,000 or less. Moneys awarded in financial 27 assistance support the use of facilities, the acquisition 28 of existing equipment, devices, tools, or instruments, and 29 the incorporation of new methods and technologies, including 30 computerized systems. DALS is required to adopt eligibility 31 requirements. The veterinary practice must be located in this 32 state, must not have been subject to any disciplinary action by 33 the board, must only employ individuals legally authorized to 34 work in this state, must not currently be in bankruptcy, and 35 -5- LSB 2286YH (3) 91 da/ns 5/ 6

H.F. 143 must employ less than 50 individuals. 1 APPROPRIATION. The bill appropriates $750,000 to the 2 fund in support of the program. DALS cannot award financial 3 assistance of more than $25,000 to any one eligible veterinary 4 practice from the fund in any fiscal year. 5 -6- LSB 2286YH (3) 91 da/ns 6/ 6