Senate File 2290 - Reprinted SENATE FILE 2290 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO SSB 3135) (As Amended and Passed by the Senate March 9, 2022 ) A BILL FOR An Act establishing a dairy processing and milk production 1 innovation and revitalization fund and program to be 2 administered by the economic development authority, in 3 consultation with the department of agriculture and land 4 stewardship, and requiring the department to study the 5 feasibility of establishing an artisanal dairy processing 6 program at a community college or at an institution governed 7 by the state board of regents. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 SF 2290 (2) 89 da/ns/mb

S.F. 2290 Section 1. NEW SECTION . 15E.371 Dairy processing and milk 1 production innovation and 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 dairy processing and milk production 11 innovation and revitalization 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 dairy processing and milk production 18 innovation and 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 22 other moneys available to or obtained or accepted by the 23 authority for placement in the fund. Moneys in the fund are 24 appropriated to the authority to award financial assistance as 25 provided under the program. The authority shall use any moneys 26 specifically appropriated for purposes of this section only for 27 the purposes of the program. 28 b. Notwithstanding section 8.33, moneys in the fund 29 that remain unencumbered or unobligated at the close of the 30 fiscal year shall not revert but shall remain available for 31 expenditure for the purposes designated until the close of the 32 succeeding fiscal year. 33 3. The authority, in consultation with the department, 34 shall establish and administer the program for the purpose of 35 -1- SF 2290 (2) 89 da/ns/mb 1/ 3

S.F. 2290 awarding financial assistance to eligible businesses engaged in 1 projects that do any of the following: 2 a. Expand or refurbish existing milk plants or establish a 3 new milk plant, operating pursuant to a permit issued pursuant 4 to section 192.111. 5 b. Expand or refurbish existing mobile dairy processing 6 units, or establish new mobile dairy processing units. 7 c. Rent building, refrigeration facilities, freezer 8 facilities, or equipment necessary to expand dairy processing 9 capacity, including mobile dairy or refrigeration units used 10 exclusively for dairy processing. 11 d. Incorporate methods and technologies that reduce farm 12 labor associated with milk production and storage, including 13 but not limited to the use of robotics and processes or systems 14 that operate using computerized equipment or machinery. 15 4. The authority, in consultation with the department, 16 shall establish eligibility criteria for the program by rule. 17 The eligibility criteria must include all of the following: 18 a. The business must be located in this state. 19 b. The business must not have been subject to any regulatory 20 enforcement action related to federal, state, or local 21 environmental, worker safety, food processing, or food safety 22 laws, rules, or regulations within the last five years. 23 c. The business must only employ individuals legally 24 authorized to work in this state. 25 d. The business must not currently be in bankruptcy. 26 e. The business must employ less than fifty individuals. 27 5. A business seeking financial assistance under this 28 section shall make application to the authority in the manner 29 prescribed by the authority by rule. 30 6. Applications shall be accepted during one or more 31 annual application periods to be determined by the authority 32 by rule. Upon reviewing and scoring all applications that are 33 received during an application period, and subject to funding, 34 the authority may, in consultation with the department, award 35 -2- SF 2290 (2) 89 da/ns/mb 2/ 3

S.F. 2290 financial assistance to eligible businesses. A financial 1 assistance award shall not exceed the amount of eligible 2 project costs included in the eligible business’s application. 3 Priority shall be given to eligible businesses whose proposed 4 project under subsection 3 will do any of the following: 5 a. Create new dairy processing jobs. 6 b. Create or expand opportunities for local small-scale milk 7 producers to market pasteurized milk and milk products under 8 private labels. 9 c. Provide greater flexibility or convenience for local 10 small-scale farmers to have milk processed. 11 d. Reduce labor associated with the on-farm production and 12 storage of milk. 13 7. A business that is awarded financial assistance under 14 this section may apply for financial assistance under other 15 programs administered by the authority. 16 8. The authority may use not more than five percent of 17 the moneys in the fund at the beginning of each fiscal year 18 for purposes of administrative costs, marketing, technical 19 assistance, and other program support. 20 9. The authority shall, in consultation with the 21 department, adopt rules pursuant to chapter 17A to administer 22 this section. 23 Sec. 2. ARTISANAL DAIRY PROCESSING PROGRAM REPORT. 24 1. The department of agriculture and land stewardship 25 shall study the feasibility of establishing an artisanal dairy 26 processing program at a community college or at an institution 27 governed by the state board of regents. The department 28 shall consider staffing and equipment requirements, potential 29 enrollment numbers, overall employment outlook for graduates, 30 apprenticeship and internship opportunities, program costs, 31 curriculum, and regulatory and legal requirements. 32 2. The department shall submit a report by December 31, 33 2022, to the general assembly that includes findings and 34 recommendations of the department based on the study. 35 -3- SF 2290 (2) 89 da/ns/mb 3/ 3