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Senate Study Bill 3135 - IntroducedA Bill ForAn Act 1establishing a dairy processing and milk production
2innovation and revitalization fund and program to be
3administered by the economic development authority, in
4consultation with the department of agriculture and land
5stewardship, and creating a task force to explore the
6feasibility of establishing an artisanal dairy processing
7program at a community college or at an institution governed
8by the state board of regents.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15E.371 Dairy processing and milk
2production innovation and revitalization fund and program.
31. As used in this section unless the context otherwise
4requires:
5a. “Department” means the department of agriculture and land
6stewardship.
7b. “Financial assistance” means assistance provided only
8from the funds and assets legally available to the authority
9pursuant to this section and includes assistance in the form of
10grants, low-interest loans, and forgivable loans.
11c. “Fund” means the dairy processing and milk production
12innovation and revitalization fund.
13d. “Located in” means the place or places at which
14a business’s operations are located and where at least
15ninety-eight percent of the business’s employees work, or where
16employees that are paid at least ninety-eight percent of the
17business’s payroll work.
18e. “Program” means the dairy processing and milk production
19innovation and revitalization program.
202. a. The fund is created in the state treasury under
21the control of the authority and consists of any moneys
22appropriated to the fund by the general assembly and any
23other moneys available to or obtained or accepted by the
24authority for placement in the fund. Moneys in the fund are
25appropriated to the authority to award financial assistance as
26provided under the program. The authority shall use any moneys
27specifically appropriated for purposes of this section only for
28the purposes of the program.
29b. Notwithstanding section 8.33, moneys in the fund
30that remain unencumbered or unobligated at the close of the
31fiscal year shall not revert but shall remain available for
32expenditure for the purposes designated until the close of the
33succeeding fiscal year.
343. The authority, in consultation with the department,
35shall establish and administer the program for the purpose of
-1-1awarding financial assistance to eligible businesses engaged in
2projects that do all of the following:
3a. Expand or refurbish existing milk plants or establish a
4new milk plant, operating pursuant to a permit issued pursuant
5to section 192.111.
6b. Expand or refurbish existing mobile dairy processing
7units, or establish new mobile dairy processing units.
8c. Rent building, refrigeration facilities, freezer
9facilities, or equipment necessary to expand dairy processing
10capacity, including mobile dairy or refrigeration units used
11exclusively for dairy processing.
12d. Incorporate methods and technologies that reduce farm
13labor associated with milk production and storage, including
14but not limited to the use of robotics and processes or systems
15that operate using computerized equipment or machinery.
164. The authority, in consultation with the department,
17shall establish eligibility criteria for the program by rule.
18The eligibility criteria must include all of the following:
19a. The business must be located in this state.
20b. The business must not have been subject to any regulatory
21enforcement action related to federal, state, or local
22environmental, worker safety, food processing, or food safety
23laws, rules, or regulations within the last five years.
24c. The business must only employ individuals legally
25authorized to work in this state.
26d. The business must not currently be in bankruptcy.
27e. The business must employ less than fifty individuals.
285. A business seeking financial assistance under this
29section shall make application to the authority in the manner
30prescribed by the authority by rule.
316. Applications shall be accepted during one or more
32annual application periods to be determined by the authority
33by rule. Upon reviewing and scoring all applications that are
34received during an application period, and subject to funding,
35the authority may, in consultation with the department, award
-2-1financial assistance to eligible businesses. A financial
2assistance award shall not exceed the amount of eligible
3project costs included in the eligible business’s application.
4Priority shall be given to eligible businesses whose proposed
5project under subsection 3 will do any of the following:
6a. Create new jobs.
7b. Create or expand opportunities for local small-scale milk
8producers to market pasteurized milk and milk products under
9private labels.
10c. Provide greater flexibility or convenience for local
11small-scale farmers to have milk processed.
12d. Reduce labor associated with the on-farm production and
13storage of milk.
147. A business that is awarded financial assistance under
15this section may apply for financial assistance under other
16programs administered by the authority.
178. The authority shall, in consultation with the
18department, adopt rules pursuant to chapter 17A to administer
19this section.
20 Sec. 2. TASK FORCE — ARTISANAL DAIRY PROCESSING PROGRAM.
211. The artisanal dairy processing program task force
22is created within the department of agriculture and land
23stewardship for the purpose of exploring the feasibility
24of establishing an artisanal dairy processing program at a
25community college or at an institution governed by the state
26board of regents.
272. Members of the task force shall include all of the
28following:
29a. The secretary of agriculture or a designee of the
30secretary, who shall serve as chairperson.
31b. One member appointed by the president of northeast Iowa
32community college. The member must be experienced in dairy
33science or the dairy business.
34c. Two members appointed by the president of Iowa state
35university of science and technology. The members must be
-3-1knowledgable about dairy science or the dairy business. One of
2the members must be associated with the university’s extension
3and outreach programs.
4d. One member of the economic development authority
5appointed by the director of the authority. The member must be
6knowledgable regarding state finance programs.
7e. Two members appointed by the executive director of the
8Iowa state dairy association. The members must be actively
9engaged in milk production.
10f. Two members appointed by the secretary of agriculture.
11The members must own or operate a milk plant. One of the
12members must own or operate a small-to-medium-scale milk plant.
133. The members shall not be entitled to a per diem as
14specified in section 7E.6. Members shall not be entitled to
15actual and necessary expenses incurred while engaged in their
16official duties.
174. The department of agriculture and land stewardship shall
18provide the task force with staff and administrative support.
195. The task force shall consider staffing and equipment
20requirements, potential enrollment numbers, overall employment
21outlook for graduates, apprenticeship and internship
22opportunities, program costs, curriculum, and regulatory and
23legal requirements.
246. The task force shall submit a report by December 31,
252022, to the general assembly that includes the task force’s
26findings and recommendations.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill establishes a dairy processing and milk production
31innovation and revitalization fund (fund) and program (program)
32to be administered by the economic development authority
33(authority), in consultation with the department of agriculture
34and land stewardship (department), and creates a task force
35to explore the feasibility of establishing an artisanal dairy
-4-1processing program at a community college or at an institution
2governed by the state board of regents.
3The bill creates the fund in the state treasury under
4the control of the authority, which consists of any moneys
5appropriated to the fund by the general assembly and any other
6moneys available to the authority for placement in the fund.
7Moneys in the fund are appropriated to provide financial
8assistance (assistance) as provided under the program.
9“Financial assistance” is defined to include assistance in the
10form of grants, low-interest loans, and forgivable loans.
11The authority must use any moneys specifically appropriated
12to the program only for purposes of supporting the program.
13The appropriated moneys that remain unencumbered or unobligated
14at the close of the fiscal year do not revert but remain
15available for expenditure for the program until the close of
16the succeeding fiscal year.
17The authority, in consultation with the department, must
18establish and administer the program for the purpose of
19awarding assistance to eligible businesses for projects that
20expand or refurbish an existing, or establish a new, milk
21plant; expand or refurbish an existing, or establish a new,
22mobile dairy processing unit; rent buildings, refrigeration
23facilities, freezer facilities, or equipment necessary
24to expand processing capacity, including mobile dairy or
25refrigeration units; or incorporate methods and technologies
26that reduce farm labor associated with milk production and
27storage.
28The authority, in consultation with the department, must
29establish eligibility criteria for the program by rule, and
30the criteria must include the requirements detailed in the
31bill. A business seeking assistance under the program must
32make application to the authority in the manner prescribed
33by the authority by rule. Applications must be accepted
34during one or more annual application periods determined
35by the authority by rule. After reviewing and scoring all
-5-1applications received during an application period, and subject
2to funding, the authority, in consultation with the department,
3may award assistance to eligible businesses. A financial
4assistance award cannot exceed the amount of eligible project
5costs included in an eligible business’s application. The
6bill requires that priority be given to eligible businesses
7whose proposed project will create new jobs; create or
8expand opportunities for local small-scale milk producers
9to market pasteurized milk and milk products under private
10labels; provide greater flexibility or convenience for local
11small-scale farmers to have milk processed; and reduce labor
12associated with the on-farm production and storage of milk.
13A business that is awarded assistance under the program may
14apply for assistance under other programs administered by the
15authority.
16The authority, in consultation with the department, is
17required to adopt rules to administer the fund and program.
18An artisanal dairy processing program task force is
19created within the department for the purpose of exploring
20the feasibility of establishing an artisanal dairy processing
21program at a community college or at an institution governed
22by the state board of regents. Members of the task force
23must include the secretary of agriculture or a designee and
24representatives of various groups and organizations interested
25in dairy processing and milk production. The department
26must provide the task force with staff and administrative
27support. The task force must consider staffing and equipment
28requirements, potential enrollment numbers, overall employment
29outlook for graduates, apprenticeship and internship
30opportunities, program costs, curriculum, and regulatory and
31legal requirements.
32The bill requires the task force to submit a report by
33December 31, 2022, to the general assembly that includes the
34task force’s findings and recommendations.
-6-da/ns
2innovation and revitalization fund and program to be
3administered by the economic development authority, in
4consultation with the department of agriculture and land
5stewardship, and creating a task force to explore the
6feasibility of establishing an artisanal dairy processing
7program at a community college or at an institution governed
8by the state board of regents.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15E.371 Dairy processing and milk
2production innovation and revitalization fund and program.
31. As used in this section unless the context otherwise
4requires:
5a. “Department” means the department of agriculture and land
6stewardship.
7b. “Financial assistance” means assistance provided only
8from the funds and assets legally available to the authority
9pursuant to this section and includes assistance in the form of
10grants, low-interest loans, and forgivable loans.
11c. “Fund” means the dairy processing and milk production
12innovation and revitalization fund.
13d. “Located in” means the place or places at which
14a business’s operations are located and where at least
15ninety-eight percent of the business’s employees work, or where
16employees that are paid at least ninety-eight percent of the
17business’s payroll work.
18e. “Program” means the dairy processing and milk production
19innovation and revitalization program.
202. a. The fund is created in the state treasury under
21the control of the authority and consists of any moneys
22appropriated to the fund by the general assembly and any
23other moneys available to or obtained or accepted by the
24authority for placement in the fund. Moneys in the fund are
25appropriated to the authority to award financial assistance as
26provided under the program. The authority shall use any moneys
27specifically appropriated for purposes of this section only for
28the purposes of the program.
29b. Notwithstanding section 8.33, moneys in the fund
30that remain unencumbered or unobligated at the close of the
31fiscal year shall not revert but shall remain available for
32expenditure for the purposes designated until the close of the
33succeeding fiscal year.
343. The authority, in consultation with the department,
35shall establish and administer the program for the purpose of
-1-1awarding financial assistance to eligible businesses engaged in
2projects that do all of the following:
3a. Expand or refurbish existing milk plants or establish a
4new milk plant, operating pursuant to a permit issued pursuant
5to section 192.111.
6b. Expand or refurbish existing mobile dairy processing
7units, or establish new mobile dairy processing units.
8c. Rent building, refrigeration facilities, freezer
9facilities, or equipment necessary to expand dairy processing
10capacity, including mobile dairy or refrigeration units used
11exclusively for dairy processing.
12d. Incorporate methods and technologies that reduce farm
13labor associated with milk production and storage, including
14but not limited to the use of robotics and processes or systems
15that operate using computerized equipment or machinery.
164. The authority, in consultation with the department,
17shall establish eligibility criteria for the program by rule.
18The eligibility criteria must include all of the following:
19a. The business must be located in this state.
20b. The business must not have been subject to any regulatory
21enforcement action related to federal, state, or local
22environmental, worker safety, food processing, or food safety
23laws, rules, or regulations within the last five years.
24c. The business must only employ individuals legally
25authorized to work in this state.
26d. The business must not currently be in bankruptcy.
27e. The business must employ less than fifty individuals.
285. A business seeking financial assistance under this
29section shall make application to the authority in the manner
30prescribed by the authority by rule.
316. Applications shall be accepted during one or more
32annual application periods to be determined by the authority
33by rule. Upon reviewing and scoring all applications that are
34received during an application period, and subject to funding,
35the authority may, in consultation with the department, award
-2-1financial assistance to eligible businesses. A financial
2assistance award shall not exceed the amount of eligible
3project costs included in the eligible business’s application.
4Priority shall be given to eligible businesses whose proposed
5project under subsection 3 will do any of the following:
6a. Create new jobs.
7b. Create or expand opportunities for local small-scale milk
8producers to market pasteurized milk and milk products under
9private labels.
10c. Provide greater flexibility or convenience for local
11small-scale farmers to have milk processed.
12d. Reduce labor associated with the on-farm production and
13storage of milk.
147. A business that is awarded financial assistance under
15this section may apply for financial assistance under other
16programs administered by the authority.
178. The authority shall, in consultation with the
18department, adopt rules pursuant to chapter 17A to administer
19this section.
20 Sec. 2. TASK FORCE — ARTISANAL DAIRY PROCESSING PROGRAM.
211. The artisanal dairy processing program task force
22is created within the department of agriculture and land
23stewardship for the purpose of exploring the feasibility
24of establishing an artisanal dairy processing program at a
25community college or at an institution governed by the state
26board of regents.
272. Members of the task force shall include all of the
28following:
29a. The secretary of agriculture or a designee of the
30secretary, who shall serve as chairperson.
31b. One member appointed by the president of northeast Iowa
32community college. The member must be experienced in dairy
33science or the dairy business.
34c. Two members appointed by the president of Iowa state
35university of science and technology. The members must be
-3-1knowledgable about dairy science or the dairy business. One of
2the members must be associated with the university’s extension
3and outreach programs.
4d. One member of the economic development authority
5appointed by the director of the authority. The member must be
6knowledgable regarding state finance programs.
7e. Two members appointed by the executive director of the
8Iowa state dairy association. The members must be actively
9engaged in milk production.
10f. Two members appointed by the secretary of agriculture.
11The members must own or operate a milk plant. One of the
12members must own or operate a small-to-medium-scale milk plant.
133. The members shall not be entitled to a per diem as
14specified in section 7E.6. Members shall not be entitled to
15actual and necessary expenses incurred while engaged in their
16official duties.
174. The department of agriculture and land stewardship shall
18provide the task force with staff and administrative support.
195. The task force shall consider staffing and equipment
20requirements, potential enrollment numbers, overall employment
21outlook for graduates, apprenticeship and internship
22opportunities, program costs, curriculum, and regulatory and
23legal requirements.
246. The task force shall submit a report by December 31,
252022, to the general assembly that includes the task force’s
26findings and recommendations.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill establishes a dairy processing and milk production
31innovation and revitalization fund (fund) and program (program)
32to be administered by the economic development authority
33(authority), in consultation with the department of agriculture
34and land stewardship (department), and creates a task force
35to explore the feasibility of establishing an artisanal dairy
-4-1processing program at a community college or at an institution
2governed by the state board of regents.
3The bill creates the fund in the state treasury under
4the control of the authority, which consists of any moneys
5appropriated to the fund by the general assembly and any other
6moneys available to the authority for placement in the fund.
7Moneys in the fund are appropriated to provide financial
8assistance (assistance) as provided under the program.
9“Financial assistance” is defined to include assistance in the
10form of grants, low-interest loans, and forgivable loans.
11The authority must use any moneys specifically appropriated
12to the program only for purposes of supporting the program.
13The appropriated moneys that remain unencumbered or unobligated
14at the close of the fiscal year do not revert but remain
15available for expenditure for the program until the close of
16the succeeding fiscal year.
17The authority, in consultation with the department, must
18establish and administer the program for the purpose of
19awarding assistance to eligible businesses for projects that
20expand or refurbish an existing, or establish a new, milk
21plant; expand or refurbish an existing, or establish a new,
22mobile dairy processing unit; rent buildings, refrigeration
23facilities, freezer facilities, or equipment necessary
24to expand processing capacity, including mobile dairy or
25refrigeration units; or incorporate methods and technologies
26that reduce farm labor associated with milk production and
27storage.
28The authority, in consultation with the department, must
29establish eligibility criteria for the program by rule, and
30the criteria must include the requirements detailed in the
31bill. A business seeking assistance under the program must
32make application to the authority in the manner prescribed
33by the authority by rule. Applications must be accepted
34during one or more annual application periods determined
35by the authority by rule. After reviewing and scoring all
-5-1applications received during an application period, and subject
2to funding, the authority, in consultation with the department,
3may award assistance to eligible businesses. A financial
4assistance award cannot exceed the amount of eligible project
5costs included in an eligible business’s application. The
6bill requires that priority be given to eligible businesses
7whose proposed project will create new jobs; create or
8expand opportunities for local small-scale milk producers
9to market pasteurized milk and milk products under private
10labels; provide greater flexibility or convenience for local
11small-scale farmers to have milk processed; and reduce labor
12associated with the on-farm production and storage of milk.
13A business that is awarded assistance under the program may
14apply for assistance under other programs administered by the
15authority.
16The authority, in consultation with the department, is
17required to adopt rules to administer the fund and program.
18An artisanal dairy processing program task force is
19created within the department for the purpose of exploring
20the feasibility of establishing an artisanal dairy processing
21program at a community college or at an institution governed
22by the state board of regents. Members of the task force
23must include the secretary of agriculture or a designee and
24representatives of various groups and organizations interested
25in dairy processing and milk production. The department
26must provide the task force with staff and administrative
27support. The task force must consider staffing and equipment
28requirements, potential enrollment numbers, overall employment
29outlook for graduates, apprenticeship and internship
30opportunities, program costs, curriculum, and regulatory and
31legal requirements.
32The bill requires the task force to submit a report by
33December 31, 2022, to the general assembly that includes the
34task force’s findings and recommendations.
-6-da/ns