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House File 2433 - 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 any 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 dairy processing 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 may use not more than five percent of
18the moneys in the fund at the beginning of each fiscal year
19for purposes of administrative costs, marketing, technical
20assistance, and other program support.
219. The authority shall, in consultation with the
22department, adopt rules pursuant to chapter 17A to administer
23this section.
24 Sec. 2. TASK FORCE — ARTISANAL DAIRY PROCESSING PROGRAM.
251. The artisanal dairy processing program task force
26is created within the department of agriculture and land
27stewardship for the purpose of exploring the feasibility
28of establishing an artisanal dairy processing program at a
29community college or at an institution governed by the state
30board of regents.
312. Members of the task force shall include all of the
32following:
33a. The secretary of agriculture or a designee of the
34secretary, who shall serve as chairperson.
35b. One member appointed by the president of northeast Iowa
-3-1community college. The member must be experienced in dairy
2science or the dairy business.
3c. Two members appointed by the president of Iowa state
4university of science and technology. The members must be
5knowledgable about dairy science or the dairy business. One of
6the members must be associated with the university’s extension
7and outreach programs.
8d. One member of the economic development authority
9appointed by the director of the authority. The member must be
10knowledgable regarding state finance programs.
11e. Two members appointed by the executive director of the
12Iowa state dairy association. The members must be actively
13engaged in milk production.
14f. Two members appointed by the secretary of agriculture.
15The members must own or operate a milk plant. One of the
16members must own or operate a small-to-medium-scale milk plant.
173. The members shall not be entitled to a per diem as
18specified in section 7E.6. Members shall not be entitled to
19actual and necessary expenses incurred while engaged in their
20official duties.
214. The department of agriculture and land stewardship shall
22provide the task force with staff and administrative support.
235. The task force shall consider staffing and equipment
24requirements, potential enrollment numbers, overall employment
25outlook for graduates, apprenticeship and internship
26opportunities, program costs, curriculum, and regulatory and
27legal requirements.
286. The task force shall submit a report by December 31,
292022, to the general assembly that includes the task force’s
30findings and recommendations.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill establishes a dairy processing and milk production
35innovation and revitalization fund (fund) and program (program)
-4-1to be administered by the economic development authority
2(authority), in consultation with the department of agriculture
3and land stewardship (department), and creates a task force
4to explore the feasibility of establishing an artisanal dairy
5processing program at a community college or at an institution
6governed by the state board of regents.
7The bill creates the fund in the state treasury under
8the control of the authority, which consists of any moneys
9appropriated to the fund by the general assembly and any other
10moneys available to the authority for placement in the fund.
11Moneys in the fund are appropriated to provide financial
12assistance (assistance) as provided under the program.
13“Financial assistance” is defined to include assistance in the
14form of grants, low-interest loans, and forgivable loans.
15The authority must use any moneys specifically appropriated
16to the program only for purposes of supporting the program.
17The appropriated moneys that remain unencumbered or unobligated
18at the close of the fiscal year do not revert but remain
19available for expenditure for the program until the close of
20the succeeding fiscal year. Not more than 5 percent of moneys
21in the fund at the beginning of the fiscal year can be used for
22program support.
23The authority, in consultation with the department, must
24establish and administer the program for the purpose of
25awarding assistance to eligible businesses for projects that
26expand or refurbish an existing, or establish a new, milk
27plant; expand or refurbish an existing, or establish a new,
28mobile dairy processing unit; rent buildings, refrigeration
29facilities, freezer facilities, or equipment necessary
30to expand processing capacity, including mobile dairy or
31refrigeration units; or incorporate methods and technologies
32that reduce farm labor associated with milk production and
33storage.
34The authority, in consultation with the department, must
35establish eligibility criteria for the program by rule, and the
-5-1criteria must include the requirements detailed in the bill.
2A business seeking assistance under the program must make
3application to the authority in the manner prescribed by the
4authority by rule. Applications must be accepted during one or
5more annual application periods determined by the authority by
6rule. After reviewing and scoring all applications received
7during an application period, and subject to funding, the
8authority, in consultation with the department, may award
9assistance to eligible businesses. A financial assistance
10award cannot exceed the amount of eligible project costs
11included in an eligible business’s application. The bill
12requires that priority be given to eligible businesses whose
13proposed project will create new dairy processing jobs; create
14or expand opportunities for local small-scale milk producers
15to market pasteurized milk and milk products under private
16labels; provide greater flexibility or convenience for local
17small-scale farmers to have milk processed; and reduce labor
18associated with the on-farm production and storage of milk.
19A business that is awarded assistance under the program may
20apply for assistance under other programs administered by the
21authority.
22The authority, in consultation with the department, is
23required to adopt rules to administer the fund and program.
24An artisanal dairy processing program task force is
25created within the department for the purpose of exploring
26the feasibility of establishing an artisanal dairy processing
27program at a community college or at an institution governed
28by the state board of regents. Members of the task force
29must include the secretary of agriculture or a designee and
30representatives of various groups and organizations interested
31in dairy processing and milk production. The department
32must provide the task force with staff and administrative
33support. The task force must consider staffing and equipment
34requirements, potential enrollment numbers, overall employment
35outlook for graduates, apprenticeship and internship
-6-1opportunities, program costs, curriculum, and regulatory and
2legal requirements.
3The bill requires the task force to submit a report by
4December 31, 2022, to the general assembly that includes the
5task force’s findings and recommendations.
-7-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 any 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 dairy processing 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 may use not more than five percent of
18the moneys in the fund at the beginning of each fiscal year
19for purposes of administrative costs, marketing, technical
20assistance, and other program support.
219. The authority shall, in consultation with the
22department, adopt rules pursuant to chapter 17A to administer
23this section.
24 Sec. 2. TASK FORCE — ARTISANAL DAIRY PROCESSING PROGRAM.
251. The artisanal dairy processing program task force
26is created within the department of agriculture and land
27stewardship for the purpose of exploring the feasibility
28of establishing an artisanal dairy processing program at a
29community college or at an institution governed by the state
30board of regents.
312. Members of the task force shall include all of the
32following:
33a. The secretary of agriculture or a designee of the
34secretary, who shall serve as chairperson.
35b. One member appointed by the president of northeast Iowa
-3-1community college. The member must be experienced in dairy
2science or the dairy business.
3c. Two members appointed by the president of Iowa state
4university of science and technology. The members must be
5knowledgable about dairy science or the dairy business. One of
6the members must be associated with the university’s extension
7and outreach programs.
8d. One member of the economic development authority
9appointed by the director of the authority. The member must be
10knowledgable regarding state finance programs.
11e. Two members appointed by the executive director of the
12Iowa state dairy association. The members must be actively
13engaged in milk production.
14f. Two members appointed by the secretary of agriculture.
15The members must own or operate a milk plant. One of the
16members must own or operate a small-to-medium-scale milk plant.
173. The members shall not be entitled to a per diem as
18specified in section 7E.6. Members shall not be entitled to
19actual and necessary expenses incurred while engaged in their
20official duties.
214. The department of agriculture and land stewardship shall
22provide the task force with staff and administrative support.
235. The task force shall consider staffing and equipment
24requirements, potential enrollment numbers, overall employment
25outlook for graduates, apprenticeship and internship
26opportunities, program costs, curriculum, and regulatory and
27legal requirements.
286. The task force shall submit a report by December 31,
292022, to the general assembly that includes the task force’s
30findings and recommendations.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill establishes a dairy processing and milk production
35innovation and revitalization fund (fund) and program (program)
-4-1to be administered by the economic development authority
2(authority), in consultation with the department of agriculture
3and land stewardship (department), and creates a task force
4to explore the feasibility of establishing an artisanal dairy
5processing program at a community college or at an institution
6governed by the state board of regents.
7The bill creates the fund in the state treasury under
8the control of the authority, which consists of any moneys
9appropriated to the fund by the general assembly and any other
10moneys available to the authority for placement in the fund.
11Moneys in the fund are appropriated to provide financial
12assistance (assistance) as provided under the program.
13“Financial assistance” is defined to include assistance in the
14form of grants, low-interest loans, and forgivable loans.
15The authority must use any moneys specifically appropriated
16to the program only for purposes of supporting the program.
17The appropriated moneys that remain unencumbered or unobligated
18at the close of the fiscal year do not revert but remain
19available for expenditure for the program until the close of
20the succeeding fiscal year. Not more than 5 percent of moneys
21in the fund at the beginning of the fiscal year can be used for
22program support.
23The authority, in consultation with the department, must
24establish and administer the program for the purpose of
25awarding assistance to eligible businesses for projects that
26expand or refurbish an existing, or establish a new, milk
27plant; expand or refurbish an existing, or establish a new,
28mobile dairy processing unit; rent buildings, refrigeration
29facilities, freezer facilities, or equipment necessary
30to expand processing capacity, including mobile dairy or
31refrigeration units; or incorporate methods and technologies
32that reduce farm labor associated with milk production and
33storage.
34The authority, in consultation with the department, must
35establish eligibility criteria for the program by rule, and the
-5-1criteria must include the requirements detailed in the bill.
2A business seeking assistance under the program must make
3application to the authority in the manner prescribed by the
4authority by rule. Applications must be accepted during one or
5more annual application periods determined by the authority by
6rule. After reviewing and scoring all applications received
7during an application period, and subject to funding, the
8authority, in consultation with the department, may award
9assistance to eligible businesses. A financial assistance
10award cannot exceed the amount of eligible project costs
11included in an eligible business’s application. The bill
12requires that priority be given to eligible businesses whose
13proposed project will create new dairy processing jobs; create
14or expand opportunities for local small-scale milk producers
15to market pasteurized milk and milk products under private
16labels; provide greater flexibility or convenience for local
17small-scale farmers to have milk processed; and reduce labor
18associated with the on-farm production and storage of milk.
19A business that is awarded assistance under the program may
20apply for assistance under other programs administered by the
21authority.
22The authority, in consultation with the department, is
23required to adopt rules to administer the fund and program.
24An artisanal dairy processing program task force is
25created within the department for the purpose of exploring
26the feasibility of establishing an artisanal dairy processing
27program at a community college or at an institution governed
28by the state board of regents. Members of the task force
29must include the secretary of agriculture or a designee and
30representatives of various groups and organizations interested
31in dairy processing and milk production. The department
32must provide the task force with staff and administrative
33support. The task force must consider staffing and equipment
34requirements, potential enrollment numbers, overall employment
35outlook for graduates, apprenticeship and internship
-6-1opportunities, program costs, curriculum, and regulatory and
2legal requirements.
3The bill requires the task force to submit a report by
4December 31, 2022, to the general assembly that includes the
5task force’s findings and recommendations.
-7-da/ns