House Study Bill 155 - IntroducedA Bill ForAn Act 1establishing a dairy innovation fund and program to be
2administered by the economic development authority.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  15E.371  Dairy innovation fund and
2program.
   31.  As used in this section unless the context otherwise
4requires:
   5a.  “Financial assistance” means assistance provided only
6from the moneys and assets legally available to the authority
7pursuant to this section and includes assistance in the form of
8grants, low-interest loans, and forgivable loans.
   9b.  “Fund” means the dairy innovation fund.
   10c.  “Located in” means the place or places at which
11a business’s operations are located and where at least
12ninety-eight percent of the business’s employees work, or where
13employees that are paid at least ninety-eight percent of the
14business’s payroll work.
   15d.  “Program” means the dairy innovation program.
   162.  a.  The fund is created in the state treasury under
17the control of the authority and consists of any moneys
18appropriated to the fund by the general assembly and any
19other moneys available to or obtained or accepted by the
20authority for placement in the fund. Moneys in the fund are
21appropriated to the authority to award financial assistance as
22provided under the program. The authority shall use any moneys
23specifically appropriated for purposes of this section only for
24the purposes of the program.
   25b.  Notwithstanding section 8.33, moneys in the fund
26that remain unencumbered or unobligated at the close of the
27fiscal year shall not revert but shall remain available for
28expenditure for the purposes designated until the close of the
29succeeding fiscal year.
   303.  The authority shall establish and administer the program
31for the purpose of awarding financial assistance to eligible
32businesses engaged in projects that do all of the following:
   33a.  Expand or refurbish existing milk plants or establish a
34new milk plant, operating pursuant to a permit issued pursuant
35to section 192.111.
-1-
   1b.  Expand or refurbish existing mobile dairy processing
2units, or establish new mobile dairy processing units.
   3c.  Rent building, refrigeration facilities, freezer
4facilities, or equipment necessary to expand dairy processing
5capacity, including mobile dairy or refrigeration units used
6exclusively for dairy processing.
   7d.  Incorporate methods and technologies that reduce farm
8labor associated with milk production and storage, including
9but not limited to the use of robotics and processes or systems
10that operate using computerized equipment or machinery.
   114.  The authority shall establish eligibility criteria for
12the program by rule. The eligibility criteria must include all
13of the following:
   14a.  The business must be located in this state.
   15b.  The business must not have been subject to any regulatory
16enforcement action related to federal, state, or local
17environmental, worker safety, food processing, or food safety
18laws, rules, or regulations within the last five years.
   19c.  The business must only employ individuals legally
20authorized to work in this state.
   21d.  The business must not currently be in bankruptcy.
   22e.  The business must employ less than fifty individuals.
   235.  A business seeking financial assistance under this
24section shall make application to the authority in the manner
25prescribed by the authority by rule.
   266.  Applications shall be accepted during one or more
27annual application periods to be determined by the authority
28by rule. Upon reviewing and scoring all applications that are
29received during an application period, and subject to funding,
30the authority may award financial assistance to eligible
31businesses. A financial assistance award shall not exceed
32the amount of eligible project costs included in the eligible
33business’s application. Priority shall be given to eligible
34businesses whose proposed project under subsection 3 will do
35any of the following:
-2-
   1a.  Create new jobs.
   2b.  Create or expand opportunities for local small-scale milk
3producers to market pasteurized milk and milk products under
4private labels.
   5c.  Provide greater flexibility or convenience for local
6small-scale farmers to have milk processed.
   7d.  Reduce labor associated with the on-farm production and
8storage of milk.
   97.  A business that is awarded financial assistance under
10this section may apply for financial assistance under other
11programs administered by the authority.
   128.  The authority shall adopt rules pursuant to chapter 17A
13to administer this section.
14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
   17This bill establishes a dairy innovation fund (fund) and
18dairy innovation program (program) to be administered by the
19economic development authority (authority).
   20The bill creates the fund in the state treasury under
21the control of the authority, which consists of any moneys
22appropriated to the fund by the general assembly and any other
23moneys available to the authority for placement in the fund.
24Moneys in the fund are appropriated to provide financial
25assistance (assistance) as provided under the program.
26“Financial assistance” is defined to include assistance in the
27form of grants, low-interest loans, and forgivable loans.
   28The authority must use any moneys specifically appropriated
29to the program only for purposes of supporting the program.
30The appropriated moneys that remain unencumbered or unobligated
31at the close of the fiscal year do not revert but remain
32available for expenditure for the program until the close of
33the succeeding fiscal year.
   34The authority must establish and administer the program for
35the purpose of awarding assistance to eligible businesses for
-3-1projects that expand or refurbish an existing, or establish
2a new, milk plant; expand or refurbish an existing, or
3establish a new, mobile dairy processing unit; rent buildings,
4refrigeration facilities, freezer facilities, or equipment
5necessary to expand processing capacity, including mobile dairy
6or refrigeration units; or incorporate methods and technologies
7that reduce farm labor associated with milk production and
8storage.
   9The authority must establish eligibility criteria for the
10program by rule, and the criteria must include the requirements
11detailed in the bill. A business seeking assistance under
12the program must make application to the authority in the
13manner prescribed by the authority by rule. Applications must
14be accepted during one or more annual application periods
15determined by the authority by rule. After reviewing and
16scoring all applications received during an application period,
17and subject to funding, the authority may award assistance
18to eligible businesses. A financial assistance award cannot
19exceed the amount of eligible project costs included in an
20eligible business’s application. The bill requires that
21priority be given to eligible businesses whose proposed project
22will create new jobs; create or expand opportunities for local
23small-scale milk producers to market pasteurized milk and milk
24products under private labels; provide greater flexibility
25or convenience for local small-scale farmers to have milk
26processed; and reduce labor associated with the on-farm
27production and storage of milk.
   28A business that is awarded assistance under the program may
29apply for assistance under other programs administered by the
30authority.
   31The authority is required to adopt rules to administer the
32fund and program.
-4-
da/ns