House File 700 - EnrolledAn Actestablishing a dairy innovation fund and program to
be administered by the department of agriculture and land
   Section 1.  NEW SECTION.  159.31A  Dairy innovation fund and
   1.  As used in this section unless the context otherwise
   a.  “Financial assistance” means assistance provided only
from the moneys and assets legally available to the department
pursuant to this section and includes assistance in the form of
grants, low-interest loans, and forgivable loans.
   b.  “Fund” means the dairy innovation fund.
   c.  “Located in” means the place or places at which
a business’s operations are located and where at least
ninety-eight percent of the business’s employees work, or where
employees that are paid at least ninety-eight percent of the
business’s payroll work.
   d.  “Program” means the dairy innovation program.
   2.  a.  The fund is created in the state treasury under
the control of the department and consists of any moneys
appropriated to the fund by the general assembly and any other
moneys available to or obtained or accepted by the department
for placement in the fund. Moneys in the fund are appropriated
to the department to award financial assistance as provided
under the program. The department shall use any moneys
specifically appropriated for purposes of this section only for
the purposes of the program.
   b.  Notwithstanding section 8.33, moneys in the fund
that remain unencumbered or unobligated at the close of the
fiscal year shall not revert but shall remain available for
expenditure for the purposes designated until the close of the
succeeding fiscal year.
   3.  The department shall establish and administer the
program for the purpose of awarding financial assistance to
eligible businesses engaged in projects that do one or more of
the following:
   a.  Expand or refurbish existing milk plants or establish a
new milk plant, operating pursuant to a permit issued pursuant
-1-to section 192.111.
   b.  Expand or refurbish existing mobile dairy processing
units, or establish new mobile dairy processing units.
   c.  Rent buildings, refrigeration facilities, freezer
facilities, or equipment necessary to expand dairy processing
capacity, including mobile dairy or refrigeration units used
exclusively for dairy processing.
   d.  Incorporate methods and technologies that reduce farm
labor associated with milk production and storage, including
but not limited to the use of robotics and processes or systems
that operate using computerized equipment or machinery.
   4.  The department shall establish eligibility criteria for
the program by rule. The eligibility criteria must include all
of the following:
   a.  The business must be located in this state.
   b.  The business must not have been subject to any regulatory
enforcement action related to federal, state, or local
environmental, worker safety, food processing, or food safety
laws, rules, or regulations within the last five years.
   c.  The business must only employ individuals legally
authorized to work in this state.
   d.  The business must not currently be in bankruptcy.
   e.  The business must employ less than fifty individuals.
   5.  A business seeking financial assistance under this
section shall make application to the department in the manner
prescribed by the department by rule.
   6.  Applications shall be accepted during one or more annual
application periods to be determined by the department by
rule. Upon reviewing and scoring all applications that are
received during an application period, and subject to funding,
the department may award financial assistance to eligible
businesses. A financial assistance award shall not exceed
the amount of eligible project costs included in the eligible
business’s application. Priority shall be given to eligible
businesses whose proposed project under subsection 3 will do
-2-any of the following:
   a.  Create new jobs.
   b.  Create or expand opportunities for local small-scale milk
producers to market pasteurized milk and milk products under
private labels.
   c.  Provide greater flexibility or convenience for local
small-scale farmers to have milk processed.
   d.  Reduce labor associated with the on-farm production and
storage of milk.
   7.  A business that is awarded financial assistance under
this section may apply for financial assistance under other
programs administered by the authority.
   8.  The department shall adopt rules pursuant to chapter 17A
to administer this section.
editor is directed to organize section 159.31A, as enacted in
this Act, as a new part under chapter 159, subchapter II.
PAT GRASSLEYSpeaker of the House
AMY SINCLAIRPresident of the Senate
   I hereby certify that this bill originated in the House and is known as House File 700, Ninetieth General Assembly.______________________________
MEGHAN NELSONChief Clerk of the House
Approved _______________, 2023______________________________