Bill Text: IA HF580 | 2023-2024 | 90th General Assembly | Introduced

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Bill Title: A bill for an act establishing a dairy innovation fund and program to be administered by the department of agriculture and land stewardship.(Formerly HSB 155; See HF 700.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2023-04-13 - Withdrawn. H.J. 860. [HF580 Detail]

Download: Iowa-2023-HF580-Introduced.html

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House File 580 - Introduced
HOUSE FILE 580
BY COMMITTEE ON AGRICULTURE
(SUCCESSOR TO HSB 155)
A BILL FOR
An Act establishing a dairy innovation fund and program to
be administered by the department of agriculture and land
stewardship.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. NEW SECTION . 159.31A Dairy innovation fund and
program.
1. As used in this section unless the context otherwise
requires:
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 all of the
following:
a. Expand or refurbish existing milk plants or establish a
new milk plant, operating pursuant to a permit issued pursuant
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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
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H.F. 580
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.
Sec. 2. DIRECTIONS TO CODE EDITOR —— NEW PART. The Code
editor is directed to organize section 159.31A, as enacted in
this Act, as a new part under chapter 159, subchapter II.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill establishes a dairy innovation fund (fund) and
dairy innovation program (program) to be administered by the
department of agriculture and land stewardship (DALS).
The bill creates the fund in the state treasury under the
control of DALS, which consists of any moneys appropriated to
the fund by the general assembly and any other moneys available
to DALS for placement in the fund. Moneys in the fund are
appropriated to provide financial assistance (assistance) as
provided under the program. “Financial assistance” is defined
to include assistance in the form of grants, low-interest
loans, and forgivable loans.
DALS must use any moneys specifically appropriated to the
program only for purposes of supporting the program. The
appropriated moneys that remain unencumbered or unobligated
at the close of the fiscal year do not revert but remain
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available for expenditure for the program until the close of
the succeeding fiscal year.
DALS must establish and administer the program for the
purpose of awarding assistance to eligible businesses for
projects that expand or refurbish an existing, or establish
a new, milk plant; expand or refurbish an existing, or
establish a new, mobile dairy processing unit; rent buildings,
refrigeration facilities, freezer facilities, or equipment
necessary to expand processing capacity, including mobile
dairy or refrigeration units; and incorporate methods and
technologies that reduce farm labor associated with milk
production and storage.
DALS must establish eligibility criteria for the program
by rule, and the criteria must include the requirements
detailed in the bill. A business seeking assistance under the
program must make application to DALS in the manner prescribed
by DALS by rule. Applications must be accepted during one
or more annual application periods determined by DALS by
rule. After reviewing and scoring all applications received
during an application period, and subject to funding, DALS
may award assistance to eligible businesses. A financial
assistance award cannot exceed the amount of eligible project
costs included in an eligible business’s application. The
bill requires that priority be given to eligible businesses
whose proposed project will create new jobs; create or
expand opportunities for local small-scale milk producers
to market pasteurized milk and milk products under private
labels; provide greater flexibility or convenience for local
small-scale farmers to have milk processed; and reduce labor
associated with the on-farm production and storage of milk.
DALS is required to adopt rules to administer the fund and
program.
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