House
Study
Bill
155
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
AGRICULTURE
BILL
BY
CHAIRPERSON
SEXTON)
A
BILL
FOR
An
Act
establishing
a
dairy
innovation
fund
and
program
to
be
1
administered
by
the
economic
development
authority.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2145YC
(3)
90
da/ns
H.F.
_____
Section
1.
NEW
SECTION
.
15E.371
Dairy
innovation
fund
and
1
program.
2
1.
As
used
in
this
section
unless
the
context
otherwise
3
requires:
4
a.
“Financial
assistance”
means
assistance
provided
only
5
from
the
moneys
and
assets
legally
available
to
the
authority
6
pursuant
to
this
section
and
includes
assistance
in
the
form
of
7
grants,
low-interest
loans,
and
forgivable
loans.
8
b.
“Fund”
means
the
dairy
innovation
fund.
9
c.
“Located
in”
means
the
place
or
places
at
which
10
a
business’s
operations
are
located
and
where
at
least
11
ninety-eight
percent
of
the
business’s
employees
work,
or
where
12
employees
that
are
paid
at
least
ninety-eight
percent
of
the
13
business’s
payroll
work.
14
d.
“Program”
means
the
dairy
innovation
program.
15
2.
a.
The
fund
is
created
in
the
state
treasury
under
16
the
control
of
the
authority
and
consists
of
any
moneys
17
appropriated
to
the
fund
by
the
general
assembly
and
any
18
other
moneys
available
to
or
obtained
or
accepted
by
the
19
authority
for
placement
in
the
fund.
Moneys
in
the
fund
are
20
appropriated
to
the
authority
to
award
financial
assistance
as
21
provided
under
the
program.
The
authority
shall
use
any
moneys
22
specifically
appropriated
for
purposes
of
this
section
only
for
23
the
purposes
of
the
program.
24
b.
Notwithstanding
section
8.33,
moneys
in
the
fund
25
that
remain
unencumbered
or
unobligated
at
the
close
of
the
26
fiscal
year
shall
not
revert
but
shall
remain
available
for
27
expenditure
for
the
purposes
designated
until
the
close
of
the
28
succeeding
fiscal
year.
29
3.
The
authority
shall
establish
and
administer
the
program
30
for
the
purpose
of
awarding
financial
assistance
to
eligible
31
businesses
engaged
in
projects
that
do
all
of
the
following:
32
a.
Expand
or
refurbish
existing
milk
plants
or
establish
a
33
new
milk
plant,
operating
pursuant
to
a
permit
issued
pursuant
34
to
section
192.111.
35
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b.
Expand
or
refurbish
existing
mobile
dairy
processing
1
units,
or
establish
new
mobile
dairy
processing
units.
2
c.
Rent
building,
refrigeration
facilities,
freezer
3
facilities,
or
equipment
necessary
to
expand
dairy
processing
4
capacity,
including
mobile
dairy
or
refrigeration
units
used
5
exclusively
for
dairy
processing.
6
d.
Incorporate
methods
and
technologies
that
reduce
farm
7
labor
associated
with
milk
production
and
storage,
including
8
but
not
limited
to
the
use
of
robotics
and
processes
or
systems
9
that
operate
using
computerized
equipment
or
machinery.
10
4.
The
authority
shall
establish
eligibility
criteria
for
11
the
program
by
rule.
The
eligibility
criteria
must
include
all
12
of
the
following:
13
a.
The
business
must
be
located
in
this
state.
14
b.
The
business
must
not
have
been
subject
to
any
regulatory
15
enforcement
action
related
to
federal,
state,
or
local
16
environmental,
worker
safety,
food
processing,
or
food
safety
17
laws,
rules,
or
regulations
within
the
last
five
years.
18
c.
The
business
must
only
employ
individuals
legally
19
authorized
to
work
in
this
state.
20
d.
The
business
must
not
currently
be
in
bankruptcy.
21
e.
The
business
must
employ
less
than
fifty
individuals.
22
5.
A
business
seeking
financial
assistance
under
this
23
section
shall
make
application
to
the
authority
in
the
manner
24
prescribed
by
the
authority
by
rule.
25
6.
Applications
shall
be
accepted
during
one
or
more
26
annual
application
periods
to
be
determined
by
the
authority
27
by
rule.
Upon
reviewing
and
scoring
all
applications
that
are
28
received
during
an
application
period,
and
subject
to
funding,
29
the
authority
may
award
financial
assistance
to
eligible
30
businesses.
A
financial
assistance
award
shall
not
exceed
31
the
amount
of
eligible
project
costs
included
in
the
eligible
32
business’s
application.
Priority
shall
be
given
to
eligible
33
businesses
whose
proposed
project
under
subsection
3
will
do
34
any
of
the
following:
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a.
Create
new
jobs.
1
b.
Create
or
expand
opportunities
for
local
small-scale
milk
2
producers
to
market
pasteurized
milk
and
milk
products
under
3
private
labels.
4
c.
Provide
greater
flexibility
or
convenience
for
local
5
small-scale
farmers
to
have
milk
processed.
6
d.
Reduce
labor
associated
with
the
on-farm
production
and
7
storage
of
milk.
8
7.
A
business
that
is
awarded
financial
assistance
under
9
this
section
may
apply
for
financial
assistance
under
other
10
programs
administered
by
the
authority.
11
8.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
12
to
administer
this
section.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
establishes
a
dairy
innovation
fund
(fund)
and
17
dairy
innovation
program
(program)
to
be
administered
by
the
18
economic
development
authority
(authority).
19
The
bill
creates
the
fund
in
the
state
treasury
under
20
the
control
of
the
authority,
which
consists
of
any
moneys
21
appropriated
to
the
fund
by
the
general
assembly
and
any
other
22
moneys
available
to
the
authority
for
placement
in
the
fund.
23
Moneys
in
the
fund
are
appropriated
to
provide
financial
24
assistance
(assistance)
as
provided
under
the
program.
25
“Financial
assistance”
is
defined
to
include
assistance
in
the
26
form
of
grants,
low-interest
loans,
and
forgivable
loans.
27
The
authority
must
use
any
moneys
specifically
appropriated
28
to
the
program
only
for
purposes
of
supporting
the
program.
29
The
appropriated
moneys
that
remain
unencumbered
or
unobligated
30
at
the
close
of
the
fiscal
year
do
not
revert
but
remain
31
available
for
expenditure
for
the
program
until
the
close
of
32
the
succeeding
fiscal
year.
33
The
authority
must
establish
and
administer
the
program
for
34
the
purpose
of
awarding
assistance
to
eligible
businesses
for
35
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H.F.
_____
projects
that
expand
or
refurbish
an
existing,
or
establish
1
a
new,
milk
plant;
expand
or
refurbish
an
existing,
or
2
establish
a
new,
mobile
dairy
processing
unit;
rent
buildings,
3
refrigeration
facilities,
freezer
facilities,
or
equipment
4
necessary
to
expand
processing
capacity,
including
mobile
dairy
5
or
refrigeration
units;
or
incorporate
methods
and
technologies
6
that
reduce
farm
labor
associated
with
milk
production
and
7
storage.
8
The
authority
must
establish
eligibility
criteria
for
the
9
program
by
rule,
and
the
criteria
must
include
the
requirements
10
detailed
in
the
bill.
A
business
seeking
assistance
under
11
the
program
must
make
application
to
the
authority
in
the
12
manner
prescribed
by
the
authority
by
rule.
Applications
must
13
be
accepted
during
one
or
more
annual
application
periods
14
determined
by
the
authority
by
rule.
After
reviewing
and
15
scoring
all
applications
received
during
an
application
period,
16
and
subject
to
funding,
the
authority
may
award
assistance
17
to
eligible
businesses.
A
financial
assistance
award
cannot
18
exceed
the
amount
of
eligible
project
costs
included
in
an
19
eligible
business’s
application.
The
bill
requires
that
20
priority
be
given
to
eligible
businesses
whose
proposed
project
21
will
create
new
jobs;
create
or
expand
opportunities
for
local
22
small-scale
milk
producers
to
market
pasteurized
milk
and
milk
23
products
under
private
labels;
provide
greater
flexibility
24
or
convenience
for
local
small-scale
farmers
to
have
milk
25
processed;
and
reduce
labor
associated
with
the
on-farm
26
production
and
storage
of
milk.
27
A
business
that
is
awarded
assistance
under
the
program
may
28
apply
for
assistance
under
other
programs
administered
by
the
29
authority.
30
The
authority
is
required
to
adopt
rules
to
administer
the
31
fund
and
program.
32
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