Bill Text: IA SSB3142 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for an act relating to small farm operations involved in the production of certain commodities that are unprocessed or processed, including by establishing programs to support production and marketing, and requiring government entities to provide a preference for certified small farm operators when purchasing food.
Spectrum: Unknown
Status: (Introduced - Dead) 2016-02-17 - 10:30AM; Senate Lobbyist Lounge Economic Growth. [SSB3142 Detail]
Download: Iowa-2015-SSB3142-Introduced.html
Senate
Study
Bill
3142
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
ECONOMIC
GROWTH
BILL
BY
CHAIRPERSON
HART)
A
BILL
FOR
An
Act
relating
to
small
farm
operations
involved
in
the
1
production
of
certain
commodities
that
are
unprocessed
or
2
processed,
including
by
establishing
programs
to
support
3
production
and
marketing,
and
requiring
government
entities
4
to
provide
a
preference
for
certified
small
farm
operators
5
when
purchasing
food.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
SMALL
FARM
OPERATION
PROGRAMS
2
Section
1.
NEW
SECTION
.
15E.371
Purpose.
3
The
purposes
of
this
division
are
to
encourage
and
4
promote
the
production
and
purchase
of
dedicated
commodities
5
and
dedicated
products
derived
locally
or
regionally
from
6
livestock,
milk,
or
specialty
crops
produced
on
small
farm
7
operations
in
order
to
improve
nutrition
for
the
citizens
of
8
Iowa,
and
to
strengthen
local
and
regional
farm
economies.
9
Sec.
2.
NEW
SECTION
.
15E.372
Definitions.
10
As
used
in
this
division,
unless
the
context
otherwise
11
requires:
12
1.
“Dedicated
commodity”
means
a
commodity
derived
from
13
livestock
or
a
specialty
crop
which
is
intended
for
human
14
consumption
in
its
raw
state
or
to
be
processed
into
a
15
dedicated
product.
16
2.
“Dedicated
product”
means
a
dedicated
commodity
that
has
17
been
processed
into
a
product
for
human
consumption.
18
3.
“Livestock”
includes
an
animal
of
bovine,
caprine,
ovine,
19
or
porcine
species;
ostrich,
emu,
or
rhea;
farm
deer
as
defined
20
in
section
170.1;
or
poultry.
21
4.
“Small
farm
operation”
means
agricultural
land
as
defined
22
in
section
9H.1,
located
in
this
state,
consisting
of
a
total
23
number
of
acres
that
does
not
exceed
thirty
percent
of
the
24
average
farm
size
in
the
state
as
determined
by
the
authority.
25
5.
“Small
farm
operator”
means
a
person
who
is
the
owner
or
26
lessee
of
a
small
farm
operation.
27
6.
“Specialty
crop”
means
any
crop
associated
with
28
horticulture
or
floriculture,
including
but
not
limited
to
29
fruits,
vegetables,
or
tree
nuts.
30
Sec.
3.
NEW
SECTION
.
15E.373
General
authority.
31
1.
The
authority
shall
administer
this
division
and
adopt
32
all
rules
necessary
to
carry
out
the
purposes
of
this
division
33
as
provided
in
section
15E.371.
34
2.
The
authority
shall
cooperate
with
the
Iowa
finance
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authority
and
the
department
of
agriculture
and
land
1
stewardship
in
administering
this
division.
2
3.
The
authority
may
employ
or
contract
with
a
consultant
or
3
specialist
to
assist
in
developing
and
implementing
a
plan
to
4
implement
this
division.
5
Sec.
4.
NEW
SECTION
.
15E.374
Qualifications.
6
In
order
to
qualify
to
participate
in
a
program
under
7
this
division,
a
person
shall
meet
all
of
the
requirements
8
established
by
the
authority
which
shall
include
at
least
all
9
of
the
following:
10
1.
Be
a
small
farm
operator.
The
small
farm
operator
may
11
be
an
individual,
a
partnership
under
chapter
486A,
a
family
12
farm
corporation
as
defined
in
section
9H.1,
or
a
family
farm
13
limited
liability
company
as
defined
in
section
9H.1.
14
2.
Be
a
resident
of
this
state.
If
the
person
is
a
15
partnership,
family
farm
corporation,
or
family
farm
limited
16
liability
company,
each
partner,
shareholder,
or
member
must
be
17
a
resident
of
this
state.
18
3.
Have
sufficient
education,
training,
or
experience
19
in
farming.
If
the
person
is
a
partnership,
family
farm
20
corporation,
or
family
farm
limited
liability
company,
each
21
partner,
shareholder,
or
member,
who
is
not
a
minor,
must
have
22
sufficient
education,
training,
or
experience
in
farming.
23
4.
Materially
participate
in
the
small
farm
operation
by
24
engaging
in
substantial
day-to-day
labor
and
management.
If
25
the
person
is
a
partnership,
family
farm
corporation,
or
family
26
farm
limited
liability
company,
each
partner,
shareholder,
or
27
member
must
materially
and
substantively
participate
in
the
28
small
farm
operation.
29
5.
Have
access
to
adequate
working
capital
and
production
30
items.
31
6.
Meet
the
low
or
moderate
net
worth
requirements
32
applicable
to
a
beginning
farmer
as
defined
in
section
16.58.
33
Sec.
5.
NEW
SECTION
.
15E.375
Small
farm
operator
financial
34
assistance
program.
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1.
A
small
farm
operator
financial
assistance
program
is
1
created
within
the
authority.
The
purpose
of
the
program
is
to
2
provide
financial
assistance
to
small
farm
operators
for
the
3
purpose
of
improving
or
expanding
an
existing
and
viable
small
4
farm
operation
or
for
engaging
in
a
cooperative
processing
or
5
marketing
venture
among
several
small
farm
operators.
6
2.
The
authority
may
provide
financial
assistance
in
the
7
form
of
an
interest
loan,
low-interest
loan,
no-interest
loan,
8
forgivable
loan,
grant,
or
a
combination
of
these
forms.
9
3.
The
maximum
amount
of
financial
assistance
for
a
small
10
farm
operator
under
the
program
is
as
follows:
11
a.
For
a
small
farm
operator
seeking
to
improve
or
expand
an
12
existing
viable
small
farm
operation,
twenty-five
percent
of
13
the
amount
of
credit
extended
to
the
small
farm
operator
by
an
14
eligible
lender,
as
defined
by
the
authority,
up
to
a
maximum
15
of
fifty
thousand
dollars.
16
b.
For
one
or
more
small
farm
operators
engaging
in
a
17
cooperative
processing
or
marketing
venture,
twenty-five
18
percent
of
the
amount
of
credit
extended
to
the
venture
by
an
19
eligible
lender,
as
defined
by
the
authority,
up
to
a
maximum
20
of
two
hundred
fifty
thousand
dollars.
21
4.
The
authority
shall
not
approve
an
application
to
22
refinance
an
existing
loan.
23
Sec.
6.
NEW
SECTION
.
15E.376
Small
farm
operator
processing
24
and
marketing
program.
25
1.
A
small
farm
operator
processing
and
marketing
program
26
is
created
within
the
authority.
The
purposes
of
the
program
27
are
to
expand
processing
and
promote
new
markets
for
dedicated
28
commodities
and
dedicated
products
produced
by
small
farm
29
operators.
30
2.
In
carrying
out
the
purposes
of
the
program,
the
31
authority
shall
do
all
of
the
following:
32
a.
Investigate
the
processing
and
marketing
of
dedicated
33
commodities
and
dedicated
products
produced
by
small
farm
34
operators
and
recommend
efficient
and
economical
methods
of
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processing
and
marketing.
1
b.
Promote
the
sale,
distribution,
and
merchandising
of
2
dedicated
commodities
and
dedicated
products
produced
by
small
3
farm
operators.
4
c.
Furnish
information
and
assistance
to
the
public
5
concerning
the
marketing
of
dedicated
commodities
and
dedicated
6
products
produced
by
small
farm
operators.
7
d.
Gather
and
diffuse
useful
information
concerning
all
8
phases
of
the
marketing
of
dedicated
commodities
and
dedicated
9
products
produced
by
small
farm
operators
in
cooperation
10
with
other
public
or
private
agencies.
The
authority
shall
11
cooperate
with
Iowa
state
university
of
science
and
technology
12
to
avoid
any
unnecessary
duplication
of
efforts.
13
e.
Ascertain
sources
of
supply
of
dedicated
commodities
14
and
dedicated
products
produced
by
small
farm
operators,
and
15
prepare
and
publish
from
time
to
time
lists
of
names
and
16
addresses
of
small
farm
operators,
processors,
and
marketers.
17
Sec.
7.
NEW
SECTION
.
15E.377
Small
farm
operations
fund.
18
1.
A
small
farm
operations
fund
is
created
in
the
state
19
treasury
as
a
revolving
fund
under
the
control
of
the
20
authority.
The
fund
shall
consist
of
any
moneys
appropriated
21
by
the
general
assembly
for
deposit
in
the
fund
and
any
other
22
moneys
available
to
and
obtained
or
accepted
by
the
authority
23
from
the
federal
government
or
private
sources
for
placement
24
in
the
fund.
25
2.
Moneys
in
the
fund
are
appropriated
exclusively
to
26
support
the
programs
created
in
this
division.
27
3.
Notwithstanding
section
12C.7,
interest
or
earnings
28
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
29
Notwithstanding
section
8.33,
moneys
credited
to
the
fund
that
30
remain
unexpended
or
unobligated
at
the
end
of
a
fiscal
year
31
shall
not
revert
to
any
other
fund.
32
Sec.
8.
NEW
SECTION
.
15E.378
Certification.
33
1.
Upon
application,
the
authority
shall
issue
an
annual
34
certificate
to
a
person
eligible
to
participate
in
a
program
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under
this
division
verifying
that
the
person
is
a
qualified
1
small
farm
operator,
regardless
of
whether
the
person
actually
2
participates
in
a
program.
3
2.
A
person
may
use
a
certificate
issued
to
the
person
4
under
this
section
as
proof
of
eligibility
for
a
benefit
under
5
other
programs
benefiting
small
farm
operators,
including
the
6
selling
of
dedicated
commodities
or
dedicated
products
to
the
7
department
of
administrative
services
pursuant
to
section
8
8A.315,
the
commission
for
the
blind
pursuant
to
section
9
216B.3,
the
board
of
directors
of
a
merged
area
pursuant
to
10
section
260C.19C,
the
board
of
regents
pursuant
to
section
11
262.9,
the
state
department
of
transportation
pursuant
to
12
section
307.21,
and
the
department
of
corrections
pursuant
to
13
section
904.312.
14
Sec.
9.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
15
organize
the
provisions
of
this
division
of
this
Act
as
a
new
16
division
in
chapter
15E.
17
DIVISION
II
18
PURCHASE
BY
GOVERNMENT
ENTITIES
19
Sec.
10.
Section
8A.315,
Code
2016,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
9.
When
providing
for
the
purchase
of
22
food,
the
department,
whenever
cost
competitive,
shall
purchase
23
dedicated
commodities
or
dedicated
products
produced
by
persons
24
certified
as
qualified
small
farm
operators
by
the
economic
25
development
authority
pursuant
to
section
15E.378.
26
Sec.
11.
Section
216B.3,
Code
2016,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
13A.
When
providing
for
the
purchase
of
29
food,
give
a
preference
to
purchasing
dedicated
commodities
or
30
dedicated
products
produced
by
persons
certified
as
qualified
31
small
farm
operators
by
the
economic
development
authority
32
pursuant
to
section
15E.378.
33
Sec.
12.
Section
260C.19C,
Code
2016,
is
amended
to
read
as
34
follows:
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260C.19C
Purchase
of
designated
biobased
certain
products.
1
The
board
of
directors
providing
services
to
a
merged
area
2
shall
give
preference
to
purchasing
designated
all
of
the
3
following:
4
1.
Dedicated
commodities
or
dedicated
products
produced
5
by
persons
certified
as
qualified
small
farm
operators
by
the
6
economic
development
authority
pursuant
to
section
15E.378.
7
2.
Designated
biobased
products
in
the
same
manner
as
8
provided
in
section
8A.317
.
9
Sec.
13.
Section
262.9,
Code
2016,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
6A.
When
providing
for
the
purchase
of
12
food,
give
a
preference
to
purchasing
dedicated
commodities
or
13
dedicated
products
produced
by
persons
certified
as
qualified
14
small
farm
operators
by
the
economic
development
authority
15
pursuant
to
section
15E.378.
16
Sec.
14.
Section
307.21,
Code
2016,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
6A.
The
administrator
shall,
when
19
providing
for
the
purchase
of
food,
give
a
preference
to
20
purchasing
dedicated
commodities
or
dedicated
products
produced
21
by
persons
certified
as
qualified
small
farm
operators
by
the
22
economic
development
authority
pursuant
to
section
15E.378.
23
Sec.
15.
Section
904.312,
Code
2016,
is
amended
by
adding
24
the
following
new
subsection:
25
NEW
SUBSECTION
.
3.
When
providing
for
the
purchase
of
food,
26
the
director
shall
give
a
preference
to
purchasing
dedicated
27
commodities
or
dedicated
products
produced
by
persons
certified
28
as
qualified
small
farm
operators
by
the
economic
development
29
authority
pursuant
to
section
15E.378.
30
DIVISION
III
31
IOWA
STATE
UNIVERSITY
32
Sec.
16.
NEW
SECTION
.
266.31
Small
farm
operations.
33
1.
The
Iowa
cooperative
extension
service
in
agriculture
34
and
home
economics
shall
develop
and
publish
materials
and
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sponsor
events
on
site
or
via
the
internet
regarding
best
1
methods,
practices,
and
strategies
for
use
by
small
farm
2
operators
qualified
to
participate
in
programs
created
in
3
chapter
15E,
division
XXVIII,
in
producing
and
marketing
4
dedicated
commodities
or
dedicated
products.
5
2.
The
materials
and
events
shall
be
developed
in
6
cooperation
with
small
farm
operators
as
defined
in
section
7
15E.372.
8
3.
The
materials
and
events
shall
be
made
available
or
9
sponsored
at
cost.
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
GENERAL.
This
bill
provides
assistance
to
a
person
who
owns
14
or
leases
not
more
than
a
total
number
of
acres
that
does
not
15
exceed
30
percent
of
the
average
farm
size
in
the
state
(small
16
farm
operator).
In
order
to
receive
assistance,
the
small
farm
17
operator
must
comply
with
certain
requirements.
The
person
18
must
be
in
business
as
an
individual
or
an
equity
holder
in
an
19
entity,
including
a
general
partnership
(Code
chapter
486A),
20
a
family
farm
corporation,
or
a
family
farm
limited
liability
21
company
(Code
chapter
9H).
The
individual
or
all
equity
22
holders
in
an
entity
must
be
Iowa
residents,
must
demonstrate
23
sufficient
education,
training,
or
experience
in
farming,
24
and
must
materially
participate
in
the
small
farm
operation
25
by
engaging
in
substantial
day-to-day
labor
and
management.
26
The
small
farm
operation
must
have
access
to
adequate
working
27
capital
and
production
items,
and
meet
low
or
moderate
net
28
worth
requirements
applicable
to
a
beginning
farmer
under
the
29
beginning
farmer
loan
program
(Code
chapter
16).
30
ASSISTANCE
PROGRAMS.
The
bill
creates
two
small
farm
31
operation
assistance
programs
administered
by
the
economic
32
development
authority
(authority).
The
first
is
a
small
farm
33
operator
financial
assistance
program
to
provide
financial
34
assistance
to
small
farm
operators
for
the
improvement
or
35
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_____
expansion
of
an
existing
farm
operation
or
for
engaging
in
1
a
cooperative
processing
or
marketing
venture
among
several
2
small
farm
operators.
The
assistance
may
be
in
the
form
of
an
3
interest
loan,
low-interest
loan,
no-interest
loan,
forgivable
4
loan,
grant,
or
a
combination
of
these
forms.
The
second
is
a
5
small
farm
operator
processing
and
marketing
program
to
expand
6
processing
and
promote
new
markets
for
dedicated
commodities
7
and
dedicated
products
produced
by
small
farm
operators.
The
8
bill
also
creates
a
small
farm
operations
fund
to
support
the
9
programs.
Finally,
the
bill
requires
the
authority
to
certify
10
that
a
small
farm
operator
is
eligible
to
participate
in
a
11
program
created
in
the
bill.
Such
certification
also
requires
12
certain
government
entities
to
provide
a
preference
to
the
13
small
farm
operators
when
purchasing
food.
14
PREFERENCE
REQUIRED
BY
STATE
ENTITIES
PURCHASING
FOOD.
The
15
department
of
administrative
services,
commission
for
the
16
blind,
merged
area
schools,
board
of
regents
institutions,
the
17
department
of
transportation,
and
the
department
of
corrections
18
must
provide
a
preference
to
a
certified
small
farm
operator
19
when
the
government
entity
purchases
food.
20
IOWA
STATE
UNIVERSITY.
The
Iowa
cooperative
extension
21
service
in
agriculture
and
home
economics
at
Iowa
state
22
university
must
develop
and
publish
materials
and
sponsor
23
events
to
assist
small
farm
operators
in
increasing
24
profitability.
25
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