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