Establishing a dairy processing and milk production innovation and revitalization fund and program to be administered by the economic development authority, in consultation with the department of agriculture and land stewardship, and creating a task force to explore the feasibility of establishing an artisanal dairy processing program at a community college or at an institution governed by the state board of regents

This bill establishes a dairy processing and milk production innovation and revitalization fund (fund) and program (program) to be administered by the economic development authority (authority), in consultation with the department of agriculture and land stewardship (department), and creates a task force to explore the feasibility of establishing an artisanal dairy processing program at a community college or at an institution governed by the state board of regents. The bill creates the fund in the state treasury under the control of the authority, which consists of any moneys appropriated to the fund by the general assembly and any other moneys available to the authority 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. The authority 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 available for expenditure for the program until the close of the succeeding fiscal year. Not more than percent of moneys in the fund at the beginning of the fiscal year can be used for program support. The authority, in consultation with the department, 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; or incorporate methods and technologies that reduce farm labor associated with milk production and storage. The authority, in consultation with the department, 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 the authority in the manner prescribed by the authority by rule. Applications must be accepted during one or more annual application periods determined by the authority by rule. After reviewing and scoring all applications received during an application period, and subject to funding, the authority, in consultation with the department, 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 dairy processing 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. A business that is awarded assistance under the program may apply for assistance under other programs administered by the authority. The authority, in consultation with the department, is required to adopt rules to administer the fund and program. An artisanal dairy processing program task force is created within the department for the purpose of exploring the feasibility of establishing an artisanal dairy processing program at a community college or at an institution governed by the state board of regents. Members of the task force must include the secretary of agriculture or a designee and representatives of various groups and organizations interested in dairy processing and milk production. The department must provide the task force with staff and administrative support. The task force must consider staffing and equipment requirements, potential enrollment numbers, overall employment outlook for graduates, apprenticeship and internship opportunities, program costs, curriculum, and regulatory and legal requirements. The bill requires the task force to submit a report by December 31, 2022, to the general assembly that includes the task force’s findings and recommendations.