Establishing a dairy innovation fund and program to be administered by the department of agriculture and land stewardship

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 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; or 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.