Bill Summary for H 182 (2021-2022)

Summary date: 

Feb 25 2021

Bill Information:

View NCGA Bill Details2021-2022 Session
House Bill 182 (Public) Filed Thursday, February 25, 2021
AN ACT TO STRENGTHEN THE MEAT AND SEAFOOD PROCESSING INDUSTRIES IN NORTH CAROLINA BY MAKING PERMANENT THE "INCREASING MEAT AND SEAFOOD PRODUCTION AND CAPACITY" GRANT PROGRAM.
Intro. by McNeely, Gillespie, Hanig, Elmore.

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Bill summary

Enacts new Article 49I, Increasing Meat Production and Capacity Grant Program in GS Chapter 106, providing as follows. States NCGA findings concerning the impact of COVID-19 on livestock producers and seafood processors. Establishes the Increasing Meat and Seafood Production and Capacity (IMSPAC) grant program to provide grants to reduce or prevent impacts on the supply chain for fresh meat in the state and to improve resiliency in future disruptions.

Requires the Department of Agriculture and Consumer Services (Department) to develop policies and procedures for disbursing IMSPAC grants and sets out minimum requirements for the program. Establishes capacity enhancement grants of up to $500,000, workforce development grants of up to $100,000, planning grants (specifies that no more than 5% of funds available in any grant cycle may be used for these grants), and new facility development grants of up to $1 million and sets out eligibility requirements for each type of grant. Defines an eligible meat or seafood processing facility as a food processing facility that meets both of the following: (1) the plant contracts with independent livestock producers or seafood harvesters to process animals or seafood and (2) the US Department of Agriculture contracts with Department inspectors to conduct federal inspection activities authorized by the Talmadge-Aiken Act of 1962 at the plant, the plant is otherwise regulated by the USDA or the FDA, or the plant is a State-inspected facility. Allows priority to be given to projects that will create additional jobs. Requires recipients to provide matching funds with amounts varying depending on the type of grant. Requires recipients of new facility development grants to keep the new facility in service for at least five years; requires recapturing the grant amount proportionate to the remainder of the minimum term that the recipient failed to keep the facility in service. Provides that if fixtures or equipment purchased with grant funds are disposed of during a period of time as the Department may specify following the date the fixtures or equipment funded by this act is placed in service, the grant recipient must repay a proportionate share of the grant funding received. Allows the adoption of temporary and permanent rules to implement the IMSPAC grant program.

Requires the State Controller to transfer $10 million for 2020-21 from the Coronavirus Relief Reserve and appropriates that amount from the Fund to the Office of State Budget and Management Services, to be allocated to the Department for the purposes of this act that are compatible with COVID-19 Recovery Legislation.

Appropriates $40 million for 2021-22 from the General Fund to the Department for the IMSPAC grant program. Effective July 1, 2021.

Restricts the use of the appropriated funds as follows: (1) no more than 35% may be used for grants to new or existing seafood processors; (2) no more than 50% may be used for new facility development grants.

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