Req. No. 2954 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 59th Legislature (2024) SENATE BILL 1325 By: Young AS INTRODUCED An Act relating to sow farms; creating the Oklahoma Rural Investment for Sow Farms Act of 2024; providing short title; establishing the Oklahoma Rural Investment for Sow Farms Program and authority to administer such Program; stating purpose ; authorizing certain expenditures; requiring promulgation of certain rules; creating the Oklahoma Rural Inv estment for Sow Farms Revolving Fund; providing for expenditures; establishing certain application criteria; providing certain exemption to Oklahoma Open Records Act; establishing review committee; making an appropriation; providing for codification; providing an effective date ; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Sect ion 5087.1 of Title 74, unless there is created a duplication in nu mbering, reads as follows: This act shall be known and may be c ited as the “Oklahoma Rural Investment for Sow Farms Act of 202 4”. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as S ection 5087.2 of Title 74, unless there is created a duplication in numbering, reads as follows: Req. No. 2954 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. The Oklahoma Department of Commerce is hereby authorized to establish and administer the Oklahoma Rural In vestment for Sow Farms Program. B. The purpose of the Oklahoma Rur al Investment for Sow Farms Program is to create investment and jobs in the p ig industry that align with traditional farming animal care values and to offset the costs of compliance with st ate and federal regulation s of agriculture facilities that currently us e extreme confinement gestation stalls or crates for pregnant sows, through the allocation of funds to farms, cooperatives, b usiness entities, and other agricultural entities to: 1. Update breeding sow facilities currently using individual gestation crates (typically measuring six and six-tenths [6.6] feet by two [2] feet per sow) into group housing pens, o f a minimum thirty-seven and six-tenths (37.6) square feet of usable floor space per sow, for pregnant sows; 2. Fund complete removal of gestation crat es; 3. Fund renovation of existing space and construction of group housing pens of a minimum thirty-seven and six-tenths (37.6) square feet of usable space per pregnant sow, and related structures, meeting Humane Farm Animal Care size minimum space st andards; and 4. Fund training of workers on methods of Humane Farm Animal Care standards for group housing techniques for pregnant sows. C. The Program shall consist of the following requirements: Req. No. 2954 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Removal of gestation crates; 2. Installation of group housing pens and related technology; 3. Training of management teams on huma ne methods, technology, and humane husbandry skills; 4. Pledge from grant recipient that all uses of individual gestation crates shall be phased out permanently and in perpetuity within three (3) years of accepting funds. Evidence of gestation crate use at any point in the future shall require all grant funds to be returned to this state. The pledge applies to all breeding sow entities, corporations, cooperatives, and farms associ ated with an individual applicant; 5. Additional rebates and incentives for participating farms that make the complete conversions within on e (1) year of grant application approval, to be established by the Department i n its regulations governing the Program, based on a per-sow scheme; and 6. Credits per sow for sow farms of four sows or more with pre- existing group, pasture -raised, hoop barns, or Certified Humane housing, prior to November 1, 202 4. D. The Oklahoma Department of Commerce shall promulgate rules governing the Oklahoma Rural Investment for Sow Farms Program. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes a s Section 5087.3 of Title 74, unless there is created a duplication in numbering, reads as follows: Req. No. 2954 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. There is hereby created in the State Treasury a revolvin g fund for the Oklahoma Department of Commerce to be designate d the “Oklahoma Rural Investment for Sow Farms Revolving Fund”. The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Oklahoma Department of Commerce for the purpose of implementing and maintaining the Oklahoma Rural Investment for Sow Far ms Program. All monies accruing to the credit of the fu nd are hereby appropriated and may be budgeted and expended by the Oklahoma Department of Commerce for the purpose provided for in this section . Expenditures from the fund shall be made upon warrants issued by the Sta te Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. B. Notwithstanding any other provisions of law, income and interest earnings on the fund shall accrue to the fund. SECTION 4. NEW LAW A new section of law to be codifie d in the Oklahoma Statutes as S ection 5087.4 of Title 74, unless there is created a duplication in numbering, reads as follows: A. The Oklahoma Department of Commerce shall require eligible applicants to submit information, forms, and reports as are necessary to properly and efficiently a dminister the Oklahoma Rural Investment for Sow Farms Program. Req. No. 2954 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. Persons may apply to the Oklahoma Department of Commerce for grant funds in accordanc e with rules promulgated by the Department. Applications for grant fu nds shall be approved or denied by the Department in accordance with criteria promulgated by the Department pursuant to the Okla homa Rural Investment for Sow Farms Program and hewing to the standards set fort h by Humane Farm Animal Care. C. Grant funds may be made available to eligible applicants pursuant to evaluation by the Depart ment based on the following criteria: 1. Preference may be given to the applicants whose: a. swine operations are licensed or registered with this state, b. employee or contractor qualifications include care er- tech certification, or higher education degre es, including associate degre es, or c. commitment to humane treatment of farm animals, with respect to their lives and habits, ha s been demonstrated; or, desire to commit to humane facilities for pregnant sows has been well documented and expressed; and 2. Consideration shall not be given to applica tions for: a. the construction of individual gestation crates, farrowing crates, or any farm facilities unrelated to the humane housing of breeding sow s, Req. No. 2954 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. farms outside of this state, c. individual or group pens smaller than thirty-seven and six-tenths (37.6) square feet of usable floor space per sow, d. facilities, companies, farms, and cooperatives that will or plan to co-produce or co-locate pregnant sows in confinement gestation stalls in o ther or associated barns in this state, e. facilities, companies, farms, and cooperatives that do not pledge to phase out co mpletely and in perpetuity within three (3) years of grant application date , or f. entities, facilities, corporations, or fa rms less than three (3) years old as of November 1, 202 4. D. 1. Any information submitted to or compiled by the Oklahoma Department of Commerce wi th respect to the financial statements, trade secrets, or any other proprietary information of persons, firms, associations, partnerships , agencies, corporations, institutions of higher education, nonprofit research institutions , or other entities pursuant to the Oklahoma Rural Investment for Sow Farms Program shall not be disc losed pursuant to the Oklahoma Open Records Act or in public hea rings and shall be kept con fidential, except to the extent that the person or entity which provided such information or which is the subject of such information consents to disclosure. Req. No. 2954 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. An independent committee of reviewers, no fewer than three and no more than seven, comprised entirely and equally of qualified veterinarians, farmers, and experie nced animal well-being experts, appointed by the Governor, shall be designated to analyze and recommend projects for approval by the Oklahoma Department of Commerce. This review committee shall not be exem pt from the Oklahoma Open Meeting Act. SECTION 5. There is hereby appropriated to the Oklahoma Department of Commerce from any monies not otherwise appropriated from the General Revenue Fund of the State Treasury for the fiscal year ending June 30, 2025, the sum of Forty-seven Million Dollars ($47,000,000.00) to transfer to the Oklahoma Rural Investment for Sow Farms Revolving Fund created pursu ant to Section 3 of this act. SECTION 6. This act shall become effective July 1, 2024. SECTION 7. It being immediately necessary for the preser vation of the public peace, hea lth or safety, an emergency is hereby declared to exist, by reason whereof thi s act shall take effect and be in full force from and after its passage and appro val. 59-2-2954 CN 12/14/2023 11:47:33 AM