GROCERY ACT-GRANTS

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2531

Introduced 2/4/2025, by Rep. Mary Beth Canty

SYNOPSIS AS INTRODUCED:

20 ILCS 750/5
20 ILCS 750/15

Amends the Grocery Initiative Act. Provides that Grocery Initiative
Grants may be used to provide access to equipment that is needed to accept
payment from the Women, Infant, Children's program (WIC). Makes changes to
the definition of "grocery store" to include certain meat retailers, fruit
and vegetable retailers, and fish and seafood retailers. Effective July 1,
2025.
LRB104 09581 HLH 19644 b

A BILL FOR

HB2531
LRB104 09581 HLH 19644 b
1

AN ACT concerning State government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Grocery Initiative Act is amended by
5
changing Sections 5 and 15 as follows:

6

(20 ILCS 750/5)
7

Sec. 5.
Definitions.
In this Act:
8

"Cooperative" means an organization that is organized
9
according to the Co-operative Act.
10

"Department" means the Department of Commerce and Economic
11
Opportunity.
12

"Food desert" means a census tract that:
13

(1) meets one of the following poverty standards:
14

(A) the census tract has a poverty rate of at least
15

20%; or
16

(B) the census tract is not located within a
17

metropolitan statistical area and has a median family
18

income that is less than or equal to 80% of the
19

statewide median household income; or
20

(C) the census tract is located within a
21

metropolitan statistical area and has a median family
22

income that is less than or equal to 80% of the greater
23

of (i) the statewide median household income or (ii)

HB2531
- 2 -
LRB104 09581 HLH 19644 b
1

the metropolitan area median family income; and
2

(2) meets one of the following population density and
3

food accessibility standards:
4

(A) the census tract is a rural tract, and at least
5

33% of the population of the tract or at least 500
6

residents in the tract reside more than 10 miles from
7

the nearest grocery store; or
8

(B) the census tract is an urban tract, and at
9

least 33% of the population of the tract or at least
10

500 residents in the tract reside more than one-half
11

mile from the nearest grocery store.
12

The Department may also designate an area that does not
13
meet the standards set forth in this definition as a food
14
desert if the designation is made in accordance with criteria
15
established by the Department by rule using data that
16
includes, but is not limited to, poverty metrics and access to
17
existing grocery stores.
18

"Grocery store" means an existing or planned retail
19
establishment that: (1) has or will have a primary business of
20
selling a variety of grocery products, including fresh
21
produce; (2) derives or will derive no more than 30% of its
22
revenue from sales of tobacco and alcohol in any given year;
23
(3) is or will be classified as
(i)
a supermarket or other
24
grocery retailer in the 2022 North American Industry
25
Classification System under code 445110
, (ii) a meat retailer
26
in the 2022 North American Industry Classification System

HB2531
- 3 -
LRB104 09581 HLH 19644 b
1
under code 44524, (iii) a fruit and vegetable retailer in the
2
2022 North American Industry Classification System under code
3
44523, or (iv) a fish and seafood retailer in the 2022 North
4
American Industry Classification System under code 44525
; (4)
5
accepts or will accept Supplemental Nutrition Assistance
6
Program benefits and Special Supplemental Nutrition Program
7
for Women, Infants, and Children benefits; and (5) provides or
8
will provide for the retail sale of a substantial variety of
9
perishable foods, including fresh or frozen dairy products,
10
fresh produce, and fresh meats, poultry, and fish.
11

"Local governmental unit" means any county, municipality,
12
township, special district, or unit that is designated as a
13
unit of local government by law and exercises limited
14
governmental powers or powers in respect to limited
15
governmental subjects. "Local governmental unit" also includes
16
any school district or community college district.
17

"Not-for-profit corporation" means an organization or
18
institution that is organized and conducted on a
19
not-for-profit basis with no personal profit inuring to anyone
20
as a result of the operation and that is organized according to
21
the General Not For Profit Corporation Act of 1986.
22

"Rural tract" means a census tract that is not an urban
23
tract.
24

"Urban tract" means a census tract having its geographic
25
centroid in an urban area, as defined by the Bureau of the
26
Census for the most recent year in which all relevant data to

HB2531
- 4 -
LRB104 09581 HLH 19644 b
1
identify food deserts is available.
2
(Source: P.A. 103-561, eff. 1-1-24.)

3

(20 ILCS 750/15)
4

Sec. 15.
Grocery Initiative Grants and Financial Support.
5

(a) The Department shall, subject to appropriation,
6
establish the Grocery Initiative to expand access to healthy
7
foods in food deserts in Illinois and areas at risk of becoming
8
food deserts in Illinois by providing grants and other forms
9
of financial assistance to independently owned for-profit
10
grocery stores, cooperative grocery stores, or not-for-profit
11
grocery stores, as well as grocery stores owned and operated
12
by local governmental units. The Department may enter into
13
contracts, grants, or other agreements to administer these
14
grants and other forms of financial assistance. The Department
15
may, by rule, place limits on the size of the grocery stores
16
that are eligible for grants and other financial assistance
17
under this Act, including, but not limited to, limits on the
18
annual revenue or projected revenue of the applicant, number
19
of full-time employees, or square footage of the facilities.
20
The Department may prioritize grant awards and loan funding to
21
applicants based on poverty rates, income, geographic
22
diversity, local ownership, access to grocery stores in the
23
area surrounding proposed project locations, and other factors
24
as determined by the Department. The Department may award
25
grants or provide loans for any one or more of the following:

HB2531
- 5 -
LRB104 09581 HLH 19644 b
1

(1) market and site feasibility studies, promotional
2

materials, and marketing;
3

(2) salaries and benefits for workers;
4

(3) rent or a down payment to acquire a facility;
5

(4) purchase of ownership of a grocery store as part
6

of establishing a new grocery store;
7

(5) capital improvements, planning, renovations, land
8

acquisition, demolition, durable and non-durable equipment
9

purchases; or
10

(6) other costs as determined eligible by the
11

Department.
12

(b) The Department may, subject to appropriation, provide
13
grants for equipment upgrades for existing independently owned
14
for-profit grocery stores, cooperative grocery stores,
15
not-for-profit grocery stores, or farmer-owned grocery stores
16
or markets. The Department shall use no more than 20% of total
17
program funding for this purpose. Equipment upgrades shall be
18
focused on providing access to equipment that is energy
19
efficient
and to provide access to equipment that is needed to
20
accept payment from the Women, Infant, Children's program
21
(WIC)
.
22
(Source: P.A. 103-561, eff. 1-1-24; 103-957, eff. 1-1-25
.)

23

Section 99.
Effective date.
This Act takes effect July 1,
24
2025.

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