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HOUSE
FILE
1032
BY
COMMITTEE
ON
APPROPRIATIONS
(SUCCESSOR
TO
HF
550)
(SUCCESSOR
TO
HF
59)
(As
Amended
and
Passed
by
the
House
April
24,
2025
)
A
BILL
FOR
An
Act
creating
a
grocer
reinvestment
program,
a
local
produce
1
processing
grant
program,
and
a
grocer
reinvestment
and
2
local
food
processing
fund
under
the
purview
of
the
economic
3
development
authority,
and
modifying
the
local
food
and
farm
4
program.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
GROCER
REINVESTMENT
AND
LOCAL
PRODUCE
PROCESSING
2
Section
1.
NEW
SECTION
.
15.413
Grocer
reinvestment
program.
3
1.
As
used
in
this
section:
4
a.
“Financial
assistance”
means
assistance,
in
the
form
5
of
grants,
provided
only
from
the
funds
and
assets
legally
6
available
to
the
authority
pursuant
to
this
section.
7
b.
“Grocery
store”
means
an
establishment
also
known
as
a
8
supermarket
that
primarily
engages
in
retailing
a
general
line
9
of
food
including
canned
and
frozen
food;
fresh
fruits
and
10
vegetables;
and
fresh
and
prepared
meat,
fish,
and
poultry,
and
11
the
establishment
meets
either
of
the
following
requirements:
12
(1)
A
minimum
of
fifty
percent
of
the
retail
space
in
the
13
establishment
is
dedicated
to
retailing
a
general
line
of
food.
14
(2)
A
minimum
of
thirty
percent
of
the
establishment’s
15
revenue
derives
from
retailing
a
general
line
of
food.
16
c.
“Program”
means
the
grocer
reinvestment
program.
17
2.
The
authority
shall
establish
and
administer
the
program
18
for
the
purpose
of
awarding
financial
assistance
to
eligible
19
grocery
stores
for
the
following
projects
at
existing
grocery
20
stores,
or
new
grocery
stores
to
be
located
in
this
state:
21
a.
Capital
improvements
to
establish
or
expand
capacity,
22
including
expansions
and
modifications.
23
b.
Upgrades
to
utilities,
including
water,
electric,
heat,
24
refrigeration,
and
freezing
units.
25
c.
Purchases
of
equipment
and
furnishings.
26
d.
Expenditures
for
professional
services.
27
e.
Technology
that
allows
increased
capacity
or
business
28
resilience,
including
software
and
hardware
related
to
business
29
functions,
logistics,
inventory
management,
temperature
30
monitoring
controls,
cybersecurity,
and
internet
site
design
31
that
enables
electronic
commerce.
32
3.
The
authority
shall
establish
eligibility
criteria
for
33
the
program
by
rule.
The
eligibility
criteria
must
include
all
34
of
the
following:
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a.
The
grocery
store
has
filed
all
required
documents
with
1
the
secretary
of
state
under
the
relevant
filing
statute
as
2
described
in
section
9.11.
3
b.
The
grocery
store
is
organized
as
a
sole
proprietorship,
4
partnership,
limited
liability
company,
corporation,
5
cooperative,
nonprofit
organization,
or
nonprofit
community
6
development
entity.
7
c.
The
grocery
store
owns
ten
or
fewer
grocery
stores.
8
d.
The
grocery
store
has
the
capacity
to
successfully
9
implement
or
complete
the
project,
and
demonstrates
a
plan
for
10
sustainability.
11
4.
In
order
to
be
awarded
financial
assistance
under
the
12
program,
a
grocery
store
must
provide
matching
funds
for
the
13
project
equal
to
the
amount
of
the
financial
assistance
award.
14
Financial
assistance
awarded
under
the
program
shall
not
exceed
15
one
hundred
thousand
dollars.
16
5.
The
authority
shall
evaluate
applications,
and
priority
17
shall
be
given
to
the
grocery
stores
that
commit
to
all
of
the
18
following:
19
a.
Accepting
benefits
under
the
United
States
department
20
of
agriculture
supplemental
nutrition
assistance
program
and
21
the
special
supplemental
nutrition
program
for
women,
infants,
22
and
children.
23
b.
Creating
or
retaining
jobs
for
local
residents.
24
c.
Making
efforts
to
procure
and
offer
local
foods
for
sale.
25
d.
Other
criteria
determined
by
the
authority.
26
6.
The
authority
shall
prioritize
eligible
grocery
stores
27
based
on
the
population
size
of
the
community
in
which
the
28
eligible
grocery
store
is
located.
Priority
shall
be
given
29
to
eligible
grocery
stores
located
in
the
least-populated
30
communities.
31
7.
By
November
1,
2026,
and
each
November
1
thereafter,
32
if
financial
assistance
has
been
provided
in
the
immediately
33
preceding
fiscal
year,
the
director
shall
submit
a
report
to
34
the
general
assembly
describing
the
activities
of
the
program
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including
the
geographic
distribution
of
the
projects,
the
1
identity
of
the
applicants,
and
the
new
investments
or
new
jobs
2
created
as
a
result
of
the
financial
assistance
provided
under
3
the
program.
4
Sec.
2.
NEW
SECTION
.
15.415
Grocer
reinvestment
and
local
5
food
processing
fund.
6
1.
a.
A
grocer
reinvestment
and
local
food
processing
7
fund
is
created
in
the
state
treasury
under
the
control
of
the
8
authority.
The
fund
shall
consist
of
moneys
appropriated
by
9
the
general
assembly
to
the
authority
and
any
other
moneys
10
available
to,
obtained
by,
or
accepted
by
the
authority
11
for
placement
in
the
fund.
The
fund
shall
be
used
to
award
12
financial
assistance
as
provided
under
the
grocer
reinvestment
13
program
established
in
section
15.413
and
the
local
produce
14
processing
grant
program
established
in
section
187.331.
15
b.
Commencing
with
the
fiscal
year
beginning
July
1,
2025,
16
and
each
fiscal
year
thereafter,
one
hundred
thousand
dollars
17
of
the
annual
appropriation
to
the
fund,
or
ten
percent
of
the
18
moneys
in
the
fund
available
on
July
1,
whichever
is
less,
19
shall
be
allocated
to
the
local
produce
processing
grant
20
program
established
in
section
187.331.
21
c.
The
authority
may
use
not
more
than
five
percent
of
22
the
moneys
in
the
fund
at
the
beginning
of
the
fiscal
year
23
for
purposes
of
administrative
costs,
marketing,
technical
24
assistance,
and
other
program
support.
25
2.
Notwithstanding
section
8.33,
moneys
in
the
fund
26
that
remain
unencumbered
or
unobligated
at
the
close
of
the
27
fiscal
year
shall
not
revert
but
shall
remain
available
for
28
expenditure
for
the
purposes
designated
until
the
close
of
29
the
succeeding
fiscal
year.
Notwithstanding
section
12C.7,
30
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
31
to
the
fund.
32
Sec.
3.
NEW
SECTION
.
187.331
Local
produce
processing
grant
33
program.
34
1.
As
used
in
this
section:
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a.
“Local
produce”
means
fruits
and
vegetables
grown
in
this
1
state.
2
b.
“Local
produce
processing”
means
the
preparation
of
local
3
produce
for
human
consumption.
4
2.
The
department
shall
establish
and
administer
the
local
5
produce
processing
grant
program
for
the
purpose
of
awarding
6
grants
to
Iowa-based
entities
to
increase
the
availability
of
7
local
produce
processing.
In
administering
the
program,
the
8
department
shall
prioritize
grants
to
all
of
the
following:
9
a.
Iowa-based
entities
that
will
increase
any
of
the
10
following
as
it
relates
to
local
produce
processing:
11
(1)
Availability.
12
(2)
Access.
13
(3)
Efficiency.
14
(4)
Capacity.
15
b.
Iowa-based
entities
that
process
local
produce
from
three
16
or
more
Iowa
farms.
17
c.
A
person
participating
in
the
choose
Iowa
promotional
18
program
under
section
187.303.
19
d.
Iowa-based
entities
whose
local
produce
is
sold
or
20
distributed
to
a
grocery
store
eligible
for
the
grocer
21
reinvestment
program
under
section
15.413.
22
3.
An
Iowa-based
entity
whose
local
produce
processing
23
includes
local
produce
from
three
or
more
Iowa
farms
shall
be
24
eligible
for
a
grant
under
the
program
in
an
amount
that
is
two
25
times
the
maximum
grant
amount
set
by
the
department
for
the
26
value-added
agricultural
grant
program
under
section
187.321.
27
Sec.
4.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
28
to
designate
section
187.331,
as
enacted
in
this
division
of
29
this
Act,
as
part
4
of
subchapter
III,
chapter
187,
entitled
30
“Local
Produce
Processing
Grant
Program”.
31
DIVISION
II
32
LOCAL
FOOD
AND
FARM
PROGRAM
——
GROCERY
STORES
33
Sec.
5.
Section
267A.1,
subsection
1,
Code
2025,
is
amended
34
to
read
as
follows:
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1.
The
purpose
of
this
chapter
is
to
empower
farmers
,
and
1
food
entrepreneurs
,
and
grocery
stores
to
provide
for
strong
2
local
food
economies
that
promote
self-sufficiency
and
job
3
growth
in
the
agricultural
sector
and
allied
sectors
of
the
4
economy.
5
Sec.
6.
Section
267A.1,
subsection
2,
paragraph
d,
Code
6
2025,
is
amended
to
read
as
follows:
7
d.
Increase
the
number
of
jobs
in
this
state’s
farm
and
8
business
economies
associated
with
producing,
processing,
9
distributing,
retailing,
and
marketing
local
food.
10
Sec.
7.
Section
267A.1,
subsection
2,
Code
2025,
is
amended
11
by
adding
the
following
new
paragraph:
12
NEW
PARAGRAPH
.
e.
Increase
the
availability
and
viability
13
of
grocery
stores
in
this
state.
14
Sec.
8.
Section
267A.2,
Code
2025,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
4A.
“Grocery
store”
means
the
same
as
17
defined
in
section
15.413.
18
Sec.
9.
Section
267A.6,
subsection
2,
paragraphs
a
and
c,
19
Code
2025,
are
amended
to
read
as
follows:
20
a.
Improve
communication
and
cooperation
between
and
among
21
farmers,
food
entrepreneurs,
grocers,
and
consumers.
22
c.
Demonstrate
the
value
of
processing,
distributing,
23
retailing,
and
marketing
local
foods.
A
demonstration
project
24
must
be
capable
of
being
replicated
on
a
statewide
basis.
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