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House
File
550
-
Introduced
HOUSE
FILE
550
BY
COMMITTEE
ON
ECONOMIC
GROWTH
AND
TECHNOLOGY
(SUCCESSOR
TO
HF
59)
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,
modifying
the
local
food
and
farm
4
program,
and
making
appropriations.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
1325HV
(2)
91
nls/ko
H.F.
550
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.
11
c.
“Program”
means
the
grocer
reinvestment
program.
12
2.
The
authority
shall
establish
and
administer
the
program
13
for
the
purpose
of
awarding
financial
assistance
to
eligible
14
grocery
stores
for
the
following
projects
at
existing
grocery
15
stores,
or
new
grocery
stores
to
be
located
in
this
state:
16
a.
Capital
improvements
to
establish
or
expand
capacity,
17
including
expansions
and
modifications.
18
b.
Upgrades
to
utilities,
including
water,
electric,
heat,
19
refrigeration,
and
freezing
units.
20
c.
Purchases
of
equipment
and
furnishings.
21
d.
Expenditures
for
professional
services.
22
e.
Technology
that
allows
increased
capacity
or
business
23
resilience,
including
software
and
hardware
related
to
business
24
functions,
logistics,
inventory
management,
temperature
25
monitoring
controls,
cybersecurity,
and
internet
site
design
26
that
enables
electronic
commerce.
27
3.
The
authority
shall
establish
eligibility
criteria
for
28
the
program
by
rule.
The
eligibility
criteria
must
include
all
29
of
the
following:
30
a.
The
grocery
store
has
filed
all
required
documents
with
31
the
secretary
of
state
under
the
relevant
filing
statute
as
32
described
in
section
9.11.
33
b.
The
grocery
store
is
organized
as
a
sole
proprietorship,
34
partnership,
limited
liability
company,
corporation,
35
-1-
LSB
1325HV
(2)
91
nls/ko
1/
8
H.F.
550
cooperative,
nonprofit
organization,
or
nonprofit
community
1
development
entity.
2
c.
The
grocery
store
owns
ten
or
fewer
grocery
stores.
3
d.
The
grocery
store
has
the
capacity
to
successfully
4
implement
or
complete
the
project,
and
demonstrates
a
plan
for
5
sustainability.
6
e.
The
grocery
store
is
located
in
a
community
with
a
7
population
of
twenty
thousand
or
fewer
and
is
not
contiguous
to
8
a
city
with
a
population
of
forty
thousand
or
greater.
9
4.
In
order
to
be
awarded
financial
assistance
under
the
10
program,
a
grocery
store
must
provide
matching
funds
for
the
11
project
equal
to
the
amount
of
the
financial
assistance
award.
12
Financial
assistance
awarded
under
the
program
shall
not
exceed
13
one
hundred
thousand
dollars.
14
5.
The
authority
shall
evaluate
applications,
and
priority
15
shall
be
given
to
the
grocery
stores
that
commit
to
all
of
the
16
following:
17
a.
Accepting
benefits
under
the
United
States
department
18
of
agriculture
supplemental
nutrition
assistance
program
and
19
the
special
supplemental
nutrition
program
for
women,
infants,
20
and
children.
21
b.
Creating
or
retaining
jobs
for
local
residents.
22
c.
Making
efforts
to
procure
and
offer
local
foods
for
sale.
23
d.
Other
criteria
determined
by
the
authority.
24
6.
By
November
1,
2026,
and
each
November
1
thereafter,
25
if
financial
assistance
has
been
provided
in
the
immediately
26
preceding
fiscal
year,
the
director
shall
submit
a
report
to
27
the
general
assembly
describing
the
activities
of
the
program
28
including
the
geographic
distribution
of
the
projects,
the
29
identity
of
the
applicants,
and
the
new
investments
or
new
jobs
30
created
as
a
result
of
the
financial
assistance
provided
under
31
the
program.
32
Sec.
2.
NEW
SECTION
.
15.414
Local
produce
processing
grant
33
program.
34
1.
As
used
in
this
section:
35
-2-
LSB
1325HV
(2)
91
nls/ko
2/
8
H.F.
550
a.
“Local
produce”
means
fruits
and
vegetables
grown
in
this
1
state.
2
b.
“Local
produce
and
processing”
means
the
preparation
of
3
local
produce
for
human
consumption.
4
2.
a.
The
authority
shall
establish
and
administer
5
the
local
produce
processing
grant
program
for
the
purpose
6
of
awarding
grants
to
Iowa-based
entities
to
increase
the
7
availability
of
local
produce
processing.
In
administering
the
8
program,
the
authority
shall
prioritize
grants
to
Iowa-based
9
entities
that
will
increase
any
of
the
following
as
it
relates
10
to
local
produce
processing:
11
(1)
Availability.
12
(2)
Access.
13
(3)
Efficiency.
14
(4)
Capacity.
15
b.
A
grant
shall
not
be
awarded
to
an
entity
unless
the
16
local
produce
processing
includes
local
produce
from
multiple
17
Iowa-based
farms.
18
3.
The
authority
may
adopt
rules
pursuant
to
chapter
17A
to
19
administer
this
section.
20
Sec.
3.
NEW
SECTION
.
15.415
Grocer
reinvestment
and
local
21
food
processing
fund.
22
1.
a.
A
grocer
reinvestment
and
local
food
processing
23
fund
is
created
in
the
state
treasury
under
the
control
of
24
the
authority.
The
fund
shall
consist
of
moneys
appropriated
25
to
the
authority
and
any
other
moneys
available
to,
obtained
26
by,
or
accepted
by
the
authority
for
placement
in
the
fund.
27
The
fund
shall
be
used
to
award
financial
assistance
as
28
provided
under
the
grocer
reinvestment
program
established
in
29
section
15.413
and
the
local
produce
processing
grant
program
30
established
in
section
15.414.
31
b.
Commencing
with
the
fiscal
year
beginning
July
1,
2025,
32
and
each
fiscal
year
thereafter,
one
hundred
thousand
dollars
33
of
the
annual
appropriation
to
the
fund,
or
ten
percent
of
the
34
moneys
in
the
fund
available
on
July
1,
whichever
is
less,
35
-3-
LSB
1325HV
(2)
91
nls/ko
3/
8
H.F.
550
shall
be
allocated
to
the
local
produce
processing
grant
1
program
established
in
section
15.414.
2
c.
The
authority
may
use
not
more
than
five
percent
of
3
the
moneys
in
the
fund
at
the
beginning
of
the
fiscal
year
4
for
purposes
of
administrative
costs,
marketing,
technical
5
assistance,
and
other
program
support.
6
2.
Notwithstanding
section
8.33,
moneys
in
the
fund
7
that
remain
unencumbered
or
unobligated
at
the
close
of
the
8
fiscal
year
shall
not
revert
but
shall
remain
available
for
9
expenditure
for
the
purposes
designated
until
the
close
of
10
the
succeeding
fiscal
year.
Notwithstanding
section
12C.7,
11
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
12
to
the
fund.
13
DIVISION
II
14
LOCAL
FOOD
AND
FARM
PROGRAM
——
GROCERY
STORES
15
Sec.
4.
Section
267A.1,
subsection
1,
Code
2025,
is
amended
16
to
read
as
follows:
17
1.
The
purpose
of
this
chapter
is
to
empower
farmers
,
and
18
food
entrepreneurs
,
and
grocery
stores
to
provide
for
strong
19
local
food
economies
that
promote
self-sufficiency
and
job
20
growth
in
the
agricultural
sector
and
allied
sectors
of
the
21
economy.
22
Sec.
5.
Section
267A.1,
subsection
2,
paragraph
d,
Code
23
2025,
is
amended
to
read
as
follows:
24
d.
Increase
the
number
of
jobs
in
this
state’s
farm
and
25
business
economies
associated
with
producing,
processing,
26
distributing,
retailing,
and
marketing
local
food.
27
Sec.
6.
Section
267A.1,
subsection
2,
Code
2025,
is
amended
28
by
adding
the
following
new
paragraph:
29
NEW
PARAGRAPH
.
e.
Increase
the
availability
and
viability
30
of
grocery
stores
in
this
state.
31
Sec.
7.
Section
267A.2,
Code
2025,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
4A.
“Grocery
store”
means
the
same
as
34
defined
in
section
15.413.
35
-4-
LSB
1325HV
(2)
91
nls/ko
4/
8
H.F.
550
Sec.
8.
Section
267A.6,
subsection
2,
paragraphs
a
and
c,
1
Code
2025,
are
amended
to
read
as
follows:
2
a.
Improve
communication
and
cooperation
between
and
among
3
farmers,
food
entrepreneurs,
grocers,
and
consumers.
4
c.
Demonstrate
the
value
of
processing,
distributing,
5
retailing,
and
marketing
local
foods.
A
demonstration
project
6
must
be
capable
of
being
replicated
on
a
statewide
basis.
7
DIVISION
III
8
APPROPRIATIONS
9
Sec.
9.
GROCER
REINVESTMENT
FUND
——
FY
2025-2026.
There
10
is
appropriated
from
the
general
fund
of
the
state
to
the
11
economic
development
authority
for
the
fiscal
year
beginning
12
July
1,
2025,
and
ending
June
30,
2026,
the
following
amount,
13
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
14
designated:
15
For
deposit
in
the
grocer
reinvestment
and
local
food
16
processing
fund
created
in
section
15.415:
17
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
18
Sec.
10.
GROCER
REINVESTMENT
FUND
——
FY
2026-2027.
There
19
is
appropriated
from
the
general
fund
of
the
state
to
the
20
economic
development
authority
for
the
fiscal
year
beginning
21
July
1,
2026,
and
ending
June
30,
2027,
the
following
amount,
22
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
23
designated:
24
For
deposit
in
the
grocer
reinvestment
and
local
food
25
processing
fund
created
in
section
15.415:
26
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
creates
a
grocer
reinvestment
program
(grocer
31
program),
a
local
produce
processing
grant
program
(processing
32
program),
a
grocer
reinvestment
and
local
food
processing
fund
33
(fund),
and
makes
appropriations.
34
DIVISION
I.
The
bill
defines
“grocery
store”
to
mean
an
35
-5-
LSB
1325HV
(2)
91
nls/ko
5/
8
H.F.
550
establishment
also
known
as
a
supermarket
that
primarily
1
engages
in
retailing
a
general
line
of
food
including
canned
2
and
frozen
food;
fresh
fruits
and
vegetables;
and
fresh
and
3
prepared
meat,
fish,
and
poultry.
4
The
bill
defines
“financial
assistance”
to
mean
assistance
5
provided
in
the
form
of
a
grant.
6
Under
the
bill,
the
economic
development
authority
7
(authority)
shall
administer
the
grocer
program
for
the
purpose
8
of
awarding
financial
assistance
to
eligible
grocery
stores
for
9
projects
located
in
this
state
including
capital
improvements,
10
utility
upgrades,
equipment
and
furnishings,
professional
11
services,
and
technology.
12
The
bill
allows
the
authority
to
establish
the
eligibility
13
criteria
for
the
grocer
program
by
rule.
The
eligibility
14
criteria
must
include
compliance
with
any
documents
required
15
to
be
filed
with
the
secretary
of
state;
an
organizational
16
structure
that
is
either
a
sole
proprietorship,
partnership,
17
limited
liability
company,
corporation,
cooperative,
nonprofit
18
organization,
or
nonprofit
community
development
entity;
19
ownership
of
ten
or
fewer
grocery
stores;
the
capacity
to
20
successfully
complete
the
project
and
demonstrate
a
plan
for
21
sustainability;
and
the
grocery
store
is
located
in
a
community
22
with
a
population
of
20,000
or
fewer
that
is
not
contiguous
to
23
a
city
with
a
population
of
40,000
or
greater.
24
In
order
to
be
awarded
financial
assistance
pursuant
to
25
the
bill,
a
grocery
store
must
provide
matching
funds
for
the
26
project
that
equal
the
amount
of
the
financial
assistance
27
award.
The
bill
specifies
a
financial
assistance
award
shall
28
not
exceed
$100,000.
29
Under
the
bill,
priority
shall
be
given
to
projects
30
that
accept
benefits
under
the
United
States
department
of
31
agriculture
supplemental
nutrition
assistance
program,
and
32
special
supplemental
nutrition
program
for
women,
infants,
and
33
children;
create
or
retain
jobs;
make
efforts
to
procure
and
34
offer
local
foods
for
sale;
and
any
other
criteria
determined
35
-6-
LSB
1325HV
(2)
91
nls/ko
6/
8
H.F.
550
by
the
authority.
1
The
authority
is
required
to
submit
a
report
to
the
2
general
assembly
describing
the
activities
of
the
grocer
3
program
by
November
1,
2026,
and
each
November
1
thereafter,
4
if
applicable.
The
report
shall
include
the
geographic
5
distribution
of
the
projects,
the
identity
of
the
applicants,
6
and
new
investments
or
new
jobs
created.
7
The
bill
also
establishes
the
processing
program.
Under
the
8
bill,
the
authority
shall
administer
the
processing
program
9
for
the
purpose
of
awarding
grants
to
Iowa-based
entities
to
10
increase
the
availability
of
local
produce
processing.
The
11
bill
defines
both
“local
produce”
and
“local
produce
and
12
processing”.
The
bill
requires
the
authority
to
prioritize
13
grants
to
entities
that
increase
the
availability,
access,
14
efficiency,
or
capacity
of
local
produce
processing.
The
bill
15
prohibits
grants
to
an
entity
unless
the
entity
processes
local
16
produce
from
multiple
Iowa-based
farms.
17
The
bill
establishes
the
fund
under
the
control
of
the
18
authority
for
the
purpose
of
awarding
financial
assistance
to
19
eligible
grocery
stores
under
the
grocer
program
and
awarding
20
grants
to
entities
that
increase
local
produce
processing
21
under
the
processing
program.
Commencing
with
the
fiscal
22
year
beginning
July
1,
2025,
and
each
fiscal
year
thereafter,
23
$100,000
of
the
annual
appropriation,
or
10
percent
of
the
24
moneys
available
in
the
fund
on
July
1,
whichever
is
less,
25
shall
be
allocated
to
the
processing
program
created
in
the
26
bill.
27
DIVISION
II.
The
bill
changes
the
purpose
and
goals
of
the
28
local
food
and
farm
program
in
Code
chapter
267A
to
include
the
29
retailing
of
local
food,
and
increasing
the
availability
and
30
viability
of
grocery
stores
in
this
state.
31
DIVISION
III.
The
bill
appropriates
$2
million
each
of
the
32
next
two
fiscal
years
(FY
2025-2026
and
FY
2026-2027)
from
33
the
general
fund
of
the
state
to
the
fund
to
award
financial
34
assistance
to
eligible
grocery
stores
under
the
grocer
program,
35
-7-
LSB
1325HV
(2)
91
nls/ko
7/
8
H.F.
550
and
to
award
grants
to
entities
that
increase
local
produce
1
processing
under
the
processing
program.
2
-8-
LSB
1325HV
(2)
91
nls/ko
8/
8