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59
-
Introduced
HOUSE
FILE
59
BY
LOHSE
and
INGELS
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
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59
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.
“Low
or
moderate
income
community”
means
a
census
tract,
12
as
reported
by
the
most
recent
federal
decennial
census,
in
13
which
fifty-one
percent
of
the
persons
residing
in
the
census
14
tract
are
at
or
below
eighty
percent
of
the
area
median
income
15
as
determined
by
the
United
States
department
of
housing
and
16
urban
development.
17
d.
“Program”
means
the
grocer
reinvestment
program.
18
e.
“Underserved
community”
means
a
census
tract,
as
reported
19
in
the
most
recent
federal
decennial
census,
determined
to
20
be
an
area
with
low
grocery
store
access
as
identified
in
21
the
food
access
research
atlas
prepared
by
the
United
States
22
department
of
agriculture,
or
by
a
methodology
adopted
by
23
another
governmental
healthy
food
initiative.
24
2.
The
authority
shall
establish
and
administer
the
program
25
for
the
purpose
of
awarding
financial
assistance
to
eligible
26
grocery
stores
for
the
following
projects
at
existing
grocery
27
stores,
or
new
grocery
stores
to
be
located
in
this
state:
28
a.
Capital
improvements
to
establish
or
expand
capacity,
29
including
expansions
and
modifications.
30
b.
Upgrades
to
utilities,
including
water,
electric,
heat,
31
refrigeration,
and
freezing
units.
32
c.
Purchases
of
equipment
and
furnishings.
33
d.
Expenditures
for
professional
services.
34
e.
Technology
that
allows
increased
capacity
or
business
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resilience,
including
software
and
hardware
related
to
business
1
functions,
logistics,
inventory
management,
temperature
2
monitoring
controls,
cybersecurity,
and
internet
site
design
3
that
enables
electronic
commerce.
4
3.
The
authority
shall
establish
eligibility
criteria
for
5
the
program
by
rule.
The
eligibility
criteria
must
include
all
6
of
the
following:
7
a.
The
grocery
store
has
filed
all
required
documents
with
8
the
secretary
of
state
under
the
relevant
filing
statute
as
9
described
in
section
9.11.
10
b.
The
grocery
store
is
organized
as
a
sole
proprietorship,
11
partnership,
limited
liability
company,
corporation,
12
cooperative,
nonprofit
organization,
or
nonprofit
community
13
development
entity.
14
c.
The
grocery
store
owns
five
or
fewer
grocery
stores.
15
d.
The
grocery
store
has
the
capacity
to
successfully
16
implement
or
complete
the
project,
and
demonstrates
a
plan
for
17
sustainability.
18
4.
In
order
to
be
awarded
financial
assistance
under
the
19
program,
a
grocery
store
must
provide
matching
funds
for
the
20
project
equal
to
the
amount
of
the
financial
assistance
award.
21
Financial
assistance
awarded
under
the
program
shall
not
exceed
22
two
hundred
thousand
dollars.
23
5.
The
authority
shall
evaluate
applications,
and
priority
24
shall
be
given
to
the
grocery
stores
that
commit
to
all
of
the
25
following:
26
a.
Locating
the
project
in
an
underserved
community
that
27
primarily
serves
the
residents
of
low
or
moderate
income
28
communities.
29
b.
Accepting
benefits
under
the
United
States
department
30
of
agriculture
supplemental
nutrition
assistance
program
and
31
the
special
supplemental
nutrition
program
for
women,
infants,
32
and
children.
33
c.
Creating
or
retaining
jobs
for
local
residents.
34
d.
Making
efforts
to
procure
and
offer
local
foods
for
sale.
35
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e.
Other
criteria
determined
by
the
authority.
1
6.
By
November
1,
2026,
and
each
November
1
thereafter,
2
if
financial
assistance
has
been
provided
in
the
immediately
3
preceding
fiscal
year,
the
director
shall
submit
a
report
to
4
the
general
assembly
describing
the
activities
of
the
program
5
including
the
geographic
distribution
of
the
projects,
the
6
identity
of
the
applicants,
and
the
new
investments
or
new
jobs
7
created
as
a
result
of
the
financial
assistance
provided
under
8
the
program.
9
Sec.
2.
NEW
SECTION
.
15.414
Local
produce
processing
grant
10
program.
11
1.
As
used
in
this
section:
12
a.
“Local
produce”
means
fruits
and
vegetables
grown
in
this
13
state.
14
b.
“Local
produce
and
processing”
means
the
preparation
of
15
local
produce
for
human
consumption.
16
2.
a.
The
authority
shall
establish
and
administer
17
the
local
produce
processing
grant
program
for
the
purpose
18
of
awarding
grants
to
Iowa-based
entities
to
increase
the
19
availability
of
local
produce
processing.
In
administering
the
20
program,
the
authority
shall
prioritize
grants
to
Iowa-based
21
entities
that
will
increase
any
of
the
following
as
it
relates
22
to
local
produce
processing:
23
(1)
Availability.
24
(2)
Access.
25
(3)
Efficiency.
26
(4)
Capacity.
27
b.
A
grant
shall
not
be
awarded
to
an
entity
unless
the
28
local
produce
processing
includes
local
produce
from
multiple
29
Iowa-based
farms.
30
3.
The
authority
may
adopt
rules
pursuant
to
chapter
17A
to
31
administer
this
section.
32
Sec.
3.
NEW
SECTION
.
15.415
Grocer
reinvestment
and
local
33
food
processing
fund.
34
1.
a.
A
grocer
reinvestment
and
local
food
processing
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fund
is
created
in
the
state
treasury
under
the
control
of
1
the
authority.
The
fund
shall
consist
of
moneys
appropriated
2
to
the
authority
and
any
other
moneys
available
to,
obtained
3
by,
or
accepted
by
the
authority
for
placement
in
the
fund.
4
The
fund
shall
be
used
to
award
financial
assistance
as
5
provided
under
the
grocer
reinvestment
program
established
in
6
section
15.413
and
the
local
produce
processing
grant
program
7
established
in
section
15.414.
8
b.
Commencing
with
the
fiscal
year
beginning
July
1,
2025,
9
and
each
fiscal
year
thereafter,
one
hundred
thousand
dollars
10
of
the
annual
appropriation
to
the
fund,
or
ten
percent
of
the
11
moneys
in
the
fund
available
on
July
1,
whichever
is
less,
12
shall
be
allocated
to
the
local
produce
processing
grant
13
program
established
in
section
15.414.
14
c.
The
authority
may
use
not
more
than
five
percent
of
15
the
moneys
in
the
fund
at
the
beginning
of
the
fiscal
year
16
for
purposes
of
administrative
costs,
marketing,
technical
17
assistance,
and
other
program
support.
18
2.
Notwithstanding
section
8.33,
moneys
in
the
fund
19
that
remain
unencumbered
or
unobligated
at
the
close
of
the
20
fiscal
year
shall
not
revert
but
shall
remain
available
for
21
expenditure
for
the
purposes
designated
until
the
close
of
22
the
succeeding
fiscal
year.
Notwithstanding
section
12C.7,
23
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
24
to
the
fund.
25
DIVISION
II
26
LOCAL
FOOD
AND
FARM
PROGRAM
——
GROCERY
STORES
27
Sec.
4.
Section
267A.1,
subsection
1,
Code
2025,
is
amended
28
to
read
as
follows:
29
1.
The
purpose
of
this
chapter
is
to
empower
farmers
,
and
30
food
entrepreneurs
,
and
grocery
stores
to
provide
for
strong
31
local
food
economies
that
promote
self-sufficiency
and
job
32
growth
in
the
agricultural
sector
and
allied
sectors
of
the
33
economy.
34
Sec.
5.
Section
267A.1,
subsection
2,
paragraph
d,
Code
35
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2025,
is
amended
to
read
as
follows:
1
d.
Increase
the
number
of
jobs
in
this
state’s
farm
and
2
business
economies
associated
with
producing,
processing,
3
distributing,
retailing,
and
marketing
local
food.
4
Sec.
6.
Section
267A.1,
subsection
2,
Code
2025,
is
amended
5
by
adding
the
following
new
paragraph:
6
NEW
PARAGRAPH
.
e.
Increase
the
availability
and
viability
7
of
grocery
stores
in
this
state.
8
Sec.
7.
Section
267A.2,
Code
2025,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
4A.
“Grocery
store”
means
the
same
as
11
defined
in
section
15.413.
12
Sec.
8.
Section
267A.6,
subsection
2,
paragraphs
a
and
c,
13
Code
2025,
are
amended
to
read
as
follows:
14
a.
Improve
communication
and
cooperation
between
and
among
15
farmers,
food
entrepreneurs,
grocers,
and
consumers.
16
c.
Demonstrate
the
value
of
processing,
distributing,
17
retailing,
and
marketing
local
foods.
A
demonstration
project
18
must
be
capable
of
being
replicated
on
a
statewide
basis.
19
DIVISION
III
20
APPROPRIATIONS
21
Sec.
9.
GROCER
REINVESTMENT
FUND
——
FY
2025-2026.
There
22
is
appropriated
from
the
general
fund
of
the
state
to
the
23
economic
development
authority
for
the
fiscal
year
beginning
24
July
1,
2025,
and
ending
June
30,
2026,
the
following
amount,
25
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
26
designated:
27
For
deposit
in
the
grocer
reinvestment
and
local
food
28
processing
fund
created
in
section
15.415:
29
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
30
Sec.
10.
GROCER
REINVESTMENT
FUND
——
FY
2026-2027.
There
31
is
appropriated
from
the
general
fund
of
the
state
to
the
32
economic
development
authority
for
the
fiscal
year
beginning
33
July
1,
2026,
and
ending
June
30,
2027,
the
following
amount,
34
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
35
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designated:
1
For
deposit
in
the
grocer
reinvestment
and
local
food
2
processing
fund
created
in
section
15.415:
3
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
creates
a
grocer
reinvestment
program
(grocer
8
program),
a
local
produce
processing
grant
program
(processing
9
program),
a
grocer
reinvestment
and
local
food
processing
fund
10
(fund),
and
makes
appropriations.
11
DIVISION
I.
The
bill
defines
“grocery
store”
to
mean
an
12
establishment
also
known
as
a
supermarket
that
primarily
13
engages
in
retailing
a
general
line
of
food
including
canned
14
and
frozen
food;
fresh
fruits
and
vegetables;
and
fresh
and
15
prepared
meat,
fish,
and
poultry.
16
The
bill
defines
“financial
assistance”
to
mean
assistance
17
provided
in
the
form
of
a
grant.
18
Under
the
bill,
the
economic
development
authority
19
(authority)
shall
administer
the
grocer
program
for
the
purpose
20
of
awarding
financial
assistance
to
eligible
grocery
stores
for
21
projects
located
in
this
state
including
capital
improvements,
22
utility
upgrades,
equipment
and
furnishings,
professional
23
services,
and
technology.
24
The
bill
allows
the
authority
to
establish
the
eligibility
25
criteria
for
the
grocer
program
by
rule.
The
eligibility
26
criteria
must
include
compliance
with
any
documents
required
27
to
be
filed
with
the
secretary
of
state;
an
organizational
28
structure
that
is
either
a
sole
proprietorship,
partnership,
29
limited
liability
company,
corporation,
cooperative,
nonprofit
30
organization,
or
nonprofit
community
development
entity;
31
ownership
of
five
or
fewer
grocery
stores;
and
the
capacity
to
32
successfully
complete
the
project
and
demonstrate
a
plan
for
33
sustainability.
34
In
order
to
be
awarded
financial
assistance
pursuant
to
35
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59
the
bill,
a
grocery
store
must
provide
matching
funds
for
the
1
project
that
equal
the
amount
of
the
financial
assistance
2
award.
The
bill
specifies
a
financial
assistance
award
shall
3
not
exceed
$200,000.
4
Under
the
bill,
priority
shall
be
given
to
projects
located
5
in
an
underserved
community
that
primarily
serves
residents
of
6
low
or
moderate
income
communities;
accepts
benefits
under
the
7
United
States
department
of
agriculture
supplemental
nutrition
8
assistance
program,
and
special
supplemental
nutrition
program
9
for
women,
infants,
and
children;
creates
or
retains
jobs;
10
makes
efforts
to
procure
and
offer
local
foods
for
sale;
and
11
any
other
criteria
determined
by
the
authority.
12
The
authority
is
required
to
submit
a
report
to
the
13
general
assembly
describing
the
activities
of
the
grocer
14
program
by
November
1,
2026,
and
each
November
1
thereafter,
15
if
applicable.
The
report
shall
include
the
geographic
16
distribution
of
the
projects,
the
identity
of
the
applicants,
17
and
new
investments
or
new
jobs
created.
18
The
bill
also
establishes
the
processing
program.
Under
the
19
bill,
the
authority
shall
administer
the
processing
program
20
for
the
purpose
of
awarding
grants
to
Iowa-based
entities
to
21
increase
the
availability
of
local
produce
processing.
The
22
bill
defines
both
“local
produce”
and
“local
produce
and
23
processing”.
The
bill
requires
the
authority
to
prioritize
24
grants
to
entities
that
increase
the
availability,
access,
25
efficiency,
or
capacity
of
local
produce
processing.
The
bill
26
prohibits
grants
to
an
entity
unless
the
entity
processes
local
27
produce
from
multiple
Iowa-based
farms.
28
The
bill
establishes
the
fund
under
the
control
of
the
29
authority
for
the
purpose
of
awarding
financial
assistance
to
30
eligible
grocery
stores
under
the
grocer
program
and
awarding
31
grants
to
entities
that
increase
local
produce
processing
32
under
the
processing
program.
Commencing
with
the
fiscal
33
year
beginning
July
1,
2025,
and
each
fiscal
year
thereafter,
34
$100,000
of
the
annual
appropriation,
or
10
percent
of
the
35
-7-
LSB
1325YH
(4)
91
nls/ko
7/
8
H.F.
59
moneys
available
in
the
fund
on
July
1,
whichever
is
less,
1
shall
be
allocated
to
the
processing
program
created
in
the
2
bill.
3
DIVISION
II.
The
bill
changes
the
purpose
and
goals
of
the
4
local
food
and
farm
program
in
Code
chapter
267A
to
include
the
5
retailing
of
local
food,
and
increasing
the
availability
and
6
viability
of
grocery
stores
in
this
state.
7
DIVISION
III.
The
bill
appropriates
$2
million
each
of
the
8
next
two
fiscal
years
(FY
2025-2026
and
FY
2026-2027)
from
9
the
general
fund
of
the
state
to
the
fund
to
award
financial
10
assistance
to
eligible
grocery
stores
under
the
grocer
program,
11
and
to
award
grants
to
entities
that
increase
local
produce
12
processing
under
the
processing
program.
13
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1325YH
(4)
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nls/ko
8/
8