Bill Text: IA HF2176 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act creating a grocer reinvestment fund and program under the purview of the economic development authority, modifying the local food and farm program, and making appropriations.(See HF 2599.)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-02-19 - Committee report approving bill, renumbered as HF 2599. [HF2176 Detail]
Download: Iowa-2023-HF2176-Introduced.html
House
File
2176
-
Introduced
HOUSE
FILE
2176
BY
LOHSE
A
BILL
FOR
An
Act
creating
a
grocer
reinvestment
fund
and
program
under
1
the
purview
of
the
economic
development
authority,
modifying
2
the
local
food
and
farm
program,
and
making
appropriations.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5268YH
(9)
90
jm/ko
H.F.
2176
DIVISION
I
1
GROCER
REINVESTMENT
FUND
AND
PROGRAM
2
Section
1.
NEW
SECTION
.
15.413
Grocer
reinvestment
fund
3
and
program.
4
1.
As
used
in
this
section:
5
a.
“Financial
assistance”
means
assistance,
in
the
form
6
of
grants,
provided
only
from
the
funds
and
assets
legally
7
available
to
the
authority
pursuant
to
this
section.
8
b.
“Grocery
store”
means
an
establishment
also
known
as
a
9
supermarket
that
primarily
engages
in
retailing
a
general
line
10
of
food
including
canned
and
frozen
food;
fresh
fruits
and
11
vegetables;
and
fresh
and
prepared
meat,
fish,
and
poultry.
12
c.
“Low
or
moderate
income
community”
means
a
census
tract,
13
as
reported
by
the
most
recent
federal
decennial
census,
in
14
which
fifty-one
percent
of
the
persons
residing
in
the
census
15
tract
are
at
or
below
eighty
percent
of
the
area
median
income
16
as
determined
by
the
United
States
department
of
housing
and
17
urban
development.
18
d.
“Program”
means
the
grocer
reinvestment
program.
19
e.
“Underserved
community”
means
a
census
tract,
as
reported
20
in
the
most
recent
federal
decennial
census,
determined
to
21
be
an
area
with
low
grocery
store
access
as
identified
in
22
the
food
access
research
atlas
prepared
by
the
United
States
23
department
of
agriculture,
or
by
a
methodology
adopted
by
24
another
governmental
healthy
food
initiative.
25
2.
a.
(1)
A
grocer
reinvestment
fund
is
created
in
the
26
state
treasury
under
the
control
of
the
authority.
The
fund
27
shall
consist
of
moneys
appropriated
to
the
authority
and
any
28
other
moneys
available
to,
obtained
by,
or
accepted
by
the
29
authority
for
placement
in
the
fund.
The
fund
shall
be
used
to
30
award
financial
assistance
as
provided
under
the
program.
The
31
authority
shall
use
any
moneys
specifically
appropriated
for
32
purposes
of
this
section
only
for
the
purposes
of
the
program.
33
(2)
The
authority
may
use
not
more
than
five
percent
of
34
the
moneys
in
the
fund
at
the
beginning
of
the
fiscal
year
35
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2176
for
purposes
of
administrative
costs,
marketing,
technical
1
assistance,
and
other
program
support.
2
b.
Notwithstanding
section
8.33,
moneys
in
the
fund
3
that
remain
unencumbered
or
unobligated
at
the
close
of
the
4
fiscal
year
shall
not
revert
but
shall
remain
available
for
5
expenditure
for
the
purposes
designated
until
the
close
of
6
the
succeeding
fiscal
year.
Notwithstanding
section
12C.7,
7
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
8
to
the
fund.
9
3.
The
authority
shall
establish
and
administer
the
program
10
for
the
purpose
of
awarding
financial
assistance
to
eligible
11
grocery
stores
for
the
following
projects
at
existing
grocery
12
stores,
or
new
grocery
stores
to
be
located
in
this
state:
13
a.
Capital
improvements
to
establish
or
expand
capacity,
14
including
expansions
and
modifications.
15
b.
Upgrades
to
utilities,
including
water,
electric,
heat,
16
refrigeration,
and
freezing
units.
17
c.
Purchases
of
equipment
and
furnishings.
18
d.
Expenditures
for
professional
services.
19
e.
Technology
that
allows
increased
capacity
or
business
20
resilience,
including
software
and
hardware
related
to
business
21
functions,
logistics,
inventory
management,
temperature
22
monitoring
controls,
cybersecurity,
and
internet
site
design
23
that
enables
electronic
commerce.
24
4.
The
authority
shall
establish
eligibility
criteria
for
25
the
program
by
rule.
The
eligibility
criteria
must
include
all
26
of
the
following:
27
a.
The
grocery
store
has
filed
all
required
documents
with
28
the
secretary
of
state
under
the
relevant
filing
statute
as
29
described
in
section
9.11.
30
b.
The
grocery
store
is
organized
as
a
sole
proprietorship,
31
partnership,
limited
liability
company,
corporation,
32
cooperative,
nonprofit
organization,
or
nonprofit
community
33
development
entity.
34
c.
The
grocery
store
owns
ten
or
fewer
grocery
stores.
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d.
The
grocery
store
has
the
capacity
to
successfully
1
implement
or
complete
the
project,
and
demonstrates
a
plan
for
2
sustainability.
3
5.
In
order
to
be
awarded
financial
assistance
under
the
4
program,
a
grocery
store
must
provide
matching
funds
for
the
5
project
equal
to
the
amount
of
the
financial
assistance
award.
6
Financial
assistance
awarded
under
the
program
shall
not
be
7
less
than
fifty
thousand
dollars
and
shall
not
exceed
five
8
hundred
thousand
dollars.
9
6.
The
authority
shall
evaluate
applications,
and
priority
10
shall
be
given
to
the
grocery
stores
that
commit
to
all
of
the
11
following:
12
a.
Locating
the
project
in
an
underserved
community
that
13
primarily
serves
the
residents
of
low
or
moderate
income
14
communities.
15
b.
Accepting
benefits
under
the
United
States
department
16
of
agriculture
supplemental
nutrition
assistance
program
and
17
the
special
supplemental
nutrition
program
for
women,
infants,
18
and
children.
19
c.
Creating
or
retaining
jobs
for
local
residents.
20
d.
Other
criteria
determined
by
the
authority.
21
7.
By
November
1,
2025,
and
each
November
1
thereafter,
22
if
financial
assistance
has
been
provided
in
the
immediately
23
preceding
fiscal
year,
the
director
shall
submit
a
report
to
24
the
general
assembly
describing
the
activities
of
the
program
25
including
the
geographic
distribution
of
the
projects,
the
26
identity
of
the
applicants,
and
the
new
investments
or
new
jobs
27
created
as
a
result
of
the
financial
assistance
provided
under
28
the
program.
29
Sec.
2.
Section
15.106B,
Code
2024,
is
amended
by
adding
the
30
following
new
subsection:
31
NEW
SUBSECTION
.
6.
The
authority
may
enter
into
a
contract
32
with
a
nonprofit
organization
organized
under
chapter
504
or
33
similar
laws
of
another
jurisdiction,
or
with
a
community
34
development
financial
institution,
to
administer
the
grocer
35
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2176
reinvestment
program
under
section
15.413.
1
DIVISION
II
2
LOCAL
FOOD
AND
FARM
PROGRAM
——
GROCERY
STORES
3
Sec.
3.
Section
267A.1,
subsection
1,
Code
2024,
is
amended
4
to
read
as
follows:
5
1.
The
purpose
of
this
chapter
is
to
empower
farmers
,
and
6
food
entrepreneurs
,
and
grocery
stores
to
provide
for
strong
7
local
food
economies
that
promote
self-sufficiency
and
job
8
growth
in
the
agricultural
sector
and
allied
sectors
of
the
9
economy.
10
Sec.
4.
Section
267A.1,
subsection
2,
paragraph
d,
Code
11
2024,
is
amended
to
read
as
follows:
12
d.
Increase
the
number
of
jobs
in
this
state’s
farm
and
13
business
economies
associated
with
producing,
processing,
14
distributing,
retailing,
and
marketing
local
food.
15
Sec.
5.
Section
267A.1,
subsection
2,
Code
2024,
is
amended
16
by
adding
the
following
new
paragraph:
17
NEW
PARAGRAPH
.
e.
Increase
the
availability
and
viability
18
of
grocery
stores
in
this
state.
19
Sec.
6.
Section
267A.2,
Code
2024,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
4A.
“Grocery
store”
means
the
same
as
22
defined
in
section
15.413.
23
Sec.
7.
Section
267A.6,
subsection
2,
paragraphs
a
and
c,
24
Code
2024,
are
amended
to
read
as
follows:
25
a.
Improve
communication
and
cooperation
between
and
among
26
farmers,
food
entrepreneurs,
grocers,
and
consumers.
27
c.
Demonstrate
the
value
of
processing,
distributing,
28
retailing,
and
marketing
local
foods.
A
demonstration
project
29
must
be
capable
of
being
replicated
on
a
statewide
basis.
30
DIVISION
III
31
APPROPRIATIONS
32
Sec.
8.
GROCER
REINVESTMENT
FUND
——
FY
2024-2025.
There
33
is
appropriated
from
the
general
fund
of
the
state
to
the
34
economic
development
authority
for
the
fiscal
year
beginning
35
-4-
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5268YH
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90
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7
H.F.
2176
July
1,
2024,
and
ending
June
30,
2025,
the
following
amount,
1
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
2
designated:
3
For
deposit
in
the
grocer
reinvestment
fund
created
in
4
section
15.413:
5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
6
Sec.
9.
GROCER
REINVESTMENT
FUND
——
FY
2025-2026.
There
7
is
appropriated
from
the
general
fund
of
the
state
to
the
8
economic
development
authority
for
the
fiscal
year
beginning
9
July
1,
2025,
and
ending
June
30,
2026,
the
following
amount,
10
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
11
designated:
12
For
deposit
in
the
grocer
reinvestment
fund
created
in
13
section
15.413:
14
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
creates
a
grocer
reinvestment
fund
(fund)
and
19
program
(program)
under
the
purview
of
the
economic
development
20
authority
(authority),
modifies
the
local
food
and
farm
21
program,
and
makes
appropriations
to
the
fund.
22
DIVISION
I
——
GROCER
REINVESTMENT
FUND
AND
PROGRAM.
The
23
bill
provides
the
fund
shall
consist
of
moneys
appropriated
to
24
the
authority,
and
any
other
moneys
placed
or
accepted
into
the
25
fund.
The
fund
shall
be
used
to
award
financial
assistance
to
26
eligible
grocery
stores
under
the
program.
27
The
bill
defines
“grocery
store”
to
mean
an
establishment
28
also
known
as
a
supermarket
that
primarily
engages
in
retailing
29
a
general
line
of
food
including
canned
and
frozen
food;
fresh
30
fruits
and
vegetables;
and
fresh
and
prepared
meat,
fish,
and
31
poultry.
32
The
bill
defines
“financial
assistance”
to
mean
assistance
33
provided
in
the
form
of
a
grant.
34
Under
the
bill,
the
authority
shall
administer
the
program
35
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2176
for
the
purpose
of
awarding
financial
assistance
to
eligible
1
grocery
stores
for
projects
located
in
this
state
including
2
capital
improvements,
utility
upgrades,
equipment
and
3
furnishings,
professional
services,
and
technology.
4
The
bill
allows
the
authority
to
establish
the
eligibility
5
criteria
for
the
program
by
rule.
The
eligibility
criteria
6
must
include
compliance
with
any
documents
required
to
be
filed
7
with
the
secretary
of
state;
an
organizational
structure
that
8
is
either
a
sole
proprietorship,
partnership,
limited
liability
9
company,
corporation,
cooperative,
nonprofit
organization,
or
10
nonprofit
community
development
entity;
and
ownership
of
10
or
11
fewer
grocery
stores.
12
In
order
to
be
awarded
financial
assistance
pursuant
to
13
the
bill,
a
grocery
store
must
provide
matching
funds
for
the
14
project
that
equal
the
amount
of
the
financial
assistance
15
award.
The
bill
specifies
a
financial
assistance
award
shall
16
not
be
less
than
$50,000
or
more
than
$500,000.
17
Under
the
bill,
priority
shall
be
given
to
projects
located
18
in
an
underserved
community
that
primarily
serves
residents
of
19
low
or
moderate
income
communities;
accepts
benefits
under
the
20
United
States
department
of
agriculture
supplemental
nutrition
21
assistance
program,
and
special
supplemental
nutrition
program
22
for
women,
infants,
and
children;
creates
or
retains
jobs;
and
23
any
other
criteria
determined
by
the
authority.
24
The
authority
is
required
to
submit
a
report
to
the
general
25
assembly
describing
the
activities
of
the
program
by
November
26
1,
2025,
and
each
November
1
thereafter,
if
applicable.
The
27
report
shall
include
the
geographic
distribution
of
the
28
projects,
the
identity
of
the
applicants,
and
new
investments
29
or
new
jobs
created.
30
DIVISION
II
——
LOCAL
FOOD
AND
FARM
PROGRAM
——
GROCERY
STORES.
31
The
bill
changes
the
purpose
and
goals
of
the
local
food
and
32
farm
program
in
Code
chapter
267A
to
include
the
retailing
of
33
local
food,
and
increasing
the
availability
and
viability
of
34
grocery
stores
in
this
state.
35
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2176
DIVISION
III
——
APPROPRIATIONS.
The
bill
appropriates
$2
1
million
each
of
the
next
two
fiscal
years
(FY
2024-2025
and
FY
2
2025—2026)
from
the
general
fund
of
the
state
to
the
fund
to
3
provide
financial
assistance
to
eligible
grocery
stores
under
4
the
program.
5
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5268YH
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7/
7
