Bill Text: IA SSB3074 | 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, and making appropriations.
Spectrum: Committee Bill
Status: (Introduced) 2024-01-17 - Subcommittee Meeting: 01/24/2024 8:30AM Room 217 Conference Room. [SSB3074 Detail]
Download: Iowa-2023-SSB3074-Introduced.html
Senate
Study
Bill
3074
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
BROWN)
A
BILL
FOR
An
Act
creating
a
grocer
reinvestment
fund
and
program
under
1
the
purview
of
the
economic
development
authority,
and
2
making
appropriations.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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_____
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
provided
only
6
from
the
funds
and
legally
available
to
the
authority
pursuant
7
to
this
section
and
includes
assistance
in
the
form
of
loans,
8
forgivable
loans,
and
grants.
9
b.
“Grocery
store”
means
an
establishment
also
known
as
a
10
supermarket
that
primarily
engages
in
retailing
a
general
line
11
of
food
including
canned
and
frozen
food;
fresh
fruits
and
12
vegetables;
and
fresh
and
prepared
meat,
fish,
and
poultry.
13
c.
“Low-income
community”
means
a
census
tract,
as
reported
14
by
the
most
recent
federal
decennial
census,
that
has
a
15
poverty
rate
of
at
least
twenty
percent
or
in
which
the
median
16
household
income
does
not
exceed
eighty
percent
of
the
greater
17
of
the
statewide
or
metropolitan
median
household
income.
18
d.
“Moderate-income
community”
means
a
census
tract,
as
19
reported
by
the
most
recent
federal
decennial
census,
in
which
20
the
median
household
income
is
between
eighty-one
percent
and
21
ninety-five
percent
of
the
statewide
or
metropolitan
median
22
household
income.
23
e.
“Program”
means
the
grocer
reinvestment
program.
24
f.
“Underserved
community”
means
a
census
tract,
as
reported
25
in
the
most
recent
federal
decennial
census,
determined
to
26
be
an
area
with
low
grocery
store
access
as
identified
in
27
the
food
access
research
atlas
prepared
by
the
United
States
28
department
of
agriculture,
or
by
a
methodology
adopted
by
29
another
governmental
healthy
food
initiative.
30
2.
a.
A
grocer
reinvestment
fund
is
created
in
the
state
31
treasury
under
the
control
of
the
authority.
The
fund
shall
32
consist
of
moneys
appropriated
to
the
authority
and
any
other
33
moneys
available
to,
obtained
by,
or
accepted
by
the
authority
34
for
placement
in
the
fund.
The
fund
shall
be
used
to
award
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financial
assistance
as
provided
under
the
program.
The
1
authority
shall
use
any
moneys
specifically
appropriated
for
2
purposes
of
this
section
only
for
the
purposes
of
the
program.
3
b.
Notwithstanding
section
8.33,
moneys
in
the
fund
4
that
remain
unencumbered
or
unobligated
at
the
close
of
the
5
fiscal
year
shall
not
revert
but
shall
remain
available
for
6
expenditure
for
the
purposes
designated
until
the
close
of
7
the
succeeding
fiscal
year.
Notwithstanding
section
12C.7,
8
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
9
to
the
fund.
10
3.
The
authority
shall
establish
and
administer
the
program
11
for
the
purpose
of
awarding
financial
assistance
to
eligible
12
grocery
stores
for
the
following
projects
at
existing
grocery
13
stores,
or
new
grocery
stores
to
be
located
in
this
state:
14
a.
Capital
improvements
to
expand
capacity,
including
15
expansions
and
modifications.
16
b.
Upgrades
to
utilities,
including
water,
electric,
heat,
17
refrigeration,
and
freezing
units.
18
c.
Energy
efficiency
measures.
19
d.
Expenditures
for
repairs
and
maintenance.
20
e.
Purchases
of
equipment
and
furnishings.
21
f.
Expenditures
for
professional
services.
22
g.
Workforce
training.
23
h.
Technology
that
allows
increased
capacity
or
business
24
resilience,
including
software
and
hardware
related
to
business
25
functions,
logistics,
inventory
management,
temperature
26
monitoring
controls,
and
internet
site
design
that
enables
27
electronic
commerce.
28
i.
Predevelopment
costs.
29
4.
The
authority
shall
establish
eligibility
criteria
for
30
the
program
by
rule.
The
eligibility
criteria
must
include
all
31
of
the
following:
32
a.
The
grocery
store
has
filed
all
required
documents
with
33
the
secretary
of
state
under
the
relevant
filing
statute
as
34
described
in
section
9.11.
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b.
The
grocery
store
is
organized
as
a
sole
proprietorship,
1
partnership,
limited
liability
company,
corporation,
2
cooperative,
nonprofit
organization,
or
nonprofit
community
3
development
entity.
4
c.
The
grocery
store
employs
twenty-five
or
fewer
5
individuals.
6
d.
The
total
amount
of
financial
assistance
requested
by
the
7
grocery
store
in
the
form
of
a
grant
or
forgivable
loan
does
8
not
exceed
fifty
percent
of
the
total
amount
of
the
project
9
costs,
or
the
total
amount
of
financial
assistance
requested
10
by
the
grocery
store
in
the
form
of
a
loan
does
not
exceed
11
seventy-five
percent
of
the
total
amount
of
the
project
costs.
12
e.
The
grocery
store
will
create
new
jobs
or
increase
13
compensation
for
existing
employees.
14
f.
The
grocery
store
has
the
capacity
to
successfully
15
implement
or
complete
the
project.
16
g.
The
grocery
store
has
the
ability
to
repay
any
loans
17
awarded
as
part
of
any
financial
assistance.
18
h.
The
project
is
economically
viable.
19
5.
A
grocery
store
seeking
financial
assistance
under
this
20
section
shall
make
application
to
the
authority
in
the
manner
21
prescribed
by
the
authority
by
rule.
22
6.
The
authority
shall
evaluate
applications
pursuant
to
23
rules
adopted
by
the
authority,
and
priority
shall
be
given
to
24
the
grocery
stores
that
commit
to
all
of
the
following:
25
a.
Providing
matching
funds
of
at
least
fifty
percent
of
the
26
total
project
cost.
27
b.
Locating
the
project
in
an
underserved
community
that
28
primarily
serves
the
residents
of
low-income
or
moderate-income
29
communities.
30
c.
Accepting
benefits
under
the
United
States
department
31
of
agriculture
supplemental
nutrition
assistance
program
and
32
the
special
supplemental
nutrition
program
for
women,
infants,
33
and
children.
34
d.
Creating
or
retaining
jobs
for
local
residents.
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e.
Other
criteria
determined
by
the
authority
by
rule.
1
7.
By
November
1,
2025,
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
8.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
10
to
administer
this
section.
11
Sec.
2.
Section
15.106B,
Code
2024,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
6.
The
authority
may
enter
into
a
contract
14
with
a
nonprofit
organization
organized
under
chapter
504
or
15
similar
laws
of
another
jurisdiction,
or
with
a
community
16
development
financial
institution,
to
administer
the
grocer
17
reinvestment
program
under
section
15.413.
18
DIVISION
II
19
APPROPRIATIONS
20
Sec.
3.
GROCER
REINVESTMENT
FUND
——
FY
2024-2025.
There
21
is
appropriated
from
the
general
fund
of
the
state
to
the
22
economic
development
authority
for
the
fiscal
year
beginning
23
July
1,
2024,
and
ending
June
30,
2025,
the
following
amount,
24
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
25
designated:
26
For
deposit
in
the
grocer
reinvestment
fund
created
in
27
section
15.413:
28
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
29
Sec.
4.
GROCER
REINVESTMENT
FUND
——
FY
2025-2026.
There
30
is
appropriated
from
the
general
fund
of
the
state
to
the
31
economic
development
authority
for
the
fiscal
year
beginning
32
July
1,
2025,
and
ending
June
30,
2026,
the
following
amount,
33
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
34
designated:
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For
deposit
in
the
grocer
reinvestment
fund
created
in
1
section
15.413:
2
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,000,000
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
creates
a
grocer
reinvestment
fund
(fund)
and
7
program
(program)
under
the
purview
of
the
economic
development
8
authority
(authority),
and
makes
appropriations
to
the
fund.
9
DIVISION
I
——
GROCER
REINVESTMENT
FUND
AND
PROGRAM.
The
10
bill
provides
the
fund
shall
consist
of
moneys
appropriated
to
11
the
authority,
and
any
other
moneys
placed
or
accepted
into
the
12
fund.
The
fund
shall
be
used
to
award
financial
assistance
to
13
eligible
grocery
stores
under
the
program.
14
The
bill
defines
“grocery
store”
to
mean
an
establishment
15
also
known
as
a
supermarket
that
primarily
engages
in
retailing
16
a
general
line
of
food
including
canned
and
frozen
food;
fresh
17
fruits
and
vegetables;
and
fresh
and
prepared
meat,
fish,
and
18
poultry.
19
The
bill
defines
“financial
assistance”
to
mean
a
loan,
20
forgivable
loan,
or
grant.
21
Under
the
bill,
the
authority
shall
administer
the
22
program
for
the
purpose
of
awarding
financial
assistance
to
23
eligible
grocery
stores
for
projects
located
in
this
state
24
including
capital
improvements,
utility
upgrades,
repairs
and
25
maintenance,
equipment
and
furnishings,
professional
services,
26
workforce
training,
technology,
and
predevelopment
costs.
27
The
bill
establishes
the
criteria
for
the
program.
The
28
criteria
relates
to
a
grocery
store’s
eligibility
to
do
29
business
in
the
state,
the
business
organizational
structure
30
of
the
grocery
store,
the
number
of
employees,
the
amount
of
31
financial
assistance
provided
in
relation
to
the
size
of
the
32
project,
job
or
income
creation,
ability
to
repay
any
financial
33
assistance,
ability
to
implement
or
complete
the
project,
and
34
the
economic
viability
of
the
project.
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The
bill
requires
a
grocery
store
seeking
financial
1
assistance
to
make
application
to
the
authority
in
the
manner
2
prescribed
by
the
authority
by
rule.
The
authority
is
required
3
to
evaluate
applications
pursuant
to
rules
adopted
by
the
4
authority.
5
The
bill
allows
the
authority
to
contract
with
a
nonprofit
6
organization
or
a
community
development
financial
institution
7
to
administer
the
program.
8
Under
the
bill,
priority
shall
be
given
to
projects
where
9
the
grocery
store
commits
to
providing
matching
funds
of
10
at
least
50
percent
of
the
total
project
cost;
locates
the
11
project
in
an
underserved
community
that
primarily
serves
12
residents
of
low-income
or
moderate-income
communities;
commits
13
to
accepting
benefits
under
the
United
States
department
14
of
agriculture
supplemental
nutrition
assistance
program,
15
and
the
special
supplemental
nutrition
program
for
women,
16
infants,
and
children;
creates
or
retains
jobs;
and
meets
any
17
other
criteria
determined
by
the
authority
by
rule.
The
bill
18
defines
“underserved
community”,
“low-income
community”,
and
19
“moderate-income
community”.
20
The
authority
is
required
to
submit
a
report
to
the
general
21
assembly
describing
the
activities
of
the
program
by
November
22
1,
2025,
and
each
November
1
thereafter,
if
applicable.
The
23
report
shall
include
the
geographic
distribution
of
the
24
projects,
the
identity
of
the
applicants,
and
new
investments
25
or
new
jobs
created.
26
The
authority
is
required
to
adopt
rules
to
implement
the
27
bill.
28
DIVISION
II
——
APPROPRIATIONS.
The
bill
appropriates
$2
29
million
each
of
the
next
two
fiscal
years
(FY
2024-2025
and
FY
30
2025—2026)
from
the
general
fund
of
the
state
to
the
fund
to
31
provide
financial
assistance
to
eligible
grocery
stores
under
32
the
program.
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