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 - Dead) 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 TLSB 5268XC (1) 90 jm/ko
S.F. _____ 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 35 -1- LSB 5268XC (1) 90 jm/ko 1/ 6
S.F. _____ 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. 35 -2- LSB 5268XC (1) 90 jm/ko 2/ 6
S.F. _____ 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. 35 -3- LSB 5268XC (1) 90 jm/ko 3/ 6
S.F. _____ 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: 35 -4- LSB 5268XC (1) 90 jm/ko 4/ 6
S.F. _____ 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. 35 -5- LSB 5268XC (1) 90 jm/ko 5/ 6
S.F. _____ 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. 33 -6- LSB 5268XC (1) 90 jm/ko 6/ 6
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