HF 1032 — A bill for an act creating a grocer reinvestment program, a local produce processing grant program, and a grocer reinvestment and local food processing fund under the purview of the economic development authority, and modifying the local food and farm program.

d.

Iowa-based entities whose local produce is sold or distributed to a grocery store eligible for the grocer reinvestment program under section 15.413.

TheAn authorityIowa-based mayentity adoptwhose ruleslocal pursuantproduce toprocessing chapterincludes 17Alocal toproduce administerfrom thisthree section.or more Iowa farms shall be eligible for a grant under the program in an amount that is two times the maximum grant amount set by the department for the value-added agricultural grant program under section 187.321.

3.

NEW SECTION.

15.415 Grocer reinvestment and local food processing fund.

1.

a.

A grocer reinvestment and local food processing fund is created in the state treasury under the control of the authority.

The fund shall consist of moneys appropriated by the general assembly to the authority and any other moneys available to, obtained by, or accepted by the authority for placement in the fund.

The fund shall be used to award financial assistance as provided under the grocer reinvestment program established in section 15.413 and the local produce processing grant program established in section 15.414.

b.

Commencing with the fiscal year beginning July 1, 2025, and each fiscal year thereafter, one hundred thousand dollars LSB 1325HZ (4) 91 -3- nls/ko 3/7 H.F.

1032 of the annual appropriation to the fund, or ten percent of the moneys in the fund available on July 1, whichever is less, shall be allocated to the local produce processing grant program established in section 15.414.

c.

The authority may use not more than five percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, marketing, technical assistance, and other program support.

2.

Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.

DIVISION II LOCAL FOOD AND FARM PROGRAM —— GROCERY STORES Sec.

CODE EDITOR DIRECTIVE.

The Code editor is directed to designate section 187.331, as enacted in this division of this Act, as part 4 of subchapter III, chapter 187, entitled “Local Produce Processing Grant Program”.

DIVISION II LOCAL FOOD AND FARM PROGRAM —— GROCERY STORES Sec.

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1032 1.

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1032 NEW SUBSECTION.

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EXPLANATIONHF The1032 inclusion(5) of91 this-5- explanationnls/ko/md does5/5 not constitute agreement with the explanation’s substance by the members of the general assembly.

This bill creates a grocer reinvestment program (grocer program), a local produce processing grant program (processing program), a grocer reinvestment and local food processing fund (fund).

DIVISION I.

The bill defines “grocery store” to mean an establishment also known as a supermarket that primarily engages in retailing a general line of food including canned and frozen food;

fresh fruits and vegetables;

and fresh and prepared meat, fish, and poultry.

The bill defines “financial assistance” to mean assistance provided in the form of a grant.

Under the bill, the economic development authority (authority) shall administer the grocer program for the purpose of awarding financial assistance to eligible grocery stores for projects located in this state including capital improvements, utility upgrades, equipment and furnishings, professional services, and technology.

The bill allows the authority to establish the eligibility criteria for the grocer program by rule.

The eligibility criteria must include compliance with any documents required to be filed with the secretary of state;

an organizational structure that is a sole proprietorship, partnership, limited liability company, corporation, cooperative, nonprofit LSB 1325HZ (4) 91 -5- nls/ko 5/7 H.F.

1032 organization, or nonprofit community development entity;

ownership of 10 or fewer grocery stores;

and the capacity to successfully complete the project and demonstrate a plan for sustainability.

In order to be awarded financial assistance pursuant to the bill, a grocery store must provide matching funds for the project that equal the amount of the financial assistance award.

The bill specifies a financial assistance award shall not exceed $100,000.

Under the bill, priority shall be given to projects that accept benefits under the United States department of agriculture supplemental nutrition assistance program, and special supplemental nutrition program for women, infants, and children;

create or retain jobs;

make efforts to procure and offer local foods for sale;

and any other criteria determined by the authority.

The authority shall prioritize eligible grocery stores based on the population of the community in which the eligible grocery store is located, with priority given to eligible grocery stores located in the least-populated communities.

The authority is required to submit a report to the general assembly describing the activities of the grocer program by November 1, 2026, and each November 1 thereafter, if financial assistance has been provided in the immediately preceding fiscal year.

The report shall include the geographic distribution of the projects, the identity of the applicants, and new investments or new jobs created.

The bill also establishes the processing program.

Under the bill, the authority shall administer the processing program for the purpose of awarding grants to Iowa-based entities to increase the availability of local produce processing.

The bill defines both “local produce” and “local produce and processing”.

The bill requires the authority to prioritize grants to entities that increase the availability, access, efficiency, or capacity of local produce processing.

The bill LSB 1325HZ (4) 91 -6- nls/ko 6/7 H.F.

1032 prohibits grants to an entity unless the entity processes local produce from multiple Iowa-based farms.

The bill establishes the fund under the control of the authority for the purpose of awarding financial assistance to eligible grocery stores under the grocer program and awarding grants to entities that increase local produce processing under the processing program.

Commencing with the fiscal year beginning July 1, 2025, and each fiscal year thereafter, $100,000 of the annual appropriation, or 10 percent of the moneys available in the fund on July 1, whichever is less, shall be allocated to the processing program created in the bill.

DIVISION II.

The bill changes the purpose and goals of the local food and farm program in Code chapter 267A to include the retailing of local food, and increasing the availability and viability of grocery stores in this state.

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