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House File 1032 - Introduced HOUSE FILE 1032 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 550) (SUCCESSOR TO HF 59) 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.
House File 1032 - Reprinted HOUSE FILE 1032 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 550) (SUCCESSOR TO HF 59) (As Amended and Passed by the House April 24, 2025) 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.
TLSB 1325HZ (4) 91 nls/ko H.F.
HF 1032 (5) 91 nls/ko/md H.F.
and fresh and prepared meat, fish, and poultry.
and fresh and prepared meat, fish, and poultry, and the establishment meets either of the following requirements:
(1) A minimum of fifty percent of the retail space in the establishment is dedicated to retailing a general line of food.
(2) A minimum of thirty percent of the establishment’s revenue derives from retailing a general line of food.
a.
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1032 a.
The grocery store is organized as a sole proprietorship, partnership, limited liability company, corporation, LSB 1325HZ (4) 91 -1- nls/ko 1/7 H.F.
The grocery store is organized as a sole proprietorship, partnership, limited liability company, corporation, cooperative, nonprofit organization, or nonprofit community development entity.
1032 cooperative, nonprofit organization, or nonprofit community development entity.
By November 1, 2026, and each November 1 thereafter, if financial assistance has been provided in the immediately preceding fiscal year, the director shall submit a report to the general assembly describing the activities of the program including the geographic distribution of the projects, the identity of the applicants, and the new investments or new jobs created as a result of the financial assistance provided under the program.
By November 1, 2026, and each November 1 thereafter, if financial assistance has been provided in the immediately preceding fiscal year, the director shall submit a report to the general assembly describing the activities of the program HF 1032 (5) 91 -2- nls/ko/md 2/5 H.F.
1032 including the geographic distribution of the projects, the identity of the applicants, and the new investments or new jobs created as a result of the financial assistance provided under the program.
15.414 Local produce processing grant LSB 1325HZ (4) 91 -2- nls/ko 2/7 H.F.
15.415 Grocer reinvestment and local food processing fund.
1032 program.
As used in this section:
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 187.331.
b.
Commencing with the fiscal year beginning July 1, 2025, and each fiscal year thereafter, one hundred thousand dollars 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 187.331.
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.
Sec.
3.
NEW SECTION.
187.331 Local produce processing grant program.
1.
As used in this section:
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1032 a.
“Local produce and processing” means the preparation of local produce for human consumption.
“Local produce processing” means the preparation of local produce for human consumption.
The department shall establish and administer the local produce processing grant program for the purpose of awarding grants to Iowa-based entities to increase the availability of local produce processing.
In administering the program, the department shall prioritize grants to all of the following:
The authority shall establish and administer the local produce processing grant program for the purpose of awarding grants to Iowa-based entities to increase the availability of local produce processing.
Iowa-based entities that will increase any of the following as it relates to local produce processing:
In administering the program, the authority shall prioritize grants to Iowa-based entities that will increase any of the following as it relates to local produce processing:
A grant shall not be awarded to an entity unless the local produce processing includes local produce from multiple Iowa-based farms.
Iowa-based entities that process local produce from three or more Iowa farms.
c.
A person participating in the choose Iowa promotional program under section 187.303.
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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.
The authority may adopt rules pursuant to chapter 17A to administer this section.
An Iowa-based entity whose local produce processing includes local produce from three 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.
5.
1.
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1032 1.
5.
6.
6.
7.
7.
8.
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NEW SUBSECTION .
1032 NEW SUBSECTION.
8.
9.
EXPLANATION The inclusion of this explanation does not constitute agreement with the explanation’s substance by the members of the general assembly.
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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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