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

This bill creates a grocer reinvestment fund (fund) and program (program) under the purview of the economic development authority (authority), modifies the local food and farm program, and makes appropriations to the fund. DIVISION I —— GROCER REINVESTMENT FUND AND PROGRAM. The bill provides the fund shall consist of moneys appropriated to the authority, and any other moneys placed or accepted into the fund. The fund shall be used to award financial assistance to eligible grocery stores under the program. 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 authority shall administer the 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 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 either a sole proprietorship, partnership, limited liability company, corporation, cooperative, nonprofit organization, or nonprofit community development entity; and ownership of or fewer grocery stores. 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 be less than $50,000 or more than $500,000. Under the bill, priority shall be given to projects located in an underserved community that primarily serves residents of low or moderate income communities; accepts benefits under the United States department of agriculture supplemental nutrition assistance program, and special supplemental nutrition program for women, infants, and children; creates or retains jobs; and any other criteria determined by the authority. The authority is required to submit a report to the general assembly describing the activities of the program by November 1, 2025, and each November thereafter, if applicable. The report shall include the geographic distribution of the projects, the identity of the applicants, and new investments or new jobs created. DIVISION II —— LOCAL FOOD AND FARM PROGRAM —— GROCERY STORES. 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. DIVISION III —— APPROPRIATIONS. The bill appropriates $2 million each of the next two fiscal years (FY 2024-2025 and FY 2025—2026) from the general fund of the state to the fund to provide financial assistance to eligible grocery stores under the program.