[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8531 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 8531
To direct the Secretary of Agriculture to make grants to States to
support the establishment and operation of grocery stores in
underserved communities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 6, 2020
Mr. Carson of Indiana introduced the following bill; which was referred
to the Committee on Agriculture
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A BILL
To direct the Secretary of Agriculture to make grants to States to
support the establishment and operation of grocery stores in
underserved communities, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Food Deserts Act of 2020''.
SEC. 2. GRANT PROGRAM TO ESTABLISH GROCERY STORES IN UNDERSERVED
COMMUNITIES.
(a) Establishment of Grant Program.--The Secretary shall establish
a program to provide capitalization grants to States for the purpose of
establishing revolving funds to support the establishment and operation
of grocery stores in underserved communities.
(b) Administration.--A State receiving funds under this Act shall
administer the revolving fund of the State through an instrumentality
of the State with such powers and limitations as may be required to
operate such fund in accordance with the requirements of this Act.
(c) Projects and Activities Eligible for Assistance.--Amounts in a
revolving fund shall be used for the purpose of making loans--
(1) to open a grocery store in an underserved community,
except that such loan may not be used for the purpose of new
construction;
(2) to support the operations of an existing grocery store
in an underserved community;
(3) to facilitate the fair market value purchase of an
existing grocery store in an underserved community; or
(4) to support the operations of a program participant that
is located in a community that would be an underserved
community if the program participant was not located in such
community.
(d) Grocery Stores Eligible for Assistance.--
(1) Required criteria.--A State receiving a capitalization
grant under this Act may only make a loan from the revolving
fund of the State to an entity that the State determines--
(A) is a grocery store or will be a grocery store
after opening;
(B) emphasizes or will emphasize unprocessed,
healthful foods;
(C) provides or will provide a variety of raw
fruits and vegetables;
(D) provides or will provide staple foods;
(E) has a plan to keep such foods in stock to the
extent possible;
(F) charges or will charge prices at or below
market averages;
(G) either--
(i) is demonstrably qualified to operate a
grocery store; or
(ii) at the time of such application, has
existing partnerships with organizations that
provide technical assistance on business
operations of food services; and
(H) will match no less than 20 percent, from non-
Federal funds, of the amount of such loan.
(2) Priority criteria.--A State shall prioritize an
application for a loan from the revolving fund of the State
from an entity that the State determines--
(A) hires or plans to hire workers who reside
within the underserved community that would be served
by the entity;
(B) provides or plans to provide classes or other
educational information about a healthful diet;
(C) sources or plans to source food from local
urban farms and gardens;
(D) does not or will not sell alcohol or tobacco
products; or
(E) demonstrates existing supply chain
relationships in the grocery industry.
(e) Application.--An entity that desires a loan from a revolving
fund of a State shall submit an application to the State at such time,
in such manner, and containing such information as the State may
require.
(f) Loan Conditions.--
(1) In general.--A loan distributed from a revolving fund
by a State may be used by a program participant only for the
purposes specified in subsection (c).
(2) Interest rates.--A loan distributed by a State from a
revolving fund--
(A) shall be made at or below market interest
rates; and
(B) may be an interest free loan, at terms not to
exceed the lesser of 30 years or the projected useful
life (as determined by the State) of the project to be
financed with the proceeds of the loan.
(3) Structure of loan.--A loan may be distributed from a
revolving fund by a State to a program participant in--
(A) a lump sum; or
(B) in multiple distributions over a period of
years, if the State determines multiple distributions
are necessary to carry out the project.
(4) Loan amount.--A State may not provide a loan to a
program participant from the revolving fund of the State in a
fiscal year that exceeds 10 percent of the amount available
from the fund for making distributions in that fiscal year.
(5) Payments.--Annual principal and interest payments on a
loan received from a revolving fund of a State shall commence
not later than 1 year after the loan is disbursed to the
program participant and all loans will be fully amortized upon
the expiration of the term of the loan.
(6) Revenue for repayment.--A program participant shall
establish a dedicated source of revenue for repayment of a loan
received from a revolving fund of a State.
(7) Crediting revolving fund.--A revolving fund of a State
shall be credited with all payments of principal and interest
on all loans made from the revolving fund.
(g) Administration Costs.--A State shall charge a program
participant an administrative fee of not more than 4 percent of the
loan amount. The State shall use the fees to administer the revolving
fund and conduct administration activities under this Act.
(h) Technical Assistance.--The Secretary shall provide technical
assistance to program participants to assist with sourcing of food,
food storage, and other operational requirements.
(i) Bankruptcy.--In the case of the bankruptcy of a program
participant, amounts owed on a loan from a revolving fund shall be
afforded precedence over other debt.
(j) Change in Underserved Status.--In the case of a community that
qualified as underserved during a period in which loans were made by a
State pursuant to this section and no longer qualifies as underserved,
recipients of loans under this section in such community--
(1) shall not be eligible for further loans under this
section; and
(2) may not have their loan agreements altered.
(k) Grocery Store Earnings.--Earnings of a nonprofit organization
or municipally owned program participant that are attributable to a
loan received from a revolving fund of a State shall be used for
reinvestment into the program participant or to support the continuity
of operations of the program participant.
SEC. 3. CAPITALIZATION GRANTS TO FUND STATE REVOLVING FUNDS.
(a) Eligibility of State for Capitalization Grant.--To be eligible
for a capitalization grant, a State shall--
(1) establish a revolving fund that complies with the
requirements of this Act; and
(2) establish a process for applications and criteria for
making loans from the revolving fund, subject to the
requirements in section 2(d).
(b) Upon Receipt of Capitalization Grant.--Upon the receipt of a
capitalization grant, a State shall deposit such capitalization grant
into the revolving fund of the State.
(c) Distribution.--For a fiscal year, the Secretary shall apportion
amounts made available for capitalization grants under this section
among the States eligible under subsection (a) in the ratio that--
(1) the population of underserved communities in each State
eligible under subsection (a), bears to
(2) the population of underserved communities in all States
eligible under subsection (a).
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this Act
$150,000,000 for fiscal year 2020.
SEC. 5. DEFINITIONS.
In this Act:
(1) Capitalization grant.--The term ``capitalization
grant'' means a grant made to a State under the program.
(2) Healthful food.--The term ``healthful food'' means food
that reflects the most recent Dietary Guidelines for Americans.
(3) Grocery store.--The term ``grocery store'' means a
retail store that derives income primarily from the sale of
food for home preparation and consumption.
(4) Program.--The term ``program'' means the program
described in section 2(a).
(5) Program participant.--The term ``program participant''
means an entity that has received a loan under the program.
(6) Revolving fund.--The term ``revolving fund'' means a
fund established by a State for use as a depository for a
capitalization grant.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(8) Staple food.--The term ``staple food'' has the meaning
given the term in section 243(b) of the of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6953(b)).
(9) State.--The term ``State'' means States of the Union,
the District of Columbia, Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Northern Mariana Islands.
(10) Underserved community.--The term ``underserved
community'' has the meaning given the term in section
310B(g)(9)(A) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(g)(9)(A)).
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