20 ILCS 750/ Grocery Initiative Act.

(20 ILCS 750/1)

Sec. 1. Short title. This Act may be cited as the Grocery Initiative Act.

(Source: P.A. 103-561, eff. 1-1-24.)

(20 ILCS 750/5)

Sec. 5. Definitions. In this Act:

"Cooperative" means an organization that is organized according to the Co-operative Act.

"Department" means the Department of Commerce and Economic Opportunity.

"Food desert" means a census tract that:

(1) meets one of the following poverty standards:

(A) the census tract has a poverty rate of at least 20%; or

(B) the census tract is not located within a metropolitan statistical area and has a median family income that is less than or equal to 80% of the statewide median household income; or

(C) the census tract is located within a metropolitan statistical area and has a median family income that is less than or equal to 80% of the greater of (i) the statewide median household income or (ii) the metropolitan area median family income; and

(2) meets one of the following population density and food accessibility standards:

(A) the census tract is a rural tract, and at least 33% of the population of the tract or at least 500 residents in the tract reside more than 10 miles from the nearest grocery store; or

(B) the census tract is an urban tract, and at least 33% of the population of the tract or at least 500 residents in the tract reside more than one-half mile from the nearest grocery store.

The Department may also designate an area that does not meet the standards set forth in this definition as a food desert if the designation is made in accordance with criteria established by the Department by rule using data that includes, but is not limited to, poverty metrics and access to existing grocery stores.

"Grocery store" means an existing or planned retail establishment that: (1) has or will have a primary business of selling a variety of grocery products, including fresh produce; (2) derives or will derive no more than 30% of its revenue from sales of tobacco and alcohol in any given year; (3) is or will be classified as a supermarket or other grocery retailer in the 2022 North American Industry Classification System under code 445110; (4) accepts or will accept Supplemental Nutrition Assistance Program benefits and Special Supplemental Nutrition Program for Women, Infants, and Children benefits; and (5) provides or will provide for the retail sale of a substantial variety of perishable foods, including fresh or frozen dairy products, fresh produce, and fresh meats, poultry, and fish.

"Local governmental unit" means any county, municipality, township, special district, or unit that is designated as a unit of local government by law and exercises limited governmental powers or powers in respect to limited governmental subjects. "Local governmental unit" also includes any school district or community college district.

"Not-for-profit corporation" means an organization or institution that is organized and conducted on a not-for-profit basis with no personal profit inuring to anyone as a result of the operation and that is organized according to the General Not For Profit Corporation Act of 1986.

"Rural tract" means a census tract that is not an urban tract.

"Urban tract" means a census tract having its geographic centroid in an urban area, as defined by the Bureau of the Census for the most recent year in which all relevant data to identify food deserts is available.

(Source: P.A. 103-561, eff. 1-1-24.)

(20 ILCS 750/10)

(Section scheduled to be repealed on January 1, 2026)

Sec. 10. Grocery Initiative Study. The Department shall, subject to appropriation, study food insecurity in urban and rural food deserts. The study may include an exploration of the reasons for current market failures, potential policy solutions, geographic trends, and the need for independent grocers, and it shall identify communities at risk of becoming food deserts. The study may also include a disparity study to assess the need for aspirational goals for ownership among minority, women, and persons with a disability as defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. The Department may enter into contracts, grants, or other agreements to complete this study. This report shall be submitted to the General Assembly by December 31, 2024. This Section is repealed on January 1, 2026.

(Source: P.A. 103-561, eff. 1-1-24.)

(20 ILCS 750/15)

(Text of Section before amendment by P.A. 103-957)

Sec. 15. Grocery Initiative Grants and Financial Support.

(a) The Department shall, subject to appropriation, establish the Grocery Initiative to expand access to healthy foods in food deserts in Illinois and areas at risk of becoming food deserts in Illinois by providing grants and other forms of financial assistance to independently owned for-profit grocery stores, cooperative grocery stores, or not-for-profit grocery stores, as well as grocery stores owned and operated by local governmental units. The Department may enter into contracts, grants, or other agreements to administer these grants and other forms of financial assistance. The Department may, by rule, place limits on the size of the grocery stores that are eligible for grants and other financial assistance under this Act, including, but not limited to, limits on the annual revenue or projected revenue of the applicant, number of full-time employees, or square footage of the facilities. The Department may prioritize grant awards and loan funding to applicants based on poverty rates, income, geographic diversity, local ownership, access to grocery stores in the area surrounding proposed project locations, and other factors as determined by the Department. The Department may award grants or provide loans for any one or more of the following:

(1) market and site feasibility studies, promotional materials, and marketing;

(2) salaries and benefits for workers;

(3) rent or a down payment to acquire a facility;

(4) purchase of ownership of a grocery store as part of establishing a new grocery store;

(5) capital improvements, planning, renovations, land acquisition, demolition, durable and non-durable equipment purchases; or

(6) other costs as determined eligible by the Department.

(b) The Department may, subject to appropriation, provide grants for equipment upgrades for existing independently owned for-profit grocery stores, cooperative grocery stores, or not-for-profit grocery stores. The Department shall use no more than 20% of total program funding for this purpose. Equipment upgrades shall be focused on providing access to equipment that is energy efficient.

(Source: P.A. 103-561, eff. 1-1-24.)

(Text of Section after amendment by P.A. 103-957)

Sec. 15. Grocery Initiative Grants and Financial Support.

(a) The Department shall, subject to appropriation, establish the Grocery Initiative to expand access to healthy foods in food deserts in Illinois and areas at risk of becoming food deserts in Illinois by providing grants and other forms of financial assistance to independently owned for-profit grocery stores, cooperative grocery stores, or not-for-profit grocery stores, as well as grocery stores owned and operated by local governmental units. The Department may enter into contracts, grants, or other agreements to administer these grants and other forms of financial assistance. The Department may, by rule, place limits on the size of the grocery stores that are eligible for grants and other financial assistance under this Act, including, but not limited to, limits on the annual revenue or projected revenue of the applicant, number of full-time employees, or square footage of the facilities. The Department may prioritize grant awards and loan funding to applicants based on poverty rates, income, geographic diversity, local ownership, access to grocery stores in the area surrounding proposed project locations, and other factors as determined by the Department. The Department may award grants or provide loans for any one or more of the following:

(1) market and site feasibility studies, promotional materials, and marketing;

(2) salaries and benefits for workers;

(3) rent or a down payment to acquire a facility;

(4) purchase of ownership of a grocery store as part of establishing a new grocery store;

(5) capital improvements, planning, renovations, land acquisition, demolition, durable and non-durable equipment purchases; or

(6) other costs as determined eligible by the Department.

(b) The Department may, subject to appropriation, provide grants for equipment upgrades for existing independently owned for-profit grocery stores, cooperative grocery stores, not-for-profit grocery stores, or farmer-owned grocery stores or markets. The Department shall use no more than 20% of total program funding for this purpose. Equipment upgrades shall be focused on providing access to equipment that is energy efficient.

(Source: P.A. 103-561, eff. 1-1-24; 103-957, eff. 1-1-25.)

(20 ILCS 750/20)

Sec. 20. Technical Assistance.

(a) The Department shall, subject to appropriation, provide technical assistance to grantees awarded grants under the Act, and other small, independently owned grocery stores to ensure their long-term viability and business success. Technical assistance, online resources, and materials provided shall include, but shall not be limited to, business planning, marketing, financing, supply chain management, and workforce development assistance.

(b) The Department may enter into grants, contracts, or other agreements to provide assistance. At least one technical assistance provider shall be located in a county with a population of at least 3,000,000 inhabitants, and at least one provider shall be located in a county with a population of less than 400,000 inhabitants.

(Source: P.A. 103-561, eff. 1-1-24.)

(20 ILCS 750/25)

Sec. 25. Rulemaking. The Department shall adopt rules to implement and administer this Act.

(Source: P.A. 103-561, eff. 1-1-24.)

(20 ILCS 750/30)

Sec. 30. (Amendatory provisions; text omitted).

(Source: P.A. 103-561, eff. 1-1-24; text omitted.)

(20 ILCS 750/35)

Sec. 35. (Amendatory provisions; text omitted).

(Source: P.A. 103-561, eff. 1-1-24; text omitted.)