,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #heca  ,,in ,,the ,,house ,,of  
,,representatives  ,october #f1         
#bjbj,mr4 ,carson of ,indiana introduced
 the following bill2 which was referred 
to the ,committee on ,agriculture  ,a   
,,bill  ,to direct the ,secretary of    
,agriculture to make grants to ,states  
to support the establishment and        
operation of grocery stores in          
underserved communities1 and for other  
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,food ,deserts ,act 
of #bjbj4  #b4 ,grant program to        
establish grocery stores in underserved 
communities  7a7 ,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           
communities4  7b7 ,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 ,act4  7c7        
,projects and activities eligible for   
assistance ,amounts in a revolving fund 
shall be used for the purpose of making 
loans--  7#a7 to open a grocery store in
 an underserved community1 except that  
such loan may not be used for the       
purpose of new construction2  7#b7 to   
support the operations of an existing   
grocery store in an underserved         
community2  7#c7 to facilitate the fair 
market value purchase of an existing    
grocery store in an underserved         
community2 or  7#d7 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    
community4  7d7 ,grocery stores eligible
 for assistance  7#a7 ,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-- 7,a7 is a grocery store or 
will be a grocery store after opening2  
7,b7 emphasizes or will emphasize       
unprocessed1 healthful foods2  7,c7     
provides or will provide a variety of   
raw fruits and vegetables2  7,d7        
provides or will provide staple foods2  
7,e7 has a plan to keep such foods in   
stock to the extent possible2  7,f7     
charges or will charge prices at or     
below market averages2  7,g7 either--   
7i7 is demonstrably qualified to operate
 a grocery store2 or  7ii7 at the time  
of such application1 has existing       
partnerships with organizations that    
provide technical assistance on business
 operations of food services2 and  7,h7 
will match no less than #bj percent1    
from non-,federal funds1 of the amount  
of such loan4  7#b7 ,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--     
7,a7 hires or plans to hire workers who 
reside within the underserved community 
that would be served by the entity2     
7,b7 provides or plans to provide       
classes or other educational information
 about a healthful diet2  7,c7 sources  
or plans to source food from local urban
 farms and gardens2  7,d7 does not or   
will not sell alcohol or tobacco        
products2 or  7,e7 demonstrates existing
 supply chain relationships in the      
grocery industry4  7e7 ,application ,an 
entity that desires a loan from a       
revolving fund of a ,state shall submit 
an application to the ,state at such    
time1 in such manner1 and containing    
such information as the ,state may      
require4  7f7 ,loan conditions  7#a7 ,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 7c74   
7#b7 ,interest rates ,a loan distributed

 by a ,state from a revolving fund--    
7,a7 shall be made at or below market   
interest rates2 and  7,b7 may be an     
interest free loan1 at terms not to     
exceed the lesser of #cj years or the   
projected useful life 7as determined by 
the ,state7 of the project to be        
financed with the proceeds of the loan4 
7#c7 ,structure of loan ,a loan may be  
distributed from a revolving fund by a  
,state to a program participant in--    
7,a7 a lump sum2 or  7,b7 in multiple   
distributions over a period of years1 if
 the ,state determines multiple         
distributions are necessary to carry out
 the project4  7#d7 ,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 #aj percent of the amount      
available from the fund for making      
distributions in that fiscal year4  7#e7
 ,payments ,annual principal and        
interest payments on a loan received    
from a revolving fund of a ,state shall 

commence not later than #a 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 loan4  7#f7 ,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 ,state4  7#g7       
,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    
fund4  7g7 ,administration costs ,a     
,state shall charge a program           
participant an administrative fee of not
 more than #d percent of the loan       
amount4 ,the ,state shall use the fees  
to administer the revolving fund and    
conduct administration activities under 
this ,act4  7h7 ,technical assistance   
,the ,secretary shall provide technical 
assistance to program participants to   
assist with sourcing of food1 food      
storage1 and other operational          

requirements4  7i7 ,bankruptcy ,in the  
case of the bankruptcy of a program     
participant1 amounts owed on a loan from
 a revolving fund shall be afforded     
precedence over other debt4  7j7 ,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      
underserved1 recipients of loans under  
this section in such community-- 7#a7   
shall not be eligible for further loans 
under this section2 and  7#b7 may not   
have their loan agreements altered4  7k7
 ,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           
participant4  #c4 ,capitalization grants
 to fund ,state revolving funds  7a7    

,eligibility of ,state for              
capitalization grant ,to be eligible for
 a capitalization grant1 a ,state       
shall-- 7#a7 establish a revolving fund 
that complies with the requirements of  
this ,act2 and  7#b7 establish a process
 for applications and criteria for      
making loans from the revolving fund1   
subject to the requirements in section  
#b7;d74  7b7 ,upon receipt of           
capitalization grant ,upon the receipt  
of a capitalization grant1 a ,state     
shall deposit such capitalization grant 
into the revolving fund of the ,state4  
7c7 ,distribution ,for a fiscal year1   
the ,secretary shall apportion amounts  
made available for capitalization grants
 under this section among the ,states   
eligible under subsection 7a7 in the    
ratio that-- 7#a7 the population of     
underserved communities in each ,state  
eligible under subsection 7a71 bears to 
7#b7 the population of underserved      
communities in all ,states eligible     
under subsection 7a74  #d4              

,authorization of appropriations ,there 
is authorized to be appropriated to     
carry out this ,act #aej1jjj1jjj for    
fiscal year #bjbj4  #e4 ,definitions ,in
 this ,act3 7#a7 ,capitalization grant  
,the term capitalization grant means a  
grant made to a ,state under the        
program4  7#b7 ,healthful food ,the term
 healthful food means food that reflects
 the most recent ,dietary ,guidelines   
for ,americans4  7#c7 ,grocery store    
,the term grocery store means a retail  
store that derives income primarily from
 the sale of food for home preparation  
and consumption4  7#d7 ,program ,the    
term program means the program described
 in section #b7;a74  7#e7 ,program      
participant ,the term program           
participant means an entity that has    
received a loan under the program4  7#f7
 ,revolving fund ,the term revolving    
fund means a fund established by a      
,state for use as a depository for a    
capitalization grant4  7#g7 ,secretary  
,the term ,secretary means the          

,secretary of ,agriculture4  7#h7       
,staple food ,the term staple food has  
the meaning given the term in section   
#bdc7;b7 of the of the ,department of   
,agriculture ,reorganization ,act of    
#aiid 7#g ,u4,s4,c4 #fiec7;b774  7#i7   
,state ,the term ,state means ,states of
 the ,union1 the ,district of ,columbia1
 ,puerto ,rico1 the ,virgin ,islands1   
,guam1 ,american ,samoa1 and the        
,northern ,mariana ,islands4  7#aj7     
,underserved community ,the term        
underserved community has the meaning   
given the term in section               
#caj;,b7g77#i77;,a7 of the ,consolidated
 ,farm and ,rural ,development ,act 7#g 
,u4,s4,c4 #aicb7;g77#i77;,a774