HB 1609 Summary

• Creates the Grocery Store Development Loan Program to provide loans up to $200,000 to construct new grocery stores selling fresh produce and nonprocessed protein in underserved areas with no competing grocery stores within a 10-minute driving radius.

• Establishes the Grocery Store Development Loan Program Fund, funded by $500,000 in state general obligation bonds, with loan repayment at 5% annual interest over up to 10 years.

• Provides grocery store operators with rebates equal to 80% of sales tax revenue collected from the store, capped at 30% of total approved project costs, with rebates ending after 10 years or when the cap is reached.

• Requires all grocery stores funded by the program to be operational by December 31, 2017, and allows municipalities or counties to receive up to 5% of the sales tax rebates to reimburse infrastructure costs.

• Directs 80% of sales tax revenue from qualifying grocery store development projects to the Grocery Store Development Loan Program Fund after standard sales tax diversions, effective July 1, 2014.