Arkansas 2025 Regular Session

Arkansas House Bill HB1965 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 870 of the Regular Session
3	2		JLL147 03/28/2025 11:20:35 AM JLL147
4	3		State of Arkansas 1
5	4		95th General Assembly A Bill 2
6	5		Regular Session, 2025 HOUSE BILL 1965 3
7	6		4
8	7		By: Representative McCullough 5
9	8		By: Senator K. Hammer 6
10	9		7
11	10		For An Act To Be Entitled 8
12	11		AN ACT TO CREATE THE ARKANSAS HEALTHY FOOD RETAIL ACT 9
13	12		OF 2025; TO PROVIDE FINANCIAL INCENTIVES FOR HEALTHY 10
14	13		FOOD RETAILERS IN UNDERSERVED COMMUNITIES; AND FOR 11
15	14		OTHER PURPOSES. 12
16	15		13
17	16		14
18	17		Subtitle 15
19	18		TO CREATE THE ARKANSAS HEALTHY FOOD 16
20	19		RETAIL ACT OF 2025; AND TO PROVIDE 17
21	20		FINANCIAL INCENTIVES FOR HEALTHY FOOD 18
22	21		RETAILERS IN UNDERSERVED COMMUNITIES. 19
23	22		20
24	23		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
25	24		22
26	25		SECTION 1. Arkansas Code Title 15, Chapter 4, is amended to add an 23
27	26		additional subchapter to read as follows: 24
28	27		Subchapter 40 — Arkansas Healthy Food Retail Act of 2025 25
29	28		26
30	29		15-4-4001. Title. 27
31	30		This subchapter shall be known and may be cited as the "Arkansas 28
32	31		Healthy Food Retail Act of 2025". 29
33	32		30
34	33		15-4-4002. Legislative findings and intent. 31
35	34		(a) The General Assembly finds that: 32
36	35		(1) When fresh produce and other healthy foods are not readily 33
37	36		available or affordable, people, particularly low -income families, children, 34
38	37		and the elderly, face serious barriers to eating a healthy diet; 35
39	38		(2) Research in Arkansas and the nation shows that residents of 36 HB1965
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42	41		low-income, minority, and rural communities are most often affected by high 1
43	42		rates of obesity and poor access to supermarkets and other healthy food 2
44	43		retailers; 3
45	44		(3) Obesity, which frequently results from poor diet and 4
46	45		physical inactivity, is America's fast -growing cause of disease and death; 5
47	46		(4) Arkansas has one of the highest rates of obesity nationwide, 6
48	47		putting growing numbers of Arkansas adults and children at risk for 7
49	48		developing heart disease, Type 2 diabetes, hypertension, certain cancers, and 8
50	49		other health problems; 9
51	50		(5) Increasing access to retail food outlets that sell fresh 10
52	51		fruits and vegetables and other healthy food is an essential strategy for 11
53	52		fighting the obesity epidemic and improving health; 12
54	53		(6) Studies have shown that people with better access to 13
55	54		supermarkets and fresh produce tend to have healthier diets and lower levels 14
56	55		of obesity; and 15
57	56		(7) Developing quality retail food outlets also creates jobs, 16
58	57		expands markets for Arkansas farmers, and supports economic vitality in 17
59	58		underserved communities. 18
60	59		(b) It is the intent of the General Assembly that the Healthy Food 19
61	60		Retailer Program established under this subchapter shall: 20
62	61		(1) Provide a reliable source of financing for healthy food 21
63	62		retailers operating in underserved communities in the state in both rural and 22
64	63		urban areas; 23
65	64		(2) Increase access to affordable healthy food to improve diets 24
66	65		and health; 25
67	66		(3) Promote the sale and consumption of fresh produce, 26
68	67		particularly fresh produce that is grown in Arkansas; and 27
69	68		(4) Support the expansion of economic opportunities in low -28
70	69		income and rural communities. 29
71	70		30
72	71		15-4-4003. Definitions. 31
73	72		As used in this subchapter: 32
74	73		(1) "Funding" means grants, loans, or a combination of grants 33
75	74		and loans; 34
76	75		(2) "Healthy food retailers" means for -profit or nonprofit 35
77	76		retailers that sell high -quality, fresh produce at competitive prices to 36 HB1965
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80	79		various sellers, including without limitation supermarkets, grocery stores, 1
81	80		and farmers' markets; and 2
82	81		(3) "Underserved community" means a geographic area with limited 3
83	82		access to healthy food retailers in a low -income, low-access, or high-poverty 4
84	83		area or an area otherwise determined to have serious healthy, nutritional 5
85	84		food limitations. 6
86	85		7
87	86		15-4-4004. Healthy Food Retailer Program — Establishment and 8
88	87		administration. 9
89	88		(a) To the extent funds are available, the Arkansas Economic 10
90	89		Development Commission, in cooperation with public and private sector 11
91	90		partners, shall establish the Healthy Food Retailer Program that provides 12
92	91		funding directly and indirectly to healthy food retailers that increase 13
93	92		access to fresh fruits and vegetables and other affordable healthy food in 14
94	93		underserved communities. 15
95	94		(b)(1)(A) The commission may contract with one (1) or more qualified 16
96	95		nonprofit organizations, community development financial institutions, or 17
97	96		consultants experienced in food retail to design and administer the Healthy 18
98	97		Food Retailer Program through a public -private partnership to leverage funds, 19
99	98		market the program statewide, evaluate applicants, make funding award 20
100	99		decisions, underwrite loans, and monitor compliance and impact. 21
101	100		(B) A nonprofit organization or a community development 22
102	101		financial institution that partners with the commission may allocate a 23
103	102		portion of the funds received under the Healthy Food Retailer Program to 24
104	103		cover administrative costs associated with administering the program. 25
105	104		(2) The commission shall coordinate with complimentary nutrition 26
106	105		assistance and education programs in administering the Healthy Food Retailer 27
107	106		Program. 28
108	107		(c) The Healthy Food Retailer Program shall provide funding on a 29
109	108		competitive basis as appropriate for each project awarded funding. 30
110	109		(d) The Healthy Food Retailer Program may provide funding through 31
111	110		grants, subgrants, and contracts for projects that align with the goals of 32
112	111		the Health Food Retailer Program, including without limitation: 33
113	112		(1) The construction of new healthy food retailers, including 34
114	113		without limitation supermarkets and grocery stores; 35
115	114		(2) Predevelopment activities, store renovations, expansion, and 36 HB1965
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118	117		infrastructure upgrades that improve the availability and quality of fresh 1
119	118		produce; 2
120	119		(3) Farmers' markets, public markets, food cooperatives, mobile 3
121	120		markets and delivery projects, and distribution projects that enable healthy 4
122	121		food retailers in underserved communities to obtain fresh produce regularly; 5
123	122		(4) Equity investments, credit enhancement initiatives, 6
124	123		subordinate debt, and interest rate buy downs that benefit healthy food 7
125	124		retailers; and 8
126	125		(5) Other projects that create or improve healthy food retailers 9
127	126		that meet the intent of this subchapter, as determined by the commission. 10
128	127		(e) Funding made available through the Healthy Food Retailer Program 11
129	128		may be used for the following purposes: 12
130	129		(1) Site acquisition and preparation; 13
131	130		(2) Construction costs; 14
132	131		(3) Equipment and furnishings; 15
133	132		(4) Workforce training; 16
134	133		(5) Security; 17
135	134		(6) Certain predevelopment costs as determined by the 18
136	135		commission, including without limitation market studies and appraisals; 19
137	136		(7) Financial assistance, including without limitation working 20
138	137		capital for first-time inventory, start -up costs, and interest rate buy down; 21
139	138		and 22
140	139		(8) Consulting and technical assistance, including without 23
141	140		limitation stakeholder training and the provision of informational resources 24
142	141		to stakeholders. 25
143	142		(f) A restaurant is not eligible for funding under this subchapter. 26
144	143		(g) An applicant for funding under this subchapter may include without 27
145	144		limitation a sole proprietorship, partnership, limited liability company, 28
146	145		corporation, cooperative, community development entity, institution of higher 29
147	146		education, or governmental entity. 30
148	147		(h) To be considered for funding under this section, an applicant 31
149	148		shall meet the following criteria: 32
150	149		(1) The project for which the applicant seeks funding benefits 33
151	150		an underserved community; 34
152	151		(2) The applicant demonstrates a meaningful commitment to 35
153	152		selling fresh produce according to a measurable standard established by the 36 HB1965
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156	155		commission; and 1
157	156		(3) The applicant accepts the Supplemental Nutrition Assistance 2
158	157		Program and the Special Supplemental Nutrition Program for Women, Infants, 3
159	158		and Children (WIC) benefits. 4
160	159		(i) The commission or its designee shall evaluate each applicant based 5
161	160		on the following criteria to determine the award of funding: 6
162	161		(1) The applicant's demonstrated capacity to successfully 7
163	162		implement the project, including without limitation the applicant's relevant 8
164	163		experience and the likelihood that the project will be economically self -9
165	164		sustaining; 10
166	165		(2) The ability of the applicant to repay debt; 11
167	166		(3) The degree to which the project requires an investment of 12
168	167		public funding to move forward, create an impact, or be competitive; 13
169	168		(4) The level of need in the underserved community to be served 14
170	169		by the project, which may include the consideration of factors that will 15
171	170		improve or preserve retail access for low -income residents, such as the 16
172	171		proximity to public transit lines; 17
173	172		(5) The degree to which the project will promote sales of fresh 18
174	173		produce, particularly Arkansas -grown fruits and vegetables; 19
175	174		(6) The degree to which the project will positively impact the 20
176	175		underserved community, including without limitation creating or retaining 21
177	176		local residents' jobs; and 22
178	177		(7) Any other criteria that the commission determines are 23
179	178		consistent with the intent of this subchapter. 24
180	179		(j) The commission shall: 25
181	180		(1) Establish Healthy Food Retailer Program benchmarks and 26
182	181		reporting processes to ensure that the Healthy Food Retailer Program benefits 27
183	182		both rural and urban communities in Arkansas; 28
184	183		(2) Establish monitoring and accountability mechanisms for 29
185	184		projects that receive funding under this section, such as tracking sales data 30
186	185		for fresh produce; 31
187	186		(3) Prepare and submit an annual report to the Legislative 32
188	187		Council, or if the General Assembly is in session, the Joint Budget 33
189	188		Committee, concerning any projects funded and the outcome data related to 34
190	189		each project; and 35
191	190		(4) Establish rules for implementing this subchapter. 36 HB1965
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194	193		(k) To the extent practicable, funds described in this subchapter may 1
195	194		be used to leverage other funding, including without limitation new markets 2
196	195		tax credits, federal and foundation grant programs, incentives available to 3
197	196		designated renewal communities or empowerment zones, operator equity, and 4
198	197		funding from private -sector financial institutions under the Community 5
199	198		Reinvestment Act of 1977, 12 U.S.C. § 2901 et seq., as it existed on January 6
200	199		1, 2025. 7
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