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LB 375

Adopt the Grocer Reinvestment Option Act

109th Legislature (2025-2026) Introduced by Danielle Conrad and 1 co-sponsor

Establishes the Grocer Reinvestment Option Program to fund small Nebraska grocers in underserved areas with grants for expansion, tech, and cooperative models, boosting healthy-food access.

Title printed. Carryover bill
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Bill Summary · LB 375

Summary of LB 375 — Grocer Reinvestment Option Act

Purpose and intent

LB 375 creates the Grocer Reinvestment Option Program to support small, locally-owned grocery stores in Nebraska that are distant from other shopping options. The bill aims to improve viability and long-term sustainability by providing grants for expansion, technology, cooperative models, and enhanced purchasing power. It envisions a pathway to higher access to nutritious food in underserved areas and encourages transitions to multi-owner or community-supported models.

Key provisions

  • Program and administering body

    • Establishes the Grocer Reinvestment Option Program (the “Program”) to be administered by the Nebraska Department of Economic Development (the Department).
    • The Department may partner with one or more nonprofit organizations or other entities to administer the program.

  • Eligibility and qualifications (Section 3)

    • Eligible applicants: grocery stores registered and in good standing to do business in Nebraska, organized in various forms (partnership, LLC, nonprofit, sole proprietorship, cooperative, etc.).
    • Demonstrated need: the project area must show a level of need for improved access to Groceries.
    • Investments must be new Nebraska investments in an existing store.
    • Applicant must have capacity to implement the project and ensure economic self-sustainability.
    • Target location: stores in cities/villages with fewer than 40,000 residents, or in one of Nebraska’s least-populated counties.

  • Priority criteria (Section 3(4))

    • Commitment to provide matching funds equal to at least 50% of the total project cost.
    • Commitment to accept USDA SNAP and WIC benefits.
    • The grocery store must have 10 or fewer locations at the time of application.
    • Other criteria consistent with the Act’s purposes may be used by the Department.

  • Eligible uses of funds (New investment concepts, Section 2(3))

    • Technical assistance to apply for eligible federal funding opportunities.
    • Technical assistance to transition from a sole proprietorship to a cooperative or multi-owner/community-supported model.
    • Purchases of technology to enhance capacity and resilience (e.g., software/hardware, electronic shelf tags, automated checkout, e-commerce, inventory management, temperature monitoring).
    • Innovations to increase wholesale purchasing power, including feasibility studies and equipment for cooperative purchasing among nearby grocery stores.

  • Funding and administration (Section 4)

    • Creation of the Grocer Reinvestment Option Fund to finance the program.
    • Administrative costs capped at 15% of fund money.
    • Fund sources: legislative transfers, gifts, grants, and private contributions.
    • Investment of available funds per applicable Nebraska investment statutes.
    • The Legislature anticipates appropriating a specified amount for fiscal years 2025-26 and 2026-27.

  • Reporting and accountability (Section 5)

    • The Department must report to the Legislature on funded projects, geographic distribution, applicants, and resulting new investment.

  • Grant terms and recovery (Section 6)

    • Grants must be spent within three years of disbursement.
    • Any unspent or recouped funds must be returned to the General Fund.

  • Rules and implementation (Section 7)

    • The Department may adopt regulations to implement the Act.

Who is affected

  • Primary beneficiaries: small, locally-owned grocery stores in Nebraska that are in underserved or sparsely populated areas.
  • Indirect beneficiaries: residents in those communities who gain improved access to groceries and nutritious foods.
  • Partners: potential public-private and nonprofit organizations involved in program administration and grant delivery.

Timeline and procedural notes

  • Introduced: January 16, 2025
  • Committee: Agriculture
  • Hearing date: February 4, 2025
  • Reporting cycles: annual report to the Legislature (deadline noted as October 31, 2025, and subsequently each October)
  • Funding and rulemaking would follow authorization, with grants expiring three years after disbursement and potential recoupment if not spent.

This Act is designed to foster reinvestment in Nebraska’s independent grocery sector, support cooperative and technology-driven improvements, and expand access to healthy food in rural and underserved areas.

Compiled from official sources — confirm details with the bill’s official record.

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