Findings

Congress finds the following: (1)The retail grocery sector is a critical component of the food supply chain and economy of the United States. (2)Recent proposals in various municipalities have advocated for public grocery stores. (3)Such proposals raise questions about— (A)the competitive dynamics between public and private grocery stores with respect to pricing, market access, and consumer choice; (B)impacts on farmers and food banks; and (C)long-term sustainability. (4)The Federal Trade Commission has expertise in analyzing competitive practices with respect to retail markets and is well positioned to assess the effects of government entry into consumer markets.

Study on impacts of public grocery stores

(a)

In general

Not later than 180 days after the date of the enactment of this Act, the Commission, in consultation with the Administrator of the Agricultural Marketing Service and the Administrator of the Food and Nutrition Service of the Department of Agriculture, shall conduct a study on the impacts of public grocery stores that includes an analysis of the following: (1)The competitive impacts of such stores on the following: (A)Small, medium, and large private grocery stores. (B)Farmers. (C)Food banks and other charitable organizations. (D)Wholesale food prices and food supply chains, including impacts with respect to purchasing power, market share shifts, and local and regional food distribution networks. (E)The retail grocery sector generally. (2)The impacts of public grocery stores on consumer access, choice, and prices, including with respect to food deserts. (3)Whether public grocery stores would receive subsidies, tax exemptions, or regulatory advantages that may alter competition. (4)How public grocery stores may affect local, regional, and national agriculture, including prices received by producers. (5)Long-term market impacts with respect to the retail grocery sector, including barriers for private entities to enter and exit such sector. (6)Concerns with respect to unfair competition or market distortion. (b)

Use of existing data

In conducting the study under subsection (a), the Commission shall use available data of the Commission, the Department of Agriculture, and other relevant sources, including State and local economic development records, industry reports, and public procurement disclosures. (c)

Report

Not later than 1 year after the date of the completion of the study required under subsection (a), and annually thereafter, the Commission shall submit to Congress a report that includes information relating to the following: (1)The results of such study. (2)Recommendations for administrative and legislative action with respect to any concerns identified in such study. (d)

Definitions

In this section: (1)

Commission

The term Commission means the Federal Trade Commission. (2)

Food bank

The term food bank means a nonprofit organization that collects, warehouses, and distributes donated or purchased food. (3)

Food desert

The term food desert means a census tract that has a poverty rate of 20 percent or higher and has at least 500 residents that live more than 1 mile from a supermarket or large grocery store. (4)

Private grocery store

The term private grocery store means a business that— (A)is not owned by a Federal, State, or local government entity; and (B)sells general food products. (5)

Public grocery store

The term public grocery store means a business that— (A)is directly owned or operated by a Federal, State, or local government entity; and (B)sells general food products.