Florida Senate - 2016 CS for CS for SB 760
By the Committees on Appropriations; and Agriculture; and
Senators Bean, Sobel, Soto, and Flores
576-04445-16 2016760c2
1 A bill to be entitled
2 An act relating to the Healthy Food Financing
3 Initiative; providing definitions; directing the
4 Department of Agriculture and Consumer Services to
5 establish a Healthy Food Financing Initiative program
6 to provide specified financing to construct,
7 rehabilitate, or expand independent grocery stores and
8 supermarkets in underserved communities in low-income
9 and moderate-income communities; authorizing the
10 department to contract with a third-party
11 administrator; establishing funding specifications for
12 administrators; providing program, project, and
13 applicant requirements; authorizing funds to be used
14 for specified purposes; directing the department to
15 submit an annual report to the Legislature and adopt
16 rules; providing that implementation of the program is
17 contingent upon legislative appropriation; providing
18 an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Healthy Food Financing Initiative.—
23 (1) As used in this section, the term:
24 (a) “Community facility” means a property owned by a
25 nonprofit or for-profit entity or a unit of government in which
26 health and human services are provided and space is offered in a
27 manner that provides increased access to, or delivery or
28 distribution of, food or other agricultural products to
29 encourage public consumption and household purchases of fresh
30 produce or other healthy food to improve the public health and
31 well-being of low-income children, families, and older adults.
32 (b) “Department” means the Department of Agriculture and
33 Consumer Services.
34 (c) “Independent grocery store or supermarket” means an
35 independently owned grocery store or supermarket whose parent
36 company does not own more than 40 grocery stores throughout the
37 country based upon ownership conditions as identified in the
38 latest Nielsen TDLinx Supermarket/Supercenter database.
39 (d) “Low-income community” means a population census tract,
40 as reported in the most recent United States Census Bureau
41 American Community Survey, which meets one of the following
42 criteria:
43 1. The poverty rate is at least 20 percent;
44 2. In the case of a low-income community located outside of
45 a metropolitan area, the median family income does not exceed 80
46 percent of the statewide median family income; or
47 3. In the case of a low-income community located inside of
48 a metropolitan area, the median family income does not exceed 80
49 percent of the statewide median family income or 80 percent of
50 the metropolitan median family income, whichever is greater.
51 (e) “Moderate-income community” means a population census
52 tract, as reported in the most recent United States Census
53 Bureau American Community Survey, in which the median family
54 income is between 81 percent and 95 percent of the statewide
55 median family income or metropolitan median family income.
56 (f) “Program” means the Healthy Food Financing Initiative
57 established by the department.
58 (g) “Underserved community” means a distressed urban,
59 suburban, or rural geographic area where a substantial number of
60 residents have low access to a full-service supermarket or
61 grocery store. An area with limited supermarket access must be:
62 1. A census tract, as determined to be an area with low
63 access by the United States Department of Agriculture, as
64 identified in the Food Access Research Atlas;
65 2. Identified as a limited supermarket access area as
66 recognized by the Community Development Financial Institutions
67 Fund of the United States Department of the Treasury; or
68 3. Identified as an area with low access to a supermarket
69 or grocery store through a methodology that has been adopted for
70 use by another governmental initiative, or well-established or
71 well-regarded philanthropic healthy food initiative.
72 (2) The department shall establish a Healthy Food Financing
73 Initiative program that is composed of and coordinates the use
74 of federal, state, and private loans or grants, federal tax
75 credits, and other types of financial assistance for the
76 construction, rehabilitation, or expansion of independent
77 grocery stores, supermarkets, and community facilities to
78 increase access to fresh produce and other nutritious food in
79 underserved communities.
80 (3)(a) The department may contract with one or more
81 qualified nonprofit organizations or Florida-based federally
82 certified community development financial institutions to
83 administer the program through a public-private partnership.
84 Eligible community development financial institutions must be
85 able to demonstrate:
86 1. Prior experience in healthy food financing.
87 2. Support from the Community Development Financial
88 Institutions Fund of the United States Department of the
89 Treasury.
90 3. The ability to successfully manage and operate lending
91 and tax credit programs.
92 4. The ability to assume full financial risk for loans made
93 under this initiative.
94 (b) The department shall:
95 1. Establish program guidelines, raise matching funds,
96 promote the program statewide, evaluate applicants, underwrite
97 and disburse grants and loans, and monitor compliance and
98 impact. The department may contract with a third-party
99 administrator to carry out such duties. If the department
100 contracts with a third-party administrator, funds shall be
101 granted to the third-party administrator to create a revolving
102 loan fund for the purpose of financing projects that meet the
103 criteria of the program. The third-party administrator shall
104 report to the department annually.
105 2. Create eligibility guidelines and provide financing
106 through an application process. Eligible projects must be:
107 a. Located in an underserved community;
108 b. Primarily serve low-income or moderate-income
109 communities; and
110 c. Provide for the construction of new independent grocery
111 stores or supermarkets; the renovation or expansion of,
112 including infrastructure upgrades to, existing independent
113 grocery stores or supermarkets; or the construction, renovation,
114 or expansion of, including infrastructure upgrades to, community
115 facilities to improve the availability and quality of fresh
116 produce and other healthy foods.
117 3. Report annually to the President of the Senate and the
118 Speaker of the House of Representatives on the projects funded,
119 the geographic distribution of the projects, the costs of the
120 program, and the outcomes, including the number and type of jobs
121 created and health initiatives associated with the program.
122 (4) A for-profit entity or a not-for-profit entity,
123 including, but not limited to, a sole proprietorship,
124 partnership, limited liability company, corporation,
125 cooperative, nonprofit organization, nonprofit community
126 development entity, university, or governmental entity may apply
127 for financing. An applicant for financing must:
128 (a) Demonstrate the capacity to successfully implement the
129 project and the likelihood that the project will be economically
130 self-sustaining;
131 (b) Demonstrate the ability to repay the loan; and
132 (c) Agree, as an independent grocery store or supermarket,
133 for at least 5 years, to:
134 1. Accept Supplemental Nutrition Assistance Program
135 benefits;
136 2. Apply to accept Special Supplemental Nutrition Program
137 for Women, Infants, and Children benefits and accept such
138 benefits, if approved;
139 3. Allocate at least 30 percent of food retail space for
140 the sale of perishable foods, which may include fresh or frozen
141 dairy products, fresh produce, and fresh meats, poultry, and
142 fish;
143 4. Comply with all data collection and reporting
144 requirements established by the department; and
145 5. Promote the hiring of local residents.
146
147 Projects including, but not limited to, corner stores, bodegas,
148 or other types of nontraditional grocery stores that do not meet
149 the 30 percent minimum in subparagraph 3. can still qualify for
150 funding if such funding will be used for refrigeration,
151 displays, or other one-time capital expenditures to promote the
152 sale of fresh produce and other healthy foods.
153 (5) In determining which qualified projects to finance, the
154 department or third-party administrator shall:
155 (a) Give preference to local Florida-based grocers or local
156 business owners with experience in grocery stores and to grocers
157 and business owners with a business plan model that includes
158 written documentation of opportunities to purchase from Florida
159 farmers and growers before seeking out-of-state purchases;
160 (b) Consider the level of need in the area to be served;
161 (c) Consider the degree to which the project will have a
162 positive economic impact on the underserved community, including
163 the creation or retention of jobs for local residents; and
164 (d) Consider other criteria as determined by the
165 department.
166 (6) Financing for projects may be used for the following
167 purposes:
168 (a) Site acquisition and preparation.
169 (b) Construction and build-out costs.
170 (c) Equipment and furnishings.
171 (d) Workforce training or security.
172 (e) Predevelopment costs, such as market studies and
173 appraisals.
174 (f) Energy efficiency measures.
175 (g) Working capital for first-time inventory and startup
176 costs.
177 (h) Acquisition of seeds and starter plants for the
178 residential cultivation of fruits, vegetables, herbs, and other
179 culinary products. However, only 5 percent of the total funds
180 expended in any one project under this section may be used for
181 such acquisition.
182 (i) Other purposes as determined by the department or a
183 third-party administrator.
184 (7) The department shall adopt rules to administer this
185 section.
186 Section 2. Implementation of the Healthy Food Financing
187 Initiative is contingent upon appropriation by the Legislature.
188 Section 3. This act shall take effect July 1, 2016.