Florida Senate - 2016 SB 760 By Senator Bean 4-00668A-16 2016760__ 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; providing program, project, and 12 applicant requirements; authorizing funds to be used 13 for specified purposes; directing the department to 14 submit an annual report to the Legislature and adopt 15 rules; providing that creation and implementation of 16 the program are contingent upon legislative 17 appropriations; providing an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Healthy Food Financing Initiative.— 22 (1) As used in this section, the term: 23 (a) “Community facility” means a property owned by a 24 nonprofit or for-profit entity or a unit of government in which 25 health and human services are provided and space is offered in a 26 manner that provides increased access to, or delivery or 27 distribution of, food or other agricultural products to 28 encourage public consumption and household purchases of fresh 29 produce or other healthy food to improve the public health and 30 well-being of low-income children, families, and older adults. 31 (b) “Department” means the Department of Agriculture and 32 Consumer Services. 33 (c) “Independent grocery store or supermarket” means an 34 independently owned grocery store or supermarket whose parent 35 company does not own more than 40 grocery stores throughout the 36 country based upon ownership conditions as identified in the 37 latest Nielsen TDLinx Supermarket/Supercenter database. 38 (d) “Low-income community” means a population census tract, 39 as reported in the most recent United States Census Bureau 40 American Community Survey, which meets one of the following 41 criteria: 42 1. The poverty rate is at least 20 percent; 43 2. In the case of a low-income community located outside of 44 a metropolitan area, the median family income does not exceed 80 45 percent of the statewide median family income; or 46 3. In the case of a low-income community located inside of 47 a metropolitan area, the median family income does not exceed 80 48 percent of the statewide median family income or 80 percent of 49 the metropolitan median family income, whichever is greater. 50 (e) “Moderate-income community” means a population census 51 tract, as reported in the most recent United States Census 52 Bureau American Community Survey, in which the median family 53 income is between 81 percent and 95 percent of the statewide 54 median family income or metropolitan median family income. 55 (f) “Program” means the Healthy Food Financing Initiative 56 established by the department. 57 (g) “Underserved community” means a distressed urban, 58 suburban, or rural geographic area where a substantial number of 59 residents have low access to a full-service supermarket or 60 grocery store. An area with limited supermarket access must be: 61 1. A census tract, as determined to be an area with low 62 access by the United States Department of Agriculture, as 63 identified in the Food Access Research Atlas; 64 2. Identified as a limited supermarket access area as 65 recognized by the Community Development Financial Institutions 66 Fund of the United States Department of the Treasury; or 67 3. Identified as an area with low access to a supermarket 68 or grocery store through a methodology that has been adopted for 69 use by another governmental initiative, or well-established or 70 well-regarded philanthropic healthy food initiative. 71 (2) The department shall establish a Healthy Food Financing 72 Initiative program that is composed of and coordinates the use 73 of federal, state, and private loans or grants, federal tax 74 credits, and other types of financial assistance for the 75 construction, rehabilitation, or expansion of independent 76 grocery stores, supermarkets, and community facilities to 77 increase access to fresh produce and other nutritious food in 78 underserved communities. 79 (3)(a) The department may contract with one or more 80 qualified nonprofit organizations or Florida-based federally 81 certified community development financial institutions to 82 administer the program through a public-private partnership. 83 Eligible community development financial institutions must be 84 able to demonstrate: 85 1. Prior experience in healthy food financing. 86 2. Support from the Community Development Financial 87 Institutions Fund of the United States Department of the 88 Treasury. 89 3. The ability to successfully manage and operate lending 90 and tax credit programs. 91 4. The ability to assume full financial risk for loans made 92 under this initiative. 93 (b) The department shall: 94 1. Establish program guidelines, raise matching funds, 95 promote the program statewide, evaluate applicants, underwrite 96 and disburse grants and loans, and monitor compliance and 97 impact. The department may contract with a third-party 98 administrator to carry out such duties. The third-party 99 administrator shall report to the department annually. 100 2. Create eligibility guidelines and provide financing 101 through an application process. Eligible projects must be: 102 a. Located in an underserved community; 103 b. Primarily serve low-income or moderate-income 104 communities; and 105 c. Provide for the construction of new independent grocery 106 stores or supermarkets; the renovation or expansion of, 107 including infrastructure upgrades to, existing independent 108 grocery stores or supermarkets; or the construction, renovation, 109 or expansion of, including infrastructure upgrades to, community 110 facilities to improve the availability and quality of fresh 111 produce and other healthy foods. 112 3. Report annually to the President of the Senate and the 113 Speaker of the House of Representatives on the projects funded, 114 the geographic distribution of the projects, the costs of the 115 program, and the outcomes, including the number and type of jobs 116 created and health initiatives associated with the program. 117 (4) A for-profit entity or a not-for-profit entity, 118 including, but not limited to, a sole proprietorship, 119 partnership, limited liability company, corporation, 120 cooperative, nonprofit organization, nonprofit community 121 development entity, university, or governmental entity may apply 122 for financing. An applicant for financing must: 123 (a) Demonstrate the capacity to successfully implement the 124 project and the likelihood that the project will be economically 125 self-sustaining; 126 (b) Demonstrate the ability to repay the loan; and 127 (c) Agree, as an independent grocery store or supermarket, 128 for at least 5 years, to: 129 1. Accept Supplemental Nutrition Assistance Program 130 benefits; 131 2. Apply to accept Special Supplemental Nutrition Program 132 for Women, Infants, and Children benefits and accept such 133 benefits, if approved; 134 3. Allocate at least 30 percent of food retail space for 135 the sale of perishable foods, which may include fresh or frozen 136 dairy products, fresh produce, and fresh meats, poultry, and 137 fish; 138 4. Comply with all data collection and reporting 139 requirements established by the department; and 140 5. Promote the hiring of local residents. 141 142 Projects including, but not limited to, corner stores, bodegas, 143 or other types of nontraditional grocery stores that do not meet 144 the 30 percent minimum in subparagraph 3. can still qualify for 145 funding if such funding will be used for refrigeration, 146 displays, or other one-time capital expenditures to promote the 147 sale of fresh produce and other healthy foods. 148 (5) In determining which qualified projects to finance, the 149 department or third-party administrator shall: 150 (a) Give preference to local Florida-based grocers or local 151 business owners with experience in grocery stores and to grocers 152 and business owners with a business plan model that includes 153 written documentation of opportunities to purchase from Florida 154 farmers and growers before seeking out-of-state purchases; 155 (b) Consider the level of need in the area to be served; 156 (c) Consider the degree to which the project will have a 157 positive economic impact on the underserved community, including 158 the creation or retention of jobs for local residents; and 159 (d) Consider other criteria as determined by the 160 department. 161 (6) Financing for projects may be used for the following 162 purposes: 163 (a) Site acquisition and preparation. 164 (b) Construction and build-out costs. 165 (c) Equipment and furnishings. 166 (d) Workforce training or security. 167 (e) Predevelopment costs, such as market studies and 168 appraisals. 169 (f) Energy efficiency measures. 170 (g) Working capital for first-time inventory and startup 171 costs. 172 (h) Other purposes as determined by the department or a 173 third-party administrator. 174 (7) The department shall adopt rules to administer this 175 section. 176 Section 2. The creation of the Healthy Food Financing 177 Initiative and implementation of this act are contingent upon 178 appropriation by the Legislature. 179 Section 3. This act shall take effect July 1, 2016.