Florida Senate - 2016                              CS for SB 760
       By the Committee on Agriculture; and Senator Bean
       575-02015-16                                           2016760c1
    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.
   19  Be It Enacted by the Legislature of the State of Florida:
   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.
  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)Acquisition of seeds and starter plants for the
  173  residential cultivation of fruits, vegetables, herbs, and other
  174  culinary products. However, only 5 percent of the total funds
  175  expended in any one project under this section may be used for
  176  such acquisition.
  177         (i)Other purposes as determined by the department or a
  178  third-party administrator.
  179         (7) The department shall adopt rules to administer this
  180  section.
  181         Section 2. The creation of the Healthy Food Financing
  182  Initiative and implementation of this act are contingent upon
  183  appropriation by the Legislature.
  184         Section 3. This act shall take effect July 1, 2016.