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.
   20  Be It Enacted by the Legislature of the State of Florida:
   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.
  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.