Florida Senate - 2017 PROPOSED COMMITTEE SUBSTITUTE Bill No. CS for SB 1592 Ì301744#Î301744 576-03827-17 Proposed Committee Substitute by the Committee on Appropriations (Appropriations Subcommittee on the Environment and Natural Resources) 1 A bill to be entitled 2 An act relating to small food retailers; creating s. 3 595.430, F.S.; establishing the Healthy Food 4 Assistance Program within the Department of 5 Agriculture and Consumer Services; providing a 6 purpose; requiring the Office of Program Policy 7 Analysis and Government Accountability to conduct an 8 independent study evaluating the program’s policy 9 impact; providing for future repeal and legislative 10 review; creating s. 595.431, F.S.; providing 11 definitions; creating s. 595.432, F.S.; requiring the 12 department to develop guidelines and administer the 13 program; providing department duties and 14 responsibilities; providing for funding; creating s. 15 595.433, F.S.; providing duties and responsibilities 16 of program administrators; exempting program 17 administrators from provisions relating to state 18 procurement of certain property and services; 19 repealing s. 500.81, F.S., relating to the Healthy 20 Food Financing Initiative; providing an effective 21 date. 22 23 WHEREAS, overweight children and adults are at greater risk 24 for numerous adverse health consequences, including type 2 25 diabetes, heart disease, stroke, high blood pressure, high 26 cholesterol, certain cancers, asthma, low self-esteem, 27 depression, and other debilitating diseases, and 28 WHEREAS, in Florida, nearly 27 percent of adults were 29 considered overweight or obese in 2015, and nearly 13 percent of 30 children were considered overweight and obese in 2011, and 31 WHEREAS, obese children are at least twice as likely as 32 non-obese children to become obese adults, and 33 WHEREAS, overweight and obese individuals, particularly 34 older adults, can also be malnourished, defined as lacking the 35 proper amount of essential nutrients, thus often increasing 36 their risk of muscle wasting, which can lead to disability and 37 poor health outcomes, and 38 WHEREAS, obesity-related health conditions have serious 39 economic costs, and 40 WHEREAS, annual health care costs from obesity are at least 41 $190 billion dollars, or 21 percent of the nation’s total health 42 care spending, and are expected to rise substantially, and 43 WHEREAS, roughly 40 percent of these costs are paid through 44 Medicare and Medicaid, meaning that taxpayers pay much of the 45 cost, and 46 WHEREAS, Medicare and Medicaid spending would be reduced by 47 8.5 percent and 11.8 percent, respectively, in the absence of 48 obesity-related spending, and 49 WHEREAS, annual medical expenditures in Florida related to 50 obesity are estimated at $6,675,670,940 with approximately $2.6 51 billion of this amount paid by Medicare and Medicaid in the 52 state, and 53 WHEREAS, many Americans, particularly those in low-income 54 neighborhoods, rural areas, and communities of color, reside 55 where adequate access to full-service grocery stores is not 56 guaranteed, and 57 WHEREAS, low-income areas have more than twice as many 58 convenience stores and four times as many small grocery stores 59 as high-income areas, and 60 WHEREAS, proximity to convenience stores within a 61 neighborhood is associated with higher rates of obesity and 62 diabetes, and 63 WHEREAS, small food retailers tend to sell few fresh 64 produce, whole grains, or low-fat dairy products, and 65 WHEREAS, small food retailers commonly sell highly 66 processed foods that are high in fat and low in nutrients, and 67 WHEREAS, small food retailers tend to charge higher prices 68 for their food as compared to grocery stores and supermarkets, 69 and 70 WHEREAS, providing assistance to existing small food 71 retailers to stock fresh produce and other healthy foods and 72 promote good nutrition can provide residents with access to 73 healthier foods, and 74 WHEREAS, community programs that work with small food 75 retailers have shown promise in increasing healthy food sales, 76 improving store offerings, and promoting good nutrition, and 77 WHEREAS, the program established pursuant to this act is 78 intended to be a source of funding to provide assistance for 79 Florida’s small food retailers operating in certain urban and 80 rural areas so that the retailers sell more fresh fruits and 81 vegetables and other healthy foods at affordable prices to 82 neighboring residents in an effort to improve residents’ diets 83 and health, NOW, THEREFORE, 84 Be It Enacted by the Legislature of the State of Florida: 85 86 Section 1. Section 595.430, Florida Statutes, is created to 87 read: 88 595.430 Healthy Food Assistance Program.— 89 (1) There is established within the department the Healthy 90 Food Assistance Program. 91 (2) The purpose of the program is to provide a process for 92 small food retailers to receive assistance for projects that 93 increase the availability and sales of fresh and nutritious 94 food, including fresh vegetables, fruits, meats, and seafood in 95 low-income and moderate-income communities. 96 (3) The Office of Program Policy Analysis and Government 97 Accountability shall conduct an independent study to evaluate 98 the policy impact of placing healthy food in previously 99 underserved communities. 100 (4) This section and ss. 595.431-595.433 are repealed June 101 30, 2020, unless reviewed and saved from repeal through 102 reenactment by the Legislature. 103 Section 2. Section 595.431, Florida Statutes, is created to 104 read: 105 595.431 Definitions.—As used in ss. 595.430-595.433, the 106 term: 107 (1) “Low-income community” means a population census tract, 108 as reported in the most recent United States Census Bureau 109 American Community Survey, which meets one of the following 110 criteria: 111 (a) The poverty rate is at least 20 percent; 112 (b) In the case of a low-income community located outside a 113 metropolitan area, the median family income does not exceed 80 114 percent of the statewide median family income; or 115 (c) In the case of a low-income community located within a 116 metropolitan area, the median family income does not exceed 80 117 percent of the statewide median family income or 80 percent of 118 the metropolitan area’s median family income, whichever is 119 greater. 120 (2) “Moderate-income community” means a population census 121 tract, as reported in the most recent United States Census 122 Bureau American Community Survey, in which the median family 123 income is between 81 percent and 95 percent of the statewide 124 median family income or metropolitan area’s median family 125 income. 126 (3) “Program” means the Healthy Food Assistance Program 127 established within the department pursuant to s. 595.430. 128 (4) “Project administrator” means an entity selected by the 129 department to manage the program to assist small food retailers 130 in low-income and moderate-income communities in the state. 131 (5) “Small food retailer” means a small-scale retail store 132 of less than 3,000 square feet, such as a corner store, 133 convenience store, neighborhood store, small grocery store, or 134 bodega, which sells a limited selection of foods and other 135 products. 136 Section 3. Section 595.432, Florida Statutes, is created to 137 read: 138 595.432 Duties and responsibilities of the department.— 139 (1) The department shall administer the program and develop 140 guidelines for the operation of the program. The guidelines may 141 include procedures for granting appropriated funds to a 142 qualified project administrator to provide assistance to small 143 food retailers in urban and rural low-income and moderate-income 144 communities to increase the sales of fresh produce and other 145 healthy foods. 146 (2) In administering the program, the department shall: 147 (a) Establish program administrator eligibility guidelines, 148 including, but not limited to, the development of an application 149 process for project administrators and monitoring and 150 accountability mechanisms for projects receiving assistance 151 under the program. At a minimum, a project administrator must be 152 a not-for-profit entity and have demonstrated experience in 153 developing and implementing strategies for healthy food retail 154 in small stores. 155 (b) Establish criteria for a project administrator to use 156 in determining which projects to select, including, but not 157 limited to, consideration of the level of need in the area 158 proposed to be served by the applicant. 159 (c) Provide materials to a project administrator that 160 educate consumers on the benefits of healthy eating and 161 encourage, when possible, buying Fresh From Florida agricultural 162 products for distribution. 163 (d) Electronically submit an annual report to the President 164 of the Senate and the Speaker of the House of Representatives 165 regarding the program, including, but not limited to, projects 166 funded, project expenditures, the geographic distribution of 167 funds, program results, and the program’s impact on any health 168 related initiatives. 169 (3) The department’s performance and obligation to pay 170 under this section is contingent upon an annual appropriation by 171 the Legislature. 172 Section 4. Section 595.433, Florida Statutes, is created to 173 read: 174 595.433 Duties and responsibilities of project 175 administrators.— 176 (1) A project administrator shall be responsible for 177 implementing and operating the program. The project 178 administrator shall: 179 (a) Establish and administer an application process for 180 small food retailers to participate in the program. At a 181 minimum, in order to receive assistance under the program, a 182 small food retailer must: 183 1. Be located in a low-income community or moderate-income 184 community. 185 2. Accept, or agree to apply to and accept, Supplemental 186 Nutrition Assistance Program (SNAP) and Special Supplemental 187 Nutrition Program for Women, Infants, and Children (WIC) 188 benefits. 189 (b) Promote program availability throughout the state and 190 undertake efforts to raise funds from other private and public 191 sources. 192 (c) Use up to 10 percent of the funds distributed by the 193 department for administrative and operational costs associated 194 with operating the program, if such costs are not covered by 195 other budgets or in-kind resources. 196 (d) Collect and provide data and other information 197 quarterly as required by the department. 198 (e) Establish defined goals, standards, and accountability 199 mechanisms for eligible project applicants to ensure that the 200 expenditure of moneys is consistent with the purpose of the 201 program. 202 (f) Develop a plan for eligible project applicants by 203 describing specific goals for increasing the sales of produce 204 and other healthy foods and educating consumers on the benefits 205 of healthy eating, including, but not limited to, mechanisms to: 206 1. Engage communities to support participating small food 207 retailers. 208 2. Seek guidance from state, county, or municipal agencies, 209 private or public universities, cooperative extension services, 210 community-based organizations, and community members. 211 (g) Establish standards to assess whether project goals are 212 met. 213 (h) Ensure expenditures are appropriate by monitoring the 214 activities of small food retailers. 215 (i) Expend funds for each approved project only for the 216 following purposes: 217 1. Refrigeration, display shelving, or other equipment that 218 small food retailers need, up to a maximum of $7,500 per 219 retailer. 220 2. Materials and supplies for nutrition education and 221 healthy food promotion. 222 3. Initial purchases of healthy foods, including dairy 223 products, and fresh produce, up to a maximum of $2,000 per 224 retailer. 225 (2) For purposes of this section, a project administrator 226 is not subject to chapter 287. 227 Section 5. Section 500.81, Florida Statutes, is repealed. 228 Section 6. This act shall take effect July 1, 2017.