Florida 2022 Regular Session

Florida House Bill H1311 Latest Draft

Bill / Introduced Version Filed 01/07/2022

                               
 
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A bill to be entitled 1 
An act relating to the Healthy Food Financing 2 
Initiative program; providing a directive to the 3 
Division of Law Revision; transferring, renumbering, 4 
and amending s. 500.81, F.S.; redefining the term 5 
"underserved community"; revising requirements for the 6 
administration of and participation in the Healthy 7 
Food Financing Initiative program; providing program 8 
eligibility requirements for nonprofit organizations 9 
and revising eligibility requirements for community 10 
development financial institutions; revising 11 
requirements for program applicants and projects; 12 
revising the purposes for which project funding may be 13 
used; specifying that program funding is subject to 14 
and provided from certain appropriations; deleting a 15 
prohibition limiting the amount the Department of 16 
Agriculture and Consumer Services may distribute among 17 
program recipients; amending ss. 595.401, 595.402, 18 
595.404, 595.408, and 595.501, F.S.; conforming 19 
provisions to changes made by the act; providing an 20 
effective date. 21 
 22 
Be It Enacted by the Legislature of the State of Florida: 23 
 24 
 Section 1.  The Division of Law Revision is directed to 25     
 
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rename chapter 595, Florida Statutes, entitled "School Food and 26 
Nutrition Services," as "Food and Nutrition." 27 
 Section 2.  Section 500.81, Florida Statutes, is 28 
transferred, renumbered as section 595.801, and amended to read: 29 
 595.801 500.81 Healthy Food Financing Initiative. — 30 
 (1)  DEFINITIONS.—As used in this section, the t erm: 31 
 (a)  "Community facility" means a property owned by a 32 
nonprofit or for-profit entity in which health and human 33 
services are provided and space is offered in a manner that 34 
provides increased access to, or delivery or distribution of, 35 
food or other agricultural products to encourage public 36 
consumption and household purchases of fresh produce or other 37 
healthy food to improve the public health and well -being of low-38 
income children, families, and older adults. 39 
 (b)  "Department" means the Department of Agr iculture and 40 
Consumer Services. 41 
 (c)  "Independent grocery store or supermarket" means an 42 
independently owned grocery store or supermarket whose parent 43 
company does not own more than 40 grocery stores throughout the 44 
country based upon ownership conditions as identified in the 45 
latest Nielsen TDLinx Supermarket/Supercenter database. 46 
 (d)  "Low-income community" means a population census 47 
tract, as reported in the most recent United States Census 48 
Bureau American Community Survey, which meets one of the 49 
following criteria: 50     
 
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 1.  The poverty rate is at least 20 percent; 51 
 2.  In the case of a low -income community located outside 52 
of a metropolitan area, the median family income does not exceed 53 
80 percent of the statewide median family income; or 54 
 3.  In the case of a low-income community located inside of 55 
a metropolitan area, the median family income does not exceed 80 56 
percent of the statewide median family income or 80 percent of 57 
the metropolitan median family income, whichever is greater. 58 
 (e)  "Program" means the Healthy Food Financing Initiative 59 
established by the department. 60 
 (f)  "Underserved community" means a low-income community 61 
distressed urban, suburban, or rural geographic area where a 62 
substantial number of residents have low access to a full -63 
service supermarket or grocery store. An area with limited 64 
supermarket access must be: 65 
 1.  A census tract, as determined to be an area with low 66 
access by the United States Department of Agriculture, as 67 
identified in the Food Access Research Atlas; 68 
 2.  Identified as a limited supermarket access area as 69 
recognized by the Community Development Financial Institutions 70 
Fund of the United States Department of the Treasury; or 71 
 3.  Identified as an area with low access to a supermarket 72 
or grocery store through a methodology t hat has been adopted for 73 
use by another governmental initiative, or a well-established or 74 
well-regarded philanthropic healthy food initiative. 75     
 
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 (2)  HEALTHY FOOD FINANCING INITIATIVE PROGRAM. —The 76 
department shall establish a Healthy Food Financing Initiati ve 77 
program that provides grants and loans is composed of and 78 
coordinates the use of grants from any source; federal, state, 79 
and private loans from a governmental entity or institutions 80 
regulated by a governmental entity; federal tax credits; and 81 
other types of financial assistance for the construction, 82 
rehabilitation, or expansion of independent grocery stores, 83 
supermarkets, community facilities, or other retail outlets 84 
structures to increase access to affordable fresh produce and 85 
other nutritious food in u nderserved communities. 86 
 (3)  THIRD-PARTY ADMINISTRATORS; QUALIFICATIONS. — 87 
 (a)  The department may contract with one or more qualified 88 
nonprofit organizations or Florida -based federally certified 89 
community development financial institutions to administer the 90 
program through a public -private partnership. 91 
 (b)  A qualified nonprofit organization must be able to 92 
demonstrate all of the following: 93 
 1.  Prior experience in healthy food financing. 94 
 2.  An exemption from taxation under s. 501(c)(3) of the 95 
Internal Revenue Code. 96 
 3.  The ability to successfully manage and operate lending 97 
and grant programs. 98 
 4.  The ability to assume full financial risk for loans 99 
made under the program. 100     
 
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 (c) Eligible community development financial institutions 101 
must be able to demo nstrate all of the following : 102 
 1.  Prior experience in healthy food financing. 103 
 2.  Certification by Support from the Community Development 104 
Financial Institutions Fund of the United States Department of 105 
the Treasury. 106 
 3.  The ability to successfully manage and operate lending 107 
and tax credit programs. 108 
 4.  The ability to assume full financial risk for loans 109 
made under the program this initiative. 110 
 (d)  Any third-party administrator that contracts with the 111 
department shall provide quarterly updates to the dep artment. 112 
 (4)(b) DUTIES OF THE DEPARTMENT OR THIRD -PARTY 113 
ADMINISTRATOR.—The department or a third-party administrator 114 
shall do all of the following : 115 
 (a)1. Establish program guidelines, raise matching funds, 116 
promote the program statewide, evaluate applic ants, make award 117 
decisions, underwrite and disburse grants and loans, and monitor 118 
compliance and impact. The department may contract with a third -119 
party administrator to carry out such duties. If the department 120 
contracts with a third -party administrator, fu nds shall be 121 
granted to the third -party administrator to create a revolving 122 
loan fund for the purpose of financing projects that meet the 123 
criteria of the program. The third -party administrator shall 124 
report to the department annually. 125     
 
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 (b)2. Create eligibility guidelines and provide financing 126 
through an application process. Eligible projects must: 127 
 a.  Be located in an underserved community; 128 
 b.  Primarily serve low -income communities; and 129 
 c.  Provide for the renovation or expansion of, including 130 
infrastructure upgrades to, existing independent grocery stores 131 
or supermarkets; or the renovation or expansion of, including 132 
infrastructure upgrades to, community facilities to improve the 133 
availability and quality of fresh produce and other healthy 134 
foods. 135 
 (c)3. Report annually to the President of the Senate and 136 
the Speaker of the House of Representatives on the projects 137 
funded, the geographic distribution of the projects, the costs 138 
of the program, and the outcomes, including the number and type 139 
of jobs created. 140 
 (4)(a)  The Office of Program Policy Analysis and 141 
Government Accountability shall review the program and data 142 
collected from the department after a term of 7 years and report 143 
to the President of the Senate and the Speaker of the House of 144 
Representatives. The report shall include, but is not limited 145 
to, health impacts based on data collected by the state on 146 
diabetes, heart disease and other obesity -related diseases, and 147 
other factors as determined by the department. 148 
 (b)  If the report determines the program to be 149 
unsuccessful after 7 years, the department shall create 150     
 
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guidelines for unused funds to be returned to the initial 151 
investor. 152 
 (5)  PROGRAM PARTICIPANTS. —Entities that may apply for 153 
funding under the program include A for-profit entities entity, 154 
including a convenience stores store or a fueling stations; and 155 
station, or a not-for-profit entities entity, including, but not 156 
limited to, a sole proprietorships, partnerships proprietorship, 157 
partnership, limited liability companies, corporations, 158 
cooperatives company, corporation, cooperative , nonprofit 159 
organizations organization, nonprofit community development 160 
entities entity, or private universities university, may apply 161 
for financing. 162 
 (a)  A program An applicant for financing must do all of 163 
the following: 164 
 1.(a) Demonstrate the capacity to successfully implement 165 
the project and the likelihood that the project will be 166 
economically self-sustaining.; 167 
 2.(b) Demonstrate the ability to repay the loan .; and 168 
 (c)  Agree, as an independent grocery store or supermarket, 169 
for at least 5 years, to: 170 
 3.1. Accept Supplemental Nutrition Assistance Program 171 
benefits and; 172 
 2.  Apply to accept Special Supplemental Nutrition Program 173 
for Women, Infants, and Children benefits . and accept such 174 
benefits, if approved; 175     
 
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 4.3. For independent grocery stores and supermarkets, 176 
allocate at least 30 percent of floor food retail space for the 177 
sale of perishable foods, which may include fresh or frozen 178 
dairy products, fresh produce, and fresh meats, poultry, and 179 
fish.; 180 
 5.4. Comply with all data collection and reporting 181 
requirements established by the department .; and 182 
 6.5. Promote the hiring of local residents. 183 
 (b)  The department shall give preference to Florida -based 184 
grocers, local busine ss owners with experience in grocery 185 
stores, and grocers and business owners with a business plan 186 
that includes written documentation of opportunities to purchase 187 
from farmers and growers in this state before seeking out -of-188 
state purchases. 189 
 (6)  PROJECT ELIGIBILITY.— 190 
 (a)  To be eligible for funding under the program, a 191 
project must: 192 
 1.  Be located in an underserved community; and 193 
 2.  Provide for the construction of independent grocery 194 
stores or supermarkets; renovation, expansion, and 195 
infrastructure upgrades to stores and community facilities that 196 
improve the availability and quality of fresh produce and other 197 
healthy foods; or other projects that create or improve access 198 
to affordable fresh produce which meet the intent of this 199 
section, as determined by the department or a third -party 200     
 
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administrator. 201 
 (b) Projects including, but not limited to, corner stores, 202 
bodegas, or other types of nontraditional grocery stores that do 203 
not meet the 30 percent space minimum in subparagraph (5)(a)4. 204 
may 3. can still qualify for funding if such funding will be 205 
used for refrigeration, displays, or other one -time capital 206 
expenditures to promote the sale of fresh produce and other 207 
healthy foods. 208 
 (6)  In determining which qualified projects to finance, 209 
the department or thi rd-party administrator shall: 210 
 (a)  Give preference to local Florida -based grocers or 211 
local business owners with experience in grocery stores and to 212 
grocers and business owners with a business plan model that 213 
includes written documentation of opportunities to purchase from 214 
Florida farmers and growers before seeking out -of-state 215 
purchases; 216 
 (b)  Consider the level of need in the area to be served; 217 
 (c)  Consider the degree to which the project will have a 218 
positive economic impact on the underserved community , including 219 
the creation or retention of jobs for local residents; 220 
 (d)  Consider the location of existing independent grocery 221 
stores, supermarkets, or other markets relevant to the 222 
applicant's project and provide the established entity the right 223 
of first refusal for such project; and 224 
 (e)  Consider other criteria as determined by the 225     
 
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department. 226 
 (c)(7) A minimum of three eligible projects shall be 227 
funded annually. Financing under this program for eligible 228 
projects may be used for any of the following purposes: 229 
 1.(a) Site acquisition and preparation. 230 
 2.(b) Construction and build -out costs. 231 
 3.(c) Equipment and furnishings. 232 
 4.(d) Workforce training or security. 233 
 5.(e) Predevelopment costs, such as market studies and 234 
appraisals. 235 
 6.(f) Energy efficiency measures. 236 
 7.(g) Working capital for first -time inventory and startup 237 
costs, including seeds and starter plants for residential 238 
produce cultivation. 239 
 (h)  Acquisition of seeds and starter plants for the 240 
residential cultivation of fr uits, vegetables, herbs, and other 241 
culinary products. However, only 7 percent of the total funds 242 
expended in any one project under this section may be used for 243 
such acquisition. 244 
 8.(i) Other purposes as determined necessary and 245 
reasonable by the department or a third-party administrator. 246 
 (7)  PROGRAM REVIEW. — 247 
 (a)  The Office of Program Policy Analysis and Government 248 
Accountability shall review the program and data collected from 249 
the department after a term of 7 years and provide a report to 250     
 
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the President of the Senate and the Speaker of the House of 251 
Representatives. The report shall include economic impact and 252 
health outcomes data and other factors as determined by the 253 
department. 254 
 (b)  If the report determines the program to be 255 
unsuccessful after 7 years , the department shall return any 256 
initial funds that have not been loaned, granted, or leveraged 257 
in a revolving loan fund to the General Revenue Fund. 258 
 (8)  FUNDING.—The department's performance and obligation 259 
to pay under this section is contingent upon a n annual 260 
appropriation by the Legislature as provided in s. 287.0582. If 261 
the department contracts with a third -party administrator, funds 262 
must be advanced from the department's annual appropriation to 263 
the third-party administrator in order to implement thi s 264 
section. 265 
 (9)(8) RULES.—The department shall adopt rules to 266 
administer this section. 267 
 (9)  The department may not distribute more than $500,000 268 
among more than three recipients. 269 
 Section 3.  Section 595.401, Florida Statutes, is amended 270 
to read: 271 
 595.401  Short title.—Sections 595.401-595.601 This chapter 272 
may be cited as the "Florida School Food and Nutrition Act." 273 
 Section 4.  Section 595.402, Florida Statutes, is amended 274 
to read: 275     
 
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 595.402  Definitions. —As used in this act chapter, the 276 
term: 277 
 (1)  "Commissioner" means the Commissioner of Agriculture. 278 
 (2)  "Department" means the Department of Agriculture and 279 
Consumer Services. 280 
 (3)  "Program" means any one or more of the school food and 281 
nutrition service programs that the department has 282 
responsibility over including, but not limited to, the National 283 
School Lunch Program, the Special Milk Program, the School 284 
Breakfast Program, the Summer Food Service Program, the Fresh 285 
Fruit and Vegetable Program, and any other program that relates 286 
to school nutrition. 287 
 (4)  "School breakfast program" means a program authorized 288 
by s. 4 of the Child Nutrition Act of 1966, as amended, and 289 
administered by the department. 290 
 (5)  "School district" means any of the 67 county school 291 
districts, including the respective district school board. 292 
 (6)  "Sponsor" means any entity that is conducting a 293 
program under a current agreement with the department. 294 
 (7)  "Summer nutrition program" means one or more of the 295 
programs authorized under 42 U.S.C. s. 1761. 296 
 (8)  "Universal school break fast program" means a program 297 
that makes breakfast available at no cost to all students 298 
regardless of their household income. 299 
 Section 5.  Subsections (3), (9), (10), (11), and (13) of 300     
 
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section 595.404, Florida Statutes, are amended to read: 301 
 595.404  School food and other nutrition programs; powers 302 
and duties of the department. —The department has the following 303 
powers and duties: 304 
 (3)  To fully cooperate with the United States Government 305 
and its agencies and instrumentalities so that the department 306 
may receive the benefit of all federal financial allotments and 307 
assistance possible to carry out the purposes of this act 308 
chapter. 309 
 (9)  To employ such persons as are necessary to perform its 310 
duties under this act chapter. 311 
 (10)  To adopt rules covering the admin istration, 312 
operation, and enforcement of the program and the farmers' 313 
market nutrition program, as well as to implement the provisions 314 
of this act chapter. 315 
 (11)  To adopt and implement an appeal process by rule, as 316 
required by federal regulations, for app licants and participants 317 
under the programs implemented pursuant to this act chapter, 318 
notwithstanding ss. 120.569 and 120.57 -120.595. 319 
 (13)  To advance funds from the program's annual 320 
appropriation to a summer nutrition program sponsor, when 321 
requested, in order to implement the provisions of this act 322 
chapter and in accordance with federal regulations. 323 
 Section 6.  Paragraph (b) of subse ction (1) and subsections 324 
(2) and (4) of section 595.408, Florida Statutes, are amended to 325     
 
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read: 326 
 595.408  Food distribution services; department 327 
responsibilities and functions. — 328 
 (1) 329 
 (b)  The department shall determine the benefits each 330 
applicant or recipient of assistance is entitled to receive 331 
under this act chapter, provided that each applicant or 332 
recipient is a resident of this state and a citizen of the 333 
United States or is an alien lawfully admitted for permanent 334 
residence or otherwise permanently re siding in the United States 335 
under color of law. 336 
 (2)  The department shall cooperate fully with the United 337 
States Government and its agencies and instrumentalities so that 338 
the department may receive the benefit of all federal financial 339 
allotments and assis tance possible to carry out the purposes of 340 
this act chapter. 341 
 (4)  This act chapter does not limit, abrogate, or abridge 342 
the powers and duties of any other state agency. 343 
 Section 7.  Subsection (2) of section 595.501, Florida 344 
Statutes, is amended to read: 345 
 595.501  Corrective action plans; penalties. — 346 
 (2)  Any person or sponsor that violates any provision of 347 
this act chapter or any rule adopted thereunder or otherwise 348 
does not comply with the program is subject to a suspension or 349 
revocation of their agreement, loss of reimbursement, or a 350     
 
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financial penalty in accordance with federal or state law, or 351 
both. This section does not restrict the applicability of any 352 
other law. 353 
 Section 8.  This act shall take effect July 1, 2022. 354