HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 1 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 2 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 3 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 4 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 5 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 6 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 7 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 8 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 9 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 10 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 11 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 12 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 13 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 14 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1311 2022 CODING: Words stricken are deletions; words underlined are additions. hb1311-00 Page 15 of 15 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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