Florida Senate - 2022 SB 1450 By Senator Jones 35-00466-22 20221450__ 1 A bill to be entitled 2 An act relating to the Healthy Food Financing 3 Initiative program; providing a directive to the 4 Division of Law Revision; transferring, renumbering, 5 and amending s. 500.81, F.S.; redefining the term 6 underserved community; revising requirements for the 7 administration of and participation in the Healthy 8 Food Financing Initiative program; providing program 9 eligibility requirements for nonprofit organizations 10 and revising eligibility requirements for community 11 development financial institutions; revising 12 requirements for program applicants and projects; 13 revising the purposes for which project funding may be 14 used; requiring the Office of Program Policy Analysis 15 and Government Accountability to review the program 16 and collected data and provide the Legislature with a 17 specified report; specifying that program funding is 18 subject to and provided from certain appropriations; 19 deleting a prohibition limiting the amount the 20 Department of Agriculture and Consumer Services may 21 distribute among program recipients; amending ss. 22 595.401, 595.402, 595.404, 595.408, and 595.501, F.S.; 23 conforming provisions to changes made by the act; 24 providing an effective date. 25 26 Be It Enacted by the Legislature of the State of Florida: 27 28 Section 1.The Division of Law Revision is directed to 29 rename chapter 595, Florida Statutes, entitled School Food and 30 Nutrition Services, as Food and Nutrition. 31 Section 2.Section 500.81, Florida Statutes, is 32 transferred, renumbered as section 595.801, and amended to read: 33 595.801 500.81Healthy Food Financing Initiative. 34 (1)DEFINITIONS.As used in this section, the term: 35 (a)Community facility means a property owned by a 36 nonprofit or for-profit entity in which health and human 37 services are provided and space is offered in a manner that 38 provides increased access to, or delivery or distribution of, 39 food or other agricultural products to encourage public 40 consumption and household purchases of fresh produce or other 41 healthy food to improve the public health and well-being of low 42 income children, families, and older adults. 43 (b)Department means the Department of Agriculture and 44 Consumer Services. 45 (c)Independent grocery store or supermarket means an 46 independently owned grocery store or supermarket whose parent 47 company does not own more than 40 grocery stores throughout the 48 country based upon ownership conditions as identified in the 49 latest Nielsen TDLinx Supermarket/Supercenter database. 50 (d)Low-income community means a population census tract, 51 as reported in the most recent United States Census Bureau 52 American Community Survey, which meets one of the following 53 criteria: 54 1.The poverty rate is at least 20 percent; 55 2.In the case of a low-income community located outside of 56 a metropolitan area, the median family income does not exceed 80 57 percent of the statewide median family income; or 58 3.In the case of a low-income community located inside of 59 a metropolitan area, the median family income does not exceed 80 60 percent of the statewide median family income or 80 percent of 61 the metropolitan median family income, whichever is greater. 62 (e)Program means the Healthy Food Financing Initiative 63 established by the department. 64 (f)Underserved community means a low-income community 65 distressed urban, suburban, or rural geographic area where a 66 substantial number of residents have low access to a full 67 service supermarket or grocery store. An area with limited 68 supermarket access must be: 69 1.A census tract, as determined to be an area with low 70 access by the United States Department of Agriculture, as 71 identified in the Food Access Research Atlas; 72 2.Identified as a limited supermarket access area as 73 recognized by the Community Development Financial Institutions 74 Fund of the United States Department of the Treasury; or 75 3.Identified as an area with low access to a supermarket 76 or grocery store through a methodology that has been adopted for 77 use by another governmental initiative, or a well-established or 78 well-regarded philanthropic healthy food initiative. 79 (2)HEALTHY FOOD FINANCING INITIATIVE PROGRAM.The 80 department shall establish a Healthy Food Financing Initiative 81 program that provides grants and loans is composed of and 82 coordinates the use of grants from any source; federal, state, 83 and private loans from a governmental entity or institutions 84 regulated by a governmental entity; federal tax credits; and 85 other types of financial assistance for the construction, 86 rehabilitation, or expansion of independent grocery stores, 87 supermarkets, community facilities, or other retail outlets 88 structures to increase access to affordable fresh produce and 89 other nutritious food in underserved communities. 90 (3)THIRD-PARTY ADMINISTRATORS; QUALIFICATIONS. 91 (a)The department may contract with one or more qualified 92 nonprofit organizations or Florida-based federally certified 93 community development financial institutions to administer the 94 program through a public-private partnership. 95 (b)A qualified nonprofit organization must be able to 96 demonstrate all of the following: 97 1.Prior experience in healthy food financing. 98 2.An exemption from taxation under s. 501(c)(3) of the 99 Internal Revenue Code. 100 3.The ability to successfully manage and operate lending 101 and grant programs. 102 4.The ability to assume full financial risk for loans made 103 under the program. 104 (c)Eligible community development financial institutions 105 must be able to demonstrate all of the following: 106 1.Prior experience in healthy food financing. 107 2.Certification by Support from the Community Development 108 Financial Institutions Fund of the United States Department of 109 the Treasury. 110 3.The ability to successfully manage and operate lending 111 and tax credit programs. 112 4.The ability to assume full financial risk for loans made 113 under the program this initiative. 114 (d)Any third-party administrator that contracts with the 115 department shall provide quarterly updates to the department. 116 (4)(b)DUTIES OF THE DEPARTMENT OR THIRD-PARTY 117 ADMINISTRATOR.The department or a third-party administrator 118 shall do all of the following: 119 (a)1.Establish program guidelines, raise matching funds, 120 promote the program statewide, evaluate applicants, make award 121 decisions, underwrite and disburse grants and loans, and monitor 122 compliance and impact. The department may contract with a third 123 party administrator to carry out such duties. If the department 124 contracts with a third-party administrator, funds shall be 125 granted to the third-party administrator to create a revolving 126 loan fund for the purpose of financing projects that meet the 127 criteria of the program. The third-party administrator shall 128 report to the department annually. 129 (b)2.Create eligibility guidelines and provide financing 130 through an application process. Eligible projects must: 131 a.Be located in an underserved community; 132 b.Primarily serve low-income communities; and 133 c.Provide for the renovation or expansion of, including 134 infrastructure upgrades to, existing independent grocery stores 135 or supermarkets; or the renovation or expansion of, including 136 infrastructure upgrades to, community facilities to improve the 137 availability and quality of fresh produce and other healthy 138 foods. 139 (c)3.Report annually to the President of the Senate and 140 the Speaker of the House of Representatives on the projects 141 funded, the geographic distribution of the projects, the costs 142 of the program, and the outcomes, including the number and type 143 of jobs created. 144 (4)(a)The Office of Program Policy Analysis and Government 145 Accountability shall review the program and data collected from 146 the department after a term of 7 years and report to the 147 President of the Senate and the Speaker of the House of 148 Representatives. The report shall include, but is not limited 149 to, health impacts based on data collected by the state on 150 diabetes, heart disease and other obesity-related diseases, and 151 other factors as determined by the department. 152 (b)If the report determines the program to be unsuccessful 153 after 7 years, the department shall create guidelines for unused 154 funds to be returned to the initial investor. 155 (5)PROGRAM PARTICIPANTS.Entities that may apply for 156 funding under the program include A for-profit entities entity, 157 including a convenience stores store or a fueling stations; and 158 station, or a not-for-profit entities entity, including, but not 159 limited to, a sole proprietorships, partnerships proprietorship, 160 partnership, limited liability companies, corporations, 161 cooperatives company, corporation, cooperative, nonprofit 162 organizations organization, nonprofit community development 163 entities entity, or private universities university, may apply 164 for financing. 165 (a)A program An applicant for financing must do all of the 166 following: 167 1.(a)Demonstrate the capacity to successfully implement 168 the project and the likelihood that the project will be 169 economically self-sustaining.; 170 2.(b)Demonstrate the ability to repay the loan.; and 171 (c)Agree, as an independent grocery store or supermarket, 172 for at least 5 years, to: 173 3.1.Accept Supplemental Nutrition Assistance Program 174 benefits and; 175 2.Apply to accept Special Supplemental Nutrition Program 176 for Women, Infants, and Children benefits. and accept such 177 benefits, if approved; 178 4.3.For independent grocery stores and supermarkets, 179 allocate at least 30 percent of floor food retail space for the 180 sale of perishable foods, which may include fresh or frozen 181 dairy products, fresh produce, and fresh meats, poultry, and 182 fish.; 183 5.4.Comply with all data collection and reporting 184 requirements established by the department.; and 185 6.5.Promote the hiring of local residents. 186 (b)The department shall give preference to Florida-based 187 grocers, local business owners with experience in grocery 188 stores, and grocers and business owners with a business plan 189 that includes written documentation of opportunities to purchase 190 from farmers and growers in this state before seeking out-of 191 state purchases. 192 (6)PROJECT ELIGIBILITY. 193 (a)To be eligible for funding under the program, a project 194 must: 195 1.Be located in an underserved community; and 196 2.Provide for the construction of independent grocery 197 stores or supermarkets; renovation, expansion, and 198 infrastructure upgrades to stores and community facilities that 199 improve the availability and quality of fresh produce and other 200 healthy foods; or other projects that create or improve access 201 to affordable fresh produce which meet the intent of this 202 section, as determined by the department or a third-party 203 administrator. 204 (b)Projects including, but not limited to, corner stores, 205 bodegas, or other types of nontraditional grocery stores that do 206 not meet the 30 percent space minimum in subparagraph (5)(a)4. 207 may 3. can still qualify for funding if such funding will be 208 used for refrigeration, displays, or other one-time capital 209 expenditures to promote the sale of fresh produce and other 210 healthy foods. 211 (6)In determining which qualified projects to finance, the 212 department or third-party administrator shall: 213 (a)Give preference to local Florida-based grocers or local 214 business owners with experience in grocery stores and to grocers 215 and business owners with a business plan model that includes 216 written documentation of opportunities to purchase from Florida 217 farmers and growers before seeking out-of-state purchases; 218 (b)Consider the level of need in the area to be served; 219 (c)Consider the degree to which the project will have a 220 positive economic impact on the underserved community, including 221 the creation or retention of jobs for local residents; 222 (d)Consider the location of existing independent grocery 223 stores, supermarkets, or other markets relevant to the 224 applicants project and provide the established entity the right 225 of first refusal for such project; and 226 (e)Consider other criteria as determined by the 227 department. 228 (c)(7)A minimum of three eligible projects shall be funded 229 annually. Financing under this program for eligible projects may 230 be used for any of the following purposes: 231 1.(a)Site acquisition and preparation. 232 2.(b)Construction and build-out costs. 233 3.(c)Equipment and furnishings. 234 4.(d)Workforce training or security. 235 5.(e)Predevelopment costs, such as market studies and 236 appraisals. 237 6.(f)Energy efficiency measures. 238 7.(g)Working capital for first-time inventory and startup 239 costs, including seeds and starter plants for residential 240 produce cultivation. 241 (h)Acquisition of seeds and starter plants for the 242 residential cultivation of fruits, vegetables, herbs, and other 243 culinary products. However, only 7 percent of the total funds 244 expended in any one project under this section may be used for 245 such acquisition. 246 8.(i)Other purposes as determined necessary and reasonable 247 by the department or a third-party administrator. 248 (7)PROGRAM REVIEW. 249 (a)The Office of Program Policy Analysis and Government 250 Accountability shall review the program and data collected from 251 the department after a term of 7 years and provide a report to 252 the President of the Senate and the Speaker of the House of 253 Representatives. The report shall include economic impact and 254 health outcomes data and other factors as determined by the 255 department. 256 (b)If the report determines the program to be unsuccessful 257 after 7 years, the department shall return any initial funds 258 that have not been loaned, granted, or leveraged in a revolving 259 loan fund to the General Revenue Fund. 260 (8)FUNDING.The departments performance and obligation to 261 pay under this section is contingent upon an annual 262 appropriation by the Legislature as provided in s. 287.0582. If 263 the department contracts with a third-party administrator, funds 264 must be advanced from the departments annual appropriation to 265 the third-party administrator in order to implement this 266 section. 267 (9)(8)RULES.The department shall adopt rules to 268 administer this section. 269 (9)The department may not distribute more than $500,000 270 among more than three recipients. 271 Section 3.Section 595.401, Florida Statutes, is amended to 272 read: 273 595.401Short title.Sections 595.401-595.601 This chapter 274 may be cited as the Florida School Food and Nutrition Act. 275 Section 4.Section 595.402, Florida Statutes, is amended to 276 read: 277 595.402Definitions.As used in this act chapter, the term: 278 (1)Commissioner means the Commissioner of Agriculture. 279 (2)Department means the Department of Agriculture and 280 Consumer Services. 281 (3)Program means any one or more of the school food and 282 nutrition service programs that the department has 283 responsibility over including, but not limited to, the National 284 School Lunch Program, the Special Milk Program, the School 285 Breakfast Program, the Summer Food Service Program, the Fresh 286 Fruit and Vegetable Program, and any other program that relates 287 to school nutrition. 288 (4)School breakfast program means a program authorized 289 by s. 4 of the Child Nutrition Act of 1966, as amended, and 290 administered by the department. 291 (5)School district means any of the 67 county school 292 districts, including the respective district school board. 293 (6)Sponsor means any entity that is conducting a program 294 under a current agreement with the department. 295 (7)Summer nutrition program means one or more of the 296 programs authorized under 42 U.S.C. s. 1761. 297 (8)Universal school breakfast program means a program 298 that makes breakfast available at no cost to all students 299 regardless of their household income. 300 Section 5.Subsections (3), (9), (10), (11), and (13) of 301 section 595.404, Florida Statutes, are amended to read: 302 595.404School food and other nutrition programs; powers 303 and duties of the department.The department has the following 304 powers and duties: 305 (3)To fully cooperate with the United States Government 306 and its agencies and instrumentalities so that the department 307 may receive the benefit of all federal financial allotments and 308 assistance possible to carry out the purposes of this act 309 chapter. 310 (9)To employ such persons as are necessary to perform its 311 duties under this act chapter. 312 (10)To adopt rules covering the administration, operation, 313 and enforcement of the program and the farmers market nutrition 314 program, as well as to implement the provisions of this act 315 chapter. 316 (11)To adopt and implement an appeal process by rule, as 317 required by federal regulations, for applicants and participants 318 under the programs implemented pursuant to this act chapter, 319 notwithstanding ss. 120.569 and 120.57-120.595. 320 (13)To advance funds from the programs annual 321 appropriation to a summer nutrition program sponsor, when 322 requested, in order to implement the provisions of this act 323 chapter and in accordance with federal regulations. 324 Section 6.Paragraph (b) of subsection (1) and subsections 325 (2) and (4) of section 595.408, Florida Statutes, are amended to 326 read: 327 595.408Food distribution services; department 328 responsibilities and functions. 329 (1) 330 (b)The department shall determine the benefits each 331 applicant or recipient of assistance is entitled to receive 332 under this act chapter, provided that each applicant or 333 recipient is a resident of this state and a citizen of the 334 United States or is an alien lawfully admitted for permanent 335 residence or otherwise permanently residing in the United States 336 under color of law. 337 (2)The department shall cooperate fully with the United 338 States Government and its agencies and instrumentalities so that 339 the department may receive the benefit of all federal financial 340 allotments and assistance possible to carry out the purposes of 341 this act chapter. 342 (4)This act chapter does not limit, abrogate, or abridge 343 the powers and duties of any other state agency. 344 Section 7.Subsection (2) of section 595.501, Florida 345 Statutes, is amended to read: 346 595.501Corrective action plans; penalties. 347 (2)Any person or sponsor that violates any provision of 348 this act chapter or any rule adopted thereunder or otherwise 349 does not comply with the program is subject to a suspension or 350 revocation of their agreement, loss of reimbursement, or a 351 financial penalty in accordance with federal or state law, or 352 both. This section does not restrict the applicability of any 353 other law. 354 Section 8.This act shall take effect July 1, 2022.