HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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; requiring the Office of Program Policy Analysis 14 and Government Accountability to review the program 15 and collected data after a specified timeframe and 16 provide the Legislature with a specified report; 17 specifying that program funding is subject to and 18 provided from certain appropriations; deleting a 19 prohibition relating to funding distribution; amending 20 ss. 595.401, 595.402, 595.404, 595.408, and 595.501, 21 F.S.; conforming provisions to changes made by the 22 act; providing an effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 26 Section 1. The Division of Law Revision is directed to 27 rename chapter 595, Florida Statutes, entitled "School Food and 28 Nutrition Services," as "Food and Nutrition." 29 Section 2. Section 500.81, Florida Statutes, is 30 transferred, renumbered as section 595.801, an d amended to read: 31 595.801 500.81 Healthy Food Financing Initiative. — 32 (1) DEFINITIONS.—As used in this section, the term: 33 (a) "Community facility" means a property owned by a 34 nonprofit or for-profit entity in which health and human 35 services are provided and space is offered in a manner that 36 provides increased access to, or delivery or distribution of, 37 food or other agricultural products to encourage public 38 consumption and household purchases of fresh produce or other 39 healthy food to improve the public health and well-being of low-40 income children, families, and older adults. 41 (b) "Department" means the Department of Agriculture and 42 Consumer Services. 43 (c) "Independent grocery store or supermarket" means an 44 independently owned grocery store or supermar ket whose parent 45 company does not own more than 40 grocery stores throughout the 46 country based upon ownership conditions as identified in the 47 latest Nielsen TDLinx Supermarket/Supercenter database. 48 (d) "Low-income community" means a population census 49 tract, as reported in the most recent United States Census 50 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 Bureau American Community Survey, which meets one of the 51 following criteria: 52 1. The poverty rate is at least 20 percent; 53 2. In the case of a low -income community located outside 54 of a metropolitan area, the median family income does not exceed 55 80 percent of the statewide median family income; or 56 3. In the case of a low -income community located inside of 57 a metropolitan area, the median family income does not exceed 80 58 percent of the statewide media n family income or 80 percent of 59 the metropolitan median family income, whichever is greater. 60 (e) "Program" means the Healthy Food Financing Initiative 61 established by the department. 62 (f) "Underserved community" means a low-income community 63 distressed urban, suburban, or rural geographic area where a 64 substantial number of residents have low access to a full -65 service supermarket or grocery store. An area with limited 66 supermarket access must be: 67 1. A census tract, as determined to be an area with low 68 access by the United States Department of Agriculture, as 69 identified in the Food Access Research Atlas; 70 2. Identified as a limited supermarket access area as 71 recognized by the Community Development Financial Institutions 72 Fund of the United States Departm ent of the Treasury; or 73 3. Identified as an area with low access to a supermarket 74 or grocery store through a methodology that has been adopted for 75 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 use by another governmental initiative, or a well-established or 76 well-regarded philanthropic healthy food i nitiative. 77 (2) HEALTHY FOOD FINANCING INITIATIVE PROGRAM. —The 78 department shall establish a Healthy Food Financing Initiative 79 program that provides grants and loans is composed of and 80 coordinates the use of grants from any source; federal, state, 81 and private loans from a governmental entity or institutions 82 regulated by a governmental entity; federal tax credits; and 83 other types of financial assistance for the construction, 84 rehabilitation, or expansion of independent grocery stores, 85 supermarkets, community facilities, or other retail outlets 86 structures to increase access to affordable fresh produce and 87 other nutritious food in underserved communities. 88 (3) THIRD-PARTY ADMINISTRATORS; QUALIFICATIONS. — 89 (a) The department may contract with one or more qualif ied 90 nonprofit organizations or Florida -based federally certified 91 community development financial institutions to administer the 92 program through a public -private partnership. 93 (b) A qualified nonprofit organization must be able to 94 demonstrate all of the fo llowing: 95 1. Prior experience in healthy food financing. 96 2. An exemption from taxation under s. 501(c)(3) of the 97 Internal Revenue Code. 98 3. The ability to successfully manage and operate lending 99 and grant programs. 100 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 4. The ability to assume full finan cial risk for loans 101 made under the program. 102 (c) Eligible community development financial institutions 103 must be able to demonstrate all of the following : 104 1. Prior experience in healthy food financing. 105 2. Certification by Support from the Community Development 106 Financial Institutions Fund of the United States Department of 107 the Treasury. 108 3. The ability to successfully manage and operate lending 109 and tax credit programs. 110 4. The ability to assume full financial risk for loans 111 made under the program this initiative. 112 (d) Any third-party administrator that contracts with the 113 department shall provide quarterly updates to the department. 114 (4)(b) DUTIES OF THE DEPARTMENT OR THIRD -PARTY 115 ADMINISTRATOR.—The department or a third-party administrator 116 shall do all of the following: 117 (a)1. Establish program guidelines, raise matching funds, 118 promote the program statewide, evaluate applicants, make award 119 decisions, underwrite and disburse grants and loans, and monitor 120 compliance and impact. The department may contract with a third-121 party administrator to carry out such duties. If the department 122 contracts with a third -party administrator, funds shall be 123 granted to the third -party administrator to create a revolving 124 loan fund for the purpose of financing projects that mee t the 125 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 criteria of the program. The third -party administrator shall 126 report to the department annually. 127 (b)2. Create eligibility guidelines and provide financing 128 through an application process. Eligible projects must: 129 a. Be located in an underserved community; 130 b. Primarily serve low -income communities; and 131 c. Provide for the renovation or expansion of, including 132 infrastructure upgrades to, existing independent grocery stores 133 or supermarkets; or the renovation or expansion of, including 134 infrastructure upgrades to, community facilities to improve the 135 availability and quality of fresh produce and other healthy 136 foods. 137 (c)3. Report annually to the President of the Senate and 138 the Speaker of the House of Representatives on the projects 139 funded, the geographic distribution of the projects, the costs 140 of the program, and the outcomes, including the number and type 141 of jobs created. 142 (4)(a) The Office of Program Policy Analysis and 143 Government Accountability shall review the program and data 144 collected from the department after a term of 7 years and report 145 to the President of the Senate and the Speaker of the House of 146 Representatives. The report shall include, but is not limited 147 to, health impacts based on data collected by the state on 148 diabetes, heart disease a nd other obesity-related diseases, and 149 other factors as determined by the department. 150 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 (b) If the report determines the program to be 151 unsuccessful after 7 years, the department shall create 152 guidelines for unused funds to be returned to the initial 153 investor. 154 (5) PROGRAM PARTICIPANTS. —Entities that may apply for 155 funding under the program include A for-profit entities entity, 156 including a convenience stores store or a fueling stations; and 157 station, or a not-for-profit entities entity, including, but not 158 limited to, a sole proprietorships, partnerships proprietorship, 159 partnership, limited liability companies, corporations, 160 cooperatives company, corporation, cooperative , nonprofit 161 organizations organization, nonprofit community development 162 entities entity, or private universities university, may apply 163 for financing. 164 (a) A program An applicant for financing must do all of 165 the following: 166 1.(a) Demonstrate the capacity to successfully implement 167 the project and the likelihood that the project will be 168 economically self-sustaining.; 169 2.(b) Demonstrate the ability to repay the loan .; and 170 (c) Agree, as an independent grocery store or supermarket, 171 for at least 5 years, to: 172 3.1. Accept Supplemental Nutrition Assistance Program 173 benefits and; 174 2. Apply to accept Special Supplemental Nutrition Program 175 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 for Women, Infants, and Children benefits . and accept such 176 benefits, if approved; 177 4.3. For independent grocery stores and supermarkets, 178 allocate at least 30 percent of floor food retail space for the 179 sale of perishable foods, which may include fresh or frozen 180 dairy products, fresh produce, and fresh meats, poultry, and 181 fish.; 182 5.4. Comply with all data collection and reporting 183 requirements established by the department .; and 184 6.5. Promote the hiring of local residents. 185 (b) The department shall give preference to Florida -based 186 grocers, local business owners with experience in grocery 187 stores, and grocers and business owners with a business plan 188 that includes written documentation of opp ortunities to purchase 189 from farmers and growers in this state before seeking out -of-190 state purchases. 191 (6) PROJECT ELIGIBILITY. — 192 (a) To be eligible for funding under the program, a 193 project must: 194 1. Be located in an underserved community; and 195 2. Provide for the construction of independent grocery 196 stores or supermarkets; renovation, expansion, and 197 infrastructure upgrades to stores and community facilities that 198 improve the availability and quality of fresh produce and other 199 healthy foods; or other projec ts that create or improve access 200 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 to affordable fresh produce which meet the intent of this 201 section, as determined by the department or a third -party 202 administrator. 203 (b) Projects including, but not limited to, corner stores, 204 bodegas, or other types of nont raditional grocery stores that do 205 not meet the 30 percent floor space minimum in subparagraph 206 (5)(a)4. may 3. can still qualify for funding if such funding 207 will be used for refrigeration, displays, or other one -time 208 capital expenditures to promote the sale of fresh produce and 209 other healthy foods. 210 (6) In determining which qualified projects to finance, 211 the department or third -party administrator shall: 212 (a) Give preference to local Florida -based grocers or 213 local business owners with experience in grocery stores and to 214 grocers and business owners with a business plan model that 215 includes written documentation of opportunities to purchase from 216 Florida farmers and growers before seeking out -of-state 217 purchases; 218 (b) Consider the level of need in the area to b e 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 applicant's project and provide the established entity the right 225 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 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 proj ects shall be 229 funded annually. Financing under this program for eligible 230 projects may 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 247 reasonable by the department or a third -party administrator. 248 (7) PROGRAM REVIEW. — 249 (a) The Office of Program Policy Analysis and Government 250 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 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 must include economic impact and 254 health outcomes data and other factors a s determined by the 255 department. 256 (b) If the report determines the program to be 257 unsuccessful after 7 years, the department must return any 258 initial funds that have not been loaned, granted, or leveraged 259 in a revolving loan fund to the General Revenue Fund. 260 (8) FUNDING.—The department's performance and obligation 261 to 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 department's 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 272 to read: 273 595.401 Short title. —Sections 595.401-595.601 This chapter 274 may be cited as the "Florida School Food and Nutrition Act." 275 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 Section 4. Section 595.402, F lorida Statutes, is amended 276 to read: 277 595.402 Definitions. —As used in this act chapter, the 278 term: 279 (1) "Commissioner" means the Commissioner of Agriculture. 280 (2) "Department" means the Department of Agriculture and 281 Consumer Services. 282 (3) "Program" means any one or more of the school food and 283 nutrition service programs that the department has 284 responsibility over including, but not limited to, the National 285 School Lunch Program, the Special Milk Program, the School 286 Breakfast Program, the Summer Food Servi ce Program, the Fresh 287 Fruit and Vegetable Program, and any other program that relates 288 to school nutrition. 289 (4) "School breakfast program" means a program authorized 290 by s. 4 of the Child Nutrition Act of 1966, as amended, and 291 administered by the departmen t. 292 (5) "School district" means any of the 67 county school 293 districts, including the respective district school board. 294 (6) "Sponsor" means any entity that is conducting a 295 program under a current agreement with the department. 296 (7) "Summer nutrition pro gram" means one or more of the 297 programs authorized under 42 U.S.C. s. 1761. 298 (8) "Universal school breakfast program" means a program 299 that makes breakfast available at no cost to all students 300 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 regardless of their household income. 301 Section 5. Subsection s (3), (9), (10), (11), and (13) of 302 section 595.404, Florida Statutes, are amended to read: 303 595.404 School food and other nutrition programs; powers 304 and duties of the department. —The department has the following 305 powers and duties: 306 (3) To fully cooperat e with the United States Government 307 and its agencies and instrumentalities so that the department 308 may receive the benefit of all federal financial allotments and 309 assistance possible to carry out the purposes of this act 310 chapter. 311 (9) To employ such person s as are necessary to perform its 312 duties under this act chapter. 313 (10) To adopt rules covering the administration, 314 operation, and enforcement of the program and the farmers' 315 market nutrition program, as well as to implement the provisions 316 of this act chapter. 317 (11) To adopt and implement an appeal process by rule, as 318 required by federal regulations, for applicants and participants 319 under the programs implemented pursuant to this act chapter, 320 notwithstanding ss. 120.569 and 120.57 -120.595. 321 (13) To advance funds from the program's annual 322 appropriation to a summer nutrition program sponsor, when 323 requested, in order to implement the provisions of this act 324 chapter and in accordance with federal regulations. 325 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 Section 6. Paragraph (b) of subsection (1) and su bsections 326 (2) and (4) of section 595.408, Florida Statutes, are amended to 327 read: 328 595.408 Food distribution services; department 329 responsibilities and functions. — 330 (1) 331 (b) The department shall determine the benefits each 332 applicant or recipient of assista nce is entitled to receive 333 under this act chapter, provided that each applicant or 334 recipient is a resident of this state and a citizen of the 335 United States or is an alien lawfully admitted for permanent 336 residence or otherwise permanently residing in the Un ited States 337 under color of law. 338 (2) The department shall cooperate fully with the United 339 States Government and its agencies and instrumentalities so that 340 the department may receive the benefit of all federal financial 341 allotments and assistance possible to carry out the purposes of 342 this act chapter. 343 (4) This act chapter does not limit, abrogate, or abridge 344 the powers and duties of any other state agency. 345 Section 7. Subsection (2) of section 595.501, Florida 346 Statutes, is amended to read: 347 595.501 Corrective action plans; penalties. — 348 (2) Any person or sponsor that violates any provision of 349 this act chapter or any rule adopted thereunder or otherwise 350 HB 307 2023 CODING: Words stricken are deletions; words underlined are additions. hb0307-00 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 does not comply with the program is subject to a suspension or 351 revocation of their agreement, loss of reimbursement, or a 352 financial penalty in accordance with federal or state law, or 353 both. This section does not restrict the applicability of any 354 other law. 355 Section 8. This act shall take effect July 1, 2023. 356