Florida 2023 Regular Session

Florida House Bill H0307 Latest Draft

Bill / Introduced Version Filed 01/20/2023

                               
 
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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; 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     
 
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 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     
 
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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     
 
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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     
 
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 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     
 
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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     
 
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 (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     
 
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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     
 
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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     
 
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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     
 
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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     
 
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 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     
 
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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     
 
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 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     
 
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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