Senate Bill 1450 (2022) — Healthy Food Financing Initiative program
SB 1450
Florida Bills
Florida Senate - 2022 SB 1450 By Senator Jones 35-00466-22 20221450__ Page 1 of 13 CODING: Words stricken are deletions; words underlined are additions. 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 and provide the Legislature wit h a 16 specified report; specifying that program funding is 17 subject to and provided from certain appropriations; 18 deleting a prohibition limiting the amount the 19 Department of Agriculture and Consumer Services may 20 distribute among program recipients; amending s s. 21 595.401, 595.402, 595.404, 595.408, and 595.501, F.S.; 22 conforming provisions to changes made by the act; 23 providing an effective date. 24 25 Be It Enacted by the Legislature of the State of Florida: 26 27
Section 1. The Division of Law Revision is directed to 28 rename
chapter 595, Florida Statutes, entitled “School Food and 29
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 2 of 13 CODING: Words stricken are deletions; words underlined are additions. Nutrition Services,” as “Food and Nutrition.” 30
Section
Section 500.81, Florida Statutes, is 31 transferred, renumbered as
section 595.801, and amended to read: 32 595.801 500.81 Healthy Food Financing Initiative.— 33
(1) DEFINITIONS.—As used in this section, the term: 34 (a) “Community facility” means a property owned by a 35 nonprofit or for-profit entity in which health and human 36 services are provided and space is offered in a manner that 37 provides increased access to, or delivery or distribution of, 38 food or other agricultural products to encourage public 39 consumption and household purchases of fresh produce or other 40 healthy food to improve the public health and well -being of low-41 income children, families, and older adults. 42 (b) “Department” means the Department of Agriculture and 43 Consumer Services. 44 (c) “Independent grocery store or supermarket” means an 45 independently owned grocery store or supermarket whose parent 46 company does not own more than 40 grocery stores throughout the 47 country based upon ownership conditions as identified in the 48 latest Nielsen TDLinx Supermarket/Supercenter database. 49 (d) “Low-income community” means a population census tract, 50 as reported in the most recent United States Census B ureau 51 American Community Survey, which meets one of the following 52 criteria: 53 1.
The poverty rate is at least 20 percent; 54 2. In the case of a low-income community located outside of 55 a metropolitan area, the median family income does not exceed 80 56 percent of the statewide median family income; or 57 3. In the case of a low-income community located inside of 58
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 3 of 13 CODING: Words stricken are deletions; words underlined are additions. a metropolitan area, the median family income does not exceed 80 59 percent of the statewide median family income or 80 percent of 60 the metropolitan median family income, whichever is greater. 61 (e) “Program” means the Healthy Food Financing Initiative 62 established by the department. 63 (f) “Underserved community” means a low-income community 64 distressed urban, suburban, or rural geographic area where a 65 substantial number of residents have low access to a full-66 service supermarket or grocery store.
An area with limited 67 supermarket access must be: 68 1. A census tract, as determined to be an area with low 69 access by the United States Department of Agriculture, as 70 identified in the Food Access Research Atlas; 71 2. Identified as a limited supermarket access area as 72 recognized by the Community Development Financial Institutions 73 Fund of the United States Department of the Treasury; or 74 3.
Identified as an area with low access to a supermarket 75 or grocery store through a methodology that has been adopted for 76 use by another governmental initiative, or a well-established or 77 well-regarded philanthropic healthy food initiative. 78
(2) HEALTHY FOOD FINANCING INITIATIVE PROGRAM.—The 79 department shall establish a Healthy Food Financing Initiative 80 program that provides grants and loans is composed of and 81 coordinates the use of grants from any source; federal, state, 82 and private loans from a governmental entity or institutions 83 regulated by a governmental entity; federal tax credits; and 84 other types of financial assistance for the construction, 85 rehabilitation, or expansion of independent grocery stores, 86 supermarkets, community facilities, or other retail outlets 87
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 4 of 13 CODING: Words stricken are deletions; words underlined are additions. structures to increase access to affordable fresh produce and 88 other nutritious food in underserved communities. 89
(3) THIRD-PARTY ADMINISTRATORS; QUALIFICATIONS.— 90 (
a) The department may contract with one or more qualified 91 nonprofit organizations or Florida-based federally certified 92 community development financial institutions to administer the 93 program through a public-private partnership. 94 (
b) A qualified nonprofit organization must be able to 95 demonstrate all of the following: 96 1. Prior experience in healthy food financing. 97 2. An exemption from taxation under s. 501(c)(3) of the 98 Internal Revenue Code. 99 3. The ability to successfully manage and operate lending 100 and grant programs. 101 4. The ability to assume full financial risk for loans made 102 under the program. 103 (
c) Eligible community development financial institutions 104 must be able to demonstrate all of the following: 105 1. Prior experience in healthy food financing. 106 2. Certification by Support from the Community Development 107 Financial Institutions Fund of the United States Department of 108 the Treasury. 109 3. The ability to successfully manage and operate lending 110 and tax credit programs. 111 4. The ability to assume full financial risk for loans made 112 under the program this initiative. 113 (
d) Any third-party administrator that contracts with the 114 department shall provide quarterly updates to the department . 115 (4)(
b) DUTIES OF THE DEPARTMENT OR THIRD-PARTY 116
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 5 of 13 CODING: Words stricken are deletions; words underlined are additions. ADMINISTRATOR.—The department or a third-party administrator 117 shall do all of the following: 118 (a)1. Establish program guidelines, raise matching funds, 119 promote the program statewide, evaluate applicants, make award 120 decisions, underwrite and disburse grants and loans, and monitor 121 compliance and impact. The department may contract with a third-122 party administrator to carry out such duties.
If the department 123 contracts with a third-party administrator, funds shall be 124 granted to the third-party administrator to create a revolving 125 loan fund for the purpose of financing projects that meet the 126 criteria of the program. The third-party administrator shall 127 report to the department annually. 128 (b)2. Create eligibility guidelines and provide financing 129 through an application process. Eligible projects must: 130 a. Be located in an underserved community; 131 b. Primarily serve low-income communities; and 132 c.
Provide for the renovation or expansion of, including 133 infrastructure upgrades to, existing independent grocery stores 134 or supermarkets; or the renovation or expansion of, including 135 infrastructure upgrades to, community facilities to improve the 136 availability and quality of fresh produce and other healthy 137 foods. 138 (c)3. Report annually to the President of the Senate and 139 the Speaker of the House of Representatives on the projects 140 funded, the geographic distribution of the projects, the costs 141 of the program, and the outcomes, including the number and type 142 of jobs created. 143 (4)(
a) The Office of Program Policy Analysis and Government 144 Accountability shall review the program and data collected from 145
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 6 of 13 CODING: Words stricken are deletions; words underlined are additions. the department after a term of 7 years and report to the 146 President of the Senate and the Speaker of the House of 147 Representatives. The report shall include, but is not limited 148 to, health impacts based on data collected by the state on 149 diabetes, heart disease and other obesity-related diseases, and 150 other factors as determined by the department. 151 (
b) If the report determines the program to be unsuccessful 152 after 7 years, the department shall create guidelines for unused 153 funds to be returned to the initial 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 the 165 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
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 7 of 13 CODING: Words stricken are deletions; words underlined are additions. 2. Apply to accept Special Supplemental Nutrition Program 175 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 opportunities 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 project 193 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 projects that create or improve access 200 to affordable fresh produce which meet the intent of this 201 section, as determined by the department or a third-party 202 administrator. 203
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 8 of 13 CODING: Words stricken are deletions; words underlined are additions. (
b) Projects including, but not limited to, corner stores, 204 bodegas, or other types of nontraditional grocery stores that do 205 not meet the 30 percent space minimum in subparagraph (5)(a)4. 206 may 3. can still qualify for funding if such funding will be 207 used for refrigeration, displays, or other one-time capital 208 expenditures to promote the sale of fresh produce and other 209 healthy foods. 210
(6) In determining which qualified projects to finance, the 211 department or third-party administrator shall: 212 (
a) Give preference to local Florida-based grocers or local 213 business owners with experience in grocery stores and to grocers 214 and business owners with a business plan model that includes 215 written documentation of opportunities to purchase from Florida 216 farmers and growers before seeking out-of-state purchases; 217 (
b) Consider the level of need in the area to be served; 218 (
c) Consider the degree to which the project will have a 219 positive economic impact on the underserved commun ity, including 220 the creation or retention of jobs for local residents; 221 (
d) Consider the location of existing independent grocery 222 stores, supermarkets, or other markets relevant to the 223 applicant’s project and provide the established entity the right 224 of first refusal for such project; and 225 (
e) Consider other criteria as determined by the 226 department. 227 (c)
(7) A minimum of three eligible projects shall be funded 228 annually. Financing under this program for eligible projects may 229 be used for any of the following purposes: 230 1.(
a) Site acquisition and preparation. 231 2.(
b) Construction and build-out costs. 232
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 9 of 13 CODING: Words stricken are deletions; words underlined are additions. 3.(
c) Equipment and furnishings. 233 4.(
d) Workforce training or security. 234 5.(
e) Predevelopment costs, such as market studies and 235 appraisals. 236 6.(
f) Energy efficiency measures. 237 7.(
g) Working capital for first-time inventory and startup 238 costs, including seeds and starter plants for residential 239 produce cultivation. 240 (
h) Acquisition of seeds and starter plants for the 241 residential cultivation of fruits, vegetables, herbs, and other 242 culinary products. However, only 7 percent of the total funds 243 expended in any one project under this
section may be used for 244 such acquisition. 245 8.(
i) Other purposes as determined necessary and reasonable 246 by the department or a third-party administrator. 247
(7) PROGRAM REVIEW.— 248 (
a) The Office of Program Policy Analysis and Government 249 Accountability shall review the program and data collected from 250 the department after a term of 7 years and provide a report to 251 the President of the Senate and the Speaker of the House of 252 Representatives. The report shall include economic impact and 253 health outcomes data and other factors as determined by the 254 department. 255 (
b) If the report determines the program to be unsuccessful 256 after 7 years, the department shall return any initial funds 257 that have not been loaned, granted, or leveraged in a revolving 258 loan fund to the General Revenue Fund. 259
(8) FUNDING.—The department’s performance and obligation to 260 pay under this
section is contingent upon an annual 261
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 10 of 13 CODING: Words stricken are deletions; words underlined are additions. appropriation by the Legislature as provided in s. 287.0582. If 262 the department contracts with a third-party administrator, funds 263 must be advanced from the department’s annual appropriation to 264 the third-party administrator in order to implement this 265 section. 266 (9)
(8) RULES.—The department shall adopt rules to 267 administer this section. 268
(9) The department may not distribute more than $500,000 269 among more than three recipients. 270
Section
Section 595.401, Florida Statutes, is amended to 271 read: 272 595.401
Short title.—Sections 595.401-595.601 This
chapter 273 may be cited as the “Florida School Food and Nutrition Act.” 274
Section
Section 595.402, Florida Statutes, is amended to 275 read: 276 595.402
Definitions.—As used in this act chapter, the 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 N ational 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
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 11 of 13 CODING: Words stricken are deletions; words underlined are additions. (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 program 293 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 breakfast 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
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 administration, operation, 312 and enforcement of the program and the farmers’ market nutrition 313 program, as well as to implement the provisions of this act 314 chapter. 315
(11) To adopt and implement an appeal process by rule, as 316 required by federal regulations, for applicants and participants 317 under the programs implemented pursuant to this act chapter, 318 notwithstanding ss. 120.569 and 120.57-120.595. 319
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(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 subsection (1) and subsections 324 (2) and (4) of
section 595.408, Florida Statutes, are amended to 325 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 residing 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 assistance 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
Florida Senate - 2022 SB 1450 35-00466-22 20221450__ Page 13 of 13 CODING: Words stricken are deletions; words underlined are additions. does not comply with the program is subject to a suspension or 349 revocation of their agreement, loss of reimbursement, or a 350 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