Florida Senate - 2016                          SENATOR AMENDMENT
       Bill No. CS for CS for CS for HB 153
       
       
       
       
       
       
                                Ì430650wÎ430650                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 1/RE/3R         .                                
             03/10/2016 11:44 AM       .                                
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       Senator Bean moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Healthy Food Financing Initiative.—
    6         (1) As used in this section, the term:
    7         (a) “Community facility” means a property owned by a
    8  nonprofit or for-profit entity in which health and human
    9  services are provided and space is offered in a manner that
   10  provides increased access to, or delivery or distribution of,
   11  food or other agricultural products to encourage public
   12  consumption and household purchases of fresh produce or other
   13  healthy food to improve the public health and well-being of low
   14  income children, families, and older adults.
   15         (b) “Department” means the Department of Agriculture and
   16  Consumer Services.
   17         (c) “Independent grocery store or supermarket” means an
   18  independently owned grocery store or supermarket whose parent
   19  company does not own more than 40 grocery stores throughout the
   20  country based upon ownership conditions as identified in the
   21  latest Nielsen TDLinx Supermarket/Supercenter database.
   22         (d) “Low-income community” means a population census tract,
   23  as reported in the most recent United States Census Bureau
   24  American Community Survey, which meets one of the following
   25  criteria:
   26         1. The poverty rate is at least 20 percent;
   27         2. In the case of a low-income community located outside of
   28  a metropolitan area, the median family income does not exceed 80
   29  percent of the statewide median family income; or
   30         3. In the case of a low-income community located inside of
   31  a metropolitan area, the median family income does not exceed 80
   32  percent of the statewide median family income or 80 percent of
   33  the metropolitan median family income, whichever is greater.
   34         (e) “Program” means the Healthy Food Financing Initiative
   35  established by the department.
   36         (f) “Underserved community” means a distressed urban,
   37  suburban, or rural geographic area where a substantial number of
   38  residents have low access to a full-service supermarket or
   39  grocery store. An area with limited supermarket access must be:
   40         1. A census tract, as determined to be an area with low
   41  access by the United States Department of Agriculture, as
   42  identified in the Food Access Research Atlas;
   43         2. Identified as a limited supermarket access area as
   44  recognized by the Community Development Financial Institutions
   45  Fund of the United States Department of the Treasury; or
   46         3. Identified as an area with low access to a supermarket
   47  or grocery store through a methodology that has been adopted for
   48  use by another governmental initiative, or well-established or
   49  well-regarded philanthropic healthy food initiative.
   50         (2) The department shall establish a Healthy Food Financing
   51  Initiative program that is composed of and coordinates the use
   52  of grants from any source; federal, state, and private loans
   53  from a governmental entity or institutions regulated by a
   54  governmental entity; federal tax credits; and other types of
   55  financial assistance for the construction, rehabilitation, or
   56  expansion of independent grocery stores, supermarkets, community
   57  facilities, or other structures to increase access to fresh
   58  produce and other nutritious food in underserved communities.
   59         (3)(a) The department may contract with one or more
   60  qualified nonprofit organizations or Florida-based federally
   61  certified community development financial institutions to
   62  administer the program through a public-private partnership.
   63  Eligible community development financial institutions must be
   64  able to demonstrate:
   65         1. Prior experience in healthy food financing.
   66         2. Support from the Community Development Financial
   67  Institutions Fund of the United States Department of the
   68  Treasury.
   69         3. The ability to successfully manage and operate lending
   70  and tax credit programs.
   71         4. The ability to assume full financial risk for loans made
   72  under this initiative.
   73         (b) The department shall:
   74         1. Establish program guidelines, raise matching funds,
   75  promote the program statewide, evaluate applicants, underwrite
   76  and disburse grants and loans, and monitor compliance and
   77  impact. The department may contract with a third-party
   78  administrator to carry out such duties. If the department
   79  contracts with a third-party administrator, funds shall be
   80  granted to the third-party administrator to create a revolving
   81  loan fund for the purpose of financing projects that meet the
   82  criteria of the program. The third-party administrator shall
   83  report to the department annually.
   84         2. Create eligibility guidelines and provide financing
   85  through an application process. Eligible projects must be:
   86         a. Located in an underserved community;
   87         b. Primarily serve low-income communities; and
   88         c. Provide for the construction of new independent grocery
   89  stores or supermarkets; the renovation or expansion of,
   90  including infrastructure upgrades to, existing independent
   91  grocery stores or supermarkets; or the construction, renovation,
   92  or expansion of, including infrastructure upgrades to, community
   93  facilities to improve the availability and quality of fresh
   94  produce and other healthy foods.
   95         3.Report annually to the President of the Senate and the
   96  Speaker of the House of Representatives on the projects funded,
   97  the geographic distribution of the projects, the costs of the
   98  program, and the outcomes, including the number and type of jobs
   99  created.
  100         (4)(a)The Office of Program Policy Analysis and Government
  101  Accountability shall review the program and data collected from
  102  the department after a term of 7 years and report to the
  103  President of the Senate and the Speaker of the House of
  104  Representatives. The report shall include, but is not limited
  105  to, health impacts based on data collected by the state on
  106  diabetes, heart disease and other obesity-related diseases, and
  107  other factors as determined by the department.
  108         (b)If the report determines the program to be unsuccessful
  109  after 7 years, the department shall create guidelines for unused
  110  funds to be returned to the initial investor.
  111         (5) A for-profit entity, including a convenience store or a
  112  fueling station, or a not-for-profit entity, including, but not
  113  limited to, a sole proprietorship, partnership, limited
  114  liability company, corporation, cooperative, nonprofit
  115  organization, nonprofit community development entity, or private
  116  university, may apply for financing. An applicant for financing
  117  must:
  118         (a) Demonstrate the capacity to successfully implement the
  119  project and the likelihood that the project will be economically
  120  self-sustaining;
  121         (b) Demonstrate the ability to repay the loan; and
  122         (c) Agree, as an independent grocery store or supermarket,
  123  for at least 5 years, to:
  124         1. Accept Supplemental Nutrition Assistance Program
  125  benefits;
  126         2. Apply to accept Special Supplemental Nutrition Program
  127  for Women, Infants, and Children benefits and accept such
  128  benefits, if approved;
  129         3. Allocate at least 30 percent of food retail space for
  130  the sale of perishable foods, which may include fresh or frozen
  131  dairy products, fresh produce, and fresh meats, poultry, and
  132  fish;
  133         4. Comply with all data collection and reporting
  134  requirements established by the department; and
  135         5. Promote the hiring of local residents.
  136  
  137  Projects including, but not limited to, corner stores, bodegas,
  138  or other types of nontraditional grocery stores that do not meet
  139  the 30 percent minimum in subparagraph 3. can still qualify for
  140  funding if such funding will be used for refrigeration,
  141  displays, or other one-time capital expenditures to promote the
  142  sale of fresh produce and other healthy foods.
  143         (6) In determining which qualified projects to finance, the
  144  department or third-party administrator shall:
  145         (a) Give preference to local Florida-based grocers or local
  146  business owners with experience in grocery stores and to grocers
  147  and business owners with a business plan model that includes
  148  written documentation of opportunities to purchase from Florida
  149  farmers and growers before seeking out-of-state purchases;
  150         (b) Consider the level of need in the area to be served;
  151         (c) Consider the degree to which the project will have a
  152  positive economic impact on the underserved community, including
  153  the creation or retention of jobs for local residents;
  154         (d)Consider the location of existing independent grocery
  155  stores, supermarkets, or other markets relevant to the
  156  applicant’s project and provide the established entity the right
  157  of first refusal for such project; and
  158         (e) Consider other criteria as determined by the
  159  department.
  160         (7) Financing for projects may be used for the following
  161  purposes:
  162         (a) Site acquisition and preparation.
  163         (b) Construction and build-out costs.
  164         (c) Equipment and furnishings.
  165         (d) Workforce training or security.
  166         (e) Predevelopment costs, such as market studies and
  167  appraisals.
  168         (f) Energy efficiency measures.
  169         (g) Working capital for first-time inventory and startup
  170  costs.
  171         (h)Acquisition of seeds and starter plants for the
  172  residential cultivation of fruits, vegetables, herbs, and other
  173  culinary products. However, only 7 percent of the total funds
  174  expended in any one project under this section may be used for
  175  such acquisition.
  176         (i)Other purposes as determined by the department or a
  177  third-party administrator.
  178         (8) The department shall adopt rules to administer this
  179  section.
  180         Section 2. Implementation of the Healthy Food Financing
  181  Initiative is contingent upon appropriation by the Legislature.
  182         Section 3. This act shall take effect July 1, 2016.
  183  
  184  ================= T I T L E  A M E N D M E N T ================
  185  And the title is amended as follows:
  186         Delete everything before the enacting clause
  187  and insert:
  188                        A bill to be entitled                      
  189         An act relating to the Healthy Food Financing
  190         Initiative; providing definitions; directing the
  191         Department of Agriculture and Consumer Services to
  192         establish a Healthy Food Financing Initiative program
  193         to provide specified financing to construct,
  194         rehabilitate, or expand independent grocery stores and
  195         supermarkets in underserved communities within low
  196         income communities; authorizing the department to
  197         contract with a third-party administrator;
  198         establishing funding specifications for
  199         administrators; providing program, project, and
  200         applicant requirements; authorizing funds to be used
  201         for specified purposes; directing the department to
  202         submit an annual report to the Legislature and adopt
  203         rules; directing the Office of Program Policy Analysis
  204         and Government Accountability to study the results of
  205         the program after a certain time period; directing the
  206         termination of the program under certain conditions;
  207         providing that implementation of the program is
  208         contingent upon legislative appropriation; providing
  209         an effective date.