Florida Senate - 2016 SENATOR AMENDMENT Bill No. CS for CS for SB 760 Ì791248=Î791248 LEGISLATIVE ACTION Senate . House . . . Floor: NC/2R . 03/09/2016 04:53 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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.