Florida Senate - 2017              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. CS for SB 1592
       Proposed Committee Substitute by the Committee on Appropriations
       (Appropriations Subcommittee on the Environment and Natural
    1                        A bill to be entitled                      
    2         An act relating to small food retailers; creating s.
    3         595.430, F.S.; establishing the Healthy Food
    4         Assistance Program within the Department of
    5         Agriculture and Consumer Services; providing a
    6         purpose; requiring the Office of Program Policy
    7         Analysis and Government Accountability to conduct an
    8         independent study evaluating the program’s policy
    9         impact; providing for future repeal and legislative
   10         review; creating s. 595.431, F.S.; providing
   11         definitions; creating s. 595.432, F.S.; requiring the
   12         department to develop guidelines and administer the
   13         program; providing department duties and
   14         responsibilities; providing for funding; creating s.
   15         595.433, F.S.; providing duties and responsibilities
   16         of program administrators; exempting program
   17         administrators from provisions relating to state
   18         procurement of certain property and services;
   19         repealing s. 500.81, F.S., relating to the Healthy
   20         Food Financing Initiative; providing an effective
   21         date.
   23         WHEREAS, overweight children and adults are at greater risk
   24  for numerous adverse health consequences, including type 2
   25  diabetes, heart disease, stroke, high blood pressure, high
   26  cholesterol, certain cancers, asthma, low self-esteem,
   27  depression, and other debilitating diseases, and
   28         WHEREAS, in Florida, nearly 27 percent of adults were
   29  considered overweight or obese in 2015, and nearly 13 percent of
   30  children were considered overweight and obese in 2011, and
   31         WHEREAS, obese children are at least twice as likely as
   32  non-obese children to become obese adults, and
   33         WHEREAS, overweight and obese individuals, particularly
   34  older adults, can also be malnourished, defined as lacking the
   35  proper amount of essential nutrients, thus often increasing
   36  their risk of muscle wasting, which can lead to disability and
   37  poor health outcomes, and
   38         WHEREAS, obesity-related health conditions have serious
   39  economic costs, and
   40         WHEREAS, annual health care costs from obesity are at least
   41  $190 billion dollars, or 21 percent of the nation’s total health
   42  care spending, and are expected to rise substantially, and
   43         WHEREAS, roughly 40 percent of these costs are paid through
   44  Medicare and Medicaid, meaning that taxpayers pay much of the
   45  cost, and
   46         WHEREAS, Medicare and Medicaid spending would be reduced by
   47  8.5 percent and 11.8 percent, respectively, in the absence of
   48  obesity-related spending, and
   49         WHEREAS, annual medical expenditures in Florida related to
   50  obesity are estimated at $6,675,670,940 with approximately $2.6
   51  billion of this amount paid by Medicare and Medicaid in the
   52  state, and
   53         WHEREAS, many Americans, particularly those in low-income
   54  neighborhoods, rural areas, and communities of color, reside
   55  where adequate access to full-service grocery stores is not
   56  guaranteed, and
   57         WHEREAS, low-income areas have more than twice as many
   58  convenience stores and four times as many small grocery stores
   59  as high-income areas, and
   60         WHEREAS, proximity to convenience stores within a
   61  neighborhood is associated with higher rates of obesity and
   62  diabetes, and
   63         WHEREAS, small food retailers tend to sell few fresh
   64  produce, whole grains, or low-fat dairy products, and
   65         WHEREAS, small food retailers commonly sell highly
   66  processed foods that are high in fat and low in nutrients, and
   67         WHEREAS, small food retailers tend to charge higher prices
   68  for their food as compared to grocery stores and supermarkets,
   69  and
   70         WHEREAS, providing assistance to existing small food
   71  retailers to stock fresh produce and other healthy foods and
   72  promote good nutrition can provide residents with access to
   73  healthier foods, and
   74         WHEREAS, community programs that work with small food
   75  retailers have shown promise in increasing healthy food sales,
   76  improving store offerings, and promoting good nutrition, and
   77         WHEREAS, the program established pursuant to this act is
   78  intended to be a source of funding to provide assistance for
   79  Florida’s small food retailers operating in certain urban and
   80  rural areas so that the retailers sell more fresh fruits and
   81  vegetables and other healthy foods at affordable prices to
   82  neighboring residents in an effort to improve residents’ diets
   83  and health, NOW, THEREFORE,
   84  Be It Enacted by the Legislature of the State of Florida:
   86         Section 1. Section 595.430, Florida Statutes, is created to
   87  read:
   88         595.430Healthy Food Assistance Program.—
   89         (1)There is established within the department the Healthy
   90  Food Assistance Program.
   91         (2)The purpose of the program is to provide a process for
   92  small food retailers to receive assistance for projects that
   93  increase the availability and sales of fresh and nutritious
   94  food, including fresh vegetables, fruits, meats, and seafood in
   95  low-income and moderate-income communities.
   96         (3)The Office of Program Policy Analysis and Government
   97  Accountability shall conduct an independent study to evaluate
   98  the policy impact of placing healthy food in previously
   99  underserved communities.
  100         (4)This section and ss. 595.431-595.433 are repealed June
  101  30, 2020, unless reviewed and saved from repeal through
  102  reenactment by the Legislature.
  103         Section 2. Section 595.431, Florida Statutes, is created to
  104  read:
  105         595.431Definitions.—As used in ss. 595.430-595.433, the
  106  term:
  107         (1)“Low-income community” means a population census tract,
  108  as reported in the most recent United States Census Bureau
  109  American Community Survey, which meets one of the following
  110  criteria:
  111         (a)The poverty rate is at least 20 percent;
  112         (b)In the case of a low-income community located outside a
  113  metropolitan area, the median family income does not exceed 80
  114  percent of the statewide median family income; or
  115         (c)In the case of a low-income community located within a
  116  metropolitan area, the median family income does not exceed 80
  117  percent of the statewide median family income or 80 percent of
  118  the metropolitan area’s median family income, whichever is
  119  greater.
  120         (2)“Moderate-income community” means a population census
  121  tract, as reported in the most recent United States Census
  122  Bureau American Community Survey, in which the median family
  123  income is between 81 percent and 95 percent of the statewide
  124  median family income or metropolitan area’s median family
  125  income.
  126         (3)“Program” means the Healthy Food Assistance Program
  127  established within the department pursuant to s. 595.430.
  128         (4)“Project administrator” means an entity selected by the
  129  department to manage the program to assist small food retailers
  130  in low-income and moderate-income communities in the state.
  131         (5)“Small food retailer” means a small-scale retail store
  132  of less than 3,000 square feet, such as a corner store,
  133  convenience store, neighborhood store, small grocery store, or
  134  bodega, which sells a limited selection of foods and other
  135  products.
  136         Section 3. Section 595.432, Florida Statutes, is created to
  137  read:
  138         595.432Duties and responsibilities of the department.—
  139         (1)The department shall administer the program and develop
  140  guidelines for the operation of the program. The guidelines may
  141  include procedures for granting appropriated funds to a
  142  qualified project administrator to provide assistance to small
  143  food retailers in urban and rural low-income and moderate-income
  144  communities to increase the sales of fresh produce and other
  145  healthy foods.
  146         (2)In administering the program, the department shall:
  147         (a)Establish program administrator eligibility guidelines,
  148  including, but not limited to, the development of an application
  149  process for project administrators and monitoring and
  150  accountability mechanisms for projects receiving assistance
  151  under the program. At a minimum, a project administrator must be
  152  a not-for-profit entity and have demonstrated experience in
  153  developing and implementing strategies for healthy food retail
  154  in small stores.
  155         (b)Establish criteria for a project administrator to use
  156  in determining which projects to select, including, but not
  157  limited to, consideration of the level of need in the area
  158  proposed to be served by the applicant.
  159         (c)Provide materials to a project administrator that
  160  educate consumers on the benefits of healthy eating and
  161  encourage, when possible, buying Fresh From Florida agricultural
  162  products for distribution.
  163         (d)Electronically submit an annual report to the President
  164  of the Senate and the Speaker of the House of Representatives
  165  regarding the program, including, but not limited to, projects
  166  funded, project expenditures, the geographic distribution of
  167  funds, program results, and the program’s impact on any health
  168  related initiatives.
  169         (3)The department’s performance and obligation to pay
  170  under this section is contingent upon an annual appropriation by
  171  the Legislature.
  172         Section 4. Section 595.433, Florida Statutes, is created to
  173  read:
  174         595.433Duties and responsibilities of project
  175  administrators.—
  176         (1)A project administrator shall be responsible for
  177  implementing and operating the program. The project
  178  administrator shall:
  179         (a)Establish and administer an application process for
  180  small food retailers to participate in the program. At a
  181  minimum, in order to receive assistance under the program, a
  182  small food retailer must:
  183         1.Be located in a low-income community or moderate-income
  184  community.
  185         2.Accept, or agree to apply to and accept, Supplemental
  186  Nutrition Assistance Program (SNAP) and Special Supplemental
  187  Nutrition Program for Women, Infants, and Children (WIC)
  188  benefits.
  189         (b)Promote program availability throughout the state and
  190  undertake efforts to raise funds from other private and public
  191  sources.
  192         (c)Use up to 10 percent of the funds distributed by the
  193  department for administrative and operational costs associated
  194  with operating the program, if such costs are not covered by
  195  other budgets or in-kind resources.
  196         (d)Collect and provide data and other information
  197  quarterly as required by the department.
  198         (e)Establish defined goals, standards, and accountability
  199  mechanisms for eligible project applicants to ensure that the
  200  expenditure of moneys is consistent with the purpose of the
  201  program.
  202         (f)Develop a plan for eligible project applicants by
  203  describing specific goals for increasing the sales of produce
  204  and other healthy foods and educating consumers on the benefits
  205  of healthy eating, including, but not limited to, mechanisms to:
  206         1.Engage communities to support participating small food
  207  retailers.
  208         2.Seek guidance from state, county, or municipal agencies,
  209  private or public universities, cooperative extension services,
  210  community-based organizations, and community members.
  211         (g)Establish standards to assess whether project goals are
  212  met.
  213         (h)Ensure expenditures are appropriate by monitoring the
  214  activities of small food retailers.
  215         (i)Expend funds for each approved project only for the
  216  following purposes:
  217         1.Refrigeration, display shelving, or other equipment that
  218  small food retailers need, up to a maximum of $7,500 per
  219  retailer.
  220         2.Materials and supplies for nutrition education and
  221  healthy food promotion.
  222         3.Initial purchases of healthy foods, including dairy
  223  products, and fresh produce, up to a maximum of $2,000 per
  224  retailer.
  225         (2)For purposes of this section, a project administrator
  226  is not subject to chapter 287.
  227         Section 5. Section 500.81, Florida Statutes, is repealed.
  228         Section 6. This act shall take effect July 1, 2017.