The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Appropriations Committee on Agriculture, Environment, and General
Government
BILL: SB 292
INTRODUCER: Senator Jones
SUBJECT: Healthy Food Financing Initiative Program
DATE: March 13, 2023 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Burse Becker AG Favorable
2. Blizzard Betta AEG Favorable
3. FP
I. Summary:
SB 292 amends the Healthy Food Financing Initiative, which was created in 2016. The bill
transfers, renumbers, and amends s. 500.81, Florida Statutes, to redefine “underserved
communities,” revises requirements for the administration of and participation in the Healthy
Food Financing Initiative program, and revises eligibility requirements for program participants.
The bill provides that a minimum of three eligible projects be funded annually and lists the
eligible purposes for financing. The bill requires the Office of Program Policy Analysis and
Government Accountability (OPPAGA) to review the program and collected data and provide
the Legislature with a specified report. The bill also provides that the department’s performance
and obligation to pay is contingent upon annual appropriation by the Legislature.
The bill has an indeterminate impact on the Department of Agriculture and Consumer Services.
See Section V. Fiscal Impact Statement.
The bill provides an effective date of July 1, 2023.
II. Present Situation:
Healthy Food Financing Initiative Program
In 2016, the Florida Legislature directed the Department of Agriculture and Consumer Services
(department) to establish a Healthy Food Financing Initiative Program (program) to provide
financial assistance for the rehabilitation or expansion of grocery retail outlets located in
underserved or low-income communities.1 The department was directed to draw upon and
1
Department of Agriculture and Consumer Services, Health Food Financing Initiative, available at Healthy Food
Financing Initiative / Nutrition Programs / Food & Nutrition / Home - Florida Department of
Agriculture & Consumer Services (fdacs.gov) (last visited January 26, 2023)
BILL: SB 292 Page 2
coordinate the use of federal, state, and private loans or grants, federal tax credits, and other
types of financial assistance. The goal of the program is to improve public health and well-being
of low-income children, families, and older adults by increasing access to fresh produce and
other nutritious foods at participating independent grocery outlets that will be required to allocate
at least 30 percent of their retail space to the sale of perishable foods, which may include fresh or
frozen dairy products, fresh produce, and fresh meats, poultry, and fish. Annual reporting of the
Program’s accomplishments is required to be made to the President of the Senate and Speaker of
the House, and, after seven years, the Office of Program and Policy Analysis and Government
Accountability is directed to review the impact and successfulness of the program.2
For the 2016-2017 fiscal year, $500,000 in non-recurring general revenue was appropriated to the
department to implement the program.3
Food Insecurity in Florida
In 2021, the Office of Program Policy Analysis and Government Accountability (OPPAGA)
prepared a research memorandum to describe low income, low access (LILA) census tracts in the
state, which includes describing what is known about LILA food areas and the effects on
residents of those areas.4 The memorandum outlines the incidence of LILA census tracts
statewide, specifically, the number of people that are both low income and have limited access to
healthy food options by census tract; provides additional information about LILA areas in
Hillsborough, Pinellas, and Suwannee counties; and provides high level policy considerations to
expand access to healthy food in LILA areas.
In Florida, the number of LILA tracts has decreased since 2015, but barriers to healthy food
access remain.5 Approximately 13.5 percent of Floridians live in census tracts that are both low
income and low access, with a larger percentage of urban residents compared to rural residents.6
In Hillsborough and Pinellas counties, residents of LILA census tracts are disproportionately
lower socioeconomic minority group compared to other areas of the county and the LILA census
tracts have high poverty rates, and few, if any major chain supermarkets.7 Public and private
entities have started a range of food access initiatives in these counties, though resource
constraints present a challenge8. In Suwannee County, the two LILA census tracts have a higher
proportion of residents that are 65 and older, have no major chain supermarkets, and stakeholders
report that the largest barrier to healthy food access is transportation9.
High relative availability of unhealthy food refers to geographic areas where there is a high ratio
of unhealthy food sources to healthy food sources. Such areas are sometimes referred to as food
swamps. Both low-access and unhealthy food environments have been associated with a range of
social, economic, and health concerns. A “low income” census tract is characterized by a poverty
2
Section 500.81, F.S.
3
Chapter 2016-221, Laws of Florida.
4
Office of Program Policy and Government Accountability, “Geographic Access to Healthy Food in Florida,” (December 27,
2021).
5
Id. at 10.
6
Id. at 10.
7
Id. at 16-17 & 25-26.
8
Id. at 23-24 & 30-31.
9
Id. at 32-34.
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rate greater than 20 percent, or median family income of less than or equal to 80 percent of the
statewide median family income, or in metropolitan areas, 80 percent of the metropolitan area
median family income. A “low access” census tract is characterized by an area where at least
500 people, or 33 percent of the population is greater than one mile (urban) or 10 miles (rural)
from a supermarket, supercenter, or large grocery store.10
III. Effect of Proposed Changes:
Section 1 renames Chapter. 595, F.S., entitled “School Food and Nutrition Services,” as “Food
and Nutrition.”
Section 2 transfers, renumbers and amends s. 500.81, F.S., as section 595.801, F.S.
The bill changes the definition of “underserved community” to “a low income community where
a substantial number of residents have low access to a full service supermarket or grocery store.”
The bill directs the Department of Agriculture and Consumer Services (department) to establish
a Healthy Food Financing Initiative program that provides grants and loans, for the construction,
rehabilitation, or expansion of independent grocery stores, supermarkets, community facilities, or
other retail outlets to increase access to affordable fresh produce and other nutritious food in
underserved communities.
The bill also provides new program eligibility requirements for nonprofit organizations, requiring
that the organization can demonstrate:
Prior experience in healthy food financing;
An exemption from taxation under s. 501(c)(3) of the Internal Revenue Code;
The ability to successfully manage and operate lending and grant programs; and
The ability to assume full financial risk for loans made under the program.
The bill also provides new program eligibility requirements for community development financial
institutions. These institutions must demonstrate all of the following:
Prior experience in healthy food financing;
Certification by the Community Development Financial Institutions Fund of the United
States Department of the Treasury;
The ability to successfully manage and operate lending and tax credit programs; and
The ability to assume full financial risk for loans made under the program.
The bill also requires that any third-party administrator that contracts with the department
provide quarterly updates to the department.
The department, or a third party administrator, is required to:
Establish program guidelines, raise matching funds, promote the program statewide, evaluate
applicants, make award decisions, underwrite and disburse grants and loans, and monitor
compliance and impact;
Create eligibility guidelines and provide financing through an application process; and
10
Id. at 3
BILL: SB 292 Page 4
Report annually to the President of the Senate and the Speaker of the House of
Representatives on the projects funded, the geographic distribution of the projects, and the
outcomes, including the number and type of jobs created.
The bill also revises requirements for program applicants and projects. The entities that may
apply for funding under the program include for profit entities, including convenience stores or
fueling stations, and not-for-profit entities including, but not limited to, sole proprietorships,
partnerships, limited liability companies, corporations, cooperatives, nonprofit organizations,
nonprofit community development entities, or private universities.
The bill requires that a program applicant must do all of the following:
Demonstrate the capacity to successfully implement the project and the likelihood that the
project will be economically self-sustaining;
Demonstrate the ability to repay the loan;
Accept Supplemental Nutrition Assistance Program benefits and Special Supplemental
Nutrition Program for Women, Infants, and Children benefits;
Independent grocery stores and supermarkets must allocate at least 30 percent of floor space
for the sale of perishable foods;
Comply with all data collection and reporting; and
Promote the hiring of local residents as well as Florida-based grocers.
The bill provides that the department shall give preference to Florida-based grocers, local
business owners with experience in grocery stores, and grocers and business owners with a
business plan that includes written documentation of opportunities to purchase from farmers and
growers in this state before seeking out-of-state purchases.
The bill outlines certain requirements for program eligibility. Projects must be located in an
underserved community and provide for the construction of independent grocery stores or
supermarkets; renovation, expansion, and infrastructure upgrades to stores and community
facilities that improve the availability and quality of fresh produce and other healthy foods; or
other projects that create or improve access to affordable fresh produce.
The bill provides that a minimum of three eligible projects be funded annually and lists the
eligible purposes for financing.
The bill requires that the Office of Program Policy Analysis and Government Accountability
review the program and data collected from the department after a term of seven years and
provide a report to the President of the Senate and the Speaker of the House of Representatives.
The report must include economic impact and health outcomes data and other factors as
determined by the department. If the report determines the program to be unsuccessful after
seven years, the department must return any initial funds that have not been loaned, granted, or
leveraged in a revolving loan fund to the General Revenue Fund.
The bill provides that the department’s performance and obligation to pay under this section is
contingent upon an annual appropriation by the Legislature as provided in s. 287.0582, F.S. If the
department contracts with a third-party administrator, funds must be advanced from the
BILL: SB 292 Page 5
department’s annual appropriation to the third-party administrator in order to implement this
section.
The bill grants the department rulemaking authority to implement the bill.
Sections 3, 4, 5, 6, and 7 make technical changes.
Section 8 provides the bill will take effect July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
Funding for the Healthy Food Financing Initiative Program (program) is contingent upon
specific appropriation by the Legislature. The department may incur an indeterminate
increase in costs to implement the provisions of the bill. These costs will need to be
funded through the overall appropriation for the program. This bill does not provide
funding for the program.
BILL: SB 292 Page 6
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 500.81, 595.401,
595.402, 595.404, 595.408, and 595.501.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Statutes affected: S 292 Filed: 595.401, 595.402, 595.501