HB283 By Representatives Buskey, Bracy, Knight, Drummond and Givan RFD Agriculture and Forestry Rd 1 17-MAR-15

SYNOPSIS: This bill would create the Healthy Food Financing Act to provide financing for grocery stores to operate in low and moderate income areas in order to increase the availability of fresh and nutritious food to underserved communities.

This bill would also require the Department of Agriculture and Industries to administer the financing program.

A BILL TO BE ENTITLED AN ACT

Relating to underserved communities; to create the Healthy Food Financing Act to provide financing for grocery stores to operate in low and moderate income areas in order to increase the availability of fresh and nutritious food to underserved communities; and to require the Department of Agriculture and Industries to administer the financing program.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. (a) This act shall be known as the Healthy Food Financing Act.

(b) The purpose of this act is to establish a statewide program to increase the availability of fresh and nutritious food, including fruits and vegetables, in underserved communities by providing financing for retailers to open, renovate, or expand grocery stores.

Section 2. For the purposes of this act, the following words have the following meanings:

(1) DEPARTMENT. The Department of Agriculture and Industries.

(2) FINANCING. Loans or grants.

(3) GROCERY STORE. A for-profit or nonprofit self-service retail establishment that primarily sells meat, seafood, fruits, vegetables, dairy products, dry groceries, household products, and other healthy or fresh food retailers.

(4) LOW INCOME AREA. A census tract, as reported in the most recently completed decennial census published by the U.S. Bureau of the Census, that has a poverty rate of at least 20 percent or in which the median family income does not exceed 80 percent of the greater of the statewide or metropolitan median family income.

(5) MODERATE INCOME AREA. A census tract in which the median family income is between 81 and 95 percent of the median family income for the area.

(6) UNDERSERVED COMMUNITY. A census tract determined to be an area with low supermarket access by either the U.S. Department of Agriculture (USDA), as identified in the USDA's Food Access Research Atlas, or through a methodology that has been adopted for use by another governmental or philanthropic healthy food initiative.

Section 3. There is established the Healthy Food Financing Fund, which shall be comprised of federal, state, or private grants or loans, federal tax credits, or other type of financial assistance, for the construction or expansion of grocery stores to expand access to fresh produce and other nutritious foods in underserved communities. Monies in the fund shall be used, to the extent practicable, to leverage other forms of financing. No less than 25 percent of the monies in the fund shall be expended in the form of grants or forgivable loans.

Section 4. (a) The department, in cooperation with public and private sector partners, shall establish a financing program to provide financing to retailers to construct, rehabilitate, or expand grocery stores in underserved communities in urban and rural low and moderate income areas.

(b) The department may contract with one or more qualified nonprofit organizations or community development financial institutions to administer this program through a public-private partnership. The department shall establish program guidelines, raise matching funds, promote the program statewide, evaluate applicants, underwrite and disburse grants and loans, and monitor compliance and impact. The department may develop rules in accordance with the Administrative Procedure Act to carry out the program and to meet the intent of this act. No more than 10 percent of the monies in the fund shall be reserved for administrative and operational costs to manage the program, unless those costs are provided for from other budgets or in-kind resources.

(c) The department shall establish monitoring and accountability mechanisms for projects receiving financing and shall report annually to the Legislature on the projects funded, the geographic distribution of the projects, the costs of the program, the administrative cost of the program, and the outcomes, including the number and type of jobs created and health impacts associated with the program.

(d) The department shall create eligibility guidelines and provide financing through an application process. Projects shall be located in an underserved community and primarily serve low or moderate income areas. Projects eligible for financing include the following:

(1) Construction of new grocery stores.

(2) Store renovations, expansion, and infrastructure upgrades that improve the availability and quality of fresh produce and other healthy foods.

(e) An applicant for financing may be a for-profit or nonprofit entity, including, but not limited to, a sole proprietorship, partnership, limited liability company, corporation, cooperative, nonprofit organization, nonprofit community development entity, university, or government entity. An applicant for financing shall do all of the following:

(1) Demonstrate the capacity to successfully implement the project and the likelihood that the project will be economically self-sustaining.

(2) Demonstrate the ability to repay the debt.

(3) Agree, for a period of at least five years, to comply with the following conditions:

a. To allocate at least 30 percent of food retail space for the sale of perishable foods, which may include fresh or frozen dairy, fresh produce, whole grains, fresh meats, poultry, and fish.

b. To comply with all data collection and reporting requirements established by the department.

c. To promote the hiring of local residents.

(f) In determining which qualified projects to finance, the department shall consider all of the following:

(1) The level of need in the area to be served.

(2) The degree to which the project requires an investment of public financing to move forward, create impact, or be competitive, and the level of need in the area to be served.

(3) The degree to which the project will have a positive economic impact on the underserved community, including by creating or retaining jobs for local residents.

(4) The degree to which the project will participate in state and local health department initiatives to educate consumers on nutrition and promote healthier eating.

(5) Other criteria the department determines to be consistent with the purposes of this act.

(g) Financing made available for projects may be used for any of the following purposes:

(1) Site acquisition and preparation.

(2) Construction and build-out costs.

(3) Equipment and furnishings.

(4) Workforce training or security.

(5) Pre-development costs such as market studies and appraisals.

(6) Energy efficiency measures.

(7) Working capital for first-time inventory and startup costs.

Section 5. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Food

Low Income Households

Agriculture and Industries Department

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