The purpose of the proposed rulemaking is to implement Section 500.81, F.S., Healthy Food Financing Initiative, which directs the department to coordinate the use of $500,000 of state financial assistance to construct, rehabilitate, or expand ...

 

DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

Division of Food, Nutrition and Wellness

RULE NOS.:RULE TITLES:

5P-10.001Definitions

5P-10.002Contractor Eligibility and Contract Periods

5P-10.003Management of Program Funds and Reporting

5P-10.004Applicant Qualifications and Project Eligibility Criteria

PURPOSE AND EFFECT: The purpose of the proposed rulemaking is to implement Section 500.81, F.S., Healthy Food Financing Initiative, which directs the department to coordinate the use of $500,000 of state financial assistance to construct, rehabilitate, or expand independent grocery stores, independent supermarkets, convenience stores, and community facilities to increase access to fresh produce and other nutritious foods in underserved and low-income communities. The effect is the establishment of guidelines to achieve this purpose.

SUMMARY: Healthy Food Financing Initiative

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: There are no costs associated with the establishment of this rule as participation in the program is voluntary.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 500.81(8), 570.07(23), FS.

LAW IMPLEMENTED: 500.81, FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Quinn Skinner, 600 S. Calhoun Street, Tallahassee, FL 32399, [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

5P-10.001 Definitions.

For the purposes of this chapter, the definitions in Section 500.81, F.S. and the following shall apply:

(1) Applicant means a for-profit entity, including a convenience store or a fueling station, or a not-for-profit entity, such as a sole proprietorship, partnership, limited liability company, corporation, cooperative, nonprofit organization, nonprofit community development entity, or private university.

(2) Contractor means a nonprofit organization or Florida-based, federally certified community development financial institution that meets the qualifications provided in Rule 5P-10.002, F.A.C., and enters into a contract with the department.

(3) Financially Sound means the ability to assume full financial risk for loans made under this program.

(4) Healthy Food Financing means coordinating the use of grants from any source, federal, state, and private loans from a governmental entity or institutions regulated by a governmental entity, federal tax credits, and other types of financial assistance for the construction, rehabilitation, or expansion of independent grocery stores, supermarkets, community facilities, or other structures to increase access to fresh produce and other nutritious food in underserved communities.

(5) Nonprofit means an organization exempt from income tax under 26 U.S.C. § 501(c)(3) of the Internal Revenue Code.

(6) Unused Funds means funds that have never been issued in the form of a loan, have not been leveraged with other resources for the issuance of a loan, or have not been obligated to a qualified project.

Rulemaking Authority 500.81(8), 570.07(23), F.S. Law Implemented 500.81, F.S. History-New_____.

 

5P-10.002 Contractor Eligibility and Contract Periods.

(1) Through competitive bidding pursuant to Chapter 287, F.S., the department will contract with an eligible entity (i.e., Contractor) to administer the Healthy Food Financing Initiative program in accordance with Section 500.81(3)(b)1, F.S. and the criteria set forth in this chapter.

(2) The Contractor must be a:

(a) Financially sound nonprofit organization experienced in healthy food financing, or

(b) Florida-based federally certified Community Development Financial Institution able to demonstrate the requirements listed in Section 500.81(3)(a)1-4, F.S.

(3) Contract periods and renewals shall be determined as funds are appropriated by the Legislature from the state’s General Revenue Fund for the purpose of this program.

Rulemaking Authority 500.81(8), 570.07(23), F.S. Law Implemented 500.81, F.S. History-New_____.

 

5P-10.003 Management of Program Funds and Reporting.

(1) Program funds shall be granted to the contractor to create a revolving loan fund for the purpose of financing projects during the term of the contract.

(2) The Contractor is authorized to make loans with terms that are amortized for a period in excess of seven (7) years.

(3) The Contractor must report to the department quarterly on the projects funded, the geographic distribution of the projects, the costs of the program, and the outcomes including the number and types of jobs created with a final report due June 30, 2023.

(4) Should the Office of Program Policy Analysis and Government Accountability find the program to be unsuccessful during its review at the end of the initial seven (7) year term of the program, the Contractor must return any unused funds by that time to the department to be reverted back to the state’s General Revenue Fund.

(5) The amount of unused funds to be returned shall be determined by the content of the Contractor’s final report. The department shall invoice the Contractor for all unused funds at the end of the contract period.

Rulemaking Authority 500.81(8), 570.07(23), F.S. Law Implemented 500.81, F.S. History-New_____.

 

5P-10.004 Applicant Qualifications and Project Eligibility Criteria.

(1) Three (3) Applicants will be selected for project financing.

(2) Applicants shall apply for project financing using the application process established by the Contractor.

(3) Applicants shall meet the minimum qualifications specified in Section 500.81(5)(a)-(c), F.S., to be eligible for project financing through the Contractor.

(4) Projects selected by the Contractor for financing must meet the minimum qualifications specified in Section 500.81(6)-(7), F.S.

(a) Should an applicant propose a project within 1,000 feet of an established independent grocery store, independent supermarket, convenience store or other community facility relevant to the applicant’s project, the contractor must provide a right of first refusal to the existing entity for such project.

(b) The 1,000 feet radius shall be measured as the shortest straight line distance from the property line of the existing entity to the property line of the proposed project location.

Rulemaking Authority 500.81(8), 570.07(23), F.S. Law Implemented 500.81, F.S. History-New_____.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Lakeisha Hood, Director, Division of Food, Nutrition and Wellness

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Commissioner of Agriculture Adam H. Putnam

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: July 24, 2017

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 25, 2016