Senate Bill 2706

AN ACT TO CREATE THE HEALTHY FOOD RETAIL ACT; TO PROVIDE THAT, TO THE EXTENT FUNDS ARE AVAILABLE, THE DEPARTMENT OF HUMAN SERVICES, IN COOPERATION WITH PUBLIC AND PRIVATE SECTOR PARTNERS, SHALL ESTABLISH A PILOT PROGRAM THAT PROVIDES GRANTS AND LOANS TO HEALTHY FOOD RETAILERS THAT INCREASE ACCESS TO FRESH FRUITS AND VEGETABLES AND OTHER AFFORDABLE HEALTHY FOOD IN UNDERSERVED COMMUNITIES; TO PROVIDE THAT THE DEPARTMENT MAY CONTRACT WITH ONE OR MORE QUALIFIED NONPROFIT ORGANIZATIONS OR COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS TO ADMINISTER THE PROGRAM DESCRIBED IN THIS ACT THROUGH A PUBLIC-PRIVATE PARTNERSHIP, TO RAISE MATCHING FUNDS, MARKET THE PROGRAM STATEWIDE, EVALUATE APPLICANTS, MAKE AWARD DECISIONS, UNDERWRITE LOANS, AND MONITOR COMPLIANCE AND IMPACT; TO PROVIDE THAT THE PROGRAM SHALL PROVIDE FUNDING ON A COMPETITIVE, ONE-TIME BASIS AS APPROPRIATE FOR THE ELIGIBLE PROJECT; TO PROVIDE THE TYPES OF PROGRAMS AND PROJECTS FOR WHICH FUNDING MAY BE PROVIDED; TO PROVIDE THE CRITERIA THAT MUST BE MET FOR FUNDING UNDER THE PROGRAM; TO PROVIDE THAT THE DEPARTMENT SHALL ESTABLISH PROGRAM BENCHMARKS AND REPORTING PROCESSES TO MAKE CERTAIN THAT THE PROGRAM BENEFITS BOTH RURAL AND URBAN COMMUNITIES IN MISSISSIPPI; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. This act shall be known as the "Healthy Food Retail Act."

SECTION 2. The Legislature finds the following:

(a) When fresh fruits and vegetables and other healthy foods are not easily available or affordable, people, particularly low-income families, children and the elderly, face serious barriers to eating a healthy diet. Research shows that residents of low-income, minority and rural communities are most often affected by poor access to supermarkets and other retailers selling healthy food, as well as by high rates of obesity.

(b) Obesity, which results from poor diet and physical inactivity, is the fastest growing cause of disease and death in America. Mississippi has one of the highest rates of obesity nationwide, putting growing numbers of Mississippi adults and children at risk for developing heart disease, type 2 diabetes, hypertension, certain cancers and other health problems.

(c) Increasing access to retail food outlets that sell fresh fruits, vegetables and other healthy food is an important strategy for fighting the obesity epidemic and improving health. Studies have shown that people with better access to supermarkets and fresh produce tend to have healthier diets and lower levels of obesity.

(d) Developing quality retail food outlets also creates jobs, expands markets for Mississippi farmers, and supports economic vitality in underserved communities.

(e) The program established pursuant to this act is intended to provide a dedicated source of financing for healthy food retailers operating in underserved communities in Mississippi, in both urban and rural areas; to increase access to affordable healthy food so as to improve diets and health; to promote the sale and consumption of fresh fruits and vegetables, particularly those that are Mississippi grown; and to support expanded economic opportunities in low-income and rural communities.

SECTION 3. As used in this act:

(a) "Department" means the Department of Human Services.

(b) "Funding" means grants, loans, or a combination of grants and loans.

(c) "Healthy food retailers" means for-profit or not-for-profit retailers that sell high quality fresh fruits and vegetables at competitive prices, including, but not limited to, supermarkets, grocery stores and farmers' markets.

(d) "Pilot program" means a public-private partnership established in six (6) counties selected by the Department of Health to provide a dedicated source of financing for food retailers that increase access to fresh fruits and vegetables and other affordable healthy food for Mississippi residents managed by the Department of Human Services.

(e) "Underserved community" means a geographic area that has limited access to healthy food retailers and is located in a lower-income or high-poverty area, or an area that is otherwise determined to have serious healthy food access limitations.

SECTION 4. (1) To the extent funds are available, the Department of Human Services, in cooperation with public and private sector partners, shall establish a pilot program that provides grants and loans to healthy food retailers that increase access to fresh fruits and vegetables and other affordable healthy food in underserved communities.

(2) The department may contract with one or more qualified nonprofit organizations or community development financial institutions to administer the pilot program described in this act through a public-private partnership, to raise matching funds, market the program statewide, evaluate applicants, make award decisions, underwrite loans and monitor compliance and impact. The department and its partners shall coordinate with complementary nutrition assistance and education programs.

(3) The pilot program shall provide funding on a competitive, one-time basis as appropriate for the eligible project.

(4) (a) The pilot program may provide funding for projects such as:

(i) New construction of supermarkets and grocery stores.

(ii) Store renovations, expansion and infrastructure upgrades that improve the availability and quality of fresh produce.

(iii) Farmers' markets and public markets, food cooperatives, mobile markets and delivery projects and distribution projects that enable food retailers in underserved communities to regularly obtain fresh produce.

(iv) The installation of equipment at farmers' markets to facilitate the utilization of electronic benefit transfer (EBT) cards at farmers' markets.

(v) Other projects that create or improve healthy food retail outlets that meet the intent of this chapter as determined by the department.

(b) Funding made available for projects included in paragraph (a) of this subsection may be used for the following purposes:

(i) Site acquisition and preparation.

(ii) Construction costs.

(iii) Equipment and furnishings.

(iv) Workforce training.

(v) Security.

(vi) Certain predevelopment costs such as market studies and appraisals.

(vii) Working capital for first-time inventory and start-up costs.

(5) An applicant for funding may be a for-profit or a not-for-profit entity, including, but not limited to, a sole proprietorship, partnership, limited liability company, corporation, cooperative, nonprofit organization, nonprofit community development entity, university or governmental entity.

(6) In order to be considered for funding, an applicant shall meet the following criteria:

(a) The project for which the applicant seeks funding shall benefit an underserved community.

(b) The applicant shall demonstrate a meaningful commitment to sell fresh fruits and vegetables, according to a measurable standard established by the department.

(c) Generally, the applicant shall accept Food Stamps (Supplemental Nutrition Assistance Program) and WIC (Special Supplemental Nutrition Program for Women, Infants and Children) benefits. For categories of applicants that are not eligible to accept Food Stamps or WIC benefits, an alternative standard shall be established by the department to demonstrate a meaningful commitment to make healthy food affordable to low-income households.

(7) Applicants shall be evaluated on the following criteria in order to determine the funding awarded:

(a) Demonstrated capacity to successfully implement the project, including the applicant's relevant experience and the likelihood that the project will be economically self-sustaining.

(b) The ability of the applicant to repay debt.

(c) The degree to which the project requires an investment of public funding to move forward, create impact or be competitive, and the level of need in the area to be served. Additional factors that will improve or preserve retail access for low-income residents, such as proximity to public transit lines, also may be taken into account.

(d) The degree to which the project will promote sales of fresh produce, particularly Mississippi-grown fruits and vegetables.

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

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

(8) The department shall establish program benchmarks and reporting processes to make certain that the program benefits the communities in the program area. The department shall likewise establish monitoring and accountability mechanisms for projects receiving grants or loans, such as tracking fruit and vegetable sales data.

(9) The department shall prepare and submit an annual report to the Legislature on any projects funded and outcome data.

(10) The department shall establish rules for the implementation of the act.

SECTION 5. Funds described in this act, to the extent practicable, may be used to leverage other funding, including, but not limited to, New Markets Tax Credits, federal and foundation grant programs, incentives available to designated Enterprise Zones or Renewal Communities, operator equity and funding from private sector financial institutions under the federal Community Reinvestment Act.

SECTION 6. This act shall take effect and be in force from and after July 1, 2012.