PRINTER'S NO. 683
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
713
Session of
2021
INTRODUCED BY KINSEY, CEPHAS, BURGOS, SANCHEZ, A. DAVIS, LEE,
HILL-EVANS, KIRKLAND, PASHINSKI, D. WILLIAMS, T. DAVIS,
SCHWEYER, GUZMAN, FRANKEL, SHUSTERMAN, SCHLOSSBERG,
PISCIOTTANO, DRISCOLL, SIMS, CIRESI, KINKEAD, INNAMORATO,
GALLOWAY, N. NELSON, ROZZI AND PARKER, MARCH 1, 2021
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
MARCH 1, 2021
AN ACT
Providing for the Pennsylvania Fresh Food Financing Initiative;
and imposing powers and duties on the Department of
Agriculture.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Fresh Food
Financing Initiative Act.
Section 2. Purpose.
The purpose of this act is to establish financing for a State
program designed to increase the availability of fresh and
nutritious food, known as the Pennsylvania Fresh Food Financing
Initiative, by stimulating investment of capital, job creation,
economic vitality and financing for the construction,
rehabilitation or expansion of grocery stores, farmers markets
or other healthy food retail establishments in underserved and
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
low-income or moderate-income communities in this Commonwealth.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"CDFI." A community development financial institution that
is certified by the United States Department of the Treasury
and provides credit and financial services for underserved
communities.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Financing." A loan, grant or loan in which repayment may be
waived if certain conditions or criteria established by the
lender are satisfied.
"Food access organization" or "FAO." A nonprofit
organization with expertise in improving access to healthy food
in underserved communities.
"Grocery store." A for-profit or not-for-profit self-service
retail establishment that primarily sells meat, seafood, fruits,
vegetables, dairy products, dry groceries, household products
and sundries.
"Healthy food retail establishment." The term includes, but
is not limited to, a small-scale store, corner store,
convenience store, neighborhood store, bodega, food hub, mobile
market, farmers market and food aggregation and processing
center.
"Low-income or moderate-income community." A census tract as
reported in the most recently completed decennial census
published by the United States Census Bureau that has a poverty
rate of at least 20% or in which the median family income does
20210HB0713PN0683 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
not exceed 80% of the greater of the Statewide or metropolitan
median family income.
"Program." The Pennsylvania Fresh Food Financing Initiative
established under section 4.
"Program administrator." The department or CDFIs selected by
the department.
"Underserved community." A census tract determined to be an
area with low supermarket access by either the United States
Department of Agriculture as identified in the Food Access
Research Atlas or through a methodology that has been adopted
for use by another governmental or philanthropic healthy food
initiative.
Section 4. Establishment.
The Pennsylvania Fresh Food Financing Initiative is
established.
Section 5. Administration of program.
(a) General rule.--The program shall be administered by the
department in collaboration with the Department of Agriculture,
or CDFIs selected by the department, to improve food access in
this Commonwealth.
(b) CDFIs as program administrator.--CDFIs may apply to
perform the duties of program administrator. The department may
select eligible CDFIs to perform the role of program
administrator. CDFI applicants shall be evaluated under the
eligibility requirements under subsection (c) which also may be
required in rules and regulations or request for proposals
issued by the department. Program administrators shall be
required to enter into a contract with the department.
(c) Eligibility requirements.--CDFI applicants must
demonstrate the following:
20210HB0713PN0683 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) Ability to administer financing programs in
accordance with Federal and State rules and accounting
principles.
(2) Business activity throughout this Commonwealth.
(3) Experience in food-based lending.
(4) Experience leveraging private and philanthropic
funding.
(d) Program administrator duties.--The program administrator
shall:
(1) Raise capital to leverage State funds.
(2) Evaluate projects.
(3) Underwrite and disburse financing to projects.
(4) Establish monitoring and accountability mechanisms
for projects that receive financing.
(5) Report the following information annually to the
department:
(i) The number of projects that receive funding.
(ii) The geographic distribution of the projects.
(iii) The administrative and financing costs of the
program.
(iv) The outcomes, including, but not limited to,
the number and type of jobs created and health
initiatives associated with the program.
(e) Program management.--The program administrator shall
identify and partner with a food access organization to manage
the program. The FAO, in partnership with the program
administrator, shall develop and establish program guidelines
and eligibility criteria to meet the needs of program applicants
and the communities served. The FAO shall conduct outreach and
marketing of the program to the following:
20210HB0713PN0683 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) Food producers.
(2) Retailers.
(3) Business entrepreneurs.
(4) Local governments.
(5) Communities in need of improved access.
(6) Other operators in communities where infrastructure
costs and credit needs are not met by conventional financial
institutions.
(f) Program priority.--The program shall promote local
agricultural products by allowing for priority to be given for
projects producing, aggregating, sourcing and selling
Pennsylvania farmed products, including the department's
Pennsylvania Preferred program. The program may track the sale
of Pennsylvania farmed products through supported retailers.
(g) Program applicant eligibility.--The FAO shall determine
applicant eligibility using maps, data tools and other forms of
market research to ensure projects are supported by the
community. The FAO shall:
(1) Offer grocery stores or healthy food retail
establishments developing in underserved communities
technical assistance and expertise in areas such as in-store
marketing, community engagement and local food procurement.
(2) Facilitate connections between wholesalers, grocers
and other technical assistance providers.
(3) Develop a framework for evaluating community impact.
(h) Administrative or operational costs.--No more than 10%
of the funding in section 7 may be reserved for administrative
and operational costs to manage the program.
Section 6. Financing eligibility.
(a) Eligible projects.--An eligible project for financing
20210HB0713PN0683 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
includes any of the following:
(1) A for-profit business enterprise, including a
corporation, limited liability company, sole proprietor,
cooperative or partnership.
(2) A not-for-profit corporation.
(3) An agricultural cooperative corporation.
(4) A public benefit corporation municipal corporation.
(5) A regional market facility or cooperative.
(b) Eligible uses.--An eligible use for financing includes
any of the following:
(1) Predevelopment costs for project feasibility.
(2) Land assembly, including demolition and
environmental remediation.
(3) Site development.
(4) Infrastructure improvement, including renovation,
new construction or adaptive reuse.
(5) Equipment purchases that improve the availability
and quality of fresh produce.
(6) Funding of debt service.
(7) Innovative food access technology that assists an
existing or new grocery store.
(8) Innovative food access technology that assists the
healthy food efforts of a food retail establishment.
(9) Other healthy food initiatives.
Section 7. Financing.
(a) Establishment of account.--A restricted account is
established in the General Fund and shall be used exclusively
for the program in accordance with this act. The money in the
account is hereby appropriated on a continuing basis to the
department for the purposes of this act.
20210HB0713PN0683 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(b) Transfer.--Beginning July 1, 2021, and each fiscal year
thereafter, the sum of $5,000,000 shall be transferred from the
General Fund to the restricted account established in subsection
(a).
(c) Contributions.--The department may accept gifts,
donations, legacies and other revenues, including Federal
appropriations, for deposit into the restricted account.
Section 8. Effective date.
This act shall take effect in 60 days.
20210HB0713PN0683 - 7 -
1
2
3
4
5
6
7
8
9