Senate Bill 2547

AN ACT TO AMEND SECTIONS 57-10-705 AND 57-10-707, MISSISSIPPI CODE OF 1972, WHICH ARE A PART OF THE SMALL BUSINESS AND GROCER INVESTMENT ACT, TO REVISE THE DEFINITION OF THE TERM "UNDERSERVED COMMUNITY;" TO REMOVE A PROVISION THAT PROHIBITS THE USE OF STATE FUNDS AS A SOURCE OF FUNDING FOR A FOOD RETAILER UNDER THE PROGRAM; TO REVISE THE ELIGIBILITY REQUIREMENTS FOR APPLICANTS AND PROJECTS UNDER THE PROGRAM; TO AUTHORIZE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO UTILIZE A CERTAIN AMOUNT OF THE FUNDS AVAILABLE TO THE PROGRAM FOR COST OF ADMINISTERING THE PROGRAM; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 57-10-705, Mississippi Code of 1972, is amended as follows:

57-10-705. As used in this article:

(a) "Agency" means the Mississippi Development Authority.

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

(c) "Healthy food retailers" means retailers that sell quality fresh fruits and vegetables, in natural and/or frozen form, including, but not limited to, supermarkets, grocery stores, convenience stores and farmers' markets.

(d) "Program" means technical assistance and a public-private partnership established in the state by the Mississippi Development Authority to identify and/or provide a dedicated source of funding and other financing for food retailers that increase access to fresh fruits and vegetables, in natural and/or frozen form, and other affordable healthy food for Mississippi residents overseen by the Mississippi Development Authority.

(e) "Underserved community" means a geographic area that has limited access to healthy food retailers, or an area that is otherwise determined to have serious healthy food access limitations, * * * based on United States Department of Agriculture data, data from The Reinvestment Trust and/or equivalent methodologies.

SECTION 2. Section 57-10-707, Mississippi Code of 1972, is amended as follows:

57-10-707. (1) To the extent funds are available, the Mississippi Development Authority, in cooperation with public and private sector partners, is authorized to establish a program modeled on comparable initiatives throughout the nation that provides grants and direct and/or forgivable loans and/or promotes access to healthy food retailers that increase access to fresh fruits and vegetables, in natural and/or frozen form, and other affordable healthy food in underserved communities.

(2) The agency may contract with one or more qualified nonprofit organizations or community development financial institutions to administer the program described in this article 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 agency and its partners shall coordinate with complementary nutrition assistance and education programs. Nonprofit organizations or community development financial institutions that the agency contracts with shall have expertise in managing similar types of programs.

(3) Any funding provided under the program shall be provided on a competitive, one-time basis as appropriate for the eligible project. * * *

(4) (a) The program may provide technical assistance and/or funding for projects such as:

(i) New construction of healthy food retailers.

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

(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 initial inventory and costs.

(5) An applicant for funding may include, but not be limited to, a sole proprietorship, partnership, limited liability company, corporation or cooperative.

(6) In order to be considered for funding, an applicant and/or a project shall meet the following eligibility 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, in natural and/or frozen form, according to a measurable standard established by the agency.

(c) If the project is a grocery store or supermarket, at least thirty percent (30%) of the food retail space will be utilized for the sale of perishable foods which shall include, but not be limited to, dairy products, fresh produce, fresh meats, poultry and fish in fresh or frozen form.

(d) If the project is a convenience store, the funding will be used for refrigeration, displays, or one time capital expenditures for the promotion and sale of perishable foods, which shall include, but not be limited to, dairy products, fresh produce, fresh meats, poultry and fish in fresh or frozen form.

(7) Applicants shall be evaluated on the following financial 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 that the agency determines to be consistent with the purposes of this article.

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

(9) The agency shall prepare and submit an annual report to the Legislature on any projects funded and outcome data that includes the health impact of the program.

(10) The agency shall establish rules for the implementation of this article.

(11) The agency may utilize not more than ten percent (10%) of the funds available to the program for cost that it incurs in administering the program.

SECTION 3. This act shall take effect and be in force from and after July 1, 2015.