SB217 Alabama 2023 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2023

Title

Relating to underserved communities; to amend Sections 41-23-150, 41-23-151, 41-23-152, and 41-23-153, Code of Alabama 1975, to change the name of the Healthy Food Financing Fund; to further provide for the types of facilities where monies can be used; to further provide for the ways monies can be used; and to limit the sources of funding available under the program.

Summary

SB217 would rename the Healthy Food Financing Fund to the Healthy Food Fund, require grants-only financing for improving grocery stores and food providers in underserved communities, and expand how funds can be used and who can receive them.

What This Bill Does

It changes the program name and shifts financing to grants for building, renovating, expanding, or building out grocery stores or food resource providers in underserved, low- or moderate-income areas. It sets up a statewide grant program managed by the Department of Economic and Community Affairs (potentially with private partners) with guidelines, evaluation, underwriting, grant disbursement, and annual reporting on projects and outcomes. It broadens who can apply (including for-profit and nonprofit entities) and lists eligible uses such as construction, equipment, energy efficiency, workforce development, and working capital, along with performance and reporting requirements and local hiring provisions.

Who It Affects

• Retailers and food resource providers (grocery stores, food banks/pantries, mobile food resources) in underserved communities that would seek grants to start, expand, or improve facilities.
• Residents of urban and rural underserved communities who would benefit from greater access to fresh, nutritious foods and potential job opportunities.
• Public and private partners (department, nonprofits, community development financial institutions) that administer, fund, or oversee the program.
• Government and state agencies (e.g., Alabama Department of Economic and Community Affairs) responsible for guidelines, monitoring, and annual reporting.

Key Provisions

• §41-23-150: Rename the article toHealthy Food Financing Funding Act and state purpose to provide financing grants to open, renovate, or expand grocery stores or food resource providers in underserved, low- or moderate-income areas.
• §41-23-151: Define key terms (Department, Food Resource Provider, Financing, Grocery Store, Low Income Area, Moderate Income Area, Underserved Community) and describe who can be eligible as an applicant and what constitutes an eligible project.
• §41-23-152: Establish the Healthy Food Financing Fund (renamed in practice to Healthy Food Fund) and state that monies shall be used to expand access to nutritious foods; require the fund to be used, to the extent practicable, to leverage other financing and specify that no less than 25% of funds be expended as grants or forgivable loans.
• §41-23-153: Create and govern the financing grant program; authorize use of public-private partnerships; set guidelines, evaluation, underwriting, disbursement, and monitoring; cap administrative costs at 10% unless funded from other budgets or in-kind resources; require annual reporting on projects, geography, costs, administration, and health/economic outcomes; outline eligible projects and uses (construction, renovations, equipment, workforce training, energy efficiency, working capital, etc.); specify applicant requirements and conditions (capacity to implement, ability to repay debt, stock fresh produce for at least five years, data reporting, local hiring); establish project selection criteria (need, public financing level, economic impact, health initiative alignment); allow the department to recapture unawarded/unexpended funds and reallocate them; set effective date as the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.