(a) For purposes of this section, the following definitions shall apply:

(1) “Corner store” means a small-scale store or grocery store, either an independent store or a chain store, that sells a limited selection of foods and other products, and that is located in a low-income area or low-access area in a rural, urban, or suburban area. “Corner store” includes, among others, stores that are not located on a corner and stores commonly referred to as convenience stores or neighborhood stores.

(2) “Low-access area” means a census tract in which there are significant barriers to accessing a supermarket or large grocery store, which may include, but is not limited to, a census tract with at least 500 persons or 33 percent of the population that lives more than one mile, for nonrural areas, or more than 10 miles, for rural areas, from a supermarket or large grocery store.

(3) “Low-income area” means a census tract in which the income of at least 20 percent of the population is at or below the federal poverty level by family size, or if the median family income of the population is at or below 80 percent of the median family income of surrounding census tracts.

(4) “Minimally processed prepared food” means food that has not been physically or chemically processed in a way that fundamentally alters the raw product, and food that has been processed only to separate the whole, intact food into component parts.

(5) “Qualified entity” means any of the following:

(A) A small business or corner store.

(B) A city, county, or city and county with representative low-income areas that contain small businesses or corner stores.

(C) A nonprofit entity that works with low-income populations or in low-income areas or low-access areas, and that would apply for grants on behalf of a small business or corner store or a collection of small businesses or corner stores or would sell California-grown fresh fruits, nuts, vegetables, and minimally processed prepared foods directly in low-income areas or low-access areas.

(6) “Recipient” means a small business, corner store, or nonprofit entity that is provided funds pursuant to subdivision (c).

(7) “Small business” means a small business, as defined in Section 14837 of the Government Code, that is authorized to accept nutrition benefits from any of the programs listed in paragraphs (1) to (6), inclusive, of subdivision (b) of Section 49012, and is located in a low-income area or low-access area.

(b) The Healthy Stores Refrigeration Grant Program shall be created in the department upon the appropriation of funds, including from a successful application of federal grant funding, if available, by the Legislature for purposes of the Healthy Stores Refrigeration Grant Program.

(c) (1) Upon an appropriation of funds as specified in subdivision (b), the department shall administer the Healthy Stores Refrigeration Grant Program and, pursuant to the program, award grants to qualified entities. If a city, county, or city and county is awarded a grant pursuant to this subdivision, it shall provide grant funds to applicant small businesses and corner stores that are located in low-income areas or low-access areas.

(2) When awarding grants, the department shall give priority based on, but not limited to, the prevalence of any of the following in the communities that would be served by the qualified entity:

(A) People who are eligible for, or are receiving, nutrition benefits from any of the programs listed in paragraphs (1) to (6), inclusive, of subdivision (b) of Section 49012.

(B) People with diabetes, obesity, or other diet-related illnesses.

(C) Low availability of and access to fresh fruits, nuts, and vegetables.

(3) When awarding grants, the department shall consider giving priority to qualified entities based on, but not limited to, demonstrated efficiency and capability in the administration of a consumer incentive program, as defined in subdivision (a) of Section 49012.

(4) The department may establish regulations, minimum standards, funding schedules, and procedures for awarding grants to qualified entities, and may adopt any other regulations to implement and administer the Healthy Stores Refrigeration Grant Program.

(d) A recipient shall be required to do all of the following:

(1) Use the grant funds provided pursuant to subdivision (c) to purchase an energy-efficient refrigeration unit or units.

(2) Stock the refrigeration unit or units purchased with Healthy Stores Refrigeration Grant Program grant funds with California-grown fresh fruits, nuts, vegetables, and minimally processed prepared foods.

(3) Offer for sale California-grown fresh fruits, nuts, vegetables, and minimally processed prepared foods.

(e) A recipient shall be subject to reporting and auditing requirements, as determined by the department.

(f) A city, county, city and county, or nonprofit entity that is awarded a grant pursuant to paragraph (1) of subdivision (c) may use up to 10 percent of Healthy Stores Refrigeration Grant Program grant funds for technical assistance.

(g) Sections 9 and 42971 do not apply for a violation of this section or any regulation adopted pursuant to paragraph (4) of subdivision (c).

(Amended by Stats. 2019, Ch. 31, Sec. 5. (SB 85) Effective June 27, 2019.)