I've seen this before in other cities which have have shut down private and church charities for the homeless. The premise was that they cannot hand out food because the food had not been approved by a City Health Inspector. Therefore it may be harmful. How it could be more harmful than eating out of a dumpster which some homeless do regularly was not explained.
As far as panhandlers, there is some legitimate concern about them. They have been known to literally attack, that is mug, people for a 'donation'. Also, they tend to block traffic and enter the road which makes them a safety hazard both for themselves and for commuters. I've have seen them banging on car windows and trying to open doors of cars for a 'contribution'. And of course, there is the age old scam that as soon as someone opens their wallet or purse to give a dollar, they grab the whole thing and run. This is very common.
The idea that homeless want food, is most often not the case. There are places around most cities where homeless can eat for free. They don't want food. They want cash, and only cash. If you offer them a sandwich most of them will throw in on the ground. "I don't want no damn sammich bitch! Gib me some money dammit!" is a common reaction.
The question is how this will be enforced. Many homeless people consider jail to be a hotel, with food, running water, AC, and a real bed. So there is no real way to 'punish' them. I mean a month or two in jail to them is like, so what? It is not like they have anything else to do.
