,i #aacth ,,congress #ast ,session ,h4 ,r4 #bcdc ,,in ,,the ,,house ,,of ,,representatives ,june #ab1 #bjac ,ms4 ,schwartz 7for herself1 ,ms4 ,fudge1 ,mr4 ,blumenauer1 and ,ms4 ,pingree of ,maine7 introduced the following bill2 which was referred to the ,committee on ,agriculture ,a ,,bill ,to amend the ,department of ,agriculture ,reorganization ,act of #aiid to establish in the ,department of ,agriculture a ,healthy ,food ,financing ,initiative4 #a4 ,short title ,this ,act may be cited as the ,healthy ,food ,financing ,initiative4 #b4 ,findings ,congress finds that-- 7#a7 7,a7 the ,united ,states faces an obesity epidemic in which #cj4e percent of children ages #aj through #ag are overweight or obese2 7,b7 the obesity epidemic contributes to increasing rates of chronic illness1 including diabetes1 heart disease1 and cancer2 and 7,c7 the obesity epidemic cost the ,united ,states #adg1jjj1jjj in medical expenses in #bjjh1 and this cost is expected to rise in the future2 7#b7 the ,reinvestment ,fund estimates that almost #be1jjj1jjj people in the ,united ,states live in low-income communities with limited access to supermarkets and grocery stores2 7#c7 more than #acj studies show that-- 7,a7 access to healthy food is particularly a problem in hundreds of low-income1 rural1 and urban communities1 as well as communities of color in the ,united ,states2 and 7,b7 the opportunity to access healthy food is linked to lower levels of obesity1 diabetes1 and other food-related chronic illnesses1 leading to better health outcomes2 7#d7 7,a7 children from low-income families are twice as likely to be overweight as children from higher income families2 and 7,b7 ,african-,american and ,hispanic children are more likely than ,caucasian children to be obese2 7#e7 studies show that when healthy foods are available1 people will increase consumption of fruits and vegetables2 7#f7 leading public health experts1 including the ,centers for ,disease ,control and ,prevention1 the ,american ,heart ,association1 the ,institute of ,medicine1 and the ,american ,public ,health ,association1 agree that providing improved access to supermarkets and grocery stores is needed to improve public health and prevent obesity2 7#g7 developing high-quality fresh food retail outlets creates jobs1 expands markets for agricultural producers in the ,united ,states1 and supports economic vitality in underserved communities2 7#h7 7,a7 supermarkets and grocery stores often face barriers to opening stores in food deserts2 7,b7 the supermarket industry operates on an historically thin profit margin2 7,c7 according to the #bjaa ,national ,grocers ,association ,independent ,grocers ,survey1 the average net profit margin before taxes for independent grocers in #bjaj was #a4jh percent2 7,d7 urban operators face barriers1 including-- 7i7 increased real estate costs or limited availability of suitable commercial real estate in the community2 7ii7 increased employee training needs and costs2 7iii7 elevated security expenses2 and 7iv7 often zoning restrictions2 7,e7 supermarkets and grocery stores in rural food deserts also face barriers1 including increased food delivery costs due to distance from distributers1 dispersed customer base1 and low volume2 and 7,f7 access to affordable capital is a significant problem for both rural and urban projects2 7#i7 by providing seed capital and technical assistance1 the ,federal ,government1 through time-limited investments1 can-- 7,a7 attract private sector investment to create and retain much-needed jobs2 and 7,b7 provide long-term1 sustainable solutions to the decades-old problem of limited access to healthy food in underserved1 low-income urban and rural communities2 and 7#aj7 legislation establishing a national fund modeled on the successful ,pennsylvania ,fresh ,food ,financing ,initiative will help address the obesity epidemic while also creating much-needed jobs and economic revitalization1 and solving the healthy food access problem in hundreds of communities across the ,united ,states4 #c4 ,healthy ,food ,financing ,initiative 7a7 ,in general ,subtitle ,d of title ,,ii of the ,department of ,agriculture ,reorganization ,act of #aiid 7#g ,u4,s4,c4 #fiea et seq47 is amended by adding at the end the following new section3 #bdb4 ,healthy ,food ,financing ,initiative 7a7 ,purpose ,the purpose of this section is to enhance the authorities of the ,secretary to support efforts to provide access to healthy food by establishing an initiative to improve access to healthy foods in underserved areas1 to create and preserve quality jobs1 and to revitalize low-income communities by providing loans and grants to eligible fresh1 healthy food retailers to overcome the higher costs and initial barriers to entry in underserved areas4 7b7 ,definitions ,in this section3 7#a7 ,community development financial institution ,the term community development financial institution has the meaning given the term in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#b7 ,initiative ,the term ,initiative means the ,healthy ,food ,financing ,initiative established under subsection 7c77#a74 7#c7 ,national fund manager ,the term national fund manager means a community development financial institution that is-- 7,a7 in existence on the date of enactment of this section2 and 7,b7 certified by the ,community ,development ,financial ,institution ,fund of the ,department of ,treasury to manage the ,initiative for purposes of-- 7i7 raising private capital2 7ii7 providing financial and technical assistance to partnerships2 and 7iii7 funding eligible projects to attract fresh1 healthy food retailers to underserved areas1 in accordance with this section4 7#d7 ,partnership ,the term partnership means a regional1 ,state1 or local public-private partnership that-- 7,a7 is organized to improve access to fresh1 healthy foods2 7,b7 provides financial and technical assistance to eligible projects2 and 7,c7 meets such other criteria as the ,secretary may establish4 7#e7 ,perishable food ,the term perishable food means a staple food that is fresh1 refrigerated1 or frozen4 7#f7 ,quality job ,the term quality job means a job that provides wages and other benefits comparable to1 or better than1 similar positions in existing businesses of similar size in similar local economies4 7#g7 ,staple food 7,a7 ,in general ,the term staple food means food that is a basic dietary item4 7,b7 ,inclusions ,the term staple food includes-- 7i7 bread2 7ii7 flour2 7iii7 fruits2 7iv7 vegetables2 and 7v7 meat4 7c7 ,initiative 7#a7 ,establishment ,the ,secretary shall establish an initiative to achieve the purpose described in subsection 7a7 in accordance with this subsection4 7#b7 ,implementation 7,a7 ,in general 7i7 ,in general ,in carrying out the ,initiative1 the ,secretary shall provide funding to entities with eligible projects1 as described in subparagraph 7,b71 subject to the priorities described in subparagraph 7,c74 7ii7 ,use of funds ,funds provided to an entity pursuant to clause 7i7 shall be used-- 7,i7 to create revolving loan pools of capital or other products to provide loans to finance eligible projects or partnerships2 7,,ii7 to provide grants for eligible projects or partnerships2 7,,iii7 to provide technical assistance to funded projects and entities seeking ,initiative funding2 and 7,,iv7 to cover administrative expenses of the national fund manager in an amount not to exceed #aj percent of the ,federal funds provided4 7,b7 ,eligible projects ,subject to the approval of the ,secretary1 the national fund manager shall establish eligibility criteria for projects under the ,initiative1 which shall include the existence or planned execution of agreements-- 7i7 to expand or preserve the availability of staple foods in underserved areas with moderate- and low-income populations by maintaining or increasing the number of retail outlets that offer an assortment of perishable food and staple food items1 as determined by the ,secretary1 in those areas2 and 7ii7 to accept benefits under the supplemental nutrition assistance program established under the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaa et seq474 7,c7 ,priorities ,in carrying out the ,initiative1 priority shall be given to projects that-- 7i7 are located in severely distressed low-income communities1 as defined by the ,community ,development ,financial ,institutions ,fund of the ,department of ,treasury2 and 7ii7 include #a or more of the following characteristics3 7,i7 ,the project will create or retain quality jobs for low-income residents in the community4 7,,ii7 ,the project supports regional food systems and locally grown foods1 to the maximum extent practicable4 7,,iii7 ,in areas served by public transit1 the project is accessible by public transit4 7,,iv7 ,the project involves women- or minority-owned businesses4 7,v7 ,the project receives funding from other sources1 including other ,federal agencies4 7,,vi7 ,the project otherwise advances the purpose of this section1 as determined by the ,secretary4 7d7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out this section #abe1jjj1jjj1 to remain available until expended4 4 7b7 ,conforming amendment ,section #bif7;b7 of the ,department of ,agriculture ,reorganization ,act of #aiid 7#g ,u4,s4,c4 #gjad7;b77 is amended-- 7#a7 in paragraph 7#f71 by striking or at the end2 7#b7 in paragraph 7#g71 by striking the period at the end and inserting 2 or2 and 7#c7 by adding at the end the following new paragraph3 7#h7 the authority of the ,secretary to establish and carry out the ,health ,food ,financing ,initiative under section #bdb4 4