Healthful food financing program reconsidered, passed

A financing program to improve access to healthful foods in underserved communities was reconsidered and passed by lawmakers May 18.

LB200, introduced by Omaha Sen. Brenda Council, directs the Rural Development Commission to create a financing program to increase access to fresh fruits, vegetables and other nutritional foods in low-income areas that have limited access to healthful food retailers.

Projects eligible for financing include new construction of grocery retail structures, grocery store renovation, expansion and infrastructure upgrades, establishment of farmers markets, community gardens, mobile markets and delivery projects that would increase capacity of food retailers to obtain fresh produce.

Qualifying applicants must provide regular offerings of fruits and vegetables and accept benefits through the Supplemental Nutrition Assistance Program and the Special Supplemental Nutrition Program for Women, Infants and Children. Applicants must demonstrate how their projects will be implemented, a need for public financing, how incurred debt will be repaid, the extent to which the project will provide new markets for Nebraska-grown food items and the degree to which the project will have a positive economic impact on the underserved community.

The bill creates the Nebraska Healthy Foods Financing Initiative Cash Fund, which is funded with annual transfers of $150,000 from the general fund. To provide additional monies to offset the general fund transfers, the bill reduces the maximum tax credits offered under the Community Development Assistance Act from $350,000 to $200,000.

LB200 fell three votes short of final reading approval on May 12 and Omaha Sen. Brad Ashford filed a motion to reconsider the vote. According to legislative rules, motions to reconsider bills that fail on final reading require 30 votes.

Ashford urged the body to support his motion and said the Legislature traditionally has valued legislation that promotes access to healthful foods.

Council said recent research on the prevalence of food insecure areas in Nebraska suggest that LB200 could be used to increase healthful food choices and help decrease the number of people moving away from areas due to inadequate food access.

“With a minimal investment, we could make a significant impact on increasing healthy food choices,” Council said.

Enacting LB200 also could leverage funding offered under the federal Healthy Food Financing Initiative, Council said, which will provide $400 million to bring food retailers to underserved areas.

Fullerton Sen. Annette Dubas spoke in favor of the reconsideration motion and the underlying bill. The citizens of Wolbach recently opened a member-owned grocery store to provide grocery access, she said, and LB200 could aid similar programs in other communities.

“There is a growing demand and support for these kinds of efforts,” Dubas said.

Lawmakers voted 30-18 to reconsider the final reading vote on LB200 and voted 30-16 to approve the bill.