Texas Senate Bill SB403

Texas 2013 - 83rd Regular

Caption

Relating to the establishment of a community development grocery store and healthy corner store revolving loan fund program.

Impact

The bill introduces significant amendments to the Agriculture Code, mandating the state to support and facilitate loans to community development financial institutions (CDFIs). These institutions will serve as the backbone of the loan program, working directly with entities looking to establish or expand grocery stores in food deserts. The program also emphasizes self-funding strategies, ensuring the sustainability of the loan fund over time. By requiring that the grocery stores allocate specific amounts of retail space to fresh produce and other healthy foods, the bill aims to ensure that these stores meet the nutritional needs of the communities they serve.

Summary

SB403 establishes a community development grocery store and healthy corner store revolving loan fund program in Texas. The primary goal of this legislation is to revitalize areas identified as food deserts—regions where access to healthy and affordable food is limited. By creating a structured loan program, the bill aims to foster the establishment of grocery stores and corner stores that meet specified criteria in underprivileged areas. This initiative reflects a targeted approach to combat food insecurity and promote better nutritional access for low-income residents.

Contention

While SB403 represents a proactive measure in addressing food poverty, it has also sparked discussions regarding its implementation. Critics may raise concerns about the adequacy of oversight of the loans given to small local businesses, especially regarding long-term compliance and financial monitoring. Additionally, there could be debates surrounding the balance between government assistance and the private market's role in alleviating food deserts. Supporters argue that this legislation is crucial for systemic change, while opponents may question the effectiveness of government intervention in local economies.