By: Zaffirini, West S.B. No. 1590
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a Texas grocery access investment
fund program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 2, Agriculture Code, is amended by adding
Chapter 26 to read as follows:
CHAPTER 26. TEXAS GROCERY ACCESS INVESTMENT FUND
Sec. 26.001. DEFINITIONS. In this chapter:
(1)"Financing" means loans and grants and/or
forgivable loans.
(2)"Fund" means the Texas grocery access
investment fund established by this chapter.
(3)"Grocery store" means a for-profit or
not-for profit self-service retail establishment that primarily
sells meat, seafood, fruits, vegetables, dairy products, dry
groceries, household products, and sundries.
(4)"Low Income area" means a census tract (as
reported in the most recently completed decennial census published
by the United States Bureau of the Census) that has a poverty rate
of at least 20 percent or in which the median family income does not
exceed 81 percent of the greater of the statewide or metropolitan
median family income.
(5)"Moderate Income area" means a census
tract in which the median family income is between 81 and 95 percent
of the area median family income.
(6)"Program" means the Texas grocery access
investment fund program authorized by this chapter.
(7)"Supplemental nutrition assistance
program" means the nutritional assistance program formerly
referred to as the food stamp program.
(8)"Underserved Community" means a census
tract determined to be an area with low supermarket access by either
the U.S. Department of Agriculture (USDA), as identified in the
USDA's Food Access Research Atlas, or through a methodology that
has been adopted for use by another governmental or philanthropic
healthy food initiative.
(9)"WIC program" means the federal special
supplemental nutrition program for women, infants, and children
authorized by 42 U.S.C. Section 1786.
Sec. 26.002. TEXAS GROCERY ACCESS INVESTMENT FUND PROGRAM.
(a) The Texas Department of Agriculture, in cooperation
with public and private sector partners, shall establish the Texas
Grocery Access Investment Fund program to provide Financing to
construct, rehabilitate or expand grocery stores in Underserved
Communities in urban and rural Low and Moderate Income Areas.
(b) The Texas Grocery Access Investment Fund shall be
comprised of money appropriated by the legislature, as well as
federal, state, or private grants or loans, federal tax credits, or
other type of financial assistance, for the construction or
expansion of grocery stores to expand access to fresh produce and
other nutritious foods in Underserved Communities.
(c) Monies in the Fund shall be expended upon appropriation
by the Legislature, and shall be used, to the extent practicable, to
leverage other forms of financing. No less than 25 percent of the
monies in the Fund shall be expended in the form of grants or
forgivable loans.
Sec. 26.003. ADMINISTRATION OF THE TEXAS GROCERY ACCESS
INVESTMENT FUND. (a) The Texas Department of Agriculture shall
contract with one or more qualified nonprofit organizations or
community development financial institutions to administer this
program through a public-private partnership. The nonprofit
organizations or community development financial institution will
establish program guidelines, raise matching funds, promote the
program statewide, evaluate applicants, underwrite and disburse
grants and loans, and monitor compliance and impact. The Texas
Department of Agriculture shall develop rules, regulations, or
other procedures to carry out the program to meet the intent of this
Chapter. No more than 10 percent of the monies in the Fund shall be
reserved for administrative and operational costs to manage the
program, unless those costs are provided for from other budgets or
in-kind resources.
(b) The Texas Department of Agriculture shall establish
monitoring and accountability mechanisms for projects receiving
Financing and shall report annually to the Legislature on the
projects funded, the geographic distribution of the projects, the
costs of startup and administering the program, and the outcomes,
including the number and type of jobs created and health impact
associated with the program.
(c) Project eligibility for Financing. The Texas Department
of Agriculture shall create eligibility guidelines and provide
Financing through an application process. Projects must be located
in an Underserved Community and primarily serve Low or Moderate
Income Areas. Projects eligible for financing are:
(1) Construction of new grocery stores and
(2) Store renovations, expansion, and infrastructure
upgrades that improve the availability and quality of fresh produce
and other healthy foods.
(d) Qualifications for receiving Financing. An applicant
for Financing may be a for-profit or not-for profit entity,
including but not limited to, a sole proprietorship, partnership,
limited liability company, corporation, cooperative, nonprofit
organization, nonprofit community development entity, university,
or government entity. An applicant for Financing must:
(1) Demonstrate the capacity to successfully
implement the project and the likelihood that the project will be
economically self-sustaining;
(2) Demonstrate the ability to repay the debt; and
(3) Agree, for period of at least [five] years, to
comply with the following conditions:
(4) To accept Supplemental Nutrition Assistance
Program (SNAP) benefits.
(5) To apply to accept Special Supplemental Nutrition
Program for Women, Infants and Children (WIC) benefits and accept
WIC benefits, if approved.
(6) To allocate at least 30 percent of food retail
space for the sale of perishable foods, which may include fresh or
frozen dairy, fresh produce, whole grains, fresh meats, poultry,
and fish.
(7) To comply with all data collection and reporting
requirements established by the Texas Department of Agriculture.
(8) The degree to which the entity's proposed grocery
store would promote the sale of fresh produce, including
Texas-grown fruits and vegetables; and Texas-raised fresh meat,
poultry and seafood products.
(9) To promote the hiring of local residents.
(e) Criteria for selecting projects for Financing. In
determining which qualified projects to finance, the Texas
Department of Agriculture shall consider:
(1) The level of need in the area to be served;
(2) The degree to which the project requires an
investment of public financing to move forward, create impact, or
be competitive, and the level of need in the area to be served;
(3) The degree to which the project will have a
positive economic impact on the underserved community, including by
creating or retaining jobs for local residents;
(4) The degree to which the project will work with
state and local health department initiatives or Texas Agri-Life to
educate consumers on nutrition and promote healthier eating; and
(5) Other criteria the department/agency determines
to be consistent with the purposes of this Chapter.
(f) Eligible costs. Financing made available for projects
may be used for the following purposes:
(1) Site acquisition and preparation;
(2) Construction and build-out costs;
(3) Equipment and furnishings;
(4) Workforce training or security;
(5) Pre-development costs such as market studies and
appraisals;
(6) Energy-efficiency measures; and
(7) Working capital for first-time inventory and
start-up costs.
SECTION 2. Not later than December 1, 2015, the Texas
Department of Agriculture shall adopt rules to administer Chapter
26, Agriculture Code, as added by this Act.
SECTION 3. Not later than December 15, 2015, the Texas
Department of Agriculture shall contract with one or more
non-profit organizations or a community development financial
institution provided by Section 26.003, Agriculture Code, as added
by this Act.
SECTION 4. Not later than January 15, 2016, the Texas
Department of Agriculture shall transfer money to the Texas Grocery
Access Investment Fund.
SECTION 5. This Act takes effect September 1, 2015.