Texas 2015 - 84th Regular

Texas Senate Bill SB1590 Compare Versions

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1	1	By: Zaffirini, West S.B. No. 1590
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the establishment of a Texas grocery access investment
7	7	fund program.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Title 2, Agriculture Code, is amended by adding
10	10	Chapter 26 to read as follows:
11	11	CHAPTER 26. TEXAS GROCERY ACCESS INVESTMENT FUND
12	12	Sec. 26.001. DEFINITIONS. In this chapter:
13	13	(1)"Financing" means loans and grants and/or
14	14	forgivable loans.
15	15	(2)"Fund" means the Texas grocery access
16	16	investment fund established by this chapter.
17	17	(3)"Grocery store" means a for-profit or
18	18	not-for profit self-service retail establishment that primarily
19	19	sells meat, seafood, fruits, vegetables, dairy products, dry
20	20	groceries, household products, and sundries.
21	21	(4)"Low Income area" means a census tract (as
22	22	reported in the most recently completed decennial census published
23	23	by the United States Bureau of the Census) that has a poverty rate
24	24	of at least 20 percent or in which the median family income does not
25	25	exceed 81 percent of the greater of the statewide or metropolitan
26	26	median family income.
27	27	(5)"Moderate Income area" means a census
28	28	tract in which the median family income is between 81 and 95 percent
29	29	of the area median family income.
30	30	(6)"Program" means the Texas grocery access
31	31	investment fund program authorized by this chapter.
32	32	(7)"Supplemental nutrition assistance
33	33	program" means the nutritional assistance program formerly
34	34	referred to as the food stamp program.
35	35	(8)"Underserved Community" means a census
36	36	tract determined to be an area with low supermarket access by either
37	37	the U.S. Department of Agriculture (USDA), as identified in the
38	38	USDA's Food Access Research Atlas, or through a methodology that
39	39	has been adopted for use by another governmental or philanthropic
40	40	healthy food initiative.
41	41	(9)"WIC program" means the federal special
42	42	supplemental nutrition program for women, infants, and children
43	43	authorized by 42 U.S.C. Section 1786.
44	44	Sec. 26.002. TEXAS GROCERY ACCESS INVESTMENT FUND PROGRAM.
45	45	(a) The Texas Department of Agriculture, in cooperation
46	46	with public and private sector partners, shall establish the Texas
47	47	Grocery Access Investment Fund program to provide Financing to
48	48	construct, rehabilitate or expand grocery stores in Underserved
49	49	Communities in urban and rural Low and Moderate Income Areas.
50	50	(b) The Texas Grocery Access Investment Fund shall be
51	51	comprised of money appropriated by the legislature, as well as
52	52	federal, state, or private grants or loans, federal tax credits, or
53	53	other type of financial assistance, for the construction or
54	54	expansion of grocery stores to expand access to fresh produce and
55	55	other nutritious foods in Underserved Communities.
56	56	(c) Monies in the Fund shall be expended upon appropriation
57	57	by the Legislature, and shall be used, to the extent practicable, to
58	58	leverage other forms of financing. No less than 25 percent of the
59	59	monies in the Fund shall be expended in the form of grants or
60	60	forgivable loans.
61	61	Sec. 26.003. ADMINISTRATION OF THE TEXAS GROCERY ACCESS
62	62	INVESTMENT FUND. (a) The Texas Department of Agriculture shall
63	63	contract with one or more qualified nonprofit organizations or
64	64	community development financial institutions to administer this
65	65	program through a public-private partnership. The nonprofit
66	66	organizations or community development financial institution will
67	67	establish program guidelines, raise matching funds, promote the
68	68	program statewide, evaluate applicants, underwrite and disburse
69	69	grants and loans, and monitor compliance and impact. The Texas
70	70	Department of Agriculture shall develop rules, regulations, or
71	71	other procedures to carry out the program to meet the intent of this
72	72	Chapter. No more than 10 percent of the monies in the Fund shall be
73	73	reserved for administrative and operational costs to manage the
74	74	program, unless those costs are provided for from other budgets or
75	75	in-kind resources.
76	76	(b) The Texas Department of Agriculture shall establish
77	77	monitoring and accountability mechanisms for projects receiving
78	78	Financing and shall report annually to the Legislature on the
79	79	projects funded, the geographic distribution of the projects, the
80	80	costs of startup and administering the program, and the outcomes,
81	81	including the number and type of jobs created and health impact
82	82	associated with the program.
83	83	(c) Project eligibility for Financing. The Texas Department
84	84	of Agriculture shall create eligibility guidelines and provide
85	85	Financing through an application process. Projects must be located
86	86	in an Underserved Community and primarily serve Low or Moderate
87	87	Income Areas. Projects eligible for financing are:
88	88	(1) Construction of new grocery stores and
89	89	(2) Store renovations, expansion, and infrastructure
90	90	upgrades that improve the availability and quality of fresh produce
91	91	and other healthy foods.
92	92	(d) Qualifications for receiving Financing. An applicant
93	93	for Financing may be a for-profit or not-for profit entity,
94	94	including but not limited to, a sole proprietorship, partnership,
95	95	limited liability company, corporation, cooperative, nonprofit
96	96	organization, nonprofit community development entity, university,
97	97	or government entity. An applicant for Financing must:
98	98	(1) Demonstrate the capacity to successfully
99	99	implement the project and the likelihood that the project will be
100	100	economically self-sustaining;
101	101	(2) Demonstrate the ability to repay the debt; and
102	102	(3) Agree, for period of at least [five] years, to
103	103	comply with the following conditions:
104	104	(4) To accept Supplemental Nutrition Assistance
105	105	Program (SNAP) benefits.
106	106	(5) To apply to accept Special Supplemental Nutrition
107	107	Program for Women, Infants and Children (WIC) benefits and accept
108	108	WIC benefits, if approved.
109	109	(6) To allocate at least 30 percent of food retail
110	110	space for the sale of perishable foods, which may include fresh or
111	111	frozen dairy, fresh produce, whole grains, fresh meats, poultry,
112	112	and fish.
113	113	(7) To comply with all data collection and reporting
114	114	requirements established by the Texas Department of Agriculture.
115	115	(8) The degree to which the entity's proposed grocery
116	116	store would promote the sale of fresh produce, including
117	117	Texas-grown fruits and vegetables; and Texas-raised fresh meat,
118	118	poultry and seafood products.
119	119	(9) To promote the hiring of local residents.
120	120	(e) Criteria for selecting projects for Financing. In
121	121	determining which qualified projects to finance, the Texas
122	122	Department of Agriculture shall consider:
123	123	(1) The level of need in the area to be served;
124	124	(2) The degree to which the project requires an
125	125	investment of public financing to move forward, create impact, or
126	126	be competitive, and the level of need in the area to be served;
127	127	(3) The degree to which the project will have a
128	128	positive economic impact on the underserved community, including by
129	129	creating or retaining jobs for local residents;
130	130	(4) The degree to which the project will work with
131	131	state and local health department initiatives or Texas Agri-Life to
132	132	educate consumers on nutrition and promote healthier eating; and
133	133	(5) Other criteria the department/agency determines
134	134	to be consistent with the purposes of this Chapter.
135	135	(f) Eligible costs. Financing made available for projects
136	136	may be used for the following purposes:
137	137	(1) Site acquisition and preparation;
138	138	(2) Construction and build-out costs;
139	139	(3) Equipment and furnishings;
140	140	(4) Workforce training or security;
141	141	(5) Pre-development costs such as market studies and
142	142	appraisals;
143	143	(6) Energy-efficiency measures; and
144	144	(7) Working capital for first-time inventory and
145	145	start-up costs.
146	146	SECTION 2. Not later than December 1, 2015, the Texas
147	147	Department of Agriculture shall adopt rules to administer Chapter
148	148	26, Agriculture Code, as added by this Act.
149	149	SECTION 3. Not later than December 15, 2015, the Texas
150	150	Department of Agriculture shall contract with one or more
151	151	non-profit organizations or a community development financial
152	152	institution provided by Section 26.003, Agriculture Code, as added
153	153	by this Act.
154	154	SECTION 4. Not later than January 15, 2016, the Texas
155	155	Department of Agriculture shall transfer money to the Texas Grocery
156	156	Access Investment Fund.
157	157	SECTION 5. This Act takes effect September 1, 2015.