Texas 2017 - 85th Regular

Texas Senate Bill SB2156 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R10628 JG-F
2	2	By: Zaffirini S.B. No. 2156
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of a grocery access investment fund
8	8	program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 2306, Government Code, is amended by
11	11	adding Subchapter BB to read as follows:
12	12	SUBCHAPTER BB. TEXAS GROCERY ACCESS INVESTMENT FUND
13	13	Sec. 2306.6501. DEFINITIONS. In this subchapter:
14	14	(1) "Community development financial institution" has
15	15	the meaning assigned by 12 U.S.C. Section 4702.
16	16	(2) "Farm stand" has the meaning assigned by Section
17	17	437.001, Health and Safety Code.
18	18	(3) "Financing" means a loan, grant, or forgivable
19	19	loan.
20	20	(4) "Fund" means the Texas grocery access investment
21	21	fund established by this subchapter.
22	22	(5) "Grant" means a grant provided under the program.
23	23	(6) "Grocery store" means a self-service retail store
24	24	that primarily sells meat, seafood, fruits, vegetables, dairy
25	25	products, dry groceries, household products, and sundries.
26	26	(7) "Low-income area" means a census tract, based on
27	27	the most recent information published by the United States Bureau
28	28	of the Census, in which the poverty rate is 20 percent or higher or
29	29	the median family income is at or below 81 percent of the median
30	30	family income for the state or the metropolitan statistical area.
31	31	(8) "Mobile market" means a mobile self-service retail
32	32	store that primarily sells meat, seafood, fruits, vegetables, dairy
33	33	products, and dry groceries.
34	34	(9) "Moderate-income area" means a census tract, based
35	35	on the most recent information published by the United States
36	36	Bureau of the Census, in which the median family income is between
37	37	82 and 95 percent of the median family income for the state or the
38	38	metropolitan statistical area.
39	39	(10) "Program" means the Texas grocery access
40	40	investment fund program authorized by this subchapter.
41	41	(11) "Underserved area" means:
42	42	(A) an area designated as underserved by the
43	43	department by rule; or
44	44	(B) a census tract, based on the most recent
45	45	information published by the United States Bureau of the Census,
46	46	that has been determined to be an area with low supermarket access
47	47	by the United States Department of Agriculture, as identified by
48	48	the Food Access Research Atlas published by the United States
49	49	Department of Agriculture.
50	50	Sec. 2306.6502. TEXAS GROCERY ACCESS INVESTMENT FUND
51	51	PROGRAM. (a) The department, in cooperation with public and
52	52	private sector partners, shall establish the Texas grocery access
53	53	investment fund program to provide financing to construct,
54	54	rehabilitate, or expand grocery stores, mobile markets, farm
55	55	stands, and other eligible projects as determined by the department
56	56	to increase food access in underserved low-income and
57	57	moderate-income areas in this state.
58	58	(b) The Texas grocery access investment fund is a trust fund
59	59	outside the treasury with the comptroller and administered by the
60	60	department.
61	61	(c) The fund may be composed of:
62	62	(1) money received from a private financial
63	63	institution, including a bank, credit union, or community
64	64	development financial institution;
65	65	(2) federal, state, or private grants or loans;
66	66	(3) money received as a result of federal tax credits;
67	67	(4) money appropriated to the fund by the legislature;
68	68	(5) any other type of financial assistance; and
69	69	(6) interest received on money in the fund.
70	70	Sec. 2306.6503. ADMINISTRATION OF TEXAS GROCERY ACCESS
71	71	INVESTMENT FUND PROGRAM. (a) The department shall contract with
72	72	one or more of the following entities to administer the program
73	73	through a public-private partnership:
74	74	(1) a nonprofit organization;
75	75	(2) a community development financial institution;
76	76	(3) a governmental entity;
77	77	(4) a private financial institution, including a bank
78	78	or credit union;
79	79	(5) an academic institution; or
80	80	(6) any other entity considered appropriate by the
81	81	department.
82	82	(b) Subject to rules, procedures, and guidelines adopted or
83	83	established by the department, an entity contracted under
84	84	Subsection (a) shall establish program guidelines, raise matching
85	85	funds, promote the program statewide, evaluate applicants,
86	86	underwrite and disburse grants and loans, and monitor compliance
87	87	with and the impact of the program. Notwithstanding this
88	88	subsection, the department may disburse a grant or loan that does
89	89	not exceed $20,000 per project for an eligible project.
90	90	(c) The department shall establish rules or other
91	91	procedures as necessary to administer this subchapter.
92	92	(d) The department may contract with an appropriate
93	93	academic institution to establish monitoring and accountability
94	94	mechanisms for projects receiving financing under the program. If
95	95	the department contracts with an institution under this subsection,
96	96	the institution shall report annually to the legislature. The
97	97	report must include information regarding the projects that are
98	98	funded, the geographic distribution of the projects, the costs of
99	99	start-up and administration of the program, and the outcomes of the
100	100	projects, including the number and types of jobs created as a result
101	101	of the program and the health impact of the program.
102	102	(e) The department shall create project eligibility
103	103	guidelines and provide financing through an application process.
104	104	To be eligible for financing, a project must be located in an
105	105	underserved area and primarily serve low-income or moderate-income
106	106	areas. Projects eligible for financing include the construction,
107	107	expansion, or rehabilitation of:
108	108	(1) a grocery store;
109	109	(2) a mobile market;
110	110	(3) a farm stand; and
111	111	(4) any other approved project that furthers the
112	112	purposes of the program.
113	113	(f) An applicant for financing may be a for-profit or
114	114	nonprofit entity, including a sole proprietorship, partnership,
115	115	limited liability company, corporation, cooperative, nonprofit
116	116	organization, nonprofit community development entity, university,
117	117	or government entity. An applicant for financing must:
118	118	(1) demonstrate the capacity to successfully
119	119	implement the project and the likelihood that the project will be
120	120	economically self-sustaining;
121	121	(2) demonstrate the ability to repay any loan required
122	122	to be repaid; and
123	123	(3) agree, for a period of five years, to:
124	124	(A) accept benefits under the federal
125	125	supplemental nutrition assistance program operated under 7 U.S.C.
126	126	Section 2011 et seq. and the federal special supplemental nutrition
127	127	program for women, infants, and children authorized by 42 U.S.C.
128	128	Section 1786;
129	129	(B) provide sufficient access to healthy food,
130	130	such as by allocating an amount of retail space considered
131	131	appropriate by the department for the sale of perishable foods,
132	132	which may include whole grains, fresh produce, meat, poultry,
133	133	seafood, and fresh or frozen dairy products;
134	134	(C) comply with all data collection and reporting
135	135	requirements established by the department;
136	136	(D) promote the sale of fresh produce, including
137	137	Texas-grown fruits and vegetables, and fresh Texas-raised meat,
138	138	poultry, and seafood products; and
139	139	(E) promote the hiring of local residents.
140	140	(g) In determining which eligible projects to finance, an
141	141	entity contracted under Subsection (a) shall consider:
142	142	(1) the following for each eligible project:
143	143	(A) the level of need in the area to be served;
144	144	(B) the amount of public funding required to make
145	145	the project move forward, create an impact, or be competitive;
146	146	(C) the degree to which the project will have a
147	147	positive impact on food access and a positive economic impact on the
148	148	underserved area, including by creating or retaining jobs for local
149	149	residents;
150	150	(D) the degree to which the project will
151	151	participate in state and local health initiatives to educate
152	152	consumers on nutrition and promote healthy eating, including Texas
153	153	A&M AgriLife Extension Service initiatives; and
154	154	(E) any other criteria the contracted entity
155	155	considers necessary or appropriate; and
156	156	(2) the following for each eligible project related to
157	157	the construction of a new grocery store:
158	158	(A) whether the grocery store is expected to be
159	159	economically viable; and
160	160	(B) whether the grocery store will have a
161	161	positive impact on healthy food access in the underserved
162	162	low-income or moderate-income area the project is intended to
163	163	serve.
164	164	(h) A recipient of financing may use funds received for the
165	165	following purposes:
166	166	(1) site acquisition and preparation;
167	167	(2) construction and build-out costs;
168	168	(3) equipment and furnishings;
169	169	(4) employee training or security;
170	170	(5) predevelopment costs, including market studies
171	171	and appraisals;
172	172	(6) energy efficiency measures;
173	173	(7) working capital for initial inventory and start-up
174	174	costs; and
175	175	(8) any other costs associated with maintaining the
176	176	infrastructure of the project.
177	177	SECTION 2. Not later than December 1, 2017, the Texas
178	178	Department of Housing and Community Affairs shall adopt rules to
179	179	administer Subchapter BB, Chapter 2306, Government Code, as added
180	180	by this Act.
181	181	SECTION 3. Not later than December 15, 2017, the Texas
182	182	Department of Housing and Community Affairs shall contract with one
183	183	or more entities as provided by Section 2306.6503(a), Government
184	184	Code, as added by this Act.
185	185	SECTION 4. Not later than January 15, 2018, the Texas
186	186	Department of Housing and Community Affairs shall transfer money
187	187	held by the department and described by Section 2306.6502(c),
188	188	Government Code, as added by this Act, to the Texas grocery access
189	189	investment fund.
190	190	SECTION 5. This Act takes effect September 1, 2017.