86R2344 JG-F
By: Rodriguez H.B. No. 1252
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a grocery access investment fund
program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2306, Government Code, is amended by
adding Subchapter BB to read as follows:
SUBCHAPTER BB. TEXAS GROCERY ACCESS INVESTMENT FUND
Sec. 2306.6501. DEFINITIONS. In this subchapter:
(1) "Community development financial institution" has
the meaning assigned by 12 U.S.C. Section 4702.
(2) "Farm stand" has the meaning assigned by Section
437.001, Health and Safety Code.
(3) "Financing" means a loan, grant, or forgivable
loan.
(4) "Fund" means the Texas grocery access investment
fund established by this subchapter.
(5) "Grant" means a grant provided under the program.
(6) "Grocery store" means a self-service retail store
that primarily sells meat, seafood, fruits, vegetables, dairy
products, dry groceries, household products, and sundries.
(7) "Low-income area" means a census tract, based on
the most recent information published by the United States Bureau
of the Census, in which the poverty rate is 20 percent or higher or
the median family income is at or below 81 percent of the median
family income for the state or the metropolitan statistical area.
(8) "Mobile market" means a mobile self-service retail
store that primarily sells meat, seafood, fruits, vegetables, dairy
products, and dry groceries.
(9) "Moderate-income area" means a census tract, based
on the most recent information published by the United States
Bureau of the Census, in which the median family income is between
82 and 95 percent of the median family income for the state or the
metropolitan statistical area.
(10) "Program" means the Texas grocery access
investment fund program authorized by this subchapter.
(11) "Underserved area" means:
(A) an area designated as underserved by the
department by rule; or
(B) a census tract, based on the most recent
information published by the United States Bureau of the Census,
that has been determined to be an area with low supermarket access
by the United States Department of Agriculture, as identified by
the Food Access Research Atlas published by the United States
Department of Agriculture.
Sec. 2306.6502. TEXAS GROCERY ACCESS INVESTMENT FUND
PROGRAM. (a) The department, 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, mobile markets, farm
stands, and other eligible projects as determined by the department
to increase food access in underserved low-income and
moderate-income areas in this state.
(b) The Texas grocery access investment fund is a trust fund
outside the treasury with the comptroller and administered by the
department.
(c) The fund may be composed of:
(1) money received from a private financial
institution, including a bank, credit union, or community
development financial institution;
(2) federal, state, or private grants or loans;
(3) money received as a result of federal tax credits;
(4) money appropriated to the fund by the legislature;
(5) any other type of financial assistance; and
(6) interest received on money in the fund.
Sec. 2306.6503. ADMINISTRATION OF TEXAS GROCERY ACCESS
INVESTMENT FUND PROGRAM. (a) The department shall contract with
one or more of the following entities to administer the program
through a public-private partnership:
(1) a nonprofit organization;
(2) a community development financial institution;
(3) a governmental entity;
(4) a private financial institution, including a bank
or credit union;
(5) an academic institution; or
(6) any other entity considered appropriate by the
department.
(b) Subject to rules, procedures, and guidelines adopted or
established by the department, an entity contracted under
Subsection (a) shall establish program guidelines, raise matching
money, promote the program statewide, evaluate applicants,
underwrite and disburse grants and loans, and monitor compliance
with and the impact of the program. Notwithstanding this
subsection, the department may disburse a grant or loan that does
not exceed $20,000 per project for an eligible project.
(c) The department shall establish rules or other
procedures as necessary to administer this subchapter.
(d) The department may contract with an appropriate
academic institution to establish monitoring and accountability
mechanisms for projects receiving financing under the program. If
the department contracts with an institution under this subsection,
the institution shall submit a written report annually to the
legislature. The report must include information regarding the
projects that are funded, the geographic distribution of the
projects, the costs of start-up and administration of the program,
and the outcomes of the projects, including the number and types of
jobs created as a result of the program and the health impact of the
program.
(e) The department shall create project eligibility
guidelines and provide financing through an application process.
To be eligible for financing, a project must be located in an
underserved area and primarily serve low-income or moderate-income
areas. Projects eligible for financing include the construction,
expansion, or rehabilitation of:
(1) a grocery store;
(2) a mobile market;
(3) a farm stand; and
(4) any other approved project that furthers the
purposes of the program.
(f) An applicant for financing may be a for-profit or
nonprofit entity, including 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 any loan required
to be repaid; and
(3) agree, for a period of five years, to:
(A) accept benefits under the federal
supplemental nutrition assistance program operated under 7 U.S.C.
Section 2011 et seq. and the federal special supplemental nutrition
program for women, infants, and children authorized by 42 U.S.C.
Section 1786;
(B) provide sufficient access to healthy food,
such as by allocating an amount of retail space considered
appropriate by the department for the sale of perishable foods,
which may include whole grains, fresh produce, meat, poultry,
seafood, and fresh or frozen dairy products;
(C) comply with all data collection and reporting
requirements established by the department;
(D) promote the sale of fresh produce, including
Texas-grown fruits and vegetables, and fresh Texas-raised meat,
poultry, and seafood products; and
(E) promote the hiring of local residents.
(g) In determining which eligible projects to finance, an
entity contracted under Subsection (a) shall consider:
(1) the following for each eligible project:
(A) the level of need in the area to be served;
(B) the amount of public funding required to make
the project move forward, create an impact, or be competitive;
(C) the degree to which the project will have a
positive impact on food access and a positive economic impact on the
underserved area, including by creating or retaining jobs for local
residents;
(D) the degree to which the project will
participate in state and local health initiatives to educate
consumers on nutrition and promote healthy eating, including Texas
A&M AgriLife Extension Service initiatives; and
(E) any other criteria the contracted entity
considers necessary or appropriate; and
(2) the following for each eligible project related to
the construction of a new grocery store:
(A) whether the grocery store is expected to be
economically viable; and
(B) whether the grocery store will have a
positive impact on healthy food access in the underserved
low-income or moderate-income area the project is intended to
serve.
(h) A recipient of financing may use money received for the
following purposes:
(1) site acquisition and preparation;
(2) construction and build-out costs;
(3) equipment and furnishings;
(4) employee training or security;
(5) predevelopment costs, including market studies
and appraisals;
(6) energy efficiency measures;
(7) working capital for initial inventory and start-up
costs; and
(8) any other costs associated with maintaining the
infrastructure of the project.
SECTION 2. Not later than December 1, 2019, the Texas
Department of Housing and Community Affairs shall adopt rules to
administer Subchapter BB, Chapter 2306, Government Code, as added
by this Act.
SECTION 3. Not later than December 15, 2019, the Texas
Department of Housing and Community Affairs shall contract with one
or more entities as provided by Section 2306.6503(a), Government
Code, as added by this Act.
SECTION 4. Not later than January 15, 2020, the Texas
Department of Housing and Community Affairs shall transfer money
held by the department and described by Section 2306.6502(c),
Government Code, as added by this Act, to the Texas grocery access
investment fund.
SECTION 5. This Act takes effect September 1, 2019.