Texas 2019 - 86th Regular

Texas House Bill HB1252 Compare Versions

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

Old	New	Differences
1	1	86R2344 JG-F
2	2	By: Rodriguez H.B. No. 1252
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	money, 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 submit a written report annually to the
97	97	legislature. The report must include information regarding the
98	98	projects that are funded, the geographic distribution of the
99	99	projects, the costs of start-up and administration of the program,
100	100	and the outcomes of the projects, including the number and types of
101	101	jobs created as a result of the program and the health impact of the
102	102	program.
103	103	(e) The department shall create project eligibility
104	104	guidelines and provide financing through an application process.
105	105	To be eligible for financing, a project must be located in an
106	106	underserved area and primarily serve low-income or moderate-income
107	107	areas. Projects eligible for financing include the construction,
108	108	expansion, or rehabilitation of:
109	109	(1) a grocery store;
110	110	(2) a mobile market;
111	111	(3) a farm stand; and
112	112	(4) any other approved project that furthers the
113	113	purposes of the program.
114	114	(f) An applicant for financing may be a for-profit or
115	115	nonprofit entity, including a sole proprietorship, partnership,
116	116	limited liability company, corporation, cooperative, nonprofit
117	117	organization, nonprofit community development entity, university,
118	118	or government entity. An applicant for financing must:
119	119	(1) demonstrate the capacity to successfully
120	120	implement the project and the likelihood that the project will be
121	121	economically self-sustaining;
122	122	(2) demonstrate the ability to repay any loan required
123	123	to be repaid; and
124	124	(3) agree, for a period of five years, to:
125	125	(A) accept benefits under the federal
126	126	supplemental nutrition assistance program operated under 7 U.S.C.
127	127	Section 2011 et seq. and the federal special supplemental nutrition
128	128	program for women, infants, and children authorized by 42 U.S.C.
129	129	Section 1786;
130	130	(B) provide sufficient access to healthy food,
131	131	such as by allocating an amount of retail space considered
132	132	appropriate by the department for the sale of perishable foods,
133	133	which may include whole grains, fresh produce, meat, poultry,
134	134	seafood, and fresh or frozen dairy products;
135	135	(C) comply with all data collection and reporting
136	136	requirements established by the department;
137	137	(D) promote the sale of fresh produce, including
138	138	Texas-grown fruits and vegetables, and fresh Texas-raised meat,
139	139	poultry, and seafood products; and
140	140	(E) promote the hiring of local residents.
141	141	(g) In determining which eligible projects to finance, an
142	142	entity contracted under Subsection (a) shall consider:
143	143	(1) the following for each eligible project:
144	144	(A) the level of need in the area to be served;
145	145	(B) the amount of public funding required to make
146	146	the project move forward, create an impact, or be competitive;
147	147	(C) the degree to which the project will have a
148	148	positive impact on food access and a positive economic impact on the
149	149	underserved area, including by creating or retaining jobs for local
150	150	residents;
151	151	(D) the degree to which the project will
152	152	participate in state and local health initiatives to educate
153	153	consumers on nutrition and promote healthy eating, including Texas
154	154	A&M AgriLife Extension Service initiatives; and
155	155	(E) any other criteria the contracted entity
156	156	considers necessary or appropriate; and
157	157	(2) the following for each eligible project related to
158	158	the construction of a new grocery store:
159	159	(A) whether the grocery store is expected to be
160	160	economically viable; and
161	161	(B) whether the grocery store will have a
162	162	positive impact on healthy food access in the underserved
163	163	low-income or moderate-income area the project is intended to
164	164	serve.
165	165	(h) A recipient of financing may use money received for the
166	166	following purposes:
167	167	(1) site acquisition and preparation;
168	168	(2) construction and build-out costs;
169	169	(3) equipment and furnishings;
170	170	(4) employee training or security;
171	171	(5) predevelopment costs, including market studies
172	172	and appraisals;
173	173	(6) energy efficiency measures;
174	174	(7) working capital for initial inventory and start-up
175	175	costs; and
176	176	(8) any other costs associated with maintaining the
177	177	infrastructure of the project.
178	178	SECTION 2. Not later than December 1, 2019, the Texas
179	179	Department of Housing and Community Affairs shall adopt rules to
180	180	administer Subchapter BB, Chapter 2306, Government Code, as added
181	181	by this Act.
182	182	SECTION 3. Not later than December 15, 2019, the Texas
183	183	Department of Housing and Community Affairs shall contract with one
184	184	or more entities as provided by Section 2306.6503(a), Government
185	185	Code, as added by this Act.
186	186	SECTION 4. Not later than January 15, 2020, the Texas
187	187	Department of Housing and Community Affairs shall transfer money
188	188	held by the department and described by Section 2306.6502(c),
189	189	Government Code, as added by this Act, to the Texas grocery access
190	190	investment fund.
191	191	SECTION 5. This Act takes effect September 1, 2019.