Texas 2023 - 88th Regular

Texas House Bill HB2509 Compare Versions

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1	1	88R22323 KBB-D
2	2	By: Bernal H.B. No. 2509
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. Title 2, Agriculture Code, is amended by adding
11	11	Chapter 26 to read as follows:
12	12	CHAPTER 26. TEXAS GROCERY ACCESS INVESTMENT FUND
13	13	Sec. 26.001. DEFINITIONS. In this chapter:
14	14	(1) "Community development financial institution" has
15	15	the meaning assigned by 12 U.S.C. Section 4702.
16	16	(2) "Financing" means a loan, grant, or forgivable
17	17	loan.
18	18	(3) "Fund" means the Texas grocery access investment
19	19	fund established by this chapter.
20	20	(4) "Grocery store" means a self-service retail store
21	21	that primarily sells meat, seafood, fruits, vegetables, dairy
22	22	products, dry groceries, household products, and sundries.
23	23	(5) "Low-income area" means a census tract, based on
24	24	the most recent information published by the United States Bureau
25	25	of the Census, in which the poverty rate is 20 percent or higher or
26	26	the median family income is at or below 81 percent of the median
27	27	family income for the state or the metropolitan statistical area.
28	28	(6) "Moderate-income area" means a census tract, based
29	29	on the most recent information published by the United States
30	30	Bureau of the Census, in which the median family income is above 81
31	31	percent and at or below 95 percent of the median family income for
32	32	the state or the metropolitan statistical area.
33	33	(7) "Program" means the Texas grocery access
34	34	investment fund program authorized by this chapter.
35	35	(8) "Supplemental nutrition assistance program" means
36	36	the nutritional assistance program operated under Chapter 33, Human
37	37	Resources Code, and formerly referred to as the food stamp program.
38	38	(9) "Underserved area" means a census tract, based on
39	39	the most recent information published by the United States Bureau
40	40	of the Census, that has been determined to be an area with low
41	41	supermarket access by:
42	42	(A) the United States Department of Agriculture,
43	43	as identified in the Food Access Research Atlas published by that
44	44	department; or
45	45	(B) another governmental or philanthropic
46	46	healthy food initiative.
47	47	(10) "WIC program" means the federal special
48	48	supplemental nutrition program for women, infants, and children
49	49	authorized by 42 U.S.C. Section 1786.
50	50	Sec. 26.002. TEXAS GROCERY ACCESS INVESTMENT FUND PROGRAM.
51	51	(a) The department, in cooperation with public and private sector
52	52	partners, shall establish the Texas grocery access investment fund
53	53	program to provide financing to construct, rehabilitate, or expand
54	54	grocery stores in underserved low-income and moderate-income areas
55	55	in this state.
56	56	(b) The fund is a trust fund outside the treasury with the
57	57	comptroller and administered by the department.
58	58	(c) The fund is composed of:
59	59	(1) money appropriated to the fund by the legislature;
60	60	(2) federal, state, or private grants or loans
61	61	deposited to the credit of the fund;
62	62	(3) money received as a result of federal tax credits
63	63	deposited to the credit of the fund;
64	64	(4) other money deposited to the credit of the fund, as
65	65	provided by law; and
66	66	(5) any other type of financial assistance.
67	67	(d) The department may use money appropriated to the
68	68	department for the purposes of establishing the program authorized
69	69	by this chapter. Not less than 25 percent of the money in the fund
70	70	shall be used to provide grants or forgivable loans distributed
71	71	under the program. Not more than 10 percent of the money in the fund
72	72	may be reserved for administrative or operational costs of
73	73	operating the program, unless the costs are covered by another
74	74	budget or in-kind contributions.
75	75	(e) The department may deposit to the credit of the fund any
76	76	money available to the department for the purpose of the program,
77	77	including appropriated money.
78	78	Sec. 26.003. ADMINISTRATION OF TEXAS GROCERY ACCESS
79	79	INVESTMENT FUND PROGRAM. (a) The department shall contract with
80	80	one or more qualified nonprofit organizations or community
81	81	development financial institutions to administer the program
82	82	through a public-private partnership.
83	83	(b) A nonprofit organization or community development
84	84	financial institution contracted under Subsection (a) shall
85	85	establish program guidelines, raise matching funds, promote the
86	86	program statewide, evaluate applicants, underwrite and disburse
87	87	grants and loans, and monitor compliance with and the impact of the
88	88	program.
89	89	(c) The department shall establish rules or other
90	90	procedures as necessary to administer this chapter.
91	91	(d) The department shall establish monitoring and
92	92	accountability mechanisms for projects receiving financing under
93	93	the program and shall report annually to the legislature. The
94	94	report must include information regarding the projects that are
95	95	funded, the geographic distribution of the projects, the costs of
96	96	start-up and administration of the program, and the outcomes of the
97	97	projects, including the number and types of jobs created as a result
98	98	of the program and the health impact of the program.
99	99	(e) The department shall create project eligibility
100	100	guidelines and provide financing through an application process.
101	101	Projects must be located in an underserved area and primarily serve
102	102	low-income or moderate-income areas. Projects eligible for
103	103	financing include:
104	104	(1) constructing a new grocery store; and
105	105	(2) improving an existing grocery store, including
106	106	upgrading the store's infrastructure, renovating the store, or
107	107	expanding the store to improve the availability and quality of
108	108	fresh produce and other healthy food.
109	109	(f) An applicant for financing may be a for-profit or
110	110	nonprofit entity, including a sole proprietorship, partnership,
111	111	limited liability company, corporation, cooperative, nonprofit
112	112	organization, nonprofit community development entity, university,
113	113	or government entity. An applicant for financing must:
114	114	(1) demonstrate the capacity to successfully
115	115	implement the project and the likelihood that the project will be
116	116	economically self-sustaining;
117	117	(2) demonstrate the ability to repay any loan required
118	118	to be repaid; and
119	119	(3) agree, for a period of five years, to:
120	120	(A) accept benefits under the WIC program and the
121	121	supplemental nutrition assistance program;
122	122	(B) allocate 30 percent of the retail space for
123	123	the sale of perishable foods, which may include whole grains, fresh
124	124	produce, meat, poultry, seafood, and fresh or frozen dairy
125	125	products;
126	126	(C) comply with all data collection and reporting
127	127	requirements established by the department;
128	128	(D) promote the sale of fresh produce, including
129	129	Texas-grown fruits and vegetables, and fresh Texas-raised meat,
130	130	poultry, and seafood products; and
131	131	(E) promote the hiring of local residents.
132	132	(g) In determining which qualified projects to finance, the
133	133	department shall consider:
134	134	(1) the level of need in the area to be served;
135	135	(2) the amount of public funding required to make the
136	136	project move forward, create impact, or be competitive;
137	137	(3) the degree to which the project will have a
138	138	positive economic impact on the underserved area, including by
139	139	creating or retaining jobs for local residents;
140	140	(4) the degree to which the project will participate
141	141	in state and local health initiatives to educate consumers on
142	142	nutrition and promote healthy eating, including Texas A&M AgriLife
143	143	Extension Service initiatives; and
144	144	(5) any other criteria the department considers
145	145	necessary or appropriate.
146	146	(h) A recipient of financing may use funds received for the
147	147	following purposes:
148	148	(1) site acquisition and preparation;
149	149	(2) construction and build-out costs;
150	150	(3) equipment and furnishings;
151	151	(4) employee training and security;
152	152	(5) predevelopment costs, including market studies
153	153	and appraisals;
154	154	(6) energy efficiency measures; and
155	155	(7) working capital for initial inventory and start-up
156	156	costs.
157	157	SECTION 2. Not later than December 1, 2023, the Department
158	158	of Agriculture shall adopt rules to administer Chapter 26,
159	159	Agriculture Code, as added by this Act.
160	160	SECTION 3. Not later than December 15, 2023, the Department
161	161	of Agriculture shall contract with one or more nonprofit
162	162	organizations or community development financial institutions as
163	163	provided by Section 26.003, Agriculture Code, as added by this Act.
164	164	SECTION 4. Not later than January 15, 2024, the Department
165	165	of Agriculture shall transfer money to the Texas grocery access
166	166	investment fund.
167	167	SECTION 5. This Act takes effect September 1, 2023.