1 | 1 | | 89R4276 SCR-D |
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2 | 2 | | By: Meza H.B. No. 2033 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the establishment of the community development grocery |
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10 | 10 | | store grant program and to the use of money from the Texas |
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11 | 11 | | Enterprise Fund for the program. |
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12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 13 | | SECTION 1. Chapter 481, Government Code, is amended by |
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14 | 14 | | adding Subchapter HH to read as follows: |
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15 | 15 | | SUBCHAPTER HH. COMMUNITY DEVELOPMENT GROCERY STORE GRANT PROGRAM |
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16 | 16 | | Sec. 481.701. DEFINITIONS. In this subchapter: |
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17 | 17 | | (1) "Food desert" means a census tract, based on the |
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18 | 18 | | most recent information published by the United States Bureau of |
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19 | 19 | | the Census, in which: |
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20 | 20 | | (A) the poverty rate is 20 percent or higher or |
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21 | 21 | | the median family income is at or below 80 percent of the area |
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22 | 22 | | median family income; and |
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23 | 23 | | (B) at least 500 people or at least 33 percent of |
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24 | 24 | | the census area's population reside more than: |
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25 | 25 | | (i) one mile from a grocery store, in the |
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26 | 26 | | case of a census tract other than a rural census tract; or |
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27 | 27 | | (ii) 10 miles from a grocery store, in the |
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28 | 28 | | case of a rural census tract. |
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29 | 29 | | (2) "Grocery store" means a store that has at least: |
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30 | 30 | | (A) 66 percent of the store's retail space |
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31 | 31 | | reserved for the sale of food products; |
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32 | 32 | | (B) 50 percent of the store's food retail space |
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33 | 33 | | reserved for the sale of non-prepared foods or foods intended for |
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34 | 34 | | home preparation and consumption; and |
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35 | 35 | | (C) 30 percent of the store's food retail space |
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36 | 36 | | reserved for the sale of perishable foods, including dairy |
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37 | 37 | | products, fresh produce, fresh meats, poultry, fish, and frozen |
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38 | 38 | | foods. |
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39 | 39 | | (3) "Program" means the community development grocery |
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40 | 40 | | store grant program established under this subchapter. |
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41 | 41 | | Sec. 481.702. ESTABLISHMENT OF GRANT PROGRAM. (a) The |
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42 | 42 | | office shall establish and administer the community development |
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43 | 43 | | grocery store grant program to assist communities by awarding |
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44 | 44 | | grants to business entities proposing to operate a grocery store |
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45 | 45 | | that will be located in a food desert. |
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46 | 46 | | (b) The office may use any available revenue, including |
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47 | 47 | | legislative appropriations, appropriation transfers from the |
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48 | 48 | | trusteed programs within the office of the governor, including |
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49 | 49 | | authorized appropriations from the Texas Enterprise Fund, and any |
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50 | 50 | | other statutorily authorized and appropriate funding sources |
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51 | 51 | | transferred from the trusteed programs within the office of the |
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52 | 52 | | governor, for the purposes of this subchapter. |
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53 | 53 | | Sec. 481.703. ELIGIBILITY FOR GRANT. To be eligible to |
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54 | 54 | | receive a grant under this subchapter, a business entity must: |
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55 | 55 | | (1) demonstrate significant levels of planned capital |
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56 | 56 | | investment at the proposed location, as determined by office rule; |
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57 | 57 | | (2) demonstrate the support of the governing officials |
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58 | 58 | | of the local governmental entities in which the grocery store is |
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59 | 59 | | proposed to be located, particularly in the form of local economic |
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60 | 60 | | development incentive offers; and |
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61 | 61 | | (3) be well established and financially sound. |
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62 | 62 | | Sec. 481.704. APPLICATION. A small business may apply for a |
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63 | 63 | | grant under this subchapter by submitting an application to the |
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64 | 64 | | office in the form and manner prescribed by the office. |
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65 | 65 | | Sec. 481.705. GRANT AGREEMENT. (a) Before awarding a grant |
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66 | 66 | | under this subchapter, the office shall enter into a written |
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67 | 67 | | agreement with the business entity to be awarded the grant |
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68 | 68 | | specifying that if the grocery store closes before the fourth |
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69 | 69 | | anniversary of the date on which the grant is awarded, the |
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70 | 70 | | recipient shall repay the grant and any related interest to the |
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71 | 71 | | state at the agreed rate and on the agreed terms. |
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72 | 72 | | (b) A grant agreement for a grant awarded under this |
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73 | 73 | | subchapter must contain a provision stating that: |
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74 | 74 | | (1) the grocery store will provide health insurance |
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75 | 75 | | benefits to its full-time employees; and |
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76 | 76 | | (2) the total average wages for new jobs at the grocery |
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77 | 77 | | store must meet or exceed the average wage for the same or similar |
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78 | 78 | | type of job in the county in which the grocery store will be |
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79 | 79 | | located. |
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80 | 80 | | Sec. 481.706. GIFTS, GRANTS, AND DONATIONS. The office |
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81 | 81 | | shall solicit and accept gifts and grants for the purposes of this |
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82 | 82 | | subchapter. The office shall use gifts and grants received for the |
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83 | 83 | | purposes of this subchapter before using any other revenue. |
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84 | 84 | | Sec. 481.707. GRANT PROGRAM RULES. The executive director |
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85 | 85 | | of the office shall adopt rules necessary to administer and |
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86 | 86 | | implement this subchapter. |
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87 | 87 | | SECTION 2. Section 481.078, Government Code, is amended by |
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88 | 88 | | adding Subsection (d-2) to read as follows: |
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89 | 89 | | (d-2) The fund may be used for the community development |
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90 | 90 | | grocery store grant program under Subchapter HH. The governor may |
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91 | 91 | | transfer appropriations from the fund to the office for purposes of |
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92 | 92 | | administering the community development grocery store grant |
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93 | 93 | | program. Subsections (e), (f), (f-1), (f-2), (g), (h), (h-1), (i), |
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94 | 94 | | and (j) and Section 481.080 do not apply to a grant awarded for a |
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95 | 95 | | purpose specified by this subsection. |
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96 | 96 | | SECTION 3. Section 481.079, Government Code, is amended by |
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97 | 97 | | adding Subsection (a-2) to read as follows: |
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98 | 98 | | (a-2) For grants awarded for a purpose specified by Section |
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99 | 99 | | 481.078(d-2), the report must include only the amount and recipient |
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100 | 100 | | of each grant. |
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101 | 101 | | SECTION 4. As soon as practicable after the effective date |
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102 | 102 | | of this Act, the executive director of the Texas Economic |
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103 | 103 | | Development and Tourism Office shall adopt rules for the |
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104 | 104 | | establishment of the community development grocery store grant |
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105 | 105 | | program under Subchapter HH, Chapter 481, Government Code, as added |
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106 | 106 | | by this Act. |
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107 | 107 | | SECTION 5. This Act takes effect September 1, 2025. |
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