Texas 2025 - 89th Regular

Texas House Bill HB821 Compare Versions

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1	1	By: Bernal H.B. No. 821
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the establishment of a grocery access investment fund
9	9	program.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Title 2, Agriculture Code, is amended by adding
12	12	Chapter 26 to read as follows:
13	13	CHAPTER 26. TEXAS GROCERY ACCESS INVESTMENT FUND
14	14	Sec. 26.001. DEFINITIONS. In this chapter:
15	15	(1) "Community development financial institution" has
16	16	the meaning assigned by 12 U.S.C. Section 4702.
17	17	(2) "Financing" means a loan, grant, or forgivable
18	18	loan.
19	19	(3) "Fund" means the Texas grocery access investment
20	20	fund established by this chapter.
21	21	(4) "Grocery store" means a self-service retail store
22	22	that primarily sells meat, seafood, fruits, vegetables, dairy
23	23	products, dry groceries, household products, and sundries.
24	24	(5) "Low-income area" means a census tract, based on
25	25	the most recent information published by the United States Bureau
26	26	of the Census, in which the poverty rate is 20 percent or higher or
27	27	the median family income is at or below 81 percent of the median
28	28	family income for the state or the metropolitan statistical area.
29	29	(6) "Moderate-income area" means a census tract, based
30	30	on the most recent information published by the United States
31	31	Bureau of the Census, in which the median family income is above 81
32	32	percent and at or below 95 percent of the median family income for
33	33	the state or the metropolitan statistical area.
34	34	(7) "Program" means the Texas grocery access
35	35	investment fund program authorized by this chapter.
36	36	(8) "Supplemental nutrition assistance program" means
37	37	the nutritional assistance program operated under Chapter 33, Human
38	38	Resources Code, and formerly referred to as the food stamp program.
39	39	(9) "Underserved area" means a census tract, based on
40	40	the most recent information published by the United States Bureau
41	41	of the Census, that has been determined to be an area with low
42	42	supermarket access by:
43	43	(A) the United States Department of Agriculture,
44	44	as identified in the Food Access Research Atlas published by that
45	45	department; or
46	46	(B) another governmental or philanthropic
47	47	healthy food initiative.
48	48	(10) "WIC program" means the federal special
49	49	supplemental nutrition program for women, infants, and children
50	50	authorized by 42 U.S.C. Section 1786.
51	51	Sec. 26.002. TEXAS GROCERY ACCESS INVESTMENT FUND PROGRAM.
52	52	(a) The department, in cooperation with public and private sector
53	53	partners, shall establish the Texas grocery access investment fund
54	54	program to provide financing to construct, rehabilitate, or expand
55	55	grocery stores in underserved low-income and moderate-income areas
56	56	in this state.
57	57	(b) The fund is a trust fund outside the treasury with the
58	58	comptroller and administered by the department.
59	59	(c) The fund is composed of:
60	60	(1) money appropriated to the fund by the legislature;
61	61	(2) federal, state, or private grants or loans
62	62	deposited to the credit of the fund;
63	63	(3) money received as a result of federal tax credits
64	64	deposited to the credit of the fund;
65	65	(4) other money deposited to the credit of the fund, as
66	66	provided by law; and
67	67	(5) any other type of financial assistance.
68	68	(d) The department may use money appropriated to the
69	69	department for the purposes of establishing the program authorized
70	70	by this chapter. Not less than 25 percent of the money in the fund
71	71	shall be used to provide grants or forgivable loans distributed
72	72	under the program. Not more than 10 percent of the money in the fund
73	73	may be reserved for administrative or operational costs of
74	74	operating the program, unless the costs are covered by another
75	75	budget or in-kind contributions.
76	76	(e) The department may deposit to the credit of the fund any
77	77	money available to the department for the purpose of the program,
78	78	including appropriated money.
79	79	Sec. 26.003. ADMINISTRATION OF TEXAS GROCERY ACCESS
80	80	INVESTMENT FUND PROGRAM. (a) The department shall contract with
81	81	one or more qualified nonprofit organizations or community
82	82	development financial institutions to administer the program
83	83	through a public-private partnership.
84	84	(b) A nonprofit organization or community development
85	85	financial institution contracted under Subsection (a) shall
86	86	establish program guidelines, raise matching funds, promote the
87	87	program statewide, evaluate applicants, underwrite and disburse
88	88	grants and loans, and monitor compliance with and the impact of the
89	89	program.
90	90	(c) The department shall establish rules or other
91	91	procedures as necessary to administer this chapter.
92	92	(d) The department shall establish monitoring and
93	93	accountability mechanisms for projects receiving financing under
94	94	the program and shall report annually to the legislature. The
95	95	report must include information regarding the projects that are
96	96	funded, the geographic distribution of the projects, the costs of
97	97	start-up and administration of the program, and the outcomes of the
98	98	projects, including the number and types of jobs created as a result
99	99	of the program and the health impact of the program.
100	100	(e) The department shall create project eligibility
101	101	guidelines and provide financing through an application process.
102	102	Projects must be located in an underserved area and primarily serve
103	103	low-income or moderate-income areas. Projects eligible for
104	104	financing include:
105	105	(1) constructing a new grocery store; and
106	106	(2) improving an existing grocery store, including
107	107	upgrading the store's infrastructure, renovating the store, or
108	108	expanding the store to improve the availability and quality of
109	109	fresh produce and other healthy food.
110	110	(f) An applicant for financing may be a for-profit or
111	111	nonprofit entity, including a sole proprietorship, partnership,
112	112	limited liability company, corporation, cooperative, nonprofit
113	113	organization, nonprofit community development entity, university,
114	114	or government entity. An applicant for financing must:
115	115	(1) demonstrate the capacity to successfully
116	116	implement the project and the likelihood that the project will be
117	117	economically self-sustaining;
118	118	(2) demonstrate the ability to repay any loan required
119	119	to be repaid; and
120	120	(3) agree, for a period of five years, to:
121	121	(A) accept benefits under the WIC program and the
122	122	supplemental nutrition assistance program;
123	123	(B) allocate 30 percent of the retail space for
124	124	the sale of perishable foods, which may include whole grains, fresh
125	125	produce, meat, poultry, seafood, and fresh or frozen dairy
126	126	products;
127	127	(C) comply with all data collection and reporting
128	128	requirements established by the department;
129	129	(D) promote the sale of fresh produce, including
130	130	Texas-grown fruits and vegetables, and fresh Texas-raised meat,
131	131	poultry, and seafood products; and
132	132	(E) promote the hiring of local residents.
133	133	(g) In determining which qualified projects to finance, the
134	134	department shall consider:
135	135	(1) the level of need in the area to be served;
136	136	(2) the amount of public funding required to make the
137	137	project move forward, create impact, or be competitive;
138	138	(3) the degree to which the project will have a
139	139	positive economic impact on the underserved area, including by
140	140	creating or retaining jobs for local residents;
141	141	(4) the degree to which the project will participate
142	142	in state and local health initiatives to educate consumers on
143	143	nutrition and promote healthy eating, including Texas A&M AgriLife
144	144	Extension Service initiatives; and
145	145	(5) any other criteria the department considers
146	146	necessary or appropriate.
147	147	(h) A recipient of financing may use funds received for the
148	148	following purposes:
149	149	(1) site acquisition and preparation;
150	150	(2) construction and build-out costs;
151	151	(3) equipment and furnishings;
152	152	(4) employee training and security;
153	153	(5) predevelopment costs, including market studies
154	154	and appraisals;
155	155	(6) energy efficiency measures; and
156	156	(7) working capital for initial inventory and start-up
157	157	costs.
158	158	SECTION 2. Not later than December 1, 2025, the Department
159	159	of Agriculture shall adopt rules to administer Chapter 26,
160	160	Agriculture Code, as added by this Act.
161	161	SECTION 3. Not later than December 15, 2025, the Department
162	162	of Agriculture shall contract with one or more nonprofit
163	163	organizations or community development financial institutions as
164	164	provided by Section 26.003, Agriculture Code, as added by this Act.
165	165	SECTION 4. Not later than January 15, 2026, the Department
166	166	of Agriculture shall transfer money to the Texas grocery access
167	167	investment fund.
168	168	SECTION 5. This Act takes effect September 1, 2025.