Texas 2025 - 89th Regular

Texas Senate Bill SB1305 Compare Versions

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

Old	New	Differences
1	1	89R3454 SCF-D
2	2	By: Cook S.B. No. 1305
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of a grocery access investment fund
10	10	program.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Title 2, Agriculture Code, is amended by adding
13	13	Chapter 26 to read as follows:
14	14	CHAPTER 26. TEXAS GROCERY ACCESS INVESTMENT FUND
15	15	Sec. 26.001. DEFINITIONS. In this chapter:
16	16	(1) "Community development financial institution" has
17	17	the meaning assigned by 12 U.S.C. Section 4702.
18	18	(2) "Financing" means a loan, grant, or forgivable
19	19	loan.
20	20	(3) "Fund" means the Texas grocery access investment
21	21	fund established by this chapter.
22	22	(4) "Grocery store" means a self-service retail store
23	23	that primarily sells meat, seafood, fruits, vegetables, dairy
24	24	products, dry groceries, household products, and sundries.
25	25	(5) "Low-income area" means a census tract, based on
26	26	the most recent information published by the United States Bureau
27	27	of the Census, in which the poverty rate is 20 percent or higher or
28	28	the median family income is at or below 81 percent of the median
29	29	family income for the state or the metropolitan statistical area.
30	30	(6) "Moderate-income area" means a census tract, based
31	31	on the most recent information published by the United States
32	32	Bureau of the Census, in which the median family income is above 81
33	33	percent and at or below 95 percent of the median family income for
34	34	the state or the metropolitan statistical area.
35	35	(7) "Program" means the Texas grocery access
36	36	investment fund program authorized by this chapter.
37	37	(8) "Supplemental nutrition assistance program" means
38	38	the nutritional assistance program operated under Chapter 33, Human
39	39	Resources Code, and formerly referred to as the food stamp program.
40	40	(9) "Underserved area" means a census tract, based on
41	41	the most recent information published by the United States Bureau
42	42	of the Census, that has been determined to be an area with low
43	43	supermarket access by:
44	44	(A) the United States Department of Agriculture,
45	45	as identified in the Food Access Research Atlas published by that
46	46	department; or
47	47	(B) another governmental or philanthropic
48	48	healthy food initiative.
49	49	(10) "WIC program" means the federal special
50	50	supplemental nutrition program for women, infants, and children
51	51	authorized by 42 U.S.C. Section 1786.
52	52	Sec. 26.002. TEXAS GROCERY ACCESS INVESTMENT FUND PROGRAM.
53	53	(a) The department, in cooperation with public and private sector
54	54	partners, shall establish the Texas grocery access investment fund
55	55	program to provide financing to construct, rehabilitate, or expand
56	56	grocery stores in underserved low-income and moderate-income areas
57	57	in this state.
58	58	(b) The fund is a trust fund outside the treasury with the
59	59	comptroller and administered by the department.
60	60	(c) The fund is composed of:
61	61	(1) money appropriated to the fund by the legislature;
62	62	(2) federal, state, or private grants or loans
63	63	deposited to the credit of the fund;
64	64	(3) money received as a result of federal tax credits
65	65	deposited to the credit of the fund;
66	66	(4) other money deposited to the credit of the fund, as
67	67	provided by law; and
68	68	(5) any other type of financial assistance.
69	69	(d) The department may use money appropriated to the
70	70	department for the purposes of establishing the program authorized
71	71	by this chapter. Not less than 25 percent of the money in the fund
72	72	shall be used to provide grants or forgivable loans distributed
73	73	under the program. Not more than 10 percent of the money in the fund
74	74	may be reserved for administrative or operational costs of
75	75	operating the program, unless the costs are covered by another
76	76	budget or in-kind contributions.
77	77	(e) The department may deposit to the credit of the fund any
78	78	money available to the department for the purpose of the program,
79	79	including appropriated money.
80	80	Sec. 26.003. ADMINISTRATION OF TEXAS GROCERY ACCESS
81	81	INVESTMENT FUND PROGRAM. (a) The department shall contract with
82	82	one or more qualified nonprofit organizations or community
83	83	development financial institutions to administer the program
84	84	through a public-private partnership.
85	85	(b) A nonprofit organization or community development
86	86	financial institution contracted under Subsection (a) shall
87	87	establish program guidelines, raise matching funds, promote the
88	88	program statewide, evaluate applicants, underwrite and disburse
89	89	grants and loans, and monitor compliance with and the impact of the
90	90	program.
91	91	(c) The department shall establish rules or other
92	92	procedures as necessary to administer this chapter.
93	93	(d) The department shall establish monitoring and
94	94	accountability mechanisms for projects receiving financing under
95	95	the program and shall report annually to the legislature. The
96	96	report must include information regarding the projects that are
97	97	funded, the geographic distribution of the projects, the costs of
98	98	start-up and administration of the program, and the outcomes of the
99	99	projects, including the number and types of jobs created as a result
100	100	of the program and the health impact of the program.
101	101	(e) The department shall create project eligibility
102	102	guidelines and provide financing through an application process.
103	103	Projects must be located in an underserved area and primarily serve
104	104	low-income or moderate-income areas. Projects eligible for
105	105	financing include:
106	106	(1) constructing a new grocery store; and
107	107	(2) improving an existing grocery store, including
108	108	upgrading the store's infrastructure, renovating the store, or
109	109	expanding the store to improve the availability and quality of
110	110	fresh produce and other healthy food.
111	111	(f) An applicant for financing may be a for-profit or
112	112	nonprofit entity, including a sole proprietorship, partnership,
113	113	limited liability company, corporation, cooperative, nonprofit
114	114	organization, nonprofit community development entity, university,
115	115	or government entity. An applicant for financing must:
116	116	(1) demonstrate the capacity to successfully
117	117	implement the project and the likelihood that the project will be
118	118	economically self-sustaining;
119	119	(2) demonstrate the ability to repay any loan required
120	120	to be repaid; and
121	121	(3) agree, for a period of five years, to:
122	122	(A) accept benefits under the WIC program and the
123	123	supplemental nutrition assistance program;
124	124	(B) allocate 30 percent of the retail space for
125	125	the sale of perishable foods, which may include whole grains, fresh
126	126	produce, meat, poultry, seafood, and fresh or frozen dairy
127	127	products;
128	128	(C) comply with all data collection and reporting
129	129	requirements established by the department;
130	130	(D) promote the sale of fresh produce, including
131	131	Texas-grown fruits and vegetables, and fresh Texas-raised meat,
132	132	poultry, and seafood products; and
133	133	(E) promote the hiring of local residents.
134	134	(g) In determining which qualified projects to finance, the
135	135	department shall consider:
136	136	(1) the level of need in the area to be served;
137	137	(2) the amount of public funding required to make the
138	138	project move forward, create impact, or be competitive;
139	139	(3) the degree to which the project will have a
140	140	positive economic impact on the underserved area, including by
141	141	creating or retaining jobs for local residents;
142	142	(4) the degree to which the project will participate
143	143	in state and local health initiatives to educate consumers on
144	144	nutrition and promote healthy eating, including Texas A&M AgriLife
145	145	Extension Service initiatives; and
146	146	(5) any other criteria the department considers
147	147	necessary or appropriate.
148	148	(h) A recipient of financing may use funds received for the
149	149	following purposes:
150	150	(1) site acquisition and preparation;
151	151	(2) construction and build-out costs;
152	152	(3) equipment and furnishings;
153	153	(4) employee training and security;
154	154	(5) predevelopment costs, including market studies
155	155	and appraisals;
156	156	(6) energy efficiency measures; and
157	157	(7) working capital for initial inventory and start-up
158	158	costs.
159	159	SECTION 2. Not later than December 1, 2025, the Department
160	160	of Agriculture shall adopt rules to administer Chapter 26,
161	161	Agriculture Code, as added by this Act.
162	162	SECTION 3. Not later than December 15, 2025, the Department
163	163	of Agriculture shall contract with one or more nonprofit
164	164	organizations or community development financial institutions as
165	165	provided by Section 26.003, Agriculture Code, as added by this Act.
166	166	SECTION 4. Not later than January 15, 2026, the Department
167	167	of Agriculture shall transfer money to the Texas grocery access
168	168	investment fund.
169	169	SECTION 5. This Act takes effect September 1, 2025.