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SECTION 1. Title 2,
Agriculture Code, is amended by adding Chapter 26 to read as follows:
CHAPTER 26. TEXAS GROCERY
ACCESS INVESTMENT FUND
Sec. 26.001.
DEFINITIONS. In this chapter:
(1) "Financing"
means loans and grants and/or forgivable loans.
(2) "Fund"
means the Texas grocery access investment fund established by this chapter.
(3) "Grocery
store" means a for-profit or not-for
profit self-service retail establishment that primarily sells meat,
seafood, fruits, vegetables, dairy products, dry groceries, household
products, and sundries.
(4) "Low Income
area" means a census tract (as reported in the most recently completed
decennial census published by the United States Bureau of the Census) that
has a poverty rate of at least 20 percent or in which the median family
income does not exceed 81 percent of the greater of the statewide or metropolitan
median family income.
(5) "Moderate Income
area" means a census tract in which the median family income is
between 81 and 95 percent of the area median family income.
(6) "Program"
means the Texas grocery access investment fund program authorized by this
chapter.
(7) "Supplemental
nutrition assistance program" means the nutritional assistance program
formerly referred to as the food stamp program.
(8) "Underserved Community"
means a census tract determined to be an area with low supermarket access
by either the U.S. Department of Agriculture (USDA), as identified in the
USDA's Food Access Research Atlas, or through a methodology that has been
adopted for use by another governmental or philanthropic healthy food
initiative.
(9) "WIC
program" means the federal special supplemental nutrition program for
women, infants, and children authorized by 42 U.S.C. Section 1786.
Sec. 26.002. TEXAS
GROCERY ACCESS INVESTMENT FUND PROGRAM.
(a) The Texas Department
of Agriculture, in cooperation with public and private sector partners,
shall establish the Texas Grocery Access Investment Fund program to provide
Financing to construct, rehabilitate or expand grocery stores in
Underserved Communities in urban and rural Low and Moderate Income Areas.
(b) The Texas Grocery
Access Investment Fund shall be comprised of money appropriated by the
legislature, as well as federal, state, or private grants or loans, federal
tax credits, or other type of financial assistance, for the construction or
expansion of grocery stores to expand access to fresh produce and other
nutritious foods in Underserved Communities.
(c) Monies in the Fund shall be expended upon
appropriation by the Legislature, and shall be used, to the extent
practicable, to leverage other forms of financing. No less than 25
percent of the monies in the Fund shall be expended in the form of grants
or forgivable loans.
(See Sec. 26.003 below)
Sec. 26.003.
ADMINISTRATION OF THE TEXAS GROCERY ACCESS INVESTMENT FUND. (a) The Texas
Department of Agriculture shall contract with one or more qualified
nonprofit organizations or community development financial institutions to
administer this program through a public-private partnership. The
nonprofit organizations or community development financial institution will
establish program guidelines, raise matching funds, promote the program
statewide, evaluate applicants, underwrite and disburse grants and loans,
and monitor compliance and impact.
The Texas Department of
Agriculture shall develop rules, regulations, or other procedures to carry
out the program to meet the intent of this Chapter.
No more than 10 percent of
the monies in the Fund shall be reserved for administrative and operational
costs to manage the program, unless those costs are provided for from other
budgets or in-kind resources.
(b) The Texas Department
of Agriculture shall establish monitoring and accountability mechanisms for
projects receiving Financing and shall report annually to the Legislature
on the projects funded, the geographic distribution of the projects, the
costs of startup and administering the program, and the outcomes, including
the number and type of jobs created and health impact associated with the
program.
(c) Project eligibility
for Financing. The Texas Department of Agriculture shall create
eligibility guidelines and provide Financing through an application
process.
Projects must be located
in an Underserved Community and primarily serve Low or Moderate Income
Areas. Projects eligible for financing are:
(1) Construction of new
grocery stores and
(2) Store renovations,
expansion, and infrastructure upgrades that improve the availability and
quality of fresh produce and other healthy foods.
(d) Qualifications for
receiving Financing. An applicant for Financing may be a for-profit or
not-for profit entity, including but not limited to, a sole proprietorship,
partnership, limited liability company, corporation, cooperative, nonprofit
organization, nonprofit community development entity, university, or
government entity. An applicant for Financing must:
(1) Demonstrate the
capacity to successfully implement the project and the likelihood that the
project will be economically self-sustaining;
(2) Demonstrate the
ability to repay the debt; and
(3) Agree, for period of
at least [five] years, to comply with the following conditions:
(4) To accept
Supplemental Nutrition Assistance Program (SNAP) benefits.
(5) To apply to accept Special Supplemental Nutrition Program for
Women, Infants and Children (WIC) benefits and accept WIC benefits, if approved.
(6) To allocate at least
30 percent of food retail space for
the sale of perishable foods, which may include fresh or frozen dairy,
fresh produce, whole grains, fresh meats, poultry, and fish.
(7) To comply with all
data collection and reporting requirements established by the Texas
Department of Agriculture.
(8) The degree to which the entity's proposed grocery
store would promote the sale of fresh produce, including Texas-grown
fruits and vegetables; and Texas-raised fresh meat, poultry and seafood
products.
(9) To promote the hiring
of local residents.
(e) Criteria for
selecting projects for Financing. In determining which qualified projects
to finance, the Texas Department of Agriculture shall consider:
(1) The level of need in
the area to be served;
(2) The degree to which
the project requires an investment of public financing to move forward,
create impact, or be competitive, and the level of need in the area to be
served;
(3) The degree to which
the project will have a positive economic impact on the underserved
community, including by creating or retaining jobs for local residents;
(4) The degree to which
the project will work with state and
local health department initiatives
or Texas Agri-Life to educate consumers on nutrition and promote healthier
eating; and
(5) Other criteria the
department/agency determines to be consistent with the purposes of
this Chapter.
(f) Eligible costs.
Financing made available for projects may be used for the following
purposes:
(1) Site acquisition and
preparation;
(2) Construction and
build-out costs;
(3) Equipment and
furnishings;
(4) Workforce training or
security;
(5) Pre-development costs
such as market studies and appraisals;
(6) Energy-efficiency
measures; and
(7) Working capital for
first-time inventory and start-up costs.
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SECTION 1. Title 2,
Agriculture Code, is amended by adding Chapter 26 to read as follows:
CHAPTER 26. TEXAS GROCERY
ACCESS INVESTMENT FUND
Sec. 26.001.
DEFINITIONS. In this chapter:
(1) "Community development financial institution" has
the meaning assigned by 12 U.S.C. Section 4702.
(2) "Financing"
means a loan, grant, or forgivable loan.
(3) "Fund"
means the Texas grocery access investment fund established by this chapter.
(4) "Grocery
store" means a self-service retail store that primarily sells meat,
seafood, fruits, vegetables, dairy products, dry groceries, household
products, and sundries.
(5) "Low-income
area" means a census tract, based on the most recent information
published by the United States Bureau of the Census, in which the poverty
rate is 20 percent or higher or the median family income is at or below 81
percent of the median family income for the state or the metropolitan
statistical area.
(6) "Moderate-income
area" means a census tract, based on
the most recent information published by the United States Bureau of the
Census, in which the median family income is between 81 and 95
percent of the area median family income for
the state or the metropolitan statistical area.
(7) "Program"
means the Texas grocery access investment fund program authorized by this
chapter.
(8) "Supplemental
nutrition assistance program" means the nutritional assistance program
formerly referred to as the food stamp program.
(9) "Underserved area"
means a census tract, based on the most
recent information published by the United States Bureau of the Census,
that has been determined to be an area with low supermarket access by:
(A) the United States
Department of Agriculture, as identified by the Food Access Research Atlas
published by the United States Department of Agriculture; or
(B) another governmental
or philanthropic healthy food initiative.
(10) "WIC
program" means the federal special supplemental nutrition program for
women, infants, and children authorized by 42 U.S.C. Section 1786.
Sec. 26.002. TEXAS
GROCERY ACCESS INVESTMENT FUND PROGRAM. (a) The department, in cooperation
with public and private sector partners, shall establish the Texas grocery
access investment fund program to provide financing to construct,
rehabilitate, or expand grocery stores in underserved low-income and
moderate-income areas in this state.
(b) The fund is a trust fund outside the treasury with the
comptroller and administered by the department.
(c) The fund is composed
of:
(1) money appropriated to
the fund by the legislature;
(2) federal, state, or
private grants or loans;
(3) money received as a
result of federal tax credits; and
(4) any other type of
financial assistance.
(d) Money in the fund may be appropriated only to the
department for the purposes of establishing the program authorized by this
chapter. Not less than 25 percent of the money in the fund shall be
used to provide grants or forgivable loans distributed under the program.
Not more than 10 percent
of the money in the fund may be reserved for administrative or operational
costs of operating the program, unless the costs are covered by another
budget or in-kind contributions.
Sec. 26.003.
ADMINISTRATION OF TEXAS GROCERY ACCESS INVESTMENT FUND PROGRAM. (a) The
department shall contract with one or more qualified nonprofit
organizations or community development financial institutions to administer
the program through a public-private partnership.
(b) A nonprofit
organization or community development financial institution contracted
under Subsection (a) shall establish program guidelines, raise matching
funds, promote the program statewide, evaluate applicants, underwrite and
disburse grants and loans, and monitor compliance with and the impact of
the program.
(c) The department shall
establish rules or other procedures as necessary to administer this
chapter.
(See Section 26.002 above)
(d) The department shall
establish monitoring and accountability mechanisms for projects receiving
financing under the program and shall report annually to the legislature.
The report must include information regarding the projects that are funded,
the geographic distribution of the projects, the costs of start-up and administration
of the program, and the outcomes of the projects, including the number and
types of jobs created as a result of the program and the health impact of
the program.
(e) The department shall
create project eligibility guidelines and provide financing through an
application process.
Projects must be located
in an underserved area and primarily serve low-income or moderate-income
areas. Projects eligible for financing include:
(1) constructing a new
grocery store; and
(2) improving an existing
grocery store, including upgrading the store's infrastructure, renovating
the store, or expanding the store to improve the availability and quality
of fresh produce and other healthy food.
(f) An applicant for
financing may be a for-profit or nonprofit entity, including a sole
proprietorship, partnership, limited liability company, corporation,
cooperative, nonprofit organization, nonprofit community development
entity, university, or government entity. An applicant for financing must:
(1) demonstrate the
capacity to successfully implement the project and the likelihood that the
project will be economically self-sustaining;
(2) demonstrate the
ability to repay any loan required to be
repaid; and
(3) agree, for a period
of five years, to:
(A) accept benefits under
the WIC program and the supplemental nutrition assistance program;
(B) allocate 30 percent
of the retail space for the sale of
perishable foods, which may include whole grains, fresh produce, meat,
poultry, seafood, and fresh or frozen dairy products;
(C) comply with all data
collection and reporting requirements established by the department;
(D) promote the sale of
fresh produce, including Texas-grown fruits and vegetables, and fresh
Texas-raised meat, poultry, and seafood products; and
(E) promote the hiring of
local residents.
(g) In determining which
qualified projects to finance, the department shall consider:
(1) the level of need in
the area to be served;
(2) the amount of public
funding required to make the project move forward, create impact, or be
competitive;
(3) the degree to which
the project will have a positive economic impact on the underserved area,
including by creating or retaining jobs for local residents;
(4) the degree to which
the project will participate in
state and local health initiatives to educate consumers on nutrition and
promote healthy eating, including Texas A&M AgriLife Extension Service initiatives; and
(5) any other criteria
the department considers necessary or
appropriate.
(h) A recipient of
financing may use funds received for the following purposes:
(1) site acquisition and
preparation;
(2) construction and
build-out costs;
(3) equipment and
furnishings;
(4) employee training or
security;
(5) predevelopment costs,
including market studies and appraisals;
(6) energy efficiency
measures; and
(7) working capital for
initial inventory and start-up costs.
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