85R10628 JG-F
 
  By: Rodriguez of Travis, Capriglione, Lozano H.B. No. 3324
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of a grocery access investment fund
  program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 2306, Government Code, is amended by
  adding Subchapter BB to read as follows:
  SUBCHAPTER BB.  TEXAS GROCERY ACCESS INVESTMENT FUND
         Sec. 2306.6501.  DEFINITIONS. In this subchapter:
               (1)  "Community development financial institution" has
  the meaning assigned by 12 U.S.C. Section 4702.
               (2)  "Farm stand" has the meaning assigned by Section
  437.001, Health and Safety Code.
               (3)  "Financing" means a loan, grant, or forgivable
  loan.
               (4)  "Fund" means the Texas grocery access investment
  fund established by this subchapter.
               (5)  "Grant" means a grant provided under the program.
               (6)  "Grocery store" means a self-service retail store
  that primarily sells meat, seafood, fruits, vegetables, dairy
  products, dry groceries, household products, and sundries.
               (7)  "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.
               (8)  "Mobile market" means a mobile self-service retail
  store that primarily sells meat, seafood, fruits, vegetables, dairy
  products, and dry groceries.
               (9)  "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
  82 and 95 percent of the median family income for the state or the
  metropolitan statistical area.
               (10)  "Program" means the Texas grocery access
  investment fund program authorized by this subchapter.
               (11)  "Underserved area" means:
                     (A)  an area designated as underserved by the
  department by rule; or
                     (B)  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 the United States Department of Agriculture, as identified by
  the Food Access Research Atlas published by the United States
  Department of Agriculture.
         Sec. 2306.6502.  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, mobile markets, farm
  stands, and other eligible projects as determined by the department
  to increase food access in underserved low-income and
  moderate-income areas in this state.
         (b)  The Texas grocery access investment fund is a trust fund
  outside the treasury with the comptroller and administered by the
  department.
         (c)  The fund may be composed of:
               (1)  money received from a private financial
  institution, including a bank, credit union, or community
  development financial institution;
               (2)  federal, state, or private grants or loans;
               (3)  money received as a result of federal tax credits;
               (4)  money appropriated to the fund by the legislature;
               (5)  any other type of financial assistance; and
               (6)  interest received on money in the fund.
         Sec. 2306.6503.  ADMINISTRATION OF TEXAS GROCERY ACCESS
  INVESTMENT FUND PROGRAM. (a) The department shall contract with
  one or more of the following entities to administer the program
  through a public-private partnership:
               (1)  a nonprofit organization;
               (2)  a community development financial institution;
               (3)  a governmental entity;
               (4)  a private financial institution, including a bank
  or credit union;
               (5)  an academic institution; or
               (6)  any other entity considered appropriate by the
  department.
         (b)  Subject to rules, procedures, and guidelines adopted or
  established by the department, an entity 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.  Notwithstanding this
  subsection, the department may disburse a grant or loan that does
  not exceed $20,000 per project for an eligible project.
         (c)  The department shall establish rules or other
  procedures as necessary to administer this subchapter.
         (d)  The department may contract with an appropriate
  academic institution to establish monitoring and accountability
  mechanisms for projects receiving financing under the program.  If
  the department contracts with an institution under this subsection,
  the institution 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.  
  To be eligible for financing, a project must be located in an
  underserved area and primarily serve low-income or moderate-income
  areas. Projects eligible for financing include the construction,
  expansion, or rehabilitation of:
               (1)  a grocery store;
               (2)  a mobile market;
               (3)  a farm stand; and
               (4)  any other approved project that furthers the
  purposes of the program.
         (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 federal
  supplemental nutrition assistance program operated under 7 U.S.C.
  Section 2011 et seq. and the federal special supplemental nutrition
  program for women, infants, and children authorized by 42 U.S.C.
  Section 1786;
                     (B)  provide sufficient access to healthy food,
  such as by allocating an amount of retail space considered
  appropriate by the department 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 eligible projects to finance, an
  entity contracted under Subsection (a) shall consider:
               (1)  the following for each eligible project:
                     (A)  the level of need in the area to be served;
                     (B)  the amount of public funding required to make
  the project move forward, create an impact, or be competitive;
                     (C)  the degree to which the project will have a
  positive impact on food access and a positive economic impact on the
  underserved area, including by creating or retaining jobs for local
  residents;
                     (D)  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
                     (E)  any other criteria the contracted entity
  considers necessary or appropriate; and
               (2)  the following for each eligible project related to
  the construction of a new grocery store:
                     (A)  whether the grocery store is expected to be
  economically viable; and
                     (B)  whether the grocery store will have a
  positive impact on healthy food access in the underserved
  low-income or moderate-income area the project is intended to
  serve.
         (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;
               (7)  working capital for initial inventory and start-up
  costs; and
               (8)  any other costs associated with maintaining the
  infrastructure of the project.
         SECTION 2.  Not later than December 1, 2017, the Texas
  Department of Housing and Community Affairs shall adopt rules to
  administer Subchapter BB, Chapter 2306, Government Code, as added
  by this Act.
         SECTION 3.  Not later than December 15, 2017, the Texas
  Department of Housing and Community Affairs shall contract with one
  or more entities as provided by Section 2306.6503(a), Government
  Code, as added by this Act.
         SECTION 4.  Not later than January 15, 2018, the Texas
  Department of Housing and Community Affairs shall transfer money
  held by the department and described by Section 2306.6502(c),
  Government Code, as added by this Act, to the Texas grocery access
  investment fund.
         SECTION 5.  This Act takes effect September 1, 2017.