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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a grocery access investment fund |
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program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2306, Government Code, is amended by |
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adding Subchapter BB to read as follows: |
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SUBCHAPTER BB. TEXAS GROCERY ACCESS INVESTMENT FUND |
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Sec. 2306.6501. DEFINITIONS. In this subchapter: |
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(1) "Community development financial institution" has |
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the meaning assigned by 12 U.S.C. Section 4702. |
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(2) "Farm stand" has the meaning assigned by Section |
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437.001, Health and Safety Code. |
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(3) "Financing" means a loan, grant, or forgivable |
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loan. |
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(4) "Fund" means the Texas grocery access investment |
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fund established by this subchapter. |
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(5) "Grant" means a grant provided under the program. |
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(6) "Grocery store" means a self-service retail store |
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that primarily sells meat, seafood, fruits, vegetables, dairy |
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products, dry groceries, household products, and sundries. |
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(7) "Low-income area" means a census tract, based on |
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the most recent information published by the United States Bureau |
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of the Census, in which the poverty rate is 20 percent or higher or |
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the median family income is at or below 81 percent of the median |
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family income for the state or the metropolitan statistical area. |
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(8) "Mobile market" means a mobile self-service retail |
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store that primarily sells meat, seafood, fruits, vegetables, dairy |
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products, and dry groceries. |
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(9) "Moderate-income area" means a census tract, based |
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on the most recent information published by the United States |
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Bureau of the Census, in which the median family income is between |
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82 and 95 percent of the median family income for the state or the |
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metropolitan statistical area. |
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(10) "Program" means the Texas grocery access |
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investment fund program authorized by this subchapter. |
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(11) "Underserved area" means: |
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(A) an area designated as underserved by the |
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department by rule; or |
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(B) a census tract, based on the most recent |
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information published by the United States Bureau of the Census, |
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that has been determined to be an area with low supermarket access |
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by the United States Department of Agriculture, as identified by |
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the Food Access Research Atlas published by the United States |
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Department of Agriculture. |
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Sec. 2306.6502. TEXAS GROCERY ACCESS INVESTMENT FUND |
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PROGRAM. (a) The department, in cooperation with public and |
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private sector partners, shall establish the Texas grocery access |
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investment fund program to provide financing to construct, |
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rehabilitate, or expand grocery stores, mobile markets, farm |
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stands, and other eligible projects as determined by the department |
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to increase food access in underserved low-income and |
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moderate-income areas in this state. |
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(b) The Texas grocery access investment fund is a trust fund |
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outside the treasury with the comptroller and administered by the |
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department. |
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(c) The fund may be composed of: |
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(1) money received from a private financial |
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institution, including a bank, credit union, or community |
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development financial institution; |
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(2) federal, state, or private grants or loans; |
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(3) money received as a result of federal tax credits; |
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(4) money appropriated to the fund by the legislature; |
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(5) any other type of financial assistance; and |
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(6) interest received on money in the fund. |
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Sec. 2306.6503. ADMINISTRATION OF TEXAS GROCERY ACCESS |
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INVESTMENT FUND PROGRAM. (a) The department shall contract with |
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one or more of the following entities to administer the program |
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through a public-private partnership: |
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(1) a nonprofit organization; |
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(2) a community development financial institution; |
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(3) a governmental entity; |
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(4) a private financial institution, including a bank |
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or credit union; |
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(5) an academic institution; or |
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(6) any other entity considered appropriate by the |
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department. |
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(b) Subject to rules, procedures, and guidelines adopted or |
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established by the department, an entity contracted under |
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Subsection (a) shall establish program guidelines, raise matching |
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money, promote the program statewide, evaluate applicants, |
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underwrite and disburse grants and loans, and monitor compliance |
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with and the impact of the program. Notwithstanding this |
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subsection, the department may disburse a grant or loan that does |
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not exceed $20,000 per project for an eligible project. |
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(c) The department shall establish rules or other |
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procedures as necessary to administer this subchapter. |
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(d) The department may contract with an appropriate |
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academic institution to establish monitoring and accountability |
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mechanisms for projects receiving financing under the program. If |
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the department contracts with an institution under this subsection, |
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the institution shall submit a written report annually to the |
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legislature. The report must include information regarding the |
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projects that are funded, the geographic distribution of the |
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projects, the costs of start-up and administration of the program, |
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and the outcomes of the projects, including the number and types of |
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jobs created as a result of the program and the health impact of the |
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program. |
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(e) The department shall create project eligibility |
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guidelines and provide financing through an application process. |
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To be eligible for financing, a project must be located in an |
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underserved area and primarily serve low-income or moderate-income |
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areas. Projects eligible for financing include the construction, |
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expansion, or rehabilitation of: |
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(1) a grocery store; |
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(2) a mobile market; |
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(3) a farm stand; and |
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(4) any other approved project that furthers the |
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purposes of the program. |
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(f) An applicant for financing may be a for-profit or |
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nonprofit entity, including a sole proprietorship, partnership, |
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limited liability company, corporation, cooperative, nonprofit |
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organization, nonprofit community development entity, university, |
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or government entity. An applicant for financing must: |
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(1) demonstrate the capacity to successfully |
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implement the project and the likelihood that the project will be |
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economically self-sustaining; |
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(2) demonstrate the ability to repay any loan required |
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to be repaid; and |
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(3) agree, for a period of five years, to: |
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(A) accept benefits under the federal |
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supplemental nutrition assistance program operated under 7 U.S.C. |
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Section 2011 et seq. and the federal special supplemental nutrition |
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program for women, infants, and children authorized by 42 U.S.C. |
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Section 1786; |
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(B) provide sufficient access to healthy food, |
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such as by allocating an amount of retail space considered |
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appropriate by the department for the sale of perishable foods, |
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which may include whole grains, fresh produce, meat, poultry, |
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seafood, and fresh or frozen dairy products; |
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(C) comply with all data collection and reporting |
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requirements established by the department; |
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(D) promote the sale of fresh produce, including |
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Texas-grown fruits and vegetables, and fresh Texas-raised meat, |
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poultry, and seafood products; and |
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(E) promote the hiring of local residents. |
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(g) In determining which eligible projects to finance, an |
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entity contracted under Subsection (a) shall consider: |
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(1) the following for each eligible project: |
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(A) the level of need in the area to be served; |
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(B) the amount of public funding required to make |
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the project move forward, create an impact, or be competitive; |
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(C) the degree to which the project will have a |
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positive impact on food access and a positive economic impact on the |
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underserved area, including by creating or retaining jobs for local |
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residents; |
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(D) the degree to which the project will |
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participate in state and local health initiatives to educate |
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consumers on nutrition and promote healthy eating, including Texas |
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A&M AgriLife Extension Service initiatives; and |
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(E) any other criteria the contracted entity |
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considers necessary or appropriate; and |
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(2) the following for each eligible project related to |
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the construction of a new grocery store: |
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(A) whether the grocery store is expected to be |
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economically viable; and |
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(B) whether the grocery store will have a |
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positive impact on healthy food access in the underserved |
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low-income or moderate-income area the project is intended to |
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serve. |
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(h) A recipient of financing may use money received for the |
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following purposes: |
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(1) site acquisition and preparation; |
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(2) construction and build-out costs; |
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(3) equipment and furnishings; |
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(4) employee training or security; |
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(5) predevelopment costs, including market studies |
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and appraisals; |
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(6) energy efficiency measures; |
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(7) working capital for initial inventory and start-up |
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costs; and |
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(8) any other costs associated with maintaining the |
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infrastructure of the project. |
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SECTION 2. Not later than December 1, 2019, the Texas |
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Department of Housing and Community Affairs shall adopt rules to |
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administer Subchapter BB, Chapter 2306, Government Code, as added |
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by this Act. |
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SECTION 3. Not later than December 15, 2019, the Texas |
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Department of Housing and Community Affairs shall contract with one |
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or more entities as provided by Section 2306.6503(a), Government |
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Code, as added by this Act. |
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SECTION 4. Not later than January 15, 2020, the Texas |
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Department of Housing and Community Affairs shall transfer money |
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held by the department and described by Section 2306.6502(c), |
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Government Code, as added by this Act, to the Texas grocery access |
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investment fund. |
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SECTION 5. This Act takes effect September 1, 2019. |