88R14338 KBB-F
 
  By: Sherman, Sr. H.B. No. 3874
 
 
 
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.  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 above 81
  percent and at or below 95 percent of the 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 operated under Chapter 33, Human
  Resources Code, and 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 in the Food Access Research Atlas published by that
  department; 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. 
         (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 and security; 
               (5)  predevelopment costs, including market studies
  and appraisals; 
               (6)  energy efficiency measures; and
               (7)  working capital for initial inventory and start-up
  costs.
         (i)  The department shall ensure that all independent
  grocery stores have access to the same supply chain options that are
  available to full-service chain grocery stores.
         SECTION 2.  Not later than December 1, 2023, the Department
  of Agriculture shall adopt rules to administer Chapter 26,
  Agriculture Code, as added by this Act.
         SECTION 3.  Not later than December 15, 2023, the Department
  of Agriculture shall contract with one or more nonprofit
  organizations or community development financial institutions as
  provided by Section 26.003, Agriculture Code, as added by this Act.
         SECTION 4.  Not later than January 15, 2024, the Department
  of Agriculture shall transfer money to the Texas grocery access
  investment fund.
         SECTION 5.  This Act takes effect September 1, 2023.