This bill would amend the Agriculture Code by adding Chapter 26, regarding the Texas Grocery Access Investment Fund.
The bill would require the Texas Department of Agriculture (TDA), in cooperation with public and private sector partners, to create the Texas Grocery Access Investment Fund Program. The bill would also establish the the Texas Grocery Access Investment Fund as a trust fund outside the treasury with the Comptroller, administered by TDA. The fund would consist of money appropriated by the Legislature; federal, state, and private grants and loans; federal tax credits; and other financial assistance. The bill would require no less than 25 percent of the money in the fund to be used to provide grants or forgivable loans distributed by the program. The bill would also require that no more than 10 percent of the money in the fund may be used for administrative or operational costs for the program, unless costs would be covered by other budget or in-kind-contributions.
The program would provide financing for construction of new grocery stores and renovation, expansion, and infrastructure upgrades of existing stores. The grocery stores would be located in an underserved community, and would primarily serve low and moderate income areas, as defined in the bill. TDA would adopt rules to administer the program by December 1, 2023.
The bill would require TDA to contract with one or more qualified nonprofit organizations or community development financial institutions to administer the program through a public-private partnership by December 15, 2023. The organizations or institutions would establish program guidelines, raise matching funds, promote the program statewide, evaluate applicants, underwrite and disburse grants and loans, and monitor compliance and impact.
Applicants for financing would be required to meet certain requirements, including agreeing, for five years, to accept SNAP and WIC benefits, allocate 30 percent of food retail space for the sale of perishable foods, comply with TDA's reporting requirements, and promote the hiring of local residents. TDA would be required to transfer funds to the Texas Grocery Access Investment Fund by January 15, 2024.
The bill would require TDA to report annually to the Legislature on the projects funded, geographic distribution of the projects, costs of startup and administration of the program, and the outcomes.
Based on information provided by the Comptroller of Public Accounts (CPA), the bill would have no revenue implications and the amount and timing of state appropriations, federal, state, and private grants and loans; federal tax credits; and other financial assistance that would be received in the Texas Grocery Access Investment Fund are unknown.
The cost analysis provided by TDA reflected funding needs for grant issuances each fiscal year. Based on information provided by TDA, this analysis assumes that additional staff would be needed if funds were made available for the program. It is assumed that TDA would need 1.0 FTE to administer grant awards for the program if funding would be provided in amounts up to $10,000,000 each fiscal year.
Costs for the position would include operating equipment and expenses, professional services expenses and onetime rule making costs to implement the provisions of the bill. This analysis assumes personnel costs (salary, benefits, and operating costs) for the FTEs would be $100,539 in fiscal year 2024 and $94,267 in subsequent fiscal years through 2028. In addition, there would be an estimated one-time rule making cost of $15,903 in 2024. If funds were provided to the new fund in an amount sufficient to cover administrative costs under the 10 percent administrative cap, it is assumed the fund would be used for that purpose. Otherwise, this analysis assumes General Revenue would be required to cover those costs.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
No fiscal implication to units of local government is anticipated.