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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the community development grocery |
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store grant program and to the use of money from the Texas |
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Enterprise Fund for the program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 481, Government Code, is amended by |
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adding Subchapter HH to read as follows: |
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SUBCHAPTER HH. COMMUNITY DEVELOPMENT GROCERY STORE GRANT PROGRAM |
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Sec. 481.701. DEFINITIONS. In this subchapter: |
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(1) "Food desert" means a census tract, based on the |
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most recent information published by the United States Bureau of |
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the Census, in which: |
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(A) the poverty rate is 20 percent or higher or |
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the median family income is at or below 80 percent of the area |
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median family income; and |
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(B) at least 500 people or at least 33 percent of |
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the census area's population reside more than: |
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(i) one mile from a grocery store, in the |
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case of a census tract other than a rural census tract; or |
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(ii) 10 miles from a grocery store, in the |
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case of a rural census tract. |
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(2) "Grocery store" means a store that has at least: |
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(A) 66 percent of the store's retail space |
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reserved for the sale of food products; |
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(B) 50 percent of the store's food retail space |
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reserved for the sale of non-prepared foods or foods intended for |
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home preparation and consumption; and |
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(C) 30 percent of the store's food retail space |
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reserved for the sale of perishable foods, including dairy |
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products, fresh produce, fresh meats, poultry, fish, and frozen |
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foods. |
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(3) "Program" means the community development grocery |
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store grant program established under this subchapter. |
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Sec. 481.702. ESTABLISHMENT OF GRANT PROGRAM. (a) The |
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office shall establish and administer the community development |
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grocery store grant program to assist communities by awarding |
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grants to business entities proposing to operate a grocery store |
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that will be located in a food desert. |
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(b) The office may use any available revenue, including |
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legislative appropriations, appropriation transfers from the |
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trusteed programs within the office of the governor, including |
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authorized appropriations from the Texas Enterprise Fund, and any |
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other statutorily authorized and appropriate funding sources |
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transferred from the trusteed programs within the office of the |
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governor, for the purposes of this subchapter. |
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Sec. 481.703. ELIGIBILITY FOR GRANT. To be eligible to |
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receive a grant under this subchapter, a business entity must: |
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(1) demonstrate significant levels of planned capital |
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investment at the proposed location, as determined by office rule; |
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(2) demonstrate the support of the governing officials |
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of the local governmental entities in which the grocery store is |
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proposed to be located, particularly in the form of local economic |
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development incentive offers; and |
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(3) be well established and financially sound. |
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Sec. 481.704. APPLICATION. A small business may apply for a |
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grant under this subchapter by submitting an application to the |
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office in the form and manner prescribed by the office. |
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Sec. 481.705. GRANT AGREEMENT. (a) Before awarding a grant |
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under this subchapter, the office shall enter into a written |
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agreement with the business entity to be awarded the grant |
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specifying that if the grocery store closes before the fourth |
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anniversary of the date on which the grant is awarded, the |
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recipient shall repay the grant and any related interest to the |
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state at the agreed rate and on the agreed terms. |
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(b) A grant agreement for a grant awarded under this |
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subchapter must contain a provision stating that: |
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(1) the grocery store will provide health insurance |
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benefits to its full-time employees; and |
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(2) the total average wages for new jobs at the grocery |
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store must meet or exceed the average wage for the same or similar |
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type of job in the county in which the grocery store will be |
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located. |
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Sec. 481.706. GIFTS, GRANTS, AND DONATIONS. The office |
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shall solicit and accept gifts and grants for the purposes of this |
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subchapter. The office shall use gifts and grants received for the |
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purposes of this subchapter before using any other revenue. |
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Sec. 481.707. GRANT PROGRAM RULES. The executive director |
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of the office shall adopt rules necessary to administer and |
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implement this subchapter. |
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SECTION 2. Section 481.078, Government Code, is amended by |
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adding Subsection (d-2) to read as follows: |
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(d-2) The fund may be used for the community development |
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grocery store grant program under Subchapter HH. The governor may |
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transfer appropriations from the fund to the office for purposes of |
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administering the community development grocery store grant |
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program. Subsections (e), (f), (f-1), (f-2), (g), (h), (h-1), (i), |
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and (j) and Section 481.080 do not apply to a grant awarded for a |
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purpose specified by this subsection. |
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SECTION 3. Section 481.079, Government Code, is amended by |
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adding Subsection (a-2) to read as follows: |
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(a-2) For grants awarded for a purpose specified by Section |
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481.078(d-2), the report must include only the amount and recipient |
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of each grant. |
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SECTION 4. As soon as practicable after the effective date |
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of this Act, the executive director of the Texas Economic |
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Development and Tourism Office shall adopt rules for the |
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establishment of the community development grocery store grant |
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program under Subchapter HH, Chapter 481, Government Code, as added |
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by this Act. |
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SECTION 5. This Act takes effect September 1, 2025. |