Bill Text: TX SB1590 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the establishment of a Texas grocery access investment fund program.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2015-04-16 - Co-author authorized [SB1590 Detail]
Download: Texas-2015-SB1590-Introduced.html
By: Zaffirini, West | S.B. No. 1590 | |
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relating to the establishment of a Texas 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)"Financing" means loans and grants and/or | ||
forgivable loans. | ||
(2)"Fund" means the Texas grocery access | ||
investment fund established by this chapter. | ||
(3)"Grocery store" means a for-profit or | ||
not-for profit self-service retail establishment that primarily | ||
sells meat, seafood, fruits, vegetables, dairy products, dry | ||
groceries, household products, and sundries. | ||
(4)"Low Income area" means a census tract (as | ||
reported in the most recently completed decennial census published | ||
by the United States Bureau of the Census) that has a poverty rate | ||
of at least 20 percent or in which the median family income does not | ||
exceed 81 percent of the greater of the statewide or metropolitan | ||
median family income. | ||
(5)"Moderate Income area" means a census | ||
tract in which the median family income is between 81 and 95 percent | ||
of the area median family income. | ||
(6)"Program" means the Texas grocery access | ||
investment fund program authorized by this chapter. | ||
(7)"Supplemental nutrition assistance | ||
program" means the nutritional assistance program formerly | ||
referred to as the food stamp program. | ||
(8)"Underserved Community" means a census | ||
tract determined to be an area with low supermarket access by either | ||
the U.S. Department of Agriculture (USDA), as identified in the | ||
USDA's Food Access Research Atlas, or through a methodology that | ||
has been adopted for use by another governmental or philanthropic | ||
healthy food initiative. | ||
(9)"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 Texas Department of Agriculture, 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 | ||
Communities in urban and rural Low and Moderate Income Areas. | ||
(b) The Texas Grocery Access Investment Fund shall be | ||
comprised of money appropriated by the legislature, as well as | ||
federal, state, or private grants or loans, federal tax credits, or | ||
other type of financial assistance, for the construction or | ||
expansion of grocery stores to expand access to fresh produce and | ||
other nutritious foods in Underserved Communities. | ||
(c) Monies in the Fund shall be expended upon appropriation | ||
by the Legislature, and shall be used, to the extent practicable, to | ||
leverage other forms of financing. No less than 25 percent of the | ||
monies in the Fund shall be expended in the form of grants or | ||
forgivable loans. | ||
Sec. 26.003. ADMINISTRATION OF THE TEXAS GROCERY ACCESS | ||
INVESTMENT FUND. (a) The Texas Department of Agriculture shall | ||
contract with one or more qualified nonprofit organizations or | ||
community development financial institutions to administer this | ||
program through a public-private partnership. The nonprofit | ||
organizations or community development financial institution will | ||
establish program guidelines, raise matching funds, promote the | ||
program statewide, evaluate applicants, underwrite and disburse | ||
grants and loans, and monitor compliance and impact. The Texas | ||
Department of Agriculture shall develop rules, regulations, or | ||
other procedures to carry out the program to meet the intent of this | ||
Chapter. No more than 10 percent of the monies in the Fund shall be | ||
reserved for administrative and operational costs to manage the | ||
program, unless those costs are provided for from other budgets or | ||
in-kind resources. | ||
(b) The Texas Department of Agriculture shall establish | ||
monitoring and accountability mechanisms for projects receiving | ||
Financing and shall report annually to the Legislature on the | ||
projects funded, the geographic distribution of the projects, the | ||
costs of startup and administering the program, and the outcomes, | ||
including the number and type of jobs created and health impact | ||
associated with the program. | ||
(c) Project eligibility for Financing. The Texas Department | ||
of Agriculture shall create eligibility guidelines and provide | ||
Financing through an application process. Projects must be located | ||
in an Underserved Community and primarily serve Low or Moderate | ||
Income Areas. Projects eligible for financing are: | ||
(1) Construction of new grocery stores and | ||
(2) Store renovations, expansion, and infrastructure | ||
upgrades that improve the availability and quality of fresh produce | ||
and other healthy foods. | ||
(d) Qualifications for receiving Financing. An applicant | ||
for Financing may be a for-profit or not-for profit entity, | ||
including but not limited to, 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 the debt; and | ||
(3) Agree, for period of at least [ |
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comply with the following conditions: | ||
(4) To accept Supplemental Nutrition Assistance | ||
Program (SNAP) benefits. | ||
(5) To apply to accept Special Supplemental Nutrition | ||
Program for Women, Infants and Children (WIC) benefits and accept | ||
WIC benefits, if approved. | ||
(6) To allocate at least 30 percent of food retail | ||
space for the sale of perishable foods, which may include fresh or | ||
frozen dairy, fresh produce, whole grains, fresh meats, poultry, | ||
and fish. | ||
(7) To comply with all data collection and reporting | ||
requirements established by the Texas Department of Agriculture. | ||
(8) The degree to which the entity's proposed grocery | ||
store would promote the sale of fresh produce, including | ||
Texas-grown fruits and vegetables; and Texas-raised fresh meat, | ||
poultry and seafood products. | ||
(9) To promote the hiring of local residents. | ||
(e) Criteria for selecting projects for Financing. In | ||
determining which qualified projects to finance, the Texas | ||
Department of Agriculture shall consider: | ||
(1) The level of need in the area to be served; | ||
(2) The degree to which the project requires an | ||
investment of public financing to move forward, create impact, or | ||
be competitive, and the level of need in the area to be served; | ||
(3) The degree to which the project will have a | ||
positive economic impact on the underserved community, including by | ||
creating or retaining jobs for local residents; | ||
(4) The degree to which the project will work with | ||
state and local health department initiatives or Texas Agri-Life to | ||
educate consumers on nutrition and promote healthier eating; and | ||
(5) Other criteria the department/agency determines | ||
to be consistent with the purposes of this Chapter. | ||
(f) Eligible costs. Financing made available for projects | ||
may be used for the following purposes: | ||
(1) Site acquisition and preparation; | ||
(2) Construction and build-out costs; | ||
(3) Equipment and furnishings; | ||
(4) Workforce training or security; | ||
(5) Pre-development costs such as market studies and | ||
appraisals; | ||
(6) Energy-efficiency measures; and | ||
(7) Working capital for first-time inventory and | ||
start-up costs. | ||
SECTION 2. Not later than December 1, 2015, the Texas | ||
Department of Agriculture shall adopt rules to administer Chapter | ||
26, Agriculture Code, as added by this Act. | ||
SECTION 3. Not later than December 15, 2015, the Texas | ||
Department of Agriculture shall contract with one or more | ||
non-profit organizations or a community development financial | ||
institution provided by Section 26.003, Agriculture Code, as added | ||
by this Act. | ||
SECTION 4. Not later than January 15, 2016, the Texas | ||
Department of Agriculture shall transfer money to the Texas Grocery | ||
Access Investment Fund. | ||
SECTION 5. This Act takes effect September 1, 2015. |