85R10628 JG-F     By: Zaffirini S.B. No. 2156       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.  Chapter 2306, Government Code, is amended by   adding Subchapter BB to read as follows:   SUBCHAPTER BB.  TEXAS GROCERY ACCESS INVESTMENT FUND          Sec. 2306.6501.  DEFINITIONS. In this subchapter:                (1)  "Community development financial institution" has   the meaning assigned by 12 U.S.C. Section 4702.                (2)  "Farm stand" has the meaning assigned by Section   437.001, Health and Safety Code.                (3)  "Financing" means a loan, grant, or forgivable   loan.                (4)  "Fund" means the Texas grocery access investment   fund established by this subchapter.                (5)  "Grant" means a grant provided under the program.                (6)  "Grocery store" means a self-service retail store   that primarily sells meat, seafood, fruits, vegetables, dairy   products, dry groceries, household products, and sundries.                (7)  "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.                (8)  "Mobile market" means a mobile self-service retail   store that primarily sells meat, seafood, fruits, vegetables, dairy   products, and dry groceries.                (9)  "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 between   82 and 95 percent of the median family income for the state or the   metropolitan statistical area.                (10)  "Program" means the Texas grocery access   investment fund program authorized by this subchapter.                (11)  "Underserved area" means:                      (A)  an area designated as underserved by the   department by rule; or                      (B)  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 the United States Department of Agriculture, as identified by   the Food Access Research Atlas published by the United States   Department of Agriculture.          Sec. 2306.6502.  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, mobile markets, farm   stands, and other eligible projects as determined by the department   to increase food access in underserved low-income and   moderate-income areas in this state.          (b)  The Texas grocery access investment fund is a trust fund   outside the treasury with the comptroller and administered by the   department.          (c)  The fund may be composed of:                (1)  money received from a private financial   institution, including a bank, credit union, or community   development financial institution;                (2)  federal, state, or private grants or loans;                (3)  money received as a result of federal tax credits;                (4)  money appropriated to the fund by the legislature;                (5)  any other type of financial assistance; and                (6)  interest received on money in the fund.          Sec. 2306.6503.  ADMINISTRATION OF TEXAS GROCERY ACCESS   INVESTMENT FUND PROGRAM. (a) The department shall contract with   one or more of the following entities to administer the program   through a public-private partnership:                (1)  a nonprofit organization;                (2)  a community development financial institution;                (3)  a governmental entity;                (4)  a private financial institution, including a bank   or credit union;                (5)  an academic institution; or                (6)  any other entity considered appropriate by the   department.          (b)  Subject to rules, procedures, and guidelines adopted or   established by the department, an entity 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.  Notwithstanding this   subsection, the department may disburse a grant or loan that does   not exceed $20,000 per project for an eligible project.          (c)  The department shall establish rules or other   procedures as necessary to administer this subchapter.          (d)  The department may contract with an appropriate   academic institution to establish monitoring and accountability   mechanisms for projects receiving financing under the program.  If   the department contracts with an institution under this subsection,   the institution 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.     To be eligible for financing, a project must be located in an   underserved area and primarily serve low-income or moderate-income   areas. Projects eligible for financing include the construction,   expansion, or rehabilitation of:                (1)  a grocery store;                (2)  a mobile market;                (3)  a farm stand; and                (4)  any other approved project that furthers the   purposes of the program.          (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 federal   supplemental nutrition assistance program operated under 7 U.S.C.   Section 2011 et seq. and the federal special supplemental nutrition   program for women, infants, and children authorized by 42 U.S.C.   Section 1786;                      (B)  provide sufficient access to healthy food,   such as by allocating an amount of retail space considered   appropriate by the department 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 eligible projects to finance, an   entity contracted under Subsection (a) shall consider:                (1)  the following for each eligible project:                      (A)  the level of need in the area to be served;                      (B)  the amount of public funding required to make   the project move forward, create an impact, or be competitive;                      (C)  the degree to which the project will have a   positive impact on food access and a positive economic impact on the   underserved area, including by creating or retaining jobs for local   residents;                      (D)  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                      (E)  any other criteria the contracted entity   considers necessary or appropriate; and                (2)  the following for each eligible project related to   the construction of a new grocery store:                      (A)  whether the grocery store is expected to be   economically viable; and                      (B)  whether the grocery store will have a   positive impact on healthy food access in the underserved   low-income or moderate-income area the project is intended to   serve.          (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 or security;                (5)  predevelopment costs, including market studies   and appraisals;                (6)  energy efficiency measures;                (7)  working capital for initial inventory and start-up   costs; and                (8)  any other costs associated with maintaining the   infrastructure of the project.          SECTION 2.  Not later than December 1, 2017, the Texas   Department of Housing and Community Affairs shall adopt rules to   administer Subchapter BB, Chapter 2306, Government Code, as added   by this Act.          SECTION 3.  Not later than December 15, 2017, the Texas   Department of Housing and Community Affairs shall contract with one   or more entities as provided by Section 2306.6503(a), Government   Code, as added by this Act.          SECTION 4.  Not later than January 15, 2018, the Texas   Department of Housing and Community Affairs shall transfer money   held by the department and described by Section 2306.6502(c),   Government Code, as added by this Act, to the Texas grocery access   investment fund.          SECTION 5.  This Act takes effect September 1, 2017.