85R659 DDT-D     By: Lucio III H.B. No. 164       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 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.          SECTION 2.  Not later than December 1, 2017, 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, 2017, 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, 2018, the Department   of Agriculture shall transfer money to the Texas grocery access   investment fund.          SECTION 5.  This Act takes effect September 1, 2017.