89R4276 SCR-D     By: Meza H.B. No. 2033       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of the community development grocery   store grant program and to the use of money from the Texas   Enterprise Fund for the program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 481, Government Code, is amended by   adding Subchapter HH to read as follows:   SUBCHAPTER HH. COMMUNITY DEVELOPMENT GROCERY STORE GRANT PROGRAM          Sec. 481.701.  DEFINITIONS. In this subchapter:                (1)  "Food desert" means a census tract, based on the   most recent information published by the United States Bureau of   the Census, in which:                      (A)  the poverty rate is 20 percent or higher or   the median family income is at or below 80 percent of the area   median family income; and                      (B)  at least 500 people or at least 33 percent of   the census area's population reside more than:                            (i)  one mile from a grocery store, in the   case of a census tract other than a rural census tract; or                            (ii)  10 miles from a grocery store, in the   case of a rural census tract.                (2)  "Grocery store" means a store that has at least:                      (A)  66 percent of the store's retail space   reserved for the sale of food products;                      (B)  50 percent of the store's food retail space   reserved for the sale of non-prepared foods or foods intended for   home preparation and consumption; and                      (C)  30 percent of the store's food retail space   reserved for the sale of perishable foods, including dairy   products, fresh produce, fresh meats, poultry, fish, and frozen   foods.                (3)  "Program" means the community development grocery   store grant program established under this subchapter.          Sec. 481.702.  ESTABLISHMENT OF GRANT PROGRAM. (a) The   office shall establish and administer the community development   grocery store grant program to assist communities by awarding   grants to business entities proposing to operate a grocery store   that will be located in a food desert.          (b)  The office may use any available revenue, including   legislative appropriations, appropriation transfers from the   trusteed programs within the office of the governor, including   authorized appropriations from the Texas Enterprise Fund, and any   other statutorily authorized and appropriate funding sources   transferred from the trusteed programs within the office of the   governor, for the purposes of this subchapter.          Sec. 481.703.  ELIGIBILITY FOR GRANT. To be eligible to   receive a grant under this subchapter, a business entity must:                (1)  demonstrate significant levels of planned capital   investment at the proposed location, as determined by office rule;                (2)  demonstrate the support of the governing officials   of the local governmental entities in which the grocery store is   proposed to be located, particularly in the form of local economic   development incentive offers; and                (3)  be well established and financially sound.          Sec. 481.704.  APPLICATION. A small business may apply for a   grant under this subchapter by submitting an application to the   office in the form and manner prescribed by the office.          Sec. 481.705.  GRANT AGREEMENT. (a) Before awarding a grant   under this subchapter, the office shall enter into a written   agreement with the business entity to be awarded the grant   specifying that if the grocery store closes before the fourth   anniversary of the date on which the grant is awarded, the   recipient shall repay the grant and any related interest to the   state at the agreed rate and on the agreed terms.          (b)  A grant agreement for a grant awarded under this   subchapter must contain a provision stating that:                (1)  the grocery store will provide health insurance   benefits to its full-time employees; and                (2)  the total average wages for new jobs at the grocery   store must meet or exceed the average wage for the same or similar   type of job in the county in which the grocery store will be   located.          Sec. 481.706.  GIFTS, GRANTS, AND DONATIONS.  The office   shall solicit and accept gifts and grants for the purposes of this   subchapter. The office shall use gifts and grants received for the   purposes of this subchapter before using any other revenue.          Sec. 481.707.  GRANT PROGRAM RULES. The executive director   of the office shall adopt rules necessary to administer and   implement this subchapter.          SECTION 2.  Section 481.078, Government Code, is amended by   adding Subsection (d-2) to read as follows:          (d-2)  The fund may be used for the community development   grocery store grant program under Subchapter HH. The governor may   transfer appropriations from the fund to the office for purposes of   administering the community development grocery store grant   program. Subsections (e), (f), (f-1), (f-2), (g), (h), (h-1), (i),   and (j) and Section 481.080 do not apply to a grant awarded for a   purpose specified by this subsection.          SECTION 3.  Section 481.079, Government Code, is amended by   adding Subsection (a-2) to read as follows:          (a-2)  For grants awarded for a purpose specified by Section   481.078(d-2), the report must include only the amount and recipient   of each grant.          SECTION 4.  As soon as practicable after the effective date   of this Act, the executive director of the Texas Economic   Development and Tourism Office shall adopt rules for the   establishment of the community development grocery store grant   program under Subchapter HH, Chapter 481, Government Code, as added   by this Act.          SECTION 5.  This Act takes effect September 1, 2025.