84R17154 AJZ-F
	By: Rodriguez of Travis, Harless, Miles,	H.B. No. 1485
	Turner of Tarrant, Isaac, et al.
	Substitute the following for H.B. No. 1485:
	By:  Button	C.S.H.B. No. 1485

	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 between
	81 and 95 percent of the area 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 by the Food Access Research Atlas published by the
	United States Department of Agriculture; 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 or 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, 2015, 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, 2015, 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, 2016, the Department
	of Agriculture shall transfer money to the Texas grocery access
	investment fund.
	SECTION 5.  This Act takes effect September 1, 2015.