Meza Grocery Bill Cuts The Report To Amount And Recipient

The text as introduced · 867 words

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.