H.B. No. 821 proposes the establishment of the Texas Grocery Access Investment Fund Program, aimed at providing financing for the construction, rehabilitation, or expansion of grocery stores in underserved low-income and moderate-income areas across Texas. The bill introduces Chapter 26 to the Agriculture Code, defining key terms such as "grocery store," "low-income area," and "fund." The program will be administered by the Department of Agriculture in collaboration with public and private partners, and it will be funded through various sources, including legislative appropriations and federal grants. The bill mandates that at least 25% of the fund be allocated for grants or forgivable loans, while limiting administrative costs to a maximum of 10%.

The Department of Agriculture is tasked with creating guidelines for project eligibility and establishing monitoring mechanisms to ensure accountability. Eligible projects must primarily serve low-income or moderate-income areas and include the construction of new grocery stores or improvements to existing ones. Applicants for financing can be for-profit or nonprofit entities and must demonstrate their capacity to implement the project successfully. The bill also outlines specific requirements for recipients of financing, such as promoting the sale of fresh produce and hiring local residents. The Department is required to adopt rules for administering the program by December 1, 2025, and to begin transferring funds to the investment fund by January 15, 2026. The act is set to take effect on September 1, 2025.

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