HB 2033

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
(A)  the poverty rate is 20 percent or higher or
the median family income is at or below 80 percent of the area
(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
(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
(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
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
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
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
SECTION 5.  This Act takes effect September 1, 2025.