EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *sb0121* SENATE BILL 121 M4, F1 2lr1037 (PRE–FILED) CF HB 147 By: Senator Hester Senators Hester, Jackson, King, and Washington Requested: October 29, 2021 Introduced and read first time: January 12, 2022 Assigned to: Education, Health, and Environmental Affairs Committee Report: Favorable with amendments Senate action: Adopted Read second time: March 3, 2022 CHAPTER ______ AN ACT concerning 1 Maryland Farms and Families Fund, Maryland Food and Agricultural 2 Resiliency Mechanism Grant Program, and Maryland Farm –to–School Meal 3 Grant Pilot Program – Alterations and Establishment 4 FOR the purpose of altering the purpose and use of the Maryland Farms and Families 5 Fund; establishing the Maryland Food and Agricultural Resiliency Mechanism 6 Grant Program and Fund; establishing the Maryland Farm–to–School Meal Grant 7 Pilot Program and Fund; and generally relating to the Maryland Farms and Families 8 Fund, the Maryland Food and Agricultural Resiliency Mechanism Grant Program 9 and Fund, and the Maryland Farm–to–School Meal Grant Pilot Program and Fund. 10 BY repealing and reenacting, without amendments, 11 Article – Agriculture 12 Section 10–2001 and 10–2002 13 Annotated Code of Maryland 14 (2016 Replacement Volume and 2021 Supplement) 15 BY repealing and reenacting, with amendments, 16 Article – Agriculture 17 Section 10–2003 and 10–2004 18 Annotated Code of Maryland 19 (2016 Replacement Volume and 2021 Supplement) 20 BY adding to 21 2 SENATE BILL 121 Article – Agriculture 1 Section 10–2101 through 10–2103 to be under the new subtitle “Subtitle 21. 2 Maryland Food and Agricultural Resiliency Mechanism Grant Program” 3 Annotated Code of Maryland 4 (2016 Replacement Volume and 2021 Supplement) 5 BY adding to 6 Article – Education 7 Section 9.11–101 through 9.11–103 to be under the new title “Title 9.11. Maryland 8 Farm–to–School Meal Grant Pilot Program” 9 Annotated Code of Maryland 10 (2018 Replacement Volume and 2021 Supplement) 11 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEM BLY OF MARYLAND, 12 That the Laws of Maryland read as follows: 13 Article – Agriculture 14 10–2001. 15 (a) In this subtitle the following words have the meanings indicated. 16 (b) “FMNP” means the federal Farmers Market Nutrition Program. 17 (c) “Fund” means the Maryland Farms and Families Fund. 18 (d) “Program” means the Maryland Farms and Families Program. 19 (e) “SNAP” means the federal Supplemental Nutrition Assistance Program. 20 (f) “WIC” means the federal Special Supplemental Food Program for Women, 21 Infants, and Children. 22 10–2002. 23 (a) There is a Maryland Farms and Families Program in the Department. 24 (b) The purpose of the Program is to double the purchasing power of food–insecure 25 Maryland residents with limited access to fresh fruits and vegetables and to increase 26 revenue for farmers through redemption of federal nutrition benefits at Maryland farmers 27 markets. 28 10–2003. 29 (a) There is a Maryland Farms and Families Fund. 30 (b) The purpose of the Fund is to provide grants to: 31 SENATE BILL 121 3 (1) Nonprofit organizations that match purchases made with FMNP, 1 SNAP, and WIC benefits at participating farmers markets AND FARM STANDS ; 2 (2) Nonprofit farmers markets to implement the Program at the farmers 3 markets; and 4 (3) Local nonprofit organizations to implement the Program in partnership 5 with one or more participating local farmers markets. 6 (c) The Secretary shall administer the Fund. 7 (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 8 the State Finance and Procurement Article. 9 (2) The State Treasurer shall hold the Fund separately, and the 10 Comptroller shall account for the Fund. 11 (e) The Fund consists of: 12 (1) Money appropriated in the State budget to the Fund; and 13 (2) Any other money from any other source accepted for the benefit of the 14 Fund. 15 (f) (1) In accordance with this subsection, the Fund shall be used to provide 16 grants to: 17 (i) Nonprofit organizations that: 18 1. Meet the qualifications established in § 10–2004 of this 19 subtitle; and 20 2. Distribute the grant money to farmers markets and local 21 nonprofit organizations in accordance with this subtitle; 22 (ii) Nonprofit farmers markets to implement the Program at the 23 farmers markets; and 24 (iii) Local nonprofit organizations to implement the Program in 25 partnership with one or more local farmers markets. 26 (2) A qualified nonprofit organization that receives a grant under this 27 section: 28 (i) Shall distribute at least [70%] 60% of the grant money it receives 29 directly to participating farmers markets as FUNDING FOR LOCAL MARKET ACCESS 30 4 SENATE BILL 121 COORDINATORS AND matching dollars for purchases made with FMNP, SNAP, and WIC 1 benefits; and 2 (ii) May not use more than [30%] 40% of the grant money it receives 3 for Program development, promotion and outreach, farmers market training and capacity 4 building, technical assistance, program data collection, evaluation, administration, and 5 reporting. 6 (g) (1) Subject to paragraph (2) of this subsection, [for fiscal year 2021 and 7 each fiscal year thereafter,] the Governor shall include in the annual budget bill an 8 appropriation [of $100,000] to the Fund AS FOLLOWS: 9 (I) FOR FISCAL YEARS 2021 THROUGH 2023, $100,000; AND 10 (II) FOR FISCAL YEAR 2024 AND EACH FISCAL YEAR 11 THEREAFTER , $300,000. 12 (2) The appropriation required under paragraph (1) of this subsection shall 13 be in addition to, and may not supplant, any funding appropriated to the Marketing and 14 Promotion Division in the Department. 15 10–2004. 16 (a) (1) A nonprofit organization is qualified to receive a grant in accordance 17 with this subtitle if the Department determines that the nonprofit organization has a 18 demonstrated record of: 19 (i) Designing and implementing successful healthy food incentive 20 programs that connect federal food benefits recipients with local producers; 21 (ii) Implementing funds distributing and reporting processes; 22 (iii) Providing training and technical assistance to farmers markets; 23 (iv) Conducting community outreach and data collection, including 24 customer surveys; and 25 (v) Providing a full accounting and administration of funds 26 distributed to farmers markets. 27 (2) In addition to the requirements under paragraph (1) of this subsection, 28 in awarding a grant in accordance with this subtitle, the Department may consider whether 29 the nonprofit organization has a demonstrated record of providing services in [food deserts] 30 HEALTHY FOOD PRIORIT Y AREAS. 31 SENATE BILL 121 5 (b) Within 90 days after the end of a grant cycle, a qualified nonprofit 1 organization that received a grant in accordance with this subtitle shall submit a report to 2 the Department that includes the following information: 3 (1) The names and locations of Maryland farmers markets that received 4 funds under the Program; 5 (2) The dollar amount of funds awarded to each participating farmers 6 market; 7 (3) The dollar amount of FMNP, SNAP, and WIC benefits, and funds 8 provided under the Program that were spent at participating farmers markets, as well as 9 any unspent funds; 10 (4) The number of FMNP, SNAP, and WIC transactions carried out at 11 participating farmers markets; and 12 (5) The impact of the Program on increasing the quantity of fresh fruits 13 and vegetables consumed by FMNP, SNAP, and WIC families, as determined by customer 14 surveys. 15 SUBTITLE 21. MARYLAND FOOD AND AGRICULTURAL RESILIENCY MECHANISM 16 GRANT PROGRAM. 17 10–2101. 18 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19 INDICATED. 20 (B) “FUND” MEANS THE MARYLAND FOOD AND AGRICULTURAL 21 RESILIENCY MECHANISM FUND. 22 (C) “MD FARM” MEANS THE MARYLAND FOOD AND AGRICULTURAL 23 RESILIENCY MECHANISM GRANT PROGRAM. 24 10–2102. 25 (A) THERE IS A MARYLAND FOOD AND AGRICULTURAL RESILIENCY 26 MECHANISM GRANT PROGRAM. 27 (B) THE PURPOSE OF MD FARM IS TO BUILD FOOD SYS TEM RESILIENCY BY 28 LEVERAGING MARYLAND AGRICULTURAL PRODUCTS AND SERVICE S TO SUPPORT 29 THE STATE’S FOOD BANKS AND CHA RITABLE EMERGENCY FO OD PROVIDERS TO 30 ALLEVIATE FOOD INSEC URITY. 31 10–2103. 32 6 SENATE BILL 121 (A) (1) THERE IS A MARYLAND FOOD AND AGRICULTURAL RESILIENCY 1 MECHANISM FUND IN THE DEPARTMENT . 2 (2) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS TO FOOD 3 BANKS AND CHARITABLE EMERGENCY FOOD PROVI DERS FOR: 4 (I) THE PROCUREMENT OF SU RPLUS, SEASONAL, OR 5 CONTRACTUAL AGRICULT URAL FOOD PRODUCTS ; 6 (II) THE PROCESSING AND PREPARATION OF AGRIC ULTURAL 7 FOOD PRODUCTS FOR DI STRIBUTION; AND 8 (III) THE TRANSPORTATION OF AGRICULTURAL FOOD 9 PRODUCTS. 10 (B) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 11 (C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 12 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 13 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 14 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 15 (D) THE FUND CONSISTS OF : 16 (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 17 AND 18 (2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED FOR 19 THE BENEFIT OF THE FUND. 20 (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE FUND 21 SHALL BE USED TO PRO VIDE GRANTS TO FOOD BANKS AND CHARITABLE 22 EMERGENCY FOOD PROVI DERS FOR: 23 (I) THE PROCUREMENT OF SURPLUS, SEASONAL, OR 24 CONTRACTUAL AGRICULT URAL FOOD PRODUCTS ; 25 (II) THE PROCESSING AND PR EPARATION OF AGRICUL TURAL 26 FOOD PRODUCTS FOR DI STRIBUTION; AND 27 (III) THE TRANSPORTATION OF AGRICULTURAL FOOD 28 PRODUCTS. 29 SENATE BILL 121 7 (2) A FOOD BANK OR CHARITA BLE EMERGENCY FOOD PROVIDER MAY 1 USE GRANT MONEY ONLY FOR FOOD PRODUCTS AN D SERVICES SOURCED F ROM THE 2 STATE. 3 (F) FOR FISCAL YEAR 2024 AND EACH FISCAL YEAR THEREAFTER , THE 4 GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF 5 $1,250,000 TO THE FUND. 6 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7 as follows: 8 Article – Education 9 TITLE 9.11. MARYLAND FARM–TO–SCHOOL MEAL GRANT PILOT PROGRAM. 10 9.11–101. 11 (A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 12 INDICATED. 13 (B) “FUND” MEANS THE MARYLAND FARM–TO–SCHOOL MEAL GRANT 14 FUND. 15 (C) “LOCAL” MEANS AN AGRICULTURA L PRODUCT GROWN , HARVESTED, 16 PRODUCED, OR PROCESSED FROM A CERTIFIED LOCAL FARM ENTERPRISE. 17 (D) “PILOT PROGRAM ” MEANS THE MARYLAND FARM–TO–SCHOOL MEAL 18 GRANT PILOT PROGRAM. 19 9.11–102. 20 (A) THERE IS A MARYLAND FARM–TO–SCHOOL MEAL GRANT PILOT 21 PROGRAM IN THE DEPARTMENT . 22 (B) THE PURPOSE OF THE PI LOT PROGRAM IS TO IN CENTIVIZE THE 23 PRODUCTION , PROCUREMENT , AND PROVISION OF LOC AL FOODS IN SCHOOL M EALS 24 BY AWARDING GRANTS I N ACCORDANCE WITH THIS TITLE. 25 9.11–103. 26 (A) THERE IS A MARYLAND FARM–TO–SCHOOL MEAL GRANT FUND. 27 (B) THE DEPARTMENT , IN COORDINATION WITH THE DEPARTMENT OF 28 AGRICULTURE , SHALL ADMINISTER THE FUND. 29 8 SENATE BILL 121 (C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 1 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 3 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 4 (D) THE FUND CONSISTS OF : 5 (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 6 AND 7 (2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 8 THE BENEFIT OF THE FUND. 9 (E) (1) THE FUND SHALL BE USED TO AWARD GRANTS TO ELIG IBLE 10 SCHOOL DISTRICTS TO IMPLEMENT THE MARYLAND FARM–TO–SCHOOL MEAL 11 GRANT PILOT PROGRAM. 12 (2) A LOCAL SCH OOL DISTRICT IS ELIG IBLE TO RECEIVE A GR ANT 13 AWARD FROM THE FUND IF THE LOCAL SCH OOL DISTRICT OPERATE S 14 REIMBURSABLE FEDERAL NUTRITION PROGRAMS . 15 (F) (1) THE DEPARTMENT SHALL AWAR D GRANTS FROM THE FUND IN 16 ACCORDANCE WITH THIS SECTION TO ELIGIBLE LOCAL SCHOO L DISTRICTS IN AN 17 AMOUNT EQUIVALENT TO 20 CENTS FOR EACH MEAL SERVED IN THE LOCAL SCHOOL 18 DISTRICT THAT INCLUD ES THAT THE SCHOOL DIST RICT EXPECTS TO OFFE R, BASED 19 ON THE PREVIOUS FISC AL YEAR’S MEAL COUNT, THAT WILL INCLUDE A LOCAL FOOD 20 COMPONENT . 21 (2) THE LOCAL SCHOOL DIST RICT MAY DETERMINE T HE MEALS, 22 PARTICIPATING SCHOOL S, AND TIME FRAME FOR W HICH THE LOCAL SCHOO L 23 DISTRICT MAY INCLUDE A LOCAL FOOD COMPONE NT. 24 (3) IN DETERMINING THE AM OUNT OF A GRANT AWAR D, THE 25 DEPARTMENT SHALL MULT IPLY THE PREVIOUS FISCAL YEAR’S MEAL COUNT FOR 26 THE DETERMINED ELIGI BLE MEALS AND PARTIC IPATING SCHOOLS BY T HE NUMBER 27 OF DAYS IN THE DETER MINED TIME FRAME AND MULTIPLY THIS PRODUC T BY 20 28 CENTS. 29 (4) A LOCAL SCHOOL DISTRIC T MAY USE GRANT MONE Y FOR THE 30 PURCHASE, PROCESSING, PROCUREMENT , STAFFING, OR INFRASTRUCTURE 31 INVESTMENTS NEEDED T O MEET THE NUMBER OF MEALS WITH A LOCAL F OOD 32 COMPONENT . 33 SENATE BILL 121 9 (G) IN AWARDING GRANTS UN DER THIS SECTION , THE DEPARTMENT SHALL 1 PRIORITIZE LOCAL SCH OOL DISTRICTS THAT : 2 (1) DEMONSTRATE HOW MEAL REIMBURSEMENTS WOULD SUP PORT 3 THE DEVELOPMENT , CULTIVATION, AND LONGSTANDING COM MITMENT TO THE 4 INCORPORATION OF LOC AL FOOD COMPONENTS I NTO SCHOOL MEALS ; AND 5 (2) DEMONSTRATE ARRANGEME NTS THAT SUPPORT MIN ORITY OR 6 SOCIALLY DISADVANTAG ED PRODUCERS , PROCESSORS , DISTRIBUTORS, OR 7 BUSINESSES. 8 (H) FOR FISCAL YEARS 2024 AND 2025, THE GOVERNOR SHALL INCLUD E IN 9 THE ANNUAL BUDGET BI LL AN APPROPRIATION OF AT LEAST $500,000 TO THE 10 FUND. 11 (I) (1) ON OR BEFORE JULY 1, 2023, AND JULY 1, 2024, IN ACCORDANCE 12 WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE DEPARTMENT SHALL 13 SUBMIT AN INTERIM RE PORT TO THE GENERAL ASSEMBLY THAT PROVIDE S AN 14 EVALUATION OF THE PI LOT PROGRAM . 15 (2) ON OR BEFORE JULY 1, 2025, THE DEPARTMENT SHALL SUBM IT 16 A FINAL REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 17 ARTICLE, TO THE GENERAL ASSEMBLY ON THE PILOT PROGRAM, INCLUDING A 18 RECOMMENDATION ON WH ETHER OR NOT THE PIL OT PROGRAM SHOULD BE 19 CONTINUED. 20 SECTION 3. AND BE IT FURTHER ENACTED, That it is the intent of the General 21 Assembly: 22 (1) to encourage counties and municipalities to contribute supplemental 23 financial support to nonprofit organizations that are supported by the Maryland Farms and 24 Families Fund established under § 10–2003 of the Agriculture Article to help increase the 25 reach and capacity of the federal Farmers Market Nutrition Program to serve food–insecure 26 individuals and families as well as participating farmers; and 27 (2) that any financial support provided by a county or municipality in 28 accordance with item (1) of this section be used as follows: 29 (i) 80% for distribution to participating farmers markets within the 30 local jurisdiction as matching funds for purchases made with benefits under the Farmers 31 Market Nutrition Program, Supplemental Nutrition Assistance Program, and Special 32 Supplemental Food Program for Women, Infants, and Children and, if available, local 33 market access coordination; and 34 10 SENATE BILL 121 (ii) 20% for retention by the nonprofit organization for program 1 development, promotion and outreach, training, data collection, and administrative costs. 2 SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3 1, 2022. Section 2 of this Act shall remain effective for a period of 4 years and, at the end of 4 June 30, 2026, Section 2 of this Act, with no further action required by the General 5 Assembly, shall be abrogated and of no further force and effect. 6 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.