LAWRENCE J. HOGAN, JR., Governor Ch. 480 – 1 – Chapter 480 (Senate Bill 121) AN ACT concerning Maryland Farms and Families Fund, Maryland Food and Agricultural Resiliency Mechanism Grant Program, and Maryland Farm –to–School Meal Grant Pilot Program – Alterations and Establishment FOR the purpose of altering the purpose and use of the Maryland Farms and Families Fund; establishing the Maryland Food and Agricultural Resiliency Mechanism Grant Program and Fund; establishing the Maryland Farm–to–School Meal Grant Pilot Program and Fund; and generally relating to the Maryland Farms and Families Fund, the Maryland Food and Agricultural Resiliency Mechanism Grant Program and Fund, and the Maryland Farm–to–School Meal Grant Pilot Program and Fund. BY repealing and reenacting, without amendments, Article – Agriculture Section 10–2001 and 10–2002 Annotated Code of Maryland (2016 Replacement Volume and 2021 Supplement) BY repealing and reenacting, with amendments, Article – Agriculture Section 10–2003 and 10–2004 Annotated Code of Maryland (2016 Replacement Volume and 2021 Supplement) BY adding to Article – Agriculture Section 10–2101 through 10–2103 to be under the new subtitle “Subtitle 21. Maryland Food and Agricultural Resiliency Mechanism Grant Program” Annotated Code of Maryland (2016 Replacement Volume and 2021 Supplement) BY adding to Article – Education Section 9.11–101 through 9.11–103 to be under the new title “Title 9.11. Maryland Farm–to–School Meal Grant Pilot Program” Annotated Code of Maryland (2018 Replacement Volume and 2021 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Agriculture Ch. 480 2022 LAWS OF MARYLAND – 2 – 10–2001. (a) In this subtitle the following words have the meanings indicated. (b) “FMNP” means the federal Farmers Market Nutrition Program. (c) “Fund” means the Maryland Farms and Families Fund. (d) “Program” means the Maryland Farms and Families Program. (e) “SNAP” means the federal Supplemental Nutrition Assistance Program. (f) “WIC” means the federal Special Supplemental Food Program for Women, Infants, and Children. 10–2002. (a) There is a Maryland Farms and Families Program in the Department. (b) The purpose of the Program is to double the purchasing power of food–insecure Maryland residents with limited access to fresh fruits and vegetables and to increase revenue for farmers through redemption of federal nutrition benefits at Maryland farmers markets. 10–2003. (a) There is a Maryland Farms and Families Fund. (b) The purpose of the Fund is to provide grants to: (1) Nonprofit organizations that match purchases made with FMNP, SNAP, and WIC benefits at participating farmers markets AND FARM STANDS ; (2) Nonprofit farmers markets to implement the Program at the farmers markets; and (3) Local nonprofit organizations to implement the Program in partnership with one or more participating local farmers markets. (c) The Secretary shall administer the Fund. (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. LAWRENCE J. HOGAN, JR., Governor Ch. 480 – 3 – (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (e) The Fund consists of: (1) Money appropriated in the State budget to the Fund; and (2) Any other money from any other source accepted for the benefit of the Fund. (f) (1) In accordance with this subsection, the Fund shall be used to provide grants to: (i) Nonprofit organizations that: 1. Meet the qualifications established in § 10–2004 of this subtitle; and 2. Distribute the grant money to farmers markets and local nonprofit organizations in accordance with this subtitle; (ii) Nonprofit farmers markets to implement the Program at the farmers markets; and (iii) Local nonprofit organizations to implement the Program in partnership with one or more local farmers markets. (2) A qualified nonprofit organization that receives a grant under this section: (i) Shall distribute at least [70%] 60% of the grant money it receives directly to participating farmers markets as FUNDING FOR LOCAL MA RKET ACCESS COORDINATORS AND matching dollars for purchases made with FMNP, SNAP, and WIC benefits; and (ii) May not use more than [30%] 40% of the grant money it receives for Program development, promotion and outreach, farmers market training and capacity building, technical assistance, program data collection, evaluation, administration, and reporting. (g) (1) Subject to paragraph (2) of this subsection, [for fiscal year 2021 and each fiscal year thereafter,] the Governor shall include in the annual budget bill an appropriation [of $100,000] to the Fund AS FOLLOWS: (I) FOR FISCAL YEARS 2021 THROUGH 2023, $100,000; AND Ch. 480 2022 LAWS OF MARYLAND – 4 – (II) FOR FISCAL YEAR 2024 AND EACH FISCAL YEAR THEREAFTER , $300,000. (2) The appropriation required under paragraph (1) of this subsection shall be in addition to, and may not supplant, any funding appropriated to the Marketing and Promotion Division in the Department. 10–2004. (a) (1) A nonprofit organization is qualified to receive a grant in accordance with this subtitle if the Department determines that the nonprofit organization has a demonstrated record of: (i) Designing and implementing successful healthy food incentive programs that connect federal food benefits recipients with local producers; (ii) Implementing funds distributing and reporting processes; (iii) Providing training and technical assistance to farmers markets; (iv) Conducting community outreach and data collection, including customer surveys; and (v) Providing a full accounting and administration of funds distributed to farmers markets. (2) In addition to the requirements under paragraph (1) of this subsection, in awarding a grant in accordance with this subtitle, the Department may consider whether the nonprofit organization has a demonstrated record of providing services in [food deserts] HEALTHY FOOD PRIORIT Y AREAS. (b) Within 90 days after the end of a grant cycle, a qualified nonprofit organization that received a grant in accordance with this subtitle shall submit a report to the Department that includes the following information: (1) The names and locations of Maryland farmers markets that received funds under the Program; (2) The dollar amount of funds awarded to each participating farmers market; (3) The dollar amount of FMNP, SNAP, and WIC benefits, and funds provided under the Program that were spent at participating farmers markets, as well as any unspent funds; LAWRENCE J. HOGAN, JR., Governor Ch. 480 – 5 – (4) The number of FMNP, SNAP, and WIC transactions carried out at participating farmers markets; and (5) The impact of the Program on increasing the quantity of fresh fruits and vegetables consumed by FMNP, SNAP, and WIC families, as determined by customer surveys. SUBTITLE 21. MARYLAND FOOD AND AGRICULTURAL RESILIENCY MECHANISM GRANT PROGRAM. 10–2101. (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (B) “FUND” MEANS THE MARYLAND FOOD AND AGRICULTURAL RESILIENCY MECHANISM FUND. (C) “MD FARM” MEANS THE MARYLAND FOOD AND AGRICULTURAL RESILIENCY MECHANISM GRANT PROGRAM. 10–2102. (A) THERE IS A MARYLAND FOOD AND AGRICULTURAL RESILIENCY MECHANISM GRANT PROGRAM. (B) THE PURPOSE OF MD FARM IS TO BUILD FOOD SYS TEM RESILIENCY BY LEVERAGING MARYLAND AGRICULTURAL PRODUCTS AND SERVICE S TO SUPPORT THE STATE’S FOOD BANKS AND CHA RITABLE EMERGENCY FO OD PROVIDERS TO ALLEVIATE FOOD INSEC URITY. 10–2103. (A) (1) THERE IS A MARYLAND FOOD AND AGRICULTURAL RESILIENCY MECHANISM FUND IN THE DEPARTMENT . (2) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS TO FOOD BANKS AND CHARITABLE EMERGENCY FOOD PROVI DERS FOR: (I) THE PROCUREMENT OF SU RPLUS, SEASONAL, OR CONTRACTUAL AGRICULT URAL FOOD PRODUCTS; (II) THE PROCESSING AND PR EPARATION OF AGRICUL TURAL FOOD PRODUCTS FOR DI STRIBUTION; AND Ch. 480 2022 LAWS OF MARYLAND – 6 – (III) THE TRANSPORTATION OF AGRICULTURAL FOOD PRODUCTS. (B) THE DEPARTMENT SHALL ADMI NISTER THE FUND. (C) (1) THE FUND IS A SPECIAL , NONLAPSING F UND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. (D) THE FUND CONSISTS OF : (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; AND (2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR THE BENEFIT OF THE FUND. (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE FUND SHALL BE USED TO PRO VIDE GRANTS TO FOOD BANKS AND CHARITABLE EMERGENCY FOOD PROVI DERS FOR: (I) THE PROCUREMENT OF SU RPLUS, SEASONAL, OR CONTRACTUAL AGRICULT URAL FOOD PRODUCTS ; (II) THE PROCESSING AND PR EPARATION OF AGRICUL TURAL FOOD PRODUCTS FOR DI STRIBUTION; AND (III) THE TRANSPORTATION OF AGRICULTURAL FOOD PRODUCTS. (2) A FOOD BANK OR CHARITA BLE EMERGENCY FOOD P ROVIDER MAY USE GRANT MONEY ONLY FOR FOOD PRODUCTS AN D SERVICES SOURCED F ROM THE STATE. (F) FOR FISCAL YEAR 2024 AND EACH FISCAL YEAR THEREAFTER , THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF $1,250,000 $200,000 TO THE FUND. SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows: LAWRENCE J. HOGAN, JR., Governor Ch. 480 – 7 – Article – Education TITLE 9.11. MARYLAND FARM–TO–SCHOOL MEAL GRANT PILOT PROGRAM. 9.11–101. (A) IN THIS TITLE THE FOL LOWING WORDS HAVE THE MEANINGS INDICATED. (B) “FUND” MEANS THE MARYLAND FARM–TO–SCHOOL MEAL GRANT FUND. (C) “LOCAL” MEANS AN AGRICULTURA L PRODUCT GROWN , HARVESTED, PRODUCED, OR PROCESSED FROM A CERTIFIED LOCAL FARM ENTERPRISE. (D) “PILOT PROGRAM ” MEANS THE MARYLAND FARM–TO–SCHOOL MEAL GRANT PILOT PROGRAM. 9.11–102. (A) THERE IS A MARYLAND FARM–TO–SCHOOL MEAL GRANT PILOT PROGRAM IN THE DEPARTMENT . (B) THE PURPOSE OF THE PI LOT PROGRAM IS TO IN CENTIVIZE THE PRODUCTION , PROCUREMENT , AND PROVISION OF LOC AL FOODS IN SCHOOL MEALS BY AWARDING GRANTS I N ACCORDANCE WITH TH IS TITLE. 9.11–103. (A) THERE IS A MARYLAND FARM–TO–SCHOOL MEAL GRANT FUND. (B) THE DEPARTMENT , IN COORDINATION WITH THE DEPARTMENT OF AGRICULTURE , SHALL ADMINISTER THE FUND. (C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. (D) THE FUND CONSISTS OF : (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; AND Ch. 480 2022 LAWS OF MARYLAND – 8 – (2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR THE BENEFIT OF THE FUND. (E) (1) THE FUND SHALL BE USED TO AWARD GRANTS TO ELIG IBLE SCHOOL DISTRICTS TO IMPLEMENT THE MARYLAND FARM–TO–SCHOOL MEAL GRANT PILOT PROGRAM. (2) A LOCAL SCHOOL DISTRIC T IS ELIGIBLE TO REC EIVE A GRANT AWARD FROM THE FUND IF THE LOCAL SCH OOL DISTRICT OPERATE S REIMBURSABLE FEDERAL NUTRITION PROGRAMS . (F) (1) THE DEPARTMENT SHALL AWAR D GRANTS FROM THE FUND IN ACCORDANCE WITH THIS SECTI ON TO ELIGIBLE LOCAL SCHOOL DISTRICTS IN AN AMOUNT EQUIVALENT TO 20 CENTS FOR EACH MEAL SERVED IN THE LOCAL SCHOOL DISTRICT THAT INCLUD ES THAT THE SCHOOL DIST RICT EXPECTS TO OFFE R, BASED ON THE PREVIOUS FISC AL YEAR’S MEAL COUNT, THAT WILL INCLUDE A LOCAL FOOD COMPONENT . (2) THE LOCAL SCHOOL DIST RICT MAY DETERMINE T HE MEALS, PARTICIPATING SCHOOL S, AND TIME FRAME FOR W HICH THE LOCAL SCHOO L DISTRICT MAY INCLUDE A LOCAL FOOD COMPONE NT. (3) IN DETERMINING THE AM OUNT OF A GRANT AWARD, THE DEPARTMENT SHALL MULT IPLY THE PREVIOUS FI SCAL YEAR’S MEAL COUNT FOR THE DETERMINED ELIGI BLE MEALS AND PARTIC IPATING SCHOOLS BY T HE NUMBER OF DAYS IN THE DETER MINED TIME FRAME AND MULTIPLY THIS PRODUC T BY 20 CENTS. (4) A LOCAL SCHOOL DISTRIC T MAY USE GRANT MONEY FOR THE PURCHASE, PROCESSING, PROCUREMENT , STAFFING, OR INFRASTRUCTURE INVESTMENTS NEEDED T O MEET THE NUMBER OF MEALS WITH A LOCAL F OOD COMPONENT . (G) IN AWARDING GRANTS UN DER THIS SECTION , THE DEPARTMENT SHALL PRIORITIZE LOCAL SCH OOL DISTRICTS THAT: (1) DEMONSTRATE HOW MEAL REIMBURSEMENTS WOULD SUPPORT THE DEVELOPMENT , CULTIVATION, AND LONGSTANDING COM MITMENT TO THE INCORPORATION OF LOC AL FOOD COMPONENTS I NTO SCHOOL MEALS ; AND LAWRENCE J. HOGAN, JR., Governor Ch. 480 – 9 – (2) DEMONSTRATE ARRANGEME NTS THAT SUPPORT MIN ORITY OR SOCIALLY DISADVANTAG ED PRODUCERS , PROCESSORS , DISTRIBUTORS , OR BUSINESSES. (H) FOR FISCAL YEARS 2024 AND 2025, THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDGET BI LL AN APPROPRIATION OF AT LEAST $500,000 TO THE FUND. (I) (1) ON OR BEFORE JULY 1, 2023, AND JULY 1, 2024, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE DEPARTMENT SHALL SUBMIT AN INTERIM RE PORT TO THE GENERAL ASSEMBLY THAT PROVIDE S AN EVALUATION OF THE PI LOT PROGRAM . (2) ON OR BEFORE JULY 1, 2025, THE DEPARTMENT SHALL S UBMIT A FINAL REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY ON THE PILOT PROGRAM, INCLUDING A RECOMMENDATION ON WH ETHER OR NOT THE PIL OT PROGRAM SHOULD BE CONTINUED. SECTION 3. AND BE IT FURTHER ENACTED, That it is the intent of the General Assembly: (1) to encourage counties and municipalities to contribute supplemental financial support to nonprofit organizations that are supported by the Maryland Farms and Families Fund established under § 10–2003 of the Agriculture Article to help increase the reach and capacity of the federal Farmers Market Nutrition Program to serve food–insecure individuals and families as well as participating farmers; and (2) that any financial support provided by a county or municipality in accordance with item (1) of this section be used as follows: (i) 80% for distribution to participating farmers markets within the local jurisdiction as matching funds for purchases made with benefits under the Farmers Market Nutrition Program, Supplemental Nutrition Assistance Program, and Special Supplemental Food Program for Women, Infants, and Children and, if available, local market access coordination; and (ii) 20% for retention by the nonprofit organization for program development, promotion and outreach, training, data collection, and administrative costs. SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2022. Section 2 of this Act shall remain effective for a period of 4 years and, at the end of June 30, 2026, Section 2 of this Act, with no further action required by the General Assembly, shall be abrogated and of no further force and effect. Ch. 480 2022 LAWS OF MARYLAND – 10 – Approved by the Governor, May 16, 2022.