EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0063*
HOUSE BILL 63
P2, M2, M4 3lr0676
(PRE–FILED) CF 3lr1407
By: Delegate Charkoudian
Requested: November 1, 2022
Introduced and read first time: January 11, 2023
Assigned to: Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Certified Local Farm and Chesapeake Invasive Species Provider Program – 2
Establishment 3
FOR the purpose of altering the Certified Local Farm Enterprise Program to be the 4
Certified Local Farm and Chesapeake Invasive Species Provider Program; 5
expanding the purpose of the Program to include food from certified Chesapeake 6
invasive species providers in the overall percentage goal for certain procurement 7
contracts; altering the Certified Local Farm Enterprise Food Aggregation Grant 8
Fund to be the Certified Local Farm and Chesapeake Invasive Species Provider Food 9
Aggregation Grant Fund; and generally relating to the Certified Local Farm and 10
Chesapeake Invasive Species Provider Program and the Certified Local Farm and 11
Chesapeake Invasive Species Provider Food Aggregation Grant Fund. 12
BY repealing and reenacting, with amendments, 13
Article – Education 14
Section 9.11–101 15
Annotated Code of Maryland 16
(2022 Replacement Volume) 17
BY repealing and reenacting, without amendments, 18
Article – State Finance and Procurement 19
Section 11–203(e)(1) and (2) 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2022 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – State Finance and Procurement 24
Section 11–203(e)(5)(i); and 14–701 through 14–708 to be under the amended 25
subtitle “Subtitle 7. Certified Local Farm and Chesapeake Invasive Species 26
Provider Program” 27 2 HOUSE BILL 63
Annotated Code of Maryland 1
(2021 Replacement Volume and 2022 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Tax – Property 4
Section 13–209(g)(3)(i)2. 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2022 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Education 10
9.11–101. 11
(a) In this title the following words have the meanings indicated. 12
(b) “Fund” means the Maryland Farm–to–School Meal Grant Fund. 13
(c) “Local” means an agricultural product grown, harvested, produced, or 14
processed from a certified local farm [enterprise]. 15
(d) “Pilot program” means the Maryland Farm –to–School Meal Grant Pilot 16
Program. 17
Article – State Finance and Procurement 18
11–203. 19
(e) (1) In this subsection, “University” means the University System of 20
Maryland, Morgan State University, or St. Mary’s College of Maryland. 21
(2) Except as otherwise provided in this subsection, this Division II does 22
not apply to the University System of Maryland, Morgan State University, St. Mary’s 23
College of Maryland, or Baltimore City Community College. 24
(5) (i) Except as provided in paragraph (7) of this subsection, the 25
following provisions of Division II of this article apply to a University and to Baltimore City 26
Community College: 27
1. § 11–205 of this subtitle (“Collusion”); 28
2. § 11–205.1 of this subtitle (“Falsification, concealment, 29
etc., of material facts”); 30
HOUSE BILL 63 3
3. § 13–219 of this article (“Required clauses – 1
Nondiscrimination clause”); 2
4. § 13–225 of this article (“Retainage”); 3
5. Title 14, Subtitle 3 of this article (“Minority Business 4
Participation”); 5
6. Title 14, Subtitle 7 of this article (“Certified Local Farm 6
[Enterprise] AND CHESAPEAKE INVASIVE SPECIES PROVIDER Program”); 7
7. Title 15, Subtitle 1 of this article (“Procurement Contract 8
Administration”); 9
8. § 15–226 of this article (“Policy established; timing of 10
payments; notice upon nonpayment; disputes; appeals”); and 11
9. Title 16 of this article (“Suspension and Debarment of 12
Contractors”). 13
Subtitle 7. Certified Local Farm [Enterprise] AND CHESAPEAKE INVASIVE SPECIES 14
PROVIDER Program. 15
14–701. 16
(a) In this subtitle the following words have the meanings indicated. 17
(B) “CERTIFIED CHESAPEAKE INVASIVE SPECIES” MEANS A FINFISH 18
SPECIES THAT IS: 19
(1) RANKED AS HIGH PRIORI TY IN THE MARYLAND AQUATIC 20
NUISANCE SPECIES MANAGEMENT PLAN; AND 21
(2) HARVESTED FROM THE CHESAPEAKE BAY OR ITS TRIBUTARIE S. 22
(C) “CERTIFIED CHESAPEAKE INVASIVE SPECIES PROVIDER” MEANS A 23
PERSON LICENSE D AND AUTHORIZED AS A SEAFOOD DEALER UNDER § 4–701 OF THE 24
NATURAL RESOURCES ARTICLE THAT: 25
(1) IS CERTIFIED BY THE DEPARTMENT IN ACCORDA NCE WITH 26
REGULATIONS ADOPTED UNDER THIS SUBTITLE ; AND 27
(2) CAN DEMONSTRATE THAT THE PERSON’S PRODUCT IS A 28
CERTIFIED CHESAPEAKE INVASIVE SPECIES. 29
4 HOUSE BILL 63
[(b)] (D) “Certified local farm [enterprise]” means a local farm enterprise that: 1
(1) meets the nutrient management requirements established under Title 2
8, Subtitle 8 of the Agriculture Article; and 3
(2) is certified by the Department in accordance with regulations adopted 4
under this subtitle. 5
[(c)] (E) “Department” means the Department of Agriculture. 6
[(d)] (F) “Office” means the Office for the Certified Local Farm [Enterprise] AND 7
CHESAPEAKE INVASIVE SPECIES PROVIDER Program. 8
[(e)] (G) “Program” means the Certified Local Farm [Enterprise] AND 9
CHESAPEAKE INVASIVE SPECIES PROVIDER Program. 10
14–702. 11
(a) (1) There is an Office for the Certified Local Farm [Enterprise] AND 12
CHESAPEAKE INVASIVE SPECIES PROVIDER Program in the Department. 13
(2) The purpose of the Office is to administer the Program and facilitate 14
the participation of certified local [farm enterprises] FARMS AND CERTIFIED 15
CHESAPEAKE INVASIVE S PECIES PROVIDERS in the Program. 16
(b) (1) There is a Certified Local Farm [Enterprise] AND CHESAPEAKE 17
INVASIVE SPECIES PROVIDER Program in the Office. 18
(2) The purpose of the Program is to encourage each unit to try to achieve 19
an overall percentage goal of 20% of the unit’s total dollar value of procurement contracts 20
for food from certified local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE 21
INVASIVE SPECIES PRO VIDERS. 22
(c) The Department shall create two positions to provide staff for the Office. 23
14–703. 24
(a) (1) Each unit shall structure procurement procedures, consistent with the 25
purposes of this subtitle, to try to achieve an overall percentage goal of 20% of the unit’s 26
total dollar value of procurement contracts for food being made directly or indirectly to 27
certified local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE 28
SPECIES PROVIDERS. 29
(2) A unit may achieve the 20% goal through: 30
(i) competitive sealed bids and proposals; and 31 HOUSE BILL 63 5
(ii) small procurement in accordance with § 13–109 of this article. 1
(3) For procurements conducted by competitive sealed bidding, a unit shall 2
award the contract to the responsible bidder that submits the responsive bid that: 3
(i) 1. has the lowest bid price; 4
2. has the lowest evaluated bid price; or 5
3. for procurements subject to § 11–202(3) of this article, is 6
the bid most favorable to the State; and 7
(ii) meets or makes a good faith effort to meet any applicable goal 8
established under this subtitle. 9
(4) For procurements conducted by competitive sealed proposals, a unit 10
shall award the contract to the responsible offeror: 11
(i) proposing the most advantageous offer; and 12
(ii) that meets or makes a good faith effort to meet any applicable 13
goal established under this subtitle. 14
(b) The Office, in consultation with the Secretary of Agriculture, shall establish 15
guidelines for each unit to consider when determining the appropriate local farm 16
[enterprise] AND CHESAPEAKE INVASIVE S PECIES PROVIDER participation percentage 17
goal for a procurement contract for food in accordance with subsection (c) of this section. 18
(c) Each unit shall: 19
(1) consider the practical severability of all procurement contracts for food 20
and, in accordance with § 11–201 of this article, may not bundle contracts; 21
(2) implement a program that will enable the unit to evaluate each 22
procurement contract for food to determine the appropriate local farm [enterprise] AND 23
CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals, if any, for the contract 24
based on: 25
(i) the availability of certified local [farm enterprises] FARMS AND 26
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS to respond competitively to 27
contract opportunities; and 28
(ii) the contract goal guidelines established under subsection (b) of 29
this section; 30
6 HOUSE BILL 63
(3) monitor and collect data with respect to a unit’s compliance with 1
contract goals, including explanations for failing to meet contract goals; and 2
(4) institute corrective action when a unit does not make good faith efforts 3
to comply with contract goals. 4
(d) The Office shall, in consultation with the Secretary of Agriculture, establish 5
procedures governing how the participation of certified local [farm enterprises] FARMS 6
AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS is counted toward 7
contract goals under the Program. 8
(e) (1) (i) If a unit does not achieve the certified local farm [enterprise] 9
AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals on a 10
procurement contract for food, the unit shall demonstrate to the Office that the unit took 11
all necessary and reasonable steps to achieve the goals. 12
(ii) A waiver of any part of the certified local farm [enterprise] AND 13
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER goals for a procurement 14
contract for food shall be granted if a unit provides to the Office a reasonable demonstration 15
of good faith efforts to achieve the goals. 16
(2) The Office may waive any of the requirements of this subsection 17
relating to the establishment, use, and waiver of certified local farm [enterprise] AND 18
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER goals for a sole source, 19
expedited, or emergency procurement in which the public interest cannot reasonably 20
accommodate use of those requirements. 21
(3) Except for waivers granted in accordance with paragraph (2) of this 22
subsection, when a waiver determination is made, the Office shall issue the determination 23
in writing. 24
(4) On or before July 31 each year, the Office shall submit directly to the 25
Board an annual report of waivers requested and waivers granted under this subsection. 26
(5) The report required under paragraph (4) of this subsection shall contain 27
the following information on those procurement contracts for food where the Office 28
considered a unit’s request for waiver of all or a portion of the local farm [enterprise] AND 29
CHESAPEAKE INVASIVE S PECIES PROVIDER goals: 30
(i) the contract titles, numbers, and dates; 31
(ii) the number of waiver requests received; 32
(iii) the number of waiver requests granted; and 33
(iv) any other information specifically requested by the Board. 34 HOUSE BILL 63 7
(f) The Board shall keep a record of information regarding any waivers requested 1
in accordance with this section and submit a copy of the record to the Senate Education, 2
Health, and Environmental Affairs Committee and the House Health and Government 3
Operations Committee on or before October 1 each year, in accordance with § 2–1257 of the 4
State Government Article. 5
14–704. 6
(a) In accordance with Title 10, Subtitle 1 of the State Government Article, the 7
Office shall adopt regulations to implement this subtitle. 8
(b) The regulations shall establish procedures to be followed by units, certified 9
local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE S PECIES 10
PROVIDERS, and successful bidders or offerors to maximize notice to, and the opportunity 11
to participate in the food procurement process by, a broad range of local [farm enterprises] 12
FARMS AND CHESAPEAKE INVASIVE S PECIES PROVIDERS . 13
(c) The regulations shall include provisions: 14
(1) designating the Office to certify and decertify local [farm enterprises] 15
FARMS AND CHESAPEAKE INVASIVE S PECIES PROVIDERS for all units through a single 16
process, including provisions that promote and facilitate the submission of some or all of 17
the certification application through an electronic process; 18
(2) specifying that a unit may not allow a local farm [enterprise] OR 19
CHESAPEAKE INVASIVE S PECIES PROVIDER to participate as if it were a certified local 20
farm [enterprise] OR CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER if the 21
local [farm enterprise’s] FARM’S OR CHESAPEAKE INVASIVE S PECIES PROVIDER ’S 22
certification is pending; 23
(3) consistent with this subtitle, relating to any circumstances under which 24
the Office may waive obligations of a unit relating to certified local farm [enterprise] AND 25
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals; and 26
(4) that the Office considers necessary or appropriate to: 27
(i) encourage participation by local [farm enterprises] FARMS AND 28
CHESAPEAKE INVASIVE S PECIES PROVIDERS ; and 29
(ii) protect the integrity of the procurement process. 30
14–705. 31
8 HOUSE BILL 63
(a) In the same manner and with the same fees as provided by law in civil cases, 1
in a matter regarding the decertification of a certified local farm [enterprise] OR 2
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER , the Office may: 3
(1) subpoena witnesses; 4
(2) administer oaths; and 5
(3) compel the production of records, books, papers, and other documents. 6
(b) If a person fails to comply with a subpoena issued under subsection (a) of this 7
section, or fails to produce documents or other evidence, on petition of the Office, a court of 8
competent jurisdiction may pass an order directing compliance with the subpoena or 9
compelling the production of documents or other evidence. 10
(c) The Office shall make available a fraud hotline for reporting violations of this 11
section. 12
14–706. 13
(a) Within 90 days after the end of the fiscal year, each unit shall report to the 14
Office. 15
(b) A report under this section for the preceding fiscal year shall: 16
(1) state the total number and value of procurement contracts for food 17
between the unit and certified local [farm enterprises] FARMS AND CERTIFIED 18
CHESAPEAKE INVASIVE S PECIES PROVIDERS; 19
(2) indicate the percentage that those procurement contracts for food 20
represent of the total number and value of procurement contracts for food awarded by a 21
unit; 22
(3) state the total number and the names of certified local [farm 23
enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS 24
that participated in procurement contracts for food awarded by a unit; 25
(4) for each certified local farm [enterprise] OR CERTIFIED CHESAPEAKE 26
INVASIVE SPECIES PROVIDER included in the report under item (3) of this subsection, list 27
all procurement contracts for food awarded by a unit to the certified local farm [enterprise] 28
OR CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER , including a description of 29
the contract; and 30
(5) contain other such information as required by the Office, subject to 31
approval by the Board. 32
HOUSE BILL 63 9
(c) A report under this section shall be: 1
(1) in a form prescribed by the Office; and 2
(2) approved by the Board. 3
14–707. 4
(a) (1) The Department shall develop and maintain a directory of all certified 5
local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE S PECIES 6
PROVIDERS. 7
(2) The directory shall be accessible to the public on the Department’s 8
website. 9
(b) The Department shall include the following information for each certified local 10
farm [enterprise] AND CERTIFIED CHESAPEAKE INVASIVE SPE CIES PROVIDER 11
included in the directory: 12
(1) all contract information available to the Department for the certified 13
local farm [enterprise] OR CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER ; 14
(2) the certification number of the certified local farm [enterprise] OR 15
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER ; and 16
(3) any other information the Department considers necessary or 17
appropriate to encourage participation in the procurement process by local [farm 18
enterprises] FARMS AND CHESAPEAKE INVASIVE S PECIES PROVIDERS . 19
(c) The Department shall: 20
(1) update the directory at least once a year; and 21
(2) identify as recently certified in the directory each local farm 22
[enterprise] AND CHESAPEAKE INVASIVE S PECIES PROVIDER that has obtained 23
certification during the calendar year. 24
14–708. 25
(a) There is a Certified Local Farm [Enterprise] AND CHESAPEAKE INVASIVE 26
SPECIES PROVIDER Food Aggregation Grant Fund. 27
(b) The purpose of the Fund is to support the creation of food aggregation, storage, 28
processing, and distribution sites across the State through grants and near–equity 29
investments. 30
10 HOUSE BILL 63
(c) The Maryland Agricultural and Resource–Based Industry Development 1
Corporation shall administer the Fund. 2
(d) The Fund consists of: 3
(1) money appropriated in the State budget to the Fund; 4
(2) principal that is repaid from near–equity investments; and 5
(3) any other money from any other source accepted for the benefit of the 6
Fund. 7
(e) The Fund may be used only for establishing and operating food aggregation, 8
storage, processing, and distribution sites across the State through grants and near–equity 9
investments. 10
Article – Tax – Property 11
13–209. 12
(g) (3) (i) 2. For fiscal year 2025 only, the Governor shall include in the 13
annual budget bill a General Fund appropriation in the amount of $2,735,000 to the 14
Maryland Agricultural and Resource –Based Industry Development Corporation 15
established under Title 10, Subtitle 5 of the Economic Development Article to be used as 16
follows: 17
A. $2,300,000 to support the Corporation’s rural business 18
loan programs and small matching grant programs; and 19
B. $435,000 for grants and near–equity investments to: 20
I. support the creation or expansion of agricultural product 21
aggregation and storage sites; and 22
II. facilitate participation in the Certified Local Farm 23
[Enterprise] AND CHESAPEAKE INVASIVE SPECIES PROVIDER Program. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2023. 26