EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0386*
SENATE BILL 386
P2, M2, M4 3lr1407
SB 985/20 – EHE CF HB 63
By: Senator Hester
Introduced and read first time: February 1, 2023
Assigned to: Education, Energy, and the Environment
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
Annotated Code of Maryland 28 2 SENATE BILL 386
(2021 Replacement Volume and 2022 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Tax – Property 3
Section 13–209(g)(3)(i)2. 4
Annotated Code of Maryland 5
(2019 Replacement Volume and 2022 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Education 9
9.11–101. 10
(a) In this title the following words have the meanings indicated. 11
(b) “Fund” means the Maryland Farm–to–School Meal Grant Fund. 12
(c) “Local” means an agricultural product grown, harvested, produced, or 13
processed from a certified local farm [enterprise]. 14
(d) “Pilot program” means the Maryland Farm –to–School Meal Grant Pilot 15
Program. 16
Article – State Finance and Procurement 17
11–203. 18
(e) (1) In this subsection, “University” means the University System of 19
Maryland, Morgan State University, or St. Mary’s College of Maryland. 20
(2) Except as otherwise provided in this subsection, this Division II does 21
not apply to the University System of Maryland, Morgan State University, St. Mary’s 22
College of Maryland, or Baltimore City Community College. 23
(5) (i) Except as provided in paragraph (7) of this subsection, the 24
following provisions of Division II of this article apply to a University and to Baltimore City 25
Community College: 26
1. § 11–205 of this subtitle (“Collusion”); 27
2. § 11–205.1 of this subtitle (“Falsification, concealment, 28
etc., of material facts”); 29
3. § 13–219 of this article (“Required clauses – 30
Nondiscrimination clause”); 31 SENATE BILL 386 3
4. § 13–225 of this article (“Retainage”); 1
5. Title 14, Subtitle 3 of this article (“Minority Business 2
Participation”); 3
6. Title 14, Subtitle 7 of this article (“Certified Local Farm 4
[Enterprise] AND CHESAPEAKE INVASIVE SPECIES PROVIDER Program”); 5
7. Title 15, Subtitle 1 of this article (“Procurement Contract 6
Administration”); 7
8. § 15–226 of this article (“Policy established; timing of 8
payments; notice upon nonpayment; disputes; appeals”); and 9
9. Title 16 of this article (“Suspension and Debarment of 10
Contractors”). 11
Subtitle 7. Certified Local Farm [Enterprise] AND CHESAPEAKE INVASIVE SPECIES 12
PROVIDER Program. 13
14–701. 14
(a) In this subtitle the following words have the meanings indicated. 15
(B) “CERTIFIED CHESAPEAKE INVASIVE S PECIES” MEANS A FINFISH 16
SPECIES THAT IS: 17
(1) RANKED AS HIGH PRIOR ITY IN THE MARYLAND AQUATIC 18
NUISANCE SPECIES MANAGEMENT PLAN; AND 19
(2) HARVESTED FROM THE CHESAPEAKE BAY OR ITS TRIBUTARIE S. 20
(C) “CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER ” MEANS A 21
PERSON LICENSED AND AUTHORIZED AS A SEAF OOD DEALER UNDER § 4–701 OF THE 22
NATURAL RESOURCES ARTICLE THAT: 23
(1) IS CERTIFIED BY THE DEPARTMENT IN ACCORDA NCE WITH 24
REGULATIONS ADOPTED UNDER THIS SUBTITL E; AND 25
(2) CAN DEMONSTRATE THAT THE PERSON ’S PRODUCT IS A 26
CERTIFIED CHESAPEAKE INVASIVE S PECIES. 27
[(b)] (D) “Certified local farm [enterprise]” means a local farm enterprise that: 28
4 SENATE BILL 386
(1) meets the nutrient management requirements established under Title 1
8, Subtitle 8 of the Agriculture Article; and 2
(2) is certified by the Department in accordance with regulations adopted 3
under this subtitle. 4
[(c)] (E) “Department” means the Department of Agriculture. 5
[(d)] (F) “Office” means the Office for the Certified Local Farm [Enterprise] AND 6
CHESAPEAKE INVASIVE SPECIES PROVIDER Program. 7
[(e)] (G) “Program” means the Certified Local Farm [Enterprise] AND 8
CHESAPEAKE INVASIVE SPECIES PROVIDER Program. 9
14–702. 10
(a) (1) There is an Office for the Certified Local Farm [Enterprise] AND 11
CHESAPEAKE INVASIVE SPECIES PROVIDER Program in the Department. 12
(2) The purpose of the Office is to administer the Program and facilitate 13
the participation of certified local [farm enterprises] FARMS AND CERTIFIED 14
CHESAPEAKE I NVASIVE SPECIES PROV IDERS in the Program. 15
(b) (1) There is a Certified Local Farm [Enterprise] AND CHESAPEAKE 16
INVASIVE SPECIES PROVIDER Program in the Office. 17
(2) The purpose of the Program is to encourage each unit to try to achieve 18
an overall percentage goal of 20% of the unit’s total dollar value of procurement contracts 19
for food from certified local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE 20
INVASIVE SPEC IES PROVIDERS . 21
(c) The Department shall create two positions to provide staff for the Office. 22
14–703. 23
(a) (1) Each unit shall structure procurement procedures, consistent with the 24
purposes of this subtitle, to try to achieve an overall percentage goal of 20% of the unit’s 25
total dollar value of procurement contracts for food being made directly or indirectly to 26
certified local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE 27
SPECIES PROVIDERS . 28
(2) A unit may achieve the 20% goal through: 29
(i) competitive sealed bids and proposals; and 30
(ii) small procurement in accordance with § 13–109 of this article. 31 SENATE BILL 386 5
(3) For procurements conducted by competitive sealed bidding, a unit shall 1
award the contract to the responsible bidder that submits the responsive bid that: 2
(i) 1. has the lowest bid price; 3
2. has the lowest evaluated bid price; or 4
3. for procurements subject to § 11–202(3) of this article, is 5
the bid most favorable to the State; and 6
(ii) meets or makes a good faith effort to meet any applicable goal 7
established under this subtitle. 8
(4) For procurements conducted by competitive sealed proposals, a unit 9
shall award the contract to the responsible offeror: 10
(i) proposing the most advantageous offer; and 11
(ii) that meets or makes a good faith effort to meet any applicable 12
goal established under this subtitle. 13
(b) The Office, in consultation with the Secretary of Agriculture, shall establish 14
guidelines for each unit to consider when determining the appropriate local farm 15
[enterprise] AND CHESAPEAKE INVASIVE S PECIES PROVIDER participation percentage 16
goal for a procurement contract for food in accordance with subsection (c) of this section. 17
(c) Each unit shall: 18
(1) consider the practical severability of all procurement contracts for food 19
and, in accordance with § 11–201 of this article, may not bundle contracts; 20
(2) implement a program that will enable the unit to evaluate each 21
procurement contract for food to determine the appropriate local farm [enterprise] AND 22
CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals, if any, for the contract 23
based on: 24
(i) the availability of certified local [farm enterprises] FARMS AND 25
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS to respond competitively to 26
contract opportunities; and 27
(ii) the contract goal guidelines established under subsection (b) of 28
this section; 29
(3) monitor and collect data with respect to a unit’s compliance with 30
contract goals, including explanations for failing to meet contract goals; and 31
6 SENATE BILL 386
(4) institute corrective action when a unit does not make good faith efforts 1
to comply with contract goals. 2
(d) The Office shall, in consultation with the Secretary of Agriculture, establish 3
procedures governing how the participation of certified local [farm enterprises] FARMS 4
AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS is counted toward 5
contract goals under the Program. 6
(e) (1) (i) If a unit does not achieve the certified local farm [enterprise] 7
AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals on a 8
procurement contract for food, the unit shall demonstrate to the Office that the unit took 9
all necessary and reasonable steps to achieve the goals. 10
(ii) A waiver of any part of the certified local farm [enterprise] AND 11
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER goals for a procurement 12
contract for food shall be granted if a unit provides to the Office a reasonable demonstration 13
of good faith efforts to achieve the goals. 14
(2) The Office may waive any of the requirements of this subsection 15
relating to the establishment, use, and waiver of certified local farm [enterprise] AND 16
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER goals for a sole source, 17
expedited, or emergency procurement in which the public interest cannot reasonably 18
accommodate use of those requirements. 19
(3) Except for waivers granted in accordance with paragraph (2) of this 20
subsection, when a waiver determination is made, the Office shall issue the determination 21
in writing. 22
(4) On or before July 31 each year, the Office shall submit directly to the 23
Board an annual report of waivers requested and waivers granted under this subsection. 24
(5) The report required under paragraph (4) of this subsection shall contain 25
the following information on those procurement contracts for food where the Office 26
considered a unit’s request for waiver of all or a portion of the local farm [enterprise] AND 27
CHESAPEAKE INVASIVE S PECIES PROVIDER goals: 28
(i) the contract titles, numbers, and dates; 29
(ii) the number of waiver requests received; 30
(iii) the number of waiver requests granted; and 31
(iv) any other information specifically requested by the Board. 32
(f) The Board shall keep a record of information regarding any waivers requested 33
in accordance with this section and submit a copy of the record to the Senate Education, 34 SENATE BILL 386 7
Health, and Environmental Affairs Committee and the House Health and Government 1
Operations Committee on or before October 1 each year, in accordance with § 2–1257 of the 2
State Government Article. 3
14–704. 4
(a) In accordance with Title 10, Subtitle 1 of the State Government Article, the 5
Office shall adopt regulations to implement this subtitle. 6
(b) The regulations shall establish procedures to be followed by units, certified 7
local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE S PECIES 8
PROVIDERS, and successful bidders or offerors to maximize notice to, and the opportunity 9
to participate in the food procurement process by, a broad range of local [farm enterprises] 10
FARMS AND CHESAPEAKE INVASIVE S PECIES PROVIDERS . 11
(c) The regulations shall include provisions: 12
(1) designating the Office to certify and decertify local [farm enterprises] 13
FARMS AND CHESAPEAKE INVASIVE S PECIES PROVIDERS for all units through a single 14
process, including provisions that promote and facilitate the submission of some or all of 15
the certification application through an electronic process; 16
(2) specifying that a unit may not allow a local farm [enterprise] OR 17
CHESAPEAKE INVASIVE S PECIES PROVIDER to participate as if it were a certified local 18
farm [enterprise] OR CERTIFIED CHESAPEAKE INVASIVE SPECIES PROVIDER if the 19
local [farm enterprise’s] FARM’S OR CHESAPEAKE INVASIVE S PECIES PROVIDER ’S 20
certification is pending; 21
(3) consistent with this subtitle, relating to any circumstances under which 22
the Office may waive obligations of a unit relating to certified local farm [enterprise] AND 23
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals; and 24
(4) that the Office considers necessary or appropriate to: 25
(i) encourage participation by local [farm enterprises] FARMS AND 26
CHESAPEAKE INVASIVE S PECIES PROVIDERS ; and 27
(ii) protect the integrity of the procurement process. 28
14–705. 29
(a) In the same manner and with the same fees as provided by law in civil cases, 30
in a matter regarding the decertification of a certified local farm [enterprise] OR 31
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER , the Office may: 32
(1) subpoena witnesses; 33 8 SENATE BILL 386
(2) administer oaths; and 1
(3) compel the production of records, books, papers, and other documents. 2
(b) If a person fails to comply with a subpoena issued under subsection (a) of this 3
section, or fails to produce documents or other evidence, on petition of the Office, a court of 4
competent jurisdiction may pass an order directing compliance with the subpoena or 5
compelling the production of documents or other evidence. 6
(c) The Office shall make available a fraud hotline for reporting violations of this 7
section. 8
14–706. 9
(a) Within 90 days after the end of the fiscal year, each unit shall report to the 10
Office. 11
(b) A report under this section for the preceding fiscal year shall: 12
(1) state the total number and value of procurement contracts for food 13
between the unit and certified local [farm enterprises] FARMS AND CERTIFIED 14
CHESAPEAKE INVASIVE S PECIES PROVIDERS ; 15
(2) indicate the percentage that those procurement contracts for food 16
represent of the total number and value of procurement contracts for food awarded by a 17
unit; 18
(3) state the total number and the names of certified local [farm 19
enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS 20
that participated in procurement contracts for food awarded by a unit; 21
(4) for each certified local farm [enterprise] OR CERTIFIED CHESAPEAKE 22
INVASIVE SPECIES PROVIDER included in the report under item (3) of this subsection, list 23
all procurement contracts for food awarded by a unit to the certified local farm [enterprise] 24
OR CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER , including a description of 25
the contract; and 26
(5) contain other such information as required by the Office, subject to 27
approval by the Board. 28
(c) A report under this section shall be: 29
(1) in a form prescribed by the Office; and 30
(2) approved by the Board. 31 SENATE BILL 386 9
14–707. 1
(a) (1) The Department shall develop and maintain a directory of all certified 2
local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE S PECIES 3
PROVIDERS. 4
(2) The directory shall be accessible to the public on the Department’s 5
website. 6
(b) The Department shall include the following information for each certified local 7
farm [enterprise] AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER 8
included in the directory: 9
(1) all contract information available to the Department for the certified 10
local farm [enterprise] OR CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER ; 11
(2) the certification number of the certified local farm [enterprise] OR 12
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER ; and 13
(3) any other information the Department considers necessary or 14
appropriate to encourage participation in the procurement process by local [farm 15
enterprises] FARMS AND CHESAPEAKE INVASIVE S PECIES PROVIDERS . 16
(c) The Department shall: 17
(1) update the directory at least once a year; and 18
(2) identify as recently certified in the directory each local farm 19
[enterprise] AND CHESAPEAKE INVASIVE S PECIES PROVIDER that has obtained 20
certification during the calendar year. 21
14–708. 22
(a) There is a Certified Local Farm [Enterprise] AND CHESAPEAKE INVASIVE 23
SPECIES PROVIDER Food Aggregation Grant Fund. 24
(b) The purpose of the Fund is to support the creation of food aggregation, storage, 25
processing, and distribution sites across the State through grants and near–equity 26
investments. 27
(c) The Maryland Agricultural and Resource–Based Industry Development 28
Corporation shall administer the Fund. 29
(d) The Fund consists of: 30
10 SENATE BILL 386
(1) money appropriated in the State budget to the Fund; 1
(2) principal that is repaid from near–equity investments; and 2
(3) any other money from any other source accepted for the benefit of the 3
Fund. 4
(e) The Fund may be used only for establishing and operating food aggregation, 5
storage, processing, and distribution sites across the State through grants and near–equity 6
investments. 7
Article – Tax – Property 8
13–209. 9
(g) (3) (i) 2. For fiscal year 2025 only, the Governor shall include in the 10
annual budget bill a General Fund appropriation in the amount of $2,735,000 to the 11
Maryland Agricultural and Resource–Based Industry Development Corporation 12
established under Title 10, Subtitle 5 of the Economic Development Article to be used as 13
follows: 14
A. $2,300,000 to support the Corporation’s rural business 15
loan programs and small matching grant programs; and 16
B. $435,000 for grants and near–equity investments to: 17
I. support the creation or expansion of agricultural product 18
aggregation and storage sites; and 19
II. facilitate participation in the Certified Local Farm 20
[Enterprise] AND CHESAPEAKE INVASIVE SPECIES PROVIDER Program. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2023. 23