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.
*sb0386*
SENATE BILL 386
P2, M2, M4 3lr1407
SB 985/20 – EHE CF HB 63
By: Senator Senators Hester and Bailey
Introduced and read first time: February 1, 2023
Assigned to: Education, Energy, and the Environment
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: February 25, 2023
CHAPTER ______
AN ACT concerning 1
Certified Local Farm and Chesapeake Invasive Species Provider Fish 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 Fish 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 Fish 9
Food Aggregation Grant Fund; and generally relating to the Certified Local Farm 10
and Chesapeake Invasive Species Provider Fish Program and the Certified Local 11
Farm and Chesapeake Invasive Species Provider Fish Food Aggregation Grant 12
Fund. 13
BY repealing and reenacting, with amendments, 14
Article – Education 15
Section 9.11–101 16
Annotated Code of Maryland 17
(2022 Replacement Volume) 18
BY repealing and reenacting, without amendments, 19
Article – State Finance and Procurement 20
Section 11–203(e)(1) and (2) 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2022 Supplement) 23 2 SENATE BILL 386
BY repealing and reenacting, with amendments, 1
Article – State Finance and Procurement 2
Section 11–203(e)(5)(i); and 14–701 through 14–708 to be under the amended 3
subtitle “Subtitle 7. Certified Local Farm and Chesapeake Invasive Species 4
Provider Fish Program” 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2022 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Tax – Property 9
Section 13–209(g)(3)(i)2. 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2022 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Education 15
9.11–101. 16
(a) In this title the following words have the meanings indicated. 17
(b) “Fund” means the Maryland Farm–to–School Meal Grant Fund. 18
(c) “Local” means an agricultural product grown, harvested, produced, or 19
processed from a certified local farm [enterprise]. 20
(d) “Pilot program” means the Maryland Farm –to–School Meal Grant Pilot 21
Program. 22
Article – State Finance and Procurement 23
11–203. 24
(e) (1) In this subsection, “University” means the University System of 25
Maryland, Morgan State University, or St. Mary’s College of Maryland. 26
(2) Except as otherwise provided in this subsection, this Division II does 27
not apply to the University System of Maryland, Morgan State University, St. Mary’s 28
College of Maryland, or Baltimore City Community College. 29
(5) (i) Except as provided in paragraph (7) of this subsection, the 30
following provisions of Division II of this article apply to a University and to Baltimore City 31
Community College: 32
SENATE BILL 386 3
1. § 11–205 of this subtitle (“Collusion”); 1
2. § 11–205.1 of this subtitle (“Falsification, concealment, 2
etc., of material facts”); 3
3. § 13–219 of this article (“Required clauses – 4
Nondiscrimination clause”); 5
4. § 13–225 of this article (“Retainage”); 6
5. Title 14, Subtitle 3 of this article (“Minority Business 7
Participation”); 8
6. Title 14, Subtitle 7 of this article (“Certified Local Farm 9
[Enterprise] AND CHESAPEAKE INVASIVE SPECIES PROVIDER FISH Program”); 10
7. Title 15, Subtitle 1 of this article (“Procurement Contract 11
Administration”); 12
8. § 15–226 of this article (“Policy established; timing of 13
payments; notice upon nonpayment; disputes; appeals”); and 14
9. Title 16 of this article (“Suspension and Debarment of 15
Contractors”). 16
Subtitle 7. Certified Local Farm [Enterprise] AND CHESAPEAKE INVASIVE SPECIES 17
PROVIDER FISH Program. 18
14–701. 19
(a) In this subtitle the following words have the meanings indicated. 20
(B) “CERTIFIED CHESAPEAKE INVASIVE S PECIES” MEANS A FINFISH 21
SPECIES THAT IS: 22
(1) RANKED AS HIGH PRIOR ITY IN THE MARYLAND AQUATIC 23
NUISANCE SPECIES MANAGEMENT PLAN; AND 24
(2) HARVESTED FROM THE CHESAPEAKE BAY OR ITS TRIBUTARIE S. 25
(C) “CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER ” MEANS A 26
PERSON LICENSED AND AUTHORIZED AS A SEAF OOD DEALER UNDER § 4–701 OF THE 27
NATURAL RESOURCES ARTICLE THAT: 28
(1) IS CERTIFIED BY THE DEPARTMENT IN ACCORDA NCE WITH 29
REGULATIONS ADOPTED UNDER THIS SUBTITLE ; AND 30 4 SENATE BILL 386
(2) CAN DEMONSTRATE THA T THE PERSON ’S PRODUCT IS A 1
CERTIFIED CHESAPEAKE INVASIVE S PECIES. 2
[(b)] (D) “Certified local [farm enterprise”] FARM” means a local farm 3
enterprise that: 4
(1) meets the nutrient management requirements established under Title 5
8, Subtitle 8 of the Agriculture Article; and 6
(2) is certified by the Department in accordance with regulations adopted 7
under this subtitle. 8
[(c)] (E) “Department” means the Department of Agriculture. 9
[(d)] (F) “Office” means the Office for the Certified Local Farm [Enterprise] AND 10
CHESAPEAKE INVASIVE SPECIES PROVIDER FISH Program. 11
[(e)] (G) “Program” means the Certified Local Farm [Enterprise] AND 12
CHESAPEAKE INVASIVE SPECIES PROVIDER FISH Program. 13
14–702. 14
(a) (1) There is an Office for the Certified Local Farm [Enterprise] AND 15
CHESAPEAKE INVASIVE SPECIES PROVIDER FISH Program in the Department. 16
(2) The purpose of the Office is to administer the Program and facilitate 17
the participation of certified local [farm enterprises] FARMS AND CERTIFIED 18
CHESAPEAKE INVASIV E SPECIES PROVIDERS in the Program. 19
(b) (1) There is a Certified Local Farm [Enterprise] AND CHESAPEAKE 20
INVASIVE SPECIES PROVIDER FISH Program in the Office. 21
(2) The purpose of the Program is to encourage each unit to try to achieve 22
an overall percentage goal of 20% of the unit’s total dollar value of procurement contracts 23
for food from certified local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE 24
INVASIVE SPECIES PRO VIDERS. 25
(c) The Department shall create two positions to provide staff for the Office. 26
14–703. 27
(a) (1) Each unit shall structure procurement procedures, consistent with the 28
purposes of this subtitle, to try to achieve an overall percentage goal of 20% of the unit’s 29
total dollar value of procurement contracts for food being made directly or indirectly to 30 SENATE BILL 386 5
certified local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE 1
SPECIES PROVIDERS . 2
(2) A unit may achieve the 20% goal through: 3
(i) competitive sealed bids and proposals; and 4
(ii) small procurement in accordance with § 13–109 of this article. 5
(3) For procurements conducted by competitive sealed bidding, a unit shall 6
award the contract to the responsible bidder that submits the responsive bid that: 7
(i) 1. has the lowest bid price; 8
2. has the lowest evaluated bid price; or 9
3. for procurements subject to § 11–202(3) of this article, is 10
the bid most favorable to the State; and 11
(ii) meets or makes a good faith effort to meet any applicable goal 12
established under this subtitle. 13
(4) For procurements conducted by competitive sealed proposals, a unit 14
shall award the contract to the responsible offeror: 15
(i) proposing the most advantageous offer; and 16
(ii) that meets or makes a good faith effort to meet any applicable 17
goal established under this subtitle. 18
(b) The Office, in consultation with the Secretary of Agriculture, shall establish 19
guidelines for each unit to consider when determining the appropriate local farm 20
[enterprise] AND CHESAPEAKE INVASIVE S PECIES PROVIDER participation percentage 21
goal for a procurement contract for food in accordance with subsection (c) of this section. 22
(c) Each unit shall: 23
(1) consider the practical severability of all procurement contracts for food 24
and, in accordance with § 11–201 of this article, may not bundle contracts; 25
(2) implement a program that will enable the unit to evaluate each 26
procurement contract for food to determine the appropriate local farm [enterprise] AND 27
CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals, if any, for the contract 28
based on: 29
6 SENATE BILL 386
(i) the availability of certified local [farm enterprises] FARMS AND 1
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS to respond competitively to 2
contract opportunities; and 3
(ii) the contract goal guidelines established under subsection (b) of 4
this section; 5
(3) monitor and collect data with respect to a unit’s compliance with 6
contract goals, including explanations for failing to meet contract goals; and 7
(4) institute corrective action when a unit does not make good faith efforts 8
to comply with contract goals. 9
(d) The Office shall, in consultation with the Secretary of Agriculture, establish 10
procedures governing how the participation of certified local [farm enterprises] FARMS 11
AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS is counted toward 12
contract goals under the Program. 13
(e) (1) (i) If a unit does not achieve the certified local farm [enterprise] 14
AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals on a 15
procurement contract for food, the unit shall demonstrate to the Office that the unit took 16
all necessary and reasonable steps to achieve the goals. 17
(ii) A waiver of any part of the certified local farm [enterprise] AND 18
CERTIFIED CHESAPEAKE IN VASIVE SPECIES PROVI DER goals for a procurement 19
contract for food shall be granted if a unit provides to the Office a reasonable demonstration 20
of good faith efforts to achieve the goals. 21
(2) The Office may waive any of the requirements of this subsection 22
relating to the establishment, use, and waiver of certified local farm [enterprise] AND 23
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER goals for a sole source, 24
expedited, or emergency procurement in which the public interest cannot reasonably 25
accommodate use of those requirements. 26
(3) Except for waivers granted in accordance with paragraph (2) of this 27
subsection, when a waiver determination is made, the Office shall issue the determination 28
in writing. 29
(4) On or before July 31 each year, the Office shall submit directly to the 30
Board an annual report of waivers requested and waivers granted under this subsection. 31
(5) The report required under paragraph (4) of this subsection shall contain 32
the following information on those procurement contracts for food where the Office 33
considered a unit’s request for waiver of all or a portion of the local farm [enterprise] AND 34
CHESAPEAKE INVASIVE S PECIES PROVIDER goals: 35
SENATE BILL 386 7
(i) the contract titles, numbers, and dates; 1
(ii) the number of waiver requests received; 2
(iii) the number of waiver requests granted; and 3
(iv) any other information specifically requested by the Board. 4
(f) The Board shall keep a record of information regarding any waivers requested 5
in accordance with this section and submit a copy of the record to the Senate Education, 6
Health, and Environmental Affairs Committee and the House Health and Government 7
Operations Committee on or before October 1 each year, in accordance with § 2–1257 of the 8
State Government Article. 9
14–704. 10
(a) In accordance with Title 10, Subtitle 1 of the State Government Article, the 11
Office shall adopt regulations to implement this subtitle. 12
(b) The regulations shall establish procedures to be followed by units, certified 13
local [farm enterprises] FARMS AND CERTIFI ED CHESAPEAKE INVASIVE S PECIES 14
PROVIDERS, and successful bidders or offerors to maximize notice to, and the opportunity 15
to participate in the food procurement process by, a broad range of local [farm enterprises] 16
FARMS AND CHESAPEAKE INVASIVE S PECIES PROVI DERS. 17
(c) The regulations shall include provisions: 18
(1) designating the Office to certify and decertify local [farm enterprises] 19
FARMS AND CHESAPEAKE INVASIVE S PECIES PROVIDERS for all units through a single 20
process, including provisions that promote and facilitate the submission of some or all of 21
the certification application through an electronic process; 22
(2) specifying that a unit may not allow a local farm [enterprise] OR 23
CHESAPEAKE INVASIVE S PECIES PROVIDER to participate as if it were a certified local 24
farm [enterprise] OR CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER if the 25
local [farm enterprise’s] FARM’S OR CHESAPEAKE INVASIVE S PECIES PROVIDER ’S 26
certification is pending; 27
(3) consistent with this subtitle, relating to any circumstances under which 28
the Office may waive obligations of a unit relating to certified local farm [enterprise] AND 29
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER participation goals; and 30
(4) that the Office considers necessary or appropriate to: 31
(i) encourage participation by local [farm enterprises] FARMS AND 32
CHESAPEAKE INVASIVE S PECIES PROVIDERS ; and 33 8 SENATE BILL 386
(ii) protect the integrity of the procurement process. 1
14–705. 2
(a) In the same manner and with the same fees as provided by law in civil cases, 3
in a matter regarding the decertification of a certified local farm [enterprise] OR 4
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER , the Office may: 5
(1) subpoena witnesses; 6
(2) administer oaths; and 7
(3) compel the production of records, books, papers, and other documents. 8
(b) If a person fails to comply with a subpoena issued under subsection (a) of this 9
section, or fails to produce documents or other evidence, on petition of the Office, a court of 10
competent jurisdiction may pass an order directing compliance with the subpoena or 11
compelling the production of documents or other evidence. 12
(c) The Office shall make available a fraud hotline for reporting violations of this 13
section. 14
14–706. 15
(a) Within 90 days after the end of the fiscal year, each unit shall report to the 16
Office. 17
(b) A report under this section for the preceding fiscal year shall: 18
(1) state the total number and value of procurement contracts for food 19
between the unit and certified local [farm enterprises] FARMS AND CERTIFIED 20
CHESAPEAKE INVASIVE S PECIES PROVIDERS ; 21
(2) indicate the percentage that those procurement contracts for food 22
represent of the total number and value of procurement contracts for food awarded by a 23
unit; 24
(3) state the total number and the names of certified local [farm 25
enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDERS 26
that participated in procurement contracts for food awarded by a unit; 27
(4) for each certified local farm [enterprise] OR CERTIFIED CHESAPEAKE 28
INVASIVE SPECIES PROVIDER included in the report under item (3) of this subsection, list 29
all procurement contracts for food awarded by a unit to the certified local farm [enterprise] 30 SENATE BILL 386 9
OR CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER , including a description of 1
the contract; and 2
(5) contain other such information as required by the Office, subject to 3
approval by the Board. 4
(c) A report under this section shall be: 5
(1) in a form prescribed by the Office; and 6
(2) approved by the Board. 7
(D) ON OR BEFORE DECEMBER 31, 2023, AND EACH DECEMBER 31 8
THEREAFTER , THE OFFICE SHALL SUBMIT A CONSOLIDATED REPORT TO THE 9
SENATE COMMITTEE ON EDUCATION, ENERGY, AND THE ENVIRONMENT AND THE 10
HOUSE HEALTH AND GOVERNMENT OPERATIONS COMMITTEE, IN ACCORDANCE 11
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON PROGRAM 12
IMPLEMENTATION AND P ARTICIPATION. 13
14–707. 14
(a) (1) The Department shall develop and maintain a directory of all certified 15
local [farm enterprises] FARMS AND CERTIFIED CHESAPEAKE INVASIVE S PECIES 16
PROVIDERS. 17
(2) The directory shall be accessible to the public on the Department’s 18
website. 19
(b) The Department shall include the following information for each certified local 20
farm [enterprise] AND CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER 21
included in the directory: 22
(1) all contract information available to the Department for the certified 23
local farm [enterprise] OR CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER ; 24
(2) the certification number of the certified local farm [enterprise] OR 25
CERTIFIED CHESAPEAKE INVASIVE S PECIES PROVIDER ; and 26
(3) any other information the Department considers n ecessary or 27
appropriate to encourage participation in the procurement process by local [farm 28
enterprises] FARMS AND CHESAPEAKE INVASIVE S PECIES PROVIDERS . 29
(c) The Department shall: 30
(1) update the directory at least once a year; and 31
10 SENATE BILL 386
(2) identify as recently certified in the directory each local farm 1
[enterprise] AND CHESAPEAKE INVASIVE S PECIES PROVIDER that has obtained 2
certification during the calendar year. 3
14–708. 4
(a) There is a Certified Local Farm [Enterprise] AND CHESAPEAKE INVASIVE 5
SPECIES PROVIDER FISH Food Aggregation Grant Fund. 6
(b) The purpose of the Fund is to support the creation of food aggregation, storage, 7
processing, and distribution sites across the State through grants and near–equity 8
investments. 9
(c) The Maryland Agricultural and Resource–Based Industry Development 10
Corporation shall administer the Fund. 11
(d) The Fund consists of: 12
(1) money appropriated in the State budget to the Fund; 13
(2) principal that is repaid from near–equity investments; and 14
(3) any other money from any other source accepted for the benefit of the 15
Fund. 16
(e) The Fund may be used only for establishing and operating food aggregation, 17
storage, processing, and distribution sites across the State through grants and near–equity 18
investments. 19
Article – Tax – Property 20
13–209. 21
(g) (3) (i) 2. For fiscal year 2025 only, the Governor shall include in the 22
annual budget bill a General Fund appropriation in the amount of $2,735,000 to the 23
Maryland Agricultural and Resource –Based Industry Development Corporation 24
established under Title 10, Subtitle 5 of the Economic Development Article to be used as 25
follows: 26
A. $2,300,000 to support the Corporation’s rural business 27
loan programs and small matching grant programs; and 28
B. $435,000 for grants and near–equity investments to: 29
I. support the creation or expansion of agricultural product 30
aggregation and storage sites; and 31
SENATE BILL 386 11
II. facilitate participation in the Certified Local Farm 1
[Enterprise] AND CHESAPEAKE INVASIVE SPECIES PROVIDER FISH Program. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October July 1, 2023. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.