Trial Engrossment of Amendment A05288 to House Bill 2420 P.N. 3382, Regular Session 2023-2024

A05288

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2420

Session of

2024

INTRODUCED BY BURGOS, FRITZ, PASHINSKI, HILL-EVANS, JAMES,

HANBIDGE, HOHENSTEIN, SCHLOSSBERG, KINSEY, OTTEN, FREEMAN,

HOWARD, SANCHEZ, ZIMMERMAN, D. WILLIAMS, CURRY, BOYD, GREEN,

WAXMAN, TAKAC, SIEGEL, PARKER, RABB, COOK, FRIEL, SAPPEY,

KINKEAD, SHUSTERMAN, GIRAL, GALLAGHER, DELLOSO, BRENNAN,

MULLINS, BRIGGS, MAYES AND ABNEY, JUNE 13, 2024

AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,

HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 25, 2024

AN ACT

Establishing the Keystone Fresh Program; providing for the Fresh

Schools Grant Program, for the Keystone Producer Grant

Program, for the Keystone Assistance Grant Program and for

the administration of the Keystone Fresh Program by the

Department of Education and the Department of Agriculture;

and establishing the Keystone Fresh Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Keystone

Fresh Act.

Section 2. Findings and declarations.

The General Assembly finds and declares as follows:

(1) Schools across Pennsylvania serve more than 157

million lunches per year, providing critical nutrients to

children across this Commonwealth. Due to the large volume of

food purchased to support nutrition programs, schools have

the potential to be one of the largest markets for

agricultural producers across this Commonwealth. Farm to

School (FTS) programs encourage schools to purchase, promote

and serve local foods. Nationally, FTS programs have shown to

be an innovative strategy to improve child nutrition, with

research indicating students eat 37% more vegetables and 11%

more fruit. Pennsylvania has a long history of interest in

FTS programs, with 268 districts (44%) currently

participating in some level of farm-to-school activity.

According to the United States Department of Agriculture's

2019 Farm to School Census, more than 57% of Pennsylvania's

schools reported purchasing some Pennsylvania products, yet

those local food sales, excluding liquid milk, were only 8%

of their total lunch program budget.

(2) The purpose of this program is to meet Statewide

interest in increasing the amount of local food served in

school meals by helping to change school food procurement

practices, provide technical assistance and training for how

to integrate local foods in school meals and help

Pennsylvania producers access the school food market.

(3) Enacting the Keystone Fresh Act will provide State-

level investment to expand farm-to-school efforts and provide

economic, public health and community benefits for

Pennsylvanians.

Section 3. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department." The Department of Education of the

Commonwealth.

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"Eligible costs." The actual, documented costs of local

food, which are reimbursable with program grant funds, as

provided under sections 5, 6, 7 and 8.

"Eligible school district." A kindergarten through grade 12

school district or school in this Commonwealth with at least 100

students, operating the National School Lunch Program.

"Fund." The Keystone Fresh Fund established under section 9.

"Ineligible costs." Any costs that do not constitute

eligible costs for the purposes of the program, including, but

not limited to, any costs incurred by a school or school

district in the sourcing or purchasing of fluid dairy milk or in

association with the district's ordinary, unexpanded sourcing

and procurement of local food products at or below the baseline

levels identified in the district's grant application submitted

under section 5.

"Local food." Any fruits, vegetables, grains, meats, fish,

beans, yogurt and cheese that are grown, harvested or raised and

minimally processed products in this Commonwealth.

"Minimally processed products." Food products processed in a

manner that does not fundamentally alter the product and where

the product retains its inherent character and the primary item

can still be identified. The term includes, but is not limited

to, freezing, pasteurizing milk for use in yogurt or cheese,

butchering livestock and poultry, cleaning fish, dicing and

slicing produce, forming ground food products into patties,

grinding meats, grinding grains, drying grains or beans or

dehydrating food products and washing and cutting produce. Fully

cooked or canned items are not considered minimally processed

products.

"National School Lunch Program." The federally funded school

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lunch meal program operating in this Commonwealth's public and

nonprofit private schools.

"New and beginning farmer or rancher." A farmer or rancher

who has operated a farm or ranch for 10 years or less either as

a sole operator or with others who have operated a farm or ranch

for 10 years or less.

"Nonlocal food." Food that is not local food.

"Program." The Keystone Fresh Program established under

section 4.

"School food authority." The governing body responsible for

the administration of one or more schools that has the legal

authority to operate the National School Lunch Program.

"Socially disadvantaged group." A population group whose

members have been subjected to prejudice or discrimination on

the basis of race, color, national origin, age, disability or,

where applicable, sex, marital status, familial status, parental

status, religion, sexual orientation, genetic information,

political beliefs or participation in any public assistance

program, because of their membership in the group or the shared

characteristics of the group and without regard to their

individual qualities.

"Sustainable agriculture techniques." Agriculture practices

that include no-till and/or use of a cover crop system,

certified organic, regenerative organic practices, pastured

poultry and/or grass-fed meat.

"Value-added processed products." Food products altered from

their unprocessed or minimally processed state through

preservation techniques, including cooking, baking or canning.

"Veteran farmer or rancher."

(1) A producer who:

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(i) served in the United States Army, Navy, Marine

Corps, Air Force or Coast Guard, including the reserve

component thereof;

(ii) was released from service under conditions

other than dishonorable; and

(iii) (A) has not operated a farm or ranch;

(B) has operated a farm or ranch for not more

than 10 years; or

during the most recent 10-year period.

(1) A PRODUCER WHO SERVED IN THE UNITED STATES ARMED

FORCES, INCLUDING A RESERVE COMPONENT OR THE NATIONAL GUARD,

AND WHO WAS DISCHARGED OR RELEASED FROM SERVICE UNDER

CONDITIONS OTHER THAN DISHONORABLE.

(2) A legal entity or joint operation can be a veteran

farmer or rancher only if all individual members

independently qualify.

Section 4. Establishment.

The Keystone Fresh Program is established within the

department in consultation with the Department of Agriculture.

Section 5. Fresh Schools Grant Program.

(a) Authorization.--The department, in consultation with the

Department of Agriculture, shall establish The THE Fresh Schools

Grant Program to award grants for the purpose of reimbursing

school food authorities for the purchase of local food to be

used in school meals.

(b) Eligibility.--An eligible school district may submit an

application to the department for grant funding.

an application and evaluate applicants based on the readiness

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level of a school food authority to purchase and serve local

food in school meals by considering:

(1) The applicant's local foods purchasing plan in the

grant application.

(2) The applicant's ability to demonstrate a commitment

to local purchasing or food and agricultural education.

(3) The applicant's access to a kitchen with the ability

to store, prepare and serve local food products.

(4) That preference shall be given to applicants

sourcing from veteran farmers or ranchers, farmers or

ranchers who are from socially disadvantaged groups, new and

beginning farmers or ranchers or farmers or ranchers that use

sustainable agriculture techniques.

(d) Grant amounts.--The department shall award grants based

on student enrollment, as identified by the applicant in the

following amounts on an annual basis:

(1) Applicants with a student enrollment from 100 to

1,000 are eligible for an award from $16,500 to $45,000.

(2) Applicants with a student enrollment from 1,001 to

5,000 are eligible for an award from $35,000 to $120,000.

(3) Applicants with a student enrollment from 5,001 to

10,000 are eligible for an award from $85,000 to $200,000.

(4) Applicants with a student enrollment from 10,001 to

32,000 are eligible for an award from $100,000 to $275,000.

(5) Applicants with a student enrollment above 32,000

are eligible for an award from $200,000 to $650,000.

(e) Eligible use of grants.--A school district may use grant

awards for the following purposes:

(1) To purchase whole and minimally processed fruits,

vegetables, herbs, meat, seafood, yogurt, cheese, legumes and

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grains that are 100% grown, raised or caught and processed in

this Commonwealth.

(2) To purchase products that are 100% Pennsylvania

grown but processed in a neighboring state.

(3) No more than 20% of the total amounts awarded to the

school district may be used to support equipment upgrades,

materials, training and staff time directly related to

supporting the increased amount of local Pennsylvania

products served in school meals.

(4) Grant awards may only be used for school lunch,

breakfast or Seamless Summer Option program meals in school

settings.

(f) Ineligible use of grant awards.--School districts shall

not use grant awards to purchase fluid dairy milk for the

purposes of this program or any other ineligible costs.

(g) Reimbursement of eligible costs.--The department shall

reimburse school food authorities for eligible costs on an

annual basis with the following conditions:

(1) School food authorities shall submit invoices on a

timeline set by the department in order to be reimbursed for

their eligible costs under this section.

(2) The department may allow the school food authority

to apply for an extension to spend down unused money in the

following year.

(3) The department shall only reimburse school food

authorities for costs incurred equal to the difference in

cost between a local food purchased under subsection (e)(1)

or (2) and a similar lower-cost nonlocal food.

(h) Reporting on use of grant awards.--The department shall

monitor the Fresh Schools Grant Program to ensure program

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integrity. Grantees shall be required to include the following

information to request reimbursement:

(1) Products purchased.

(2) The name, location and total amount spent per farm,

either through receipts or uploading procurement details.

(3) Proof of the existence and cost difference of a

nonlocal food available for purchase to the school food

authority within a month of purchase of any local food

available for purchase under subsection (e)(1) or (2) that is

lower in cost than the local food purchased under subsection

(e)(1) or (2).

Section 6. Keystone Producer Grant Program and Keystone

Assistance Grant Program.

(a) Authorization.--The Department of Agriculture, in

consultation with the department, shall establish the following

grant programs:

(1) The Keystone Producer Grant Program to award grants

for the purposes of providing funding to participating farms,

food hubs and local food aggregators for equipment and

marketing needed to participate in the program. Eligible

entities shall include individual farms, food hubs and local

food aggregators participating in the program.

(2) The Keystone Assistance Grant Program to award

technical assistance grants to assist school food authorities

with incorporating additional unprocessed products into their

lunch programs, including scratch cooking. Eligible entities

shall include nonprofits and institutions of higher education

located in this Commonwealth participating in the program.

(b) Eligible use of money.--The Department of Agriculture

shall allow grant awards outlined in this section for the

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following purposes:

(1) Keystone Producer Grant Program awards may be used

for equipment or marketing needed by producers to meet the

school food institutional standards.

(2) Keystone Assistance Grant Program awards may be used

by awardees to assist school food authorities to incorporate

additional unprocessed products into their lunch programs,

including scratch cooking.

consultation with the department, shall develop an application

and process for awarding grants outlined in this section that

includes the following requirements and considerations:

(1) Preference shall be given to applicants sourcing

from or working with veteran farmers or ranchers, farmers or

ranchers who are from socially disadvantaged groups, new and

beginning farmers or ranchers or farmers or ranchers that use

sustainable agriculture techniques.

(2) Grantees shall be eligible to apply for one of the

grants outlined in this section per grant cycle.

(d) Grant amounts.--Subject to the availability of money

under section 9, the Department of Agriculture shall determine

the amount of each grant in this section with the maximum award

amount not to exceed $150,000 per grantee.

Section 7. Administration.

(a) Department administration.--For the purposes of carrying

out this act and subject to the availability of money under

section 9, the department shall receive necessary money from the

fund to cover administrative costs incurred in establishing the

program and commencing initial program operations under this

act, including, but not limited to, the costs associated with:

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(1) Hiring and employing of at least one full-time staff

person and other personnel necessary for the administration

and management of the programs established in this act and

providing relevant program-related information and assistance

to eligible school districts.

(2) Developing requests for proposals, reviewing

applications and administering disbursements to grant

recipients.

(3) Acquiring, maintaining and repairing relevant

technology, equipment and computer programs needed to

establish, implement and successfully operate this act and

facilitate the annual pro rata allocation, awarding and

periodic disbursement of program grant funding available.

(4) Monitoring and developing reports related to the

Fresh Schools Grant Program, including, but not limited to,

program implementation and operations, program funding and

program-related activities and outcomes.

(b) Department of Agriculture administration.--For the

purposes of carrying out this act and subject to the

availability of money under section 9, the Department of

Agriculture shall receive necessary money from the fund to cover

administrative costs incurred in establishing the program and

commencing initial program operations under this act, including,

but not limited to, the costs associated with:

(1) Hiring and employing at least one full-time staff

person and other personnel, as may be necessary to administer

and manage the grants in section 6 and provide relevant

program-related information to producers, farmers and

entities providing technical assistance.

(2) Developing requests for proposals, reviewing

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applications and administering disbursements to grant

recipients.

(3) Conducting outreach and providing appropriate

training to farmers who are engaged or who plan to engage in

the sale or donation of local food products to schools and

school districts for program purposes.

(4) Developing a resource-rich farm-to-school Internet

website that includes, at a minimum, the following

information:

(i) A list of farms that have served an eligible

school district.

(ii) Materials listed below, divided into sections:

(A) School meal operators. The following

information shall be included:

(I) Buying local foods.

(II) Preparing local foods.

(III) Promoting local school meals.

(B) Agricultural producers. The following

information shall be included:

(I) Understanding school market channels.

(II) Best practices for selling to eligible

school districts.

(III) Promoting local foods to eligible

school districts.

information shall be included:

(I) Insights into school meal programs.

(II) Engaging with school meal programs.

(D) Sample menus incorporating local products.

(E) Recipes using local products.

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(F) Marketing materials for local food in

cafeterias.

(5) Monitoring and developing reports related to the

grants established in section 6, including, but not limited

to, program implementation and operations, program funding

and program-related activities and outcomes.

Section 8. External evaluations.

(a) External review.--The department, in consultation with

the Department of Agriculture, shall biennially contract with an

eligible entity to conduct an external review to evaluate the

effectiveness and efficacy of the components of this act.

(b) Reviewers.--Eligible entities to conduct external

reviews shall include nonprofit organizations and academic

institutions as determined by the department.

minimum:

(1) Outcomes of the overall grant program, including the

dollar amount spent on local products, the purchasing impact

on various agricultural sectors as determined by the

Department of Agriculture and changes in values-based

purchasing behavior.

(2) Guidance to the department and the Department of

Agriculture on areas of success and areas in need of

improvement to increase local food procurement.

(3) A report to be transmitted to the members of the

General Assembly and made available to the public on a

publicly accessible Internet website.

Section 9. Establishment of Keystone Fresh Fund.

(a) Fund established.--The Keystone Fresh Fund is

established, which shall be an interest-bearing restricted

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revenue account, in which shall be deposited money as it is

appropriated, given, granted or donated to the Fresh Schools

Grant Program, the Keystone Producer Grant Program and the

Keystone Assistance Grant Program, by the Federal Government,

the Commonwealth or any other governmental or private agency or

person.

(b) Use of fund.--Money deposited into the fund and interest

earned on the money deposited into the fund shall be used solely

for the purpose of carrying out the provisions of this act, with

the following requirements:

(1) No less than 60% of money deposited into the fund

shall be appropriated for the grants established in section

(2) No less than 25% of money deposited into the fund

shall be appropriated to cover the costs incurred by the

department and the Department of Agriculture in carrying out

the provisions of sections 6 and 7.

(3) No less than $250,000 of money deposited into the

fund shall be reserved every two years for the purpose of

carrying out the biennial external evaluations provided for

in section 8.

Section 10. Effective date.

This act shall take effect as follows:

(1) Sections 5, 6 and 8 shall take effect in 245 days.

(2) This section shall take effect immediately.

(3) The remainder of this act shall take effect in 180

days.

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